1. International Congress and Convention Association iccaworld.com Category E Extra Value: Carol Krugman is supported and selected by ICCA Category E The Meeting Information and Technical Specialists

2. ACS AV Company ALFASOM - Sound & Audio-Visuals Lda. Amlink Technologies Pty. Ltd. Association Global Services SA AV-Teknik Event Engineering AB Bedouk Meetings & Events Media Bosch Congress Rental Network Bosch Congress Rental Network South America Brähler ICS Konferenztechnik International Congress Service

3. CAT Publications CIM Australia CIM Verlag GmbH & Co. KG ConEcon Management & Marketing GmbH Congress & Messe Marketing Int./ AFAG Congress Management Congress Rental Convention Partnership Ltd. COPE International AB Corbin Ball Associates & Tech3Partners

4. Ediman Srl Eurocommunication, a Grouping of European Interpreters Eveni AG events the Magazine for Meetings, Trade Fairs, Incentives Figueras International Seating Gala Systems Inc. Gary Grimmer & Company Gearhouse South Africa GL Events / La Boite A Sons Glenn Garson Consulting Limited

5. Hollandia Publishing Hong Kong Polytechnic University Incentives & Meetings International Incheon Free Economic Zone Authority (IFEZA) Insurex Expo-Sure International Conference Research, Inc. International Destinations Inc. International Meeting Venues Internet Destination Sales System LLC Julie Watterston Associates Le Cordon Bleu Leo A Daly Company

6. Marketing Challenges International Inc. Mastervoice Interpretation Services Meetings Group/Primedia Business Magazines Mohamed Al Geziry Consultancy Munich International Airport News Way Group P G International Consulting Pty. Ltd. P.C. Podimatas Audiovisual S.A. Pacific Marketing Corporation Parthen The Meeting Services Company

7. Shanghai Institute of Tourism Shocklogic Global Ltd. Southern Africa Conference, Exhibition and Events Guide Successful Meetings VNU Travel Network Teletech ConferenceCommunication The George Washington University Int'l Institute of Tourism Studies Thieme Publishing Group TW Tagungs-Wirtschaft/Convention Industry Ungerboeck Systems International Warsaw Destination Alliance

8. International Congress and Convention Association The Pharmaceutical Industry: What’s Happening? Carol Krugman, CMP, CMM Krugman Group International, Inc. St. Petersburg, Florida, USA 44 th ICCA Congress & Exhibition, Tuesday 8 November 2005 iccaworld.com

9. Session Overview Pharmaceutical Meetings Background/overview What has changed/is changing? What does this mean to all of us? What do we do now?

10. Types of Pharma Meetings Open symposia at congresses Closed symposia at congresses Free/standing symposia Investigators meetings (pre-/post approval) Advisory Boards Key Opinion Leaders (KOLs)meetings Local meetings (dinner) Internal company meetings –Marketing, medical, sales, etc.

11. There Will Always Be Pharma Meetings Only way to insure correct adherence to study protocols – compliance, credibility of data Only legal way to communicate product information to MDs prior to regulatory approval Major source of continuing professional education for health care personnel

12. Pharma Alphabet Soup CME (Continuing Medical Education) ACCME (www.accme.org)www.accme.org Accreditation Council for Continuing Medical Education PhRMA Code (www.PhRMA.org/publications)www.PhRMA.org/publications SOX ( Sarbanes-Oxley law)

13. A Tale of Two Pharmas 1985… …2005

14. 1985 New Product Pre-Launch

15. 1985 Costs Covered Weekend Meeting Honorarium/per diem Airfare for attendee + spouse/guest Ground transfers 2 night hotel (5 star) All meals for attendee and guest Golf/other recreation Spouse/guest program Gift

16. 2005

17. 2005 Costs Covered Weekend Meeting Honorarium/per diem Airfare for attendee + spouse/guest Ground transfers 2 night hotel (5 star) All meals for attendee and guest Golf/other recreation Spouse/guest program Gift

18. What Has Caused The Change? Regulatory environment Economy

19. Causes of Change Government regulation –SOX (Sarbanes-Oxley) –PhRMA Code, ACCME guidelines Expense reduction –Procurement and strategic sourcing initiatives throughout corporation

20. CIC Economic Impact Study (September 2005) Corporate meetings/events US$ 40.3 billion (33%)

21. Consolidation Already in effect with regard to corporate travel – airlines, hotelsAlready in effect with regard to corporate travel – airlines, hotels Volume buying, preferred suppliers, master contractsVolume buying, preferred suppliers, master contracts Old relationships may or may not be helpfulOld relationships may or may not be helpful New relationships in flux as definition of “client” shiftsNew relationships in flux as definition of “client” shifts

22. Who is your client today? Who will be your client tomorrow? (Will you have a client tomorrow?)

23. Corporate Planner Salaried employeeSalaried employee May or may not have title of “meeting planner”May or may not have title of “meeting planner” May or may not spend 100% of time planning meetingsMay or may not spend 100% of time planning meetings May or may not outsource to independent planners or othersMay or may not outsource to independent planners or others

24. Independent Planner PCO equivalentPCO equivalent Self-employed individual or owner of own companySelf-employed individual or owner of own company Client base includes corporate, association, other independentsClient base includes corporate, association, other independents Plan meetings 100% of the timePlan meetings 100% of the time

25. Travel Manager Salaried employee or in-house mega-agency implantSalaried employee or in-house mega-agency implant Travel agent backgroundTravel agent background Survived consolidationSurvived consolidation Increasing responsibility for planning meetings (NBTA White Paper on Strategic Meetings Management)Increasing responsibility for planning meetings (NBTA White Paper on Strategic Meetings Management)

26. Procurement Executive Salaried employee Usually in finance department Minimal/no experience or exposure to meetings Objective – save $$ Consolidate and centralize costs Meetings are a commodity

27. “Third Party” Research hotel space/rate availability Present options/recommendations Negotiate contract Receive commission on space/rates No further involvement in program

28. Who Is Your Client?

29. New Entrants/ New Philosophy Preferred supplier lists Minimum requirements to qualify “Bigger is better” Volume pricing Lower margins “Take it or leave it”

30. What This Means Business as usual is no longer business as usual The old rules and relationships no longer apply US and European multinationals in the vanguard – the rest of the world will follow

31. What Do We Do? Understand and embrace the change – it will not go away! Use established relationships to assist in forming new ones Be prepared to change your business model, services and pricing Join/stay current with MPI initiatives and education (www.mpiweb.org) GCCOE white paperswww.mpiweb.org

32. What Do We Do? BE PROACTIVE! Become “PhRMA PhRIENDLY” Know the rules Get creative – go after the new market instead of bemoaning the loss of the old one Explore strategic alliances

33. Questions to Consider What does this have to do with associations? What does this have to do with destinations? What does this have to do with me?

34. Remember Darwin? “It is not the strongest species that survive, nor necessarily the most intelligent, but rather the ones that are most responsive to change.”

35. International Congress and Convention Association iccaworld.com 44th ICCA Congress & Exhibition, Tuesday 8 November 2005 Thank you!