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The Pharmaceutical Sales Force Outlook: Structures And Strategies To Maximize ROI And Boost Product Uptake Product Image

The Pharmaceutical Sales Force Outlook: Structures And Strategies To Maximize ROI And Boost Product Uptake

  • Published: June 2003
  • 145 pages
  • Scripp Business Insights

The management report, 'The Pharmaceutical Sales Force Outlook: Structures and strategies to maximize ROI and boost product uptake’ provides a detailed, timely examination of sales force structures and the factors that impact sales force return on investment (ROI). The report is based on interviews conducted with sales executives in the US, Japan, France, Germany, Italy, Spain and the UK uncovering sales force structures and strategies to maximize sales force ROI. Analysis of trends in sales force size, structure and use of technology for companies of different sizes and in different countries are provided to support future strategic planning. The report examines the factors that affect sales force ROI, presents models for assessing both field force productivity and ROI and recommends how pharmaceutical companies can maximize ROI through effective sales force management. This report also provides a framework to analyze different ways in which companies can leverage corporate sales and marketing expertise to support product launches. Use the latest analysis in this report to define the ultimate sales force strategy that will deliver the best results and give you the competitive edge.

<P>Table of Contents</P>
<P>The Pharmaceutical Sales Force Outlook Structures and strategies to maximize ROI and boost product uptake</P>
<P>Executive Summary 10</P>
<P>Report outline 10</P>
<P>Understanding sales force structures and strategies 11
Does sales force expansion ensure improvements in productivity? 11
How can sales forces optimize physician targeting? 13
Is there an optimal sales force structure? 14
Is eDetailing the future? 16
Leveraging sales and marketing capabilities to optimize product uptake 17</P>
<P>Chapter 1 The need to optimize sales force efficiency 20
Introduction 21</P>
<P>Pressures to maximize the efficiency of pharmaceutical sales and marketing 21</P>
<P>Healthcare cost-containment 22
Growth of the generics industry 23
Increasing R&D costs 24
M&A 25</P>
<P>Costs of sales and marketing 26</P>
<P>Sales and marketing spend of pharmaceutical companies 26
Physician detailing 27
- Sales force size 28
- Product growth prospects 28
- Rep training 29
- Level of technology 29</P>
<P>Optimizing sales force ROI—the key to success 29
Physician detailing: declining ROI 29
Optimizing ROI through effective sales force structure and strategy 33
- Sales force structure 34
- Sales force targeting 34
Measuring sales force ROI 36
- Product sales data 36
- Internal IT data 36
- Reps’ targets 37
- Qualitative assessment 38
- Best practice in measuring sales force ROI 38
Report methodology 39</P>
<P>
Chapter 2 Analysis of sales force structures in key markets 42</P>
<P>Introduction 42</P>
<P>US sales force structures 43</P>
<P>Key findings 43
General trends 44
Sales force size 44
Sales force structure 46
Technology uptake 47</P>
<P>Japanese sales force structures 48</P>
<P>Key findings 48
General trends 49
Sales force size 50
Sales force structure 51
Technology uptake 53</P>
<P>French sales force structures 54</P>
<P>Key findings 54
General trends 55
Sales force size 55
Sales force structure 56
Technology uptake 57</P>
<P>German sales force structures 58</P>
<P>Key findings 58
General trends 59
Sales force size 59
Sales force structure 61
Technology uptake 62</P>
<P>Italian sales force structures 62</P>
<P>Key findings 62
General trends 63
Sales force size 63
Sales force structure 64
Technology uptake 65</P>
<P>Spanish sales force structures 66</P>
<P>Key findings 66
General trends 67
Sales force size 67
Sales force structure 69
Technology uptake 70</P>
<P>UK sales force structures 70</P>
<P>Key findings 70
General trends 71
Sales force size 72
Sales force structure 73
Technology uptake 74</P>
<P>Chapter 3 Maximizing sales force return on investment 76</P>
<P>Introduction 76</P>
<P>Key findings 76</P>
<P>Optimizing sales force ROI 77</P>
<P>Model for measuring sales force ROI 81
Measuring field force productivity 81
Model for measuring ROI 83</P>
<P>Optimizing ROI in sales force size 85</P>
<P>Trends in sales force size 85
Implications of sales force size for ROI 88
- Sales force characteristics 88
- Rep type 89
- Market competition 89
Recommendations for optimizing sales force size 91</P>
<P>Optimizing ROI in sales force structure 92</P>
<P>Trends in sales force structure 93
Structure by target audience 94
- Benefits and future issues 94
- Determining the target/universe ratio 95
- Finding the ideal target/universe ratio 96
- Finding new audiences 97
Structure by therapy area 98
Structure by region 99
Recommendations for optimizing sales force structure 100</P>
<P>Optimizing ROI through use of technology 101</P>
<P>Trends in use of technology in different national markets 101
Implications of use of technologies for ROI 102
- Increasing field force efficiency through new technology 103
- Increasing the effectiveness of detailing with new technologies 104
- Increasing field force communication: Knoll 105
Trends in eDetailing 105
Implications of eDetailing for ROI 107
- Physician prescribing behaviour 108
- Market position of drug 110
- National market 112
- Future drivers of eDetailing 112
Recommendations for optimizing use of technologies 113</P>
<P>Optimizing ROI through use of external sales forces 114</P>
<P>Optimizing ROI through the use of CSOs 115
- Advantages of using CSOs 115
