PROJECT REPORT ON

STUDY 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

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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. DwivediProject Guide

Director

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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

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1)1) Parma Company Organizational StructureParma Company Organizational Structure

Organisational structure is the bureaucratic set-up of an institution by which its staff, 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. A pharmaceutical company as well as its close relatives, proprietary drugs and toiletries companies are complex organisations. Under its roof a team of scientists, technicians and other specialists come together for representing virtually all the sciences, along with the contribution made by the management executives, lawyers, accountants, engineers, system analysts and may other whose abilities and talents maintains the viability of this unique business enterprise. Current scenario demands for a different organizational structure for a large scale pharmaceutical company and for a small scale pharmaceutical company. Earlier we are having a common structure in which there used to be only one administrator and one or two departmental heads. But now days when the pharmaceutical companies are becoming gigantic a need for new structure arises. In the new structure a specialist is needed for every individual job because every job today demands for specialisation. The new organisational structure gives us the benefits of specialisation. 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. Pharmaceutical marketing departments are concerned with the process by which medicinal products are made available to ultimate consumer from their point of origin. Its manager works with the objective of profit through customer satisfaction.

After this manager decides the bases by which to groupthe individual jobs .This decision is much like any other classification decision and it can result in groups containing jobs that are relatively homogeneous (alike). Then manager decides the appropriate size of group to each superior. As we have already noted that this decision involves determining whether spans of control are relatively narrow or wide.In the last manager distributes authority among the jobs. Authority is the right to make decision withoutapproval by higher manager. All jobs contain some degree of the right to make decisions within prescribe limit. What is needed is an integrated plan for each key customer in the context of the company’s portfolio, rather than the traditional plan for each sales force team. The integrated plan should identify the company’s objectives for the customer, their needs, 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, what skills they should have, what roles they should play, what tools they require, and what system will hold it all together and provide support. Implementing this strategy requires new processes and technologies for information sharing,which in turn requires a change in organizational structure and the breaking down of information silos within the organization.

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INTRODUCTIONAN organizational structure defines how job tasks are formally divided in to groups and coordinated. Thenew rules of operating in today’s global business environment make structure and design even more critical. There are five key elements a manager needs to address when he designs organization’s structure. These are: work specialization, departmentalization, span of control, centralization and decentralization. Work can be performed more efficiently if employees are allowed to specialize. The essence of work specialization is that, rather than an entire job being done by one individual, it is broken down into a number of parts: In this work, manager first decides how to divide the overall task into successively smaller jobs. Manager divides the total activities of the task into smaller set of related activities .The effect of this decision is to define job in terms of specialization and responsibility. Although job having many Criteria’s the most important one is their degree of specialization.

THE PROBLEM

Change in the pharmaceutical market requires company to change their approach and business model. In the part, medical sales forces have mostly called on doctors and other prescribes to sell their product. This approach is focused on transactions and on increasing share of voice. Turnover among sales representatives is often high, making it difficult to build relationship with the customer. Severalrepresentatives from the same company might be calling on the same customer to promote different or the same product, presenting further challenges of coordination. For the purpose of our study we had chosen a sample of 50 pharmaceutical companies from top 500 pharmaceutical companies on convenience basis. In our study, 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. As our sampling units were large pharmaceutical companies, we observed a problem that is faced by every HR manager of these companies and that is of employee turnover. As we went in depth of this problem, we found a reasonof this problem. Previously pharmaceutical companies were used to appoint diploma holders, graduates and masterdegree 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 andsalary dissatisfaction. As a result, the companies facing this problem started appointing non-professionals (graduates, 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. With the passage of time,

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today a new problem has arisen that the new sales personnel were unable to satisfy the queries of doctors. This results in the avoidance of Medical Representatives by the doctors. This again discards the marketing plans of thepharma companies.

THE NEW STRUCTURE

Above problem can be solved by adopting the new structure that leads to more specialization. In fact everystructure demands for the specialization. But we are suggesting a bifurcation in the job of MedicalRepresentatives. We suggest dividing it into two parts. We are calling the two new jobs as MRD i.e. Medical Representative for Doctors and MRCW i.e. Medical Representative for Chemists and Wholesalers.

A. Below we are showing a common functional structure of a pharmaceutical company.

B. Following to this, we are showing a common functional-geographical structure of marketing division, which is followed by any big pharmaceutical company

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But this structure is giving birth to some problems which we have discussed above. So we are propounding a new structure for the marketing division of a pharmaceutical company. This new structure will be like this:

C. 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

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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. 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. Different professionals will be needed for these two divisions. Their educational level will be different. For MRD’s job the person appointed must possess a degree or higher in pharmaceutical sciences because their job profile demands for pharmaceutical professionals. And they will be paid higher because of their expertise and higher investment on education. 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. 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.

Pharma Company Organizational Structure

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Marketing Manager

National Sales Manager

PMTTeam Zonal

Head

Regional Head

Area Manager

Sr. Medical Representative / Sales Executive

Medical Representative / Sales Executive

Directors

CEO

VP Sales Marketing

Pharmaceuticals Organizations department

The Pharma functioning can be divided into five

I. Main Function - Sales and Marketing: - Pharmaceutical marketing, sometimes called medico-marketing or pharma marketing in some countries is the business of advertising or otherwise promoting the sale of pharmaceuticals or drugs. Many countries have measures in place to limit advertising by companies. Pharmaceutical company spending on marketing far exceeds that of its research budget. In Canada, $1.7 billion was spent in 2004 to market drugs to physicians; in the United States, $21 billion was spent in 2002. In 2005, money spent on pharmaceutical marketing in the United States was estimated at $29.9 billion with one estimate as high as $57 billion. When the U.S. numbers are broken down, 56% was free samples, 25% was pharmaceutical sales representative "detailing" (promoting drugs directly to) physicians, 12.5% was direct to user advertising, 4% on detailing to hospitals, and 2% on journal ads. There is some evidence that marketing practices can negatively affect both patients and the health care profession.

