Amazon=Sears catalog

Contemplating the success of Amazon seldom brings to mind any thought of the epic failure of Sears, except in the sense of an example of the best and worst of retail.

But I read a piece today that made the incredibly insightful point that Amazon is in fact basically a digital version of the analog Sears catalog.

Few remember that Sears had its origins, as did Montgomery Ward, as a purely catalog retailer, with no retail stores. Sears revolutionized marketing by enabling anyone, anywhere to buy virtualy anything via mail order. In what was then (in the 19th century) still a largely rural nation, with many small farmers, this was hugely disruptive, and raised standards of living nationwide.

The key to the catalogers' success was trust. As Sears, Wards, and the other catalogers evolved into retailers with physical stores, that trust was broken. Shoddy goods, sold with dubious promotional techniques, shattered the bonds between retailer and customer.

By the time the Internet came on the scene, the catalogers' brands were tarnished. Enter Amazon, which upon reflection is nothing more than a "Big Book" catalog in html. Amazon has built a reputation for delivering quality goods that are excellent values. It has out-priced the bricks-and-mortar competition.

The flaw in the business model as I see it is profitability--the low prices are made possible by razor-thin margins. So far, the stock market has made this unsustainable business model possible. Presumably at some point, Amazon will have to increase margins, which may be possible based on the power of the brand and the value it provides through a convenient, trustworthy shopping experience. 

The tragedy is that the old-time catalogers such as Sears and Wards squandered their dominance by disrespecting their customers. Had they maintained the  trust of their clientele, they could have made the transition to the online era, and Amazon would probably not have achieved the success it has enjoyed.   

Herein lies a lesson for all marketers. The most important asset a business has is a trusted brand. Focus on maintaining that, and you can survive any disruptive technology, as long as you don't develop a fetishistic devotion to the means of distribution. Sears was not in the catalog business, or even the retail store business. It was in the business of delivering value by providing affordable goods and services. Many American business, including the auto industry, lost sight of that in the 60s and 70s, By abusing customer trust, they sealed their fate, the the detriment of the customer, the company, and the country.  

Sunshine Act could cause 3rd degree sunburns

Check out an article in the August 2013 issue of MedAdNews entitled "Responding to Sunshine" (it isn't online yet as far as I can tell as of this writing).

Here's the scary part, which comes close to the end of the piece:

"Federal and state agencies will regularly consult the data to uncover investigation opportunities. The IRS may start auditing physician tax filings once they see the posted data. The DOJ will be looking for potential violations of the Ant--Kickback statute (AKS), where payments may be seen as inducements to prescribe products. And if a claim is submitted to a federal health care program for payment of items prescribed in violation of AKS, the False Claims Act could be implicated. We will see cases brought that link Sunshine to both of these laws."

So physicians will not just risk public exposure and embarrassment when they accept payments from pharma, they will be exposed to serious legal risks.

Clearly, the Sunshine Act is going to exert a powerful disincentive for physicians to provide any services or accept anything of value from the industry. There are clear downsides. Valuable industry-professional collaboration may cease to exist. Some industry business models may be vaporized, with a commensurate impact on sales.

However, there may be a silver lining to these clouds. Opportunities for new service businesses may arise to provide services previously rendered by physicians. Industry expenses may be reduced by enforcing rules that apply to every pharmaceutical company and physician, with stiff penalties for non-compliance. 

Only time will tell how these benefits and risks play out. But one thing is clear: physicians will be loathe to accept any money from pharmaceutical companies if the legal risks become clear as enforcement actions ensue.

Content marketing--use all the available tools

I took in a webinar the other day on content marketing. The presenter suggested a number of different ways to repurpose content (e.g., white papers) to leverage it for maximum exposure. These include:

• Email--this includes transactional emails, which can reference available content in signature lines 

• Slideshare using keywords that will attract your target market

• YouTube

• Podcast

• Web site resource center

• Infographic on Pinterest

• Press release distributed via service such as 24-7pressrelease.com

• Syndication via services such as zdnet and edocr.com

• Review sites such as Yelp

You put a lot of time, energy and money into your content. Be sure to use tools such as email and the others described above to publicize it. Content marketing doesn't necessarily work like the movie Field of Dreams--if you build it, they may NOT come unless you promote it.

65% of oncologists hard to see--an argument for non-personal promotion including email

I just read that ZS Associates has the 7th toughest interview process in the country. Since they're hiring nothing but the best and brightest, their opinions carry some weight.

So I read with interest a post on Pharmalot today citing a ZS study which found that oncologists are the toughest specialty for pharmaceutical representatives to see. Other specialties are tough too.

What's interesting is the trend: In 2008, ZS found only 17% of oncs were hard to see. Part of this, as ZS cogently notes, is the proliferation of onclology products over the past 5 years, each with an eager sales force banging on the doors of onciology practices across the fruited plain.

However another factor is involved as well: the fact that more and more practices restrict rep access.

To me, this marked increase in hard to see and no-see physicians is a forceful argument for using more non-personal promotion, including email. MMS recently surveyed physicians and found over 60% prefer to receive information about pharmaceutical products via email, whereas only 20% preferred sales reps. This may be in part due to the fact that they CAN'T see reps due to organizational restrictions.  

