Market research and business intelligence are linked disciplines as the one feeds on the raw data extracted from the other.

As a science market research is the process of systematic gathering, recording and analysing data about customers, competitors and the market. Properly designed market research is an essential part of a pharmaceutical Marketing Manager’s toolkit because it can provide vital information for developing, planning and implementing the marketing strategy.

Pharmaceutical marketing departments can also measure market potential, for example, how many prescriptions, patients and prescribing doctors are there for the product? Or what‘s the total market size, the growth potential, and the market share of the competitors?

Market research helps determine market characteristics such as:

§         Who are the target customers for the drug – GPs, hospital doctors, pharmacists, Primary Care Trusts (PCTs), patients?

§          What marketing strategies are required to find these customers?

§          How will these customers respond to a new product, or a new advertising campaign for an existing product?

Research techniques can also be used to analyse market share, sales forecasting, likely competitor response and pricing strategy.

Research Data

Market research consists of two types of information:

§         Primary (or customised) data – original information gathered for a specific purpose

§         Secondary (or syndicated) data – information that already exists and has been collected for another purpose

Syndicated sources of basic information on market size, current competitor sales, prescribing trends and regional variations are widely available for pharmaceutical marketers, but the demand for specific customised market research has spawned many smaller more ‘creative’ market research Agencies.

Research Techniques

Market research relies on two very different techniques:

§         Qualitative Research – the process of exploring and uncovering why people hold particular views and how they make judgments. It does not provide hard numerical data. This research is typically carried out by face-to-face or telephone interviews using ‘open questions’; such as “why do you think that somebody would think that?” or “what do you think motivates them to do that?” Focus groups are another way of carrying out qualitative research where groups of people are brought together so that clients can observe the discussions and fine-tune their thinking about their marketing strategy

§         Quantitative Research – the gathering of statistically reliable data to highlight what people think. It is usually carried out in the form of a paper questionnaire, with a mix of closed and open-ended questions such as “how many behave this way?”; “how much will they pay for this?”; “how great is the brand’s potential”? Although quantitative research provides hard data, it lacks the flexibility to discuss the reasons behind people’s opinions

Business Intelligence

Business intelligence is the sophisticated, complex and slightly ‘dark’ relation to market research. It is a complex business, rooted in software technology, which utilises structured and unstructured customised data to achieve competitive advantage.

Business intelligence is, however, only as good as the data with which it is provided. This means having to commission customised data collection – including texts, emails, blogs, newspaper articles and published content such as financial or pharmaceutical analyst’s comments – to be included in the data mix and then finding the best way to make it work within the marketing strategy.

In the healthcare communications industry business intelligence can be used across various marketing disciplines to:

§         Increase market knowledge by measuring market size and share

§         Segment customers into types

§         Understand customers by defining behaviors and attitudes including: gauging price sensitivity; forecasting future performance; and understanding ‘emotional’ influences on prescribing

§         Respond to market activity by tracking key performance indicators (KPIs) and keeping tabs on competitor initiatives

In summary, business intelligence is a major change in thinking and technology and will drive major advances in the way the healthcare communications business operates in the future.

Getting Started

It helps to have an inquisitive and analytical mind and a numerate disposition if you’re going into market research. Many market researchers have excellent IT skills which are important at entry-level because to learn the business from the roots up you’ll

need to be comfortable with data handling.

The types of jobs in market research are varied and include:

§         Data Entry – inputting information from questionnaires. This is a great way to gain a basic understanding of the industry. A good eye for detail and experience with packages like Excel is normally expected

§         Data Analyst – converting raw data into an electronic format. A technical mind with a good IT qualification and experience of data programs including SPSS and SAS is needed

§         Research Executive/Market Analyst – initially to ensure that the data received are correct, before producing reports for clients to provide them with insights into the data, and then making recommendations based on these findings. A scientific background, although not a prerequisite, is useful for someone interpreting data into workable information

§         Sales/Account Management – it’s all well and good having great information, but without clients the information is worthless. A medical sales background is useful, as is previous experience as a Research Executive, for an Account Management role

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