L2L Pharma

Segment to Survive - One Size Doesn't Fit All.

Mon, 16 Aug 2010 12:15:00 GMT

Have we been focusing on a "one-size-fits-all" approach to sales force effectiveness? As the sheer size of a typical pharmaceutical salesforce comes into focus and as budgets are under pressure like never before, the pharmaceutical consultant may find that senior management is beginning to ask questions, just like this. While it is always true to say that the 80/20 rule is a fantastic indicator throughout the business world and we know that a certain proportion of our sales force is going to be highly productive while many are not, it’s high time that the typical sales company and pharmaceutical consultancy addresses exactly how salesforce effectiveness is – well, just not effective.

Consider many of the metrics that are traditional in our world and consider the approach that is often used as a sweeping, across-the-board approach to the issue. There is far too much generalisation and far too little segmentation, resulting in "below par" results. For example, high-volume prescribers are almost universally targeted, purely due to the fact that they spend a lot of money. Often, an approach to this particular doctor will be based on an assumption that he or she is inclined to spend in this particular niche, without regard to that individual's particular circumstances, triggers, drivers, likes, distastes or motivators. It's almost as if they are treating the professional as an automaton and this is surely not what pharmaceutical marketing training seeks to teach, is it?

Industry intelligence can be very valuable and can show how effective a company's competitors are at reaching a particular professional. It's not acceptable to use this metric alone when deciding to target, yet this kind of broad brush approach is often used. Results may have been incurred, but the results could have been far better and perhaps more fruitful if the professional had been approached from a different angle. This is why it's important to analyse the behaviour of different groups of end-users, so that the most appropriate drivers can be targeted. It's time to stop making assumptions and to start digging deeper, to really understand what motivates a particular professional into making a buying decision. Once these groups have been segmented, they can be placed into appropriate categories, potentially leading to far more productive results. This is where the pharmaceutical consultancy should practice diversity and ensure that pharmaceutical marketing training for the modern era involves fewer generalisations.

In the past, it may have been acceptable to buy potentially valuable “intelligence" data, lists and resources from traditional sources. These could well be the same lists used by competitors and this practice could well have contributed to the overload experienced by certain doctors, due to that style of targeting. There is far too much at stake to take this generic style of approach and a pharmaceutical consultant needs to help management determine a way of “dialling in" data, in order to determine a far more targeted solution. Members of the salesforce itself may already have a lot of this data and intelligence, due to their one on one interaction over the years. Use this kind of intelligence wisely.

Forget Sales Volume, It's All About Customer Contribution.

Mon, 16 Aug 2010 12:18:00 GMT

Customer contribution must become a more important metric, when key account management designation is under consideration. A pharmaceutical consultant must impress upon senior management that traditional measures used to define a client's contribution are no longer adequate. In the days when money seemed to flow a lot more freely and the business world was far less complex, management decision-makers could often refer to the monthly sales volume, or market share when considering how important the particular client was to the overall mix. Quite simply, the more money that came through this particular client pipeline, the more money in terms of time, effort and resources could be placed into the pot by the pharmaceutical company, to make sure that that client was likely to stay around.

Pharmaceutical marketing training teaches us that key account management is only one part of several major components, when customer relationship marketing and management is considered. While considering the management of key accounts, it's important to analyse the customer portfolio, consider the lifetime value potential, an increasingly more important metric that should determine whether the lifecycle is likely linked to a particular product, trend or other value. A pharmaceutical consultancy knows only too well that key account management can only be successful if an "appropriate" relationship is developed and that in this particular field, one size most certainly does not fit all.

When it comes to customer contribution, this can often be rather difficult to quantify. Does the customer represent a strategic ally for the company? As politics within the industry becomes ever more prevalent, it's quite conceivable that a customer could be designated as "key," even though the actual financial contribution to the company's turnover is relatively small. In terms of lobbying or other methods of tangible or intangible support, it could be well worthwhile for the company to elevate this particular client to a pedestal, alongside those who may be contributing a great deal more in financial terms.

Pharmaceutical marketing training must be able to recognise the diverse contributions that each and every client makes and how rather subtle elements could translate into potential benefits for the company. Does this mean that the pharmaceutical consultant must also be an expert in psychology and should seek to train all those who come into contact with these key accounts in the subtle nuances associated?

