Mick Kolassa of Medical Marketing Economics LLC, a solution provider company at the marcus evans PharmaMarketing Summit 2012, on pricing products in the pharmaceutical industry. Interview with: Mick Kolassa, Chairman & Managing Partner, Medical Marketing Economics LLC

1. Pricing Products for Success in the
Pharmaceutical Industry
use it has for them, they complain medication decisions. Managing a
about the price. That does not patient’s post-surgical pain is the
necessarily mean that the price was too nurse’s job, but it will be the physician
high, but that they did not understand who will get interrupted constantly by
the product’s true value. Lowering the the nurse if the patient is in pain.
price will not get more customers. If we
can get customers to understand the In every case, it is important to identify
value of our products, price won’t the special problems that the product
matter. solves, so that it is communicated
effectively to the relevant customers.
The biggest mistake that marketers This must be a customized approach, an
make today is asking customers how organized process for getting to the core
much they should charge for products. value issues.
Interview with: Mick Kolassa,
Chairman & Managing Partner, Who has the purchasing power in
Medical Marketing Economics LLC this market?
Marketers believe that payers have all
Pharmaceutical companies are not
maximizing their pricing power and
the power in this market, but that is
also a mistake. Many organizations are
The value of a
opportunities, says Mick Kolassa,
Chairman & Managing Partner, Medical
aligning their resources towards payers,
forgetting the significance of physicians. pharmaceutical
product is often
Marketing Economics LLC. They often
rely on market research that does not Payers want value for their money, but
take into account the complexities of their goal is not to keep good products
the various stakeholders in the industry;
pharmaceutical products are not like
away from physicians and patients.
They should not assume that payers
not clearly
other goods, adds the former editor of
the Journal of Pharmaceutical Marketing
control the market.
established in the
and Management. How can pharmaceutical companies
identify the right price for a marketplace
From a solution provider company at product?
the upcoming marcus evans
PharmaMarketing Summit 2012, in The two most important questions we
Wheeling, Illinois, April 30 - May 2, ask our clients are: What problem does
Kolassa discusses pricing strategies for your product solve that is not solved by Any final thoughts?
pharmaceutical marketers. other products and who owns that
problem? Our method, ValueFraming, Pricing and reimbursement are very
Why is pricing an issue in the digs down to find the real value of complex and dynamic, but there is a
pharmaceutical industry? a product and who it should be great body of knowledge that can be
promoted to. used to make more profitable pricing
The value of a pharmaceutical product is decisions. Price has more impact on a
often not clearly established in the For example, treating cancer is the company’s bottom line than anything
marketplace. When customers do not physician’s problem and not the else, so pharmaceutical companies must
understand a product’s value and what patient’s. The physician will make the treat it more seriously.

2. About the PharmaMarketing Summit 2012
The Marketing Network -
marcus evans Summits group
This unique forum will take place at the Westin Chicago North Shore, Wheeling,
delivers peer-to-peer information
Illinois, April 30 - May 2, 2012. Offering much more than any conference, exhibition
on strategic matters, professional
or trade show, this exclusive meeting will bring together esteemed industry thought
trends and breakthrough
leaders and solution providers to a highly focused and interactive networking event.
innovations.
The Summit includes presentations on social media, healthcare reform and how to
approach emerging markets.
www.pharmamarketingsummit.com
Please note that the Summit is a
Contact
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About Medical Marketing Economics
Medical Marketing Economics specializes in the development of value-based pricing and reimbursement strategies for
biopharmaceuticals worldwide. Our work is driven by an unparalleled understanding of all the participants in the market, including
payers, providers, governments and your competitors. Our motto is our promise: Learn From Our Experience, Profit from Our
Thinking.
For more information: www.m2econ.com
About marcus evans Summits
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To view the web version of this interview please click here: www.pharmamarketingsummit.com/MickKolassa