intention of greatly expanding its efforts in this respect. The activities and hopes of other bodies are evident from a study of their programs. CONCLUSION There always are differences of opinion in any professional or business area, but as long as there is a mechanism to discuss and resolve these differences progress is made. In the medical care field such resolution is especially important, since it, more than any other area, currently is the subject of emotional and political pursuit, speculation, and comment. Moreover, this will continue to be so for the immediately forseeable future. It behooves all of us, then, to be certain of the facts when we engage in discussion, and it is equally important for all of us to defend that which is inherently right. When there is room for improvement the necessary change can best be effected by discussing the problems within the confines of the interested parties. Public airing of issues which can only cause confusion at best, and which themselves may arise because of lack of familiarity by the critics with the facts, will in the long run be harmful to those whose objective is the prevention of illness and the care and rehabilitation of the sick. EXHIBIT 34 THE FOND DU LAC STUDY: AN INTENSIVE STUDY OF THE MARKETING OF FIVE NEW ETHICAL PHARMACEUTICAL PRODUCTS IN A SINGLE MARKET, RESULTING IN SOME THEORY OF SCIENTIFIC MARKETING AND SERVICE PROGRAMS FOR ACTION A BASIC MARKETING STUDY MADE FOR THE AMERICAN MEDICAL ASSOCIATION, 1956 By Ben Gaffin & Associates, Board of Trade Building, Chicago, Illinois CONTENTS Foreword. Section I. Introduction to the Fond du Lac study: Chapter 1. Objectives. Chapter 2. Methods and procedures. Section II. Description of the Fond du Lac market: Chapter 1. Fond du Lac as a consumer market and medical service area. Chapter 2. How Fond du Lac physicians keep current on new drugs. Section III. The marketing of five new ethical pharmaceuticals, and what happened to them in Fond du Lac from the product point of view: Chapter 1. The story of Ciba's Serpasil. Section IV. What happened to the five new ethical pharmaceuticals from the market's point of view: Chapter 1. Fifty-five physicians and how they accepted these five new tools. Chapter 2. Thirteen pharmacists and the addition of these five new inventory items to their stocks. Section V. An approach toward a science of ethical pharmaceutical marketing developed from the Fond du Lac study: Chapter 1. The idea of scientific marketing. Chapter 2. The first principle: The reputation of the company preconditions the market's reception of the product. Chapter 3. The second principle: The product determines its own market. Chapter 4. The third principle: The market for the product exists in terms of the physician types who will understand the product, and need it. Chapter 5. The fourth principle: Each physician type has its own motivations, and Chapter 6. The Fifth Principle: For Each Product There Is an Ideal Budget: Falling Section VI. Designing a Scientific Marketing Program for Your Product. (The Fond du Lac Study: An intensive study of the marketing of five new ethical pharmaceutical products in a single market, resulting in some theory of scientific marketing and service programs for action-A basic marketing study made for the American Medical Association by Ben Gaffin & Associates (full text).) FOREWORD The Fond du Lac Study has been sponsored and financed by the American The present study, through intensive investigation of the Is Distribution Still Too Costly? The 1939 Twentieth Century Fund study titled "Does Distribution Cost Too Kuch?" indicated that distribution cost paid by drug manufacturers was the highest of any class of products and that three-fourths or more of the retail price of a drug was going for costs and profits in the various stages of distribution. If one asks today, "Does pharmaceutical advertising still The American l'edical Association, as the most important Pharmaceutical Marketing Research Marketing and opinion research is a new field, which the pharmaceutical industry is just beginning to discover. Yet, although this industry has been somewhat alowor than some other industries to discover its value and uses, there is every indication that the pharmaceutical industry is now learning more at a faster rate about the real possibilities of marketing research than other industries which have been using it for twenty years or more. Yet, the pharmaceutical industry is spending only tenths of mils for marketing research compared with thousands of dollars for laboratory and clinical research. The pharmaceutical industry has recognized the importance and As the pharmaceutical industry learns more about the benefits Send Rosearch Philosophy The pharmaceutical industry is entering into market and opinion research at a sufficiently advanced stage that it can avoid some of the pseudoscientific faɖɔ and escapз so of the faulty generalizations of fledgling research efforts. The Fond du Lac Study can help the industry develop a sound philosophy of market and opinion research. The cornerstom of this philosophy is the appreciation of The Ford du Lac Study shors that there is no such person as - the In studying man, it is either convenient or fashionable some- Dostors Are Individual People Each one of the 160,000 physicians in the U.S. is first and foremost individual human being. He starts in life with a physical make-up including After he finishes his medical school, he seldom or As a human being, he is comparatively quick or com- His human-beingmoss is modified by his being a physician. Safe Generalirations o can safely make a number of generalizations about all human boings human boings, including that they are social animals who are happiest when they have the respect and affection of the people around them. |