1. What is the role of a medical representative (MR) in pharmaceutical selling?

Discuss the

evolution of pharmaceutical selling in the last decade.

The responsibilities of MRs can be enlisted as follows:

Achieving sales targets in the designated territories

To ensure product availability at pharmacies
Ensure sufficient inventories at wholesalers
Report competitive activities to head office
Maintain good relationships with customers and implement appropriate customer education

Traditionally, MRs have visited doctors, detailed their medicines and ensured prescription generation;
doctors, for their part, were readily accessible to MRs in their clinics. One of the major challenge faced
by pharmaceutical industry is the reduction of doctorMR face time.

The traditional doctorMR selling approach still continues to drive sales in most of the pharmaceutical
companies, but many doctorMR interactions have become simply sample sign-offs with no product-
detailing involved, which has led to reduced effectiveness of the sales calls.

2. Critically evaluate the performance of Parkin Laboratories high-performing MRs, average

performing MRs and low-performing MRs. How can the company improve the productivity of
its MRs?

High performers have better coverage of A class doctors compared with doctors in other categories,
whereas low performers have low coverage of A class doctors and high coverage of C class doctors.
This variation in the coverage could be a key reason for their low performance.

It is also evident from the case that high-performing MRs have better time management skills, compared
with average- and low-performing MRs. A look at the four main activities doctor calls, chemist calls,
travel and waiting time, reveals that high-performing MRs spend more time in doctor and chemist calls
and less time waiting and travelling, as compared with the average and low-performing MRs.

All MRs follow different practices with regard to the number of products detailed to different doctors,
compared with the company norm of detailing no more than three products to a doctor. Persuading the
doctor to prescribe a companys product is the key to successful pharmaceutical selling. Pharmaceutical
companies try to influence doctors in favour of their products by offering various promotional inputs,
such as samples, gifts, literature and sponsorships.

3. What is sales force effectiveness (SFE)? What are the major drivers of SFE? How can SFE help
Parkin to increase the efficiency and effectiveness of its sales force?
Sales force effectiveness can help a company to identify, prioritize and close gaps in sales strategy and
the execution capability of a sales force. It increases the competitiveness of the sales force to capture
potential growth opportunities.

The following reasons are responsible for the implementation of SFE:

Poor sales results, low margins and loss of market share

Decreasing motivation of the sales team
Insufficient skills of the sales force
High turnover rate of the sales team
Inefficiency in the ability to compete effectively

The sales force can be affected by decisions made within an organization and forces that work both
within and outside an organization.

Factors such as an MRs customer networking and customer-socialization skills are also key to sales
successes.

SFE implementation could bring positive results for Parkin Laboratories, which is struggling because
of low sales, increased expenses and reduced operating margins.

SFE can provide the following advantages for Parkin:

Greater number of calls with physicians

Longer duration of calls with potential clients
More high-performing sales representatives
Better strategic competencies and sales skills of the sales force
Increased efficiency and effectiveness of the field force
Increase in customers satisfaction and loyalty

4. What are Parkins major SFE implementation issues? How can companies implement SFE
more effectively?

The major SFE implementation issues are as follows:

Poor understanding of the business requirements and technical constraints.

The SFE implementation may require some changes in the way salespeople work, and they may
be reluctant to change.
The time allocated for implementation and training may be insufficient.
Parkins middle management may also lack commitment and the managers may not be able to
implement an effective measurement and monitoring process.
The organizational culture may prove to be a barrier, since there will be a resistance to change
among the organisation stakeholders.
Companies can implement SFE in a more efficiently in the following manner:

