Pharma Company Organizational Structure

PROJECT REPORT ONSTUDY 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 2015-16 UNDER THE GUIDENCE OF PROF. A.K SINHA N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH, MIRA ROAD (E), MUMBAI – 401104 1 | Page DECLARATION I Mr. Dhiraj Shukla of N.L. Dalmia Institute of Management Studies and Research of MMM (Sem-V) declare that have completed this project on “Study the Pharma Marketing” in the academic year 2015-16. The information submitted is true and original to the best of my knowledge. Date:-______________ ______________ Place: Mumbai Dhiraj Shukla MMM (Sem V) CERTIFICATE I Prof. A.K Sinha hereby certify that Mr. Dhiraj Shukla of N.L. Dalmia Institute of Management Studies and Research of MMM (Sem- V) has completed the project on “Study the Pharma Marketing” in the academic year 2015-16 under my guidance. The information submitted is true and original of my knowledge. __________________ _________________ Prof. A.K Sinha Dr. C.M. Dwivedi Project Guide Director 2 | Page Presentation Content 1. Pharma Company Organizational Structure 2. Pharmaceutical product Marketing and Sales 3. Pharma Distribution Channels 4. Job profiled of Healthcare Sales Executive – Medical Representative (MR) 5. Pharma Products Marketing and Promotions 6. Product Mix 7. Promotional Aid 8. Detailing 9. Handling a Visual Aid and Art of sampling 10.Daily Sale call planning 11.Tips for becoming a successful BDA / BDE 12.Building rapport with customer 13.Vital 3 Minutes 14.Type of Doctor 15.Chemist 16.Stockist 17.Territory management 18.Information system 19.Printing Technology and Types of paper 20.Mathematical formulae and calculation 3 | Page technicians and other specialists come together for representing virtually all the sciences. accountants. As we have already noted that this decision involves determining whether spans of control are relatively narrow or wide.1) Parma Company Organizational Structure Organisational structure is the bureaucratic set-up of an institution by which its staff. proprietary drugs and toiletries companies are complex organisations. what skills they should have. Implementing this strategy requires new processes and technologies for information sharing. Earlier we are having a common structure in which there used to be only one administrator and one or two departmental heads. 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.This decision is much like any other classification decision and it can result in groups containing jobs that are relatively homogeneous (alike). rather than the traditional plan for each sales force team. In the new structure a specialist is needed for every individual job because every job today demands for specialisation. their needs. engineers. After this manager decides the bases by which to groupthe individual jobs . Its manager works with the objective of profit through customer satisfaction. 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. Pharmaceutical marketing departments are concerned with the process by which medicinal products are made available to ultimate consumer from their point of origin. lawyers. system analysts and may other whose abilities and talents maintains the viability of this unique business enterprise. 4 | Page . The new organisational structure gives us the benefits of specialisation. The integrated plan should identify the company’s objectives for the customer. what tools they require. All jobs contain some degree of the right to make decisions within prescribe limit. In the last manager distributes authority among the jobs. But now days when the pharmaceutical companies are becoming gigantic a need for new structure arises. This structure can be followed by the company’s manufacturing wide variety of products as well as the company manufacturing single product but distributing widely. Under its roof a team of scientists. and what system will hold it all together and provide support. which in turn requires a change in organizational structure and the breaking down of information silos within the organization. A pharmaceutical company as well as its close relatives. what roles they should play. What is needed is an integrated plan for each key customer in the context of the company’s portfolio. Authority is the right to make decision without approval by higher manager. Then manager decides the appropriate size of group to each superior. along with the contribution made by the management executives. Current scenario demands for a different organizational structure for a large scale pharmaceutical company and for a small scale pharmaceutical company. we observed a problem that is faced by every HR manager of these companies and that is of employee turnover. In the part. Manager divides the total activities of the task into smaller set of related activities . The essence of work specialization is that. These are: work specialization. As a result. Several representatives from the same company might be calling on the same customer to promote different or the same product. THE PROBLEM Change in the pharmaceutical market requires company to change their approach and business model. Although job having many Criteria’s the most important one is their degree of specialization. Work can be performed more efficiently if employees are allowed to specialize. In our study. The new rules of operating in today’s global business environment make structure and design even more critical.INTRODUCTION AN organizational structure defines how job tasks are formally divided in to groups and coordinated. span of control. With the passage of time. Turnover among sales representatives is often high. rather than an entire job being done by one individual. we found a reasonof this problem.The effect of this decision is to define job in terms of specialization and responsibility. This approach is focused on transactions and on increasing share of voice. manager first decides how to divide the overall task into successively smaller jobs. presenting further challenges of coordination. 5 | Page . the companies facing this problem started appointing nonprofessionals (graduates. For the purpose of our study we had chosen a sample of 50 pharmaceutical companies from top 500 pharmaceutical companies on convenience basis. it is broken down into a number of parts: In this work. we found that each company is following a different structure (may be functional or divisional) according to size of marketing operations and span of control. centralization and decentralization. medical sales forces have mostly called on doctors and other prescribes to sell their product. As our sampling units were large pharmaceutical companies. master degree holders in any stream) for this job and this situation gave birth to the problem of Pharma unemployment on the part of the country. making it difficult to build relationship with the customer. graduates and master degree holders in Pharmaceutical Sciences for the job of Medical Representatives because the job and work demands for specialization. But the employees were paid less as compared to their degree demanded for and as compared to other professionals having the equivalent qualifications but working in other industries (except pharma industry). So a trend came of quitting the job because of work and salary dissatisfaction. departmentalization. There are five key elements a manager needs to address when he designs organization’s structure. As we went in depth of this problem. Previously pharmaceutical companies were used to appoint diploma holders. Following to this. Medical Representative for Doctors and MRCW i. Below we are showing a common functional structure of a pharmaceutical company. we are showing a common functional-geographical structure of marketing division. But we are suggesting a bifurcation in the job of Medical Representatives. Medical Representative for Chemists and Wholesalers. We suggest dividing it into two parts.e.today a new problem has arisen that the new sales personnel were unable to satisfy the queries of doctors. This again discards the marketing plans of the pharma companies. B. This results in the avoidance of Medical Representatives by the doctors. In fact every structure demands for the specialization. THE NEW STRUCTURE Above problem can be solved by adopting the new structure that leads to more specialization.e. which is followed by any big pharmaceutical company 6 | Page . A. We are calling the two new jobs as MRD i. So we are propounding a new structure for the marketing division of a pharmaceutical company.But this structure is giving birth to some problems which we have discussed above. Now in reader’s mind some questions will arise like: Why two separate divisions for marketing of products to Doctors and marketing to Retailers/Wholesalers? And if these exist who will be recruited 7 | Page . This new structure will be like this: C. For the MRCW’s job the persons appointed will be diploma holders in pharmaceutical sciences and they will be paid lesser than the above professionals. And they will be paid higher because of their expertise and higher investment on education. Medical Represent ative / Sales Executive Reg Hea ion d Area al Manag Hea der Medical Represen tative / Sales Executive Pharma Company Organizational Structure 8 | Page . Dire ctor CE s O VP Sales Marketing Mark eting PM Mana T ger Tea m National Sales Manage Zon r al Sr. The answer to these questions lies in the following text: As we have discussed earlier there should be two separate divisions because it facilitates the Marketing Function.to these two jobs? Whether the persons with same educational background will do both the jobs or the persons with different backgrounds will be needed? D. Their educational level will be different. 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. For MRD’s job the person appointed must possess a degree or higher in pharmaceutical sciences because their job profile demands for pharmaceutical professionals. Different professionals will be needed for these two divisions. has been prohibited by PHRMA ethics guidelines. clinical growth. 4% on detailing to hospitals. Medical Department groups might help in developing appropriate positioning for new releases and help to leveraging the newer indications to come. Pharmaceutical companies spend tremendous resources for development of new drug treatments. 