Impact of Social Media Promotion on Pharmaceutical Organizations

Abstract

This research is intended to explain the transition that occurred due to the advent of social media marketing in the Indian Pharmaceutical Industry and also to examine the cause for the adoption of pharmaceutical social media promotion. Pharmaceutical producers and importers spend millions of rupees each year marketing pharmaceutical products, and these firms have now begun the promotion of pharmaceutical products the use of social media for the promotion of their brand. Social networking is undoubtedly going to modify the structure of the market. The value of social media has been recognized by many pharmaceutical firms such as Pactro, GSK, etc. (Beth SynderBulik, 2011), and thus a massive chunk of capital is involved, resulting in a large sharing network of customers, hospitals, healthcare websites, and pharmaceutical firms.

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Annals of R.S.C.B., ISSN:1583-6258, Vol. 25, Issue 3, 2021, Pages. 3315 - 3322
Received 16 February 2021; Accepted 08 March 2021.
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Impact of Social Media Promotion on Pharmaceutical Organizations
Samrat Kumar Mukherjee1, Dr. Jitendra Kumar2, Dr. Ajeya Jha3
1Department of Management Studies, Sikkim Manipal Institute of Technology,
India, Orchid Id:0000-0002-8839-0140
2 Department of Management Studies, Sikkim Manipal Institute of Technology, India
3Department of Management Studies, Sikkim Manipal Institute of Technology, India,
Orchid Id: 0000-0003-0491-5008
ABSTRACT
This research is intended to explain the transition that occurred due to the advent of social media marketing in the
Indian Pharmaceutical Industry and also to examine the cause for the adoption of pharmaceutical social media
promotion. Pharmaceutical producers and importers spend millions of rupees each year marketing pharmaceutical
products, and these firms have now begun the promotion of pharmaceutical products the use of social media for the
promotion of their brand. Social networking is undoubtedly going to modify the structure of the market. The value of
social media has been recognized by many pharmaceutical firms such as Pactro, GSK, etc. (Beth SynderBulik, 2011),
and thus a massive chunk of capital is involved, resulting in a large sharing network of customers, hospitals,
healthcare websites, and pharmaceutical firms.
Keywords:Social Media Optimization, Direct-to-Consumer Pharmaceutical Advertising, India, SMAC Model, E-
Patients, Pharma value chain.
1. INTRODUCTION
A main medium to promote a product in the industry has been social media. According to the Yral Social
Media Study 2016[1], the number of active social media users in India increased by 15 percent from January
2015 to 136 million in 2016.
Social Media Promotion (SMP) is the "next huge thing" for certain marketers, a fleeting and effective
instrument that must be taken advantage of while still in the spotlight.In 2014, 92 percent of marketers
reported that social media promotion was essential for their business, according to Hubspot, with 80 percent
showing that their activities improved traffic to their websites [2]. 97 percent of advertisers are actively
interested with social media, according to Social Media Researcher, but 85 percent of participants are not
sure what social media platforms are the easiest to use.Acoording to some study “the drug industry allocated
less than 4% of the more than $4 billion it spent on direct-to-consumer advertising to internet outlets in
2008, and only a tiny fraction of that was for social networking sites.” But this status does not tell the full
information [3]. In US, 90 percent of people aged 18-24 trust medical data or participate in health practises
on social media. A third of the adult US population does the same, according to a survey by Pew Research.
SMP covers all practices in the marketing process related to the exchange of content, videos, images,
reviews, recognition, expertise, etc. Companies are now marketing their individual goods, buyers are willing
to exchange experiences and insights, and the interaction between business and consumers reaches beyond
the horizon.In a study conducted by recent Harvard Business Review reports [5] that the advertising and
promotion approach for pharmaceutical firms has long been to tap into the "right" primary opinion leaders
(KOLs). They further note that social networks play a vital role in prescription decisions for doctors. A
research reveals that since 2013, the total number of tweets by pharmaceutical industry has increased by 530

