PROJECT REPORT ON STUDY THE PHARMA MARKETING SUBMITTED IN PARTIAL FULFILLMENT OF THE REQURIEMENT OF DEGREE OF MASTERS OF MARKETING MANAGEMENT (MMM) FROM THE UNIVERSITY OF MUMBAI
SUBMITTED BY DHIRAJ SHUKLA MMM SEM V 2015-1
UNDER THE GUIDENCE OF PROF! PROF! A!K A !K SINHA SINH A
N!L! DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH" MIRA ROAD (E)" MUMBAI # $0110$
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DECLARATION
I Mr. Dhiraj Shukla of N.L. Dalmia Institute of Management Studies and Research %S&' &*+ of MMM (Sem (Sem!" decl declar are e that that ha#e ha#e com$ com$le lete ted d this this $roj $rojec ectt on %S&' P*,., M,/+&3 in the academic %ear &'11). *he information su+mitted
is true and original to the +est of m% kno,ledge.
Date- Place- Mum+ai Dhiraj Shukla MMM (Sem !" CERTIFICATE
I Prof. /.0 Sinha here+% certif% that Mr. Dhiraj Shukla of N.L. Dalmia Institute of Management Studies and Research of MMM (Sem !" has com$leted the $roject on %S&' &*+ P*,., M,/+&3 in the academic %ear &'11) under m% guidance. *he information su+mitted is true and original of m% kno,ledge.
Prof. /.0 Sinha Dr. .M. D,i#edi Project 2uide Director
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Organisational structure is the bureaucratic set-up of an institution by which its staff, facilities and other resources are organised in such a manner as to be most effective in accomplishing the purpose for which the organisation is established. A pharmaceutical company as well as its close relatives, proprietary drugs and toiletries companies are complex organisations. Under its roof a team of scientists, technicians and other specialists come together for representing virtually all the sciences, along with the contribution made by the management executives, lawyers, accountants, engineers, system analysts and may other whose abilities and talents maintains the viability of this unique business enterprise. Current scenario demands for a different organiational structure for a large scale pharmaceutical company and for a small scale pharmaceutical company. !arlier we are having a common structure in which there used to be only one administrator and one or two departmental heads. "ut now days when the pharmaceutical companies are becoming gigantic a need for new structure arises. #n the new structure a specialist is needed for every individual $ob because every $ob today demands for specialisation. %he new organisational structure gives us the benefits of specialisation. %his structure can be followed by the company&s manufacturing wide variety of products as well as the company manufacturing single product but distributing widely. 'harmaceutical mar(eting departments are concerned with the process by which medicinal products are made available to ultimate consumer from their point of origin. #ts manager wor(s with the ob$ective of profit through customer satisfaction. After this manager decides the bases by which to groupthe individual $obs .%his decision is much li(e any other classification decision and it can result in groups containing $obs that are relatively homogeneous )ali(e*. %hen manager decides the appropriate sie of group to each superior. As we have already noted that this decision involves determining whether spans of control are relatively narrow or wide. #n the last manager distributes authority among the $obs. Authority is the right to ma(e decision without approval by higher manager. All $obs contain some degree of the right to ma(e decisions within prescribe limit. +hat is needed is an integrated plan for each (ey customer in the context of the company&s portfolio, rather than the traditional plan for each sales force team. %he integrated plan should identify the company&s ob$ectives for the customer, their needs, how to address them and who will be responsible for doing so this will lead the company to identify what type of sales people or teams it needs, what s(ills they should have, what roles they should play, what tools they require, and what system will hold it all together and provide support. #mplementing this strategy requires new processes and technologies for information sharing, which in turn requires a change in organiational structure and the brea(ing down of information silos within the organiation.
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#%OUC%#O A organiational structure defines how $ob tas(s are formally divided in to groups and coordinated. %he new rules of operating in today&s global business environment ma(e structure and design even more critical. %here are five (ey elements a manager needs to address when he designs organiation&s structure. %hese are/ wor( specialiation, departmentaliation, span of control, centraliation and decentraliation. +or( can be performed more efficiently if employees are allowed to specialie. %he essence of wor( specialiation is that, rather than an entire $ob being done by one individual, it is bro(en down into a number of parts/ #n this wor(, manager first decides how to divide the overall tas( into successively smaller $obs. 0anager divides the total activities of the tas( into smaller set of related activities .%he effect of this decision is to define $ob in terms of specialiation and responsibility. Although $ob having many Criteria&s the most important one is their degree of specialiation.
%1! 'O"2!0 Change in the pharmaceutical mar(et requires company to change their approach and business model. #n the part, medical sales forces have mostly called on doctors and other prescribes to sell their product. %his approach is focused on transactions and on increasing share of voice. %urnover among sales representatives is often high, ma(ing it difficult to build relationship with the customer. 3everal representatives from the same company might be calling on the same customer to promote different or the same product, presenting further challenges of coordination. 4or the purpose of our study we had chosen a sample of 56 pharmaceutical companies from top 566 pharmaceutical companies on convenience basis. #n our study, we found that each company is following a different structure )may be functional or divisional* according to sie of mar(eting operations and span of control. As our sampling units were large pharmaceutical companies, we observed a problem that is faced by every 1 manager of these companies and that is of employee turnover. As we went in depth of this problem, we found a reasonof this problem. 'reviously pharmaceutical companies were used to appoint diploma holders, graduates and master degree holders in 'harmaceutical 3ciences for the $ob of 0edical epresentatives because the $ob and wor( demands for specialiation. "ut the employees were paid less as compared to their degree demanded for and as compared to other professionals having the equivalent qualifications but wor(ing in other industries )except pharma industry*. 3o a trend came of quitting the $ob because of wor( and salary dissatisfaction. As a result, the companies facing this problem started appointing non professionals )graduates, master degree holders in any stream* for this $ob and this situation gave birth to the problem of 'harma unemployment on the part of the country. +ith the passage of time, |Page
today a new problem has arisen that the new sales personnel were unable to satisfy the queries of doctors. %his results in the avoidance of 0edical epresentatives by the doctors. %his again discards the mar(eting plans of the pharma companies. %1! !+ 3%UC%U! Above problem can be solved by adopting the new structure that leads to more specialiation. #n fact every structure demands for the specialiation. "ut we are suggesting a bifurcation in the $ob of 0edical epresentatives. +e suggest dividing it into two parts. +e are calling the two new $obs as 0 i.e. 0edical epresentative for octors and 0C+ i.e. 0edical epresentative for Chemists and +holesalers. A. "elow we are showing a common functional structure of a pharmaceutical company.
". 4ollowing to this, we are showing a common functional-geographical structure of mar(eting division, which is followed by any big pharmaceutical company
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"ut this structure is giving birth to some problems which we have discussed above. 3o we are propounding a new structure for the mar(eting division of a pharmaceutical company. %his new structure will be li(e this/
C. ow in reader&s mind some questions will arise li(e/ +hy two separate divisions for mar(eting of products to octors and mar(eting to etailers7+holesalers8 And if these exist who will be recruited
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to these two $obs8 +hether the persons with same educational bac(ground will do both the $obs or the persons with different bac(grounds will be needed8 . %he answer to these questions lies in the following text/ As we have discussed earlier there should be two separate divisions because it facilitates the 0ar(eting 4unction. ifferent professionals will be needed for these two divisions. %heir educational level will be different. 4or 0&s $ob the person appointed must possess a degree or higher in pharmaceutical sciences because their $ob profile demands for pharmaceutical professionals. And they will be paid higher because of their expertise and higher investment on education. 4or the 0C+&s $ob the persons appointed will be diploma holders in pharmaceutical sciences and they will be paid lesser than the above professionals. After the study we have analysed that the above structure will definitely solve the problem of employee turnover on the part of the pharmaceutical company and pharma educated unemployment on the part of the country.
