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.
August 16, 2018 in Marketing
Ten percent more US citizens died of drug overdoses last year than did the year before. Drug manufacturers in the opioid and Fentanyl businesses are making money. I’m planning on swimming in the Maggie Fischer Cross Bay Swim next summer. It’s 5.25 miles and starts at slack tide — just before incoming tide. Were a […]
August 9, 2018 in Marketing
Marketing is about crowd building. Have you ever walked in a city, seen a long line of people and wondered what they are waiting for? Or seen 20 people on the street staring into a store window at a TV? Crowds have a gravitational pull. When searching YouTube for an unfamiliar music artist, do you […]
August 8, 2018 in Marketing
The New York Times reported today that the top social media platforms are either flat or declining in users. For the first time in its young life Snap is down daily active users — 3 million this quarter compared to same qtr. last year. This news causes bosses to call marketing brainstorm sessions about adding […]
August 7, 2018 in Marketing
I’m not much of a cook but I’m certainly a student. What’s The Idea? uses a number of cooking metaphors in its daily operation. Many of the tenets of good cooking are also valuable in brand strategy. One such tenet is “Don’t use too many ingredients.” The more ingredients used, the more likely the main […]
August 3, 2018 in Marketing
Starbucks idea to deliver coffee (in China) is a bad one. I’m no economist but adding overhead to the business by way of delivery personnel, equipment, insurance (ish), and degradation of product (e.g., cold coffee) is a lose-lose. But more importantly, if you make the coffee and tea more available during different dayparts in an […]
August 2, 2018 in Marketing
This morning’s news included a piece on Conde Nast shuttering 3 big magazine properties. The company lost in excess of $120M last year keeping print properties churning. Magazines have been under web attack for over a decade. Magazines aren’t in the readership business, they’re in the entertainment and enlightenment business. As audio and video production […]
August 1, 2018 in Marketing
I was doing a little web research on a company yesterday and started looking for signs of a brand strategy on the “About” page. Atop the About page sat this quote. “Customers are the most important people in any business.” Many would find it hard to disagree with the statement. When writing market plans I […]