Marketing to health care providers takes three main forms: activity by pharmaceutical sales representatives, provision of drug samples, and sponsoring continuing medical education (CME). The use of gifts, including pens and coffee mugs embossed with pharmaceutical product names, has been prohibited by PHRMA ethics guidelines.

II. Medical Department: - The Medical Department groups are a growing vital sector in today's bio pharmaceutical industry in providing hospital consultants, key opinion leaders (KOL's), regulatory agencies and healthcare professionals with scientific and medical information relating to the value and correct usage of the products.

Medical Department personnel strive for the highest scientific integrity so as to produce successful clinical trials and supply the greatest support for the market. Medical Department groups perform many activities often overlapping with sales, Medical marketing, clinical growth, and customer service.

Sales groups may be ill-positioned to accurately present the new product to physicians and quite often need help in making more expert presentations. 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. A great deal of time is spent in doing research on potential health-related products and medicines.

While considering the distinctions between post marketing scientific tests and clinical registration demos, medical Department can fill the requirement for the studies done post approval.

Medical Department acts as the central focal point for different therapeutic areas of sales, marketing and research.

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. They provide assistance in dissemination of technological information regarding current products to regulating agencies and healthcare

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professionals. 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.

III. Manufacturing Department: - Drug manufacturing is the process of industrial-scale synthesis of pharmaceutical drugs by pharmaceutical companies. The process of drug manufacturing can be broken down into a series of unit, such as milling, granulation, coating, tablet pressing, and others.

IV. Research and Product Development: - Research and Product Development helping clients build the R&D capabilities needed to drive innovation, improve productivity and performance, and develop successful portfolio and asset strategies

Support Department: - The Department of Pharmaceutical Services provides comprehensive pharmaceutical care services to Research, Purchase, Logistic, Graphic designing, Financial, Quality and Compliance, and Education

The main department sales and marketing can be further divided into two as ,

1. Marketing and PMT team

2. Sales team (field staff)

1. 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

Brand Projection

The role of a product manager is challenging, complex and often misunderstood.

Across the high-tech industry, the "product manager" title is used in many ways to describe drastically different duties and responsibilities. Diverse interpretations regarding the role of the product manager have created an untenable situation for some, who therefore struggle to define their own role.

Properly defining and structuring the roles and responsibilities of the product management team would enable the team members to be more efficient and productive, leading to better revenues and higher-quality products that meet customer needs.

The product management team is a task group that organizationally resides in the Product Management department and has four distinct roles: product planner, product marketer, sales engineer and marketing communications (marcom) manager.

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2. Sales team (field staff): Once the sales plan has been formulated, the next logical step is to organise a sales force to achieve the enterprise objectives. 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. The scope of their sales responsibility, line authority and accountability must be defined so that the sales activities can be well coordinated.   In this unit we shall discuss; 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, 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. Yet, understanding how it should change in the future, knowing how to facilitate that change, 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’, only making the most superficial of adjustments to their operating models. More far-reaching solutions are needed. Complexity arises from the fact that there is no single ‘new model’ solution; the right sales model has to be selected to fit each organisation’s situation. Pharmaceutical companies usually face at least one, if not more, of three common issues that trigger an urgent need for a sales model restructure. Some find themselves in the difficult situation of suffering from all three simultaneously.

Pharmaceutical professional belong to an extraordinary class. Healthcare professional job is unique, special and rewarding. One is engage in healthcare business for,

Improving the overall quality of life of people around, service the customer / doctors by giving them latest medical information

Present before them logical prescribing alternatives Facilitate continues medical learning.

Doctors all over the world agree, they depend on Medical Detail men for a big portion of latest medical information.

Types of selling

Selling can be classified as: Consumers selling and Healthcare Selling - Ethical Selling, no solicitations of the customers / patient and n o advertisements, Parma product, Hospital and medical services.

a) Consumer selling

b) Healthcare selling

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Mdia Advt.

Consumer

(Customer)

Product

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, a doctor becomes a customer and patient becomes a consumer.

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.

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. Yet too many pharma strategies for customer experience fail to focus these efforts in any meaningful way. Doing everything for everyone is not a strategy that works.

The six pillars of customer experience for pharma

Focus your customer experience strategy on a specific subset of customers in a particular location

Invest in one-to-one qualitative studies, instead of focus groups, quantitative studies, and

large sample sizes

Design experiences by making new things, testing them with customers, and revising them

until they work

Measure what matters, and not what is easy; that means customer experience quality, 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, because even the best ideas can turn into failures, which in time become

building blocks for success

Who is the customer? – E.g. wife asks to purchase Cerelac for baby. Baby

become becomes an actual consumer of Cerelac and not your wife.

When husband visit a shop he become a customer for Cerelac but his wife takes

the decision to by the Cerelac, hence your wife becomes the customer and your

baby becomes a consumer.

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, a doctor becomes a customer and patient becomes a consumer.

That is the reason pharmaceuticals selling is considered as indirect selling.

In this profession you may not meet the actual consumer of your product.

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Peroduct

Customer (Doctor)

Consumer

(Custo

mer)

The customers for pharmaceuticals Business are

i. Doctors (Who raise the prescription)

ii. Chemist (Who honors the prescription)

iii. Stockist (Who supply the stocks to the chemist)

iv. Carrying and forwarding agent (Who hold the stock)

v. 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, as compared to prescription drugs, which may be sold only to

consumers possessing a valid prescription.

Difference between pharmaceutical selling and other consumer product

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3) Pharma Distribution Channels

The Indian Drug and Medicine Retailers i.e. Chemist operate on the following system.

The retailers purchase drugs from the stockiest and sub Stockiest.

The chemist gets the margin of approximately 20% on the MRP.

The net profit for the retailers is aprox. 12 -14 %.

Indian Pharmacy Standard Operating Procedure

The stockiest in turn purchase the goods from the Super Stockiest or CNF agent or the Distributors.