Dire ctor CE s O VP Sales Marketing Mark eting PM Mana T ger Tea m
National Sales Manage Zon r al
Sr. Medical Represent ative / Sales Executive
Reg Hea ion d Area al Manag Hea der Medical Represen tative / Sales Executive
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M, F'9& - S,8+4 , M,/+& - 'harmaceutical mar(eting, sometimes called
medico-mar(eting or pharma mar(eting in some countries is the business of advertising or otherwise promoting the sale of pharmaceuticals or drugs. 0any countries have measures in place to limit advertising by companies. 'harmaceutical company spending on mar(eting far exceeds that of its research budget. #n Canada, 9:.; billion was spent in <66= to mar(et drugs to physicians> in the United 3tates, 9<: billion was spent in <66<. #n <665, money spent on pharmaceutical mar(eting in the United 3tates was estimated at 9
Medical Departent! " %he
0edical epartment groups are a growing vital sector in todays bio pharmaceutical industry in providing hospital consultants, (ey opinion leaders )DO2s*, regulatory agencies and healthcare professionals with scientific and medical information relating to the value and correct usage of the products. 0edical epartment personnel strive for the highest scientific integrity so as to produce successful clinical trials and supply the greatest support for the mar(et. 0edical epartment groups perform many activities often overlapping with sales, 0edical mar(eting, clinical growth, and customer service. 3ales groups may be ill-positioned to accurately present the new product to physicians and quite often need help in ma(ing more expert presentations. 0edical epartment groups might help in developing appropriate positioning for new releases and help to leveraging the newer indications to come. 'harmaceutical companies spend tremendous resources for development of new drug treatments. A great deal of time is spent in doing research on potential health-related products and medicines. +hile considering the distinctions between post mar(eting scientific tests and clinical registration demos, medical epartment can fill the requirement for the studies done post approval.
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0edical epartment acts as the central focal point for different therapeutic areas of sales, mar(eting and research. 0edical epartment is the ma$ority of credible lin( with external sta(eholders and also play a progressively more important role in communicating the product or service value message to physicians in an ob$ective and ethical manner. %hey provide assistance in dissemination of technological information regarding current products to regulating agencies and healthcare professionals. %hus 0edical epartment play an important role in establishing appropriate positioning for new items and help to help leverage the newer indications in the future. III.
Manu#acturing Departent! " rug
manufacturing is the process of industrialscale synthesis of pharmaceutical drugs by pharmaceutical companies. %he process of drug manufacturing can be bro(en down into a series of unit, such as milling, granulation, coating, tablet pressing, and others.
IV.
Research and Product Development:
Research and Product De#elo$ment hel$ing clients +uild the R8D ca$a+ilities needed to dri#e inno#ation9 im$ro#e $roducti#it% and $erformance9 and de#elo$ successful $ortfolio and ass et strategies
Support Department: - *he
De$artment of Pharmaceutical Ser#ices $ro#ides com$rehensi#e $harmaceutical care ser#ices to Research9 Purchase9 Logistic9 2ra$hic designing9 :inancial9 ;ualit% and om$liance9 and
The main department sales and marketing can be further divided into to as ! ". $.
#arketing and P#T team Sales team %field staff&
".
#arketing and P#T team: It's a thinking brain of an( Parma )ompan(
Development of strateg(
*rand Development and *randing
Promotion and #arketing strateg(
Decision making
+e brands ,aunch or ithdraal of a n( brands
#edia Planning
Training
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*rand Proection
%he role of a product manager is challenging, complex and often misunderstood. Across the high-tech industry, the Bproduct managerB title is used in many ways to describe drastically different duties and responsibilities. iverse interpretations regarding the role of the product manager have created an untenable situation for some, who therefore struggle to define their own role. 'roperly defining and structuring the roles and responsibilities of the product management team would enable the team members to be more efficient and productive, leading to better revenues and higher-quality products that meet customer needs. %he product management team is a tas( group that organiationally resides in the 'roduct 0anagement department and has four distinct roles/ product planner, product mar(eter, sales engineer and mar(eting communications )marcom* manager . $.
Sales tea $#ield sta##%! Once
the sales plan has been formulated, the next logical step is to organise a sales force to achieve the enterprise ob$ectives. ecisions must be made as to the type of sales tas(s required to be performed and as to how the sales people should be grouped together to ensure effectiveness and efficiency. %he scope of their sales responsibility, line authority and accountability must be defined so that the sales activities can be well coordinated. #n this unit we shall discuss> the basic types of organisational structures and territorial designs that are used to define wor( relationships between sales personnel and their superiors
&'e( generates sale )( eeting t'e custoers
Strateg( *pleenters
E(es and ears o# t'e copan( in t'e #ield
Sales +ro,ection- &erritor( pro,ection
2) Pharmaceutical Product Marketing and Sales
#t is now generally accepted that the sales force arms race has come to an end and that the pharmaceutical 3ales model needs to change. Eet, understanding how it should change in the future, (nowing how to facilitate that change, and determining the impact of that process on the organisation still eludes most companies. 0any have ta(en the approach of simply cutting bac( resources and re-labelling some representative roles as Faccount managers&, only ma(ing the most superficial of ad$ustments to their operating models. 0ore far-reaching solutions are needed. Complexity arises from the fact that there is no single Fnew model& solution> the right sales model has to be selected to fit each organisation&s situation. 'harmaceutical companies usually face at least one, if not more, of three common issues that trigger an urgent need for a sales model restructure. 3ome find themselves in the difficult situation of suffering from all three simultaneously. 11 | P a g e
Pharmaceutical professional belong to an extraordinary class.
Healthcare professional ob is uni!ue" special and re#arding.
$ne is engage in healthcare business for"
%mpro&ing the o&erall !uality of life of people around" ser&ice the customer ' doctors by gi&ing them latest medical information
Present before them logical prescribing alternati&es
(acilitate continues medical learning.
octors all o&er the #orld agree" they depend on Medical etail men for a big portion of latest medical information.
Types of selling
Selling can )e classi#ied as! *onsumers selling and H+,8&*9,+ Selling
medical services. a) *onsumer selling
)% Healt'care selling
Custoer
+'araceutical selling is an indirect selling
One prootes a particular product to a doctor 'o identi#ies t'e need o# t'at particular product to a particular patient and prescri)es t'e sae 'ence- a doctor )ecoes a custoer and patient )ecoes a consuer.
Siilarl( t'e c'eist 'onors t'e prescription raise )( t'e doctors and t'e stockiest suppl( t'e stocks to t'e c'eist 'ile t'e C 0 1 agent 'o 'old t'e stoc k on )e'al# o# t'e copanies.
2'o is t'e custoer3
A customer is that person who ma(es a decision pertaining to the usages of a particular product 7 services among the several options available %he customer may or may not be the consumer of the product 7 services
A great customer experience strategy focuses your efforts and resources where they will have the most impact for your business. Eet too many pharma strategies for customer experience fail to focus these efforts in any meaningful way. oing everything for everyone is not a strategy that wor(s. The six pillars of customer experience for pharma •
4ocus your customer experience strategy on a specific subset of customers in a particular location
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#n#est in onetoone =ualitati#e studies9 instead of focus grou$s9 =uantitati#e studies9 and
•
large sam$le si>es Design e?$eriences +% making ne, things9 testing them ,ith customers9 and re#ising
•
them until the% ,ork Measure ,hat matters9 and not ,hat is eas%@ that means customer e?$erience =ualit%9
•
and its eAect on sales
•
e?$erience eAorts are not in #ain Make it C0 to fail9 +ecause e#en the +est ideas can turn into failures9 ,hich in time
•
+ecome +uilding +locks for success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
The customers for pharmaceuticals +usiness are ! ! !
D9&4 (* ,4+ &*+ 6+496&) C*+.4& (* *4 &*+ 6+496&) S&9/4& (* 4'668 &*+ 4&9/4 & &*+ 9*+.4&)
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C, , <@, ,+& (* *8 &*+ 4&9/) P,&+&4 , ++,8 P':89 < OTC 6'9&4 (* 6'9*,4+ , 94'.+ &*+ 6'9&4)
$&er,the,counter -$T*) drugs are medicines sold directly to a consumer without a prescription
from a healthcare professional, as compared to prescription drugs, which may be sold only to consumers possessing a valid prescription.
ifference bet#een pharmaceutical selling and other consumer product
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) Pharma istribution *hannels
%he #ndian rug and 0edicine etailers i.e. Chemist operate on the following system. 1 | P a g e
%he retailers purchase drugs from the stoc(iest and sub 3toc(iest.
%he chemist gets the margin of approximately <6 on the 0'.
%he net profit for the retailers is aprox. :< -:= .
%ndian Pharmacy Standard $perating Procedure
%he stoc(iest in turn purchase the goods from the 3uper 3toc(iest or C4 agent or the istributors.
%he stoc(iest are appointed by the 'harma co. and is approved by the 03CA. ) 0aharashtra 3tate Chemists G ruggists Association *
%he stoc(ist earns a margin of :6 on the retailer&s price.
%he sub stoc(ists are the stoc(iest which are not appointed by the 'harma co.
C4 agents in turns get the commission ranging from :.5 to = on the total turnover.