By some estimation, almost 2/3 of pharmaceutical companies in the market today still consider key account management to be largely ruled by sales volume. Clearly, there is considerable opportunity for the pharmaceutical consultancy here, to step in and educate the company and its representatives. As it becomes ever more difficult to adequately communicate with the end user, it follows that the company should become ever more strategic in the way that it micromanages its existing client base. Pharmaceutical marketing training will need to avoid the use of a broad brush in the future, but focus more on the touch of an artist repainting the Sistine Chapel, as key account management comes to terms with this new reality.

Empower The Sales Representative.

Mon, 16 Aug 2010 12:21:00 GMT

What will it take to survive in the pharmaceutical sales industry? Hardly the same approach to the role of sales and marketing "at the sharp end," and more than likely a complete re-evaluation of the way that pharmaceutical marketing training is structured. For far too long now, conventional methods of engagement have been celebrated, where a sales representative is expected to “detail” with a set number of healthcare professionals in a certain region, over a set period of time and according to given parameters. Success was often measured in terms of percentage of penetration and the focus was product-centric rather than client- or problem-centric. As the pharmaceutical consultant knows all too well, the industry is going through a process of regeneration and metamorphosis and such an approach to business will not work. All that traditional pharmaceutical marketing training will become increasingly irrelevant.

While a pharmaceutical consultancy can help the client organisation to develop a new approach to the challenges ahead, it's at the sharp end that the majority of changes need to take place. In short, the sales representative, him or herself, needs to be reinvented. Can this be accomplished with the existing staff of reps? Certainly, entrenched attitudes and approaches need to be overcome and the rep encouraged to develop a more "entrepreneurial" approach to doing business. In many respects, the sales rep should be treated as if he or she was a purely independent contractor, at least in terms of the way that they motivate themselves to generate income.

An entrepreneur finds a solution and does not take the word no for an answer. This will often involve innovative thinking and will require a greater understanding of the problem and, indeed the client. The entrepreneurial sales rep should dig deep to find out what drives the buyer, generate more workable intelligence and then be encouraged by the pharmaceutical consultancy to bring this intelligence back and share it within a newly created “think tank.” This may also require a fundamental change in thinking, as the entrepreneurial sales rep should begin to understand that a pooling of intelligence resources could only help everyone to explain and understand the market better and in turn focus on enhanced sales potential.

There was a time when hunger was created among the sales force by comparing peer performance. The rep with higher revenue was seen as superior and this in turn was used to motivate the remainder of the force. Any pharmaceutical consultant should understand how this could be counterproductive to the end goal and how each entrepreneurial sales rep could, by contributing to the potential for the entire team, end up in a better position. This may certainly require a new approach to the process of motivation and remuneration, but if handled correctly would almost certainly result in a better personal relationship between the rep and the end-user. Goodness knows that any improvements here would be welcome, as the typical practitioner has been ready to turn away from the attentions of the sales rep, due to a perceived lack of care or even apathy.

Focus On The Individual To Weather The Storm.

Mon, 16 Aug 2010 12:22:00 GMT

Does the pharmaceutical industry face the perfect storm in the foreseeable future? It certainly appears as if we are set for one of those re-generational periods, relatively rare occurrences when the very way we approach our daily problems and issues endures a fundamental change. The pharmaceutical industry is not alone here, as many other industries are also set for a quantum shift in the way that they do business -- just look at the auto industry, as an example. For the pharmaceutical consultant, charged with the responsibility of advising and leading the client, these are testing, challenging, yet exciting times, when the cream of the crop is likely to rise. It's simply not time for the fainthearted and it's most definitely not time for the "status quo."

Let's look at the challenges ahead. What is becoming known as the patent cliff is rapidly approaching, with market forces likely to create considerable upheaval at that time. We also know that the market itself is shifting in favour of niche solutions to increasingly complex issues, instead of the previously predominant "blockbuster" product approach. In political circles, the U.S. Congress passed a very controversial health-care reform bill after fractious debate, which, while it may introduce many thousands of people to healthcare products for the first time through insurance coverage, is yet to be fully explained or understood. In almost every market, especially in the UK, budget deficits are at almost catastrophic levels and this is almost certain to drive significant reductions in health care spending. Little wonder that the share price of leading pharmaceutical companies is taking such a battering.

The heady days of the past have come to an end and the pharmaceutical consultancy must adapt to survive. In terms of sales and marketing, the shift must move from sales and toward marketing, as little if anything is "guaranteed" anymore. Pharmaceutical marketing training must be reinvented, to reflect the pressures of the New World. Add an increasing trend toward the regulation of pharmaceutical marketing in the US and you can argue that this industry will be difficult to recognise, as compared to its former self, within a few years time.

So where should the pharmaceutical consultancy start? Fundamentally, the business has to move away from an emphasis on the pure sales function and devise innovative strategies to rebrand itself. It seems certain that the traditional army of sales representatives will be much smaller, more targeted and the focus of niche related pharmaceutical marketing training. While regional markets may face distinct problems, no individual market is immune to major changes taking place in other markets around the world. As such, the changes in the US market and the significant budgetary cuts in the government led UK market will redefine the playing field. The pharmaceutical consultant must understand that to be successful in the future, a pharma company must be able to engage different marketing techniques, capitalise on niche markets and develop much closer, more personal relationships with healthcare professionals. In short, the business relationship is likely to become far more personable, and far less number oriented.

Key Account Management Differentiates Value

Wed, 09 Jun 2010 05:32:00 GMT

In order for a business-to-business relationship to be formed, some form of value must be evident and attached to both sides. After all, without value what is the point of the relationship? Furthermore, unless value is readily apparent on both sides of the equation and is seen as being equitable, the relationship is not likely to last. One of the main challenges facing the pharmaceutical company’s executives and their consultant team is how to differentiate value and how to ensure that it is delivered to all their clients, especially the most important ones. Key account management training seeks to emphasise how important this differentiation is, and trainers should make additional effort to ensure that all employees within the organisation understand the intricacies.

Fundamentally, the pharmaceutical sales company is providing products to the health care professional and these valuable instruments provide a distinct benefit to the purchaser. The purchaser must in turn make sacrifices in order to receive the value of these products and before this value can be consumed. This exchange of value is at the core of any business-to-business relationship. The relationship is elevated, however, if there is potential, perceived value to be gained on either side. This is where key account management training reveals that additional benefit could take the form of market position, enhanced service, exchange of valuable information, reputational enhancement and/or a number of other, often subtle elements.

In some cases, the value of a key account is interpreted differently and even independently. For example, the client may not be aware that the sales company is treating their association as "key," at all. The interpretation may be entirely one-sided, as it may not need to affect the way that services and products are delivered from the company to the client. The relationship between the two may work entirely well on this basis. Often, however, value is determined according to the actual relationship itself, where a certain amount of collaboration is expected and required and value is obtained through close cooperation.

If an organisation pays particular attention to key account management training, its entire operation will be devoted to enhancing the relationship and the value derived from a straightforward exchange of product for remuneration may well represent only a small part of the value exchanged. Much attention should be attached to relationship building, with a particular focus on to what extent the key account relationship is important and special. This is where pharma training can become very complicated and can often appear to focus on areas that are not necessarily central to the organisation's mission statement. Pharma training must emphasise how dynamic these relationships should be and how "over delivery" can help to cement their future.

Pharmaceutical consultants that take the time to dissect the meaning of value in relation to each and every key account can often help the parent organisation move much further than competitive organisations, which often ignore or gloss over the importance of this concept. Understanding and dissecting value is core to key account management.

Influence Without Appearing Authoritative

Wed, 09 Jun 2010 06:46:00 GMT

The secret behind the establishment of solid, long-lasting and productive relationships in the business world is the ability to exert influence without appearing to be trying to exert authority. Key account management training focuses on the ability to establish influence in the relationship, but should make sure that the sales representative understands how much effort and time must be put into the process of preparation, before engaging with the prospect. The field of pharmaceutical sales can be more like a minefield, as the sales representative tries to bring a particular product to the attention of the end-user. So many external influences are at play, with so many different and sometimes powerful emotions to take into consideration that the really focused sales rep will ensure that he or she does a lot of work behind the scenes, before even venturing out onto the street.

Many healthcare professionals, pharmacists and practitioners have become rather jaded, often as a consequence of saturation, overkill and poor sales and marketing techniques. The average professional comes across many different pharmaceutical reps during any given week and may not anticipate these meetings very well. This makes the pharmaceutical sales rep’s job a lot more difficult, as influence must be exerted without any posturing or undue articulation.

Consultants who provide pharma training to sales representatives must focus on building confidence and must ensure that the rep understands the importance of preparation. You have to know what your endgame is and what you want to achieve, very clearly. This will vary from client to client, but the rep must master the ability to differentiate, even if he or she is always trying to sell an identical product. Be prepared for the rebuttal, which could be couched in many different forms and be prepared to be clear and assertive, without appearing to try and dominate.

Building a foundation of influence requires some subtle and often behind the scenes activity. It might well be necessary to engage with others, often gatekeepers, who work within the target organisation. Be proactive here and make sure that you are empathetic and understand the challenges facing the prospect. You will need to look vertically and horizontally and take into account factors which may not necessarily have any direct association with the ultimate goal, but may nevertheless impact in one way or another. By doing all this groundwork, you are establishing a key position of trust, an essential attribute taught during key account management training.

By knowing what your prospects are likely to say to you in advance, you can have your position carefully crafted and be prepared to deal with their objections, positions and likely response. You should be able to predict and provide them with a clear solution, one that meets their needs and wants and satisfies your ultimate objective, as well. It's important to build flexibility into your stance, so that you can be seen to "give" somewhat, if necessary, helping to achieve a powerful feeling of collaboration between all parties, creating good relationships going forward.

How To Hear Yes, Rather Than No

Tue, 08 Jun 2010 05:08:00 GMT

In the end, it all comes down to the issue of noise. We are bombarded by noise in our personal lives, on a constant basis. When we enter our professional arena, this noise level tends to increase and as human beings, we can be forgiven for resisting this noise and becoming very jaded on any given day. Noise tends to take the shape of relentless marketing, some of it strategic, some of it "in-your-face," some of it subtle. This is just part of the makeup of our society and we are all accustomed to it.

The job of the pharmaceutical sales rep is far from simple. This is a very competitive and often very emotional arena and the product can have far-reaching consequences for the pharmaceutical professional and the end-user, the patient. Many professionals and practitioners have little time for pharmaceutical sales representatives and they may have amassed bad feelings, often due to poor sales practices and/or incorrect information.

Key account management training focuses on teaching the representative to cut through the noise and to speak the words that the client really wants to hear. Many clients believe that the sales representative is only "in it" for themselves, that they do not understand particular problems, issues and requirements and tend to take them for granted. Over time, poor relationships are built up between the professional and the rep and this is likely to lead to even more resistance. In this scenario, it can be very difficult to get to the "yes," and pharma training must concentrate on how to prepare for the meeting, how to re-create relationships and how to clear away the damage caused by bad historical practices.

Much of what is taught within key account management training is subtle and strategic. These accounts are "key" for a reason, but just because they are more likely to engage with the pharmaceutical company, this does not mean that they can be treated as "part of the furniture." Indeed, the organisation may require much more, as a consequence of the relationship, than an account that is not classified as key.

Employees who are designated to interact with the key account must always be clear about their objectives. These must be laid out in a detailed form by the trainers and must be adopted by the employees. If a particular position is sought, the end goal must be very clearly understood. This cannot be over emphasised. The employee must understand the structure of influence within the client organisation, which could include other professionals, peers, subordinates, secretaries or receptionists. Overlook a particular individual at your peril, as you will not get past the rebuttal.

Each client and prospect is different, they are subject to a variety of external influences, have different levels of resistance to "noise," and will require a completely novel approach on the part of the pharmaceutical sales team. Understanding how each client is different, to a finite degree, is essential and this will allow the sales company’s point people to create a valuable exchange of some kind, drastically increasing the prospects that the client will come on board.

Emphasise The Personal To Ensure Customer Loyalty

Tue, 08 Jun 2010 05:10:00 GMT

By now, pharmaceutical companies must appreciate the importance of key account management training and how they must always be in possession of the latest, cutting-edge marketing information to enable them to actively solicit and then cultivate major, important accounts. There may be a tendency to concentrate on the establishment of a "system," where a large number of individuals within key roles are all engaged in helping to ensure that the "big picture" is realised. We know that it takes many individuals within an organisation to satisfy the requirements of the key account and that these individuals must all work together in harmony. However, there may be a danger that the personal element of interaction is overlooked, to the company's peril, when an organisation’s marketing structure is designed.

Failure to communicate effectively may be one of the principal reasons why relationships fail, even though actual value is being exchanged. The element of one-on-one contact is still the most important and must be handled very carefully. Key account management training may well call for many different individuals within the company to be intrinsically aware of a client’s needs. A multitude of individual communications may take place. However, there must still be a "point person," nominated by the pharmaceutical company, to deal with the most key individual within the key account. This relationship must be identified at the very earliest stage and must be constantly tended to, or failure may be ahead.

Customer service may be one of the first areas to be considered for cutbacks during slower times and while certain roles may indeed be effectively consolidated under the total domain of key account management, personal contact with the key client should never be overlooked. It is also not sensible for the organisation to put all its eggs in one collective personality basket. Relationships, whether in personal or business situations, are often based on the convergence of personalities, but there is a danger in relying upon these alone. Key account management structures should build in a certain layer of redundancy and ensure that the relationship with the client could not completely collapse if one party departs the organisation.

Key account management training should never be cast in stone, or the subject of a repetitive, "proven" philosophy. Consultants or managers who are responsible for overseeing these structures should themselves ensure that they are "in touch" with life on the street, with the wants, needs and requirements of their clients. They should not operate in isolation from the marketing office, but should get out and visit clients. This will help them to understand how to modify their marketing structure and also enable them to act readily and with confidence, should any break in the interpersonal relationship pipeline occur.

The road ahead is challenging for the pharmaceutical company, as even more legislation arrives and as a process of consolidation and acquisition is anticipated. As major patents expire and as more focus is put on "niche" solutions and products, pharma training must become more comprehensive and diversified.

Emotional Rollercoaster -- Understanding The Decision Process

Mon, 07 Jun 2010 09:00:00 GMT

As pharmaceutical sales representatives know only too well, a decision-making process is not based alone on rational factors. Contrary to some opinion, doctors and healthcare professionals do not operate in an emotional vacuum, even though they often have to keep their emotional sides in check to maintain professional competency and sanity. They lead their lives in the real world and are subject to the formation of opinions, the attraction of positive and negative emotions in any number of ways. This subtle interaction of external factors can often help persuade a process of decision-making and this is becoming readily apparent in the field of pharma training.

As the marketplace becomes more diverse, more competitive and is subject to more restriction, pharmaceutical companies must ensure that their employees are trained to deal with the new reality. Some studies have shown that emotional factors can account for almost as many motivational triggers as their rational counterparts. Whether the professional is aware of the situation or not is conjecture, but it certainly makes the role of the pharmaceutical sales representative a lot more difficult. The professional may be inspired by a particular brand reputation, by a particularly positive or negative reaction from a client or two and could form opinions based on the overall success of a brand marketing campaign. Often, a brand that is not able to portray its "nobility" in holistic terms, may fall well short of satisfying a healthcare professional’s avowed intention, to provide for their patient’s ultimate care.

Key account management training should encourage individuals within the organisation to observe and decipher the process of decision-making as keenly as possible. It is often impossible to fully determine and to understand what emotional factors may drive the choice, as a professional may not reveal these elements, consciously or subconsciously. Nevertheless, a keen observation may reveal subtle clues, be they visual, spoken or sometimes written and this data should be gathered and assessed to enable a pattern to be revealed.

Certain insight research groups are beginning to compile trend information and analysing the emotional needs of physicians and practitioners, providing such information to the pharmaceutical industry. Consultants should pay particular attention to the findings of these surveys, which could help to pinpoint areas where the particular organisation can improve. Key account management training should then be modified to ensure that the approach is consistent with the needs of the client, from both a rational and from an emotional perspective.

In the ultimate position, the pharmaceutical sales company will be more aware of individual buying decisions than the individual responsible for making the decision. It's important to understand that emotional triggers can not only affect individual prescription decisions, but also affect engagement from an overall perspective. If the pharmaceutical company can make alterations to its modus operandi, then it may in turn bypass the objections of the client.

As the market becomes more and more competitive and even more heavily regulated, it is likely that emotional buying decisions will become even more relevant.

Curves Ahead -- Congressional Health Reform Impacts The U.S. Pharmaceutical Industry

Mon, 07 Jun 2010 09:06:00 GMT

Recent revelations from some of the largest pharmaceutical sales companies indicate how pharmaceutical marketing is likely to change in the years ahead. Under pressure from Congress, these organisations are starting to reveal how much money is paid to healthcare professionals during the marketing phase, as they seek to interact and to sell their products. In many instances, key doctors have been engaged to act as consultants, to spread the word about particular drugs and their benefits; these levels of engagement are now being revealed.

Congressional health reform will require pharmaceutical companies to declare any payments, fees or gifts made to doctors, practitioners and hospitals, beginning in 2012. This information will be correlated and will be made public from the following year, onwards. Some organisations are choosing to pre-empt this requirement, by making information public already. Pharmaceutical sales companies defend these payments as important and indeed essential in helping to spread the word about the benefits associated with individual products. Payments are made to benefit patient care ultimately, although it is true to say that there is a certain layer of negative perception on the part of the ultimate consumer. This is where pharmaceutical sales and marketing must enhance its game, in order for a clearer and more descriptive picture to be painted.

Changes in the healthcare field dictate that executives and pharmaceutical consultants must pay more and more attention to sales and marketing and specific pharma training. Whether direct payments are part of an association or not, key account management training must ensure that both parties to the arrangement are clearly focused and understand the depth and breadth of the association. It may be necessary to reposition the relationship, in the light of changes, legislation or public opinion. If nothing else, the most recent changes emphasise the need for key account management training to be cutting-edge and to recognise the level of dynamism in the field.

Many doctors concur with the findings of pharmaceutical companies and make sure that ethical boundaries are not crossed. Doctors routinely disclose that they have a relationship with these companies and make sure that they tailor their talks, and recommendations, so that they are not seen as being partisan.

However, it is likely that direct payments will become less important and represent a smaller portion of the overall marketing mix, as new legislation rolls out and as reporting restraints are established. Some perceive any change as a challenge, while pharmaceutical companies that pay constant attention to the marketing mix, to the way that they treat their key account management, will always be ready to apply change for the good.

Pharmaceutical consultants understand how many external forces are in play, in this case due to political initiatives and from changes in public perception. They ensure that pharma training is amended as often as necessary to ensure that their staff are able to proactively engage in the market. In short, the consultants will always ensure that the organisation is adequately prepared for any eventualities that may transpire.

Pharmaceutical Marketing – Are Samples Welcome?

Mon, 26 Apr 2010 05:27:00 GMT

The role of the pharmaceutical sales representative has often been challenged from a public relations perspective. There are some who believe that the pharmaceutical company, through their representative, retains more than the appropriate share of influence over the healthcare practitioner’s decision-making process. From time to time, populist media points out that far more is spent on pharmaceutical marketing than research associated with the development of the products. Nevertheless, pharmaceutical marketing techniques are essential in disseminating the information necessary for the practitioner to make a final deliberation as to whether the product should be prescribed or not. The sales force plays a critical role in bringing the product to the market as efficiently and effectively as possible.

In most recent times there has been a move in certain markets to restrict the giving of gifts, including drug samples, by pharmaceutical sales people to practitioners. In particular, Partners Healthcare, the largest hospital and physician network in the state of Massachusetts has implemented guidelines, specifically prohibiting their physicians and researchers from accepting gifts or drug samples from pharmaceutical manufacturers. Now, sales representatives must get written permission before they are allowed to interact with the network’s employees and if any drug samples are provided, the samples must be forwarded to a centralised system, so that they are distributed anonymously and for the use of the entire network. The president of the Association of American Medical Colleges determined that these new guidelines represent "a serious and comprehensive step forward in the rapidly evolving arena of medicine and its relationship with industry."

According to the originators of this policy, the recommendations came from an internal review, where potential conflicts of interest were analysed over the preceding two years. At that time it was recognised that the relationship between the pharmaceutical company and the health care professional was fundamental to enable scientific advantages and advances to propagate to the patient, but the body did question whether some techniques used could compromise the integrity of the system.

Some have suggested that gifts or drug samples may adversely affect the healthcare professional’s neutrality and may promote them to issue or prescribe the associated drugs more favourably than any others.

It remains to be seen how the developments in Massachusetts pan out, or whether similar proposals are adopted within other networks or jurisdictions. This does represent another example of how the pharmaceutical marketing industry is changing and moving with the times. It is yet another reason why pharmaceutical companies should devote their resources to pharmaceutical consultants, so that the consultant can ensure that the team is up-to-date and ahead of the competitive game. Pharmaceutical sales training will take on even more importance as new methods of communication are combined with changes in healthcare legislation to redefine the marketplace. The significance of primary accounts will increase in the market, as there is more reliance on two-way communication and information exchange. Key account management training is a role that the competent pharmaceutical marketing company is best placed to undertake under the overall mantra of pharma training.

The Importance of Effective Implementation Lies In Psychology

Mon, 26 Apr 2010 05:26:00 GMT

How many times have we been to a sales seminar, or to a top-flight convention, to become totally engrossed in what we find there, able to "milk" in the atmosphere and to feel the motivation building up inside us? This is exactly what these events are designed to do, to instil that sense of excitement, ready to propel us into the market and really sell whatever product or service is in question. Pharma training sessions or books can be similarly motivational and there is always an important time and a place for these tools to be used by the typical sales force. However, we can never underestimate the importance of effective implementation, as when the "rubber hits the road," a lot of that motivation quickly seems to be absorbed into the atmosphere.

This is a problem that has plagued the corporate trainer or the motivational speaker for generations. It may be relatively easy to propel a salesperson to make a plan and to thereby establish a relative goal, but the execution is often the challenge. It's all very well talking about theoretical situations in a classroom environment, outlining the threats and challenges that are likely to be faced in the real world and implementing training to ensure that the salesperson is best prepared to cope. However, it must be understood that very many different factors come into play when the salesperson is actually engaged with the prospect and one could argue that the biggest hurdle facing the salesperson when trying to "land" a sale is the attitude or subconscious direction displayed by the salesperson him or herself.

Pharmaceutical sales training must be careful not to introduce impossible, sometimes psychological barriers, which would effectively stand in the way of effective implementation. Corporate goals may suggest that a 100% result is required and that the salesperson should have only one true goal in mind. Often, however, the salesperson must be able to use individual initiative and to understand that opportunities come in many different shapes and forms. Sometimes, a relatively high percentage result is better than 100% of nothing.

A sales person must be taught that a display of persistence in the face of adversity is important. While it is also important to recognise when the parameters have changed so much that a goal is simply not achievable anymore, it is so important to maintain course when surmountable obstacles are laid in the way. This requires a person to adapt and evolve and use internal motivation to dodge the final line of defence and score the goal.

The sales force must be supported in the field and anything less than total commitment from the organisation in terms of resources, training, as well as product strength and deliverability will undoubtedly result in a lower effective rate of implementation. When key account management training is under the microscope, the “point” person will not be able to service accordingly and implement effectively unless specific and unequivocal parameters have been set by senior management at the outset.

Sales Force Effectiveness – Bigger Is Not Necessarily Better

Mon, 26 Apr 2010 05:26:00 GMT

It's no longer acceptable for a pharmaceutical company to operate according to the mantra that "bigger is better," based on the concept that the more people engaged in the marketplace, the better the return. There was a time when pharmaceutical companies used to challenge each other based on the size of their workforce and there was an assumption that such a volume would equal adequate revenue and a rate of return that would satisfy the corporate accountant. However, in many respects this approach has led to saturation in the market, even as the market itself changes its characteristics. There is more emphasis now on "niche" products and marketability and as such there is more demand for dedicated training and focus, rather than a blanket approach to the issue. Sales force effectiveness is coming under scrutiny like never before, as it is realised that an oversized sales force could not only be neutralising, it could be detrimental to the success of the company.

Pharmaceutical sales training must have two distinct components -- the all-important product education and the dispensation of latest, cutting-edge techniques and approaches, to ensure that the salesperson is able to survive in this new era. While the salesperson must always be focused on "winning," it is not acceptable to approach the art of landing a sales contract at any cost. The value of the new contract must be assessed in terms of its strategic goal and logistical impact, quite apart from its economic benefit. Sometimes, a profitable sale "on paper" might turn into a very different outcome, when other factors are assessed.

With margins so narrow, the difference between success and failure so thin, sales force effectiveness is one of the most important metrics an organisation can study. Experienced consultants should be engaged to help in this facet off pharma training, to increase productivity, cut expenditure and boost morale among the sales force. Motivation is a very delicate subject and is far from just the provision of relevant financial bonuses for the salesperson. Indeed, sometimes financial compensation is not a primary driver and the organisation must be able to determine what really pushes each individual on the sales force. More often than not, a goal must not be infinitely achievable, or the sales person could be subconsciously held back as progress is made.

Sales force effectiveness impacts sales volume, related expenditure and profit margins, so poor performance in any one area can have far-reaching implications within the others. An organisation can start by assessing its current situation, looking at the metrics used to determine success or otherwise and how these very metrics may, by themselves, be contributory to the problem. Correct sizing of the sales force is so important, with territorial allocation and parameters such as "share of voice" optimised. How many sales calls does the salesperson make on any given day and is an inordinate amount of time spent travelling or on other non-productive activities?

Every moment that a salesperson spends with the client, whether detailing or otherwise, should be optimised as part of a revised approach to key account management training.

Pharmaceutical Marketing – Legislation Heralds Change

Fri, 23 Apr 2010 11:40:00 GMT

The recent landmark passage of health care reform legislation in the United States surely represents one of the most significant milestones in the global health industry and will certainly drive changes that will be far-reaching for all pharmaceutical companies and their marketing operations. The common marketing landscape has been changing in recent years, in part in response to the lengthy worldwide recession and this has provided notable challenges for every pharmaceutical company and supporting consultant organisation. Traditional methods of operation simply do not work anymore and organisations have been forced to become more consumer-centric and strategically positioned in order for their voices to be heard in the marketplace.

The United States legislation could be viewed, on the one hand, as being a potential boon for pharmaceutical companies, as upwards of 30 million people could be expected to be brought into the insurance coverage arena, with consequent potential for enhanced sales. However, the very makeup of the market will significantly change in the US and as health insurance companies will have to adhere to a whole new raft of legislation, standards and procedures, budgets may be challenged. In short, the composition of the redesigned market is yet to be ascertained.

With such a large number of potential end-users entering the marketplace, new methods of information dissemination will undoubtedly take hold. As the digital communication age continues to mature, pharmaceutical marketing methods may increasingly rely on online programs and channels, as health care providers also turn to these channels to solicit clients and to communicate with a patient.

As information is disseminated online, consumers may in increasing numbers be driven by social media and word of mouth stimuli and healthcare providers may find that they have to rework their positions, as those who recommend products to the final marketplace. Pharmaceutical sales training techniques and approaches will need to be modified, so that the company's message is not diluted or delivered in an inefficient manner, within this new communications framework.

It’s likely that there will be a shift towards prevention and health awareness and that more funds will be allocated from a global perspective towards this facet of education and the dissemination of products and services accordingly. The pharmaceutical company must revisit its position and understand how important it is to be seen as an educator and as a good role model when it comes to preventative and good health care practices. Furthermore, it still remains to be seen how a restructured healthcare market will take into account the revision of funding sources, as a shift is made within insurance markets and as new consumers enter the picture. Key account management training will be even more important as these accounts are redefined in the new era and pharma training repurposes itself.

In short, as the entire United States healthcare industry is reinvented and restructured, changes may be expected in the way that pharmaceutical marketing is conducted, in all markets. The entire business continues to be very dynamic as the world's economies emerge from recession and as new communications methods demand different approaches to marketing, to commute to bring the appropriate message to the right ear.

Pharmaceutical Marketing Training Focuses On The Skill Set

Fri, 23 Apr 2010 11:38:00 GMT

To establish market superiority in the pharmaceutical sales business requires a large degree of analysis and the establishment of certain criteria to enable the training consultant to analyse and to get the most out of the sales force resource. The goal of first-rate performance is achievable if the consultant is able to help the client understand and first define benchmarks and competencies. Without the ability to measure these competencies, goals cannot realistically be set and individuals may not aspire to meet them. It is therefore important that the pharmaceutical company understands and helps to develop the framework at the outset.

Specific marketing roles must be developed according to specific sales targets. It is important to understand what is expected of each role and to clarify the individual's responsibility and methodology. It is likely that each role within an organisation will retain certain uniform competencies, which could be regarded as core principles, but it is very important to accurately define the competencies that are specific to the role and thus must be mastered by the individuals so assigned.

Pharmaceutical sales training should take into account cutting edge methodology and utilise the experience and ability of the consultant organisation to best effect. Selling skills have become more advanced and rely less on pure number crunching and goal orientation, but rather focus on personal interaction with the buying entity. To pick up specific product knowledge, pertinent to the individual's objective, requires a salesperson to have a clear understanding of the buyer’s position and the variety of external factors that could influence his or her decision, when it comes to decision time.

Pharma training will help to instil the company's brand strategy and overall objectives, so that the salesperson fully understands what the company is trying to achieve from a broader perspective. The consultant will help the salesperson understand the composition of the market, how strategic marketing can help to impart knowledge of the brand and how the latest communication tools and methods can work.

The salesperson of today must be a public relations expert and be very adept at interpersonal communication. The buyer/seller relationship in the modern pharmaceutical business can often represent more of an informational partner exchange. In addition, the salesperson really must understand what factors influence the buying decision and will come to realise that many of these are subtle and somewhat subliminal.

As an account is designated as principal and very important for the pharmaceutical company’s ongoing performance, key account management training must ensure that those individuals who deal with that particular account are trained in the intricacies. These individuals will require specific skill sets, which will undoubtedly extend far beyond typical sales and closing skills. Key accounts are often looking for a two-way interaction and for the pharmaceutical company to help establish the position of the key account in one way or another. Everyone involved in servicing this account must be consciously aware of the special techniques applicable, whether or not a particular individual is actually responsible for hands-on deployment.