The stockiest are appointed by the Pharma co. and is approved by the MSCDA. ( Maharashtra State Chemists & Druggists Association)

The stockist earns a margin of 10% on the retailer’s price.

The sub stockists are the stockiest which are not appointed by the Pharma co.

CNF agents in turns get the commission ranging from 1.5 % to 4% on the total turnover.

The CNF is appointed by the Co. or many times the Co. itself acts as a CNF at least in the HQ. Territory.

All the stockiest, 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

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ManufactureCompany

DepotCNF /

Super Stockiest

Stockiest

Retailer / Chemist

End User / Patients

1.5 – 4 %

10 %

20 %

Doctor Rx

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, which include medicines, prescription drugs and medical equipment, to a variety of customers including GPs and hospital doctors, pharmacists and nurses. They work strategically to increase the awareness and use of their company's pharmaceutical and medical products.

Medical sales reps are usually based in a specific geographical location and specialise in a particular product or medical area. They may make presentations and organise group events for healthcare professionals, as well as working with contacts on a one-to-one basis.

Typical work activitiesIn any setting, the process of selling involves contacting potential customers, identifying their needs, persuading them that your products or services (rather than those of competitors) can best satisfy those needs; closing the sale by agreeing the terms and conditions; and providing an after-sales service. Medical sales representatives do all of this and more.

Duties often include:

Arranging appointments with doctors, pharmacists and hospital medical teams, which may include pre-arranged appointments or regular 'cold' calling;

Making presentations to doctors, practice staff and nurses in GP surgeries, hospital doctors and pharmacists in the retail sector. Presentations may take place in medical settings during the day, or may be conducted in the evenings at a local hotel or conference venue;

Organising conferences for doctors and other medical staff; Building and maintaining positive working relationships with medical staff and

supporting administrative staff; Managing budgets (for catering, outside speakers, conferences, hospitality, etc.); Keeping detailed records of all contacts; Reaching (and if possible exceeding) annual sales targets; Planning work schedules and weekly and monthly timetables. This may involve

working with the area sales team or discussing future targets with the area sales manager. Generally, medical sales executives have their own regional area of responsibility and plan how and when to target health professions;

Regularly attending company meetings, technical data presentations and briefings;

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Keeping up to date with the latest clinical data supplied by the company, and interpreting, presenting and discussing this data with health professionals during presentations;

Monitoring competitor activity and competitors' products; Maintaining knowledge of new developments in the National Health Service

(NHS), anticipating potential negative and positive impacts on the business and adapting strategy accordingly;

Developing strategies for increasing opportunities to meet and talk to contacts in the medical and healthcare sector;

Staying informed about the activities of health services in a particular area. 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, regarding Competition Marketing Socio-economic condition Need of Medical Representative (MR) / Sales Executive Pharmaceuticals / Health care Ethical product cannot be promoted directly to

patients through mass media - Radio, TV, Print Due to stiff competition the customer has to be met and persuaded frequently so

that he begins, continues and increases the use of our products.

5) Pharma Products Marketing and Promotions

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Pharmaceutical industry is one of the most organized conditions of a patient industries in India, employing a large number of professionals in all areas of operations.

Pharma Promotions`The Pharma Promotions or the marketing strategy is focused on the following level

a) External Customer b) Internal Customers

1. Doctor level 1. Sale team level 2. Chemist Level3. Patient level4. Masses level5. Packaging Level6. Price level

2) Doctor level Type of Doctor- 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 Economical Status – Upper class or Middle class

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

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Most commonly used promotional tools to promote Pharma products to doctors is as follows,

3) Chemist Level

Understand what type of the chemist is

What type of customers he is serving (Doctors and Patient Class)

Most commonly used promotional tools to promote Pharma products to doctors is as follows,

Bonus offer

Chemist Folder

Stickers

Chemist LBL (Vernacular Language

Posters

Gifts

4) Patient level

Patients are targeted indirectly for brand promotions

The best time to divert the patient’s attentions is when they are waiting in consultancy for their turn.

Tools used for patients promotions;

Patient Educations literature

Posters

Medical Camps

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Catch coverJournal advertisements ReferencesParticipation in Symposium, Medical conferences and CME Involvement in Brand launch and various other field activitySponsorships

Visual aidLiteratureGift articlesPrescription padLBLStickersClinical trialsPhysicians SamplesPosters

5) Masses level

Pharma products which can be promoted at mass level includes;

OTC drugs- Asprine, Idex, Move Crocine, Corex, Sugar free

Food Supplements - Protein Powder- Horlics, Boost etc

Tonics / Chavanprashs - Baidanath , Zandu etc.

Neutraceuticals – Calcuim Sandoze

Herbal Medicines – Himalaya Products

Tools used to promote OTC products through Mass Media advertisements are,

Radio

TV

Print - News Paper, Magazines etc.

Mailers

Internet Media - Emails , website, Blogs

6) Packaging level

Packaging is important not only to promote OTC products but also ethical promotions.

Packaging serves four purposes

To protect the inside products from Physical, natural , environmental and chemical damage

To attract the customers

To build the perceived value of the products

To build customers trust on the products.

7) Price level

Promotion at price level always carries a risk when the competitors reduce their prices.

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8) Sale team level

Sales team is the most important link between the company and the customers.

It is said the sales team is the eyes and the ears of the company.

Sales team are burden with more then 20 – 30 products.

During the launch campaign one must convinced and motivate the sales team regarding the new brand.

Tools used to motivate the sales team

i. Various competitions at Regional, Zonal and national level.

ii. First Prescriptions , First 5 prescriptions or maximum prescriptions in a stipulated period

iii. Launch gifts to the sales team

iv. Various field activity involving the doctors like Brand launch in a particular area, CME, Medical camps etc.

6) Product Mix

The complete range of products present within a company is known as the product mix. In any multi brand organizations, there are numerous products present. None of the organizations wants to take the risk of being present in the market with a single product. If the company has only a single product, 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.

