pharmamarketing final year BPharmacy.pptx

Suitable for BPharm Final year student

1. Pharmaceutical Marketing and Financial Management 2 Presented By Dr Vaibhav Vasantlal Changediya Professor & Vice-Principal Shri Sai College of Pharmacy Khandala

2. Presentation Content Pharma Company Organizational Structure Pharmaceutical product Marketing and Sales Pharma Distribution Channels Job profiled of Healthcare Sales Executive – Medical Representative (MR) Pharma Products Marketing and Promotions Product Mix Promotional Aid Detailing Handling a Visual Aid and Art of sampling

3. Pharma Company Organizational Structure Marketing Manager National Sales Manager PMT Team Zonal Head Regional Head Area Manager Sr. Medical Representative / Sales Executive Medical Representative / Sales Executive Directors CEO VP Sales Marketing 3

4. Pharmaceuticals Organizations department ▪ The Pharma functioning can be divided into five Main Function - Sales and Marketing Medical Department Manufacturing Research and Product Development Support Department 4

5. Pharmaceuticals Organizations department ▪ The main department sales and marketing can be further divided into two as Marketing and PMT team Sales team (field staff) e 5

6. Pharmaceuticals Organizations department ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Marketing and PMT team functions. It’s a thinking brain of any Pharma Company Development of strategy Brand Development and Branding Promotion and Marketing strategy Decision making New brands Launch or withdrawal of any brands Media Planning Training Brand Projection 6

7. Pharmaceuticals Organizations department . ▪ Sales team (field staff) function : ▪ They generates sale by meeting the customers ▪ Strategy Implementers ▪ Eyes and ears of the company in the field ▪ Sales Projection, Territory projection 7

8. Pharmaceuticals Organizations department ▪ The supporting departments are; Finance Purchase Logistic Graphic designing 8

9. 2) Pharmaceutical Product Marketing and Sales

10. Pharmaceutical Product Marketing and Sales 10 ▪ ▪ ▪ Pharmaceutical professional belong to an extraordinary class. Healthcare professional job is unique, special and rewarding. One is engage in healthcare business for, Improving the overall quality of life of people around, service the customer / doctors by giving them latest medical information Present before them logical prescribing alternatives Facilitate continues medical learning. Doctors all over the world agree, they depend on Medical Detail men for a big portion of latest medical information.

11. Types of selling a ) Consumer selling Product M e dia Advt. Consumer ( Customer) b ) Healthcare selling Product Customer ( Doctor) Consumer (Customer) 11

12. Customer 12 Pharmaceutical selling is an indirect selling One promote a particular product to a doctor who identifies the need of that particular product to a particular patient and prescribes the same hence, a doctor becomes a customer and patient become a consumer. Similarly the chemist honors the prescription raise by the doctor’s and the stockiest supply the stocks to the chemist while the C & F agent who hold the stock on behalf of the companies. A customer is that person who makes a decision pertaining to the usages of a particular product / services among the several options available

13. Who is the customer ? . 13 Similarly in pharmaceutical selling you promote a particular product to a doctor who identifies he need of that particular product to a particular patient and prescribes the same Hence, a doctor becomes a customer and patient become a consumer. That is the reason pharmaceuticals selling is considered as indirect selling. In this profession you may not meet the actual consumer of your product.

14. Customer ▪ The customers for pharmaceuticals Business are Doctors (Who raise the prescription) Chemist (Who honors the prescription) Stockist (Who supply the stocks to the chemist) C & F agent (Who hold the stock) Patients and general Public for OTC products (Who purchase and consume the products) 14

15. Difference between pharmaceutical selling and other consumer product 15 Pharma Marketing Sr. No. Pharma Selling Consumer Selling 1. The end user, patient is not the target customer The end user, the buyer is the target customer 2. The direct customer, Doctor, makes the purchase decision by prescribing Brand The end user, the buyer makes the purchase decision 3. Demand created by MR through prescription, creating “PULL” Demand created by advertisements and Point of Purchase “PUSH” 4. Distribution services is controlled by MR Distribution network, many times works independent of company sales representative. 5. Main source of feedback’s on market trend to company is MR Company depends on market profession syndicate agencies for research 6. The customer, doctor is well qualified and knows the product better than the sales man The customer, may or may not be well qualified and knows the product better than the sales man

