Market Report Source

Overview

Tightening markets, generic encroachment, slowing revenue streams and frequent clinical failures have left pharmaceutical companies treading carefully in efforts to find the next profitable drug. Companies are now trying to determine the correct markets to enter at the earliest positive clinical signs.

This great emphasis on early informed decisions has caused the role of market research – and related areas, such as competitive intelligence, new product planning and lifecycle management – to increase in strategic importance.

Improve Market Research Impact shows market research teams how to maximize strategic influence and prove worth to key company stakeholders. Developed by a team of experienced analysts and packed with findings based on two years of continuous study, the report provides insight on the most current MR data available.
Use the report to:

• Drive strategic, informed decision making
• Build a first-class market research analyst training program
• Accomplish unity through structure and standardization
• Benchmark spending and staffing levels
• Strengthen MR global capacity and improve campaigns
• Make the most out of time and budget constraints
• Strengthen or maximize vendor support structure

Sample Content

The following excerpts are from Chapter 1: Communication Strategies for Market Research’s Expanding Role. The full report provides detailed findings.

Deliver Insights, Not Findings
The head of Company X’s market research group approaches adding strategic impact in two key ways. First, he has defined a process for each research project that includes research, analysis, and clear, concise conclusions. He has the teams working on each project get second and third opinions upon both the analysis and the conclusions, to ensure that each problem has been looked at from a number of different angles and the insights do not suffer from insularity or narrow perception. According to this executive, “The key action that we want to take is that we validate actual insights as opposed to just findings.”

This executive’s second goal for his team is to “provide the highest level insights to drive strategic direction.” Driving strategic direction which proves profitable is concrete and irrefutable evidence that the market research team holds significant value and will maximize its resources for the most impact. For the interviewed executive from Company X, this is accomplished by market research analysts who are “good picture painters.”

According to him, many studies exist that have results but few insights. His team’s presentations and final products are not 100 slides of findings but “5 or 6 slides that get us where we need to be. I want someone who can clearly show what the pictures are with some key insights.” His team takes a consulting approach rather than a vendor approach and describes to its clients the market realities, what needs to be accomplished and how to do it, not what it found.

With this approach, Company X’s market research team does not overwhelm internal clients or waste their time. But the team also stands ready to enter a more in-depth discussion if the clients have questions or want to engage the market research team further concerning its findings and suggestions. In this way, the market research team proves multifaceted, showing itself as both a wealth of knowledge and research, as well as advisers on strategic direction…

The following excerpt is taken from Chapter 2: Market Research Structure, Budgets and Staffing

Functions that Contribute to Market Research Budget

Market research groups’ traditional clients have always been brand teams and business development groups. These clients feed the market research budget with their annual needs. This system certainly still exists at many companies; however, the strategic elevation of market research across the industry means more dedicated budgets, as well as a greater number of organizations supplementing the budget.

As Figure 2.25 shows, a large number of departments contribute to market research budgets. Primarily, market research activities are funded by the functions that request the research studies. The percentages represent the percentage of companies whose departments receive funding from the departments listed.

As shown, marketing provides funding to 91% of surveyed market research teams. Brand teams as well as therapeutic areas request and receive support from the vast majority of market research groups.

Another 82% of market research teams hold some level of their own budgets on which to draw. This is an increase over the 54.5% of companies that reported spending their own budgets on research activities in 2007.

Company U is one example of a market research organization whose budget is funded by various business functions. Typically, most of the funding for Company U’s market research comes from the marketing budget or the strategic planning budget…

Table of Contents

Chapter 1: Communication Strategies and Market Research’s Expanding Role
Ranking market research challenges
ROI measurement by percentage of companies
Percentage of market research activities that utilize the Internet, 2003 versus 2008
Hours of initial training for new market research analysts, by company size
Hours of training for market research analysts throughout their first year, by company size
Hours of ongoing training for experienced market research analysts, by company size

Chapter 2: Market Research Structure, Budgets and Staffing
Select surveyed companies’ organizational structures
Percentage of companies with a dedicated market research function
Internal departments involved in collecting market research
Internal departments involved in analyzing market research
US and restofworld market research budgets, 2007 and 2008, by company size
Departments that contribute funding to market research
Brandlevel market research spending, by phase
Market research spending for 13 therapeutic areas, by phase
US and restofworld market research spending 2007 and 2008, by phase
Market research analyst compensation based on experience (manager or executive level), broken down by company size

