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Pharma selling and sales marketing
 
Distribution Channel
Company
C & F or CA
Super Stockiest
Stockiest
Doctors, Nursing,
Dispensary, Substokiest 2
 
Types of Pharma Selling
• Ethical selling
• Generic selling
• PCD : Propaganda cum dispensing
• Surgical selling
• Tender Selling
• Over the Counter (OTC)
3
 
Issues of Pharma sales
• Ethical selling
 – Promotion overload
 – Too many companies
• Doctors issues
 – Fixed day and time of meeting to MR
 – Fixed No. of MR
 – Visit regulated 1/3 months
 – Time of giving cards & time of actual calls
 – Fixed No. of company MR to meet
 – Waiting to MR
4
 
Role of Various field Staff
• Medical representative
 – Implementation of promotional strategy
 – Contact doctors , N/h , Co  – hospital
 – To give info about product
 – Convince doctors to give Rx
 – Make a network with retailers & chemist
 – Make a network with stockiest
 – Reporting
 – Generation of order ( Retailer  – POB  – Stockiest )
5
 
Questions asked to MR
• Primary sales
• Secondary sales
• Personal order booking ( POB )
• Call average
• Coverage
• Report calls
6
 
Role of other field staff
• Role of Area manager
• Role of state manager
• Role of Regional manager
• Role of zone manager
• Role of national manager
• Role of VP of Sales
7
 
Tool program
• Submitted on 25th of month
MR - TP
•  AM Approved MR  – TP
•  AM  – TP Submitted on 26th of month
 AM - TP
• RM approved AM -TP
• RM  – TP submitted on 27th of month
RM - TP
• ZSM approved RM  – TP
• ZSM  – TP submitted on 31st of month
ZSM  – TP
BASIC TOOL PROGRAM MADE ONLY ONCE IN YEAR 8
 
Reporting Channel
VP OF SALES
ZSM
RSM
 ASM
MR
9
 
Kind of Reports for sales force
• DCR : Daily call report
• Expenses Detail report
• TP : Tool program
• Weekly reporting
• Monthly reporting
• Basic tool program ( BTP )
• DWP : Daily work plan
10
 
Sale Administration Department
• Do compilation of all reports of sales
• Normally one person for each state
• Prepare summary report of
 – All India  – state wise  – unit wise  – value wise
sales report for product manager for his product
 – All India last three months sales of same brand
 – All average / coverage
 – Utilization of inputs
• Use of gifts, samples, skims, Bonanza
11
 
Sales Budgeting
• Marketing Department
 – Give guideline to sales department
 – Marketing Budget
• Gifts
• Samples
• Sponsorship
• Bonanza
• CME (Continuing medical education)
•  Advertisement
• Printing expenses
• Meeting Expenses
• Incentives
• Transportation
• Expiry and goods return
12
 
• Finance Department
 – Finance budget
• Factory department
 – Production budget
• Sales admin department
• Purchase department
• HR department
13
 
Credit Control
• Credit period
• Credit limit
• Mode of payment
• Stockiest profile
• PDC ( Post dated cheque)
• Cash Discount
• Special cases
• No PDC
14
 
Costing & Finance
• Different types of cost
 – R & D ( F & D )
 – Production cost
 – Inventory cost
 – Transportation cost
 – Marketing cost
 – Regulatory cost
 – T & D cost
 – PM cost
 – Overhead Cost
15
 
MRP Decision
• Competition pricing
• New marketing / Scientific gimmick
• Monopolistic MRP
• Kind of marketing company do
• % G C (Gross contribution)
16
 
Billing
• Billing cycle
 – From the time bill is raise to the payment
received
• Normally billing cycle is of 21 day
• Payment cycle is 60 days for 1st deal for
stockiest
17
 
Billing for C & F
• Transfer of stock
• Transfer challen
• F  – Form
 – taken from sales tax
department
• 0.5% sales tax has to pay
Billing for C & A
• Billing
• Bill is Made
• C  – Form
 – Outside state 2% central
sales tax (CST) + add 5 %
VAT
 – Within state only 5% VAT
18
STEVENS BUSINESS SCHOOL
BATCH 2009 - 2011
Billing Difference
 
Sales Team Division
• Pharma division
 – Old / big brand
 – Less promotion
 – Less expenses (CASH COW)
• Speciality division
 – Gastro division
 – Cardio / diabeto division
 – Psycho / neuro division
 – Ortho division
 – Opthal division
 – Dermato division
20
 
Thank You
21

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Sales-management in pharmaceutical Industry

  • 1.   Pharma selling and sales marketing
  • 2.   Distribution Channel Company C & F or CA Super Stockiest Stockiest Doctors, Nursing, Dispensary, Substokiest 2
  • 3.   Types of Pharma Selling • Ethical selling • Generic selling • PCD : Propaganda cum dispensing • Surgical selling • Tender Selling • Over the Counter (OTC) 3
  • 4.   Issues of Pharma sales • Ethical selling  – Promotion overload  – Too many companies • Doctors issues  – Fixed day and time of meeting to MR  – Fixed No. of MR  – Visit regulated 1/3 months  – Time of giving cards & time of actual calls  – Fixed No. of company MR to meet  – Waiting to MR 4
  • 5.   Role of Various field Staff • Medical representative  – Implementation of promotional strategy  – Contact doctors , N/h , Co  – hospital  – To give info about product  – Convince doctors to give Rx  – Make a network with retailers & chemist  – Make a network with stockiest  – Reporting  – Generation of order ( Retailer  – POB  – Stockiest ) 5
  • 6.   Questions asked to MR • Primary sales • Secondary sales • Personal order booking ( POB ) • Call average • Coverage • Report calls 6
  • 7.   Role of other field staff • Role of Area manager • Role of state manager • Role of Regional manager • Role of zone manager • Role of national manager • Role of VP of Sales 7
  • 8.   Tool program • Submitted on 25th of month MR - TP •  AM Approved MR  – TP •  AM  – TP Submitted on 26th of month  AM - TP • RM approved AM -TP • RM  – TP submitted on 27th of month RM - TP • ZSM approved RM  – TP • ZSM  – TP submitted on 31st of month ZSM  – TP BASIC TOOL PROGRAM MADE ONLY ONCE IN YEAR 8
  • 9.   Reporting Channel VP OF SALES ZSM RSM  ASM MR 9
  • 10.   Kind of Reports for sales force • DCR : Daily call report • Expenses Detail report • TP : Tool program • Weekly reporting • Monthly reporting • Basic tool program ( BTP ) • DWP : Daily work plan 10
  • 11.   Sale Administration Department • Do compilation of all reports of sales • Normally one person for each state • Prepare summary report of  – All India  – state wise  – unit wise  – value wise sales report for product manager for his product  – All India last three months sales of same brand  – All average / coverage  – Utilization of inputs • Use of gifts, samples, skims, Bonanza 11
  • 12.   Sales Budgeting • Marketing Department  – Give guideline to sales department  – Marketing Budget • Gifts • Samples • Sponsorship • Bonanza • CME (Continuing medical education) •  Advertisement • Printing expenses • Meeting Expenses • Incentives • Transportation • Expiry and goods return 12
  • 13.   • Finance Department  – Finance budget • Factory department  – Production budget • Sales admin department • Purchase department • HR department 13
  • 14.   Credit Control • Credit period • Credit limit • Mode of payment • Stockiest profile • PDC ( Post dated cheque) • Cash Discount • Special cases • No PDC 14
  • 15.   Costing & Finance • Different types of cost  – R & D ( F & D )  – Production cost  – Inventory cost  – Transportation cost  – Marketing cost  – Regulatory cost  – T & D cost  – PM cost  – Overhead Cost 15
  • 16.   MRP Decision • Competition pricing • New marketing / Scientific gimmick • Monopolistic MRP • Kind of marketing company do • % G C (Gross contribution) 16
  • 17.   Billing • Billing cycle  – From the time bill is raise to the payment received • Normally billing cycle is of 21 day • Payment cycle is 60 days for 1st deal for stockiest 17
  • 18.   Billing for C & F • Transfer of stock • Transfer challen • F  – Form  – taken from sales tax department • 0.5% sales tax has to pay Billing for C & A • Billing • Bill is Made • C  – Form  – Outside state 2% central sales tax (CST) + add 5 % VAT  – Within state only 5% VAT 18 STEVENS BUSINESS SCHOOL BATCH 2009 - 2011 Billing Difference
  • 19.
  • 20.   Sales Team Division • Pharma division  – Old / big brand  – Less promotion  – Less expenses (CASH COW) • Speciality division  – Gastro division  – Cardio / diabeto division  – Psycho / neuro division  – Ortho division  – Opthal division  – Dermato division 20