Product mix – As explained, product mix is a combination of total product lines within a company.

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

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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.

7) Promotional Aid

Promotional Aid

Most commonly used promotional tools in the pharmaceuticals industry are

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Visual Aid

Visual Aid or VA as it is commonly known, is a spiral bound material with photo- mount stand there are several laminated page s with product messages

Advantages of VA:

Ensure attention of the customer, the picture and messages printed on it are to 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 doctors “sees” and “hear” at the same time.

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

Literatures and Competitors Literature

Literatures:

A good input for detailing particular product in terms of prescribing information, dosages, adverse reaction features, benefits, contraindication etc.

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Physicians Samples

Catch cover

Journal

advertisements

References

Participation in

Symposium., Medical

conferences and

CME

Bonus offers

Visual aid

Literature

Gift articles

Prescription pad

LBL

Flier

Brochure

Stickers

Clinical trials

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.

Brochure

This literature gives the in-depth knowledge of the service / product targeted to the potential client.

Practically it is more the 4 - 6 pages

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Mostly all pages are bound together either simple binding or back to back pasting

Each page is about 175- 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.

Catch Cover and Physician Samples

Catch Cover:

This tells you about the product details, composition, colour, manufactured date, expiry date etc.

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, family members or himself and friends

Gifts

Gifts helps to express our gratitude for the support of doctors, 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.

Bonus offer

It ensure better stocking of our product at the retail counters

It generates enthusiasm amongst the retailers

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It takes care of increased prescription demand you have generated for a particular product.

Sometimes helps you to boost sales. 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, eye level to the customer

Remember, before you put stickers; get the permission from the doctors to do so.

9) Detailing

Detailing refers to the activity of pharmaceutical sales representatives (reps) when they make calls to physicians and provide them with "details" -- approved scientific information, benefits, side effects, or adverse events -- related to a drug. Pharma sales

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reps were once called "detail men." These days, however, sales reps are as likely to be women as men.

"Detail" means that part of an in person, face-to-face sales Call during which a Sales Representative, who is trained and knowledgeable with respect to the applicable Product, including its label and package insert, and the use of the applicable promotional materials, makes a presentation of such Product to a medical professional with prescribing authority. When used as a verb, "Detail" means to engage in Detailing activities.

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. It is an integral part of personnel selling which is thoroughly rehearsed, 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 .Plain communication cannot create customer interest. But when we details we actually advertise the product to particular customer to induce them to buy or prescribe .Detailing is one of the most important tool of Pharmaceutical Marketing and advertising. Pharma sales representatives were once called "detail men” For e.g. approved scientific information, benefits, side effects, or adverse events - related to a drug are parts of detailing. 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, quality of products and manufacturing techniques used To provide more mileage in short time.

Detailing is a presentation of selling points in the most logical sequence to the customer

Sales promotion, sales presentation, sales interview are the other names of detailing

Basically detailing means the communication of your message to the customer to increase the sales.

Objective of Detailing

Detailing is one of the most important tools in pharmaceutical marketing and advertising. There is a subtle difference between plain .communication and detailing. When we detail, we are actually advertising the product to a particular

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targeted customer, to induce them into buying or prescribing it.  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, 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. (Exactly as an actor acts on stage or in films). Even though the script is written by someone else (usually the Product Manager), it looks as if it is the MR's own.

To make the product known to the doctor, 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, medical equipment and biotechnology companies. However, there is a growing level of discomfort with the current selling model. It is incredibly expensive And inefficient. Physicians don’t like it much.

At a time of increasing economic pressures, companies are putting heightened scrutiny on the economics of their selling processes. Investigating new concepts, they find an abundance of new technologies and options. Being blinded by the latest technological bells and whistles and jumping on the next bandwagon would be an easy, but potentially costly, mistake to make.

This article helps pharmaceutical executives sort through the various options. It provides a framework to put alternative approaches into perspective, 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, how? Is there a first mover advantage, 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?

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.

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Contents of Detailing

Medical detaining is the conversation between the doctor and the MR. It is a dialogue and not a monologue. The MR builds the discussion with doctor on; Name of the product “BRAND”, Indication in which the product is advocated Benefits that the product can offer to the patients Detailing should be clear, 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

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

Detailing should be: Complete, Clear, Delivered with confidence, Conviction, Eliminate the competition, and should follow the “AIDA” (Attention, Interest, Desire, and Action) principle

Detailing sequence

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Name of the

product

Indications

Benefits to

patient

Medical DetailingConversat

ion

i. The pre approachii. The approach

iii. The name of the productiv. The “you” benefitv. The building of confidence

vi. 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. 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. This confidant will get transform into building up doctor’s confidence and

therefore Objection handling become easier, this is the key to success

The proper close:

The close is nothing but whether you have made any impact on doctor or not. 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 - “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. Opening

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ii. Get attentioniii. Create interest and sustain itiv. Present benefits v. Demonstrate

vi. Feedbackvii. Handle objection

viii. Close

10) Handling a Visual Aid and Art of sampling

Visual Aid acts as the first impression of any pharma company.

In handling VA the first thing remember is that detailing is an art, and has to be done with lot of care and conviction.

Care means lot of practice and Conviction means with emotion. Important points on how to handle VA:

i. Let the doctor sees the visual and text matterii. Don’t hurry and turn pages

iii. Ask for doctors comments on some special pointsiv. Give brief pause between one product and another

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v. Handle VA gently and with carevi. Sound confident while making claims. Modulate voice, articulate clearly.

vii. Control speed of your speech.viii. Give emphasis to points printed boldly

ix. Always use a pointer (pen is the best pointer and easily available) x. Do not run the pointer, use it only to point

xi. Hold the VA at appropriate distance so that doctor can read it properlyxii. If doctor takes the literature from you and starts reading, do not disturb him let

him complete it. Do not interrupt him.