12. including pens and coffee mugs embossed with pharmaceutical product names. The Pharma functioning can be divided into five .Pharmaceuticals Organizations department  I. There is some evidence that marketing practices can negatively affect both patients and the health care profession. Many countries have measures in place to limit advertising by companies. sometimes called medico-marketing or pharma marketing in some countries is the business of advertising or otherwise promoting the sale of pharmaceuticals or drugs.The Medical Department groups are a growing vital sector in today's bio pharmaceutical industry in providing hospital consultants.5% was direct to user advertising. provision of drug samples. II. In Canada. In 2005. The use of gifts.Sales and Marketing: Marketing to health care providers takes three main forms: activity by pharmaceutical sales representatives. 56% was free samples.7 billion was spent in 2004 to market drugs to physicians. 9 | Page .9 billion with one estimate as high as $57 billion. medical Department can fill the requirement for the studies done post approval. key opinion leaders (KOL's). money spent on pharmaceutical marketing in the United States was estimated at $29. $21 billion was spent in 2002.Pharmaceutical marketing.S. While considering the distinctions between post marketing scientific tests and clinical registration demos. Medical Department groups perform many activities often overlapping with sales. Sales groups may be ill-positioned to accurately present the new product to physicians and quite often need help in making more expert presentations. 25% was pharmaceutical sales representative "detailing" (promoting drugs directly to) physicians. and customer service. When the U. $1. A great deal of time is spent in doing research on potential health-related products and medicines. Medical Department: . Main Function . and sponsoring continuing medical education (CME). numbers are broken down. Medical Department personnel strive for the highest scientific integrity so as to produce successful clinical trials and supply the greatest support for the market. Pharmaceutical company spending on marketing far exceeds that of its research budget. in the United States. Medical marketing. and 2% on journal ads. regulatory agencies and healthcare professionals with scientific and medical information relating to the value and correct usage of the products. Medical Department acts as the central focal point for different therapeutic areas of sales. Manufacturing Department: . Medical Department is the majority of credible link with external stakeholders and also play a progressively more important role in communicating the product or service value message to physicians in an objective and ethical manner. Graphic designing. The process of drug manufacturing can be broken down into a series of unit. and develop successful portfolio and asset strategies Support Department: . Research and Product Development: - Research and Product Development helping clients build the R&D capabilities needed to drive innovation.The Department of Pharmaceutical Services provides comprehensive pharmaceutical care services to Research. Marketing and PMT team: It’s a thinking brain of any Parma Company  Development of strategy  Brand Development and Branding  Promotion and Marketing strategy  Decision making  New brands Launch or withdrawal of any brands  Media Planning  Training 10 | P a g e . and Education  The main department sales and marketing can be further divided into two as . IV. 2.Drug manufacturing is the process of industrialscale synthesis of pharmaceutical drugs by pharmaceutical companies. marketing and research. Purchase. 1. They provide assistance in dissemination of technological information regarding current products to regulating agencies and healthcare professionals. coating. Financial. III. such as milling. Logistic. tablet pressing. improve productivity and performance. Quality and Compliance. Marketing and PMT team Sales team (field staff) 1. granulation. and others. Thus Medical Department play an important role in establishing appropriate positioning for new items and help to help leverage the newer indications in the future. the basic types of organisational structures and territorial designs that are used to define work relationships between sales personnel and their superiors  They generates sale by meeting the customers  Strategy Implementers  Eyes and ears of the company in the field  Sales Projection. if not more. Properly defining and structuring the roles and responsibilities of the product management team would enable the team members to be more efficient and productive. 11 | P a g e . line authority and accountability must be defined so that the sales activities can be well coordinated. understanding how it should change in the future. Yet. knowing how to facilitate that change. the "product manager" title is used in many ways to describe drastically different duties and responsibilities. 2. product marketer. the next logical step is to organise a sales force to achieve the enterprise objectives. Brand Projection The role of a product manager is challenging. Complexity arises from the fact that there is no single ‘new model’ solution. of three common issues that trigger an urgent need for a sales model restructure. who therefore struggle to define their own role. More far-reaching solutions are needed. Territory projection 2) Pharmaceutical Product Marketing and Sales It is now generally accepted that the sales force arms race has come to an end and that the pharmaceutical Sales model needs to change. Diverse interpretations regarding the role of the product manager have created an untenable situation for some. The product management team is a task group that organizationally resides in the Product Management department and has four distinct roles: product planner. The scope of their sales responsibility. Some find themselves in the difficult situation of suffering from all three simultaneously. Decisions must be made as to the type of sales tasks required to be performed and as to how the sales people should be grouped together to ensure effectiveness and efficiency. and determining the impact of that process on the organisation still eludes most companies. Many have taken the approach of simply cutting back resources and re-labelling some representative roles as ‘account managers’. sales engineer and marketing communications (marcom) manager. the right sales model has to be selected to fit each organisation’s situation. complex and often misunderstood. only making the most superficial of adjustments to their operating models. Pharmaceutical companies usually face at least one. Sales team (field staff): Once the sales plan has been formulated. In this unit we shall discuss. Across the high-tech industry. leading to better revenues and higher-quality products that meet customer needs. a) Consumer selling b) Healthcare selling Customer  Pharmaceutical selling is an indirect selling  One promotes a particular product to a doctor who identifies the need of that particular product to a particular patient and prescribes the same hence. Parma product.  Improving the overall quality of life of people around. no solicitations of the customers / patient and n o advertisements. Doing everything for everyone is not a strategy that works. One is engage in healthcare business for. The six pillars of customer experience for pharma  Focus your customer experience strategy on a specific subset of customers in a particular location 12 | P a g e . Hospital and medical services. service the customer / doctors by giving them latest medical information  Present before them logical prescribing alternatives  Facilitate continues medical learning. a doctor becomes a customer and patient becomes a consumer. Doctors all over the world agree. they depend on Medical Detail men for a big portion of latest medical information.Ethical Selling.    Pharmaceutical professional belong to an extraordinary class.  Similarly the chemist honors the prescription raise by the doctor’s and the stockiest supply the stocks to the chemist while the C & F agent who hold the stock on behalf of the companies. Types of selling Selling can be classified as: Consumers selling and Healthcare Selling . Yet too many pharma strategies for customer experience fail to focus these efforts in any meaningful way. Who is the customer?  A customer is that person who makes a decision pertaining to the usages of a particular product / services among the several options available  The customer may or may not be the consumer of the product / services A great customer experience strategy focuses your efforts and resources where they will have the most impact for your business. Healthcare professional job is unique. special and rewarding. testing them with customers. and revising them until they work  Measure what matters.g.  When husband visit a shop he become a customer for Cerelac but his wife takes the decision to by the Cerelac. instead of focus groups. a doctor becomes a customer and patient becomes a consumer.Invest in one-to-one qualitative studies.  In this profession you may not meet the actual consumer of your product. Doctors (Who raise the prescription) Chemist (Who honors the prescription) Stockist (Who supply the stocks to the chemist) 13 | P a g e . and  large sample sizes  Design experiences by making new things. ii. Baby become becomes an actual consumer of Cerelac and not your wife.  Similarly in pharmaceutical selling you promote a particular product to a doctor who identifies he need of that particular product to a particular patient and prescribes the same  Hence. that means customer experience quality. quantitative studies. The customers for pharmaceuticals Business are i. and not what is easy. hence your wife becomes the customer and your baby becomes a consumer.  