%he C4 is appointed by the Co. or many times the Co. itself acts as a C4 at least in the 1H. %erritory. All the stoc(iest, 3ub stoc(iest and the retailers )Chemist are the members of called 03CA )0aharashtra 3toc(iest and Chemist druggist association* in 0aharashtra while at all #ndia level A#3CA
/) 0ob profiled of Healthcare Sales 1xecuti&e Medical 3epresentati&e
-M3) 0edical sales representatives )widely referred to as reps* are a (ey lin( between medical and pharmaceutical companies and healthcare professionals. %hey sell their companys products, which include medicines, prescription drugs and medical equipment, to a variety of customers including I's and hospital doctors, pharmacists and nurses. %hey wor( strategically to increase the awareness and use of their companys pharmaceutical and medical products. 0edical sales reps are usually based in a specific geographical location and specialise in a particular product or medical area. %hey may ma(e presentations and organise group events for healthcare professionals, as well as wor(ing with contacts on a oneto-one basis. Typical #ork acti&ities
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#n any setting, the process of selling involves contacting potential customers, identifying their needs, persuading them that your products or services )rather than those of competitors* can best satisfy those needs> closing the sale by agreeing the terms and conditions> and providing an after-sales service. 0edical sales representatives do all of this and more. uties often include/ • •
• • • • • •
• •
• •
• • • • • •
Arranging appointments with doctors, pharmacists and hospital medical teams, which may include pre-arranged appointments or regular cold calling> 0a(ing presentations to doctors, practice staff and nurses in I' surgeries, hospital doctors and pharmacists in the retail sector. 'resentations may ta(e place in medical settings during the day, or may be conducted in the evenings at a local hotel or conference venue> Organising conferences for doctors and other medical staff> "uilding and maintaining positive wor(ing relationships with medical staff and supporting administrative staff> 0anaging budgets )for catering, outside spea(ers, conferences, hospitality, etc.*> Deeping detailed records of all contacts> eaching )and if possible exceeding* annual sales targets> 'lanning wor( schedules and wee(ly and monthly timetables. %his may involve wor(ing with the area sales team or discussing future targets with the area sales manager. Ienerally, medical sales executives have their own regional area of responsibility and plan how and when to target health professions> egularly attending company meetings, technical data presentations and briefings> Deeping up to date with the latest clinical data supplied by the company, and interpreting, presenting and discussing this data with health professionals during presentations> 0onitoring competitor activity and competitors products> 0aintaining (nowledge of new developments in the ational 1ealth 3ervice )13*, anticipating potential negative and positive impacts on the business and adapting strategy accordingly> eveloping strategies for increasing opportunities to meet and tal( to contacts in the medical and healthcare sector> 3taying informed about the activities of health services in a particular area. 0a(e confident efforts towards improving services to customer %o provide regular feedbac( to the company and the superiors on all the happenings in the field, regarding Competition 0ar(eting 15 | P a g e
• 3ocio-economic condition
4eed of Medical 3epresentati&e -M3) ' Sales 1xecuti&e • 'harmaceuticals 7 1ealth care !thical product cannot be promoted directly to patients through mass media - adio, %J, 'rint • ue to stiff competition the customer has to be met and persuaded frequently so that he begins, continues and increases the use of our products.
5) Pharma Products Marketing and Promotions
'harmaceutical industry is one of the most organied conditions of a patient industries in #ndia, employing a large number of professionals in all areas of operations. Pharma Promotions6 %he 'harma 'romotions or the mar(eting strategy is focused on the following level
,) 1xternal *ustomer :. <. K. =. 5.
octor level Chemist 2evel 'atient level 0asses level 'ac(aging 2evel
:) I&+,8 C'4&.+4 :. 3ale team level
16 | P a g e
@. 'rice level 2) octor le&el %ype of octor- %arget Customer Type of octor
Type of the patients ser&ed by the doctors
I' )0""3 or on 0""3*.
Urban or ural 'atient
3pecialist or super specialist class
!conomical 3tatus L Upper class or 0iddle
#ndependent practitioner or
Urban wor(ing class or "usiness class patient
Attached to hospitals )Iov or 'rivate*
'hysicians or 3urgeon
+ell read and aware of 2atest trend
Promotional 7id used for octors
%he ob$ective to promote 'harma brands to the octors is to get their prescription 0ost commonly used promotional tools to promote 'harma products to is as follows,
doctors
17 | P a g e
i. ii. iii.
4isual aid x. Catc' cover 5iterature xi. 8ournal 6i#t advertise articles ents iv. +rescripti xii. on pad Re#erenc v.8e&el 575 ) *hemist es vi. what Stickers Understand type of the chemist is xiii. +articipat +hat type he is serving )octors and 'atient Class* vii.of customers Clinical ion in trials promotional tools to promote 'harma products to doctors 0ost commonly used S(posi is as follows, uviii. +'(sician "onus offer Medical s Chemist 4older con#eren Saples 3tic(ers ces and ix. +osters CME Chemist 2"2 )Jernacular 2anguage 'osters xiv. *nvolve ent in Iifts 7rand /) Patient le&el launc' 'atients are targeted indirectly for brand promotions and %he best time to divert the patient&s attentions is when they are waiting in various consultancy for their turn. ot'er %ools used for patients promotions> #ield 'atient !ducations literature activit( 'osters xv. Sponsors 0edical Camps 'ips &' | P a g e
5) Masses le&el
'harma products which can be promoted at mass level includes>
O%C drugs- Asprine, #dex, 0ove Crocine, Corex, 3ugar free
4ood 3upplements - 'rotein 'owder- 1orlics, "oost etc
%onics 7 Chavanprashs - "aidanath , Mandu etc.
eutraceuticals L Calcuim 3andoe
1erbal 0edicines L 1imalaya 'roducts
%ools used to promote O%C products through 0ass 0edia advertisements are,
adio
%J
'rint - ews 'aper, 0againes etc.
0ailers
#nternet 0edia - !mails , website, "logs
9) Packaging le&el
'ac(aging is important not only to promote O%C products but also ethical promotions.
'ac(aging serves four purposes
%o protect the inside products from 'hysical, natural , environmental and chemical damage
%o attract the customers
%o build the perceived value of the products
%o build customers trust on the products.
:) Price le&el
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'romotion at price level always carries a ris( when the competitors reduce their prices.
;) Sale team le&el
3ales team is the most important lin( between the company and the customers.
#t is said the sales team is the eyes and the ears of the company.
3ales team are burden with more then <6 L K6 products.
uring the launch campaign one must convinced and motivate the sales team regarding the new brand.
%ools used to motivate the sales team
i.
Jarious competitions at egional, Monal and national level.
ii.
4irst 'rescriptions , 4irst 5 prescriptions or maximum prescriptions in a stipulated period
iii.
2aunch gifts to the sales team iv.
Jarious field activity involving the doctors li(e "rand launch in a particular area, C0!, 0edical camps etc. 9) Product Mix
%he complete range of products present within a company is (nown as the product mix. #n any multi brand organiations, there are numerous products present. one of the organiations wants to ta(e the ris( of being present in the mar(et with a single product. #f the company has only a single product, than the demand of the product will be too great or the company does not have the resources to expand the number of products it has. 'roduct mix L As explained, product mix is a combination of total product lines within a company.
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'roduct mix means selling the right product in right quantity at the right time to the right customer.
A successful 1ealthcare sales professional will sell all the products and achieve his targets
3ales professional who sells the product mix can achieve his rupee value target but, sales professional professional who achieves achieves his rupee rupee value target target may not not achieve the product mix. mix.
#t ensures protection against changing mar(et values Deeps the right profit margin !nsures optimum utiliation of company&s distinctive technical (now-how and production production facilities
!nsure continuous supply of the (ey products in the mar(et at all times
3tri(es perfect balance between the quantities of goods produced and sold.
1elps company to stri(e an ideal balance between high margin and low margin products
'rovides a balance between old and new products
'rovides right direction for growth.
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:) Promotional 7id Promotional 7id
0ost commonly used promotional tools in the pharmaceuticals industry are
9.
4isual aid
:.
5iterature
;.
6i#t articles
99.. 99
Catc' cover
<.
+rescription pad
9:.
8ournal
=.
575
>.
1lier
?.
7roc'ure
Visual 7id
@.
9B.
+'(sicians Saples
advertiseents 9;.
Re#erences
9<.
+articipation in
Stickers
S(posiu.-
Jisual Aid or JA as it is commonly (nown, is a spiral bound material with Medical photo- mount mClinical ount stand stand there are several several laminated page s with product messages . trials
Advantages of JA/
con#erences
!nsure attention of the customer, the picture and messages printed on it are to and CME attract the customer&s attention you can point out relevant portions on the pages and deliver the detailing story. %his ensures Audio- visual presentation. %he 9=. doctors Nsees and Nhear at the same time. 7onus o##ers
1elps to create audiovisual audiovisual impact, communicate message to doctor in a logical sequence
1elps to discuss many product at a time
1elps to s(ip the detailing of products not meant for a particular specialty
Jery effective communicating tool
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8iteratures and *ompetitors 8iterature
2iteratures/
A good input for detailing particular product in terms of prescribing information, dosages, adverse reaction features, benefits, contraindication etc.
