Main Subject - Business

One thing that I’ve learned after 35 years in advertising is that no business wants to pay more than they have to for promotional expenses. It’s understandable considering all the various marketing options and the as

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

sociated costs. A business has so many fixed overhead expenses from insurance to rent to employees that advertising is often left to the very end. The sad truth is that without proper promotion, the business can’t su

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

vive. I sold Yellow Page ads for 25 years and was invariably told that the ads were just too expensive. I used to ask, compared to what? It was then that I realized that I needed to educate my clients.

What I ended

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

up doing was justifying the investment through the use of the ROI or the “return on investment” technique. In basic layman’s terms, it works like this. Suppose you have purchased a newspaper ad for $100. Say you’re a

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

florist and profit $10 on average per order. So you now need 10 orders to offset the cost of the ad. That’s the simplified version and it can be applied to almost any other media: TV, radio, Yellow Pages, direct mail

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

and so forth. It requires that you know the exact costs and your own profits. If the marketing program takes place over several days, weeks or months, the plan is the same.

First, decide which media is most appropr

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

iate for your kind of product or service. Then figure your average profit. For instance, if you’re a plumber and the average job is $150, what is the profit after you have paid for the parts, truck and employee? Let’

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

assume it’s $50 left. So, if you are looking at a $500 per month Yellow Page ad, the first 10 jobs per month would break you even. But it’s a bit more complex than that. If that YP book reaches 100,000 people for $5

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

00, but another directory covers 500,000 people and the ad is $1500, which is the better deal? Sure, now you have to get 30 jobs to offset the charge, but you are seen by 400,000 more potential customers. Therefore,

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

he ROI is far more optimist with so many more people seeing your ad.

As a result, the ROI is important when considering an overall budget of a media mix. Also look at other potential profit areas, The local home rem

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

deler might consider spending more in a pricier, high-end magazine that reaches fewer home-owners, but those living in expensive homes. Why? Because his profit might be greater, per job. For example, his Yellow Page

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

ad reaches everyone and he figures he makes $10,000 profit on an average home and therefore uses a 5 to 1 ROI for his YP program. So, he spends $50,000 on an annual YP ad distributed to 500,000 and needs 5 jobs to c

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ver that YP cost. But, in the glossy magazine that goes to only 10,000 upper-level consumers, he might reap a $30,000 profit per job. He still spent $50,000 on a quarterly distribution for a year, but only needs 3 jo

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

bs or a 3 to 1 ROI. Have you got that? The type of media dictated the ROI based on a reconfigured profit margin. The media determines the average customer and the market.

Your radio, TV, magazine or YP rep can give

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

ou the demographic numbers and the reach for each media. They can show you the spending habits of the typical listener or reader, which will allow you to design an ad around the person you are trying to attract. The

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

the ROI should be used to establish the amount you are willing to invest in the short or long run. Each media can be used for different time frames. Some have fixed dates of delivery and longevity such as Yellow Pag

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

es, magazines and newspapers. Others, like direct mail, and TV can be purchased with relatively short notice, depending on availability.

What ever route you take, the ROI is the most important rule of thumb, followe

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

closely by a tracking method to monitor your results. Without that, you have no way of knowing how well the ad worked and whether or not you covered your ROI. If you’re interested in learning more, I wrote a book on

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

how I worked with my Yellow Page clients for 25 years on developing this type of strategy. Even if you use other media, it may be of interest to you as well. Visit poweradbook.com to learn more and remember that the

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

advertising cost is something that is an investment in your business and not just an overhead expense. The ROI will become your ally in deciding where to allocate you funds and can ultimately save you a small fortune

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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In general gifts are given in business to promote goodwill and foster good relationships. They are also given to show appreciation. How do you know what is a proper gift?

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