Targeting Pharmaceutical Customers through Market Segmentation

Industries Profiled:
Pharmaceutical; Biotech; Health Care


Companies Profiled:
A Leading Pharmaceutical Company; Sanofi-aventis; AstraZeneca; GlaxoSmithKline; Novartis; Pfizer; Schering-Plough

Study Snapshot

Best Practices, LLC undertook this benchmarking project focusing on market segmentation in order to identify the world-class marketing capabilities that will drive demand and market growth. With this benchmarking research, managers and executives can review, evaluate and adapt the most effective and innovative segmentation strategies and practices that other top pharmaceutical manufacturers have successfully implemented. Readers will also develop a deeper understanding of leading drug companies’ organizational and team structures, resource allocation, research tools and methodologies that support their segmentation strategy development and implementation.

The insights and best practices showcased in this study are distilled from in-depth interviews with top executives who have extensive experience in market segmentation. Senior marketing management at benchmark partner companies have begun to see market segmentation as a new tool to drive market growth. In short, segmentation strategies are growth strategies! Benchmark partners describe the benefits of their market segmentation initiatives as a cascade of successes that build upon one another. Market segmentation enables pharmaceutical companies to:

• effectively identify unmet medical needs in the marketplace,
• create new pathways to customers,
• develop well-differentiated, commercially-focused product/service offerings,
• tailor marketing communications to different audiences,
• focus sales targeting efforts,
• coordinate product/service delivery channels,
• maximize lifetime value of product innovation,
• improve customer service and loyalty, and
• optimize resource allocation.

When these five areas are coordinated as an integrated system, they create a useful model for effective ongoing market segmentation management. 

Best Practices in Pharmaceutical Market segmentation
· Strategy & Structure 
· Segmentation Research Method 
· Resource Allocation 
· Implementation Support 
· Continuous Improvement

Appendix A
· Market Segmentation Benchmark Presentation Slides 

Appendix B
· Multi-Industry Review of Market Segmentation

List of Charts & Exhibits

Integrated System for Market Segmentation Management
Best Practices in Market Segmentation
Penetrating Non-Traditional Segments
Physician Types
Budget Snapshots
Headcount Snapshots
Implementation Support
Table of Contents
Project Goals & Background
The Benchmark Class
Top 5 Lessons Learned
Strategy and Structure
Penetrating Non-Traditional Segments
Penetrating Traditional Segments
Penetrating New Growth Niches
Segmentation Throughout Product Lifecycle
Cross-Functional Team Structure
Team Snapshots
Implementation Support
Resource Allocation
Headcount Snapshots
Budget Snapshots
Segmentation Research Methods
Multi-Dimensional Segmentation
Segment Mapping By Response Pattern
Key Success Factors
Sales Targeting Prioritization Matrix