Chapter 3: Optimizing Market Research Product Support
Allocation of market research budgets: primary versus secondary research
Allocation of market research budgets: qualitative versus quantitative research
Breakdown of market research spending, by activity
Breakdowns of companies using market research studies (e.g., brand awareness, market sizing)
Starting phase for various market research studies
Types of research conducted using online communities
Effectiveness of primary and secondary research using online communities
Most commonly outsourced activities
Percentage of overall US market research budget spent outsourced activity – by company and company size
US market research dollars outsourced by year and by company size
Percentage of overall restofworld market research budget spent on outsourced activities

Charts and Graphics
Figure 1.1: Ranking Market Research Challenges
Figure 1.2: ROI Measurement by Percentage of Companies
Figure 1.3: Companies with a Sharing System for Past Research
Figure 1.4: Percentage of Market Research Activities that Utilize the Internet 2003 vs. 2008
Figure 1.5: Hours of Initial Training for New Market Research Analysts
Figure 1.6: Hours of Initial Training for New Market Research Analysts: Large Companies
Figure 1.7: Hours of Initial Training for New Market Research Analysts: Midsized Companies
Figure 1.8: Hours of Initial Training for New Market Research Analysts: Small Companies
Figure 1.9: Hours of Training for Market Research Analysts throughout Their First Year
Figure 1.10: Hours of Training for Market Research Analysts throughout Their First Year: Large Companies
Figure 1.11: Hours of Training for Market Research Analysts throughout Their First Year: Midsized Companies
Figure 1.12: Hours of Training for Market Research Analysts throughout Their First Year: Small Companies
Figure 1.13: Hours of Ongoing Training for Experienced Market Research Analysts
Figure 1.14: Hours of Ongoing Training for Experienced Market Research Analysts: Large Companies
Figure 1.15: Hours of Ongoing Training for Experienced Market Research Analysts:Midsized Companies
Figure 1.16: Hours of Ongoing Training for Experienced Market Research Analysts: Small Companies
Figure 2.1: Years Market Research Function Has Been In Place Market Research Organizational Structures
Figure 2.2: Company U’s Integrated Market Research Structure
Figure 2.3: Company T’s Market Research Structure
Figure 2.4: Company O’s Market Research Structure
Figure 2.5: Company X’s Market Research Structure
Figure 2.6: Market Research Structural Alignment
Figure 2.7: Percentage of Companies with a Dedicated Market Research Function
Figure 2.8: Internal Departments Involved in Collecting Market Research
Figure 2.9: Internal Departments Involved in Analyzing Market Research
Figure 2.10: Percentage of Market Research Groups Aligned to Support Specific Brands
Figure 2.11: Overall Breakdown of Market Research Funding Sources
Figure 2.12: 2008 US Market Research Budgets
Figure 2.13: 2007 US Market Research Budgets
Figure 2.14: 2008 RestOfWorld Market Research Budgets
Figure 2.15: 2007 RestOfWorld Market Research Budgets
Figure 2.16: US Market Research Budget Change: 2007 vs. 2008
Figure 2.17: RestofWorld Market Research Budget Change: 2007 vs. 2008
Figure 2.18: US Market Research Budgets 2007 vs. 2008: Large Companies
Figure 2.19: RestofWorld Market Research Budgets 2007 vs. 2008: Large Companies
Figure 2.20: US Market Research Budgets 2007 vs. 2008: MidSized Companies
Figure 2.21: RestofWorld Market Research Budgets 2007 vs. 2008: MidSized Companies
Figure 2.22: US Market Research Budgets 2007 vs. 2008: Small Companies
Figure 2.23: RestofWorld Market Research Budgets 2007 vs. 2008: Small Companies
Figure 2.25: Departments that Contribute Funding to Market Research
Figure 2.26: Percentage of Market Research Budget Funding by Department
Figure 2.27: Companies’ Overall Market Research Spending by Phase for Companies Spending in Those Phases
Figure 2.28: Percentage of Participating Companies with PreClinical Market Research Spending
Figure 2.29: PreClinical Market Research Spending
Figure 2.30: Percentage of Participating Companies with Phase 1 Market Research Spending
Figure 2.31: Phase 2 Market Research Spending
Figure 2.32: Percentage of Participating Companies with Phase 2 Market Research Spending
