Advice You - Business

By now, you’ve read about estimating media costs in Part I and setting accurate expectations for production costs in Part II

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

. Now it’s time to tackle the notion of paying an advertising agency for its time.

Agency fees can be a confusing concept f

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

or clients who are new at building budgets. Many agencies charge their time separately from hard costs. It used to be that a

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

gencies worked on media commissions. They would charge companies the “rate card” rate for media, and then keep as their fee

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

he difference between that rate and what they can truly negotiate with media partners. As marketers became more independent

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

from agencies, they wanted to track the real cost of media, and hence separate agency fee contracts were born.

Some clients

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

scoff at paying an agency a fee above and beyond the work they create. The reality is that a good agency can be your busine

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

s’ best strategic partner. You can get the thinking of a Big 5 consulting firm for a fraction of the cost. Today’s agencies

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

are more than souped-up design; good agencies will be interested in building your business, and have ideas for you that exte

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

nd way beyond words on a page.

Agencies charge for their time managing, strategizing, and partnering on their clients’ busi

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

esses. The typical cost structure is staff costs plus overhead plus a reasonable markup, for the time the agency estimates i

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

t will take to execute the specific scope of work you mutually agree on. Large agency networks dictate a markup of at least

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

20%, so a well-negotiated price from an agency will be less than that… but don’t forget to compare agencies’ overhead ratios

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

, as some agencies have tonier office space and more extraneous expenses, so total cost will be higher. It might be fun to g

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

to a slick office building for meetings and be wined and dined by agency principles… just know in advance that you are help

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

ing to foot the bill in the name of overhead!

A final word of advice: don’t let the process of budgeting intimidate you. Yo

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

u are capable of determining how much you can and should spend on marketing. Most companies spend 5-10% of annual gross sale

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

, but you can meet your goals on far less, depending on what those goals really are. Once you have a rough idea, an agency c

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

an help determine how much their negotiating power can save you in media and other factors that will help you fine-tune that

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

number. Good partnerships are marked by disclosure on both sides of the table, so share as much as you can with your agency

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.adviceyou.org.ua/article/38304/adviceyou-DIY-Marketing-Budget-Part-III-Why-to-Pay-Agencies-a-Fee.html">DIY Marketing Budget -Part III: Why to Pay Agencies a Fee</a>

BB link (for phorums):
[url=http://www.adviceyou.org.ua/article/38304/adviceyou-DIY-Marketing-Budget-Part-III-Why-to-Pay-Agencies-a-Fee.html]DIY Marketing Budget -Part III: Why to Pay Agencies a Fee[/url]

The telephone is still a key method of communication & thus proper telephone techniques an important part of a top-notch business. On a phone call the only impression a customer gets is that of your voice and the manner in which you speak. In order to project the most positive & friendly image one should follow the simple tips below.

When your business decides to undertake a new endeavor -- whether it's designing a training program, building a new system, or revamping an existing product -- this endeavor is called a project. It involves people, funding, resources, schedules, requirements, testing, deployment, and much more. You may have noticed by now that projects are risk magnets. This article explains six common risks to avoid to help your projects run more smoothly.

Are you one of those people who has just run out of ideas to be successful. You know you should network more but just can't find the time. No more worries. Try these easy steps and put the fun back into your networking.

Tags

Links

Advice You - DIY Marketing Budget -Part III: Why to Pay Agencies a Fee

Related Articles: