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Sales Representative In New Wave Marketing 2009


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Sales Representative In New Wave Marketing 2009

  1. 1. New Concept of Sales Representative in New Wave Marketing 2009 
  2. 3. Background <ul><li>“ US pharmaceutical companies have for decades relied on the “pinball wizard” sales model: sales representatives bounce from one doctors office to another in hopes of catching a few moments with physicians and influencing which drugs they prescribe.” </li></ul>“ In recent years, the changing dynamics of the business have prompted a massive expansion of sales forces. The resulting system is costly, inefficient, and rife with dissatisfaction.” - MCKINSEY “ Industry average for field force budgets is nearly $875 million with top spending organizations committing more than $1billion” – Cutting Edge
  3. 4. Background <ul><li>Business Challenge </li></ul><ul><ul><li>Physicians spending less time with sales representatives – about 38% of physicians have consciously decided to make less time for pharmaceutical representatives than they did in 2001. </li></ul></ul><ul><ul><li>Research conducted in 2001 indicates physicians were allocating 10% of their day to seeing pharmaceutical representatives assuming they saw them at all. </li></ul></ul><ul><ul><li>Because of increasing complexity of marketplace dynamics, sales representatives are unable to effectively adjust their sales activities, and are increasingly experiencing poorer sales results. </li></ul></ul><ul><ul><li>Despite these claims, pharmaceutical companies continue to use outdated reach and frequency models based on sales call goals from the mid 1990’s to influence their sizing models. </li></ul></ul>
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  7. 10. Selling is only the tip of the iceberg “ There will always be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available.
  8. 11. Selling <ul><li>Selling is not about getting people to buy something they don’t want. </li></ul><ul><li>Selling is about helping people meet their needs . </li></ul><ul><li>Remember: </li></ul>As a sales representative, your goal is to help your customers to achieve their goals. A selling philosophy: You can achieve most of the things in life that you want if you help other people achieve what they want.
  9. 12. 3-
  10. 13. Frustration. Stress. Exhaustion. Marketing Failure. No One Wants…
  11. 14. Types of sales representatives <ul><li>Order takers </li></ul><ul><ul><li>Routine completion of sales to targeted customers. </li></ul></ul><ul><ul><li>Important for maintaining customers. </li></ul></ul><ul><li>Order getters </li></ul><ul><ul><li>Establishing relationships with new customers. </li></ul></ul><ul><ul><li>Important for growing a business. </li></ul></ul>
  12. 15. Types of sales representatives (continued) <ul><li>Technical specialists </li></ul><ul><ul><li>Doesn’t close - explains technical details, shows how products may interface with other products. </li></ul></ul><ul><li>Missionary sales </li></ul><ul><ul><li>Also known as merchandisers or detailers. (ex: a pharmaceutical sales representative.) </li></ul></ul><ul><ul><li>Doesn’t close - they try to stimulate demand, show ways to increase product sales. Gateway to other sales positions. </li></ul></ul>
  13. 16. New Challenges in the slowdown markets ? <ul><li>Delighting Customers. </li></ul><ul><li>Reducing Cycle Times. </li></ul><ul><li>Keeping up with Technology Advances. </li></ul><ul><li>Retaining People. </li></ul><ul><li>Reducing Costs. </li></ul><ul><li>Responding More Quickly. </li></ul><ul><li>Structuring for Flexibility. </li></ul><ul><li>Growing Overseas Markets. </li></ul>3-
  15. 18. Overview of Six Sigma <ul><li>It is a Philosophy </li></ul><ul><ul><li>Anything less than ideal is an opportunity for improvement </li></ul></ul><ul><ul><li>Defects costs money </li></ul></ul><ul><ul><li>Understanding processes and improving them is the most efficient way to achieve lasting results </li></ul></ul><ul><li>It is a Process </li></ul><ul><ul><li>To achieve this level of performance you need to: </li></ul></ul><ul><ul><li>D efine, M easure, A nalyse, I mprove and C ontrol </li></ul></ul><ul><li>It is Statistics </li></ul><ul><ul><li>6 Sigma processes will produce less than 3.4 defects per million opportunities </li></ul></ul>
  16. 19. Components Two components of Six Sigma 1. Process Power 2. People Power
  17. 20. Components Two components of Six Sigma 1. Process Power 2. People Power
  18. 21. Process Power
  19. 22. P-D-C-A P D C A Plan Do Check Act Act on what was learned Check the results Plan the change Implement the change on a small scale.
