Lecture 5 (sales manager)

Question 1

What is the purpose of sales management?

Answer 1

Achieving company sales goals through effective planning and efficient execution of company’s business plans

Question 2

What are the responsibilities of pharma sales force management?

Answer 2

1. recruit ppl with good scientific background
2. provide training and coaching
3. sales territory management
   –> assign sales reps to geographic areas
4. customer relationship management
5. sales objective setting
6. talent retention and development

Question 3

What should the sales reps be trained on?

Answer 3

1. Product knowledge about own products and competitors
2. Know what is happening in their specific therapeutic area.
3. Sales skill training and communication skills
4. Integrity and credibility –> compliance to code of Pharma marketing practice

Question 4

What is the purpose of coaching in sales management?

Answer 4

to help medical reps improve performances

–> sales managers make field visits
–> give feedback to reps
–> continuously monitor performances

Question 5

What are the new approaches in pharma sales force practices?

Answer 5

1. Lean and effective sales force
2. Implementation of Multichannel marketing/Omnichannel marketing
3. conventional promotion is coming back
4. application of key account management (KAM) and KOL to introduce specialty drugs

Question 6

Why segmentation?

Answer 6

should know who are the important
customers to visit

–> optimise cost and efficiency

Question 7

What are the two types of ‘customer values’?

Answer 7

1. internal customer value
   –> what customer can bring to company
2. external customer value
   –> what company can deliver to customers

Question 8

What is meant by ‘internal customer value’?

Answer 8

what customer can bring to company

–> potential, market share

Question 9

What is meant by ‘external customer value’?

Answer 9

What company can deliver to customer

–> customer satisfaction, appreciation and relationship
–> understand their needs and present relevant product support materials and provide solutions

Question 10

What is the ABCD model?

Answer 10

a segmentation model classifying customers on the basis of two parameters: Potential and Rx share

Question 11

What are the 2 parameters that the ABCD matrix model is based on?

Answer 11

potential and Rx share

Question 12

What do A, B, C and D in ABCD models stand for?

Answer 12

A = gold customers
B = New potentials –> need to develop
C = Loyal customers –> keep at low cost
D = low value customers –> no calls, mailings only

Question 13

What is the model that is used to segment customers?

Answer 13

The ABCD Matrix Model

Question 14

What are the levels in the ‘buying ladder concept’?

Answer 14

Unaware
Aware
Accepts
Tests
Prescribes
Prefers
Ambassador

Question 15

What is the concept of buying ladder for?

Answer 15

steps that describe the customer’s prescribing habits and attitudes in qualitative terms

Question 16

For the buying ladder concept, what does ‘accepts’ mean?

Answer 16

Agrees on the main benefits of the brand, hasn’t prescribed it yet

Question 17

For the buying ladder concept, what does ‘prescribes’ mean?

Answer 17

Prescribes brand to specific group of patients, doesn’t prescribe brand as first line option

Question 18

For the buying ladder concept, what does ‘prefers’ mean?

Answer 18

Prescribes brand as first choice first line option

Question 19

For the buying ladder concept, what does ‘ambassador’ mean?

Answer 19

“PREFERS” and positively influences prescribing behaviour of other physicians

Question 20

What are the 2 types of managements in customer relationship management?

Answer 20

1. Key Opinion Leader (KOL) management
2. Key Account Management (KAM)

Question 21

What does the personal contact cycle consist of?

Answer 21

1. pre-contact activity
2. execute activity
3. post contact activity

Question 22

What are the objectives of personal contact cycle?

Answer 22

1. Continuously optimizing the impact of medical sales people on Customer buying behaviour
2. To continuously improve knowledge of our customers behaviour and their needs –> generate customer satisfaction
3. M&S alignment to fully support Personal contact cycle

Question 23

What is a KOL?

Answer 23

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

Question 24

When do pharma companies engage KOLs?

Answer 24

1. research and clinical trials
2. writing medical articles
3. speakers for clinical presentations
4. company advisory board members

Question 25

What are the major type of issues in KOL management?

Answer 25

ethical issues

Question 26

What are the responsibilities under KOL management?

Answer 26

1. Identification of KOLs and build-up of KOL network 2. Understand and manage KOLs expectations 3. Maintaining good and sutainable relationship with KOLs 4. Measurement of results

Question 27

What is a key account?

Answer 27

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

Question 28

Give an example of a key account

Answer 28

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

Question 29

What is key account management?

Answer 29

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.

Question 30

Account Management is generally applied if the following characteristics apply in a market:

Answer 30

1. A small concentration of customers which generates a substantial amount of sales in the market 2. Specialized products, fierce competition 3. Account has a Decision Making Unit that makes decisions according to formal procedures

Question 31

What are the key activities in KAM?

Answer 31

1. Identify and understand the decision making process in Key Accounts 2. Understand individual behavioral styles and their needs --> long term relationship and creditability 3. Consultative selling

Question 32

What are the responsibilities of a key account manager?

Answer 32

1. highly knowledgeable 2. has deep understanding of customer needs 3. possess vast interpersonal skills for communication 4. gain trust of key accounts 5. a team player 6. highly empowered by company with certain authority to makes decisions

Question 33

A key account manager needs to be highly empowered by the company with certain authority to make decisions. True or False.

Answer 33

True

Question 34

What is the characteristic of KAM strategy?

Answer 34

needs to be customer centric and full endorsement from top management and support from the whole company

Question 35

Why is sales force important?

Answer 35

- They work on the front line of business --> have direct contact with customers - their performance directly affect company result

Question 36

What are the factors contributing to sales force effectiveness ?

Answer 36

1. Hiring and training of talent staff 2. Sales force design: structure and roles, size, territory planning 3. know the customers 4. motivation: fairness. compensation and incentives 5. performance management and measurement

Question 37

What does leadership involve?

Answer 37

1. Create a vision of the future 2. Ability to motivate and inspires people to deliver 3. Coaching and development of others 4. Managing delivery of vision , get the results

Question 38

How can motivation be achieved?

Answer 38

1. positive reinforcement 2. Empowerment of employees 3. Encourage creativity and innovation 4. Improve employees competency 5. Competitive salary and incentive 6. Base rewards on job performances 7. Treat people fairly