Sales Force Effectiveness: Sales efficiency over effectiveness

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