joint venture marketing joint venture marketing Each year pharmaceutical companies spend billions on marketing, advertising and partnerships. They enter into these agreements in hopes they will improve their bottom line. Whether the venture is sponsorship, research outsourcing or directly to the consumer, the end result is the same, effective marketing techniques create revenue. Funding Research
joint venture marketing
joint venture marketing
Each year pharmaceutical companies spend billions on marketing, advertising and partnerships. They enter into these agreements in hopes they will improve their bottom line. Whether the venture is sponsorship, research outsourcing or directly to the consumer, the end result is the same, effective marketing techniques create revenue.
Funding Research Project
The world’s largest drug maker, Pfizer announced in November of 2010 a sponsorship deal with University of California San Francisco (UCSF) to develop new biologic treatments. Pfizer agreed to set up joint laboratories on campus, combining the basic research expertise at UCSF with Pfizer’s knowledge of drug development. UCSF researchers will benefit because they will be allowed to publish their findings in academic journals. The university will also share with Pfizer the ownership rights to the new drugs, which will mean millions for the school. Pfizer, like many pharmaceutical companies, has been affected by the economic downturn of the past couple years which have caused venture capitalists to turn more cautious. The venture capitalists are now often requiring more and more evidence from scientific entrepreneurs, including university faculty, before they will consider financing promising new therapies through clinical trials.
Direct to Consumers
Have you seen Avandia logos on pens and notepads at your physician’s office? Or been given a free sample of Os-Cal Ultra 600+ D to try? Those items are freebies given to the physician’s office by the GlaxoSmithKline pharmaceutical company to get physicians to prescribe their brand of medications to you. Both the physician and the GlaxoSmithKline Company benefit from you taking that specific medication. Another example of marketing that is direct to consumers is Merck & Co., they are taking big measures to boost sales of newer and brand-name drugs while addressing patient adherence concerns by stepping up “loyalty card” programs, receive in mail or e-mail coupons and rebates. The proliferation of discounts on certain prescription medications is gaining traction, observers say, because they enable patients to reduce out-of-pocket costs.
The Johnson & Johnson Company, which produce health care products, sponsor youth softball programs. Johnson & Johnson has the opportunity to promote products to their target audience, the parents, as well as help out the communities by funding youth sports programs. They hand out first aid kits during games as needed or sunscreen on hot sunny days, the consumer will see the products and become aware of what the company has to offer.
Some pharmaceutical companies like Eli Lilly take sponsorship into the professional sports arena. Eli Lilly and the PGA Tour announced a partnership in November of 2003. To support the partnership the companies developed a series of golf-themed vignettes featuring some of golf’s top players. The vignettes focused primarily on the emotional connection to the game with themes such as relaxation, preparation and confidence. The agreement also included an on-site component; whereby Eli Lilly joined MasterCard(R) as a sponsor of the electronic scoreboards at PGA TOUR and Champions Tour events. A partnership with the PGA TOUR allowed Eli Lilly to connect with millions of golf fans, many of whom enjoy golf because it is both relaxing and invigorating.
Naturally most small businesses do not have the same level of marketing dollars; however the principles related to joint venture marketing are the same at any budget level.
christian fea is CEO of Synertegic, Inc. A joint venture marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
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