Docs and stocks

Author: Nigel R. Parker

Abstract:

Changes in the global healthcare environment have significantly depressed the capitalisation of the Pharmaceutical Industry. Sales & Marketing resources are likely to be reduced and consequently what remains will need to operate with much greater efficiency. Since circa 80% of Sales & Marketing costs lie with the sales force, it is this area where significant productivity gains must initially be made. Examination of longer term productivity data from two sales forces illustrate some 40% of contact activity is on the least productive doctors. Targeting systems based on the Prospective Targeting® approach and correctly implemented, demonstrate average call productivity gains of 25%. Projecting the implications of this into a sales force downsizing exercise would return up to 5% to bottom line profits and theoretically this could, after government deductions restore upwards of 20% of lost company capitalisation. The relationship between Docs and Stocks is currently the main game and propter targeting has a real and unexploited operational contribution to make.

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