Lecture 5 (sales manager) Flashcards
What is the purpose of sales management?
Achieving company sales goals through effective planning and efficient execution of company’s business plans
What are the responsibilities of pharma sales force management?
- recruit ppl with good scientific background
- provide training and coaching
- sales territory management
–> assign sales reps to geographic areas - customer relationship management
- sales objective setting
- talent retention and development
What should the sales reps be trained on?
- Product knowledge about own products and competitors
- Know what is happening in their specific therapeutic area.
- Sales skill training and communication skills
- Integrity and credibility –> compliance to code of Pharma marketing practice
What is the purpose of coaching in sales management?
to help medical reps improve performances
–> sales managers make field visits
–> give feedback to reps
–> continuously monitor performances
What are the new approaches in pharma sales force practices?
- Lean and effective sales force
- Implementation of Multichannel marketing/Omnichannel marketing
- conventional promotion is coming back
- application of key account management (KAM) and KOL to introduce specialty drugs
Why segmentation?
should know who are the important
customers to visit
–> optimise cost and efficiency
What are the two types of ‘customer values’?
- internal customer value
–> what customer can bring to company - external customer value
–> what company can deliver to customers
What is meant by ‘internal customer value’?
what customer can bring to company
–> potential, market share
What is meant by ‘external customer value’?
What company can deliver to customer
–> customer satisfaction, appreciation and relationship
–> understand their needs and present relevant product support materials and provide solutions
What is the ABCD model?
a segmentation model classifying customers on the basis of two parameters: Potential and Rx share
What are the 2 parameters that the ABCD matrix model is based on?
potential and Rx share
What do A, B, C and D in ABCD models stand for?
A = gold customers
B = New potentials –> need to develop
C = Loyal customers –> keep at low cost
D = low value customers –> no calls, mailings only
What is the model that is used to segment customers?
The ABCD Matrix Model
What are the levels in the ‘buying ladder concept’?
Unaware
Aware
Accepts
Tests
Prescribes
Prefers
Ambassador
What is the concept of buying ladder for?
steps that describe the customer’s prescribing habits and attitudes in qualitative terms
For the buying ladder concept, what does ‘accepts’ mean?
Agrees on the main benefits of the brand, hasn’t prescribed it yet
For the buying ladder concept, what does ‘prescribes’ mean?
Prescribes brand to specific group of patients, doesn’t prescribe brand as first line option
For the buying ladder concept, what does ‘prefers’ mean?
Prescribes brand as first choice first line option
For the buying ladder concept, what does ‘ambassador’ mean?
“PREFERS” and positively influences prescribing behaviour of other physicians
What are the 2 types of managements in customer relationship management?
- Key Opinion Leader (KOL) management
- Key Account Management (KAM)
What does the personal contact cycle consist of?
- pre-contact activity
- execute activity
- post contact activity
What are the objectives of personal contact cycle?
- Continuously optimizing the impact of medical sales people on Customer buying behaviour
- To continuously improve knowledge of our customers behaviour and their needs –> generate customer satisfaction
- M&S alignment to fully support Personal contact cycle
What is a KOL?
An medical expert in a specific medical field eg, A renown cardiologist who has a high reputation, and well respected can influence their peers’ medical practice with cardio drugs
When do pharma companies engage KOLs?
- research and clinical trials
- writing medical articles
- speakers for clinical presentations
- company advisory board members
What are the major type of issues in KOL management?
ethical issues
What are the responsibilities under KOL management?
- Identification of KOLs and build-up of KOL network
- Understand and manage KOLs expectations
- Maintaining good and sutainable relationship with KOLs
- Measurement of results
What is a key account?
a group of customers which are
- formally related to each other in the form of roles and responsibilities
- make decision which have a huge impact on company business
Give an example of a key account
IVF unit ( in-vitro fertilization) of a hospital with IVF specialists, embryologists, nurses, lab technicians ,also involve hospital pharmacist/ purchasing manager
In Hong Kong , 3 government hospitals with IVF clinics and a few private IVF clinics and doctors consume over 80% of fertility drugs
What is key account management?
a process that consists of the building and managing of long term collaborations and relationships with key accounts which have strategic importance for the company.
Account Management is generally applied if the following characteristics apply in a market:
- A small concentration of customers which generates a substantial amount of sales in the market
- Specialized products, fierce competition
- Account has a Decision Making Unit that makes decisions according to formal procedures
What are the key activities in KAM?
- Identify and understand the decision making process in Key Accounts
- Understand individual behavioral styles and their needs –> long term relationship and creditability
- Consultative selling
What are the responsibilities of a key account manager?
- highly knowledgeable
- has deep understanding of customer needs
- possess vast interpersonal skills for communication
- gain trust of key accounts
- a team player
- highly empowered by company with certain authority to makes decisions
A key account manager needs to be highly empowered by the company with certain authority to make decisions.
True or False.
True
What is the characteristic of KAM strategy?
needs to be customer centric and full endorsement from top management and support from the whole company
Why is sales force important?
- They work on the front line of business
–> have direct contact with customers - their performance directly affect company result
What are the factors contributing
to sales force effectiveness ?
- Hiring and training of talent staff
- Sales force design: structure and roles, size, territory planning
- know the customers
- motivation: fairness. compensation and incentives
- performance management and measurement
What does leadership involve?
- Create a vision of the future
- Ability to motivate and inspires people to deliver
- Coaching and development of others
- Managing delivery of vision , get the results
How can motivation be achieved?
- positive reinforcement
- Empowerment of employees
- Encourage creativity and innovation
- Improve employees competency
- Competitive salary and incentive
- Base rewards on job performances
- Treat people fairly
