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Published by: Business Insights
Published: Jun. 1, 2003 - 148 Pages
Table of Contents Executive Summary
- Report outline
- Understanding sales force structures and strategies
- Does sales force expansion ensure improvements in productivity?
- How can sales forces optimize physician targeting?
- Is there an optimal sales force structure?
- Is eDetailing the future?
- Leveraging sales and marketing capabilities to optimize product uptake
Chapter 1 The need to optimize sales force
- efficiency
- Introduction
- Pressures to maximize the efficiency of pharmaceutical sales and
marketing
- Healthcare cost-containment
- Growth of the generics industry
- Increasing R&D costs
- M&A
- Costs of sales and marketing
- Sales and marketing spend of pharmaceutical companies
- Physician detailing
- Sales force size
- Product growth prospects
- Rep training
- Level of technology
- Optimizing sales force ROI—the key to success
- Physician detailing: declining ROI
- Optimizing ROI through effective sales force structure and strategy
- Sales force structure
- Sales force targeting
- Measuring sales force ROI
- Product sales data
- Internal IT data
- Reps’ targets
- Qualitative assessment
- Best practice in measuring sales force ROI
- Report methodology
Chapter 2 Analysis of sales force structures
- in key markets
- Introduction
- US sales force structures
- Key findings
- General trends
- Sales force size
- Sales force structure
- Technology uptake
- Japanese sales force structures
- Key findings
- General trends
- Sales force size
- Sales force structure
- Technology uptake
- French sales force structures
- Key findings
- General trends
- Sales force size
- Sales force structure
- Technology uptake
- German sales force structures
- Key findings
- General trends
- Sales force size
- Sales force structure
- Technology uptake
- Italian sales force structures
- Key findings
- General trends
- Sales force size
- Sales force structure
- Technology uptake
- Spanish sales force structures
- Key findings
- General trends
- Sales force size
- Sales force structure
- Technology uptake
- UK sales force structures
- Key findings
- General trends
- Sales force size
- Sales force structure
- Technology uptake
Chapter 3 Maximizing sales force return on
- investment
- Introduction
- Key findings
- Optimizing sales force ROI
- Model for measuring sales force ROI
- Measuring field force productivity
- Model for measuring ROI
- Optimizing ROI in sales force size
- Trends in sales force size
- Implications of sales force size for ROI
- Sales force characteristics
- Rep type
- Market competition
- Recommendations for optimizing sales force size
- Optimizing ROI in sales force structure
- Trends in sales force structure
- Structure by target audience
- Benefits and future issues
- Determining the target/universe ratio
- Finding the ideal target/universe ratio
- Finding new audiences
- Structure by therapy area
- Structure by region
- Recommendations for optimizing sales force structure
- Optimizing ROI through use of technology
- Trends in use of technology in different national markets
- Implications of use of technologies for ROI
- Increasing field force efficiency through new technology
- Increasing the effectiveness of detailing with new technologies
- Increasing field force communication: Knoll
- Trends in eDetailing
- Implications of eDetailing for ROI
- Physician prescribing behaviour
- Market position of drug
- National market
- Future drivers of eDetailing
- Recommendations for optimizing use of technologies
- Optimizing ROI through use of external sales forces
- Optimizing ROI through the use of CSOs
- Advantages of using CSOs
- Barriers to using CSOs
- Case study: Using a CSO for a more targeted approach - Solvay
- Implications for the ROI
- When to use CSOs
- Optimizing ROI through use of co-promotion and co-marketing
- Co-promotion: offering the best ROI
- Case study: Maximizing audience coverage through co-promotion -
Ditropan XL
- Co-marketing: suited in specific circumstances
- Recommendations for optimizing the use of co-promotion versus co-marketing
Chapter 4 Leveraging sales and marketing
capabilities to optimize product
- uptake
- Introduction
- Key findings
- Sales and marketing capabilities: strategic outlook
- Role of sales and marketing capabilities in product launch
- Assessing the capabilities: therapeutic and geographic presence, sales
and marketing spend
- In need of external expertise: choosing the best licensing option
- Analytical framework for analyzing successful company sales and marketing
strategy design
- The overall role of sales and marketing capabilities in different
disease market maturity stages
- The specific role of sales and marketing attributes in different disease
market maturity stages
- Recommendations for optimal leverage of corporate sales and marketing
capabilities
Immature markets
- Lack of relevant therapeutic or geographic presence
Mature markets
- Case studies: The impact of sales and marketing investment on product
success
- Case study: Exelon - strong promotion in an immature market with existing
gold standard therapy
