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PM-THREAD 1002-1
INITIAL MESSAGE
I was wondering if someone could advise me.
WHAT COULD BE AN ISSUE WHICH DEALS WITH BOTH, OPERATIONS MANAGEMENT AND
Marketing Management ACTIVITIES?
There are a couple of other topics that may help: Development of a manufacturing site based upon the development results.
Sources of information: IBF, PHARMA, and PMRG (see Pharmaceutical Marketing Resources)
You can try to analyze the value chain or outsourcing in pharmaceutical
business.
One suggestion is applying operations management to sales force coverage, an
ongoing challenge for pharma because of size and cost of sales forces. A
leader is that area is ZS Consultants based in Evanston, IL. Perhaps you
should contact them and see if you could do a paper on the topic working
with them - they have a lot of publications and are arguably the leader in
modeling marketing and sales functions of pharma companies. Might be an
interesting opportunity for an internship too. Great credential builder,
not to far from Charleston, great experience to work with them. A
suggestion.
I think that one important issue to work on is the one regarding to
forecasting in marketing and how it affects Operations Management. Often you
can find as a marketing manager that what you are forecasting for both
short and long term is kind of "unreal" for the people in the plant, due to
several causes, ie, the pharmaceutical presentations you are expecting to
launch, the real plant capacity, importing of raw materials or finished
products that need to be re-aconditioned in the local facilities... you have
tons of subjects to write papers on the close relationship that Marketing
and Operations should have and that most of the times, its blurred because
marketing just does marketing and the plant... well, just produces.
I hope my comment is useful for you. If I can be of any further assistance,
feel free to contact me.
For example, applying a framework such as Porter's generic strategies may be
helpful. Firms that have traditionally been broad differentiators are now
finding it necessary to shift their orientation toward "low cost" or cost
leadership as therapeutic innovation does not offer the pricing power that
it once did. Consequently, the environment shifts profit drivers (increased
margins) toward cost control, outsourcing, efficiency, salary containment,
squeezing price reductions from suppliers, best practice implementation,
time to market, etc.
Some of the interesting things to observe right now are the problems that
some of the top pharma companies are having with getting bad audits from the
FDA in their manufacturing processes. This represents a real long term
problem with a number of firms and is representative of issues that firms
face when available cash flows are not as plentiful as they once were.
An ATKearney survey/report (a few years back) concluded that the most
inefficiently operated portion of big pharma was the marketing/sales area.
It was suggested earlier that this might be a good place to look for some
research. Another area to examine might be the efforts that big pharma
undertakes in organizing its operations sp that medical liason officers,
phone center employees, sales reps, internet promotions, pharmacoeconomic
research and direct to consumer advertising is being integrated to present a
coordinated battle plan to pull pharmaceuticals through the pipeline. The
essence of much of this, in my view, is to generate better pricing
capability, and revenue generation -- Not just penetration. You would
probably find this pretty embryonic and confused in most firms and might
prove to be a good place for a young person to gain some understanding,
begin a career, particularly in consulting.
Most seriously, all of these wise folks have given you some very good ideas,
but I suggest you find something out of these that gets you excited and
where you think you might enjoy becoming a world class expert on the topci
and spending a career in that area. Even if you don't the project should
give you something good to talk about when it comes time to go job shopping.
Once you pick a topic you may wish to ask again on the list for suggestions
of a dependent variable, or available sources of firm, division, or plant
level data.
a) Pharmaceutical Sampling management - pharmaceutical industry in US spends more than half of its marketing budget on free physician sampling (approx. $15 billion annually) - operational issue could be EOQ in sampling, sampling product mix requirements (as some companies send samples as per the request of the physicians), cost of sampling inventory, sampling production schedules ( as samples are manufactured in the same production lines in the factory as regular medicine for sales) and also sampling allocation across the sales territories in US. The issues here create at times what we call bull-whip effect.
b) Pharmaceutical Sales call management: As in service operations - a la ...sales force allocation, sales force time allocation for A,B, C category of customers, sales call scheduling, productivity analysis per call etc.
c) Pharmacetical new product launch planning: scheduling of pre-launch, post launch marketing, production, sales activities.
Also you could look at the issues like pharmaceutical marketing activities planning for the year...generally the companies chalk out their maketing activity plans for teh entire year...so you could use the knowledge of operations in planning the activities like doctor promotions, scientific seminars, conferences,group meetings etc etc...
There are plethora of things that can be looked at. But I guess u would find a hell lot of info. at some of the consulting firms' sites ...i guess accenture does a lot of operations mgmt jobs for pharmaceutical companies...Bye Bye
Th topic of Drug Delivery improvement linked with use of generic
formulations may be of interest, even if decent work has already been
carried out on the subject, some niches may be untapped yet.
I am trying to gather material on the topics recommended so I can
discuss them with my instructor soon. However I have some questions
regarding some of your suggestions.
a.. Mr. Mark McCarthy : You mentioned about "Deploying an online
marketing initiative" such as multiple online Detailing programs.
Operations (technology, vendors, hosting, deployment) and Marketing
(target audience, content, ROI measurement)." Could you explain it in a
little more detail, what do you exactly mean by "marketing initiative"
in this scenario (given that my main focus in this paper is Operations
Management).
b.. Mr. Mark Gleason: with reference to "applying operations
management to sales force coverage"; I am not quite sure if I understand
what you mean. Moreover,Would it be possible for you to provide me with
some contact information of ZS Consultants you recommended in your
message.
c.. Mr. Dave Cobb: Speaking about your recommendation, "Development of
a manufacturing site based upon the development results", what would be
the variables in deciding the site location. Are you referring to
potential market, raw material, human resources etc?
Once again thanks a lot for your kindest advises.
Then you have the global forecast that requires similar analysis on a country
by country basis.
Full integration of marketing process and operations to manage the supply
chain and ensure sufficient supply
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