Figure 2.33: Phase 2 Market Research Spending
Figure 2.34: Percentage of Participating Companies with Phase 3 Market Research Spending
Figure 2.35: Phase 3 Market Research Spending
Figure 2.36: Percentage of Participating Companies with Registration and Launch Market Research Spending
Figure 2.37: Registration and Launch Market Research Spending
Figure 2.38: Percentage of Participating Companies with Phase 4 Market Research Spending
Figure 2.39: Phase 4 Market Research Spending
Figure 2.40: Market Research Budget Supporting a Product on the Market
Figure 2.41: Average Market Research Spending by Development Phase: Cardiology & Thrombosis
Figure 2.42: Average Market Research Spending by Development Phase: CNS & Psychology
Figure 2.43: Average Market Research Spending by Development Phase: Dermatology
Figure 2.44: Average Market Research Spending by Development Phase: Endocrinology
Figure 2.45: Average Market Research Spending by Development Phase: Gastroenterology
Figure 2.46: Average Market Research Spending by Development Phase: Hematology
Figure 2.47: Average Market Research Spending by Development Phase: Infectious Disease
Figure 2.48: Average Market Research Spending by Development Phase: Musculoskeletal
Figure 2.49: Average Market Research Spending by Development Phase: Oncology
Figure 2.50: Average Market Research Spending by Development Phase: Respiratory
Figure 2.51: Average Market Research Spending by Development Phase: Urology
Figure 2.52: Average Market Research Spending by Development Phase: Women’s Health
Figure 2.53: Average Market Research Spending by Development Phase: Medical Devices
Figure 2.54: US Market Research Staffing: 2008
Figure 2.55: US Market Research Staffing: 2007
Figure 2.56: Changes to US Market Research Staffing 2007 to 2008
Figure 2.57: US Market Research Staffing 2007 vs. 2008: Large Companies
Figure 2.58: US Market Research Staffing 2007 vs. 2008: MidSized Companies
Figure 2.59: US Market Research Staffing 2007 vs. 2008: Small Companies
Figure 2.60: RestOfWorld Market Research Staffing: 2008
Figure 2.61: RestOfWorld Market Research Staffing: 2007
Figure 2.62: Changes to RestofWorld Market Research Staffing 2007 to 2008
Figure 2.63: RestofWorld Staffing 2007 vs. 2008: Large Companies
Figure 2.64: RestofWorld Staffing 2007 vs. 2008: MidSized Companies
Figure 2.65: RestofWorld Staffing 2007 vs. 2008: Small Companies
Figure 2.66: Market Research Analyst Compensation Based on Experience
Figure 2.67: Market Research Analyst Compensation Based on Experience: Large Companies
Figure 2.68: Market Research Analyst Compensation Based on Experience: MidSized Companies
Figure 2.69: Market Research Manager Compensation Based on Experience
Figure 2.70: Market Research Manager Compensation: Large Companies
Figure 2.71: Market Research Manager Compensation: MidSized Companies
Figure 2.72: Market Research Executive Compensation Based on Experience
Figure 2.73: Market Research Executive Compensation Based on Experience: Large Companies
Figure 2.74: Market Research Executive Compensation Based on Experience: MidSized Companies
Figure 3.1: Percentage Breakdown of Companies’ Market Research Activities
Figure 3.2: Average Length of Time to Complete Activities
Figure 3.3: Allocation of Market Research Budgets: Primary vs. Secondary Research
Figure 3.4: Allocation of Market Research Budgets: Qualitative vs Quantitative Research
Figure 3.5: Breakdown of Market Research Spending by Activity: PreClinical
Figure 3.6: Market Research Activities: PreClinical
Figure 3.7: Breakdown of Market Research Spending by Activity: Phase 1
Figure 3.8: Market Research Activities: Phase 1
Figure 3.9: Breakdown of Market Research Spending by Activity: Phase 2
Figure 3.10: Market Research Activities: Phase 2
Figure 3.11: Breakdown of Market Research Spending by Activity: Phase 3a
Figure 3.12: Market Research Activities: Phase 3a
Figure 3.13: Breakdown of Market Research Spending by Activity: Phase 3b
Figure 3.14: Market Research Activities: Phase 3b
Figure 3.15: Breakdown of Market Research Spending by Activity: Registration and Launch
Figure 3.16: Market Research Activities: Registration and Launch
Figure 3.17: Breakdown of Market Research Spending by Activity: Phase 4
