I read today about a hepatitis C drug that costs $1,000 per pill. It’s called Sovaldi. Don’t get me started on the paucity of pharma names – it seems they are all used up. Marketing consists of 4Ps: Product, Price, Place and Promotion — so I have a question for the marketing director of Sovaldi. Is this a niche product for the very rich? The rich who, by the way, don’t index high for Hep C?
There are three parties involved in this little health care rubric: the drug company, the patient and the insurance company. The drug company (Gilead) is giddy with its 1st quarter earnings. Record earnings. The patients are happy, I suppose, with a drug that presumably is better than what currently exists. And the insurance companies? They must be clearly wondering how this drug got through the FDA.
The pharma marketing director who set the price of Sovaldi must have used a formula to cover R&D, physician detailing, marketing etc., but s/he knew that insurance companies would foot the bill. Very few people can pay $1,000 for a pill.
So who is to blame for approving this non-viable, specialty product? Not to seem cold but someone along the chain must have known this drug price would be a little out of hand. They must also have known insurance companies would pay for it. In what marketing scenario does one price a product so high that nobody but a very few can afford it? Entire families are going without healthcare in the ACA Age because of the price of one of these pills. Something is broken. And someone from the insurance industry needs to step up and fix it. Peace.
September 20, 2017 in Marketing
The second most important and difficult task in brand building is adherence. The most important task is actually developing a brand strategy. I’ve written about adherence before, a borrow from the medical community, because it is so, so important. The initial adherence task for the marketing and brand team is to get senior management on […]
September 19, 2017 in Marketing
A couple of years ago I wrote a brand strategy for an accountable care organization. An ACO is a physician group, the rules for which are shaped by the Affordable Care Act. It was an exciting project and one I felt was quite political in nature. The brand strategy captured and celebrated the best of […]
September 18, 2017 in Marketing
One of the things I dislike about advertising can be summed up by the words of an ex-client many years ago. He killed an ad made by some reasonable craftsman at FCB/Leber Katz saying “It just doesn’t do it for me.” Client’s prerogative, but not helpful. I coined the term “like-ometer” after that meeting. Judgmental […]
September 15, 2017 in Marketing
I was reading about the NY Public Library yesterday and its Beaux Arts design, which led me to look up Beaux Arts (pronounced Boh-Zahr) in Wikipedia. Love Wikipedia. The Parisian Beaux Arts school was big in the late 1800s lasting until the first quarter of the 1900s in the U.S. As architecture goes this stuff […]
September 12, 2017 in Marketing
A number of years ago I subscribed to an advertising magazine called Lurzer’s International Archive. It showcased the best ads in the world every month. I often found creative people thumbing through Archive looking at pictures and ideas inspiration. M advertising work in those days was in technology. Often with Bell Labs engineers. When they […]
September 11, 2017 in Marketing
Every business needs a promotion, something to jump start revenue when things are slow. My go-to promotion for the last few years has been a “Free Day of Planning.” I offer up my services for one day, free of charge. Try before you buy. I had an opportunity to do some strategy work on Heineken […]
September 8, 2017 in Marketing
There’s a chain of fast food chicken restaurants in NC called Zaxby’s. I’ve yet to eat there but am sure it’s competitive with others in the space. I’ll have to do some research. Yesterday I had a couple of meetings and presentations in which I discussed the “Fruit Cocktail Effect.” When a brand tries to […]