Here's a link to the PharmaLive piece about the ZS study:

http://www.pharmalive.com/oncologists-continue-to-shun-sales-reps-more-than-other-docs?cid=nl.phrm01

Here's a link to the MMS survey about physician information delivery preferences:

http://www.mmslists.com/email_2012/mms_2013_survey_results.pdf



 

The Strategic Importance of Email

At this year's Digital Pharma West, I had the privilege of hearing Dev Dutta of Merck speak on the strategic importance of email in  pharmaceutical marketing. In one 45-minute presentation, Dev summed up the message I would like all pharma marketers to hear.

His essential point was that email is not merely a tactic. When used properly, it is a strategic platform that can achieve important marketing objectives quickly and measurably.

So when Anna Stashower invited me to submit a Guest Commentary on the conference for publication in PM360 magazine, it didn't take me long to decide to write up Dev's presentation.

Here's a link to the piece:

 http://www.pm360online.com/the-strategic-importance-of-email

I strongly encourage you to read it, as it can change the way you use email in a very positive way.
   

Massachussetts healthcare reform poll shows troubling shape of things to come for Obamacare

For a view of the shape of things to come post-Obamacare, read this article on public opinion in Massachusetts, based on a Massachusetts Medical Society poll.
 

Causes for concern:

• Wait times of over a month for primary care are reported;

• ER use is at an all-time high;

• Cost remains a consumer concern;

• 2/3 of respondents do not want to see NP or PA instead of MD or DO.

On the bright side, most respondents are satisfied with and have access to health care. But since Obamacare is so similar to the Massachusetts system (aka Romneycare during the last election), the items above show the issues that will emerge in all likelihood. People who are frustrated with wait times will head to expensive emergency rooms. Costs will remain a consumer concern but will be even more challenging to the federal government. Substituting PAs and NPs for physicians, a logical solution to address cost and access issues, will be challenging based on consumer preference for MDs and DOs.

See a local press report with a  link to the survey results here:

http://www.golocalworcester.com/health/mms-releases-health-care-public-opinion-poll-for-2013/
  

5 magnetic headline types and 3 headline writing tips

Here's yet another winner from this month's Target Marketing magazine, authored by Joy Gendusa (www.poscardmania.com): 
 
Joy cites 5 types 5 Types of Magnetic Headlines that draw readers in:

• Type 1: Best/worst.  "The 3 Best Ways to Treat Damaged Hair" or "The 7 Worst Home Decorating Choices You Can Make."

 

• Type 2: How-to.  "How to Plant Your Own Garden," "How to Clean Your Own Jewelry at Home," etc. .

 

• Type 3: Fact vs. fiction/truth vs. lies.  "4 Things Your Mortgage Lender Won't Tell You." .

 

• Type 4: Dangling carrot. "3 Fast Ways to Turn a One-Pack into a Six-Pack.", "5 Best Purchases for HUGE Cash Flow." 

• Type 5: Danger-avoidance.  "Is Disaster Lurking Beneath Your Home?"

 
She adds 3 headline writing tips
 

• Use numbers: "5 Ways to ..." or "3 Steps to ...".

 

• Use engaging words like "supercharge," "outrageous" or "exciting" judiciously.

 

• Use pop culture references.

Read the entire article here:

http://www.targetmarketingmag.com/article/5-formulas-pull-traffic-3-tips-write-headlines-allure#

6 tips for newsletter publishers

Here are six great tips for newsletter publishers courtesy of the legendary Reggie Brady (www.reggiebrady.com) @rbinCT from the most recent Target Marketing magazine www.targetmarketing.com @TargetMktg:


• Use a snippet at the top of your emails to highlight additional topics not covered in the subject line.

• If you have a table of contents, use anchor links so readers can easily click to the article of interest.

• Check your width. With so many people reading emails on a mobile device, you want your content to be accessible. Keep your width as close as 500 pixels as possible.

• If you use columns, make sure the important information is in the larger left-hand column. Some mobile devices will only show the upper right-hand part of the screen.

• More than 40 percent of emails are read on a mobile device; therefore, you need to rethink font sizes. Headlines should be a font size of 22 and body copy should have a minimum font size of 13 to ensure certain browsers will not resize your copy. Any call-to-action buttons should be 29 x 44 pixels with 10-pixel padding.

• Sharing is important! Friends and colleagues are influencers. With newsletters, it is likely that you want to include sharing icons after each article to maximize exposure

Here's a link to the full article:

http://www.targetmarketingmag.com/article/how-e-newsletters-enhance-your-communication-strategy/1

MMS makes it in the Big Apple

Yes, MMS has finally made it in the Big Apple. We got our name in lights in Times Square! How, you may ask? Well, we sponsored a survey of recruiters conducted by the National Association of Physician Recruiters (NAPR) as well as a press release via PR Newswire publicizing the study.
Evidently, when you issue a PR Newswire press release, you get the pictured exposure.

Hopefully some of our potential customers looked up as they struggled to navigate the Manhattan pedestrian challenge.