16. 3) Pharma Distribution Channels

17. Pharma Distribution Channels Manufacture Company Depot CNF / Super Stockiest Stockiest Retailer / Chemist End User / Patients 1.5 – 4 % 10 % 20 % Doctor Rx 17

18. Pharma Distribution Channels 18 The Indian Drug and Medicine Retailers i.e. Chemist operate on the following system. The retailers purchase drugs from the stockiest and sub Stockiest . The chemist gets the margin of approximately 20% on the MRP. The net profit for the retailers is aprox. 12 - 14 %.

19. Indian Pharmacy SOP 19 Pharma Marketing The stockiest in turn purchase the goods from the Super Stockiest or CNF agent or the Distributors. The stockiest are appointed by the Pharma co. and is approved by the MSCDA. The stockist earn a margin of 10% on the retailers price. The sub stockist are the stockiest which are not appointed by the Pharma co. The sub stockiest takes the goods directly from the Legal Stockist and the Stockist keep 2- 4 % for himself and pass on approx. 6% on retailers price to the sub stockiest . The CNF agents in turns get the commission ranging from 1.5 % to 4% on the total turnover. The CNF is appointed by the Co. or many times the Co. itself acts as a CNF at least in the HQ. Territory.

20. 3) Job profiled of Healthcare Sales Executive – Medical Representative (MR)

21. Job Responsibility 21 ▪ To increase continuously sales of the company product with ethical promotion to the assigned territory. ▪ Make confident efforts towards improving services to customer ▪ To provide regular feedback to the company and the superiors on all the happenings in the field, regarding ▪ Competition ▪ Marketing ▪ Socio- economic condition

22. Job Responsibility 22 Pharma Marketing To fulfilled the above responsibilities you have to do the following; To meet targeted customers (Doctors and Chemist) Inform them about the products / services offered by the organisation . To create awareness To inform customers about the features and benefits of our products

23. Need of Medical Representative (MR) / Sales Executive 23 Pharmaceuticals / Health care Ethical product cannot be promoted directly to patients through mass media - Radio, TV, Print Due to stiff competition the customer has to be met and persuade frequently so that he begins, continues and increases the use of our products.

24. 5) Pharma Products Marketing and Promotions

25. Pharma Promotions 25 Pharma Marketing ▪ The Pharma Promotions or the marketing strategy is focused on the following level External Customer Doctor level Chemist Level Patient level Masses level Packaging Level Price level b ) Internal Customers 1. Sale team level

26. 1) Doctor level Type of Doctor GP ( MBBS or Non MBBS). Specialist or super specialist Independent practitioner or attached to hospitals (Gov or Private) Physicians or Surgeon Type of the patients served by the doctors Urban or Rural Patient Economical Status – Upper class or Middle class Urban working class or Business class patient Well read and aware of Latest trend 26 harma Marketing Type of Doctor- Target Customer

27. Promotional Aid used for Doctors 27 ▪ ▪ The objective to promote Pharma brands to the Doctors is to get their prescription Most commonly used promotional tools to promote Pharma products to doctors is as follows, Visual aid Literature Gift articles Prescription pad LBL Stickers vii. Clinical trials Physicians Samples Posters Catch cover Journal advertisements References xiii. Participation in Symposium, Medical conferences and CME Involvement in Brand launch and various other field activity Sponsorships

28. 2) Chemist Level Understand what type of the chemist is What type of customers he is serving (Doctors and Patient Class) Most commonly used promotional tools to promote Pharma products to doctors is as follows, Bonus offer Chemist Folder Stickers Chemist LBL (Vernacular Language Posters ) Gifts 28

29. 3) Patient level 29 Patients are targeted indirectly for brand promotions The best time to divert the patients attentions is when they are waiting in consultancy for their turn . Tools used for patients promotions; Patient Educations literature Posters Medical Camps

30. 4) Masses level 30 Pharma products which can be promoted at mass level includes; OTC drugs- Asprine, Idex, Move Crocine, Corex, Sugar free Food Supplements - Protein Powder- Horlics, Boost etc Tonics / Chavanprashs - Baidanath , Zandu etc. Neutraceuticals – Calcuim Sandoze Herbal Medicines – Himalaya Products

