sales representative in new wave marketing 2009
TRANSCRIPT
New Concept of Sales Representative in
New Wave Marketing 2009
Background
“US pharmaceutical companies have for decades relied on the “pinball wizard” sales model: sales representatives bounce from one doctors office to another in hopes of catching a few moments with physicians and influencing which drugs they prescribe.”
“In recent years, the changing dynamics of the business have prompted a massive expansion of sales forces. The resulting
system is costly, inefficient, and rife with dissatisfaction.”
- MCKINSEY
“Industry average for field force budgets is nearly $875 million with top spending organizations committing more than $1billion” – Cutting Edge
Background• Business Challenge
– Physicians spending less time with sales representatives – about 38% of physicians have consciously decided to make less time for pharmaceutical representatives than they did in 2001.
– Research conducted in 2001 indicates physicians were allocating 10% of their day to seeing pharmaceutical representatives assuming they saw them at all.
– Because of increasing complexity of marketplace dynamics, sales representatives are unable to effectively adjust their sales activities, and are increasingly experiencing poorer sales results.
– Despite these claims, pharmaceutical companies continue to use outdated reach and frequency models based on sales call goals from the mid 1990’s to influence their sizing models.
3-6
3-8
IT IS JUST BECOME A HYPERMART OR MORE THAN
SELLING ???
Selling is only the tip of the iceberg
“There will always be need for some selling. But the aim of marketing is to
make selling superfluous. The aim of marketing is to know and understand the customer so well
that the product or service fits him and sells itself. Ideally, marketing should result in a
customer who is ready to buy. All that should be needed is to make the product or service
available.
Selling
• Selling is not about getting people to buy something they don’t want.
• Selling is about helping people meet their needs.• Remember:
A selling philosophy: You can achieve most of the things in life that you want if you
help other people achieve what they want.
As a sales representative, your goal is to help your customers to achieve their goals.
3-12
Frustration.
Stress.
Exhaustion.
Marketing Failure.
No One Wants…
Types of sales representatives
• Order takers– Routine completion of sales to targeted
customers.– Important for maintaining customers.
• Order getters– Establishing relationships with new customers.– Important for growing a business.
Types of sales representatives (continued)
• Technical specialists– Doesn’t close - explains technical details, shows how
products may interface with other products.• Missionary sales
– Also known as merchandisers or detailers. (ex: a pharmaceutical sales representative.)
– Doesn’t close - they try to stimulate demand, show ways to increase product sales. Gateway to other sales positions.
New Challenges in the slowdown markets ?
• Delighting Customers.• Reducing Cycle Times.• Keeping up with Technology Advances.• Retaining People.• Reducing Costs.• Responding More Quickly.• Structuring for Flexibility. • Growing Overseas Markets.
3-16
PAIN, URGENCY, SURVIVAL
COSTS OUT
GROWTH
TRANSFORM THE ORGANIZATION
CHANGE THE
WORLD
6 SIGMA AS ASTATISTICAL TOOL
6 SIGMA AS APHILOSOPHY
6 SIGMA ASA PROCESS
Overview of Six Sigma
Overview of Six Sigma
It is a Philosophy– Anything less than ideal is
an opportunity for improvement
– Defects costs money– Understanding processes
and improving them is the most efficient way to achieve lasting results
It is a Process– To achieve this level of
performance you need to: Define, Measure, Analyse,
Improve and Control
It is Statistics– 6 Sigma processes will
produce less than 3.4 defects per million opportunities
Components
Two components of Six Sigma
1. Process Power
2. People Power
Components
Two components of Six Sigma
1. Process Power
2. People Power
Process Power
P-D-C-A
P
DC
APlan
DoCheck
ActAct on what was learned
Check the results
Plan the change
Implement the change on a small scale.
Approach
Practical Problem
StatisticalProblem
Statistical Solution
Practical Solution
DMAIC - simplified
• Define– What is important?
• Measure– How are we doing?
• Analyze– What is wrong?
