Sales Force Effectiveness

Published by: Datamonitor

Published: Sep. 29, 2008 - 91 Pages

Table of Contents

CHAPTER 1 EXECUTIVE SUMMARY

Scope of the report

Chapter summary

Key findings

CHAPTER 2 SALES FORCE EFFECTIVENESS IS EVOLVING

Promoting branded pharmaceuticals is increasingly difficult

Current drivers of the sales force effectiveness evolution - why traditional models no longer work

Doctors are closing their doors to pharma sales reps

Prescribing decisions are no longer in the hands of physicians

Physician perks have cast reps and the pharma industry in a poor light;

Physicians overwhelmed by frequency of rep visits

The US Prescribing Data Restriction Program may force Pharma to use new physician targeting models

Poor public perception of the pharmaceutical industry is hindering sales and marketing efforts

Government and payer cost-cutting is putting pressure on Pharma ROI

P&R restrictions impact Pharma's sales and marketing operations

Pharma must address the needs of emerging stakeholders

KOLs endorsement is key to a drug's survival

As pharmacists' responsibilities grow they should be considered as more than simply drug dispensers

Pharmacists become prescribers

Growing power of pharmacist substitution

Nurse practitioners have the power not only to prescribe but also to influence drug formulary inclusion

Patient-centric healthcare is the future

Sales force assistance with patient compliance programs benefits all stakeholders

CHAPTER 3 SALES FORCE EFFECTIVENESS MODELS

Evolving practices in sales force effectiveness

Establishing a new model that is both efficient and effective

Network intelligence is a key factor in designing new sales models

Performing network intelligence through patient-flow potential data helps to validate referral data gathered by reps

Key account management, the new buzz word in SFE-based selling models

Takeda revolutionary move to KAM

Recordati's KAM model gives representatives more responsibility and freedom

Abbott implements a KAM sales model to adapt to the changing dynamic in healthcare systems

Service model - offering value-added services

Tools that add value to sales force effectiveness models

eDetailing is underused in its current format

Live virtual eDetailing

Scripted eDetailing

Website linked eDetails

eDetailing enhances prescriptions of Merz's long-standing antifungal agent

Reaching physicians through electronic Continual Medical Education (eCME)

Criticism of Pharma-sponsored CME has led Pfizer to withdraw from sponsorship

PDAs and tablet personal computers - the new sales aid?

Social media strategies focused on increasing share of voice

CHAPTER 4 OPTIMIZING SALES FORCE EFFECTIVENESS

Sales forces are becoming leaner and more efficient

Adaptation of sales force effectiveness to a rapidly changing healthcare environment

Scientific/Medical Liaison Officers - a much-needed role to address widening stakeholder needs

Accurate segmentation is a key factor in the effective deployment of sales and marketing resources

Optimizing sales force size

Product lifecycle sales strategies need to be realigned to consider current SFE conditions

Cost-cutting and lack of adequate resources has led to co-promotion and outsourcing agreements

Co-promotion - to be successful good communication between partners is paramount

Outsourcing sales forces is a logical step for Pharma to maximize market penetration and cut costs

Optimizing return on marketing investment

Monitoring ROI - the way forward

CHAPTER 5 BIBLIOGRAPHY

Publications and online articles

Conference literature

Datamonitor reports

APPENDIX

List of Tables

Table 1: Pharma cost cutting strategies, 2007

Table 2: Results of Recordati's KAM model assessment

Table 3: Proportion of physicians practicing in the US by type, 2008

Table 4: Datamonitor exchange rates ($)

Table 5: Examples of pharmacist prescribing in the US and Canada

List of Figures

Figure 1: GlaxoSmithKline's growth in marketing yield and profitability, Q3 2007-Q2 08

Figure 2: Decrease in primary care product details made by reps in the US, 2003-07

Figure 3: The public struggle to trust pharmaceutical companies

Figure 4: Global cost cutting exercises in the pharma industry

Figure 5: Key stakeholders Pharma must interact with

Figure 6: How Pharma segments responsibility for KOL relationships

Figure 7: Global pharmaceutical sales models

Figure 8: Remapping of key stakeholders in the UK healthcare market

Figure 9: Key account management model framework

Figure 10: Advantages and disadvantages of a KAM model for Pharma

Figure 11: Key characteristics of high-value customers identified by Abbott

Figure 12: Results of Abbott's' KAM model were measured using concrete and soft measures to determine return on investment

Figure 13: US primary care physician's ratings of rep services, 2008

Figure 14: Doctors' preferred method of when to conduct an eDetail

Figure 15: Drivers and resistors of eDetailing

Figure 16: Merck & Co.'s eDetailing service

Figure 17: Different eCME options offered by the American College of Physicians (ACP)

Figure 18: Segmentation strategies in sales force effectiveness

Figure 19: Minutes per rep product detail: primary versus secondary care

Figure 20: Segmenting physicians by prescribing practices

Figure 21: Sales force effectiveness lifecycle management

Figure 22: Proportion of involvement of managers from different business units in a co-promotion (%)

Figure 23: Methods of measuring ROI for sales force effectiveness

Figure 24: New product launch metrics for assessing the success of promotional efforts

Abstract

• Understand why sales force size and structure in the pharmaceutical industry is changing
• Identify the opportunities to improve promotion through targeting emerging stakeholders
• Assess new sales models that Pharma companies are now implementing to improve sales force effectiveness

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