Sales Force Effectiveness Part I - Blog Post by Asrar Qureshi
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I had compiled a working paper on Sales Force
Effectiveness some time back on demand. While writing this paper, I researched
and tapped several resources whom I gratefully acknowledge. It is not possible
for me to acknowledge all of them separately by name, but it neither diminishes
their contribution in it, nor my gratitude for them.
Sales Force Effectiveness (SFE)
Definition
Sales Force
Effectiveness (SFE) has been defined in several ways. Two fundamental
approaches to define SFE are as follows.
SFE is a
combination of strategy and tools to maximize sales force results. This is a
narrow perspective relatively where the primary focus is ‘Sales Force’. Better
training, improved work planning and quality in-clinic performance is the
mainstay in this model. Monitoring Metrics will include doctors’ coverage,
frequency of coverage and relating it to sales output.
SFE is a
process of building a ‘Sales Model’ through portfolio alignment, marketing
strategies, segment development, customer feedback, structural changes, and
reviewed processes. Monitoring Metrics include financial and activity measures.
Need
Traditional
sales model developed over last two decades was built on the premise that
having a new/first generic/ high priced generic gave enough power to achieve
peak sales performance which could then be sustained through a heavy detailing
field force. This market scenario has changed.
DRAP is now a
barrier as opposed to being a facilitator in the past; KOLs are asserting their
opinions; cost of launching a new product and achieving a decent market share
has increased manifold. New blockbuster drugs had been major growth drivers in
the last about two decades both for the innovators and early generics not
waiting for the patent expiry. Presently, the blockbusters are hard to come by
and the IP situation is highly unfavorable for generics of still-in-patent drugs.
Cost of
selling has gone up considerably. Field force cost is huge; providing input
materials is also a heavy cost; and KOLs and high-volume business producers
have become highly demanding. The cost further escalates due to high field
force turnover as time and money are wasted in selection, recruitment,
orientation and training.
Therapeutic
segments development and business spread along these have changed hugely.
Chronic/managed care, hepatology, nephrology, oncology, nutrition/well-being
have grown much faster than several other traditional, large segments.
These and some
more factors demand that new sales model, new marketing tactics and new
monitoring metrics be developed to remain competitive and keep growing.
Present Major Challenges
·
Keeping pace with fast changing market dynamics
·
Evolving new sales models around physician
access and expectations
·
Developing physicians’ trust around all aspects
of business
·
Creating alignment across all departments during
critical product launch phase
·
Need for on-the-fly performance analysis
·
Enabling sales force effectiveness while
complying with ever increasing regulations
Benefits
Major
anticipated benefits include but are not limited to:
·
On target strategy and execution
·
Resource optimization
·
Improved per-person productivity
·
Increased ability to compete
·
Enhanced capability to sustain in tough market
conditions
·
Heightened morale
·
Sustained team building
Fundamentals of SFE
Following may
be considered as the fundamentals of SFE practice.
1.
Alignment of Marketing and Sales to match the
industry/market environment
2.
Content-driven interactions between sales
representative and customers
3.
Use of appropriate analytics to monitor and
drive sales performance
SFE Related Capabilities
Implementation
of SFE requires following specific capabilities.
1.
Establishing priorities and aligning the
organization around the sales strategy
2.
Solid cross functional performance metrics
3.
Strategy translated into actions through clear
linkages
4.
An effective management toolkit including
on-the-fly analysis across multiple data sources
5.
Strategic management
SFE Practices
·
Analysis of portfolio, market, environment –
SWOT and PEST analyses
·
Identification of growth opportunities – target
market segmentation, ideal client profiling, customer value proposition
·
Allocation and organization of resources –
go-to-market strategy, operating and coverage model, goal and role clarity
·
Fit-for-purpose sales model – sales process,
sales enablement tools, technology enablement
·
Exception-free sales management discipline –
chain of command, reporting, performance management
·
Maximized growth and minimized decline – new
capabilities, success profiling, reward and recognition
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