- Barriers to using CSOs 116
- Case study: Using a CSO for a more targeted approach – Solvay 117
- Implications for the ROI 118
- When to use CSOs 119</P>
<P>Optimizing ROI through use of co-promotion and co-marketing 121</P>
<P>- Co-promotion: offering the best ROI 121
- Case study: Maximizing audience coverage through co-promotion – Ditropan XL 123
- Co-marketing: suited in specific circumstances 124
- Recommendations for optimizing the use of co-promotion versus comarketing 125</P>
<P>
Chapter 4 Leveraging sales and marketing capabilities to optimize product uptake 128</P>
<P>Introduction 128</P>
<P>Key findings 128</P>
<P>Sales and marketing capabilities: strategic outlook 129</P>
<P>Role of sales and marketing capabilities in product launch 129
- Assessing the capabilities: therapeutic and geographic presence, sales and marketing spend 130
- In need of external expertise: choosing the best licensing option 131
Analytical framework for analyzing successful company sales and marketing strategy design 132
- The overall role of sales and marketing capabilities in different disease market maturity stages 133
- The specific role of sales and marketing attributes in different disease market maturity stages 134</P>
<P>Recommendations for optimal leverage of corporate sales and marketing capabilities 136</P>
<P>Immature markets 136
Lack of relevant therapeutic or geographic presence 136
Mature markets 137</P>
<P>Case studies: The impact of sales and marketing investment on product success 138</P>
<P>Case study: Exelon – strong promotion in an immature market with existing gold standard therapy 139
- Exelon’s position in the Alzheimer’s disease market 140
- Strong marketing investment by Novartis to off-set later entry and limited differentiation from gold standard 141
Case study: Celexa – innovative marketing strategy yielding success against prominent competition 142
- Celexa’s clinical benefits 142
- A strong sales and marketing strategy 143</P>
<P>References 147</P>
<P>
List of Figures</P>
<P>Figure 1.1: Sales force growth of profiled companies, 1999–2001 and forecast to 2005 13
Figure 1.2: Four negative forces on pharmaceutical revenues 22
Figure 1.3: R&D expenditure as a proportion of sales, 1980–2002 25
Figure 1.4: Estimated breakdown of the global sales and marketing spend of the top 50 pharmaceutical companies 26
Figure 1.5: Factors impacting the ROI of physician detailing 32
Figure 2.6: Comparison of sales force size with US ethical revenues 45
Figure 2.7: Sales force size and growth in the US, 1999–2001 46
Figure 2.8: Simplified model of generic US sales force structure 47
Figure 2.9: Comparison between size of sales force and ethical revenues from the Japanese market 50
Figure 2.10: Sales force size and growth in Japan, 1999–2001 51
Figure 2.11: Simplified model of generic Japanese sales force structure 52
Figure 2.12: Sales force size and growth in France, 1999-2001 56
Figure 2.13: Simplified model of a generic French sales force structure 57
Figure 2.14: Sales force size and growth in Germany, 1999–2001 60
Figure 2.15: Simplified model of a generic German sales force structure 61
Figure 2.16: Sales force size and growth in Italy, 1999–2001 64
Figure 2.17: Simplified model of generic Italian sales force structure 65
Figure 2.18: Sales force size and growth in Spain, 1999–2001 68
Figure 2.19: Model of a generic Spanish sales force structure 69
Figure 2.20: Size and growth of selected sales forces in the UK, 1999–2001 72
Figure 2.21: Simplified model of generic UK sales force structure 73
Figure 3.22: Key influences on sales force ROI 78
Figure 3.23: Relative ROI for sales force management strategies 79
Figure 3.24: Model for assessing field force productivity 82
Figure 3.25: Model for assessing sales force ROI 84
Figure 3.26: Trends in sales force growth, 1999–2005 87
Figure 3.27: Relationship between field force productivity and level of market competition 90
Figure 3.28: The effect of the target/universe (T/U) ratio on sales force ROI 96
Figure 3.29: Summarised use of technologies by profiled sales forces 101
Figure 3.30: Use of eDetailing by profiled companies 106
Figure 3.31: Relationship between physician prescribing behaviour and ROI of eDetailing 109
Figure 3.32: Effects of CSO outsourcing on sales force ROI 119
Figure 4.33: Relative contribution of clinical, market, corporate sales and marketing capabilities to first year market share at different disease market maturity stages 133
Figure 4.34: Relative importance of sales and marketing attributes in explaining first year market share in different disease market maturity stages 135
Figure 4.35: Decision tree for optimally leveraging corporate sales and marketing capabilities 138
Figure 4.36: Global sales of leading SSRIs, 1998–2002 145</P>
<P>List of Tables</P>
<P>Table 1.1: Total pharmaceutical R&D expenditure, 1980–2002 24
Table 2.1: Summarised use of technologies by US sales reps in companies studied 48
Table 2.2: Summarised use of technologies by Japanese sales reps in companies studied 53
Table 2.3: Summarised use of technologies by French sales reps in companies studied 58
Table 2.4: Summarised use of technologies by German sales reps in companies studied 62
Table 2.5: Summarised use of technologies by Italian sales reps in companies studied 66
Table 2.6: Summarised use of technologies by sales reps in Spanish companies studied 70
Table 2.7: Summarised use of technologies by UK sales reps in companies studied 74
Table 4.1: Ranked importance of sales and marketing attributes per disease market maturity stage 134
Table 4.2: Global sales of leading SSRIs, 1998–2002 145</P>

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