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. It is advisable to use these samples in a judicious way to create an impact in every visit.

ii. Distribution of samples with demonstration is a very important aspect of our job instead of just keeping samples on doctor’s tables.

iii. 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.

iv. Never keep the samples by telling that “here are few samples” instead, always tell that “ this product you can try on your next patient suffering from ___________ (condition)”

v. Always demand prescriptions when you keep the samplesvi. Use demonstrating technique to make your product stand in doctor’s mind.

vii. Always demonstrate colour, scoring taste, smell etc

11) Daily Sale call planning

Planning

Planning:

Planning can be defined as the ability of looking ahead. In other words, 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.

When to plan:

Planning has to be done in advance. The right time to plan is the previous night for the next day’s work

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How to plan?

Foundation of every plan is knowledge and information

We must know:

i. What we are selling (Products)ii. To whom we are selling (Customer)

iii. Against which we are selling (Competitors)

Hence we should know our product, customer and competitors. Before planning we should have prescription habits of customers (our /

competitors) the specific day they meet, what was the discussion in earlier visits, any specific requirement we have to satisfy.

Always refer to your dairy when you plan.

What to plan

While planning you has to effectively utilise the knowledge and information we have.

Set the objectives for the day and each call. 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. This will help you to minimise your mistake you may make at the same time

reduces the deviation in your work. Always plan for whole day (morning / evening) instead of planning for only one

session. Always plan little more calls so as to reach the objective you desire. Arrange the samples and inputs in a proper way i.e. last call samples will go to

the bottom and first call sample will be at the top. Carry a small napkin in a bag to cover the samples. Before you enter doctor’s clinic / chamber, keep the samples above the napkin

so that you are not confused inside the chamber. Rehearses the talk in the mind, which, you are going to have with doctors.

Write down the following things in daily sale call companion

Day and date Area to be worked. Doctor’s name and speciality in a sequential order i.e. the order in which you are

going to call on them. Products to be detailed in a sequence. Samples to be given. Any other promotional inputs to be given

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Any other thing which you have promised the doctor earlier. Names of the chemist and POB objective Name of the stockist booking / collection objective. Names of the institutions.

Post calls analysis

Analyse every call immediately before you call on the next doctors. You have to analyse the things done well and things not done well so that you

can take immediate corrective measures.

a) Things done well:

Which statement arouses doctor’s interest like promotional message, indication, dosage etc?

Detailing story. Particular strategy

b) Things not done well:

The mistake made in your detailing. Any objection not handled properly. Any wrong statement about the competitors, which he has not liked. To make you more effective plan the work and work the plan.

12) Tips for becoming a successful Sales Executive

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Tips for becoming a successful Sales Executive (MR)

To become a successful Healthcare Executive one must follow and understand the following four keys;

A. How to increase the business by meeting the doctor B. The key factors to become a successful Sales Executive (MR) C. What you should know before going to field? D. Qualities of a successful Sales Executive (MR)

A) How to increase the business by meeting the doctor

MR shall meet the customer repeatedly and periodically to promotes the company’s product, by keeping 3 “U”s of products in mind.

i. Usage of productii. Uses of product

iii. Users of product

i) Usage of product:

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NEED

FEATURE/OFFERING

BENEFIT

what the doctor wants?

what do we offer?

what the doctor gains?

Customer should use the product more often E.g. Zoxicillin is being prescribe by one doctor frequently may be in one

indication e.g. UTIs.

ii) Uses of product:

Customer should use the product in variety of indications more frequently E.g. Zoxicillin is being prescribe by a doctor frequently in many indication e.g.

UTIs, RTIs, Skin and soft tissue infections etc.

iii) Users of product:

Total number of customer who can use the product should continuously increases.

E.g. today only one doctor is prescribing Zoxicillin in a territory, tomorrow it should be 10 doctors and so on and so forth.

B) the key factors to become a successful Sales Executive (MR) - Core Customers

Core Customers:

Identification and quantification can be made and continuously update with help of

Retail surveys Find out who are the potential prescriber What is their capacity to prescribe a particular product or brand. 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. Objective is to continuously increases and upgrade core customer’s list by

converting 2nd line doctors to core customers.

C) What you should know before going to field?

1) Your Product / services:

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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 - middle class / upper class Type of patient e.g. male, female, adult, child, young, old, rich, poor etc. Where he is practicing- Rural area / Urban are Elite area. Type of practice - Private practice, Govt. Hospital, Big / small Hospital,

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;

i. Should be sincere and hard workingii. Must have power to grasp the technical aspects of his products as well as that of

competitorsiii. Must have knowledge about his customers habit, potential desires and

behavioral patternsiv. Should take initiative to learn about the competitions activities for efficient and

logical handling of the objectionsv. Must understands the selling features, benefits of his products

vi. Should have the ability to analyses and correct his mistakes.vii. He must continuously secure guidance from the superiors without any hesitation

viii. Should be clear about company’s mission, objective and clear perception about a particular products for selling to a particular customer

ix. Excellent human relationship with doctors, chemist, stockist and colleagues to ensure their full co-operation in establishing the product

x. Foresight to maintain adequate stocks of his product with the stockist and chemist

xi. Promptness in handling all quality complaints diplomatically in the field or in the territory.

xii. Loyalty and integrity in continuously improving the image of the companyxiii. Enthusiasm to participate in all special assignments, sales competitions and

training programs.

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xiv. The capability to of increasing the sales of the company s products to the level desire by the company.

xv. Pleasing personalities with neatly dressed, shine on shoes and smile on face. Ownership feeling towards company’s property.

xvi. Should have positive attitude, skills and knowledgexvii. Should be honest in his day-to-day activities.

xviii. Must complete the sale by ensuring the inflow of payments on time.xix. Regularity of clock in submitting all reports, special information and

communication.xx. An appropriate behavior pattern during office hours as well as out of office in a

manner, which is not indetrimental to the reputation and image of the company.