• Improve– Fix what’s wrong
• Control– Ensure gains are maintained to guarantee performance
DMAIC approach
DDefine
MMeasure
AAnalyze
IImprove
CControl
Identify and state the practical problem
Validate the practical problem by collecting data
Convert the practical problem to a statistical one, define statistical goal and identify potential statistical solution
Confirm and test the statistical solution
Convert the statistical solution to a practical solution
Define
DDefine
MMeasure
AAnalyze
IImprove
CControl
VoCVoC - Who wants the project and why ?
The scope of project / improvement (SMART Objective)
Key team members / resources for the project
Critical milestones and stakeholder review
Budget allocation
Measure
Prepare data collection plan
Collect data
- Is tool used to measure the output variable flawed ?
- How many data points do you need to collect ?- How many days do you need to collect data for ?- What is the sampling strategy ?- Who will collect data and how will data get stored ? - What could the potential drivers of variation be ?
DDefine
MMeasure
AAnalyze
IImprove
CControl
Analyze
How well or poorly processes are working compared with- Best possible (Benchmarking)- Competitor’s
Shows you maximum possible result
Don’t focus on symptoms, find the root cause
DDefine
MMeasure
AAnalyze
IImprove
CControl
Improve
Present recommendations to process owner.
Pilot run- Formulate Pilot run.
- Test improved process (run pilot).
- Analyze pilot and results.
Develop implementation plan.
- Prepare final presentation.
- Present final recommendation to Management Team.
DDefine
MMeasure
AAnalyze
IImprove
CControl
Control
Don’t be too hasty to declare victory.
How will you maintain to gains made?- Change policy & procedures- Change drawings- Change planning- Revise budget- Training
DDefine
MMeasure
AAnalyze
IImprove
CControl
Omitting a step in DMAIC?
Step Consequences if the step is omitted 1. Define2. Measure3. Analyze4. Improve5. Control
Benchmark Baseline Contract / Charter Kano Model Voice of the Customer Quality Function Deployment Process Flow Map Project Management “Management by Fact” – 4 What’s
7 Basic Tools Defect Metrics Data Collection, Forms, Plan, Logistics Sampling Techniques
Cause & Effect Diagrams Failure Models & Effect Analysis Decision & Risk Analysis Statistical Inference Control Charts Capability Reliability Analysis Root Cause Analysis 5 Why’s Systems Thinking
Design of Experiments Modelling Tolerancing Robust Design Process Map
Statistical Controls Control Charts Time Series Methods Non Statistical Controls Procedure adherence Performance Mgmt Preventive activities Poke yoke
DefineWhat is wrong?
MeasureData & Process
capability
Analyze When and where
are the defects
ImproveHow to get to six sigma
ControlDisplay
key measures
Tools for DMAIC
Components
Two components of Six Sigma
1. Process Power
2. People PowerTell me, I forget. Show me , I remember. Involve me, I understand.
Master Black Belt
Black Belts
Green Belts
Team Members / Yellow Belts
Cham
pion
s
Leader of teams implementing the six sigma methodology on projects.
Delivers successful focused projects using the six sigma methodology and tools.
Participates on and supports the project teams, typically in the context of his or her existing responsibilities.
6 Training
To be continued after COMERCIAL BREAK..........
Market Opportunities
“The same study that showed 38% of physicians that have made less time for sales representatives
also reveals that 57% of physicians would make more time for sales reps if they provided more
value-added services.”
Market Opportunities
DosingSafety
Side Effects
Reimbursement Efficacy
Convenience
“Market research shows the reasons why physicians choose one drug over another can be broken down across the factors that drive their prescribing practices”
“There is a distinct movement now using more market intelligence that is segmented in new ways to influence the prescribing practices of physicians”
“This will create new opportunities for
companies that take an integrated, collaborative
approach to pharmaceutical sales and
marketing”
Market Opportunities“In the past, companies focused on geographic segmentation to sell their products. More recently, account level segmentation with more emphasis on clinical knowledge by the sales representative has shown some success…”
DosingSafety
Side Effects
ReimbursementEfficacy
Convenience
“However, market dynamics and the complexity of clinical differences between specialized medicines is driving the need for collaborative interactions between sales professionals and the physician in ways never seen before.”
“Companies that are selling in to this market must adopt an approach that optimizes the use of market intelligence with that of new channels physicians are using to stay abreast of advances in treatment practices.”