  20. 23. Approach Practical Problem Statistical Problem Statistical Solution Practical Solution
  21. 24. DMAIC - simplified <ul><li>D efine </li></ul><ul><ul><li>What is important? </li></ul></ul><ul><li>M easure </li></ul><ul><ul><li>How are we doing? </li></ul></ul><ul><li>A nalyze </li></ul><ul><ul><li>What is wrong? </li></ul></ul><ul><li>I mprove </li></ul><ul><ul><li>Fix what’s wrong </li></ul></ul><ul><li>C ontrol </li></ul><ul><ul><li>Ensure gains are maintained to guarantee performance </li></ul></ul>
  22. 25. DMAIC approach D Define M Measure A Analyze I Improve C Control Identify and state the practical problem Validate the practical problem by collecting data Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution Confirm and test the statistical solution Convert the statistical solution to a practical solution
  23. 26. Define D Define M Measure A Analyze I Improve C Control VoC - Who wants the project and why ? The scope of project / improvement (SMART Objective) Key team members / resources for the project Critical milestones and stakeholder review Budget allocation
  24. 27. Measure  Prepare data collection plan Collect data - Is tool used to measure the output variable flawed ? <ul><li>- How many data points do you need to collect ? </li></ul><ul><li>How many days do you need to collect data for ? </li></ul><ul><li>What is the sampling strategy ? </li></ul><ul><li>Who will collect data and how will data get stored ? </li></ul><ul><li>What could the potential drivers of variation be ? </li></ul>D Define M Measure A Analyze I Improve C Control
  25. 28. Analyze How well or poorly processes are working compared with - Best possible (Benchmarking) - Competitor’s Shows you maximum possible result Don’t focus on symptoms, find the root cause D Define M Measure A Analyze I Improve C Control
  26. 29. Improve <ul><li>Present recommendations to process owner. </li></ul><ul><li>Pilot run </li></ul><ul><li>Formulate Pilot run. </li></ul><ul><li>Test improved process (run pilot). </li></ul><ul><li>Analyze pilot and results. </li></ul><ul><li>Develop implementation plan. </li></ul><ul><li>Prepare final presentation. </li></ul><ul><li>Present final recommendation to Management Team. </li></ul>D Define M Measure A Analyze I Improve C Control
  27. 30. Control Don’t be too hasty to declare victory. How will you maintain to gains made? <ul><li>- Change policy & procedures </li></ul><ul><li>- Change drawings </li></ul><ul><li>Change planning </li></ul><ul><li>Revise budget </li></ul><ul><li>Training </li></ul>D Define M Measure A Analyze I Improve C Control
  28. 31. Omitting a step in DMAIC? Step Consequences if the step is omitted 1. Define 2. Measure 3. Analyze 4. Improve 5. Control
  29. 32. Tools for DMAIC Define What is wrong? Measure Data & Process capability Analyze When and where are the defects Improve How to get to six sigma Control Display key measures <ul><li>Benchmark </li></ul><ul><li>Baseline </li></ul><ul><li>Contract / Charter </li></ul><ul><li>Kano Model </li></ul><ul><li>Voice of the </li></ul><ul><li>Customer </li></ul><ul><li>Quality Function </li></ul><ul><li>Deployment </li></ul><ul><li>Process Flow Map </li></ul><ul><li>Project </li></ul><ul><li>Management </li></ul><ul><li>“ Management by </li></ul><ul><li>Fact” – 4 What’s </li></ul><ul><li>7 Basic Tools </li></ul><ul><li>Defect Metrics </li></ul><ul><li>Data Collection, </li></ul><ul><li>Forms, Plan, </li></ul><ul><li>Logistics </li></ul><ul><li>Sampling </li></ul><ul><li>Techniques </li></ul><ul><li>Cause & Effect </li></ul><ul><li>Diagrams </li></ul><ul><li>Failure Models & </li></ul><ul><li>Effect Analysis </li></ul><ul><li>Decision & Risk </li></ul><ul><li>Analysis </li></ul><ul><li>Statistical Inference </li></ul><ul><li>Control Charts </li></ul><ul><li>Capability </li></ul><ul><li>Reliability Analysis </li></ul><ul><li>Root Cause Analysis </li></ul><ul><li>5 Why’s </li></ul><ul><li>Systems Thinking </li></ul><ul><li>Design of </li></ul><ul><li>Experiments </li></ul><ul><li>Modelling </li></ul><ul><li>Tolerancing </li></ul><ul><li>Robust Design </li></ul><ul><li>Process Map </li></ul><ul><li>Statistical Controls </li></ul><ul><li>Control Charts </li></ul><ul><li>Time Series </li></ul><ul><li>Methods </li></ul><ul><li>Non Statistical </li></ul><ul><li>Controls </li></ul><ul><li>Procedure </li></ul><ul><li>adherence </li></ul><ul><li>Performance </li></ul><ul><li>Mgmt </li></ul><ul><li>Preventive activities </li></ul><ul><li>Poke yoke </li></ul>
  30. 33. Components Two components of Six Sigma 1. Process Power 2. People Power Tell me, I forget. Show me , I remember. Involve me, I understand.
