Subjects - Internet and Businesses Online

Today, if you ask any marketer what his biggest challenges are you will no doubt hear Return on Investment (ROI) at the top of their list. With competitive pressures,

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

businesses more focused on profitable growth, and an increased need to do more with less, marketing professionals need to generate favorable returns on most – if not al

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

Examples of combination products may in

l of their marketing campaigns.

Upon first blush, this looks rather simple. Just take the total cost of your campaign, track it through to conversion and determine th

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

at the revenue generated is greater than the expense. However, most people make the mistake of assuming that calculating ROI is only involves direct expenses and reven

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

ue. There are other factors to consider when determining your return on investment.

In a moment, I’ll show you a quick formula to help calculate ROI, but before I do,

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

Combination pro

let me explain the types of expenses you need to consider:

Direct Expenses. Any cash outlay you have to develop, create, and distribute your marketing campaign is co

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

nsidered a direct expense. For example, if you’re doing a direct marketing campaign, you’ll have to print your mailer, pay for postage, and offer an incentive. All of

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

these factors are direct expenses because they cost you money.

If you’re marketing online with Google Adwords or a similar type of service, you’re paying for each and

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

every click – this is considered a direct expense.

Indirect Expenses. An indirect expense is something you spend to in conjunction with your marketing efforts but do

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

esn’t necessarily involve a cash outlay. For example, if you pay a copywriter or designer to help with your creative, their time and expense must be considered. Other

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

indirect expenses might include your overhead such as rent, electric, phone, insurance, etc.

Now that we’ve identified some of your expenses associated with an ROI cal

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

Following aspects would a

culation, lets look at a specific campaign example and how we can determine our return on investment in a simple manner.

Example1: MarketingScoop, LLC decides to send

dd to the challenges in developing combination products:

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

a post card mailing to a list of small businesses promoting their directory service listing. Here is a list of expenses associated with the mailing:

Direct Expenses

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

Post card design $100 1,000 post cards $200 Postage $500 Total $800

Indirect Expenses Indirect Expenses X .25* $200

A rule of thumb you can use to cal

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

culate your indirect expenses is to multiply your direct expenses by 25%. If you want a more exact determinant of indirect expense, you will have to record the amount

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

of time attributed to this particular marketing project as a percentage of your annual ‘available working hours’. Then, multiply this percentage against your total bus

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

Professional from academic institutions, pharmaceutical industries, health care indust

iness expense.

Based on our calculation above, total campaign cost equals $1,000. For this example, let’s assume that the campaign brings in $2,500 in revenue. Simpl

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

y divide revenue by expense ($2,500/$1,000) to determine ROI. In this example, our ROI was 2.5.

Note: This is a Gross calculation which means that we have not subtrac

.

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

ted any product related expenses. This gets into Net Income, EBITDA, and other stuff for the accounting team to figure out.

The key is to use this information as a be

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

Companies that provide selfless information through particip

nchmark for future campaigns. Instead of assuming that a marketing campaign is productive, you now have a basic measurement to evaluate it and compare future campaigns

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

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.subjects.org.ua/article/65676/subjects-Marketing-ROI--Make-Sure-Your-Marketing-Is-Making-Money.html">Marketing ROI - Make Sure Your Marketing Is Making Money</a>

BB link (for phorums):
[url=http://www.subjects.org.ua/article/65676/subjects-Marketing-ROI--Make-Sure-Your-Marketing-Is-Making-Money.html]Marketing ROI - Make Sure Your Marketing Is Making Money[/url]

Overall Equipment Effectiveness (OEE) is fast becoming a widely used measure for manufacturing industry, but it is also one of the more misunderstood and misused measures and causing much confusion.

Discover how to pocket $400 - $900 a day or more with our proven system and keep 100% of the profits. Discovering the critical moneymaking power of Perfect Wealth Formula.

Tags

Links

Subjects - Marketing ROI - Make Sure Your Marketing Is Making Money

Related Articles: