sales representative in new wave marketing 2009

New Concept of Sales Representative in

New Wave Marketing 2009

Background

“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.”

“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

Background• Business Challenge

– 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.

– Research conducted in 2001 indicates physicians were allocating 10% of their day to seeing pharmaceutical representatives assuming they saw them at all.

– Because of increasing complexity of marketplace dynamics, sales representatives are unable to effectively adjust their sales activities, and are increasingly experiencing poorer sales results.

– Despite these claims, pharmaceutical companies continue to use outdated reach and frequency models based on sales call goals from the mid 1990’s to influence their sizing models.

IT IS JUST BECOME A HYPERMART OR MORE THAN

SELLING ???

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.

Selling

• Selling is not about getting people to buy something they don’t want.

• Selling is about helping people meet their needs.• Remember:

A selling philosophy: You can achieve most of the things in life that you want if you

help other people achieve what they want.

As a sales representative, your goal is to help your customers to achieve their goals.

Frustration.

Stress.

Exhaustion.

Marketing Failure.

No One Wants…

Types of sales representatives

• Order takers– Routine completion of sales to targeted

customers.– Important for maintaining customers.

• Order getters– Establishing relationships with new customers.– Important for growing a business.

Types of sales representatives (continued)

• Technical specialists– Doesn’t close - explains technical details, shows how

products may interface with other products.• Missionary sales

– Also known as merchandisers or detailers. (ex: a pharmaceutical sales representative.)

– Doesn’t close - they try to stimulate demand, show ways to increase product sales. Gateway to other sales positions.

New Challenges in the slowdown markets ?

• Delighting Customers.• Reducing Cycle Times.• Keeping up with Technology Advances.• Retaining People.• Reducing Costs.• Responding More Quickly.• Structuring for Flexibility. • Growing Overseas Markets.

3-16

PAIN, URGENCY, SURVIVAL

COSTS OUT

GROWTH

TRANSFORM THE ORGANIZATION

CHANGE THE

WORLD

6 SIGMA AS ASTATISTICAL TOOL

6 SIGMA AS APHILOSOPHY

6 SIGMA ASA PROCESS

Overview of Six Sigma

Overview of Six Sigma

It is a Philosophy– Anything less than ideal is

an opportunity for improvement

– Defects costs money– Understanding processes

and improving them is the most efficient way to achieve lasting results

It is a Process– To achieve this level of

performance you need to: Define, Measure, Analyse,

Improve and Control

It is Statistics– 6 Sigma processes will

produce less than 3.4 defects per million opportunities

Components

Two components of Six Sigma

1. Process Power

2. People Power

Process Power

P-D-C-A

P

DC

APlan

DoCheck

ActAct on what was learned

Check the results

Plan the change

Implement the change on a small scale.

Approach

Practical Problem

StatisticalProblem

Statistical Solution

Practical Solution

DMAIC - simplified

• Define– What is important?

• Measure– How are we doing?

• Analyze– What is wrong?

• Improve– Fix what’s wrong

• Control– Ensure gains are maintained to guarantee performance

DMAIC approach

DDefine

MMeasure

AAnalyze

IImprove

CControl

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

Define

DDefine

MMeasure

AAnalyze

IImprove

CControl

VoCVoC - 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

Measure

Prepare data collection plan

Collect data

- Is tool used to measure the output variable flawed ?

- How many data points do you need to collect ?- How many days do you need to collect data for ?- What is the sampling strategy ?- Who will collect data and how will data get stored ? - What could the potential drivers of variation be ?

DDefine

MMeasure

AAnalyze

IImprove

CControl

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

DDefine

MMeasure

AAnalyze

IImprove

CControl

Improve

Present recommendations to process owner.

Pilot run- Formulate Pilot run.

- Test improved process (run pilot).

- Analyze pilot and results.

Develop implementation plan.

- Prepare final presentation.

- Present final recommendation to Management Team.

DDefine

MMeasure

AAnalyze

IImprove

CControl

Control

Don’t be too hasty to declare victory.

How will you maintain to gains made?- Change policy & procedures- Change drawings- Change planning- Revise budget- Training

DDefine

MMeasure

AAnalyze

IImprove

CControl

Omitting a step in DMAIC?

Step Consequences if the step is omitted 1. Define2. Measure3. Analyze4. Improve5. Control

Benchmark Baseline Contract / Charter Kano Model Voice of the Customer Quality Function Deployment Process Flow Map Project Management “Management by Fact” – 4 What’s

7 Basic Tools Defect Metrics Data Collection, Forms, Plan, Logistics Sampling Techniques

Cause & Effect Diagrams Failure Models & Effect Analysis Decision & Risk Analysis Statistical Inference Control Charts Capability Reliability Analysis Root Cause Analysis 5 Why’s Systems Thinking

Design of Experiments Modelling Tolerancing Robust Design Process Map

Statistical Controls Control Charts Time Series Methods Non Statistical Controls Procedure adherence Performance Mgmt Preventive activities Poke yoke

DefineWhat is wrong?

MeasureData & Process

capability

Analyze When and where

are the defects

ImproveHow to get to six sigma

ControlDisplay

key measures

Tools for DMAIC

Components

Two components of Six Sigma

1. Process Power

2. People PowerTell me, I forget. Show me , I remember. Involve me, I understand.

Master Black Belt

Black Belts

Green Belts

Team Members / Yellow Belts

Cham

pion

s

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.

6 Training

To be continued after COMERCIAL BREAK..........

Market Opportunities

“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.”

Market Opportunities

DosingSafety

Side Effects

Reimbursement Efficacy

Convenience

“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”

Market Opportunities“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…”

DosingSafety

Side Effects

ReimbursementEfficacy

Convenience

“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.”

Changing Fundamental, Core Behaviours to Achieve Improved Business

Results Culturaland

OrganisationalDevelopment

High Performance

Teams

StrongerCustomer

Relationships

ImprovingSales Growth

LeadershipDevelopment

ManagementEffectiveness

PersonalDevelopment

Executive LevelSenior ManagersMiddle ManagersSales People

How Salespeople Spend an Average 46-Hour Work Week

New Concept of Sales Representative in New Wave Marketing 2009

Traditional Salesperson

Professional Salesperson

Golden Rule Salesperson

Guided by self-interests

Takes care of customers

Others interests most important

Cont’

New Wave

Seven Dwarfs Snow white

Legacy

IMPA

CT (R

ETUR

N)IM

PACT

(RET

URN)

Low

High

Low High

EFFICIENCY AXISEFFICIENCY AXIS

BUDGET (INVESTMENT)BUDGET (INVESTMENT)

EFFE

CTIV

ITNE

SS A

XIS

EFFE

CTIV

ITNE

SS A

XIS

THE CREATIVE SELLING PROCESS

IDENTIFYING & QUALIFYING PROSPECTS

APPROACHING THE PROSPECT

MAKING THE SALES PRESENTATION

HANDLING OBJECTIONS

CLOSING THE SALE

FOLLOWING UP

Identifying and qualifying prospects

• Identify prospects who have…– the need to buy

– the financial ability to buy

– the authority to buy

Identifying and qualifying prospects

• Finding these prospects?• Trade lists• Referrals• Inquiries• Internet visits• Government publications• Coupons returned• Previous customers• Internet smart agents

The approach

• Initial contact• Establish rapport• Make a good impression• Problem solver for

prospective buyer• Collect information

Sales presentation

• Tell the product story• Attention, interest, desire, action • Use of appropriate sales aids

(computers, videos, brochures)• Importance of verbal and non verbal

communications

Handling objections

• Listen and learn first• Yes…but• Additional information• Counter arguments• Change product or service to

overcome objection

Closing the sale

• Know when to close• Trial closing• Assumptive closing• Straightforward approach• Summative approach• Narrow the alternatives

Give me the order now!!

Okay,okayI will!!

Thanks, but no thanks!!

Follow up

• Make sure all promises have been kept and the customer is satisfied with the purchase

• Resolve any problems encountered It’s working perfectly!!!

Success in Selling–What Does it Take? Love of Selling Is At Heart of Helping Others (7S success)

The Customer is at the Center of the Sales System: ABC’s

The people capability model

Continuous workforce innovationCoachingPersonal competency development

Organisational performance alignmentOrganisational competency management

Team-based practicesTeam building

Mentoring

Managed

Optimizing

Participatory cultureCompetency-based practicesCareer developmentCompetency development

Workforce planningKnowledge and skills analysis

CompensationTrainingPerformance management

StaffingCommunication

Work environment

Initial

Repeatable

Defined

Continuously improve methodsfor developing personal andorganisational competence

Quantitatively manageorganisational growth in

workforce capabilities andestablish competency-based

teams

Identify primarycompetencies andalign workforce

activities with them

Instill basicdiscipline intoworkforceactivities

The Future of Salespeople: Skills Required

• Learning conceptual skills– Example: planning

• Learning human skills– Example: working with customers

• Learning technical skills– Example: selling skills

Selling is Both an Art and a Science

• Selling takes practice, just like golf or tennis

• Selling is also a science because a growing body of knowledge and objective facts describe selling

Connect the Dots

• 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!

Go Beyond the Limits!

To reach your goals

Start Here1.3.

4.2.

Summary

• Personal selling is an old and honorable profession• Millions of people have chosen sales careers

because of:– Job availability– Personal freedom– The challenge– Opportunities for success– Non-financial rewards– Financial rewards

Summary, cont…

• Success comes from:– Training– Applying knowledge– Developing skills– Working hard– Wanting to succeed– Maintaining a positive

outlook– Effective time management– All to take care of the customer

3-65

THANK

YOU