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.e. prescriptions of your product. In today’s competitive environment doctors have many options to satisfy the needs of their patients hence generating prescriptions become tough. Besides knowledge and skills, we have to develop good rapport with the doctors. The relationship with doctor means that the influence we exercise on

the doctor to generate prescription for our products. This relationship does not refer to how close we are to the doctors; it refers to only one thing i.e. how effective we are in generating prescriptions. That is nothing but rapport building. E.g. Dr. Kulkarni in your territory, greets you very nicely, offers you coffee, enquires about your family gives his best wishes for future but doesn’t write any prescription Dr. Pawar does not do all these things but writes your prescription in better quantityTherefore we can say that you have better rapport with Dr. Pawar as compare to Dr. Kulkarni.

To develop the rapport building we must Expose the right product for right doctor by regular visits, Proper objection handling Converting the doctor’s prescriptions from the competitors so as develop

effective business relationship with the doctors. While analyzing you must ask the following question to yourself:

i. Do I have right doctors in my list?ii. Have I selected right product for the right doctor at the right time?

iii. Am I providing them appropriate scientific information’s, which will help them to satisfy their patient’s needs?

iv. Do I call on these doctors at right time, right frequency?

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v. Do I make my presentation effective?vi. Do I make use of all the promotional inputs provided to me in generating

prescription?vii. 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, opening a bag and taking out Laptop, CD, Brochure VA (visual aid) etc.

Avoid serious error by which he will get angry e.g. touching articles on the table, disturbing his set up etc.

Discuss the right product, with right customer, with right implication, benefits

etc. Be confident with handling the Laptop, VA Do not run the pointer use only to point Hold the Laptop / VA at appropriate distance Handle objection effectively Do not detail in monotony Do not make noise of bag while leaving.

A marketing representative always Remember that he must radiate sunshine, cheerfulness, confidence and conviction in the clinic

15) Type of DoctorsSr. No.

Degree Type Specialty (Job Profile)

AGP (General Practitioners / physicians)

Medical Graduates

1 MBBSBachelor of Medicine

and Bachelor of Surgery

General Practice in Allopathic, Family physicians

2Non MBBS

   

a BHMSBachelor of Homeopathy and Bachelor of Surgery

General Practice in Homeopathy, Family physicians

b BAMSBachelor of Ayurveda and Bachelor of Surgery

General Practice in Ayurvedic, natural medicines, Family physicians

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B BDSBachelor of Dental Surgery

Deals with diseases / disorders of teeth

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16) Pharmaceutical Distribution Drug distribution in India has witnessed a paradigm shift. Before 1990, pharmaceutical companies established their own depots and warehouses. Now they have been replaced by clearing and forwarding agents (CFAs).

CFAs: These organizations are primarily responsible for maintaining storage (stock) of the company’s products and forwarding SKUs to the stockist on request. Most companies keep 1–3 CFAs in each Indian state. On an average, a company may work with a total of 25–35 CFAs. The CFAs are paid by the company yearly, once or twice, on a basis of the percentage of total turnover of products.

Stockist: is the distributor, who can simultaneously handle more than one company (usually, 5–15 depending on the city area), and may go up to even 30–50 different manufacturers. They pay for the products directly in the name of the pharmaceutical company after 30 to 45 days.

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The retail pharmacy obtains products from the stockist or sub stockist through whom it finally reaches the consumers (patients).

17) Chemist

Organized pharmacy retail sales in India are only 3% of the total sales. They can procure the stock from the stockists registered in the association (AIOCD) only (Manufacturers would not sell their products directly to retails chains). 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). Sales representatives do rarely come and talk with the concerned distribution managers in the retail chains to sell their products.

Institutional Supplies

Institutional supplies are 7% of the total drug sales in India. Distribution for institutions (divided into state funded, central funded & large hospitals) happen either through stockist or directly from the company CFA . Companies bid for the tenders passed by these institutions like major PSUs (Public Sector Units) including NTPC, BHEL etc.

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Chemist: Chemist or retailer is the last or the end part of the chain of distribution.

Chemist provides the medicines to the buyer, prescribed by the doctors. Chemist realises the prescription written for our product, thereby he is an

important aspect in getting the sales.

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 meet this demand Therefore to honour the generated prescription demand – Retailers Assistance is vital .To maintain stock pressure – Retailer’s Assistance is equally necessary.

Retailer’s Assistance will be forthcoming only if he sees you as an “ASSISTANT” ready to help him. Retailers may see you as one help him earn extra profits and information.

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.

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.

Talk to him about new products trade offers etc. Remember retailer doesn’t mean the Proprietor (owner) alone, it means his

assistance too, the counter clerk, the pharmacist and the cashier / accountant. Do not ignore any one. Talk to each one politely.

Function of the Chemist

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

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Company Depot

C & F Agent / Depot

Stockiest Chemist

Doctor Rx Patient

Is the link between the patient and doctor, sometimes he helps the patients in understanding the dosage and administration of the prescribed medicines.

Need to meet the chemist/retailer

To inform the retailer about the availability of company’s products and its salient features.

To know which doctors is prescribing what? To know the secondary sales of our product s, 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. To book the orders for our products To get the feedback regarding any near expiry goods. 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 Ready stock-provided, if you are visiting a new/ remote area and launching a

product. 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.

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).

Keep asking price of competitor’s brands their composition and strength.

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Try to do more personal order booking, 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, which in turn will enhance your image at stockist and retailer level).

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.

Don’ts:

Don’t touch any of the medicines, prescription at the counter without asking to the chemist or patient.

Don’t ask lengthy questions to the retailer, when he is busy, probably he may not answer or will not be able to give correct information.

Don’t start talking about other retailer or doctor with chemist (gossiping) Don’t enter in to the argument if you have any problems regarding availability,

keep pressurising him with persuasion. Don’t open your visual aid at the chemist counter in presence of other

companies MR’s.

