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Use of medical representatives for marketing products to physicians and to exert some influence over others in the hierarchy of decision makers has been a time-tested tradition. Typically, sales force expense comprises an estimated 15 percent to 20 percent of annual product revenues, the largest line item on the balance sheet. Despite this other expense, the industry is still plagued with some very serious strategic and operational level issues.

2.1 From organizational perspective the most prominent performance related issues are enlisted below:

a) .Increased competition and unethical practices adopted by some of the propaganda base companies.

  • b)

    . Low level of customer knowledge (Doctors, Retailers, Wholesalers).

  • c)

    . Poor customer (both external & internal) acquisition, development and

retention strategies .

  • d)

    . Varying customer perception.

  • e)

    . The number and the quality of medical representatives

  • d)

    . Very high territory development costs.

  • f)

    . High training and re-training costs of sales personnel.

  • g)

    .. Very high attrition rate of the sales personnel.

  • h)

    . Busy doctors giving less time for sales calls.

  • i)

    . Poor territory knowledge in terms of business value at medical representative

level .

j). Unclear value of prescription from each doctor in the list of each sales person.

  • k)

    . Unknown value of revenue from each retailer in the territory

  • l)

    . Absence of ideal mechanism of sales forecasting from field sales level, leading

to huge deviations

m). Absence of analysis on the amount of time invested on profitable and not-so- profitable customers and lack of time-share planning towards developing customer base for future and un-tapped markets.

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