Sales Management in the Pharma. Industry - An overview

GROUP I –UNIT ONE.SEMESTER V, MBA (Pharm Tech.)SPPSPTM, SVKM’s NMIMS.2014 – 2015

SAARTHAK ATHAVLE …… A001 SHRAMIKA KANCHAN ….. A009 DHWANI MEHTA ….. A010 VIRAL WAGHANI ….. A031 ISHANGI RANA ….. A060

UNIT ONE: Introduction Old concepts Customer sale Doctors list Type of sale Collection Sales Hierarchy Case Study (1.2 – GE Countrywide)

Sales Management

Originally, the term ‘sales management’ referred to the direction of sales force personnel.

But now, on a broader scale, the ‘sales management’ means management of various activities, including advertising, sales promotion, marketing research, physical distribution, pricing, and product merchandising

The American marketers association (AMA’s) definition, takes into consideration a number of these viewpoints.

Its definitions runs like: “ Sales Management involves the planning,

direction, and control of the personnel, selling activities of a business unit including recruiting, selecting, training, assigning, rating, supervising, paying, motivating, as all these tasks apply to the personnel sales-force. “

Sales Management is a socio-scientific process, involving’ group-effort’ in the pursuit of common goals or objectives.

So, sales-management has to work in a broader and newer environment, in co-existence with the traditional lines.

The present emphasis is now on total development of human resources along with marketing.

Just like personal selling process, pharmaceutical selling too follows the following 8 systematic steps.

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Brief about theProduct benefits

Elements of sales Management:• Planning• Coordinating• Controlling• MotivatingResulting in the following outcomes:• achieving sufficient sales-volume • providing sufficient profit• ensuring continuing growth

Traditional (Old) approach:• Selling is regarded as some one way, unidirectional process

the seller does to the buyer without taking into consideration actual needs & capabilities of the buyer.

• The result of this attitude to sales is that many salespeople adapt a manipulative, almost coercive style of selling.

• Some salespeople think of selling as pushing a customer into buying, and success as a victory.

• Often, people fear salespeople and distrust them.• They think of salespeople as fast talking and slick.• They are wary of being sold something they really don't

need or want.• The final intention is just to generate money for the

organisation somehow. This is done at the cost of buyer.

• To develop a long term relation with the customer

• Clearly identify each customer's unique needs and requirements

• Tailor your goods and services to meet those needs at a fair price

• Many people make a very good living out of helping people identify which particular need may be causing a symptom, then advising them on how to alleviate it.

• This includes not only medical doctorsbut also good salespeople.

• Sales representatives in the healthcare industry are expected tomanage their “territories” as if they were running their own business.

• To be successful in your sales territory its important to know whichcustomers drive you more business, what their “buying” style is; so thatyou can match your selling style to it.

• One major goal of a medical salesrepresentative is to be seen as a valuedconsultant by Doctors

• Doctors typically have full day schedules,with no direct access and they may frequentlyneed to reschedule appointments due tomedical emergencies. That makes face toface meetings rare and precious when youget a chance to have one.

Medical Reps Must have a database of:• Customer profile• Product profile: all studies , all information

about the product• 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 representativemust –• prescribe his products• To greet him upon his visit.• To understand the properties of his product

over competitors’ ones.• Feedback

Doctor list comprises thosedoctors available in eachrepresentatives territory.• Doctor list is sub divided into3 categories –

a) Super core doctorsb) VVIP doctorsc) VIP doctors

• These division among doctor is made dependingupon the type of sales each doctors give andnumber of times the representative required to visit.

• Doctor list is finalized by both Area manager andregional manager of the organization.

• Each doctor is assigned with a code

• The Medical Representative, while preparingthe daily reports, will use relevant code numberassigned to each doctor

• Each medical representative will fill all thecolumns of the Doctor list on regular basis

A diverse nature of buying need differentselling function

Selling is classified as:-• Order takers• Order creators• Order getters

• This this are the retail sales assistants• Here a customer chooses a variety of

products from a range available in storewithout the salesperson.

• Salesperson only complete the transaction• He receives payment and passes the goods to

customer

Further divided into 3:-• Inside order takers• Outside order takers-visits the customers and

solve their concerns rather then finding newcustomer

• Delivery sales person-deliver product tocustomer eg..milk

• Missionary salespeople are the one who donot close the sale but persude the customerto promote sellers brand

• Rather then closing creating a awareness ismore important here

• Eg.medical rep. don’t buy medicinespersonally but tell dic to prescribe it topatients.

Objective :- to persuade a customer to makea direct sale i.e persuade new buyer or a nonuser to buy the product.

2 types• Frontline salespeople• Sales support salespeople

Further classified as:-• New business sales person-Mostly are

frontline managers who go door to doorselling. Convert the leads to final sales.

• Organizational salespeople-believe inestablishing long term relationship, mainlyindustrial sellers.

• Consumer salespeople- who sellspices,enclopedia insurance etc…door todoor.

Further 2 types:-• Technical support salesperson:- support the

frontline salespeople when the product iscomplex or it needs negotiation in financialattention.

• Merchandisers:-provides support in retail adwholesale selling situations.

Orders are negotiated nationally and sales toindividual salespeople which are supportedby merchandises who give them advice ondisplay, execution on sales promotion,checking stock level and maintainingrelation, etc…

Sales department hierarchy incorporates

various departments that a company has for

the sales section. Sales staff is appointed by

the company under various departments

depending upon their skills, experience and

most importantly designations.

SALES HIERARCHY

CEO/President

VP Sales/VP Marketing

National Sales Manager

Regional/Zonal/Divisional Sales Manager

Branch/Area/District Sales Manager

Sales Trainee/Sales Person/ Sales Representative

National Sales Department Zonal Sales Department Regional Sales Department District Sales Department Territory Sales Department

This is the uppermost level or department

in the sales department hierarchy.