The right management alignment and sales engagement are critical for the profit realization
process of SFE implementation.
There should be a focus on improving the interface between the MR and the doctor. Many
SFE tools are available to measure in-call effectiveness including doctor validations, detail
follow-ups.
SFE tools are also available for MRs training needs analysis and to facilitate coaching,
tracking and following up the in-call effectiveness according to pre-determined objectives
of SFE. The feedback from these tools about sales force effectiveness can be calibrated and
presented regularly, consistently and rapidly for enhanced decision-making.
This also helps management to formulate and roll out changes in sales strategies proactively
and more effectively.
The company must promote a coaching culture and empower and equip the sales teams,
such as the first-line district sales managers (DSMs), to be able to coach and assess their
teams effectively. DSMs need to accurately observe and assess the selling skills and
behaviours of their sales team during sales calls to create sustained benefits from sales force
effectiveness.
 Role Play
Characters: Sales Rep 1, Doctor
Scene/Situation: The sales representative has taken an appointment with the doctor to explain to him
about the offerings of Parkin Laboratories and to get him to prescribe Parkins medicines. The
conversation is taking place inside the doctors clinic
Sales Rep: Good Evening, Doctor. Thanks for your time.
Doctor: Good Evening gentleman. How can I help you?
---------------------------------------------------*Situation Question*----------------------------------------------
Sales Rep: So, Doctor, I understand that you meet a lot of patients every day. I also know that you
specialize in Oncology and Chemical Pathology. Given the variety of ailments that you treat, do you
think you have a limited range of medicines that you can prescribe to your patients?
Doctor: No, its not like that. Whenever I diagnose a patient with an issue, I suggest to him the medicine
which treats the ailment. I prescribe the medicines that are usually on the top of my mind. I also keep
in mind the availability of the medicine and the affordability of the medicine (to the patient) while
prescribing it
Sales Rep: So, you are saying that a medicine that does the job and is available and affordable is
something that you will prescribe?
Doctor: Yes. You are right
-------------------------------------------------*Problem Question*-------------------------------------------------
Sales Rep: Continuing on the same lines, have you recently faced any issues while prescribing any
medicine? Have patients come back to you for an alternate medicine, citing the lack of availability or
asking for a cheaper or a more effective medicine?
Doctor: There were no issues until recently. But since the Govt of India has passed the Drug Price
Control Order, the availability of medicines has become an issue. Most of the medicines have become
affordable but availability is the issue. Since the medicine industry is currently running on very thin
margins, I really doubt if the pharmaceutical companies will be willing to put in extra money to create
innovative and path-breaking medicinal solutions. At the best, we are more likely to see cheaper rip-
offs of costly medicines from the Western market in the near future
Sales Rep: That is an excellent analysis of the current situation, Doctor. Every word of what you have
said is true. If pharmaceutical companies start producing cheap rip-offs, then the curing ability of the
medicine might get affected. So, even the best medicines that we have today might stop showing effects
on the patients. Due to thin margins, retailers will also stock medicines that move faster and will be
reluctant to carry all the lines from a single manufacturer unless the manufacturer is ready to provide
him some kind of support
----------------------------------------------------*Implication*------------------------------------------------------
Sales Rep: Taking this point forward, what this means is that in the coming days, there will be shortage
of medicines and their power might be affected. These observations will be reported to you by your
patients in the near future. Your patients might come back to you to suggest a better medicine or a
medicine that is available nearby. If they feel that you are not able to provide them what they need, they
might look to change their doctor. This might result in a loss of your clientele and your reputation in
the market can also be tarnished. Dont you agree with my observations?
Doctor: Although there is some exaggeration to what you have said, I would concur with you to say
that the future of medicine in India is dependent a lot on the steps that pharmaceutical companies take
in the near future. These actions will most likely affect us, doctors, and we have to conscious choices
about the medicines we prescribe
Sale Rep: At this point I would like to say that though the future is bleak, Parkin Laboratories has not
lost its focus and is committed to serving both medical community and the general public with utmost
honesty and integrity
Doctor: Thats interesting. What have you people planned?
----------------------------------------------------------*Need*-------------------------------------------------------
Sales Rep: First of all, we have looked to address the immediate issues: product availability and the
effectiveness of the medicines. The top management has decided not to give up on product innovation
and to continue to the push towards finding path-breaking medicines. In order to ensure the availability
of medicines, we are incentivizing the retailers to carry all our lines by providing enough marketing
support and promotion.
Sales Rep: Parkin Laboratories has been one of the fastest growing companies in the pharmaceutical
sector in the recent years. I am sure the steps we are taking will further boost our market share and
enhance our reputation. We would like you to be a partner in this growth story. Thousands of doctors
have already joined the revolution and you have an opportunity right now to be a part of it.
Doctor: Thats really exciting to hear
Sales Rep: I would like you to go through the range of medicines that Parkin is offering. There is a
variety of medicines that we offer. These are effective and are always in stock. These are a good fix to
the situation that we are in right now
Doctor: Yes. I know about most of these medicines. I have been prescribing some of these to my
patients as well. Can I keep this brochure with me? I would want to prescribe more of these to my
patients in the coming days
Sales Rep: Sure Doctor. Thanks for your time
Doctor: Thanks. Bye
 Role Play
Characters: Sales Rep 1, Chemist/ Medical shop owner
Scene/Situation: The sales representative has gone to medical store to talk with retailer after taking
appointment with to meet at that time and talk with him for some time. so, he can explain to him about
the offerings of Parkin Laboratories and to get him to about their margins and marketing support that
can be provided to him.
Sales Rep: Hello, Good Afternoon
Chemist: Hi, Good Afternoon
-------------------------------------------------*Problem Question*-------------------------------------------------
Sales Rep: How is your business going? Is there any change after new amendment act came?
Chemist: There has been reduction in profits as new price has brought prices down so many companies
have reduced or lowered their previous margins that are offered to us, so there has been huge drop in
my earnings
Sales Rep: Is this same situation for every company products and Did all companies have reduced their
margins? Or some have not reduced margins and still gave you same margins as old times?
Chemist: yes, almost every company has offered less margins now and they have also removed
incentives or marketing support they would be giving beforehand.
But there are some products, or 1 or 2 products of some companies still offered same margin as before
but those products are low moving products and those are not much prescribed by doctors more often
so there is not much earning I would get even if the margins have been reduced
---------------------------------------------------*Situation Question*----------------------------------------------
Sales Rep: So, you are currently stocking brands or products which are selling more even less margins
are offered
Chemist: Yes, I now is more interested in selling more products that are being bought more by patients
than having all products like before times
Sales Rep: So, if in case if a doctor near your medical store has started or interested in prescribing a
other companys product that you are not selling, would you be interested in having that product?
Chemist: Definitely, why would I not prefer to stock product if doctors have started prescribing these
new products, I would not like to lose customer to other medical stores
----------------------------------------------------*Implication*------------------------------------------------------
Sales Rep: If a doctor prescribes a medicine that is less frequent or only chooses to prescribe in very
rare conditions would you still like to stock those products if margins are very low
Chemist: Yes, even it is less prescribed or very rare for that doctor to recommend that drug I would
like to have that drug in my store even I earn less
Sales Rep: Can you say why would like to store products that are giving less margin and still you would
like to store those medicines
Chemist: Patients or customers would like to buy all the medicines from a single store and in many
cases, there would situations if I said I dont have this one except but has remaining all others medicines
I would even give them a better price they would still say they would rather try them at next store or
other place and stop buying from me. So, I would stock these less margin and less prescribed drugs just
not to lose those customers.
----------------------------------------------------------*Need*-------------------------------------------------------
Sales Rep: So you know we are going you to give you these margins and also support you with
marketing and promotions would you be willing to take these products and also I have just made sure
almost most doctors in near by vicinity are willing to prescribe these products
Chemist: yes, I would be interested in keeping these new products and also continue with old products
as usual but I would also need assurance these new products are going to be taken back if they are not
being sold as you say
Sales Rep: Sure sir, I would ensure that but if you accept at this margin rate for these products we
would be ready to help you and ensure you have exclusivity to this medicine in this area
Chemist: Then I would be definitely be willing to have these products in my store
Sales Rep: Thank you sir I, I will put order for these and you will get these products delivered by this
data from our distributor
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