Pharmaceutical Executive Europe - May 2008 - (Page 30) 30 Sales and Marketing May 2008 Pharmaceutical Executive Europe cases companies in a low profit situation may want only a small percentage of their reps to exceed their target bonus. Another decision point is around the rewards paid to the most successful relative to the least successful reps. Should they be able to get two or three times the bonus for example? With options available, the next step is to consider what plan ‘type’ is most appropriate. Broadly there are four types as illustrated in Figure 4 — market conditions will determine the best type to adopt and companies will likely therefore have a mix of types — and even variations within type — across their portfolio. change and so to make the right choice of plan design that all internal stakeholders (eg, sales, finance, HR, marketing) — including the sales force — are likely to understand, feel comfortable with and ultimately buy into. Testing, testing Before signing off the new plan and thinking about the issues around implementation, a rigorous testing of the proposed options is undertaken to look at what the payouts would be. This can be done either through simulation or by using historical data. Using the latter method for example, we can model what would have happened, say last year, if the new proposed plans had been in place. This not only checks that the new plans are likely to meet a range of goals, but enables the differences between options to be highlighted. It shows in detail the overall cost of the bonus; how many reps would meet their bonus; and the distribution of payouts between the highest and lowest performing reps. It also helps answer a number of key questions: will it motivate the right behaviours; how ‘fair’ is it; how does it differ from the existing plan; and will we be able to afford it? This is a powerful and very insightful tool that helps companies assess the likely future impact of the IC Figure 4: The main types of IC plan. About the Author David Ziedman is director, sales force effectiveness, at IMS Health, with particular expertise in resource optimisation, call planning, compensation systems and issues around sales force size, structure and product allocation. He draws on extensive experience of the sales function and a broader knowledge of the pharmaceutical industry to help companies optimise the deployment of their sales resources and improve sales productivity. During the course of his career David has worked in the USA, Benelux, Italy, France and the UK. He currently resides in the Netherlands.
Table of Contents Feed for the Digital Edition of Pharmaceutical Executive Europe - May 2008 Pharmaceutical Executive Europe - May 2008 Contents From the Editor News and Analysis Calendar Rising in the East Use Your Strategic Discretion A Blueprint for Success Market Access and the Patient Activating Effective Product Differentiation What Doctors Want IC Success in Four Steps Pharmaceutical Executive Europe - May 2008 Pharmaceutical Executive Europe - May 2008 - (Page Bellyband1) Pharmaceutical Executive Europe - May 2008 - (Page Bellyband2) Pharmaceutical Executive Europe - May 2008 - Pharmaceutical Executive Europe - May 2008 (Page Cover1) Pharmaceutical Executive Europe - May 2008 - Pharmaceutical Executive Europe - May 2008 (Page Cover2) Pharmaceutical Executive Europe - May 2008 - Contents (Page 3) Pharmaceutical Executive Europe - May 2008 - From the Editor (Page 4) Pharmaceutical Executive Europe - May 2008 - From the Editor (Page 5) Pharmaceutical Executive Europe - May 2008 - News and Analysis (Page 6) Pharmaceutical Executive Europe - May 2008 - News and Analysis (Page 7) Pharmaceutical Executive Europe - May 2008 - Calendar (Page 8) Pharmaceutical Executive Europe - May 2008 - Calendar (Page 9) Pharmaceutical Executive Europe - May 2008 - Calendar (Page 10) Pharmaceutical Executive Europe - May 2008 - Calendar (Page 11) Pharmaceutical Executive Europe - May 2008 - Rising in the East (Page 12) Pharmaceutical Executive Europe - May 2008 - Rising in the East (Page 13) Pharmaceutical Executive Europe - May 2008 - Use Your Strategic Discretion (Page 14) Pharmaceutical Executive Europe - May 2008 - Use Your Strategic Discretion (Page 15) Pharmaceutical Executive Europe - May 2008 - A Blueprint for Success (Page 16) Pharmaceutical Executive Europe - May 2008 - A Blueprint for Success (Page 17) Pharmaceutical Executive Europe - May 2008 - Market Access and the Patient (Page 18) Pharmaceutical Executive Europe - May 2008 - Market Access and the Patient (Page 19) Pharmaceutical Executive Europe - May 2008 - Market Access and the Patient (Page 20) Pharmaceutical Executive Europe - May 2008 - Market Access and the Patient (Page 21) Pharmaceutical Executive Europe - May 2008 - Activating Effective Product Differentiation (Page 22) Pharmaceutical Executive Europe - May 2008 - Activating Effective Product Differentiation (Page 23) Pharmaceutical Executive Europe - May 2008 - Activating Effective Product Differentiation (Page 24) Pharmaceutical Executive Europe - May 2008 - What Doctors Want (Page 25) Pharmaceutical Executive Europe - May 2008 - What Doctors Want (Page 26) Pharmaceutical Executive Europe - May 2008 - What Doctors Want (Page 27) Pharmaceutical Executive Europe - May 2008 - IC Success in Four Steps (Page 28) Pharmaceutical Executive Europe - May 2008 - IC Success in Four Steps (Page 29) Pharmaceutical Executive Europe - May 2008 - IC Success in Four Steps (Page 30)
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