Annals of R.S.C.B., ISSN:1583-6258, Vol. 25, Issue 3, 2021, Pages. 3315 - 3322
Received 16 February 2021; Accepted 08 March 2021.
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percent and the big pharma companies have increased their followers on Twitter by almost 300 percent. The
industry still has a long way to go, though, keeping in mind the potential this medium has to offer[6].
Social media optimization (SMO) is one of SMP's main elements. SMO is a method for attracting new and
unique users to a website, much the same as Search Engine Optimization (SEO). Most of these social media
sites have their own built-in data analytics tools that allow companies to monitor the success of advertising
campaigns and their participation.Via social media promotions, corporations target a variety of customers,
including existing clients, prospective clients, current workers, potential employees, writers, bloggers, and
the general public. Social media promotion at a strategic level entails overseeing the execution of a
marketing strategy, monitoring, setting the reach and determining the optimal social media promotional
strategy of an organization.
2. LITERATURE REVIEW
IMS (2007) reported that pharmaceutical companies increasing their spending on promotion with the aid of
various media such as detailing, internet, conferences, lectures, television, etc [7]. In addition, Ernst and
Young predicted in 2009 that the Indian pharmaceutical industry has reached "Pharma 3.0" or one might
claim that the age of health outcome [8]. McDaid and Park (2010) say that 90% netizens from India are
looking for health-related information on internet, with around 70% looking for basic medicine-related
information, with around 30% looking for specific medicine-related information [9]. This data contains
input from patients, sharing of their views, etc. Therefore, businesses stand to receive crucial
customer/patient input by merely listening to patient conversations on social networking platforms and
participating whenever applicable [10]. Ms. GowreeGokhle, Partner and Co-head, Pharma Practice, referred
to section 43A, section 72, section 72A, and section 79 of India's Information Technology (Amendment) Act
2008 as a cyber-legislation of a country that may be deemed applicable in this case[11]. Both sections have
their own benefits, as the liability for breach of secrecy and privacy is found in section 72. Both sections
have their own benefits, as the liability for breach of secrecy and privacy is found in section 72. India has the
Magic Remedies Act 1954, which has only one applicable provision, i.e. clause 4, on deceptive ads that
gives a false perception, directly or indirectly, of the true existence of the drug or whether any false or
misleading information is otherwise present [12].
Companies have to build a business model to incorporate social networks with their promotional campaigns.
D'Andrea et al. (2012) have suggested a social networks-based promotional model (SNeM2S) [6]. The
following measures are included in the model:
• The option of possible social networks to be used (Fig.1);
• Establishing a financial strategy (regarding the recruiting of social media brand managers or
consultants);
• Changing organizational structure for the operation of the company's social network (this could
include incorporating a social media unit to an existing promotional department or establishing a
separate unit of social media);
• Target market(s) selection;
• Selection of the advertised goods, programmes, brand(s) or business messages;
• Social networking campaign success metrics, such as appraisal, data analytics, etc.

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Fig.1 SNem2S Structure
In 2014 almost 4 out 5 of company executives mentioned social media as an important part of their company
[13] Industry retailers saw a 133 percent rise in their due to sales social media promotion. [4] The Like other
sectors, with the incorporation of SMP, the pharmaceutical industry is changing their marketing strategy.
Table: 1. List of Companies Using Social Media Sites
They provide data on new medicines, educate and establish partnerships with patients and healthcare
professionals. Direct-to-Consumer Pharmaceutical Advertisement (DTCPA) is not allowed by many nations
[7] The U.S. and New Zealand are the only countries that allow DTCPA to include product claims.[8] SMP
is also one of the significant outlets for pharmaceutical marketers to meet their product claims stakeholder.

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Fig.2 Advantages of SMP
Advantages of SMP (Fig.2):
Preserve vibrant visibility – Companies need to remain in the limelight if consumers want to notice them
and purchase the goods promoted. Social media promotional services help to secure a continuous and
diverse identity for the company in a more individual and engaging manner.
Successful engagement with Consumers – It is possible to interact with customers in a specific way by
making them know like they are engaging with one of their mates. This improves customer’s brand loyalty
and confidence and therefore there is a chance of customer referral.
Exposure and brand establishing-It has more than 800 million daily followers, social media is a strong
brand building tool. The easiest way to develop our identity and raise visibility is to feature a product on
social media platforms. Social media supports the organization to provide more exposure. It boosts the
business's reputation and sustain a dialogue with prospective clients.
Evaluating authority- Social networking is one of the budget means of creating authority by posting high-
quality information, interacting with customers, evaluating customer opinions, and so on, which can help
maximize the number of your existing customers automatically.
Quality traffic- With the growth in the number of supporters and followers of organizations, influence of
the organizations are increasing and people are beginning to exchange information, blog posts and videos of
organizations. If the sharing of content grows, company website will start attracting more visitor, resulting
growth in revenue.
Gain competitive advantage –SMP is the perfect way to achieve a strategic edge over rivals.