  31. 34. 6  Training Master Black Belt Black Belts Green Belts Team Members / Yellow Belts Champions   Leader of teams implementing the six sigma methodology on projects. Delivers successful focused projects using the six sigma methodology and tools. Participates on and supports the project teams, typically in the context of his or her existing responsibilities.
  32. 35. To be continued after COMERCIAL BREAK..........
  33. 36. Market Opportunities <ul><li>“ The same study that showed 38% of physicians that have made less time for sales representatives also reveals that 57% of physicians would make more time for sales reps if they provided more value-added services.” </li></ul>
  34. 37. Market Opportunities “ Market research shows the reasons why physicians choose one drug over another can be broken down across the factors that drive their prescribing practices” “ There is a distinct movement now using more market intelligence that is segmented in new ways to influence the prescribing practices of physicians” “ This will create new opportunities for companies that take an integrated, collaborative approach to pharmaceutical sales and marketing” Dosing Safety Side Effects Reimbursement Efficacy Convenience
  35. 38. Market Opportunities <ul><li>“ In the past, companies focused on geographic segmentation to sell their products. More recently, account level segmentation with more emphasis on clinical knowledge by the sales representative has shown some success…” </li></ul>“ However, market dynamics and the complexity of clinical differences between specialized medicines is driving the need for collaborative interactions between sales professionals and the physician in ways never seen before.” “ Companies that are selling in to this market must adopt an approach that optimizes the use of market intelligence with that of new channels physicians are using to stay abreast of advances in treatment practices.” Dosing Safety Side Effects Reimbursement Efficacy Convenience
  36. 39. Changing Fundamental, Core Behaviours to Achieve Improved Business Results Cultural and Organisational Development High Performance Teams Stronger Customer Relationships Improving Sales Growth Leadership Development Management Effectiveness Personal Development Executive Level Senior Managers Middle Managers Sales People
  37. 40. How Salespeople Spend an Average 46-Hour Work Week
  38. 41. New Concept of Sales Representative in New Wave Marketing 2009 <ul><li>Traditional Salesperson </li></ul><ul><li>Professional Salesperson </li></ul><ul><li>Golden Rule Salesperson </li></ul>Guided by self-interests Takes care of customers Others interests most important
  39. 42. Cont’
  41. 44. 3-
  43. 46. Identifying and qualifying prospects <ul><li>Identify prospects who have… </li></ul><ul><ul><li>the need to buy </li></ul></ul><ul><ul><li>the financial ability to buy </li></ul></ul><ul><ul><li>the authority to buy </li></ul></ul>
  44. 47. Identifying and qualifying prospects <ul><li>Finding these prospects? </li></ul><ul><ul><ul><li>Trade lists </li></ul></ul></ul><ul><ul><ul><li>Referrals </li></ul></ul></ul><ul><ul><ul><li>Inquiries </li></ul></ul></ul><ul><ul><ul><li>Internet visits </li></ul></ul></ul><ul><ul><ul><li>Government publications </li></ul></ul></ul><ul><ul><ul><li>Coupons returned </li></ul></ul></ul><ul><ul><ul><li>Previous customers </li></ul></ul></ul><ul><ul><ul><li>Internet smart agents </li></ul></ul></ul>
  45. 48. The approach <ul><li>Initial contact </li></ul><ul><li>Establish rapport </li></ul><ul><li>Make a good impression </li></ul><ul><li>Problem solver for prospective buyer </li></ul><ul><li>Collect information </li></ul>
  46. 49. Sales presentation <ul><li>Tell the product story </li></ul><ul><li>Attention, interest, desire, action </li></ul><ul><li>Use of appropriate sales aids (computers, videos, brochures) </li></ul><ul><li>Importance of verbal and non verbal communications </li></ul>
  47. 50. Handling objections <ul><li>Listen and learn first </li></ul><ul><li>Yes…but </li></ul><ul><li>Additional information </li></ul><ul><li>Counter arguments </li></ul><ul><li>Change product or service to overcome objection </li></ul>
  48. 51. Closing the sale <ul><li>Know when to close </li></ul><ul><li>Trial closing </li></ul><ul><li>Assumptive closing </li></ul><ul><li>Straightforward approach </li></ul><ul><li>Summative approach </li></ul><ul><li>Narrow the alternatives </li></ul>Give me the order now!! Okay,okay I will!!