31. 4) Masses level Tools used to promote OTC products through Mass Media advertisements are, Radio TV Print - News Paper, Magazines etc. Mailers Internet Media - Emails , website, Blogs 31

32. 5) Packaging level ▪ Packaging is important not only to promote OTC products but also ethical promotions . ▪ Packaging serves four purposes To protect the inside products from Physical, natural environmental and chemical damage To attract the customers To build the perceived value of the products To build customers trust on the products. 32

33. 6) Price level Promotion at price level always carry a risk when the competitors reduces their prices. 33 Phama Marketing

34. 7) Sale team level 34 ▪ Sales team is the most important link between the company and the customers.   It is said the sales team is the eyes and the ears of the company. Sales team are burden with more then 20 – 30 products. During the launch campaign one must convinced and motivate the sales team regarding the new brand.

35. 7) Sale team level 35 ▪ Tools used to motivate the sales team Various competition at Regional , Zonal and national level. First Prescriptions , First 5 prescriptions or maximum pr4escriptions in a stipulated period Launch gifts to the sales team Various field activity involving the doctors like Brand launch in a particular area , CME, Medical camps etc.

36. 6) Product Mix

37. Product mix 37 Product mix means selling the right product in right quantity at the right time to the right customer. A successful Healthcare sales professional will sell all the products and achieve his targets Sales professional who sells the product mix can achieve his rupee value target but , sales professional who achieves his rupee value target may not achieve the product mix.

38. 7) Promotional Aid

39. Promotional Aid 39 ▪ Most commonly used promotional tools in the pharmaceuticals industry are Visual aid Literature Gift articles Prescription pad LBL Flier Brochure Stickers Clinical trials Physicians Samples Catch cover Journal advertisements 13. References 14. Participation in Symposium ., Medical conferences and CME 15. Bonus offers

40. Visual Aid 40 Visual Aid or VA as it is commonly known, is a spiral bound material with photo- mount stand there are several laminated page s with product messages Advantages of VA: Ensure attention of the customer, the picture and messages printed on it are to attract the customers attention you can point out relevant portions on the pages and deliver the detailing story. This ensures Audio- visual presentation. The doctors “sees” and “hear” at the same time. Helps to create audiovisual impact, communicate message to doctor in a logical sequence Helps to discuss many product at a time Helps to skip the detailing of products not meant for a particular specialty Very effective communicating tool

41. Literatures and Competitors Literature 41 Literatures: A good input for detailing particular product in terms of prescribing information, dosages, adverse reaction features, benefits, contraindication etc. Competitors Literature: It helps to convey the promotional message of competitors to the doctors. Through indication and variations references we can pass information to H.O. so as to develop counter attacks

42. Leave Behind card / Literature (LBL) 42 Helps doctors as a reminder for our product, in our absence. But it must be detail at the time of presentation LBL is not meant for mass distribution, it is targeted towards the potential target audience. LBL give specific information on the service or product. Any literature which is given in person to the potential client e.g. MR gives the literature to the doctor after his/her sales presentation. These literatures are not taken back by the MR but it is leaved behind so that the doctor in his leisure time can go through it. Practically, the paper used for LBL printings is above 175 GSM and mostly it is a 4 colour job.

43. Flier 43 Any literature which is distributed to masses i.e. for mass distribution. The flier is usually used to pass on the information's for the masses, sp. Info on some event venue, tel. no. etc. The fliers are usually distributed at the railway station, some local fair or some event or distributed by putting it in the news paper. Practically the paper used for flier printings is less than 100 GSM, mostly 80 GSM maplito paper, may be one colour 2 colour or 4 colour job.

44. Brochure 44 This literature gives the in- depth knowledge of the service / product targeted to the potential client. Practically it is more the 4 - 6 pages Mostly all pages are bound together either simple binding or back to back pasting Each pages are about 175- 200 GSM if it is a simple binding or for back to back pasting 150- 175 GSM.

45. Catch Cover and Physician Samples 45 Catch Cover: This tells you about the product details, composition, colour, manufactured date, expiry date etc. Physician Samples: Samples enable doctor to asses the physical characteristics of our product To assess the efficacy of our products in various s indications As a reminder To fulfill the doctors need for his patients, family members or himself and friends

46. Gifts 46 ▪ Gifts helps to express our gratitude for the support of doctors , which he is extending to our products ▪ To enhance the recall value of our product ▪ To convert doctors prescriptions of competitors brands to our brand ▪ Always give value to the gift by presenting it nicely and never convey the real value of the gift to the doctor .

47. Bonus offer 47 ▪ It ensure better stocking of our product at the retail counters ▪ It generates enthusiasm amongst the retailers ▪ It takes care of increased prescription demand you have generated for a particular product . ▪ Sometimes helps you to boost sales. With bonus offer you must sale at least 21/2 times more compared to your normal sales.

48. Stickers 48 ▪ ▪ ▪ ▪ ▪ It is used mainly as a medium for remembrance The sticker ensure that products name is visible from the walls or from the place where the doctors can read the name Don’t put stickers where there is already hundreds of stickers are stuck Select a proper place where your sticker can be easily visible, eye level to the customer Remember, before you put stickers, ge t the permission from the doctors to do so.

49. 8) Detailing

50. Definition of Detailing 50 Detailing is a presentation of selling points in the most logical sequence to the customer Sales promotion, sales presentation, sales interview are the other names of detailing Basically detailing means the communication of your message to the customer to increase the sales.

51. Objective of Detailing 51 To make the product known to the doctor, but its purpose is to crate a NEED and WANT in the mind of the doctor This step is technically known as “comprehension” of the product to the doctor with a view to generate an urge in his mind to prescribe the product

52. Principles of Detailing Logical and sequential presentation Logical build up of selling points Fastening the minds of the customer Hammering the key points Giving proof for all statements whenever needed . 52

53. Contents of Detailing 53 Medical detaining is the conversation between the doctor and the MR. It is a dialogue and not a monologue. The MR builds the discussion with doctor on; Name of the product “BRAND ”, Indication in which the product is advocated Benefits that the product can offer to the patients Detailing should be clear, concise and logical and it must be enlighten

54. Contents of Detailing 54 Detailing should contain the following: What the product is? (Basic Product) What it is used for? ( Indication) What it will do? ( Action) How it is better? ( Comparison) What are the benefits? Thus medical detailing consist of Product Presentation and Motivation or Persuasion

55. Contents of Detailing Name of the product Indications Benefits to patient Medical Detailing Conversation 55

56. Detailing should be 56 Complete Clear Delivered with confidence Conviction Eliminate the competition Should follow the “AIDA” principle .

57. Detailing sequence 57 The pre approach The approach The name of the product The “you” benefit The building of confidence The proper close

58. Detailing sequence 58 The pre approach: The stage of collecting specific information of customer before actually calling on him The approach: Going near to your customer using AIDA principles and make your call effective The name of the product: Mention your product name time and again to the doctor as it help in registering the brand name in customers mind

59. Detailing sequence 59 The “you” benefit: Highlighting the benefits of the product for doctors and his patients. Doctor always appreciates if we talk from patients angle and not from the angle of the company The building of confidence: How confidant you are about yourself, your product and company. This confidant will get transform into building up doctor’s confidence and therefore Objection handling become easier, this is the key to success

60. Detailing sequence 60 The proper close: The close is nothing but whether you have made any impact on doctor or not . The impact can be measure in terms of sales Close the call with the prescription demand is a must Always close with a statement such as - “Doctor May I get at least 5 prescription in this week from you so your patient will benefit from our product”

61. Basic structure of a sales presentation Opening Get attention Create interest and sustain it Present benefits Demonstrate Feedback Handle objection viii. Close 61

62. 9) Handling a Visual Aid and Art of sampling

63. Handling a Visual Aid 63 ▪ In handling VA the first thing remember is that detailing is an art, and has to be done with lot of care and conviction. ▪ Care means lot of practice and Conviction means with emotion . Important points on how to handle VA: Let the doctor sees the visual and text matter Don’t hurry and turn pages

64. Handling a Visual Aid 64 Ask for doctors comments on some special points Give brief pause between one product and another Handle VA gently and with care Sound confident while making claims. Modulate voice, articulate clearly. Control speed of your speech . Give emphasis to points printed boldly

65. Handling a Visual Aid 65 Always use a pointer (pen is the best pointer and easily available) Do not run the pointer, use it only to point Hold the VA at appropriate distance so that doctor can read it properly If doctor takes the literature from you and starts reading, do not disturb him let him complete it. Do not interrupt him.