Figure 3.18: Market Research Activities: Phase 4 Studies by Phase
Figure 3.19: Percentage of Companies Utilizing Brand Awareness Studies by Phase
Figure 3.20: Percentage of Companies Utilizing Pricing Studies by Phase
Figure 3.21: Percentage of Companies Utilizing Competitor Analysis Studies by Phase
Figure 3.22: Percentage of Companies Utilizing Needs Assessment Studies by Phase
Figure 3.23: Percentage of Companies Utilizing Market Sizing Studies by Phase
Figure 3.24: Percentage of Companies Utilizing Concept Testing Studies by Phase
Figure 3.25: Percentage of Companies Utilizing Market Potential Studies by Phase
Figure 3.26: Phase Companies Begin Collecting Data for a New Product Launch
Figure 3.27: Phase Companies Begin Utilizing Conventions and Meetings to Collect Market Research
Figure 3.28: Phase Companies Begin Utilizing Internal Databases to Collect Market Research
Figure 3.29: Phase Companies Begin Utilizing Focus Groups to Collect Market Research
Figure 3.30: Phase Companies Begin Utilizing Web Surveys to Collect Market Research
Figure 3.31: Phase Companies Begin Utilizing Internet Portals to Collect Market Research
Figure 3.32: Phase Companies Begin Utilizing Online Databases to Collect Market Research
Figure 3.33: Phase Companies Begin Utilizing Sales to Collect Market Research
Figure 3.34: Phase Companies Begin Utilizing Mail Surveys to Collect Market Research
Figure 3.35: Phase Companies Begin Utilizing Telephone Surveys to Collect Market Research
Figure 3.36: Phase Companies Begin Utilizing Mystery Shoppers to Collect Market Research
Figure 3.37: Phase Companies Begin Utilizing Face to Face Interviews to Collect Market Research
Figure 3.38: Phase Companies Begin Collecting Information from Government, Advocacy Groups, Player Reps
Figure 3.39: Phase Companies Begin to Utilize Customer/Patient Visits to Collect Market Research
Figure 3.40: Phase Companies Begin Utilizing Usability Testing to Collect Market Research
Figure 3.41: Phase Companies Begin Utilizing Sampling to Collect Market Research
Figure 3.42: Phase Companies Begin Utilizing False Flag Job Seekers to Collect Market Research
Figure 3.43: Phase Companies Begin Utilizing Phantom Interview to Collect Market Research
Figure 3.44: Phase Companies Begin Utilizing Predictive Techniques for Market Research
Figure 3.45: Percentage of Market Research Activities that Utilize the Internet 2003 vs. 2008
Figure 3.46: Change in Internet Usage over the Past Five Years by Company
Figure 3.47: Comparison of Internet Usage 2003 vs. 2008: Small Companies
Figure 3.48: Comparison of Internet Usage 2003 vs. 2008: MidSized Companies
Figure 3.49: Comparison of Internet Usage 2003 vs. 2008: Large Companies
Figure 3.50: Companies Utilizing Online Communities
Figure 3.51: Effectiveness of Primary Research Utilizing Online Communities
Figure 3.52: Effectiveness of Secondary Research Utilizing Online Communities
Figure 3.53: Types of Research Conducted Using Online Communities
Figure 3.54: Maintaining Preferred Vendor Relationships
Figure 3.55: Vendor Relationships Management Market Research Outsourcing
Figure 3.56: Most Commonly Outsourced Activities
Figure 3.57: Percentage of Overall US Market Research Budget Spent on Outsourced Activities by Company
Figure 3.58: Percentage of Overall US Market Research Budget Spent on Outsourced Activities: Small Companies
Figure 3.59: Percentage of Overall US Market Research Budget Spent on Outsourced Activities: Midsized Companies
Figure 3.60: Percentage of Overall US Market Research Budget Spent on Outsourced Activities: Large Companies
Figure 3.61: US Market Research Dollars Outsourced by Year
Figure 3.62: US Market Research Dollars Outsourced by Year: Small Companies
Figure 3.63: US Market Research Dollars Outsourced by Year: Midsized Companies
Figure 3.64: US Market Research Dollars Outsourced by Year: Large Companies
Figure 3.65: Percentage of Overall RestofWorld Market Research Budget Spent on Outsourced Activities
Figure 3.66: Percentage of Overall RestofWorld Market Research Budget Spent on Outsourced Activities: Small Companies
Figure 3.67: Percentage of Overall RestofWorld Market Research Budget Spent on Outsourced Activities: Midsized Companies
Figure 3.68: Percentage of Overall RestofWorld Market Research Budget Spent on Outsourced Activities: Large Companies