That is the reason pharmaceuticals selling is considered as indirect selling. which in time become building blocks for success  Who is the customer? – E. wife asks to purchase Cerelac for baby. because even the best ideas can turn into failures. and its effect on sales  Ensure you have the right qualified people in place to make sure your customer experience efforts are not in vain  Make it OK to fail. iii. as compared to prescription drugs. v. Difference between pharmaceutical selling and other consumer product 14 | P a g e . Carrying and forwarding agent (Who hold the stock) Patients and general Public for OTC products (Who purchase and consume the products) Over-the-counter (OTC) drugs are medicines sold directly to a consumer without a prescription from a healthcare professional. which may be sold only to consumers possessing a valid prescription.iv. 15 | P a g e .3) Pharma Distribution Channels  The Indian Drug and Medicine Retailers i.e. Chemist operate on the following system.  The net profit for the retailers is aprox. as well as working with contacts on a oneto-one basis.  The CNF is appointed by the Co.5 % to 4% on the total turnover. prescription drugs and medical equipment. to a variety of customers including GPs and hospital doctors. Indian Pharmacy Standard Operating Procedure  The stockiest in turn purchase the goods from the Super Stockiest or CNF agent or the Distributors. and is approved by the MSCDA.  All the stockiest. ( Maharashtra State Chemists & Druggists Association)  The stockist earns a margin of 10% on the retailer’s price. Typical work activities 16 | P a g e . which include medicines. Sub stockiest and the retailers (Chemist are the members of called MSCDA (Maharashtra Stockiest and Chemist druggist association) in Maharashtra while at all India level AISCDA 4) Job profiled of Healthcare Sales Executive – Medical Representative (MR) Medical sales representatives (widely referred to as 'reps') are a key link between medical and pharmaceutical companies and healthcare professionals. They sell their company's products.  The sub stockists are the stockiest which are not appointed by the Pharma co.  The stockiest are appointed by the Pharma co. They work strategically to increase the awareness and use of their company's pharmaceutical and medical products. They may make presentations and organise group events for healthcare professionals.  The chemist gets the margin of approximately 20% on the MRP. 12 -14 %. pharmacists and nurses. Medical sales reps are usually based in a specific geographical location and specialise in a particular product or medical area. or many times the Co.  CNF agents in turns get the commission ranging from 1. itself acts as a CNF at least in the HQ. Territory. The retailers purchase drugs from the stockiest and sub Stockiest. conferences. Make confident efforts towards improving services to customer To provide regular feedback to the company and the superiors on all the happenings in the field. medical sales executives have their own regional area of responsibility and plan how and when to target health professions. etc. outside speakers. Monitoring competitor activity and competitors' products. Medical sales representatives do all of this and more. which may include pre-arranged appointments or regular 'cold' calling. Building and maintaining positive working relationships with medical staff and supporting administrative staff. and providing an after-sales service. Keeping up to date with the latest clinical data supplied by the company. Presentations may take place in medical settings during the day. Making presentations to doctors. anticipating potential negative and positive impacts on the business and adapting strategy accordingly. Planning work schedules and weekly and monthly timetables. Developing strategies for increasing opportunities to meet and talk to contacts in the medical and healthcare sector. and interpreting. persuading them that your products or services (rather than those of competitors) can best satisfy those needs. This may involve working with the area sales team or discussing future targets with the area sales manager. presenting and discussing this data with health professionals during presentations. hospital doctors and pharmacists in the retail sector.). pharmacists and hospital medical teams. Keeping detailed records of all contacts. the process of selling involves contacting potential customers. Staying informed about the activities of health services in a particular area. technical data presentations and briefings. Managing budgets (for catering. practice staff and nurses in GP surgeries. Reaching (and if possible exceeding) annual sales targets. regarding Competition Marketing 17 | P a g e . closing the sale by agreeing the terms and conditions. Regularly attending company meetings. or may be conducted in the evenings at a local hotel or conference venue. Organising conferences for doctors and other medical staff. Duties often include:                   Arranging appointments with doctors. identifying their needs. Generally. Maintaining knowledge of new developments in the National Health Service (NHS).In any setting. hospitality. 4. Doctor level Chemist Level Patient level Masses level Packaging Level b) Internal Customers 1. 5. Sale team level 18 | P a g e . Pharma Promotions`  The Pharma Promotions or the marketing strategy is focused on the following level a) External Customer 1. continues and increases the use of our products. TV. employing a large number of professionals in all areas of operations.Radio. 3. 5) Pharma Products Marketing and Promotions Pharmaceutical industry is one of the most organized conditions of a patient industries in India. Print  Due to stiff competition the customer has to be met and persuaded frequently so that he begins. Socio-economic condition Need of Medical Representative (MR) / Sales Executive  Pharmaceuticals / Health care Ethical product cannot be promoted directly to patients through mass media . 2. 6. doctors 19 | P a g e .Target Customer Type of Doctor Type of the patients served by the doctors  GP (MBBS or Non MBBS). Urban or Rural Patient  Specialist or super specialist class Economical Status – Upper class or Middle  Independent practitioner or Urban working class or Business class patient Attached to hospitals (Gov or Private)  Physicians or Surgeon Well read and aware of Latest trend Promotional Aid used for Doctors  The objective to promote Pharma brands to the Doctors is to get their prescription  Most commonly used promotional tools to promote Pharma products to is as follows. Price level 2) Doctor level Type of Doctor. ii.of customers Clinical ion inClass) trials  Most commonly used promotional tools to promote Pharma products to doctors Symposi is as follows. other  Tools used for patients promotions. field  Patient Educations literature activity  Posters xv. Sponsors  Medical Camps hips 20 | P a g e . Involvem ent in  Gifts Brand 4) Patient level launch  Patients are targeted indirectly for brand promotions and  The best time to divert the patient’s attentions is when they are waiting in various consultancy for their turn. what Stickers  Understand type of the chemist is xiii. LBL 3) Chemist Level es vi.i. viii. Participat  What type he is serving (Doctors and Patient vii. iii. Visual aid x. Posters CME  Chemist LBL (Vernacular Language  Posters xiv. Physician  Bonus offer Medical s  Chemist Folder conferen Samples  Stickers ces and ix. Prescripti xii. um. Journal Gift advertise articles ments iv. on pad Referenc v. Catch cover Literature xi. website.Baidanath .  Neutraceuticals – Calcuim Sandoze  Herbal Medicines – Himalaya Products  Tools used to promote OTC products through Mass Media advertisements are.  Radio  TV  Print . 7) Price level 21 | P a g e . Sugar free  Food Supplements .Emails .  OTC drugs. Blogs 6) Packaging level  Packaging is important not only to promote OTC products but also ethical promotions. Idex.Horlics. Boost etc  Tonics / Chavanprashs . Move Crocine.Asprine.News Paper. environmental and chemical damage  To attract the customers  To build the perceived value of the products  To build customers trust on the products. natural .5) Masses level  Pharma products which can be promoted at mass level includes.Protein Powder. Zandu etc.  Packaging serves four purposes  To protect the inside products from Physical. Magazines etc. Corex.  Mailers  Internet Media . Product mix – As explained. Promotion at price level always carries a risk when the competitors reduce their prices. Various field activity involving the doctors like Brand launch in a particular area. 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. Various competitions at Regional.  During the launch campaign one must convinced and motivate the sales team regarding the new brand. ii. Medical camps etc.  Tools used to motivate the sales team i. 8) Sale team level  Sales team is the most important link between the company and the customers. 6) Product Mix The complete range of products present within a company is known as the product mix. First 5 prescriptions or maximum prescriptions in a stipulated period iii. there are numerous products present. 22 | P a g e .  Sales team are burden with more then 20 – 30 products. CME. In any multi brand organizations. Launch gifts to the sales team iv.  It is said the sales team is the eyes and the ears of the company. product mix is a combination of total product lines within a company. None of the organizations wants to take the risk of being present in the market with a single product. Zonal and national level. If the company has only a single product. First Prescriptions .  Product mix means selling the right product in right quantity at the right time to the right customer.  A successful Healthcare sales professional will sell all the products and achieve his targets  Sales professional who sells the product mix can achieve his rupee value target but, sales professional who achieves his rupee value target may not achieve the product mix. Why product mix is necessary  It ensures protection against changing market values  Keeps the right profit margin  Ensures optimum utilization of company’s distinctive technical know-how and production facilities  Ensure continuous supply of the key products in the market at all times  Strikes perfect balance between the quantities of goods produced and sold.  Helps company to strike an ideal balance between high margin and low margin products  Provides a balance between old and new products  Provides right direction for growth. 