66. Art of sampling 66 ▪ Every companies give adequate samples to their sale steams but it is an individual who makes the difference with these samples in generating prescription It is advisable to use these samples in a judicious way to create an impact in every visit. Distribution of samples with demonstration is a very important aspect of our job instead of just keeping samples on doctor’s tables . iii. Always remember that you should arrange the samples on the doctor’s table in such a way that brand name and important features face the doctor.

67. Art of sampling 67 Never keep the samples by telling that “here are few samples” instead, always tell that “ this product you can try on your next patient suffering from (condition)” Always demand prescriptions when you keep the samples Use demonstrating technique to make your product stand in doctors mind. Always demonstrate colour, scoring taste, smell etc.

68. A) How to increase the business by meeting the doctor 68 Users of product: Total number of customer who can use the product should continuously increases. E.g. today only one doctor is prescribing Zoxicillin in a territory, tomorrow it should be 10 doctors and so on and so forth.

69. B) The key factors to become a successful Sales Executive (MR) 69 Follow the following 5- check point of pharma selling; Right identification and quantification of customer and product Ensuring repeat visits at regular intervals Detailing and discussing right product mix with the right customers Demand a continuous increase in the prescription share of the pre - selected products Ensuring free and regular availability of products at chemist and stockist counters.

70. B) The key factors to become a successful Sales Executive (MR)- Core Customers 70 Core Customers: Identification and quantification can be made and continuously update with help of Retail surveys Find out who are the potential prescriber What is their capacity to prescribe a particular product or brand.

71. B) The key factors to become a successful Sales Executive (MR)- Core Customers 71 Always remember that 20% of the total customers in the territory give an 80% of the business Hence these 20 % customer become the core customers not only to our company but also for many other companies. Ensure the core customer for a particular product or brand must write at least that product or brand in more quantity. Objective is to continuously increases and upgrade core customer’s list by converting 2nd line doctors to core customers.

72. C) What you should know before going to field? 72 Your Product / services: Understanding the product well Which product you are going to sell? Why you want sale? To whom are going to sell? Selection of Right customer for right product

73. C) What you should know before going to field? . 73 2 ) Your customer: Qualification Specialty Class of patient - middle class / upper class Type of patient e.g. male, female, adult, child, young, old, rich, poor etc. Where he is practicing- Rural area / Urban are, Elite area. Type of practice - Private practice, Govt. Hospital, Big / small Hospital, Attachments Visiting Time – for patients and for Sales Executive

74. D) Qualities of a successful Sales Executive (MR) 74 ▪ Given below are few qualities which every MR must posses; Should be sincere and hard working Must have power to grasp the technical aspects of his products as well as that of competitors Must have knowledge about his customers habit, potential desires and behavioral patterns Should take initiative to learn about the competitions activities for efficient and logical handling of the objections Must understands the selling features, benefits of his products

75. D) Qualities of a successful Sales Executive (MR ) 75 Should have the ability to analyses and correct his mistakes. He must continuously secure guidance from the superiors without any hesitation Should be clear about company’s mission, objective and clear perception about a particular products for selling to a particular customer Excellent human relation ship with doctors, chemist, stockist and colleagues to ensure their full co- operation in establishing the product Foresight to maintain adequate stocks of his product with the stockist and chemist

76. D) Qualities of a successful Sales Executive (MR) 76 Promptness in handling all quality complaints diplomatically in the field or in the territory. Loyalty and integrity in continuously improving the image of the company Enthusiasm to participates in all special assignments, sales competitions and training programs. The capability to of increasing the sales of the company s products to the level desire by the company. Pleasing personalities with neatly dressed, shine on shoes and smile on face. Ownership feeling towards company’s property .

