From Mark McCoy, SVP, Brand Planning Director, Palio

Recent developments have opened up a better, faster, cheaper route to market for new medicines. Marketers should seriously consider the medical marijuana commercialization path as an alternative to the tradition route to market via the FDA approval process.

Medical Marijuana Indications

Consider the status of medical marijuana in the state of New Mexico today.  Marijuana is approved for use in 15 disease indications in that state.

8-Member Board Provides Approvals

The approval process for gaining a new indication for medical marijuana is much less rigorous than the process required by the FDA. For example, according to the New Mexico Independent, Representative Sal Pace said, “An eight-member board of physicians in New Mexico just verified that medical marijuana does assist fight (sic) the symptoms of PTSD.” The pharma industry could save billions in R&D costs every year, by gaining approval of the 8 New Mexico physicians instead of the FDA.

Trend Is Sweeping the Nation

New Mexico is not alone. There are 14 states that currently allow the use of medical marijuana: Alaska, California, Colorado, Hawaii, Maine, Michigan, Montana, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont and Washington. Many other states are considering making marijuana legal.

Precedent for Bypassing FDA

For the pharma industry, the legalization and commercial sale of medical marijuana represents a tremendous precedent. The states have allowed a drug to be sold and promoted for the treatment of extremely common diseases without the benefit of any FDA approval or oversight.

New Competitive Advantage?

A pharma company wishing to sell a new drug for glaucoma, for example, could follow the medical marijuana route to market. This new glaucoma drug could gain breath-taking advantages over its competition. The glaucoma drug maker could conduct minimal or no clinical trials, realizing vast savings in time and money. The company could forgo Good Manufacturing Processes (GMPs) and the need for Prescribing Information (PI). If challenged, the pharma company could argue that they are merely following the same process used by a previous drug that is also approved and sold for the treatment of glaucoma. It could not be argued that marijuana is an herb or a botanical and not a drug, since marijuana is classified as a class 1 narcotic by the federal government.

The Spark For A Pharma Industry Boom?

It would be fascinating to see a net present value analysis for a new a drug comparing the profitability of the commercial asset if it were developed through the traditional FDA route or the wide open medical marijuana route. If this new route to market were exploited by the industry, patients, physicians and investors would all benefit handsomely.

From Maureen Wendell, VP, Account Services, Palio

A college friend of mine recently started a new business – Heard it From a Mom – that revolves around a unique viral marketing concept called the “Product Relay.”  Heard It From a Mom Product Relays leverage the power of Moms when it comes to product endorsement. In the Relay, a Mom can try a product for free and then refer other Moms she knows to try the product. They can in turn refer other Moms and so on. Since it turns out that 70% of Moms purchase products based on another Mom’s recommendation, the relays have the potential to drive sales by generating Mom-to-Mom product endorsements.  And since this all takes place through the Web site and via the many mom blogs, the results are highly measurable and can range from volume data to psychographic/demographic data on the highest value customers.

All very interesting for the consumer packaged-goods sector, but how can the relay concept enable pharmaceutical companies to harness the power of viral marketing, product trial, personal endorsement and word of mouth promotion? Since we cannot head down the road of product recommendation, we need to find another leverage point that can motivate patients to care for their health and develop a relationship with our brands.

One of the greatest unmet needs in healthcare is education. If we can find ways to reward patients who engage in educational activities along with a brand, it’s a win-win for patients, pharma companies and healthcare overall. With the tools at hand today – games, apps, video – we have the power to engage patients in the most basic (and boring) disease state information and start an Education Relay.

Take diabetes for instance.  A patient who understands carb counting, their insulin sensitivity factor, their insulin:carb ratio and how to translate frequent BG readings into hbA1c is empowered to not only control their disease but to also influence others.

What’s in it for the patient?

- Fun: If the tools are engaging and mobile, it can be a great experience. One need look no further than the Farmville and Mafia Wars to know that games are HOT and people are willing to devote a significant amount of time to playing.

- Savings: Patients that participate and relay to others can earn points that can be used to reduce their broader healthcare costs (vs. discounts on a pharma sponsor’s brand), such as a pharmacy card.

- Altruism: Sponsors can donate to a relevant cause for each engagement/relay.

What other “hooks” can we explore to start an Education Relay and allow pharma brands to develop brand advocates and spread their influence?

Palio is a full-spectrum global pharmaceutical and consumer advertising, marketing, and communications agency that excels in brand creation and specializes in brand strategy, product launches, global marketing, and digital and integrated media.

From Alan Steele VP, Director of Studio Services, Palio

First and foremost, people view cancer as a life-threatening disease. On top of it, cancer treatments are seen as lengthy, invasive, and debilitating courses of action. And for most people, cancer is a malady only to be discussed with their doctor and closest friends and family.

Advertising agencies that create communications for oncology or cancer prevention therapies and fund-raising organizations have identified these concerns and usually rely on three specific imagistic themes when appealing to cancer caregivers and patients, which I list as: 1) survivors, 2) lifestyles, and 3) loved ones. By using images that depict survivors, images that show freedom of movement in active lifestyles, and images that reinforce the importance of continued connections with loved ones, the unbranded or branded communications give cancer patients a picture to ‘aspire’ to.  As one doctor wrote, “If you really wanted to give people real information, you would give them statistics, but that wouldn’t be nearly as compelling.” So, touching emotions is the main driver in all of these categories.

Survivor Imagery

Breakthrough Breast Cancer is the leading UK charity committed to fighting breast cancer. The black and white photograph with a polaroid-like white border stuck to a pink memo board with a push pin is almost documentary in style. The woman wears a white terry robe (healing after battle). She is at home alone in the kitchen pondering what she has been through. The Erbitux ad, cetuximab injection for head and neck cancer, pictures a rugged, bearded, outdoor-type of man holding a black and white x-ray of his skull and neck vertebrae.