23 | P a g e 7) Promotional Aid Promotional Aid Most commonly used promotional tools in the pharmaceuticals industry are 1. Visual aid 2. Literature 3. Gift articles 11. Catch cover 4. Prescription pad 12. Journal 5. LBL 6. Flier 7. Brochure Visual Aid 8. 10. Physicians Samples advertisements 13. References 14. Participation in Stickers Symposium.,  Visual Aid or VA as it is commonly known, is a spiral bound material with Medical photo- mount stand there are several laminated page s with product messages 9. Clinical trials Advantages of VA: conferences  Ensure 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. This ensures Audio- visual presentation. The 15. doctors “sees” and “hear” at the same time. Bonus offers  Helps to create audiovisual impact, communicate message to doctor in a logical sequence  Helps to discuss many product at a time  Helps to skip the detailing of products not meant for a particular specialty  Very effective communicating tool 24 | P a g e Literatures and Competitors Literature Literatures:  A good input for detailing particular product in terms of prescribing information, dosages, adverse reaction features, benefits, contraindication etc. Competitors Literature:  It helps to convey the promotional message of competitors to the doctors. Through indication and variations references we can pass information to H.O. so as to develop counter attacks Leave behind card / Literature (LBL)  Helps doctors as a reminder for our product, in our absence. But it must be detail at the time of presentation  LBL is not meant for mass distribution, it is targeted towards the potential target audience.  LBL give specific information on the service or product.  Any literature which is given in person to the potential client e.g. MR gives the literature to the doctor after his/her sales presentation.  These literatures are not taken back by the MR but it is leaved behind so that the doctor in his leisure time can go through it.  Practically, the paper used for LBL printings is above 175 GSM and mostly it is a 4 colour job. Flier  Any literature which is distributed to masses i.e. for mass distribution.  The flier is usually used to pass on the information's for the masses, sp. Info on some event venue, tel. no. etc.  The fliers are usually distributed at the railway station, some local fair or some event or distributed by putting it in the news paper.  Practically the paper used for flier printings is less than 100 GSM, mostly 80 GSM maplito paper, may be one colour 2 colour or 4 colour job. 25 | P a g e 6 pages  Mostly all pages are bound together either simple binding or back to back pasting  Each page is about 175. expiry date etc. which he is extending to our products  To enhance the recall value of our product  To 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. manufactured date. composition.Brochure  This literature gives the in-depth knowledge of the service / product targeted to the potential client. Physician Samples:  Samples enable doctor to assess the physical characteristics of our product  To assess the efficacy of our products in various s indications  As a reminder  To fulfill the doctors need for his patients. Catch Cover and Physician Samples Catch Cover:  This tells you about the product details. 26 | P a g e .200 GSM (GSM is an acronym standing for ‘Grams per Square Meter) if it is a simple binding or for back to back pasting 150-175 GSM. colour. family members or himself and friends Gifts  Gifts helps to express our gratitude for the support of doctors.  Practically it is more the 4 . before you put stickers. 27 | P a g e . With bonus offer you must sale at least 21/2 times more compared to your normal sales. Stickers  It is used mainly as a medium for remembrance  The sticker ensure that products name is visible from the walls or from the place where the doctors can read the name  Don’t put stickers where there is already hundreds of stickers are stuck  Select a proper place where your sticker can be easily visible.  Sometimes helps you to boost sales.Bonus offer  It ensure better stocking of our product at the retail counters  It generates enthusiasm amongst the retailers  It takes care of increased prescription demand you have generated for a particular product. get the permission from the doctors to do so. eye level to the customer  Remember. Pharma sales representatives were once called "detail men” For e. Detailing involves a story or script that highlights the relevant points to doctors/customers to an extent that he starts prescribing Detailing has to be perfect and an ideal mixture of scientific information.  Detailing is a presentation of selling points in the most logical sequence to the customer  Sales promotion. 28 | P a g e . makes a presentation of such Product to a medical professional with prescribing authority. It is an integral part of personnel selling which is thoroughly rehearsed. "Detail" means that part of an in person. But when we details we actually advertise the product to particular customer to induce them to buy or prescribe . side effects. face-to-face sales Call during which a Sales Representative. sales presentation. including its label and package insert.Plain communication cannot create customer interest. Pharma sales reps were once called "detail men. who is trained and knowledgeable with respect to the applicable Product. benefits.g. quality of products and manufacturing techniques used To provide more mileage in short time.approved scientific information. or adverse events related to a drug are parts of detailing. benefits. When used as a verb. side effects. sales reps are as likely to be women as men." These days. Detailing is a preplanned effective communication activity done by pharmaceutical companies to educate physicians about products and to influence physician to prescribe company’s products.Detailing is one of the most important tool of Pharmaceutical Marketing and advertising.related to a drug. memorized and practiced so that when heard it sounds as its coming as one’s own talk about a product (like an actor in films or stage) Although script is written by someone else (product manager) There is difference between Plain communication & detailing . and the use of the applicable promotional materials. "Detail" means to engage in Detailing activities.9) Detailing Detailing refers to the activity of pharmaceutical sales representatives (reps) when they make calls to physicians and provide them with "details" -. or adverse events -. sales interview are the other names of detailing  Basically detailing means the communication of your message to the customer to increase the sales. approved scientific information. however. mistake to make. or should we wait until salient models emerge? How steep is the learning curve? What issues and trade-offs need to be considered in selecting promotion channels and optimizing resources across the communication mix? 29 | P a g e . However. This article helps pharmaceutical executives sort through the various options. medical equipment and biotechnology companies. memorized and practiced to an extent that when it is heard. it sounds as if it is coming out of one's own talk about the product.Objective of Detailing Detailing is one of the most important tools in pharmaceutical marketing and advertising. to induce them into buying or prescribing it. Being blinded by the latest technological bells and whistles and jumping on the next bandwagon would be an easy. we are actually advertising the product to a particular targeted customer. In today's scenario no one would buy a product until he or she is totally sold to it! Detailing is basically an integral part of personal selling which is thoroughly rehearsed. It is incredibly expensive And inefficient. companies are putting heightened scrutiny on the economics of their selling processes.  To make the product known to the doctor.communication and detailing. There is a subtle difference between plain . but potentially costly. but its purpose is to create a NEED and WANT in the mind of the doctor  This step is technically known as “comprehension” of the product to the doctor with a view to generate an urge in his mind to prescribe the product Face-to-face promotion is the dominant promotion tool for pharmaceutical. When we detail. Physicians don’t like it much. investigating the following key questions: Will there be a dominant approach among all these models? Will traditional ways of promoting the products be replaced? and if so. It provides a framework to put alternative approaches into perspective. Even though the script is written by someone else (usually the Product Manager). how? Is there a first mover advantage. (Exactly as an actor acts on stage or in films). it looks as if it is the MR's own. there is a growing level of discomfort with the current selling model. Investigating new concepts. At a time of increasing economic pressures. they find an abundance of new technologies and options. concise and logical and it must be enlighten  Detailing should contain the following:  What the product is? (Basic Product)  What it is used for? (Indication)  What it will do? (Action)  How it is better? (Comparison)  What are the benefits?  Thus medical detailing consist of Product Presentation and Motivation or Persuasion 30 | P a g e .  Indication in which the product is advocated  Benefits that the product can offer to the patients  Detailing should be clear.  It is a dialogue and not a monologue.  Name of the product “BRAND”.Principles of Detailing  Logical and sequential presentation  Logical build up of selling points  Fastening the minds of the customer  Hammering the key points  Giving proof for all statements whenever needed.  