Competitors Competitors 2iterature/ #t helps to convey the promotional message of competitors to the doctors. %hrough indication and variations references we can pass information to 1.O. so as to develop counter attac(s
8ea&e behind card ' 8iterature 8iteratu re -8+8)
1elps doctors as a reminder for our product, in our absence. "ut it must be detail at the time of presentation
2"2 is not meant for mass distribution, it is targeted towards the potential target audience.
2"2 give specific information on the service or product.
Any literature which is given in person to the potential client e.g. 0 gives the literature to the doctor after his7her sales presentation.
%hese literatures are not ta(en bac( by the 0 but it is leaved behind so that the doctor in his leisure time can go through it.
'ractically, the paper used for 2"2 printings is above :;5 I30 and mostly it is a = colour $ob.
(lier
Any literature which is distributed to masses i.e. for mass distribution.
%he flier is usually used to pass on the informations for the masses, sp. #nfo on some event venue, tel. no. etc.
%he fliers are usually distributed at the railway station, some local fair or some event or distributed by putting it in the news paper.
'ractically the paper used for flier printings is less than :66 I30, mostly P6 I30 maplito paper, may be one colour < colour or = colour $ob.
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+rochure
%his literature gives the in-depth (nowledge of the service 7 product targeted to the potential client.
'ractically it is more the = - @ pages
0ostly all pages are bound together either simple binding or bac( to bac( pasting !ach page is about :;5- <66 I30 )I30 is an acronym standing for FIrams per 3quare 0eter* if it is a simple binding or for bac( to bac( pasting :56-:;5 I30.
*atch *o&er and Physician Samples *atch *o&er=
%his tells you about the product details, composition, colour, manufactured date, expiry date etc.
'hysician 3amples/
3amples enable doctor to assess the physical characteristics of our product
%o assess the efficacy of our products in various s indications
As a reminder
%o fulfill the doctors need for his patients, family members or himself and friends
>ifts
Iifts helps to express our gratitude for the support of doctors, which he is extending to our products
%o enhance the recall value of our product
%o convert doctors prescriptions of competitors brands to our brand
Always give value to the gift by presenting it nicely and never convey the real value of the gift to the doctor.
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+onus offer
#t ensure better stoc(ing of our product at the retail counters
#t generates enthusiasm amongst the retailers
#t ta(es care of increased prescription demand you have generated for a particular product. 3ometimes helps you to boost sales. +ith bonus offer you must sale at least <:7< times more compared to your normal sales.
Stickers
#t is used mainly as a medium for remembrance
%he stic(er ensure that products name is visible from the walls or from the place where the doctors can read the name
on&t put stic(ers where there is already hundreds of stic(ers are stuc(
3elect a proper place where your stic(er can be easily visible, eye level to the customer
emember, before you put stic(ers> get the permission from the doctors to do so.
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?) etailing
etailing refers to the activity of pharmaceutical sales representatives )reps* when they ma(e calls to physicians and provide them with BdetailsB -- approved scientific information, benefits, side effects, or adverse events -- related to a drug. 'harma sales reps were once called Bdetail men.B %hese days, however, sales reps are as li(ely to be women as men. BetailB means that part of an in person, face-to-face sales Call during which a 3ales epresentative, who is trained and (nowledgeable with respect to the applicable 'roduct, including its label and pac(age insert, and the use of the applicable promotional materials, ma(es a presentation of such 'roduct to a medical professional with prescribing authority. +hen used as a verb, BetailB means to engage in etailing activities. etailing is a preplanned effective communication activity done by pharmaceutical companies to educate physicians about products and to influence physician to prescribe company&s products. #t is an integral part of personnel selling which is thoroughly rehearsed, memoried and practiced so that when heard it sounds as its coming as one&s own tal( about a product )li(e an actor in films or stage* Although script is written by someone else )product manager* %here is difference between 'lain communication G detailing .'lain communication cannot create customer interest. "ut when we details we actually advertise the product to particular customer to induce them to buy or prescribe .etailing is one of the most important tool of 'harmaceutical 0ar(eting and advertising. 'harma sales representatives were once called Bdetail men 4or e.g. approved scientific information, benefits, side effects, or adverse events related to a drug are parts of detailing. etailing involves a story or script that highlights the relevant points to doctors7customers to an extent that he starts prescribing etailing has to be perfect and an ideal mixture of scientific information, quality of products and manufacturing techniques used %o provide more mileage in short time.
etailing is a presentation of selling points in the most logical sequence to the customer
3ales promotion, sales presentation, sales interview are the other names of detailing
"asically detailing means the communication of your message to the customer to increase the sales. &6 | P a g e
$becti&e of etailing
etailing is one of the most important tools in pharmaceutical mar(eting and advertising. %here is a subtle difference between plain .communication and detailing. +hen we detail, we are actually advertising the product to a particular targeted customer, to induce them into buying or prescribing it. #n todays scenario no one would buy a product until he or she is totally sold to itQ etailing is basically an integral part of personal selling which is thoroughly rehearsed, memoried and practiced to an extent that when it is heard, it sounds as if it is coming out of ones own tal( about the product. )!xactly as an actor acts on stage or in films*. !ven though the script is written by someone else )usually the 'roduct 0anager*, it loo(s as if it is the 0s own.
%o ma(e the product (nown to the doctor, but its purpose is to create a !! and +A% in the mind of the doctor %his step is technically (nown as Ncomprehension of the product to the doctor with a view to generate an urge in his mind to prescribe the product 4ace-to-face promotion is the dominant promotion tool for pharmaceutical, medical equipment and biotechnology companies. 1owever, there is a growing level of discomfort with the current selling model. #t is incredibly expensive And inefficient. 'hysicians don&t li(e it much. At a time of increasing economic pressures, companies are putting heightened scrutiny on the economics of their selling processes. #nvestigating new concepts, they find an abundance of new technologies and options. "eing blinded by the latest technological bells and whistles and $umping on the next bandwagon would be an easy, but potentially costly, mista(e to ma(e. %his article helps pharmaceutical executives sort through the various options. #t provides a framewor( to put alternative approaches into perspective, investigating the following (ey questions/ +ill there be a dominant approach among all these models8 +ill traditional ways of promoting the products be replaced8 and if so, how8 #s there a first mover advantage, or should we wait until salient models emerge8 1ow steep is the learning curve8 +hat issues and trade-offs need to be considered in selecting promotion channels and optimiing resources across the communication mix8
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Principles of etailing
2ogical and sequential presentation
2ogical build up of selling points
4astening the minds of the customer
1ammering the (ey points
Iiving proof for all statements whenever needed.
*ontents of etailing
0edical detaining is the conversation between the doctor and the 0.
#t is a dialogue and not a monologue.
%he 0 builds the discussion with doctor on>
ame of the product N"A,
#ndication in which the product is advocated
"enefits that the product can offer to the patients
etailing should be clear, concise and logical and it must be enlighten
etailing should contain the following/
+hat the product is8 )"asic 'roduct*
+hat it is used for8 )#ndication*
+hat it will do8 )Action*
1ow it is better8 )Comparison*
+hat are the benefits8
%hus medical detailing consist of 'roduct 'resentation and 0otivation or 'ersuasion
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3eason to adhere to the detailing stories or memories detailing
1elps to transfer the ideas from your mind to the minds of customer clearly
Covers all the point
#t is complete
#t is in logical order, drives doctor from one point to another
3ales executive can spend time on voice modulation and delivery of detailing
3aves time
Iives confidence
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etailing should be= Complete, Clear, elivered with confidence, Conviction, !liminate the competition, and should follow the NA#A )Attention, #nterest, esire, and Action* principle etailing se!uence
i.
%he pre approach
ii.
%he approach
iii.
%he name of the product
iv.
%he Nyou benefit
v. vi.
%he building of confidence %he proper close
%he pre approach/
%he stage of collecting specific information of customer before actually calling on him
%he approach/
Ioing near to your customer using A#A principles and ma(e your call effective
%he name of the product/
0ention your product name time and again to the doctor as it help in registering the brand name in customers mind
%he Nyou benefit/
1ighlighting the benefits of the product for doctors and his patients.
octor always appreciates if we tal( from patients angle and not from the angle of the company
%he building of confidence/
1ow confidant you are about yourself, your product and company.