- Exelon’s position in the Alzheimer’s disease market
- Strong marketing investment by Novartis to off-set later entry and
limited differentiation from gold standard
- Case study: Celexa - innovative marketing strategy yielding success against
prominent competition
- Celexa’s clinical benefits
- A strong sales and marketing strategy
List of Figures
- Figure 1.1: Sales force growth of profiled companies, 1999-2001 and forecast to 2005
- Figure 1.2: Four negative forces on pharmaceutical revenues
- Figure 1.3: R&D expenditure as a proportion of sales, 1980-2002
- Figure 1.4: Estimated breakdown of the global sales and marketing spend of the top
pharmaceutical companies
- Figure 1.5: Factors impacting the ROI of physician detailing
- Figure 2.6: Comparison of sales force size with US ethical revenues
- Figure 2.7: Sales force size and growth in the US, 1999-2001
- Figure 2.8: Simplified model of generic US sales force structure
- Figure 2.9: Comparison between size of sales force and ethical revenues from the Japanese market
- Figure 2.10: Sales force size and growth in Japan, 1999-2001
- Figure 2.11: Simplified model of generic Japanese sales force structure
- Figure 2.12: Sales force size and growth in France, 1999-2001
- Figure 2.13: Simplified model of a generic French sales force structure
- Figure 2.14: Sales force size and growth in Germany, 1999-2001
- Figure 2.15: Simplified model of a generic German sales force structure
- Figure 2.16: Sales force size and growth in Italy, 1999-2001
- Figure 2.17: Simplified model of generic Italian sales force structure
- Figure 2.18: Sales force size and growth in Spain, 1999-2001
- Figure 2.19: Model of a generic Spanish sales force structure
- Figure 2.20: Size and growth of selected sales forces in the UK, 1999-2001
- Figure 2.21: Simplified model of generic UK sales force structure
- Figure 3.22: Key influences on sales force ROI
- Figure 3.23: Relative ROI for sales force management strategies
- Figure 3.24: Model for assessing field force productivity
- Figure 3.25: Model for assessing sales force ROI
- Figure 3.26: Trends in sales force growth, 1999-2005
- Figure 3.27: Relationship between field force productivity and level of market competition
- Figure 3.28: The effect of the target/universe (T/U) ratio on sales force ROI
- Figure 3.29: Summarised use of technologies by profiled sales forces
- Figure 3.30: Use of eDetailing by profiled companies
- Figure 3.31: Relationship between physician prescribing behaviour and ROI of eDetailing
- Figure 3.32: Effects of CSO outsourcing on sales force ROI
- Figure 4.33: Relative contribution of clinical, market, corporate sales and marketing capabilities to
first year market share at different disease market maturity stages
- Figure 4.34: Relative importance of sales and marketing attributes in explaining first year market
share in different disease market maturity stages
- Figure 4.35: Decision tree for optimally leveraging corporate sales and marketing capabilities
- Figure 4.36: Global sales of leading SSRIs, 1998-2002
List of Tables
- Table 1.1: Total pharmaceutical R&D expenditure, 1980-2002
- Table 2.1: Summarised use of technologies by US sales reps in companies studied
- Table 2.2: Summarised use of technologies by Japanese sales reps in companies studied
- Table 2.3: Summarised use of technologies by French sales reps in companies studied
- Table 2.4: Summarised use of technologies by German sales reps in companies studied
- Table 2.5: Summarised use of technologies by Italian sales reps in companies studied
- Table 2.6: Summarised use of technologies by sales reps in Spanish companies studied
- Table 2.7: Summarised use of technologies by UK sales reps in companies studied
- Table 4.1: Ranked importance of sales and marketing attributes per disease market maturity stage
134
- Table 4.2: Global sales of leading SSRIs, 1998-2002 145
AbstractThe management report, 'The Pharmaceutical Sales Force Outlook: Structures and strategies to maximize ROI and boost product uptake’ provides a detailed, timely examination of sales force structures and the factors that impact sales force return on investment (ROI). The report is based on interviews conducted with sales executives in the US, Japan, France, Germany, Italy, Spain and the UK uncovering sales force structures and strategies to maximize sales force ROI. Analysis of trends in sales force size, structure and use of technology for companies of different sizes and in different countries are provided to support future strategic planning. The report examines the factors that affect sales force ROI, presents models for assessing both field force productivity and ROI and recommends how pharmaceutical companies can maximize ROI through effective sales force management. This report also provides a framework to analyze different ways in which companies can leverage corporate sales and marketing expertise to support product launches. Use the latest analysis in this report to define the ultimate sales force strategy that will deliver the best results and give you the competitive edge
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