The MR builds the discussion with doctor on. Contents of Detailing  Medical detaining is the conversation between the doctor and the MR. Reason to adhere to the detailing stories or memories detailing  Helps to transfer the ideas from your mind to the minds of customer clearly  Covers all the point  It is complete  It is in logical order. drives doctor from one point to another  Sales executive can spend time on voice modulation and delivery of detailing  Saves time  Gives confidence 31 | P a g e . Eliminate the competition. The building of confidence vi. Interest. The “you” benefit v. The name of the product iv. The proper close The pre approach:  The stage of collecting specific information of customer before actually calling on him The approach:  Going near to your customer using AIDA principles and make your call effective The name of the product:  Mention your product name time and again to the doctor as it help in registering the brand name in customers mind The “you” benefit:  Highlighting the benefits of the product for doctors and his patients. Delivered with confidence. and should follow the “AIDA” (Attention.Detailing should be: Complete. and Action) principle Detailing sequence i. The pre approach ii. The approach iii. Conviction. Desire. Clear. 32 | P a g e .  Doctor always appreciates if we talk from patients angle and not from the angle of the company The building of confidence:  How confidant you are about yourself. your product and company. Present benefits v.  The 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 . Create interest and sustain it iv. Close 33 | P a g e . Get attention iii. Opening ii. This confidant will get transform into building up doctor’s confidence and therefore Objection handling become easier. Feedback vii.“Doctor May I get at least 5 prescription in this week from you so your patient will benefit from our product” Basic structure of a sales presentation i. this is the key to success The proper close:  The close is nothing but whether you have made any impact on doctor or not. Handle objection viii. Demonstrate vi. Don’t hurry and turn pages iii. Sound confident while making claims. Do not interrupt him. Let the doctor sees the visual and text matter ii. Control speed of your speech. articulate clearly. If doctor takes the literature from you and starts reading. Handle VA gently and with care vi. Give emphasis to points printed boldly ix. Modulate voice.  In handling VA the first thing remember is that detailing is an art. viii. Hold the VA at appropriate distance so that doctor can read it properly xii. Give brief pause between one product and another v. 34 | P a g e .  Important points on how to handle VA: i. Ask for doctors comments on some special points iv. Always use a pointer (pen is the best pointer and easily available) x. use it only to point xi. Do not run the pointer.10) Handling a Visual Aid and Art of sampling Visual Aid acts as the first impression of any pharma company. vii. do not disturb him let him complete it. and has to be done with lot of care and conviction.  Care means lot of practice and Conviction means with emotion. Distribution of samples with demonstration is a very important aspect of our job instead of just keeping samples on doctor’s tables. ii. 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. scoring taste. Always demonstrate colour. When to plan:  Planning has to be done in advance. Always demand prescriptions when you keep the samples vi. smell etc 11)Daily Sale call planning Planning Planning:  Planning can be defined as the ability of looking ahead. always tell that “ this product you can try on your next patient suffering from ___________ (condition)” v. It is advisable to use these samples in a judicious way to create an impact in every visit. vii. iv.  In other words.  The right time to plan is the previous night for the next day’s work How to plan? 35 | P a g e . Use demonstrating technique to make your product stand in doctor’s mind. Never keep the samples by telling that “here are few samples” instead. iii. planning is the thinking process. which helps us to anticipate our objectives of tomorrow and the tactics we will adopt to ensure achievements of these objectives.Art of sampling  Every companies give adequate samples to their sale steams but it is an individual who makes the difference with these samples in generating prescription i.  Before you enter doctor’s clinic / chamber.  Always plan little more calls so as to reach the objective you desire. what was the discussion in earlier visits. To whom we are selling (Customer) iii.  You can take the steps given below (under the heading “Write down the following things in daily call companion”) when you write down your plan.e.  Always refer to your dairy when you plan. 36 | P a g e . any specific requirement we have to satisfy. last call samples will go to the bottom and first call sample will be at the top.  Before planning we should have prescription habits of customers (our / competitors) the specific day they meet.  Set the objectives for the day and each call. What to plan  While planning you has to effectively utilise the knowledge and information we have. customer and competitors. Foundation of every plan is knowledge and information We must know: i. Against which we are selling (Competitors)  Hence we should know our product.  Arrange the samples and inputs in a proper way i. What we are selling (Products) ii.  This will help you to minimise your mistake you may make at the same time reduces the deviation in your work.  Carry a small napkin in a bag to cover the samples.  Always plan for whole day (morning / evening) instead of planning for only one session. keep the samples above the napkin so that you are not confused inside the chamber. Write down the following things in daily sale call companion  Day and date  Area to be worked.  Samples to be given.  Any other promotional inputs to be given  Any other thing which you have promised the doctor earlier. a) Things done well:  Which statement arouses doctor’s interest like promotional message. dosage etc?  Detailing story. Rehearses the talk in the mind. which. indication.  Doctor’s name and speciality in a sequential order i.  Particular strategy b) Things not done well:  The mistake made in your detailing.  Products to be detailed in a sequence.e. you are going to have with doctors. Post calls analysis  Analyse every call immediately before you call on the next doctors. the order in which you are going to call on them.  Names of the chemist and POB objective  Name of the stockist booking / collection objective.  Names of the institutions. 37 | P a g e .  You have to analyse the things done well and things not done well so that you can take immediate corrective measures. Qualities of a successful Sales Executive (MR) 38 | P a g e . 12) Tips for becoming a successful Sales Executive what the doctor gains? Tips for becoming a successful Sales Executive (MR)  To become a successful Healthcare Executive one must follow and understand the following four keys. How to increase the business by meeting the doctor B. A. The key factors to become a successful Sales Executive (MR) C.  Any wrong statement about the competitors. What you should know before going to field? D. which he has not liked. Any objection not handled properly.  To make you more effective plan the work and work the plan. Users of product i) Usage of product:  Customer should use the product more often  E.g.g.g.  E. i.Core Customers Core Customers:  Identification and quantification can be made and continuously update with help of  Retail surveys 39 | P a g e .g. Uses of product iii. today only one doctor is prescribing Zoxicillin in a territory.A) How to increase the business by meeting the doctor  MR shall meet the customer repeatedly and periodically to promotes the company’s product. Zoxicillin is being prescribe by a doctor frequently in many indication e. RTIs.g. UTIs. UTIs. Usage of product ii. Skin and soft tissue infections etc. iii) Users of product:  Total number of customer who can use the product should continuously increases. Zoxicillin is being prescribe by one doctor frequently may be in one indication e. tomorrow it should be 10 doctors and so on and so forth. by keeping 3 “U”s of products in mind. B) the key factors to become a successful Sales Executive (MR) . ii) Uses of product:  Customer should use the product in variety of indications more frequently  E.  Objective is to continuously increases and upgrade core customer’s list by converting 2nd line doctors to core customers.middle class / upper class 40 | P a g e .  Always remember that 20% of the total customers in the territory give an 80% of the business  Hence these 20 % customer become the core customers not only to our company but also for many other companies.  Ensure the core customer for a particular product or brand must write at least that product or brand in more quantity. C) What you should know before going to field? 1) Your Product / services:  Understanding the product well  Which product you are going to sell?  Why you want sale?  To whom are going to sell?  Selection of Right customer for right product 2) Your customer:  Qualification  Specialty  Class of patient . Find out who are the potential prescriber  What is their capacity to prescribe a particular product or brand. i. female. adult. Should take initiative to learn about the competitions activities for efficient and logical handling of the objections v. Should be sincere and hard working ii. vii. benefits of his products vi. Attachments  Visiting Time – for patients and for Sales Executive D) Qualities of a successful Sales Executive (MR)  Given below are few qualities which every MR must possess.  Where he is practicing. potential desires and behavioral patterns iv. Must understands the selling features. Big / small Hospital. male. Govt. Type of patient e. poor etc.Private practice.g. rich. stockist and colleagues to ensure their full co-operation in establishing the product x.  Type of practice . Promptness in handling all quality complaints diplomatically in the field or in the territory. Excellent human relationship with doctors.Rural area / Urban are Elite area. Should have the ability to analyses and correct his mistakes. Must have power to grasp the technical aspects of his products as well as that of competitors iii. young. Must have knowledge about his customers habit. Loyalty and integrity in continuously improving the image of the company 41 | P a g e . chemist. Foresight to maintain adequate stocks of his product with the stockist and chemist xi. xii. Hospital. He must continuously secure guidance from the superiors without any hesitation viii. child. Should be clear about company’s mission. objective and clear perception about a particular products for selling to a particular customer ix. old. it refers to only one thing i.  