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Q: Pharmaceutical industry spending on sales/marketing ( Answered,   0 Comments )
Subject: Pharmaceutical industry spending on sales/marketing
Category: Business and Money > Advertising and Marketing
Asked by: tabces-ga
List Price: $25.00
Posted: 10 Nov 2006 15:53 PST
Expires: 10 Dec 2006 15:53 PST
Question ID: 781742
I would like to know the $ the pharmaceutical industry spends in the
U.S. on total sales and marketing. But please do not include the cost
of free samples in the answers. By year for the last 2 - 3 years would
be great, and any forecasts for the next few years too.
Thank you

Request for Question Clarification by keystroke-ga on 10 Nov 2006 19:33 PST
Hello tabces,

I'm pretty sure that any breakdown of these figures that a researcher
would find would have to include all sales and marketing figures--
including free samples.  These companies do consider that marketing
and so they would include it. So would you still like this information
even including free samples?


Clarification of Question by tabces-ga on 13 Nov 2006 09:46 PST
Yes, I'd take an answer even if it had the cost of drug samples
included. I'd prefer if you could tell me for sure that those numbers
are included though, so i could at least estimate how much to
subtract. I know when they include the fair market value of the drugs,
it is a high percentage of their total sales/marketing cost, but if
they were to consider their actual cost of the drugs, it would be a
very small percent.
Subject: Re: Pharmaceutical industry spending on sales/marketing
Answered By: keystroke-ga on 07 Dec 2006 21:05 PST
Hello tabces,

Thank you for your question and your clarification.

The recent figures are about $30 billion overall, and about $15
billion of that for free samples.  It has gone up quite a bit, as past
expenditures show, doubling since 2000.  As you can see in the trends,
pharmaceutical spending is going up with no signs of stopping.  Even
as pharma companies fall on hard times, they will ramp up the
advertising to make up for any lawsuits or lost drugs.

2006 numbers (for 2005)--
$30 billion

Pharma Marketing Blog

"'Pharma spends $30B annually on Marketing. About $10B of that goes to
field force activities, including the cost to have 110,000 sales reps
in the field, drug samples as well as pens, lunches, etc.

"However, bulk of cost is the Rep and samples, not the other freebies.
Another $6B goes to DTC and DTP programs. About $1B for data and
market research activities. The rest goes to all of their other
Marketing activities. They spend about 12% of sales on Rebates, so
that's as big as marketing spend. They also spend slightly less to
same on R & D.'"


(From Newsweek via Pharma Marketing Blog)

'"Drug companies spent another $27.7 billion on promotion, including
$15.9 billion on free drug samples and $7.3 billion on sales-rep
contacts (free lunches and pens), $4 billion on direct-to-consumer
advertising and $500,000 on journal advertising..."'

$25 billion overall, $16.1 billion of which is for free samples

$21 billion, $12 billion for samples

$16 billion, $7.9 billion in samples

$12.7 billion, $6.6 billion in free samples


Stanford University

Health Concerns blog

UW News

RFID Journal
"RFID Could Enhance Pharmaceutical Marketing"

Search terms:
pharmaceutical marketing us sales
pharmaceutical marketing billion 
pharmaceutical marketing billion 2006

If you need any additional clarification, let me know and I'll be glad
to assist you.

There are no comments at this time.

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