Important of retail audit / survey you can determine the actual secondary sales trend for your product, by which you can know that which of your doctor is prescribing which product and in what quantity? .The preferences of the prescribers and his prescribing habit in terms of molecule, its quantity and frequency of prescription, which can be actually known and its utilisation for our benefit can be done. It will help you know the potential of the doctor / market. So that you can plan your future course action plans.

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. Plan for the promotional strategy and inputs, which you will be receiving, to

present to the doctor. Continuously keep talking on calling chemists to ascertain prescription flow for

our products or for any prescription shift towards other brands.

Order : Missionary salespeople are the one who do not close the sale but persuade the customer to promote sellers brand.Rather then closing creating a awareness is more

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important here Eg.medical rep. don’t buy medicines personally but tell DR to prescribe it to patients.

Ask for an order – It is your BIRTHRIGHT The stockist salesman is not our competitor But we are reluctant to book an order, having forgotten the art of taking an

order.

Reasons for not getting order

We don’t call at the right time We don’t have the time. We don’t spend enough time – we are in a frightful

hurry. 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; Adequate stocks / display at the retailer shelves. Prescription generated is honored in Toto. Through knowledge of what is happening in the market. Preempt competition Corrective action on time Asses strategies - Ours / competitors and get realistic feedback

18) Stockist

All India Organization of Chemists & Druggists (AIOCD) has over 5.5 Lac members from retail chemists and pharma distributors/stockists. Stockist plays a very powerful role in the pharma distribution in India. Companies cannot bypass stockists and sell directly to institutions or retail chains. They may face a ban from the stockists and considering the substitutes available for each molecule, companies cannot take the risk of losing the sales.

All of will agree that y MR have generated the prescription, which gets honored at the chemist counter. 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

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and sells to the retail chemists. 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.

Need of stockist

Our country has a wide geographic borders and our success will greatly depend on how powerful is our distribution system.

As majority of companies have started covering even micro interiors, the pharma business in these place have started flourishing.

Now days there are more than 4-5 chemists even in the micro interiors and we have to serve them very effectively.

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.

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.

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, Regularity and frequency of visits Credit facilities extended, Time taken for executing the orders.

Stockist operations

You have to coordinate very effectively and regularly with your stockist, Area Manage, Regional Manager, your superiors and H.O. for the smooth operation.

You must be able to manage his purchases, his services and his payments.

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.

This can be done by regularly monitoring the stocks position or stock and sales statements.

At any given time ensure that market should not suffer when you take an order. Use the following formula

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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, for our products, and is supplied by the stockist on time.

You can improve the services by more opportunities of personal order booking (POB) from various chemists and give it to the stockist.

Stockists should ensure that he parts away with bonus offers to the retailers. You have to ensure that he gives you copies of the invoices or some information

regarding town wise sales, so that you can evaluate the impact of your work and take corrective measures, accordingly.

He should also take care of genuine complaints from the retailers, regarding expiry, breakage or any damage of goods.

Managing the payments

Every visit you should ask for payments which are overdue, it is always better to inform the stockist regarding the due dates of payments instead of spending your time when the bill overdue.

Remember the sales is not done or completed till the realisation of payments.

Stock and Sales Statement

It gives you a clear picture of personal satisfaction, receipts of goods sales, return of goods, inventory etc.

The sales statement must reach your Area Manager and since you prepared the statement from your entire stockist, analyse the factors like secondary sales, goods return, average etc.

The previous stock and sales statements record should be maintained by each one of you to find out the trend or your progress.

Mathematical formulae and calculation

Since our ambition is to progress in this profession, we must remember the following terminology through out our life.

1) Target:

It is an object or mark to hit. In other words to achieve a specific objective in a fixed time span

E.g. T = Rs. 100/-

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2) Achievement:

Result obtain by us against a specific – target E.g. A = Rs. 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.

The period remains the same LYS (Last Year Sales- April 2004- March 2005) = Rs. 20,000 CYS (Current Year Sales- April 2005- March 2006) = Rs. 100,000 Then

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Growth =Current years Sales – 1 x 100

Last Year Sales

Or

Growth

=Current years Sales – Last Years

sales x 100

Last Year Sales

PCPM:

Per Capita per month i.e. Average sale per Man per month

19) Territory management

The word MR is stand for Medical representative. Almost each and every Pharma companies require some professionals who are expert in communication skill and marketing strategies with militant nature. People with gibberish nature have no space in this field. Market value is high so existing in market is very difficult and essential. MR is very bedazzling part of the industries as he is sensibly responsible for existence of industry in market.

Salespeople are not only responsible for individual customers (account management) but also responsible for a group of accounts (territory management).It is defined as planning, implementation, and control, of sales persons activities with the goal of realizing the sales and profits potentials of their assigned territories. Although geographic considerations play a role in setting boundaries, 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. 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”, or by regional or district sales managers. Large accounts involving special arrangements in terms of pricing, credit or product design. For e.g. central buying offices of a

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Growth =100,000 - 20,000 x 100 20,000

400%=

multinational firm.These are also called “House” or “National” accounts those served by home office personnel or executives.

What is Territory?

Territory of MR is a complete geographical area assigned to a particular MR which comprises of potential customers like doctors, chemists stockist institutes etc with specific demographic requirements

H.Q:

In a given territory the basic town is known as H.Q. (Head Quarter) town.

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.

Out-station:

Out-station is a place where he can go to a particular place and stay there and visit the neighbouring territories.

Factors to consider in establishing ‘Territories’

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• Sales person’s workload and nature of the job, for e.g. a prospecting salesperson can handle a larger territory assignment then a person who must provide full service for each account.The type of product / product lines

• The type of competition faced by the company in each territory.• The desired intensity of the market coverage / challenging territories• Channels of distribution available and transportation, system• Sales potential and servicing requirement. Limited potential territories can be

used as training grounds for new members of a sales force.• Salesperson can be assigned to more challenging territories in accordance with

their performance.

