Regional Sales And Marketing Optimization Modeling: A Call For Technical Changes

The concept of “all marketing is local” in the pharma environment is more valid today than ever before. We see tremendous variations in salient factors that would affect commercial outcomes from sales and marketing promotion-response and optimization modeling at a subnational level. Data has become more available at the physician, patient, and healthcare system levels allowing for more precise subnational optimization modeling. In response, various pharma companies have moved toward instituting regional archetype models within the last 10 years. Yet, are the key underlying technical assumptions that support this trend toward more geographically-granular focused models truly creating regional/local product margins necessary for sales and marketing resource allocation optimization?

This white paper says likely not, despite the capacity to run such models, and thus the focus of this white paper. While this technical point may seem to be a minor one, its implications on regional sales and marketing resource optimization outcomes could have significant impacts and deviations from those found in current practice.

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