To develop the rapport building we must  Expose the right product for right doctor by regular visits.e. Ownership feeling towards company’s property. Regularity of clock in submitting all reports. greets you very nicely. xvi. xv. Pawar does not do all these things but writes your prescription in better quantityTherefore we can say that you have better rapport with Dr. In today’s competitive environment doctors have many options to satisfy the needs of their patients hence generating prescriptions become tough. Kulkarni in your territory. This relationship does not refer to how close we are to the doctors. xx. Should be honest in his day-to-day activities. An appropriate behavior pattern during office hours as well as out of office in a manner. special information and communication. Besides knowledge and skills. skills and knowledge xvii. 13) Building rapport with customer Any pharmaceuticals company can exist survive and grow in a particular geographical area only on a piece of paper which doctors write i. prescriptions of your product. Kulkarni. offers you coffee. Must complete the sale by ensuring the inflow of payments on time. Pawar as compare to Dr. how effective we are in generating prescriptions. which is not indetrimental to the reputation and image of the company.g. xix. sales competitions and training programs. The capability to of increasing the sales of the company s products to the level desire by the company. xviii. The relationship with doctor means that the influence we exercise on the doctor to generate prescription for our products.e. 42 | P a g e . Pleasing personalities with neatly dressed. xiv. Enthusiasm to participate in all special assignments. Dr. Should have positive attitude. we have to develop good rapport with the doctors. shine on shoes and smile on face. E.xiii. enquires about your family gives his best wishes for future but doesn’t write any prescription Dr. That is nothing but rapport building. Do I make use of all the promotional inputs provided to me in generating prescription? vii.  Discuss the right product. VA  Do not run the pointer use only to point  Hold the Laptop / VA at appropriate distance  Handle objection effectively 43 | P a g e . opening a bag and taking out Laptop.  Avoid serious error by which he will get angry e. Do I call on these doctors at right time. Do I make my presentation effective? vi. Do I demand prescriptions from doctors? 14) Vital 3 Minutes This is the duration a customer will give to you for your sales presentation  Waste no time in taking a place.  Be confident with handling the Laptop. Have I selected right product for the right doctor at the right time? iii. benefits etc. with right implication. Proper objection handling  Converting the doctor’s prescriptions from the competitors so as develop effective business relationship with the doctors. Am I providing them appropriate scientific information’s.  While analyzing you must ask the following question to yourself: i. which will help them to satisfy their patient’s needs? iv. right frequency? v. with right customer. CD. touching articles on the table. disturbing his set up etc. Brochure VA (visual aid) etc.g. Do I have right doctors in my list? ii. natural medicines. Do not detail in monotony  Do not make noise of bag while leaving. Family physicians General Practice in Ayurvedic. No. cheerfulness. A 1 2 a Type of Doctors Degree Type GP (General Practitioners / physicians) Bachelor of Medicine MBBS and Bachelor of Surgery Non MBBS Bachelor of BHMS Homeopathy and Bachelor of Surgery b BAMS B BDS Bachelor of Ayurveda and Bachelor of Surgery Bachelor of Dental Surgery Specialty (Job Profile) Medical Graduates General Practice in Allopathic. A marketing representative always Remember that he must radiate sunshine. confidence and conviction in the clinic 15) Sr. Family physicians General Practice in Homeopathy. Family physicians Deals with diseases / disorders of teeth 44 | P a g e . 45 | P a g e . 46 | P a g e . 47 | P a g e . 48 | P a g e . 49 | P a g e . on a basis of the percentage of total turnover of products. 5–15 depending on the city area).16) Pharmaceutical Distribution Drug distribution in India has witnessed a paradigm shift. a company may work with a total of 25–35 CFAs. 50 | P a g e .  CFAs: These organizations are primarily responsible for maintaining storage (stock) of the company’s products and forwarding SKUs to the stockist on request. Now they have been replaced by clearing and forwarding agents (CFAs). who can simultaneously handle more than one company (usually. pharmaceutical companies established their own depots and warehouses. They pay for the products directly in the name of the pharmaceutical company after 30 to 45 days. Before 1990. once or twice. Most companies keep 1–3 CFAs in each Indian state.  The retail pharmacy obtains products from the stockist or sub stockist through whom it finally reaches the consumers (patients). The CFAs are paid by the company yearly.  Stockist: is the distributor. On an average. and may go up to even 30–50 different manufacturers. Companies bid for the tenders passed by these institutions like major PSUs (Public Sector Units) including NTPC. The remaining 97% market is completely controlled by the stockists (There are many layers of stockists or distributors based on the volume and region they operate in). Distribution for institutions (divided into state funded. 51 | P a g e . central funded & large hospitals) happen either through stockist or directly from the company CFA . Sales representatives do rarely come and talk with the concerned distribution managers in the retail chains to sell their products. Chemist: Chemist or retailer is the last or the end part of the chain of distribution. They can procure the stock from the stockists registered in the association (AIOCD) only (Manufacturers would not sell their products directly to retails chains). BHEL etc.17) Chemist Organized pharmacy retail sales in India are only 3% of the total sales. Institutional Supplies Institutional supplies are 7% of the total drug sales in India.  Remember retailer doesn’t mean the Proprietor (owner) alone. Retailers may see you as one help him earn extra profits and information. Chemist provides the medicines to the buyer.to meet this demand Therefore to honour the generated prescription demand – Retailers Assistance is vital . the pharmacist and the cashier / accountant.  The 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.  Talk to him about new products trade offers etc.  Retailer’s Assistance will be forthcoming only if he sees you as an “ASSISTANT” ready to help him.  Do not ignore any one. the counter clerk. prescribed by the doctors. it means his assistance too.  Thus the objective of the retailer to see any Companies MR is as one who always helps him to earn more profits and give information about the products.To maintain stock pressure – Retailer’s Assistance is equally necessary. thereby he is an important aspect in getting the sales. Function of the Chemist 52 | P a g e .  Chemist realises the prescription written for our product. Talk to each one politely. Relation of MR (Company) and Retailers  The only way to meet the target is to generate the prescription demand and by maintaining Stock pressure at the retailer. to know how our competitors are doing  To make it sure that chemist is not running short of any of our products for which he receives prescription. Chemist / Pharmacist fills up the prescription written by the doctors  Makes the availability of products for patients for which he stores the medicines in the shop  Honours the prescription written by the doctor  Is the link between the patient and doctor. sometimes he helps the patients in understanding the dosage and administration of the prescribed medicines.  To know type of the doctor in terms of qualification and practice in your territory  To know the potential of a doctor in the territory Prerequisite before visiting chemist  A copy of recent price list along with latest information about bonus offers / schemes provided by the company  POB (Personal Order Book)  2 – carbon papers  All product stickers or information literature 53 | P a g e . Need to meet the chemist/retailer  To inform the retailer about the availability of company’s products and its salient features.  To book the orders for our products  To get the feedback regarding any near expiry goods.  To know which doctors is prescribing what?  To know the secondary sales of our product s.  Ready stock-provided.  Try to do more personal order booking.  Don’t start talking about other retailer or doctor with chemist (gossiping) 54 | P a g e .  Get the feedback from the chemist regarding doctor’s preference for writing specific molecule or products.  Ask the chemist to quantify the sales of the product s (so you can demand the prescription from the doctor by quantifying).  Don’t ask lengthy questions to the retailer. when he is busy.  A small diary / note book to note the observation (Daily call Companion) Do’s and Don’ts at the chemist Do’s:  First take out the order book and ask about if any order he his having for you  You should inform the chemist about new / old products we are promoting and the product name should and must be written in the chemist book along with stockist’s name. which will keep you in touch about the secondary sales and the stock position at stockist also (which will reflect your concern for your products. probably he may not answer or will not be able to give correct information. Don’ts:  Don’t touch any of the medicines. if you are visiting a new/ remote area and launching a product. prescription at the counter without asking to the chemist or patient.  Keep asking price of competitor’s brands their composition and strength.  Develop a rapport with the chemist at personal level by knowing the name of the person and remembering it.  Later you can call him by name once you develop a rapport with him. which in turn will enhance your image at stockist and retailer level). Reasons for not getting order 55 | P a g e . don’t buy medicines personally but tell DR to prescribe it to patients. So that you can plan your future course action plans.  