Territory management can be defined broadly in terms of:

• Planning (Analysis, Objectives, Strategies, Tactics)• Implementation (achievement of new business targets, 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.

• 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.

Objectives:

• Concern here is the sales volume and market share goals in the territory, which is derived in top-down manner, starting from corporate objectives.

Strategies:

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• Have to work on various strategies like pricing, promotional, delivery terms, payment and credit terms.

Tactics:

• Routing and scheduling task, avoid repetitive tasks, intensity of territory coverage and minimizing non-productive time.

• Designing a sales person travelling plan or the sequence of location to be visited (known as ‘Routing’).

• Proper scheduling or sequencing of appointments.

Implementation

• Establishing customer base; selling and servicing these accounts is the principal act of territory activity.

• New business development should be a continuous• Undertaking.• Customer satisfaction and maintaining long term relationship are among the

foremost concern of the territory manager.• Another important ingredient in implementation is ‘reporting’.• Maintaining a steady flow of reports to the home office about sales results,

problems or corrective actions.

Control

• A feedback process• A comparison take place between intended and actual results, with a view

of taking corrective action where required.

Prioritize Your Activities to Produce Maximum Results

How you prioritize your sales territory management activities depends upon whether you are managing a territory that has existing customers, or whether you are building your customer base from scratch.

If you manage a territory that has existing customers, your first priority should be to introduce yourself to every single one of your customers.

This should be a pleasant, low-key introduction along the lines of, "I just wanted to introduce myself and see if there is anything I can do to help you." Then, as you are chatting with your customers, you can ask, "Would you mind

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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.

It also helps you draw any festering problems out into the open. If you can address the problems quickly, it can really jump-start your relationships with the affected customers.

This same approach can also be effective for customers that have been reducing their purchases from your company over time, or customers that have stopped ordering completely. It is never much fun to listen to people complain. But, if you can isolate and solve the problems that are causing the dissatisfaction, you can produce a rapid and substantial boost in sales.

If you find customers that are really happy with the service your company has provided, drill down (with more questions) to determine just what has made them so happy. Their answers will provide you with a template for successfully managing their (and other) accounts. Also, ask these happy customers for referrals, regardless of whether you have contributed in any way to their happiness! Happy, satisfied customers are usually delighted to share their positive experience with others.

Once you have met all of your existing customers, the next step is to identify target prospects in your territory

Start by checking with your manager. If they have been managing your sales team for any period of time, they should be able to suggest some good target prospects.

Once you have compiled a list of target prospects, determine which ones you will pursue first. 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, pursue several of each type at the same time. In the words of a well-respected executive that I used to work with, "Elephant hunting is great. But those rabbits sure taste good in between the elephants!"

When you are ready to begin pursuing your target prospects, start by asking your existing customers whether they know anyone that works in the target organizations. If they do, ask for referrals. Once you have exhausted available referrals, proceed with the other activities in your prospecting plan - but tailor these activities to attract the attention of your target prospects.

Prerequisite for territory management

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To have complete territory knowledge MR must know the details pertaining to the territory lay out, important places important institutions, way of conveyance etc.Total number of customers of different categories, their prescription habits, qualification, addresses and appropriate visiting time.Name of the competitors in the territory, their strengths and complete details about their activities. Convenient routes of travel and minimum expenditure of time and expenses for optimum coverage of the territory.

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

• To be successful in your sales territory its important to know which customers drive you more business, what their “buying” style is; 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. That makes face to face meetings rare and precious when you get 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 representative must –• prescribe his products• To greet him upon his visit.• To understand the properties of his product over competitors’ ones.• Feedback

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20) IS- Information System

To keep a tract on daily activity, 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.

So that both the H. O and the field staff can work smoothly. Thus these formats are very important links between the field people and the

H.O

The important Information System

Formats are as given below;

i. Daily call report - DCRii. Master Call List (MCL) or Important Call List (ICL)- Doctors, institution,

chemist, and stockistiii. Expense Statementsiv. Standard tour program, Tour Report and fare chartv. Monthly sales Analysis report

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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, name, qualification, specialty, area of

practice etc. of each doctor DCR to be sent on daily basis to HO

Sr.No. Name of Doctor MCL No. Degree Speciality Last Visit

123456

123456

Work With

Daily Call Report

SE Name :____________________________

Name __________________________

Morning

Evening (After 4 PM)

Date:__________ HQ________

Signature________________________

Signature of SE _________________

Remark of Superior

Any Special Observation

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2) Monthly Report

Collection of data like

i. Total sales generated for that monthii. Any discount offer to doctor

iii. No. of doctor met with specialtyiv. Call averagev. Impact of promotion strategies and doctors response

vi. Record and frequency of promotional material like Physician samples, gifts LBL etc. given to doctors.

vii. Details of competitorsviii. All this above data should be filled and posted to HO on or before 10th of every

month

Month________________ 2004SE Name :____________________________Date:_____________ HQ_____________

Discount TotalMorning Evening PS LBL Gifts Offer Sales

12345678910111213141516171819202122232425262728293031TotalAverage

Any Special Observation

Signature of SE _________________

Monthly Report

DayNo. Of Doctors Met Promotinal Material

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3) Tour Report

This is an important tool for planning Plan your tour in such a way to cover maximum no. 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

Name SE:____________________________ HQ_____________

Clinic Res.123456789

10

DOB

Master Call List

Date:_______

TelMCL No. Doctor Name Degree Speciality Address and Email Mobile

5) Expense Statement

Give clear details of expenses day wise, HQ Wise For each claim, supporting is a must E.g. Bill of photocopy, Railway, bus ticket for Ex. Station /out station visits.

STD call made to HO, postage charges etc. Expense statements to be posted to HO along with the monthly report.

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Telephone Nos.

(Clinic and

Residence along

with mobile no.)

MCL has to be

updated and

submitted to HO

after every 6

months.

MCL / ICL code

Name

HQ

Qualification

Specialty

Full Address