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%his confidant will get transform into building up doctor&s confidence and therefore Ob$ection handling become easier, this is the (ey to success
%he proper close/
%he close is nothing but whether you have made any impact on doctor or not.
%he impact can be measure in terms of sales
Close the call with the prescription demand is a must
Always close with a statement such as - Noctor 0ay # get at least 5 prescription in this wee( from you so your patient will benefit from our product @
+asic structure of a sales presentation
i.
Opening
ii.
Iet attention
iii.
Create interest and sustain it
iv.
'resent benefits
v.
emonstrate
vi.
4eedbac(
vii.
1andle ob$ection
viii.
Close
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AB)
Handling a Visual 7id and 7rt of sampling
Visual 7id acts as the first impression of any pharma company.
#n handling JA the first thing remember is that detailing is an art, and has to be done with lot of care and conviction.
Care means lot of practice and Conviction means with emotion.
#mportant points on how to handle JA/
i.
2et the doctor sees the visual and text matter
ii.
on&t hurry and turn pages
iii.
As( for doctors comments on some special points
iv.
Iive brief pause between one product and another
v.
1andle JA gently and with care
vi.
3ound confident while ma(ing claims. 0odulate voice, articulate clearly.
vii.
Control speed of your speech.
viii.
Iive emphasis to points printed boldly
ix. x.
Always use a pointer )pen is the best pointer and easily available* o not run the pointer, use it only to point
xi.
1old the JA at appropriate distance so that doctor can read it properly
xii.
#f doctor ta(es the literature from you and starts reading, do not disturb him let him complete it. o not interrupt him. 34 | P a g e
7rt of sampling
!very companies give adequate samples to their sale steams but it is an individual who ma(es the difference with these samples in generating prescription
i.
#t is advisable to use these samples in a $udicious way to create an impact in every visit.
ii.
istribution of samples with demonstration is a very important aspect of our $ob instead of $ust (eeping samples on doctor&s tables.
iii.
Always remember that you should arrange the samples on the doctor&s table in such a way that brand name and important features face the doctor.
iv.
ever (eep the samples by telling that Nhere are few samples instead, always tell that N this product you can try on your next patient suffering from RRRRRRRRRRR )condition*
v.
Always demand prescriptions when you (eep the samples
vi.
Use demonstrating technique to ma(e your product stand in doctor&s mind.
vii.
Always demonstrate colour, scoring taste, smell etc AA)aily Sale call planning
Planning
'lanning/
'lanning can be defined as the ability of loo(ing ahead.
#n other words, planning is the thin(ing process, which helps us to anticipate our ob$ectives of tomorrow and the tactics we will adopt to ensure achievements of these ob$ectives.
+hen to plan/
'lanning has to be done in advance.
%he right time to plan is the previous night for the next day&s wor(
1ow to plan8 3 | P a g e
4oundation of every plan is (nowledge and information
+e must (now/ i.
+hat we are selling )'roducts*
ii.
%o whom we are selling )Customer*
iii.
Against which we are selling )Competitors*
1ence we should (now our product, customer and competitors.
"efore planning we should have prescription habits of customers )our 7 competitors* the specific day they meet, what was the discussion in earlier visits, any specific requirement we have to satisfy.
Always refer to your dairy when you plan.
+hile planning you has to effectively utilise the (nowledge and information we have.
3et the ob$ectives for the day and each call.
Eou can ta(e the steps given below )under the heading N+rite down the following things in daily call companion* when you write down your plan.
%his will help you to minimise your mista(e you may ma(e at the same time reduces the deviation in your wor(.
Always plan for whole day )morning 7 evening* instead of planning for only one session.
Always plan little more calls so as to reach the ob$ective you desire.
Arrange the samples and inputs in a proper way i.e. last call samples will go to the bottom and first call sample will be at the top.
Carry a small nap(in in a bag to cover the samples.
"efore you enter doctor&s clinic 7 chamber, (eep the samples above the nap(in so that you are not confused inside the chamber.
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ehearses the tal( in the mind, which, you are going to have with doctors.
ay and date
Area to be wor(ed.
octor&s name and speciality in a sequential order i.e. the order in which you are going to call on them.
'roducts to be detailed in a sequence.
3amples to be given.
Any other promotional inputs to be given
Any other thing which you have promised the doctor earlier.
ames of the chemist and 'O" ob$ective
ame of the stoc(ist boo(ing 7 collection ob$ective.
ames of the institutions.
Post calls analysis
Analyse every call immediately before you call on the next doctors.
Eou have to analyse the things done well and things not done well so that you can ta(e immediate corrective measures.
a) Things done #ell=
+hich statement arouses doctor&s interest li(e promotional message, indication, dosage etc8
etailing story.
'articular strategy
b) Things not done #ell=
%he mista(e made in your detailing. 35 | P a g e
Any ob$ection not handled properly.
Any wrong statement about the competitors, which he has not li(ed.
%o ma(e you more effective plan the wor( and wor( the plan.
A2)
Tips for becoming a successful Sales 1xecuti&e
what the doctor gains?
%ips for becoming a successful 3ales !xecutive )0*
%o become a successful 1ealthcare !xecutive one must follow and understand the following four (eys>
A. 1ow to increase the business by meeting the doctor ". %he (ey factors to become a successful 3ales !xecutive )0* C. +hat you should (now before going to field8 . Hualities of a successful 3ales !xecutive )0* 36 | P a g e
A* 1ow to increase the business by meeting the doctor
0 shall meet the customer repeatedly and periodically to promotes the company&s product, by (eeping K NUs of products in mind.
i.
Usage of product
ii.
Uses of product
iii.
Users of product
i * Usage of product/
Customer should use the product more often
!.g. Moxicillin is being prescribe by one doctor frequently may be in one indication e.g. U%#s.
ii* Uses of product/
Customer should use the product in variety of indications more frequently
!.g. Moxicillin is being prescribe by a doctor frequently in many indication e.g. U%#s, %#s, 3(in and soft tissue infections etc.
iii* Users of product/
%otal number of customer who can use the product should continuously increases.
!.g. today only one doctor is prescribing Moxicillin in a territory, tomorrow it should be :6 doctors and so on and so forth.
+) the key factors to become a successful Sales 1xecuti&e -M3) , *ore *ustomers *ore *ustomers=
#dentification and quantification can be made and continuously update with help of
etail surveys
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4ind out who are the potential prescriber
+hat is their capacity to prescribe a particular product or brand.
Always remember that <6 of the total customers in the territory give an P6 of the business
1ence these <6 customer become the core customers not only to our company but also for many other companies.
!nsure the core customer for a particular product or brand must write at least that product or brand in more quantity.
Ob$ective is to continuously increases and upgrade core customer&s list by converting
*)
Understanding the product well
+hich product you are going to sell8
+hy you want sale8
%o whom are going to sell8
3election of ight customer for right product
2) Your customer:
Hualification
3pecialty
Class of patient - middle class 7 upper class
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%ype of patient e.g. male, female, adult, child, young, old, rich, poor etc.
+here he is practicing- ural area 7 Urban are !lite area.
%ype of practice - 'rivate practice, Iovt. 1ospital, "ig 7 small 1ospital, Attachments
Jisiting %ime L for patients and for 3ales !xecutive
) Eualities of a successful Sales 1xecuti&e -M3)
Iiven below are few qualities which every 0 must possess>
i.
3hould be sincere and hard wor(ing
ii.
0ust have power to grasp the technical aspects of his products as well as that of competitors
iii.
0ust have (nowledge about his customers habit, potential desires and behavioral patterns
iv.
3hould ta(e initiative to learn about the competitions activities for efficient and logical handling of the ob$ections
v.
0ust understands the selling features, benefits of his products
vi.
3hould have the ability to analyses and correct his mista(es.
vii.
1e must continuously secure guidance from the superiors without any hesitation
viii.
3hould be clear about company&s mission, ob$ective and clear perception about a particular products for selling to a particular customer
ix.
!xcellent human relationship with doctors, chemist, stoc(ist and colleagues to ensure their full co-operation in establishing the product
x.
4oresight to maintain adequate stoc(s of his product with the stoc(ist and chemist
xi.
'romptness in handling all quality complaints diplomatically in the field or in the territory.
xii.
2oyalty and integrity in continuously improving the image of the company
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xiii.
!nthusiasm to participate in all special assignments, sales competitions and training programs.
xiv.
%he capability to of increasing the sales of the company s products to the level desire by the company.
xv.
'leasing personalities with neatly dressed, shine on shoes and smile on face. Ownership feeling towards company&s property.
xvi.
3hould have positive attitude, s(ills and (nowledge
xvii.
3hould be honest in his day-to-day activities.
xviii.
