Digg It - Business

What a week for news. First, Jan Thompson, Nissan's VP of Marketing for North America sets the trades ablaze with her assertions that manufacturers are over spending per new vehicle retailed and that the

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

ir timidity in embracing new media is partly to blame.

In the same week, the Harbor report, the industry standard for vehicle manufacturing efficiency, announced in its annual report that Nissan is the

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

Examples of combination products may in

ost efficient vehicle manufacturer, followed by Toyota, Honda, GM, DCX and then Ford. While quality is not part of this report, manufacturer profitability is. While the domestics did well with individual

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

plants (landing 6 of the top 10 spots), the overall picture is what counts. The report goes on to assign corporate losses per vehicle manufactured to each of the these brands. Ford and GM showed signific

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

nt losses per vehicle manufactured, while the others were profitable.

The trades didn't link these two stories together, but perhaps they should have. Thompson points out that advertising per new vehicl

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

Combination pro

e retailed has grown 1378% in the last 20 years while the average sticker price of a new car hasn't grown nearly at that rate. Certainly competition plays a major role. 20 years ago Toyota and Honda were

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

just gaining respect while Hyundai and Kia non-issues. Lexus, Acura and Infiniti didn't yet exist either, leaving most of the pie for the domestics. When competition grows significantly in a highly profi

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

able and prestigious industry, a fight is bound to break out. In this instance, it broke out in the form of markeitng spending.

So how can the industry get this under control? Surely Ford and GM can't s

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

ve their way to a profit, so doesn't reducing the marketing budget sound counter-productive? Well, that depends on how you're spending the marketing budget. This is where Thompson hits a home run.

Just

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

as things have changed in the auto industry in the last 20 years, the media landscape is equally different. See my first-ever blog (below) about the staggering declines in mass media efficiency and also

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

he growth of more efficient marketing channels and you'll see that way people think about marketing budgets has to change. TV is great if you need to talk to 75% or more of the U.S. population. But who n

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

Following aspects would a

eds to do that? Cadillac with its less than 2.0% retail share? Acura with less than 2.0% retail share? Even Dodge with its less than 7% retail share? Hardly.

The solutions are simple, but-oh-so painful

dd to the challenges in developing combination products:

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

s they require a change in the way we think. First, in planning for 2007, I urge marketers and their agencies to plan their media the way the consumer plans its media consumption. For Buick that may mean

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

starting with the 4pm TV news. For Dodge Caliber, that may mean starting with Podcasting and RSS-fed banners. Then, continue to augment and improve the plan the way to consumer further engages themselve

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

in media. To start a media plan by dropping 200 GRPs into 36 weeks and seeing what's left is outdated, inefficient, and frankly, doing yourself and your brand a real injustice.

Second, know the facts a

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

out new media channels. When incremental funding gets approved to bolster a lagging vehicle, the challenge is to get sales up fast. So agencies think to themselves, "To place and produce TV is about a we

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

Professional from academic institutions, pharmaceutical industries, health care indust

k with existing footage, Newspaper can be bought and trafficked in four days..." etc. The fact is that new media channels can be bought and produced as fast or faster than the traditional channels. Such

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

as:

A highly targeted web campaign with flash banners and a microsite can be bought and up in a week. A full SMS/Mobile text campaign can be placed and ready in less than a week Mobile ad banners can

.

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

be produced, bought and served in 4 days In-video game advertising can be produced, bought and up in a little over a week

The list goes on. If marketers and agencies think about the most effective way

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

Companies that provide selfless information through particip

o market their product and the most efficient media with which to do so, they'd find themselves using the channels Goodway 2.0 refers to as "precision marketing" channels far more often than they'd think

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.diggit.org.ua/article/6800/diggit-Are-Automotive-Ad-Spending-and-Corporate-Losses-Related.html">Are Automotive Ad Spending and Corporate Losses Related?</a>

BB link (for phorums):
[url=http://www.diggit.org.ua/article/6800/diggit-Are-Automotive-Ad-Spending-and-Corporate-Losses-Related.html]Are Automotive Ad Spending and Corporate Losses Related?[/url]

Business forms play an important role in any successful organization. They help the business houses in many ways such as conducting day-to-day work smoothly, maintaining good customer relationship, complying statutory requirements, and many other things.

Beer is one of the oldest beverages humans have produced, dating back to at least the 5th millennium BC. Beer is even part of the recorded history of ancient Egypt and Mesopotamia. At the turn of nineteenth century, beer commercials were aired on radio and TV. The critics of beer commercials saw these new mediums as an intrusion into peoples' living rooms. Many were concerned that beer ads might offend the viewers' sensibilities. Commercials that actually showed a person consuming beer were considered to be in bad taste.

Have you ever heard the term; a good use of white space? Often people who do not want to belittle a project or a report will say; well I have to give them credit it certainly is a good use of white space.

Tags

Links

Digg It - Are Automotive Ad Spending and Corporate Losses Related?

Related Articles: