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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. Dwivedi
Project 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)

Parma 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 companys 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
without
approval 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
companys portfolio, rather than the traditional plan for each sales force team. The integrated plan
should identify the companys 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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INTRODUCTION
AN organizational structure defines how job tasks are formally divided in to groups and coordinated.
The
new rules of operating in todays global business environment make structure and design even more
critical. There are five key elements a manager needs to address when he designs organizations
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 Criterias 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.
Several
representatives 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 master
degree 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 and
salary dissatisfaction. As a result, the companies facing this problem started appointing nonprofessionals (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 the
pharma companies.
THE NEW STRUCTURE
Above problem can be solved by adopting the new structure that leads to more specialization. In fact
every
structure demands for the specialization. But we are suggesting a bifurcation in the job of Medical
Representatives. 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 readers 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 MRDs 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 MRCWs 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.

Dire
ctor
CE
s
O
VP Sales
Marketing
Mark
eting
PM
Mana
T
ger
Tea
m

National
Sales
Manage
Zon
r
al

Sr.
Medical
Represent
ative /
Sales
Executive

Reg
Hea
ion
d
Area
al
Manag
Hea
der
Medical
Represen
tative /
Sales
Executive

Pharma Company Organizational Structure

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Pharmaceuticals Organizations department

I.

The Pharma functioning can be divided into five

- 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.
Main Function - Sales and Marketing:

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.

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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
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 industrialscale 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.
2.

Marketing and PMT team


Sales team (field staff)

1.

Marketing and PMT team: Its 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

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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.
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 organisations 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.
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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

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 doctors 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

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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.

The customers for pharmaceuticals Business are


i.
ii.
iii.

Doctors (Who raise the prescription)


Chemist (Who honors the prescription)
Stockist (Who supply the stocks to the chemist)

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iv.
v.

Carrying and forwarding agent (Who hold the stock)


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.
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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 retailers 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

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 oneto-one basis.
Typical work activities

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In 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;
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
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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


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
1.
2.
3.
4.
5.

Doctor level
Chemist Level
Patient level
Masses level
Packaging Level

b) Internal Customers
1. Sale team level

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6. 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


class

Economical Status Upper class or Middle

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

Most commonly used promotional tools to promote Pharma products to


is as follows,

doctors

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i.
ii.
iii.

Visual aid x.
Catch
cover
Literature
xi. Journal
Gift
advertise
articles
ments
iv.
Prescripti
xii.
on pad
Referenc
v.
LBL
3) Chemist Level
es
vi. what Stickers
Understand
type of the chemist is
xiii. Participat
What type
he is serving (Doctors and
Patient
vii.of customers
Clinical
ion
inClass)
trials
Most commonly used
promotional tools to promote
Pharma products to doctors
Symposi
is as follows,
um,
viii. Physician
Bonus offer
Medical
s
Chemist Folder
conferen
Samples
Stickers
ces and
ix. Posters
CME
Chemist LBL (Vernacular Language
Posters
xiv. Involvem
ent in
Gifts
Brand
4) Patient level
launch
Patients are targeted indirectly for brand promotions
and
The best time to divert the patients attentions is when they are waiting in
various
consultancy for their turn.
other
Tools used for patients promotions;
field
Patient Educations literature
activity
Posters
xv. Sponsors
Medical Camps
hips
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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

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Promotion at price level always carries a risk when the competitors


reduce their prices.
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.

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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
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 companys 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.

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7) Promotional Aid
Promotional Aid
Most commonly used promotional tools in the pharmaceuticals industry are

1.

Visual aid

2.

Literature

3.

Gift articles

11.

Catch cover

4.

Prescription
pad

12.

Journal

5.

LBL

6.

Flier

7.

Brochure

Visual Aid

8.

10.

Physicians
Samples

advertisements
13.

References

14.

Participation in

Stickers

Symposium.,

Visual Aid or VA as it is commonly known, is a spiral bound material with


Medical
photo- mount
stand there
are several laminated page s with product messages
9.
Clinical
trials
Advantages of VA:

conferences

Ensure attention of the customer, the picture and messages printed on it are to
and CME
attract the customers attention you can point out relevant portions on the pages
and deliver the detailing story. This ensures Audio- visual presentation. The
15.
doctors sees and hear at the same
time. Bonus offers
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

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Literatures and Competitors Literature


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

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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
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.

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Bonus offer
It ensure better stocking of our product at the retail counters
It generates enthusiasm amongst the retailers
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
Dont 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.

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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
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 companys 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 ones 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.
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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
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 dont 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?

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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.
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

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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

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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
i.

The pre approach

ii.

The approach

iii.

The name of the product

iv.

The you benefit

v.

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.

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This confidant will get transform into building up doctors 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

ii.

Get attention

iii.

Create interest and sustain it

iv.

Present benefits

v.

Demonstrate

vi.

Feedback

vii.

Handle objection

viii.

Close

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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 matter

ii.

Dont hurry and turn pages

iii.

Ask for doctors comments on some special points

iv.

Give brief pause between one product and another

v.

Handle VA gently and with care

vi.

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 properly

xii.

If doctor takes the literature from you and starts reading, do not disturb him let
him complete it. Do not interrupt him.
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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 doctors tables.

iii.

Always remember that you should arrange the samples on the doctors 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 samples

vi.

Use demonstrating technique to make your product stand in doctors 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 days work
How to plan?
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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 doctors clinic / chamber, keep the samples above the napkin
so that you are not confused inside the chamber.
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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.
Doctors 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
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 doctors interest like promotional message, indication,
dosage etc?
Detailing story.
Particular strategy
b) Things not done well:
The mistake made in your detailing.
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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

what the doctor gains?

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)
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A) How to increase the business by meeting the doctor


MR shall meet the customer repeatedly and periodically to promotes the
companys product, by keeping 3 Us of products in mind.
i.

Usage of product

ii.

Uses of product

iii.

Users of product

i) Usage of product:
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

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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 customers list by
converting 2nd line doctors to core customers.

C) What you should know before going to field?


1) Your Product / services:
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

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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 working

ii.

Must have power to grasp the technical aspects of his products as well as that of
competitors

iii.

Must have knowledge about his customers habit, potential desires and
behavioral patterns

iv.

Should take initiative to learn about the competitions activities for efficient and
logical handling of the objections

v.

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 companys 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 company

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xiii.

Enthusiasm to participate in all special assignments, sales competitions and


training programs.

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 companys property.

xvi.

Should have positive attitude, skills and knowledge

xvii.

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 todays 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 doesnt 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,

42 | P a g e

Proper objection handling


Converting the doctors 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 informations, which will help them


to satisfy their patients needs?

iv.

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

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
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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)
Sr.
No.
A
1
2
a

Type of Doctors
Degree

Type

GP (General Practitioners /
physicians)
Bachelor of Medicine
MBBS
and Bachelor of
Surgery
Non
MBBS
Bachelor of
BHMS
Homeopathy and
Bachelor of Surgery

BAMS

BDS

Bachelor of
Ayurveda and
Bachelor of Surgery
Bachelor of Dental
Surgery

Specialty (Job Profile)


Medical Graduates
General Practice in Allopathic,
Family physicians

General Practice in Homeopathy,


Family physicians
General Practice in Ayurvedic,
natural medicines, Family
physicians
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 companys products and forwarding SKUs to the stockist on request.
Most companies keep 13 CFAs in each Indian state. On an average, a company
may work with a total of 2535 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, 515 depending on the city area), and may go up to even 3050
different manufacturers. They pay for the products directly in the name of the
pharmaceutical company after 30 to 45 days.

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

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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.

Chemist: Chemist or retailer is the last or the end part of the chain of distribution.
51 | P a g e

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 Retailers Assistance is equally necessary.
Retailers 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 companys 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 doesnt 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

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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
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 companys 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
53 | P a g e

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)
Dos and Donts at the chemist
Dos:
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
stockists name.
Get the feedback from the chemist regarding doctors 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 competitors brands their composition and strength.
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.
Donts:
Dont touch any of the medicines, prescription at the counter without asking to
the chemist or patient.
Dont ask lengthy questions to the retailer, when he is busy, probably he may not
answer or will not be able to give correct information.
Dont start talking about other retailer or doctor with chemist (gossiping)

54 | P a g e

Dont enter in to the argument if you have any problems regarding availability,
keep pressurising him with persuasion.
Dont open your visual aid at the chemist counter in presence of other
companies MRs.
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
important here Eg.medical rep. dont 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
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We dont call at the right time


We dont have the time. We dont spend enough time we are in a frightful
hurry.
The retailers says he has already place the order with the Stockiest salesman
Summery
Doctors coverage and retailers 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
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.
56 | P a g e

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.
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At any given time ensure that market should not suffer when you take an order.
Use the following formula
Product requirement = Secondary Sales x 2 (Stocks in hand) + (stocks in
Transit)
Managing the services
You must ensure that stockists 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.
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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. 100/2) 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.

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=Current years Sales


Last Years sales
x 100

Gr
o
wt
h

Last Year Sales

Gro
wth

Or

= Current years
Sales 1 x 100
Last Year

The period remains the same

Sales
LYS (Last Year SalesApril 2004- March 2005) = Rs. 20,000
CYS (Current Year Sales- April 2005- March 2006) = Rs. 100,000
Then

Gro
wth

= 100,000 20,000 x 100


=
20,000

PCPM:

400%

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

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

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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
Sales persons 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
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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 accounts 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.
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Strategies:
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

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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
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
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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
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

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Doctors 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 - DCR

ii.

Master Call List (MCL) or Important Call List (ICL)- Doctors, institution,
chemist, and stockist

iii.

Expense Statements

iv.

Standard tour program, Tour Report and fare chart

v.

Monthly sales Analysis report

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

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Daily Call Report


SE Name :____________________________
Date:__________ HQ________
Sr.No.

Name of Doctor

MCL No. Degree


Morning

Speciality

Last Visit

1
2
3
4
5
6
Evening (After 4 PM)
1
2
3
4
5
6
Work With
Name __________________________
Signature________________________
Remark of Superior
Any Special Observation
Signature of SE _________________

2) Monthly Report
Collection of data like
i.

Total sales generated for that month

ii.

Any discount offer to doctor

iii.

No. of doctor met with specialty


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iv.

Call average

v.

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 competitors

viii.

All this above data should be filled and posted to HO on or before 10th of every
month
Monthly

Report

Month________________ 2004
SE Name :____________________________
Date:_____________

Day

No. Of Doctors Met


Morning
Evening

HQ_____________

Promotinal Material
PS
LBL
Gifts

Discount
Offer

Total
Sales

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Total
Average
Any Special Observation

Signature of SE _________________

3) Tour Report
This is an important tool for planning
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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

i.

MCL / ICL code

ii.

Name

iii.

HQ

iv.

Qualification

v.

Specialty

vi.

Full Address

Master Call List

ii.

Name SE:____________________________

MCL No.
1
2
3
4
5
6
7
8
9
10

Doctor Name

Degree Speciality

i.

Address and Email

Telephone
Nos. (Clinic
and Residence
along with
mobile no.)
MCL has to be
updated and
submitted to
HO after every
6 months.

Date:_______

Tel
Clinic
Res.

HQ_____________

Mobile

DOB

5) Expense Statement
Give clear details of expenses day wise, HQ Wise
For each claim, supporting is a must
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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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