0ust complete the sale by ensuring the inflow of payments on time.
xix.
egularity of cloc( in submitting all reports, special information and communication.
xx.
An appropriate behavior pattern during office hours as well as out of office in a manner, which is not indetrimental to the reputation and image of the company.
A)
+uilding rapport #ith customer
Any pharmaceuticals company can exist survive and grow in a particular geographical area only on a piece of paper which doctors write i.e. prescriptions of your product. #n today&s competitive environment doctors have many options to satisfy the needs of their patients hence generating prescriptions become tough. "esides (nowledge and s(ills, we have to develop good rapport with the doctors. %he relationship with doctor means that the influence we exercise on the doctor to generate prescription for our products. %his relationship does not refer to how close we are to the doctors> it refers to only one thing i.e. how effective we are in generating prescriptions. %hat is nothing but rapport building. !.g. r. Dul(arni in your territory, greets you very nicely, offers you coffee, enquires about your family gives his best wishes for future but doesn&t write any prescription r. 'awar does not do all these things but writes your prescription in better quantity%herefore we can say that you have better rapport with r. 'awar as compare to r. Dul(arni.
%o develop the rapport building we must
!xpose the right product for right doctor by regular visits,
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'roper ob$ection handling
Converting the doctor&s prescriptions from the competitors so as develop effective business relationship with the doctors.
+hile analying you must as( the following question to yourself/
i.
o # have right doctors in my list8
ii.
1ave # selected right product for the right doctor at the right time8
iii.
Am # providing them appropriate scientific information&s, which will help them to satisfy their patient&s needs8
iv.
o # call on these doctors at right time, right frequency8
v.
o # ma(e my presentation effective8
vi.
o # ma(e use of all the promotional inputs provided to me in generating prescription8
vii.
o # demand prescriptions from doctors8
A/)
Vital Minutes
This is the duration a customer #ill gi&e to you for your sales presentation
+aste no time in ta(ing a place, opening a bag and ta(ing out 2aptop, C, "rochure JA )visual aid* etc.
Avoid serious error by which he will get angry e.g. touching articles on the table, disturbing his set up etc.
iscuss the right product, with right customer, with right implication, benefits etc.
"e confident with handling the 2aptop, JA
o not run the pointer use only to point
1old the 2aptop 7 JA at appropriate distance
1andle ob$ection effectively 43 | P a g e
o not detail in monotony
o not ma(e noise of bag while leaving.
A mar(eting representative always Remem+er that he must radiate
sunshine9 cheerfulness9 conBdence and con#iction in the clinic
Type of Doctors
15) Sr. No. A 9 : a
Degree
&(pe
6+ $6eneral +ractitioners / p'(sicians% 7ac'elor o# Medicine M77S and 7ac'elor o# Surger( Non M77S 7HMS
)
7AMS
7
7DS
Specialt( $8o) +ro#ile% Medical 6raduates 6eneral +ractice in Allopat'ic1ail( p'(sicians
7ac'elor o# Hoeopat'( and 7ac'elor o# Surger(
6eneral +ractice in Hoeopat'(1ail( p'(sicians
7ac'elor o# A(urveda and 7ac'elor o# Surger( 7ac'elor o# Dental Surger(
6eneral +ractice in A(urvedicnatural edicines- 1ail( p'(sicians Deals it' diseases / disorders o# teet'
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16)
Pharmaceutical Distribution
rug distribution in #ndia has witnessed a paradigm shift. "efore :??6, pharmaceutical companies established their own depots and warehouses. ow they have been replaced by clearing and forwarding agents )C4As*. •
CFAs: %hese organiations are primarily responsible for maintaining storage )stoc(* of the company&s products and forwarding 3DUs to the stoc(ist on request. 0ost companies (eep :LK C4As in each #ndian state. On an average, a company may wor( with a total of <5LK5 C4As. %he C4As are paid by the company yearly, once or twice, on a basis of the percentage of total turnover of products.
•
Stockist: is the distributor, who can simultaneously handle more than one company )usually, 5L:5 depending on the city area*, and may go up to even K6L56 different manufacturers. %hey pay for the products directly in the name of the pharmaceutical company after K6 to =5 days.
•
The retail pharmacy obtains products from the stoc(ist or sub stoc(ist through whom it finally reaches the consumers )patients*.
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17)
Chemist
Organied pharmacy retail sales in #ndia are only K of the total sales. %hey can procure the stoc( from the stoc(ists registered in the association )A#OC* only )0anufacturers would not sell their products directly to retails chains*. %he remaining ?; mar(et is completely controlled by the stoc(ists )%here are many layers of stoc(ists or distributors based on the volume and region they operate in*. 3ales representatives do rarely come and tal( with the concerned distribution managers in the retail chains to sell their products. %nstitutional Supplies
#nstitutional supplies are ; of the total drug sales in #ndia. istribution for institutions )divided into state funded, central funded G large hospitals* happen either through stoc(ist or directly from the company C4A . Companies bid for the tenders passed by these institutions li(e ma$or '3Us )'ublic 3ector Units* including %'C, "1!2 etc.
*hemist= Chemist or retailer is the last or the end part of the chain of distribution. 1 | P a g e
Chemist provides the medicines to the buyer, prescribed by the doctors.
Chemist realises the prescription written for our product, thereby he is an important aspect in getting the sales.
3elation of M3 -*ompany) and 3etailers
%he only way to meet the target is to generate the prescription demand and by maintaining 3toc( pressure at the retailer- to meet this demand %herefore to honour the generated prescription demand L etailers Assistance is vital .%o maintain stoc( pressure L etailer&s Assistance is equally necessary.
etailer&s Assistance will be forthcoming only if he sees you as an NA33#3%A% ready to help him. etailers may see you as one help him earn extra profits and information.
%he only purpose why a retailer entertains you is because he sees you as one helping him to earn profits and extra information on company&s product.
%hus the ob$ective of the retailer to see any Companies 0 is as one who always helps him to earn more profits and give information about the products.
%al( to him about new products trade offers etc.
emember retailer doesn&t mean the 'roprietor )owner* alone, it means his assistance too, the counter cler(, the pharmacist and the cashier 7 accountant.
o not ignore any one. %al( to each one politely.
(unction of the *hemist
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Chemist 7 'harmacist fills up the prescription written by the doctors
0a(es the availability of products for patients for which he stores the medicines in the shop
1onours the prescription written by the doctor
#s the lin( between the patient and doctor, sometimes he helps the patients in understanding the dosage and administration of the prescribed medicines.
4eed to meet the chemist'retailer
%o inform the retailer about the availability of company&s products and its salient features.
%o (now which doctors is prescribing what8
%o (now the secondary sales of our product s, to (now how our competitors are doing
%o ma(e it sure that chemist is not running short of any of our products for which he receives prescription.
%o boo( the orders for our products
%o get the feedbac( regarding any near expiry goods.
%o (now type of the doctor in terms of qualification and practice in your territory
%o (now the potential of a doctor in the territory
Prere!uisite before &isiting chemist
A copy of recent price list along with latest information about bonus offers 7 schemes provided by the company
'O" )'ersonal Order "oo(*
< L carbon papers
All product stic(ers or information literature 3 | P a g e
eady stoc(-provided, if you are visiting a new7 remote area and launching a product. A small diary 7 note boo( to note the observation )aily call Companion*
oFs and onFts at the chemist Do’s:
4irst ta(e out the order boo( and as( about if any order he his having for you
Eou should inform the chemist about new 7 old products we are promoting and the product name should and must be written in the chemist boo( along with stoc(ist&s name.
Iet the feedbac( from the chemist regarding doctor&s preference for writing specific molecule or products.
As( the chemist to quantify the sales of the product s )so you can demand the prescription from the doctor by quantifying*.
Deep as(ing price of competitor&s brands their composition and strength.
%ry to do more personal order boo(ing, which will (eep you in touch about the secondary sales and the stoc( position at stoc(ist also )which will reflect your concern for your products, which in turn will enhance your image at stoc(ist and retailer level*.
evelop a rapport with the chemist at personal level by (nowing the name of the person and remembering it.
2ater you can call him by name once you develop a rapport with him.
onFts=
on&t touch any of the medicines, prescription at the counter without as(ing to the chemist or patient.
on&t as( lengthy questions to the retailer, when he is busy, probably he may not answer or will not be able to give correct information.
on&t start tal(ing about other retailer or doctor with chemist )gossiping*
4 | P a g e
on&t enter in to the argument if you have any problems regarding availability, (eep pressurising him with persuasion.
on&t open your visual aid at the chemist counter in presence of other companies 0&s.