Ask for an order – It is your BIRTHRIGHT  The stockist salesman is not our competitor  But we are reluctant to book an order.Rather then closing creating a awareness is more important here Eg. which you will be receiving. Don’t enter in to the argument if you have any problems regarding availability. by which you can know that which of your doctor is prescribing which product and in what quantity? . to present to the doctor. Order : Missionary salespeople are the one who do not close the sale but persuade the customer to promote sellers brand. Important of retail audit / survey you can determine the actual secondary sales trend for your product. keep pressurising him with persuasion.  Plan for the promotional strategy and inputs. which can be actually known and its utilisation for our benefit can be done.medical rep. Utilisation of Retail Audit information  Determine who are your competitors  By how much margin the competitor/ s is leading? Or who are behind you and by what margin?  Which doctor is prescribing which brand? In what quantity?  Once you know the preferences of the doctor decide the product/s to be promoted to the doctor. It will help you know the potential of the doctor / market. having forgotten the art of taking an order.  Continuously keep talking on calling chemists to ascertain prescription flow for our products or for any prescription shift towards other brands.  Don’t open your visual aid at the chemist counter in presence of other companies MR’s. its quantity and frequency of prescription.The preferences of the prescribers and his prescribing habit in terms of molecule.  Prescription generated is honored in Toto. companies cannot take the risk of losing the sales.Ours / competitors and get realistic feedback 18) Stockist All India Organization of Chemists & Druggists (AIOCD) has over 5.  The retailers says he has already place the order with the Stockiest salesman Summery  Doctor’s coverage and retailer’s coverage both are equally important  Qualitative and quantitative improvement in retailer coverage ensures. They may face a ban from the stockists and considering the substitutes available for each molecule. 56 | P a g e .  Adequate stocks / display at the retailer shelves.  Through knowledge of what is happening in the market. which gets honored at the chemist counter.5 Lac members from retail chemists and pharma distributors/stockists. All of will agree that y MR have generated the prescription. His basic job function would be to satisfy the need of the retailers and he has to deal with company as per the company rule. We don’t spend enough time – we are in a frightful hurry. We don’t call at the right time  We don’t have the time. Stockist plays a very powerful role in the pharma distribution in India.  Preempt competition  Corrective action on time  Asses strategies . Companies cannot bypass stockists and sell directly to institutions or retail chains. But who serves the chemist? Or who takes care of the demands generated by you? It is the stockist hence proper functioning of stockist plays an important role A stockist is a customer who stocks the products of various companies and sells to the retail chemists. Stockist operations  You have to coordinate very effectively and regularly with your stockist.Need of stockist  Our country has a wide geographic borders and our success will greatly depend on how powerful is our distribution system. Area Manage.O. Criteria to appoint a stockist  Appointment of stockist plays an important role in prosperity of your sales therefore his appointments should take maximum time and care so as to find promotion in future.  You must be able to manage his purchases. his services and his payments. 57 | P a g e . for the smooth operation. Time taken for executing the orders. your superiors and H.  Earlier company used to operate with few stockist and mainly retailers used to come and buy from them but today due to fierce competition even stockist has to go to the retailer and book the orders and supply them. Regional Manager.  Now days there are more than 4-5 chemists even in the micro interiors and we have to serve them very effectively. Managing the purchase  It is observe that sometimes there is loss in sales because the stockist does not have adequate stocks when there is demand. the pharma business in these place have started flourishing. Regularity and frequency of visits Credit facilities extended.  The first step to be taken before appointing a stockist is to undertake a thorough chemist survey  MR must collect the information through chemist regarding stockist who covers that area in terms of.  As majority of companies have started covering even micro interiors.  This can be done by regularly monitoring the stocks position or stock and sales statements. goods return. Stock and Sales Statement  It gives you a clear picture of personal satisfaction. regarding expiry. so that you can evaluate the impact of your work and take corrective measures. Managing the payments  Every visit you should ask for payments which are overdue. analyse the factors like secondary sales. average etc. At any given time ensure that market should not suffer when you take an order. accordingly. breakage or any damage of goods. and is supplied by the stockist on time.  The sales statement must reach your Area Manager and since you prepared the statement from your entire stockist. it is always better to inform the stockist regarding the due dates of payments instead of spending your time when the bill overdue. receipts of goods sales.  You have to ensure that he gives you copies of the invoices or some information regarding town wise sales. inventory etc.  You can improve the services by more opportunities of personal order booking (POB) from various chemists and give it to the stockist.  The previous stock and sales statements record should be maintained by each one of you to find out the trend or your progress.  He should also take care of genuine complaints from the retailers.  Stockists should ensure that he parts away with bonus offers to the retailers.  Use the following formula Product requirement = Secondary Sales x 2 – (Stocks in hand) + (stocks in Transit) Managing the services  You must ensure that stockist’s salesman regularly book the orders from retailers. return of goods. for our products.  Remember the sales is not done or completed till the realisation of payments. 58 | P a g e . 100/2) Achievement:  Result obtain by us against a specific – target  E. 85 /3) % Achievement:  Achievement / Target x 100  = 85/ 100 x 100  = 85% 4) Growth:  Increases in the sales size as compared to previous specific period. Negative growth implies decrease in sales.Mathematical formulae and calculation  Since our ambition is to progress in this profession. we must remember the following terminology through out our life. In other words to achieve a specific objective in a fixed time span  E. A = Rs. T = Rs.g.g. 59 | P a g e . 1) Target:  It is an object or mark to hit. Average sale per Man per month 60 | P a g e .000 20.March 2006) = Rs. 100.=Current years Sales – Last Years sales x 100 Gr o wt h Last Year Sales Gro wth Or = Current years Sales – 1 x 100 Last Year  The period remains the same Sales  LYS (Last Year SalesApril 2004.000  Then Gro wth = 100.April 2005. 20.March 2005) = Rs.000 PCPM: 400%  Per Capita per month i.e.000  CYS (Current Year Sales.000 x 100 = 20. Although geographic considerations play a role in setting boundaries.It is defined as planning. Major accounts are also termed as ‘key accounts’ They are usually called on either by special sales people “senior sales representative” or “key accounts manager”. and control. MR is very bedazzling part of the industries as he is sensibly responsible for existence of industry in market. or by regional or district sales managers. of sales persons activities with the goal of realizing the sales and profits potentials of their assigned territories.19) Territory management The word MR is stand for Medical representative. sales territories are primarily based on customer grouping. Should the sales executive assigned a territory on the basis of the geographically area or customer base? What if a customer has multiple plant location? Or the client shifts its business area ?Customers whose significance to the company’s business requires special attention and experience.These are also called “House” or “National” accounts those served by home office personnel or executives. implementation. Large accounts involving special arrangements in terms of pricing. central buying offices of a multinational firm. Salespeople are not only responsible for individual customers (account management) but also responsible for a group of accounts (territory management).g. 61 | P a g e . Almost each and every Pharma companies require some professionals who are expert in communication skill and marketing strategies with militant nature. Market value is high so existing in market is very difficult and essential. People with gibberish nature have no space in this field. For e. credit or product design. The type of product / product lines 62 | P a g e . chemists stockist institutes etc with specific demographic requirements H.Q:  In a given territory the basic town is known as H. Ex-station:  Ex-station is a place where he can go to a particular place and return on the same day after meeting the customer. a prospecting salesperson can handle a larger territory assignment then a person who must provide full service for each account. Factors to consider in establishing ‘Territories’ • Sales person’s workload and nature of the job. (Head Quarter) town.What is Territory?  Territory of MR is a complete geographical area assigned to a particular MR which comprises of potential customers like doctors. for e. Out-station:  Out-station is a place where he can go to a particular place and stay there and visit the neighbouring territories.g.Q. Objectives. Territory management can be defined broadly in terms of: • Planning (Analysis. • The desired intensity of the market coverage / challenging territories • Channels of distribution available and transportation. • Servicing requirements – established and new accounts have servicing requirements that are based on both the past volume with the company and their unique needs and problems. • Salesperson can be assigned to more challenging territories in accordance with their performance. 