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Table:2.Percentage of consumers viewing health information through social media
Consumers view
%
Health -related consumer reviews
42
Friend's/ family health experiences
32
Other patients' experiences with their disease
29
Health-related videos/ images posted by patients
24
n = 1, 060
Source: PWC Health Research Institute social media consumer survey, 2012
Fig: 3. Doctors are frequent users of internet
Recently, the USFDA released several recommendations on its webpage for the pharmaceutical industry's
use of social media. The guidelines are intended to allow biotech and pharmaceutical companies to
participate in social media interactions more openly (USFDA 2014)[14].Patient education via social media
is an incentive for the pharmaceutical industry to build confidence in the business and to raise customer
perception when choosing a medication. Customers learn information about health, illnesses and recovery in
this manner. It is easy to find details on any drug on multiple social media platforms.
By using the social media landscape in India for its brand of flu vaccine, Sanofi has proven to be one of
India's early entrants. They developed the 'Mothers against Flu' programme, targeting' DigiMoms 'or
mothers who use social networking sites on a daily basis. This helped them define their flu vaccine and
create a target audience. The initiative was initiated on Facebook and a variety of surveys, quizzes and
forums focused on the issue of common flu and flu vaccination were coordinated via this website. To date,
the campaign has generated over 12,000 likes, with more than 3,000 likes in the first month alone [20].
3. RESEARCH METHODOLOGY
This research is focused on exploratory research. The details used in this study is secondary in nature. The
research was planned to capture the following SMP attributes: advantages, potential policy, target group,
usage of capital and effects.
4. CHANGES IN INDIAN PHARMACEUTICAL INDUSTRY
1) Shift in Indian Health Practitioners 'view
These young doctors; who are younger than the age of 30; have different mindsets in the comprehension.
Consequently, they accept social media ads better than most.

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2) Online Connectivity Rises
Social media has been a central influencer and platform for the interaction of patients and health
professionals. Digital media helps spread knowledge about illnesses, provides doctors with eCME, provides
one-to-one contact between doctors and patients, and spans a wide geographical region.
3) Resource minimization for preservation of information
Social networking has managed to lower information storing costs.
4) Market Policy Transition
Because of the latest pricing policies and other regulatory hurdles, the Indian pharmaceutical market is
currently experiencing sluggish expansion. In the long run, though, making a minor improvement in the way
they do business today will negate the impact. From now on, in order to be in the top 10 global markets,
both Indian and international businesses working in India will have to formulate effective strategies.
Any of these methods may be as follows: [15]
In addition, new innovations called SMAC (Fig.4) are expected to play a key role in solving these
challenges: social networking, mobile computing, analytics and cloud computing, enhancing operating
efficiencies and amplifying the efficiency of pharmaceutical firms. [16]

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Fig.4 SMAC
Each of these innovations has a specific effect, complementing each other in order to accelerate the
transition of industry. Innovation, customer support and connectivity can be mutually benefitted by these
developments.
5) E-Patient Emergence -
Patients in India are already looking to get knowledge about the prescription medication on the internet and
social media. The introduction of e-patients is pushing physicians and the pharmaceutical industry to shift
their approach to patient relationship building. Such messages are also only limited to the search and
exchange of information. Patients also use social media to check the cost of care and to complain about
treatment-related insurance coverage.
6) Value chain Holistic Pharma-
A traditional supply chain (Fig.5) for pharmaceutical products begins with raw material procurement and
finishes with post-market monitoring. Social networking synchronises all these stages which results in
consumers being able to profit sustainably. [17]
Fig.5: Pharma value chain
5. CONCLUSION
Social media has become a part of our everyday life and has been used for various uses by a large population
worldwide. It is often used by many companies for the purpose of advertisement. The new age in the
pharmaceutical market is knocking at the door. The triangular partnership is hitting new heights between
physicians, pharmaceutical firms and patients. Online medical consulting is becoming widespread,
according to a study published in The Times of India (2014), of which new choices such as online
appointments, video calls with doctors, and social media expertise are at the highest level [18]. "As quoted
by Inde Gene Lifesystems CEO Manish Gupta, "For pharma/medical companies, social media has become a

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medium that they cannot afford to skip, provided that many patients are going via the Internet these days to
recognize their symptoms and the condition they (or their family members) experience before visiting a
doctor. In order to properly connect consumers and healthcare professionals (doctors) with their products
and services, the pharmacy industry must follow a 360-degree strategy. Such media can be used as a portal
for doctors' knowledge. These knowledge can be used by pharmaceutical marketers to obtain further insight
into the needs of consumers and physicians. This will encourage them to present their items in a different
way and sustain consumer loyalty. In a fruitful and rewarding manner, they can even include data required
for both doctors and patients. There might be some negative aspects of SMP but physicians can identify and
promote the positive aspects of it [19]. By acquiring business and customer perspectives, social media will
make the Indian pharmaceutical industry's consumer-centered paradigm stronger. Thus, social media should
be embraced and made part of their marketing campaign by pharmaceutical firms while conforming to the
regulatory requirements in place.
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