In an article published in the May 2007 edition of Pharmaceutical Executive, CoreBrand’s James Gregory and Nicholas Giacopelli suggested that drug firms are missing out on a major “secret” of corporate reputation management.  They assert that investing in robust advertising campaigns will “allow pharma companies to communicate their mission as a company . . . and impact the bottom line.”

Gregory and Giacopelli’s strategic advice is informed by data from an annual survey of more than 12,000 “business decision makers who are active investors.”  CoreBrand asks these individuals to rank a range of drug firms by “familiarity and favorability.”  Using this data and a range of financial information, including revenue and earnings, CoreBrand determines the “percentage of market capitalization that is directly derived from the corporate brand.” 

Overall, CoreBrand’s data suggests that drug firms “[spending] $10 million or more on corporate advertising . . . improved their reputation.”  One key standout is Johnson & Johnson, a company which investors view positively.  According to CoreBrand, the firm spent $90 million on image commercials in 2005. 

Some Drug Firms Already In On The Secret

Although many major pharmaceutical companies do not invest in significant image advertising, a few have launched campaigns designed to showcase their good works over the past year.  Observant readers of major magazines like BusinessWeek, New Yorker and TIME may have noticed an uptick in print commercials touting companies like Pfizer, AstraZeneca and Bristol Myers Squbb as public health champions.

For example, Pfizer has launched the “Working for a Healthier World” campaign, which highlights its efforts to develop personalized medical solutions and disease management programs.  Bristol Myers Squibb’s commercials focus on its work in cancer and feature patient advocates like Sharon Blynn who founded the non-profit “Bald is Beautiful.” 

Actions Speak Louder Than Words

CoreBrand’s analysis is certainly compelling.  There is no doubt that pharmaceutical marketers should consider investing in advertising if they are seeking to improve the industry’s battered reputation.  However, as healthcare communicators are aware, many drug firm stakeholders – especially patients – view image commercials with skepticism. 

Perhaps the most important reason people are skeptical of advertising is because it is only credible when backed up by a company’s actions.  The media is filled with stories suggesting that drug firms put profits over the interests of patients and healthcare providers.  Unfortunately, some companies have exacerbated the problem by failing to respond quickly and candidly to these accusations. 

Deployed on its own, image advertising will never convince stakeholders that a drug company is an ethical and responsible corporate citizen.  Fortunately, there are communications channels available to pharmaceutical executives that – if leveraged appropriately – can build trust and supplement corporate advertising. 

For example, for companies with the institutional fortitude, a corporate non-commercial blog can be one means of increasing transparency and broadcasting its empathy.  With careful planning, the Weblog can be used to respond to crises and showcase a drug firm’s good works.  Aggressive and proactive media relations can also help mitigate crises and blunt the impact of negative news coverage. 

While advertising is a powerful weapon, unfortunately the pharmaceutical industry cannot buy its way out of trouble.  However, when reinforced by a company’s actions, paid commercials can be an effective component of the corporate image marketing mix. 

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