63 | P a g e .• The type of competition faced by the company in each territory. starting from corporate objectives. system • Sales potential and servicing requirement. which is derived in top-down manner. Limited potential territories can be used as training grounds for new members of a sales force. reporting) • Control (compares intended and actual results with a view to taking corrective action) Planning Analysis: • Account load – the number of actual and potential customers assigned to a salesperson • Account potential – the share of an account’s business that the firm can reasonably expect to attract. Objectives: • Concern here is the sales volume and market share goals in the territory. Strategies. Tactics) • Implementation (achievement of new business targets. • New business development should be a continuous • Undertaking. Implementation • Establishing customer base. problems or corrective actions. • Maintaining a steady flow of reports to the home office about sales results. Prioritize Your Activities to Produce Maximum Results 64 | P a g e . • Another important ingredient in implementation is ‘reporting’. avoid repetitive tasks. • Proper scheduling or sequencing of appointments. promotional. Tactics: • Routing and scheduling task. with a view of taking corrective action where required. • Designing a sales person travelling plan or the sequence of location to be visited (known as ‘Routing’). • Customer satisfaction and maintaining long term relationship are among the foremost concern of the territory manager. selling and servicing these accounts is the principal act of territory activity. delivery terms.Strategies: • Have to work on various strategies like pricing. payment and credit terms. Control • A feedback process • A comparison take place between intended and actual results. intensity of territory coverage and minimizing non-productive time. your first priority should be to introduce yourself to every single one of your customers. Once you have met all of your existing customers. If they have been managing your sales team for any period of time.How you prioritize your sales territory management activities depends upon whether you are managing a territory that has existing customers. Their answers will provide you with a template for successfully managing their (and other) accounts. satisfied customers are usually delighted to share their positive experience with others. it can really jump-start your relationships with the affected customers. It also helps you draw any festering problems out into the open. if you can isolate and solve the problems that are causing the dissatisfaction.  This same approach can also be effective for customers that have been reducing their purchases from your company over time. or whether you are building your customer base from scratch." Then. It is never much fun to listen to people complain. ask these happy customers for referrals. regardless of whether you have contributed in any way to their happiness! Happy.  Once you have compiled a list of target prospects. you can ask. drill down (with more questions) to determine just what has made them so happy. determine which ones you will pursue first. you can produce a rapid and substantial boost in sales. they should be able to suggest some good target prospects. If you can address the problems quickly. Which target prospects have the greatest potential to purchase the largest amounts of products and services? Which ones are likely to be "quick closes"? If you have both types of target prospects on your list. If you manage a territory that has existing customers.  This should be a pleasant. "Would you mind sharing with me how you think my company's relationship with you has been going so far? What have we been doing well? Where could we improve?"  Collecting this kind of feedback is a great way to start relationships with customers. But. as you are chatting with your customers. low-key introduction along the lines of. the next step is to identify target prospects in your territory Start by checking with your manager. Also. "I just wanted to introduce myself and see if there is anything I can do to help you. If you find customers that are really happy with the service your company has provided. pursue several of 65 | P a g e . or customers that have stopped ordering completely. their prescription habits. • To be successful in your sales territory its important to know which customers drive you more business. • Sales representatives in the healthcare industry are expected to manage their “territories” as if they were running their own business. That makes face to face meetings rare and precious when you get a chance to have one. Once you have exhausted available referrals. important places important institutions.but tailor these activities to attract the attention of your target prospects. their strengths and complete details about their activities. But those rabbits sure taste good in between the elephants!"  When you are ready to begin pursuing your target prospects.each type at the same time. so that you can match your selling style to it. • One major goal of a medical sales representative is to be seen as a valued consultant by Doctors • Doctors typically have full day schedules. with no direct access and they may frequently need to reschedule appointments due to medical emergencies. If they do. addresses and appropriate visiting time.Name of the competitors in the territory. Prerequisite for territory management To have complete territory knowledge MR must know the details pertaining to the territory lay out. proceed with the other activities in your prospecting plan . what their “buying” style is. start by asking your existing customers whether they know anyone that works in the target organizations. Convenient routes of travel and minimum expenditure of time and expenses for optimum coverage of the territory. Medical Reps Must have a database of: • Customer profile • Product profile: all studies . "Elephant hunting is great. way of conveyance etc. ask for referrals. all information about the product 66 | P a g e . qualification.Total number of customers of different categories. In the words of a well-respected executive that I used to work with. • Doctor’s information and his field of specialization • Must have detailed information about how your drug can be helpful and how it differs from other drugs. • Should know details about the disease • It is helpful to take advantage of certain events such as knowing the doctor birthday and to time your visit at that day bringing a small gift with you • In order to get sales the medical representative must – • prescribe his products • To greet him upon his visit. • To understand the properties of his product over competitors’ ones. • Feedback 67 | P a g e . 20) IS.Doctors. Expense Statements iv.  So that both the H.DCR ii. Master Call List (MCL) or Important Call List (ICL).O The important Information System  Formats are as given below. Standard tour program.O. sales market feedback the company has develop the information System  IS contains various systematic and scientific formats which can give all the required information form the field to H. O and the field staff can work smoothly. i. and stockist iii. area of practice etc. Daily call report . name. specialty. Monthly sales Analysis report 1) Daily Call Report (DCR)  Contains all the daily activities done by sales executive  Gives entire details and picture of implementation of tour plan  Gives picture of number of doctors met. of each doctor  DCR to be sent on daily basis to HO 68 | P a g e . Tour Report and fare chart v.Information System  To keep a tract on daily activity. qualification. institution. chemist.  Thus these formats are very important links between the field people and the H. Name of Doctor MCL No. of doctor met with specialty 69 | P a g e . Any discount offer to doctor iii.Daily Call Report SE Name :____________________________ Date:__________ HQ________ Sr. No.No. Total sales generated for that month ii. Degree Morning Speciality Last Visit 1 2 3 4 5 6 Evening (After 4 PM) 1 2 3 4 5 6 Work With Name __________________________ Signature________________________ Remark of Superior Any Special Observation Signature of SE _________________ 2) Monthly Report  Collection of data like i. Of Doctors Met Morning Evening HQ_____________ Promotinal Material PS LBL Gifts Discount Offer Total Sales 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Total Average Any Special Observation Signature of SE _________________ 3) Tour Report  This is an important tool for planning 70 | P a g e . gifts LBL etc. Impact of promotion strategies and doctors response vi. Call average v. vii. Details of competitors viii. All this above data should be filled and posted to HO on or before 10th of every month Monthly Report Month________________ 2004 SE Name :____________________________ Date:_____________ Day No. given to doctors. Record and frequency of promotional material like Physician samples.iv. Name SE:____________________________ MCL No. Specialty vi. Date:_______ Tel Clinic Res. (Clinic and Residence along with mobile no. HQ iv. supporting is a must 71 | P a g e . Plan your tour in such a way to cover maximum no.) MCL has to be updated and submitted to HO after every 6 months. HQ_____________ Mobile DOB 5) Expense Statement  Give clear details of expenses day wise. Qualification v. Address and Email Telephone Nos. of doctors in the area having high market potential and require less travelling  From one doctor to another  From one ex station to another ex station  From one out station to another out stations 4) Master Call List (MCL) or Important Call List (ICL)  This is a very important format  Contains selected important core doctors list of a Sales Executive territory  The doctor name has to be entered with the following details i. Name iii. MCL / ICL code ii. Full Address Master Call List ii. HQ Wise  For each claim. 1 2 3 4 5 6 7 8 9 10 Doctor Name Degree Speciality i. g. STD call made to HO. Railway. E.  Expense statements to be posted to HO along with the monthly report. Bill of photocopy. postage charges etc. Station /out station visits. bus ticket for Ex. 72 | P a g e .