November 15, 2008
Old sales force model losing traction
The traditional sales force model is no longer effective as doctors are no longer the key prescribing decision makers, according to the results of a report conducted by Research and Markets.
According to the report, governments and payers are implementing cost cutting initiatives and promoting generic use in an attempt to control escalating costs. This has made it increasingly difficult for sales representatives to promote expensive branded drugs to doctors.
The report states:
- Provides an overview of the current drivers behind the evolution of sales force effectiveness;
- Analyzes current and emerging sales force effectiveness models;
- Focuses on how to optimize sales force effectiveness through a variety of different medium; and
- Evaluation of key customer targeting and segmentation strategies.
The report concludes that optimizing sales and marketing resources, and identifying influential stakeholders is critical, as decision making around prescribing choices becomes more complicated following the emergence of additional stakeholders, such as government bodies and payers. The report states that most emerging models appear to be moving from the sales representatives working in silos, to a key account management (KAM) style role; treating local healthcare economies as an account.