%mportant of retail audit ' sur&ey you can determine the actual secondary sales trend for your product" by #hich you can kno# that #hich of your doctor is prescribing #hich product and in #hat !uantityC .The preferences of the prescribers and his prescribing habit in terms of molecule" its !uantity and fre!uency of prescription" #hich can be actually kno#n and its utilisation for our benefit can be done. %t #ill help you kno# the potential of the doctor ' market. So that you can plan your future course action plans. Gtilisation of 3etail 7udit information
etermine who are your competitors "y how much margin the competitor7 s is leading8 Or who are behind you and by what margin8 +hich doctor is prescribing which brand8 #n what quantity8
Once you (now the preferences of the doctor decide the product7s to be promoted to the doctor.
'lan for the promotional strategy and inputs, which you will be receiving, to present to the doctor.
Continuously (eep tal(ing on calling chemists to ascertain prescription flow for our products or for any prescription shift towards other brands.
$rder = 0issionary salespeople are the one who do not close the sale but persuade the customer to promote sellers brand.ather then closing creating a awareness is more important here !g.medical rep. don&t buy medicines personally but tell to prescribe it to patients.
As( for an order L #t is your "#%1#I1%
%he stoc(ist salesman is not our competitor
"ut we are reluctant to boo( an order, having forgotten the art of ta(ing an order.
3easons for not getting order | P a g e
+e don&t call at the right time
+e don&t have the time. +e don&t spend enough time L we are in a frightful hurry.
%he retailers says he has already place the order with the 3toc(iest salesman
Summery
octor&s coverage and retailer&s coverage both are equally important
Hualitative and quantitative improvement in retailer coverage ensures>
Adequate stoc(s 7 display at the retailer shelves.
'rescription generated is honored in %oto.
%hrough (nowledge of what is happening in the mar(et.
'reempt competition
Corrective action on time
Asses strategies - Ours 7 competitors and get realistic feedbac(
18)
Stockist
All #ndia Organiation of Chemists G ruggists )A#OC* has over 5.5 2ac members from retail chemists and pharma distributors7stoc(ists. 3toc(ist plays a very powerful role in the pharma distribution in #ndia. Companies cannot bypass stoc(ists and sell directly to institutions or retail chains. %hey may face a ban from the stoc(ists and considering the substitutes available for each molecule, companies cannot ta(e the ris( of losing the sales.
All of will agree that y 0 have generated the prescription, which gets honored at the chemist counter. "ut who serves the chemist8 Or who ta(es care of the demands generated by you8 #t is the stoc(ist hence proper functioning of stoc(ist plays an important role A stoc(ist is a customer who stoc(s the products of various companies and sells to the retail chemists. 1is basic $ob function would be to satisfy the need of the retailers and he has to deal with company as per the company rule. ) | P a g e
4eed of stockist
Our country has a wide geographic borders and our success will greatly depend on how powerful is our distribution system.
As ma$ority of companies have started covering even micro interiors, the pharma business in these place have started flourishing.
ow days there are more than =-5 chemists even in the micro interiors and we have to serve them very effectively.
!arlier company used to operate with few stoc(ist and mainly retailers used to come and buy from them but today due to fierce competition even stoc(ist has to go to the retailer and boo( the orders and supply them.
*riteria to appoint a stockist
Appointment of stoc(ist plays an important role in prosperity of your sales therefore his appointments should ta(e maximum time and care so as to find promotion in future.
%he first step to be ta(en before appointing a stoc(ist is to underta(e a thorough chemist survey
0 must collect the information through chemist regarding stoc(ist who covers that area in terms of, egularity and frequency of visits Credit facilities extended, %ime ta(en for executing the orders.
Stockist operations
Eou have to coordinate very effectively and regularly with your stoc(ist, Area 0anage, egional 0anager, your superiors and 1.O. for the smooth operation.
Eou must be able to manage his purchases, his services and his payments.
Managing the purchase
#t is observe that sometimes there is loss in sales because the stoc(ist does not have adequate stoc(s when there is demand.
%his can be done by regularly monitoring the stoc(s position or stoc( and sales statements. 5 | P a g e
At any given time ensure that mar(et should not suffer when you ta(e an order.
Use the following formula
'roduct requirement S 3econdary 3ales x < L [)3toc(s in hand* T )stoc(s in %ransit*] Managing the ser&ices
Eou must ensure that stoc(ist&s salesman regularly boo( the orders from retailers, for our products, and is supplied by the stoc(ist on time.
Eou can improve the services by more opportunities of personal order boo(ing )'O"* from various chemists and give it to the stoc(ist.
3toc(ists should ensure that he parts away with bonus offers to the retailers.
Eou have to ensure that he gives you copies of the invoices or some information regarding town wise sales, so that you can evaluate the impact of your wor( and ta(e corrective measures, accordingly.
1e should also ta(e care of genuine complaints from the retailers, regarding expiry, brea(age or any damage of goods.
Managing the payments
!very visit you should as( for payments which are overdue, it is always better to inform the stoc(ist regarding the due dates of payments instead of spending your time when the bill overdue.
emember the sales is not done or completed till the realisation of payments.
Stock and Sales Statement
#t gives you a clear picture of personal satisfaction, receipts of goods sales, return of goods, inventory etc.
%he sales statement must reach your Area 0anager and since you prepared the statement from your entire stoc(ist, analyse the factors li(e secondary sales, goods return, average etc.
%he previous stoc( and sales statements record should be maintained by each one of you to find out the trend or your progress. 6 | P a g e
Mathematical formulae and calculation
3ince our ambition is to progress in this profession, we must remember the following terminology through out our life.
:* %arget/
#t is an ob$ect or mar( to hit. #n other words to achieve a specific ob$ective in a fixed time span
!.g. % S s. :667-
<* Achievement/
esult obtain by us against a specific L target
!.g. A S s. P5 7-
K* Achievement/
Achievement 7 %arget x :66
S P57 :66 x :66
S P5
/) >ro#th=
#ncreases in the sales sie as compared to previous specific period. egative growth implies decrease in sales.
7 | P a g e
Current (ears Sales 5ast ears sales x 9BB
6r o t '
5ast ear Sales
6ro t'
Or
Current (ears Sales 9 x 9BB 5ast ear
%he period remains the same
Sales 2E3 )2ast Eear 3alesApril <66=- 0arch <665* S s. <6,666
CE3 )Current Eear 3ales- April <665- 0arch <66@* S s. :66,666
%hen
6ro t'
9BB-BBB " :B-BBB x 9BB :B-BBB
P*PM=
Per *apita per month i.e. 7&erage sale per Man per month
)' | P a g e
19)
Territory management
%he word 0 is stand for 0edical representative. Almost each and every 'harma companies require some professionals who are expert in communication s(ill and mar(eting strategies with militant nature. 'eople with gibberish nature have no space in this field. 0ar(et value is high so existing in mar(et is very difficult and essential. 0 is very bedaling part of the industries as he is sensibly responsible for existence of industry in mar(et . 3alespeople are not only responsible for individual customers )account management* but also responsible for a group of accounts )territory management*.#t is defined as planning, implementation, and control, of sales persons activities with the goal of realiing the sales and profits potentials of their assigned territories. Although geographic considerations play a role in setting boundaries, sales territories are primarily based on customer grouping. 3hould the sales executive assigned a territory on the basis of the geographically area or customer base8 +hat if a customer has multiple plant location8 Or the client shifts its business area 8 Customers whose significance to the company’s business requires special attention and experience. Major accounts are also termed as ‘key accounts’ They are usually called on either by special sales people “senior sales representatie! or “"ey accounts manager!# or by regional or district sales managers. 2arge accounts involving special arrangements in
terms of pricing, credit or product design. 4or e.g. central buying offices of a multinational firm.%hese are also called N House@ or 4ational@ accounts those served by home office personnel or executives.
)1 | P a g e
%erritory of 0 is a complete geographical area assigned to a particular 0 which comprises of potential customers li(e doctors, chemists stoc(ist institutes etc with specific demographic requirements
H.E=
#n a given territory the basic town is (nown as 1.H. )1ead Huarter* town.
1x,station=
!x-station is a place where he can go to a particular place and return on the same day after meeting the customer.
$ut,station=
Out-station is a place where he can go to a particular place and stay there and visit the neighbouring territories.
