Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - (Page 5) SALES FORCE Defining new sales models There are four forces that define the sales model, two of which are internal and two external. Internally, the model is determined by the company’s product portfolio value proposition and organisational structure. Externally, it is directed by the context of the broader healthcare environment and by needs of the company’s customers and stakeholders in the widest sense (Figure 1). New market influencers are determining the choice of sales model with the emergence of additional gatekeepers to market access, whether they be government, healthcare payers, channel entities or key opinion leaders. Mastering the complexity of the changing stakeholder landscape requires innovative models to drive product approval and acceptance, not just adoption. Over the last two decades, the traditional sales model has developed on the premise that companies with newly priced and approved potential blockbusters can simply power them to peak sales by maintaining a heavy share of voice and detailing force. Now, the challenge for companies launching a new product is far more complex, not just in terms of gaining uptake by prescribers, but by the protracted intricacies of launch and market access. The gap between introducing a new product and obtaining uptake from a broad prescriber base is much longer, slower and more difficult than ever before: it is a slow burn process that requires a new operating model with new tactics. A winning share of voice is no longer sufficient. Firstly, more time and qualifications are needed to gain European, national and local regulatory approvals. Then, acceptance must be garnered from a whole range of additional stakeholders, such as pharmacoeconomics and HTA bodies, regional gatekeepers, and local care networks. Engaging with these stakeholders demands different skills. New competences and capabilities need to be nurtured, while job roles, teams and organisational structures need to be realigned to maintain competitive advantage and deal with new mechanisms for limiting market access. For instance, the industry must adapt to the 2007 reforms in Germany, which have promoted integrated healthcare contracts and direct price negotiation with the sick funds, bringing the prospect of greater use of risk-sharing agreements ever closer. This means that internally, alongside the traditional representative sales model, companies need to manage new teams involved in account-based selling, healthcare management, health economics and the growing use of budget impact assessment. At a regional and global level, they must also deal with the varying pace of change in different markets (see Figure 2), according to the stage of development. Re-orienting the sales model Implementing ‘coalface’ solutions at the local sales team level requires close collaboration with the company, right across its line of command. As well as regional interaction, the ability to interlock with the company’s local affiliate organisation is important. A framework is necessary to help companies think about preparing and re-orientating their sales models. A high-level, three-step process based on the following phases offers the most complete, effective and riskmanaged approach: 1. Internal capabilities and external environment Figure 1: The four defining elements of the sales model. • Need for differentiating value propositions • Shift of focus towards specialist care Product portfolio Customers • New types of customers • Changing needs, demands and expectations Company Future operating model • Organisational structure • Capabilities, processes and systems • Resources and investment Healthcare environment • Structural change alters landscape • Emergence of new stakeholders • Changing attitudes Figure 2: Environmental challenges. Emerging Markets (15%) Changing/Developing models Mature Markets (25%) Some pressure for change Advanced Markets (60%) Urgent need for change • Developing or fundamentally changing healthcare systems • Poor market metrics • Pharma looking for sales deployment models and potentially leap-frogging USA UK Sweden Ger Can France Benelux Nordic Italy Iber Japan CEE • Pharma in wait mode, not a burning platform for change • Relationship selling, access not yet an issue • Basic methodologies for sales deployment Evolution L.A. • Prescriber access challenges • Major ROI concerns • Industry reputation • Distribution complexity • Increasing no. of stakeholders • Shifting portfolio • Potential data visibility issues China India Turkey www.pharmexeceurope.com 5 www.pharmexeceurope.com
Table of Contents Feed for the Digital Edition of Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 Pharmaceutical Executive Europe - February 2008 Contents Sales Force Commercialisation Models Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Pharmaceutical Executive Europe - February 2008 (Page 1) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Contents (Page 2) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Contents (Page 3) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Sales Force (Page 4) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Sales Force (Page 5) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Sales Force (Page 6) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Sales Force (Page 7) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Sales Force (Page 8) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Commercialisation Models (Page 9) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Commercialisation Models (Page 10) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Commercialisation Models (Page 11) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Commercialisation Models (Page 12) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Commercialisation Models (Page 13) Pharmaceutical Executive Europe - IMS Sales Environment Supplement - February 2008 - Commercialisation Models (Page 14)
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