Pharma sales territory management


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Pharma Sales Territory Management

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Pharma sales territory management

  1. 1. 1Pharma Field Force ExcellencePharmaceutical Sales Territory ManagementMasum ChowdhuryBPharm, MBA (Marketing), PGDSCMManager & Lead Trainer, Strategic Brand Management, AsiaticTerritory management is a tool by which you can assist your company in theachievement of its broad objectives. Territory means the land area in which youoperate and which a Medical Promotion Officer is responsible for.Management means the activity of ensuring the performance of tasks in order toachieve defined objectives – planning, organizing, Leading & ControlTerritory Management & Planning is the process of determining what you want toaccomplish (the end result or outcome) and how you wish to achieve it, using themost effective and efficient ways. The success of the outcome is largely determinedby the planning.Planning involves the following steps:a. Setting objectivesb. Identifying resources andc. Devising strategiesTypes of Territory Planninga. Planning can be short term or long term.b. Planning can also be strategic or operational.Fig: Faridpur Depot Territory Structure
  2. 2. 2The aim of strategic planning (3-5 years) is to establish the long-term results desiredby your company. The strategic plan has to flow through to the functional parts of thecompany where it is converted into operational plans by the various organizations.Operational planning is more short term, providing day-to-day details of how thestrategic plan of our organization will be achieved.What is a sales territory?The total market for most Pharmaceutical Company is simply too large to bemanaged efficiently without a definite territorial structure.A Pharmaceutical sales territory comprises of a number of present and potentialcustomers (Doctors and Chemists) located within a given geographical area andassigned to a Medical Promotion Officer.Fig: Territory Structures of JessoreReasons for Establishing Pharmaceutical Sales Territoriesa. Achievement of companys sales and marketing objectivesb. Ensure better coverage - Territory assignments restrict salespeople to work withless profitable customers or prospects as well as the most desirable customersc. Reduced selling costs - Assigning responsibility to a single Medical PromotionOfficer ensures that there is no overlap in coverage; customers (Doctors andChemists) and prospects (New Customers) are called upon by only one salesperson(MPO)d. Improved customer service - Assigning responsibility to a singleMedical Promotion Officer helps to ensure that all customers and prospects receiveadequate servicinge. More accurate evaluation of performance - If territories are relatively equal withregard to workload and potential, then Medical Promotion Officer performance canbe compared on an equal basis; if territories are unequal in a known way, thenadjustments can be made in evaluation of unequal performance
  3. 3. 3What Elements Determine A Territory?a. Present and potential customers (Doctors and Chemists)b. Geography;c. Competitors activity;d. Number of Markete. Healthcare institutions.Some Guidelines for Designing Territoriesa. Territory should have sufficient potential - With insufficient potential, a salariedsalesperson will not be used effectivelyb. Territory should be of reasonable size - To reduce a MPOs travelling time.c. Adequate coverage - Is the salesperson able to service all customers (Doctorsand Chemists) and able to meet prospects (New Customers)?d. Minimum barriers - Try to set territories such that rivers, mountains etc. Set theborders of territories rather than run through the middle.Benefits of Good Territory Designa. Enhances customer coverage (Doctors and Chemists)b. Reduces travel time and selling costsc. Provide more equitable rewardsd. Aids evaluation of sales forcee. Increases sales for the organizationf. Increase moraleWhat Are the Elements of Territory Action Plans?Territory planning is usually long-term planning. It helps you maximize your time andensure you consistently build territory revenue by calling on a good mix of newprospects and existing customers.There are seven basic steps to preparing a territory action plan to effectively manageyour territory.
  4. 4. 4a. Analyze your customers - Classify them and keep the classification up-to-dateb. Define your objectives by customer (Doctors and Chemists) - Break down overallobjectives by customers (Doctors and Chemists) and decide how to allocate yourtime among them to reach these objectives.c. Allocate territory time - Good time management is a skilld. Plan your calls - What kind of information do you need to plan your calls?e. Schedule your calls - To ensure you make the best use of your time; you will needto schedule your calls.f. Plan your route - Effective routing is based upon two elements: scheduling andfrequencyg. Evaluate your plan -Evaluation of a territory plan means to determine howeffective it has beenBuilding Territory StrategiesThe Second half of your territory plan should includea clear strategy to accomplish three things:a. Maintain existing customers: First priority is tokeep what we already have.b. Grow existing customers: Getting morebusiness from customers already buying from youc. Obtain new customers from thecompetition: The most time-consuming strategybut potentially the most rewarding. Penetrating thesecustomers may take time, but these represent apotentially significant boost in revenue.Characteristics of Todays Customers (Doctors and Chemists)a. More sophisticationb. More price sensitivec. Short of timed. More aware of growing product paritye. High quality/service expectationsf. Decreasing supplier loyaltyg. Better educatedh. Easy access to information (internet, TV, Radio, Newspapers etc.)Territory Consists of1. Market list2. Average Sales/Month of competitors3. Healthcare Institution list4. Chemists List5. Doctors Lista. Qualified Doctors (MBBS above Degree)b. Non Qualified DoctorsGovt. SACMO/FWV/DMFPrivate LMAF6. Territory Sales Plan for first 6 Months