Lifestyle imagery

The DTC TV commercial for Gardasil, a human papillomavirus (HPV) vaccine from Merck that helps protect against 4 types of HPV, shows images of girls playing soccer, skateboarding, jumping rope, and playing drums. There are about 6 million new cases of genital HPV cases annually, 74% in the 15 to 24 year old age range.

Gemzar is a Lilly product that treats recurring ovarian cancer. This professional ad balances the lifestyle story with clinical data. A close-up photograph of a woman with snow goggles that reflect the arctic landscape, the massive fur head covering, and the film clips of mushing huskies all symbolize her challenging life journey with recurring cancer.

Loved ones imagery

The GlaxoSmithKline DTC TV commercial for cervical cancer shows a young woman on the front porch of a friends’ country home in winter. She has gone outside to make a private cell phone call to another friend so her friend inside won’t hear what she is saying. “Where are you?” “I’m with Kate, she has cervical cancer.” “What did you say?” “What could I say?”

The American Cancer Society’s More Birthdays TV campaign shows surprise birthday parties among friends, couples in a restaurant being given a birthday cake by the waiter, and scenes at home of couples of all ages with birthday cake and candles.

A television commercial by Australian Suncorp shows images of a mother and baby in a nursery, a crossing guard helping schoolchildren cross the street, and families at home preparing to go out in the sun. “It’s our way of life to protect ourselves and those we love.” The message is that others initially take care of us, then as we age, we must take care of ourselves and others.

The UK print ad by The Roy Castle Lung Cancer Foundation pictures a little girl with her doll seated in a grown-up leather chair. Her right arm is that of her mother, large and flabby with jewelry, nail polish, and a burning cigarette. The ad addresses the problem of second-hand smoke in the home.

The examples go on. These are typical images seen in messages about cancer or cancer-related products. Maybe there’s room to go about things differently? What do you think?

Palio is a full-spectrum global pharmaceutical and consumer advertising, marketing, and communications agency that excels in brand creation and specializes in brand strategy, product launches, global marketing, and digital and integrated media.

From Richard Roginski, Creative Services Manager, Palio

Whether you fill it with coffee, tea, water or even vodka, chances are your morning cup of joe is held by a mug which has sentimental value. And if it is anything like mine, it has been on quite a journey of its own.  My mug started in my college dorm (where it was filled with vodka). It was purchased from a clearance bin at my favorite Starbucks back in 2001. Almost 10 years later, my mug has visited three different companies, survived a recession, graduated from college and spent a few months lost in the trunk of a car. Luckily my mug really loves its current home at Palio.

While at Palio, it has survived a kidnapping incident (authorities are still investigating who “mugged” my mug) and a freak dishwasher incident. Luckily my mug continues to thrive and provides me with a refreshing break from the daily grind.

Where has your mug been? Where is it going? What do you fill it with? Every mug has a story, what is your mug’s story? Oh, one last thought, keep your mug safe, tag it with a Sharpie.

From Bob Mason, EVP, Managang Director of Brand Strategy, Palio

Marketing and advertising have always been realms where hot topics and buzz phrases abound. One subject that I’ve read about for some time, behavioral economics, is one of those topics that’s having the big spotlight shone upon it as of late.

It seems I can’t pick up a magazine or trade journal without some reference to the discipline. As I type this, I literally have four different documents on my desk that happen to address the subject. They come from the likes of Advertising Age, McKinsey, Towers Watson, and even the Federal Trade Commission. Clearly the topic is achieving a business culture “tipping point” (another one of those hot industry buzz phrases that has caught on, thanks to the wonderful insight and writing of Malcolm Gladwell).

It’s interesting for me to observe this because, as a discipline, it’s been bantered about in academia for some time, but it’s just now getting attention in the business, consulting, and media worlds. What’s most interesting to me, though, is the simple (and oh-so-long-overlooked-by-too-many-marketers) premise at its core. Simply put, behavioral economics (often described as “a blend of psychology and economics”) is considered to deviate from traditional economics, according to a recent Advertising Age article, “in that it doesn’t assume consumers behave rationally, like a market (in theory) does, making decisions based solely on facts or logic such as price or quality.”

Really, you don’t say?

The fact that that’s newsworthy is a frightening statement about our industry. For far too long, we’ve taken research respondents words at face value and continue to be baffled when brands don’t excel in the marketplace. You’ll often hear, after the fact (when brand performance isn’t what everyone dreamed, hoped, and expected), “Well, the research said XYZ so that’s what we did.”

I’ve mentioned it in previous posts, but frighteningly enough, I’ve probably interviewed (or been behind the focus group mirror listening to) thousands of research respondents over the course of my career. And I’ve yet to have met one who is “influenced by advertising and marketing.” At least to hear them say it, they’re all ultra rational.

Don’t get me wrong. I don’t believe that marketing and advertising cause people to rise up from their chairs and march, zombie-like, to the store. But it obviously impacts people more than they realize and/or would be willing to admit. But no one wants to look less than rational.

So, next time you’re developing a market research plan, please factor this “newfangled” behavioral economics thinking into the mix. Recognize that consumers are crazy and will lie to your face (I say this in the most endearing of ways) and that, to truly understand their values, motivators, and deepest hopes, you have to use market research the right way, employing methodologies, techniques, and lines of questioning that, combined with good judgment and courage after the fact, will help build better insights into stronger brands.

Call it behavioral economics or call it common sense. It’s the right mind-set to have when approaching the marketplace.