Changing Fundamental, Core Behaviours to Achieve Improved Business
Results Culturaland
OrganisationalDevelopment
High Performance
Teams
StrongerCustomer
Relationships
ImprovingSales Growth
LeadershipDevelopment
ManagementEffectiveness
PersonalDevelopment
Executive LevelSenior ManagersMiddle ManagersSales People
How Salespeople Spend an Average 46-Hour Work Week
New Concept of Sales Representative in New Wave Marketing 2009
Traditional Salesperson
Professional Salesperson
Golden Rule Salesperson
Guided by self-interests
Takes care of customers
Others interests most important
Cont’
New Wave
Seven Dwarfs Snow white
Legacy
IMPA
CT (R
ETUR
N)IM
PACT
(RET
URN)
Low
High
Low High
EFFICIENCY AXISEFFICIENCY AXIS
BUDGET (INVESTMENT)BUDGET (INVESTMENT)
EFFE
CTIV
ITNE
SS A
XIS
EFFE
CTIV
ITNE
SS A
XIS
3-44
THE CREATIVE SELLING PROCESS
IDENTIFYING & QUALIFYING PROSPECTS
APPROACHING THE PROSPECT
MAKING THE SALES PRESENTATION
HANDLING OBJECTIONS
CLOSING THE SALE
FOLLOWING UP
Identifying and qualifying prospects
• Identify prospects who have…– the need to buy
– the financial ability to buy
– the authority to buy
Identifying and qualifying prospects
• Finding these prospects?• Trade lists• Referrals• Inquiries• Internet visits• Government publications• Coupons returned• Previous customers• Internet smart agents
The approach
• Initial contact• Establish rapport• Make a good impression• Problem solver for
prospective buyer• Collect information
Sales presentation
• Tell the product story• Attention, interest, desire, action • Use of appropriate sales aids
(computers, videos, brochures)• Importance of verbal and non verbal
communications
Handling objections
• Listen and learn first• Yes…but• Additional information• Counter arguments• Change product or service to
overcome objection
Closing the sale
• Know when to close• Trial closing• Assumptive closing• Straightforward approach• Summative approach• Narrow the alternatives
Give me the order now!!
Okay,okayI will!!
Thanks, but no thanks!!
Follow up
• Make sure all promises have been kept and the customer is satisfied with the purchase
• Resolve any problems encountered It’s working perfectly!!!
Success in Selling–What Does it Take? Love of Selling Is At Heart of Helping Others (7S success)
The Customer is at the Center of the Sales System: ABC’s
The people capability model
Continuous workforce innovationCoachingPersonal competency development
Organisational performance alignmentOrganisational competency management
Team-based practicesTeam building
Mentoring
Managed
Optimizing
Participatory cultureCompetency-based practicesCareer developmentCompetency development
Workforce planningKnowledge and skills analysis
CompensationTrainingPerformance management
StaffingCommunication
Work environment
Initial
Repeatable
Defined
Continuously improve methodsfor developing personal andorganisational competence
Quantitatively manageorganisational growth in
workforce capabilities andestablish competency-based
teams
Identify primarycompetencies andalign workforce
activities with them
Instill basicdiscipline intoworkforceactivities
The Future of Salespeople: Skills Required
• Learning conceptual skills– Example: planning
• Learning human skills– Example: working with customers
• Learning technical skills– Example: selling skills
Selling is Both an Art and a Science
• Selling takes practice, just like golf or tennis
• Selling is also a science because a growing body of knowledge and objective facts describe selling
Connect the Dots
• The following puzzle illustrates how you can be held back from breaking through. The challenge is to connect all nine dots with four straight lines, without lifting your pencil from the paper. Try it!
Go Beyond the Limits!
To reach your goals
Start Here1.3.
4.2.
Summary
• Personal selling is an old and honorable profession• Millions of people have chosen sales careers
because of:– Job availability– Personal freedom– The challenge– Opportunities for success– Non-financial rewards– Financial rewards
Summary, cont…
• Success comes from:– Training– Applying knowledge– Developing skills– Working hard– Wanting to succeed– Maintaining a positive
outlook– Effective time management– All to take care of the customer
3-65
THANK
YOU