NEW JERSEY, April 22, 2002: Years ago the buzzword was "positioning." Later, everyone was talking about "branding." The latest industry hot button appears to be "customer relationship management," or CRM for short.

Whereas in the past, the marketing efforts were focused on the brand, in CRM, the focus is on the customers -- their needs, their beliefs, their habits. CRM is based on communication with core customers, who can continue to drive brand success -- if marketers can develop relationships withthem. CRM says grow your brand's success through the development of close relations with your customers via dialogue, feedback, and responsiveness.

We believe that CRM has a place in consumer marketing of consumer products. As a manufacturer selling a DVD player, for example, a company may want to form a trust with its customer. They would employ mail or web-based CRM program to solicit feedback and information about the product -- to allow users to suggest upgrades or improvements, and enable the company to sell peripheral items, or other products in its home entertainment line.

But in marketing of Rx brands, however, we see a fundamental challenge: Can you develop a deep Rx brand relationship with a customer if you are limited by the depth and specificity of the feedback you receive about your brand -- as we are in Rx marketing? It's no secret that when patients provide feedback about a drug, they frequently report side effects. When this happens the pharmaceutical manufacturer is required by law to report those side effects to the FDA. That usually hampers drug companies from initiating such programs in the first place.

This is a unique and puzzling problem in pharmaceutical marketing. We're actually prevented by legal liability from depening the customer relationship.

The stakes are high: customer relationship marketing promises a great way for pharmaceutical companies to stem the erosion in sales caused by non-compliance and lack of persistency.

The ways to reach customers and establish a relationship have never been so exciting. As internet use becomes increasingly mainstream, and as broadband connections like DSL and cable become more and more popular, the use of the web to deliver targeted, powerful, and personal messages poses a great opportunity. Pharmaceutical marketing executives can find exciting new ways to harness these powerful new media channels, and form the kinds of relationships that help patients stay on medication and remain healthy as long as possible.

But until we find a way to create that dialogue and not open the door for liability issues, many pharmaceutical companies will be unable to see the value in developing CRM programs. We welcome feedback about the ways in which companies are acheiving success in Rx CRM.

Until we see one, one that works, we remain somewhat skeptical.

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