77. D) Qualities of a successful Sales Executive (MR) 77 Should have positive attitude, skills and knowledge Should be honest in his day- to- day activities. Must complete the sale by ensuring the inflow of payments on time. Regularity of clock in submitting all reports, special information and communication. An appropriate behavior pattern during office hours as well as out of office in a manner, which is not indetrimental to the reputation and image of the company.

78. 15) Chemist

79. Chemist 79 Chemist or retailer is the last or the end part of the chain of distribution. Chemist provides the medicines to the buyer, prescribed by the doctors. Chemist realises the prescription written for our product, thereby he is an important aspect in getting the sales.

80. Company Depot C & F Agent / Depot Stockiest Chemist Doctor Rx Patient 80

81. Relation of MR (Company) and Retailers 81 The only way to meet the target is to generate the prescription demand and by maintaining Stock pressure at the retailer- to meet this demand Therefore to honour the generated prescription demand – Retailers Assistance is Vital To maintain stock pressure – Retailer’s Assistance is equally necessary. Retailer’s Assistance will be forthcoming only if he sees you as an “ASSISTANT” ready to help him. Retailers may see you as one helps him earn extra profits and information.

82. Relation of MR (Company) and Retailers 82 The only purpose why a retailer entertains you is because he sees you as one helping him to earn profits and extra information on company’s product. Thus the objective of the retailer to see any Companies MR is as one who always helps him to earn more profits and give information about the products. Talk to him about new products trade offers etc. Remember retailer doesn’t mean the Proprietor (owner) alone, it means his assistance too, the counter clerk, the pharmacist and the cashier / accountant. Do not ignore any one. Talk to each one politely.

83. Function of the Chemist 83 Chemist / Pharmacist fills up the prescription written by the doctors Makes the availability of products for patients for which he stores the medicines in the shop Honours the prescription written by the doctor Is the link between the patient and doctor, sometimes he helps the patients in understanding the dosage and administration of the prescribed medicines.

84. Need to meet the chemist/retailer 84 To inform the retailer about the availability of company’s products and its salient features. To know which doctors is prescribing what? To know the secondary sales of our product s, to know how our competitors are doing To make it sure that chemist is not running short of any of our products for which he receives prescription. To book the orders for our products To get the feedback regarding any near expiry goods. To know type of the doctor in terms of qualification and practice in your territory To know the potential of a doctor in the territory

85. Prerequisite before visiting chemist 85 A copy of recent price list along with latest information about bonus offers / schemes provided by the company POB (Personal Order Book) 2 – carbon papers All product stickers or information literature Ready stock- provided, if you are visiting a new/ remote area and launching a product. A small diary / note book to note the observation (Daily call Companion)

86. Stockist 86 All of you will agree that you have generated the prescription, which gets honored at the chemist counter . But who serves the chemist ? Or who takes care of the demands generated by you? It is the stockist hence proper functioning of stockist plays an important role

87. Stockist 87 A stockist is a customer who stocks the products of various companies and sells to the retail chemists. His basic job function would be to satisfy the need of the retailers and he has to deal with company as per the company rule.

88. Need of stockist 88 Our country has a wide geographic borders and our success will greatly depend on how powerful is our distribution system. As majority of companies have started covering even micro interiors, the pharma business in these place have started flourishing. Now days there are more than 4- 5 chemists even in the micro interiors and we have to serve them very effectively. Earlier company used to operate with few stockist and mainly retailers used to come and buy from them but today due to fierce competition even stockist has to go to the retailer and book the orders and supply them.

89. Criteria to appoint a stockist 89 Appointment of stockist plays an important role in prosperity of your sales therefore his appointments should take maximum time and care so as to find promotion in future. The first step to be taken before appointing a stockist is to undertake a thorough chemist survey MR must collect the information through chemist regarding stockist who covers that area in terms of Regularity and frequency of visits Credit facilities extended Time taken for executing the orders.

90. Stockist operations 90 You have to coordinate very effectively and regularly with your stockist , Area Manage, Regional Manager, your superiors and H.O . for the smooth operation. You must be able to manage his purchases, his services and his payments.

91. Thank You Thank You