  49. 52. Thanks, but no thanks!!
  50. 53. Follow up <ul><li>Make sure all promises have been kept and the customer is satisfied with the purchase </li></ul><ul><li>Resolve any problems encountered </li></ul>It’s working perfectly!!!
  51. 54. Success in Selling–What Does it Take? Love of Selling Is At Heart of Helping Others ( 7 S success)
  52. 55. The Customer is at the Center of the Sales System: ABC’s
  53. 56. The people capability model Continuous workforce innovation Coaching P ersonal competency development Organisational per formance alignment Organisational competency management T eam-based practices T eam building Mentoring Mana ged Optimizing P ar ticipatory culture Competency-based practices Career development Competency development W orkforce planning Knowledge and skills analysis Compensation T raining P er formance management Staffing Communication W ork environment Initial R epea ta b le Defined Continuously improve methods for developing personal and organisational competence Quantitatively manage organisational g row th in workforce capabilities and establish competency-based teams Identify primary competencies and align workforce activities with them Instill basic discipline into workforce activities
  54. 57. The Future of Salespeople: Skills Required <ul><li>Learning conceptual skills </li></ul><ul><ul><li>Example: planning </li></ul></ul><ul><li>Learning human skills </li></ul><ul><ul><li>Example: working with customers </li></ul></ul><ul><li>Learning technical skills </li></ul><ul><ul><li>Example: selling skills </li></ul></ul>
  55. 58. Selling is Both an Art and a Science <ul><li>Selling takes practice, just like golf or tennis </li></ul><ul><li>Selling is also a science because a growing body of knowledge and objective facts describe selling </li></ul>
  56. 61. Connect the Dots <ul><li>The following puzzle illustrates how you can be held back from breaking through. The challenge is to connect all nine dots with four straight lines, without lifting your pencil from the paper. Try it! </li></ul>
  57. 62. Go Beyond the Limits! <ul><ul><li>To reach your goals </li></ul></ul>3 . 4 . 2. Start Here 1.
  58. 63. Summary <ul><li>Personal selling is an old and honorable profession </li></ul><ul><li>Millions of people have chosen sales careers because of: </li></ul><ul><ul><li>Job availability </li></ul></ul><ul><ul><li>Personal freedom </li></ul></ul><ul><ul><li>The challenge </li></ul></ul><ul><ul><li>Opportunities for success </li></ul></ul><ul><ul><li>Non-financial rewards </li></ul></ul><ul><ul><li>Financial rewards </li></ul></ul>
  59. 64. Summary, cont… <ul><li>Success comes from: </li></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Applying knowledge </li></ul></ul><ul><ul><li>Developing skills </li></ul></ul><ul><ul><li>Working hard </li></ul></ul><ul><ul><li>Wanting to succeed </li></ul></ul><ul><ul><li>Maintaining a positive outlook </li></ul></ul><ul><ul><li>Effective time management </li></ul></ul><ul><ul><li>All to take care of the customer </li></ul></ul>
  60. 65. 3- THANK YOU