This department leads the entire sales

department and is equipped with

administrative authorities in the sales

department.

They craft a strategic plan and vision for the

entire sales department, providing support,

leadership and guidance to entire team to

work for the company’s benefit and profit.

Setting up of goals for the sales team and

developing new innovative strategies in an

effective manner lies under his responsibility.

Sales Director National Sales Manager Sales Vice President National Sales Coordinator and Distributor Senior Sales Accountant General Manager Sales Chief Sales Executive

This is the second highest department in the

sales department hierarchy.

These professionals are head at the zonal

level and handle the teams underneath them.

Zonal Sales Manager Senior Sales Manager Sales Administrator Sales Specialist 1 Senior Lead Development Sales Analyst Customer Service Manager

These professionals in the sales department hierarchy

are head of a particular region of a zone.

These professionals work under the orders of the

zonal officers.

They specifically handle the regional branch of that

particular area and get the work done from the lower

level sales department.

Such a professional is responsible to oversee

all the sales outlet of the provided area

ensuring the fulfilment of the targets

provided at the regional level.

A regional sales manager reports directly to

the national sales manager. They are also

bound to answer about the failures and

actions of their team.

Regional Sales Manager Sales Manager Sales Branch Manager Assistant Sales Branch Manager Inside Sales Consultant Lead Development Officer

This is the second lowest level in the sales staff

hierarchy.

These professionals work on the orders of the

regional sales department.

They are incorporated with a particular district area of

any region. They work in the assigned area and also

have a small team to work in that assigned district.

These are the sales professionals who supervise

the granted sales outlet or branch of the

company.

Branch Sales Manager supervise an entire team

of sales persons in their outlet and manage the

team to fulfill the targets on time for the

company. They are bound to report to the

regional sales manager.

District Sales Manager Sales Specialist II Sales Consultant Sales Clerk Junior Sales Consultant Sales Support

This is the lowest level in the sales department

hierarchy.

This level incorporates persons at lowest job

titles with minimal experience of the field.

A specific territory is provided to these

professional and they are to work in that

particular territory.

Front line professionals following the

commands of the branch manager while

being motivated by the team leader.

Sales Associated are bound to report to their

respective team leader and are expected to

achieve their goal efficiently

Senior Sales Analyst Sales Analyst Sales Representative Sales Associate Sales Person Sales Trainee

(**Please refer the attached folder for Case Study 1.2 Pg 38-40)**

About the company:• GE Countrywide is one of India’s leading finance

companies set up in 1994, & helping customers with easy & quick loans

• Pioneer of customer loan in retail segment of market• Robust IT support, latest technology, huge database,

centralized operations, simple & convenient doccumentation & innovative methods – salient features of the organisation

• Offers home equity loans, direct-to-consumer loans, home loans, car loans, educational loans & personal loans – available as flexible payment periods & schemes.

About their selling process:• Uses a combination of push & pull marketing strategies• Newspaper ads for personal loans• Robust database of customers & businesses• Toll free number to answer the queries• Marketing & sales executives collect customer doccuments

from their home • Marketing research executives process the loan

applications• Branch managers review the clear cases, Risk managers

work out the risk analysis • Customer Relationship programme for retaining customers

& cross selling other products . Eg- insurance• Lower interest rates & special privileges for loyal customers

Answer the following questions after reading the given case.

1) What are the roles & functions of direct sales associates in GE countrywide?

2) Analyse the diagram & explain various stages of sales management in GE countrywide

3) Why should a firm like GE countrywide maintain customer database? How is it helpful?

Direct sales associates play an important role in doccument collection & analysis , & finding new customers

They, along with the marketing executives are responsible for collection of doccuments from customer homes & maintaining & updating the files

They are basically responsible for approaching the new prospects , collecting relevant information from them & converting them into customers (here, loan applicants).

They do this in form of road shows, loan melas etc & collect info. From customers

This is done for sales realisation

• In accordance to the flowchart given, the GE Countrywide conducts the sales management process in following 6 important stages:

• Application stage• Document analysis stage• Eligibility analysis stage• Capacity analysis stage• Deviation analysis stage• Risk analysis stage• Final approval stage. PTO….

Telecallers call the target customers &invite them to branch with reqd. documents, which are

collected by marketing/sales executives & the information is processed & updated by marketing research executives.

Marketing research & direct sales executives evaluate loan applications on basis of eligibility

Clear cases are forwarded to relationship managers who analyse paying capacity of clients

Branch managers review cases to check if there is any deviation in organisational norms

Forwarded files sent to Head Office are approved after the risk analysis is performed by risk managers

Final approval is sent to resp. branches There are special customer relationship management

programs for retaining of customers.

GE Countrywide needs to have a database about their customers because it gives them immediate access to customer information. All the customer data is organised.

Customer database is required to check behaviour of customers and their needs and wants. Satisfying them becomes easier through this database. All the information is accessible at one place.

GE Countrywide believes in Customer Relationship Management. This is only possible if they have a database containing information about their customers.

Also this database will help the managers to pass customer information to each other as is required for loan approval. The database also helps to analyse customer information.

Sales Management – An Overview byDr Surender Singh Kundu & Dr V K Bishnoi. (http://www.ddegjust.ac.in/studymaterial/mba/mm-308.pdf)

“Re-Think your sales approach” by Gary Lockwood, Business Coach, for “The Advisor”

(http://www.isquare.com/sales.cfm)

Sales & Distribution Management by TAPAN M PANDACase Study 1.2, Page 38-40