(actors to consider in establishing ITerritoriesF
3ales person&s wor(load and nature of the $ob, for e.g. a prospecting salesperson can handle a larger territory assignment then a person who must provide full service for each account.%he type of product 7 product lines )& | P a g e
%he type of competition faced by the company in each territory. %he desired intensity of the mar(et coverage 7 challenging territories Channels of distribution available and transportation, system 3ales potential and servicing requirement. 2imited potential territories can be used as training grounds for new members of a sales force. 3alesperson can be assigned to more challenging territories in accordance with their performance. Territory management can be defined broadly in terms of=
'lanning )Analysis, Ob$ectives, 3trategies, %actics* #mplementation )achievement of new business targets, reporting* Control )compares intended and actual results with a view to ta(ing corrective action*
'lanning 7nalysis=
Account load L the number of actual and potential customers assigned to a salesperson Account potential L the share of an account&s business that the firm can reasonably expect to attract. 3ervicing requirements L established and new accounts have servicing requirements that are based on both the past volume with the company and their unique needs and problems. $becti&es=
Concern here is the sales volume and mar(et share goals in the territory, which is derived in top-down manner, starting from corporate ob$ectives. )3 | P a g e
Strategies=
1ave to wor( on various strategies li(e pricing, promotional, delivery terms, payment and credit terms. Tactics=
outing and scheduling tas(, avoid repetitive tas(s, intensity of territory coverage and minimiing non-productive time. esigning a sales person travelling plan or the sequence of location to be visited )(nown as Fouting&*. 'roper scheduling or sequencing of appointments. %mplementation
!stablishing customer base> selling and servicing these accounts is the principal act of territory activity. ew business development should be a continuous Underta(ing. Customer satisfaction and maintaining long term relationship are among the foremost concern of the territory manager. Another important ingredient in implementation is Freporting&. G 0aintaining a steady flow of reports to the home office about sales results, problems or corrective actions.
*ontrol
G 7 feedback process G 7 comparison take place bet#een intended and actual results" #ith a &ie# of taking correcti&e action #here re!uired. PrioritiJe Dour 7cti&ities to Produce Maximum 3esults
)4 | P a g e
1ow you prioritie your sales territory management activities depends upon whether you are managing a territory that has existing customers, or whether you are building your customer base from scratch. #f you manage a territory that has existing customers, your first priority should be to introduce yourself to every single one of your customers. • %his should be a pleasant, low-(ey introduction along the lines of, B# $ust
wanted to introduce myself and see if there is anything # can do to help you.B %hen, as you are chatting with your customers, you can as(, B+ould you mind sharing with me how you thin( my companys relationship with you has been going so far8 +hat have we been doing well8 +here could we improve8B • Collecting this (ind of feedbac( is a great way to start relationships with
customers. #t also helps you draw any festering problems out into the open. #f you can address the problems quic(ly, it can really $ump-start your relationships with the affected customers. • %his same approach can also be effective for customers that have been reducing
their purchases from your company over time, or customers that have stopped ordering completely. #t is never much fun to listen to people complain. "ut, if you can isolate and solve the problems that are causing the dissatisfaction, you can produce a rapid and substantial boost in sales. #f you find customers that are really happy with the service your company has provided, drill down )with more questions* to determine $ust what has made them so happy. %heir answers will provide you with a template for successfully managing their )and other* accounts. Also, as( these happy customers for referrals, regardless of whether you have contributed in any way to their happinessQ 1appy, satisfied customers are usually delighted to share their positive experience with others. Once you have met all of your existing customers, the next step is to identify target prospects in your territory 3tart by chec(ing with your manager. #f they have been managing your sales team for any period of time, they should be able to suggest some good target prospects. • Once you have compiled a list of target prospects, determine which ones you
will pursue first. +hich target prospects have the greatest potential to purchase the largest amounts of products and services8 +hich ones are li(ely to be Bquic( closesB8 #f you have both types of target prospects on your list, pursue several of ) | P a g e
each type at the same time. #n the words of a well-respected executive that # used to wor( with, B!lephant hunting is great. "ut those rabbits sure taste good in between the elephantsQB • +hen you are ready to begin pursuing your target prospects, start by as(ing
your existing customers whether they (now anyone that wor(s in the target organiations. #f they do, as( for referrals. Once you have exhausted available referrals, proceed with the other activities in your prospecting plan - but tailor these activities to attract the attention of your target prospects. Prere!uisite for territory management
%o have complete territory (nowledge 0 must (now the details pertaining to the territory lay out, important places important institutions, way of conveyance etc.%otal number of customers of different categories, their prescription habits, qualification, addresses and appropriate visiting time.ame of the competitors in the territory, their strengths and complete details about their activities. Convenient routes of travel and minimum expenditure of time and expenses for optimum coverage of the territory. 3ales representatives in the healthcare industry are expected to manage their Nterritories as if they were running their own business. %o be successful in your sales territory its important to (now which customers drive you more business, what their Nbuying style is> so that you can match your selling style to it. One ma$or goal of a medical sales representative is to be seen as a valued consultant by octors octors typically have full day schedules, with no direct access and they may frequently need to reschedule appointments due to medical emergencies. %hat ma(es face to face meetings rare and precious when you get a chance to have one.
Medical 3eps Must ha&e a database of=
Customer profile 'roduct profile/ all studies , all information about the product
)) | P a g e
octor&s information and his field of specialiation 0ust have detailed information about how your drug can be helpful and how it differs from other drugs. 3hould (now details about the disease #t is helpful to ta(e advantage of certain events such as (nowing the doctor birthday and to time your visit at that day bringing a small gift with you #n order to get sales the medical representative must L prescribe his products %o greet him upon his visit. %o understand the properties of his product over competitors& ones. 4eedbac(
)5 | P a g e
20)
IS- Information System
%o (eep a tract on daily activity, sales mar(et feedbac( the company has develop the information 3ystem
#3 contains various systematic and scientific formats which can give all the required information form the field to 1.O.
3o that both the 1. O and the field staff can wor( smoothly.
%hus these formats are very important lin(s between the field people and the 1.O
The important %nformation System
4ormats are as given below>
i.
aily call report - C
ii.
0aster Call 2ist )0C2* or #mportant Call 2ist )#C2*- octors, institution, chemist, and stoc(ist
iii.
!xpense 3tatements
iv.
3tandard tour program, %our eport and fare chart
v.
0onthly sales Analysis report
A) aily *all 3eport -*3)
Contains all the daily activities done by sales executive
Iives entire details and picture of implementation of tour plan
Iives picture of number of doctors met, name, qualification, specialty, area of practice etc. of each doctor C to be sent on daily basis to 1O
)6 | P a g e
Dail( Call Report SE Nae ! Sr.No.
Nae o# Doctor
Date! HI MC5 No. Degree Morning
Specialit(
5ast 4isit
9 : ; < = > Evening $A#ter < +M% 9 : ; < = > 2ork 2it' Nae Signature Reark o# Superior An( Special O)servation Signature o# SE
2) Monthly 3eport
Collection of data li(e
i.
%otal sales generated for that month
ii.
Any discount offer to doctor
iii.
o. of doctor met with specialty )7 | P a g e
iv. v.
Call average #mpact of promotion strategies and doctors response
vi.
ecord and frequency of promotional material li(e 'hysician samples, gifts 2"2 etc. given to doctors.
vii.
etails of competitors
viii.
All this above data should be filled and posted to 1O on or before :6th of every month Mont'l(
Report
Mont' :BB< SE Na e ! Da te !
Da(
No. O# Doctors Met Morning Evening
HI
+rootinal Material +S 575 6i#ts
Discount O##er
&otal Sales
9 : ; < = > ? @ 9B 99 9: 9; 9< 9= 9> 9? 9@ 9 :B :9 :: :; :< := :> :? :@ : ;B ;9 &otal Average An( Special O)servation
Signature o# SE
) Tour 3eport
%his is an important tool for planning 5' | P a g e
'lan your tour in such a way to cover maximum no. of doctors in the area having high mar(et potential and require less travelling
4rom one doctor to another
4rom one ex station to another ex station
4rom one out station to another out stations
/) Master *all 8ist -M*8) or %mportant *all 8ist -%*8)
%his is a very important format
Contains selected important core doctors list of a 3ales !xecutive territory
%he doctor name has to be entered with the following details
i.
&elep'one
i.
MC5 / *C5 code
ii.
Nae
Nos. $Clinic
iii.
HI
and Residence
iv.
Iuali#ication
along it'
v.
Specialt(
o)ile no.%
vi.
1ull Address
Master Call 5ist
ii.
Nae SE!
MC5 'as to )e
Date!
HI
&el
MC5 No. 9 : ; < = > ? @ 9B
Doctor Nae
Degree Specialit(
Address and Eail
updated and Clinic
Res.
Mo)ile
DO7
su)itted to HO a#ter ever( > ont's.
5) 1xpense Statement
Iive clear details of expenses day wise, 1H +ise
4or each claim, supporting is a must 51 | P a g e
