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Should pharma 'blow up' its sales model?

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Blow up your sales force... or at least consider it. That's the message today from Deloitte Consulting, which has analyzed pharma sales and come up with some conclusions designed to provoke thought (and no doubt media coverage). The most dramatic suggestion--the "blow up" solution-- involves replacing in-house, dedicated sales reps with a looser network of independent agents, a la the life insurance industry. 

Fortunately, that's not the only solution Deloitte puts forward. The firm also suggests focusing more on payers and their needs, rather than almost exclusively targeting doctors. And payers want better information, particularly on outcomes, which means more outcomes research. (Deloitte actually uses the term "comparative-effectiveness research.") Payers also want better customer service. Plus, they're looking for closer partnerships on providing cost-effective care. Can you say cost-sharing and pay-for-performance?

When drugmakers do target doctors, they should do a better job of it with more sophisticated data-management and analytics. In fact, more sophisticated data collection and analysis could help in a variety of ways, Deloitte posits. "Although pharmaceutical companies don't necessarily need to blow up their sales forces, in my opinion they have no choice but to fundamentally change how they sell their products," writes Deloitte's W. Scott Evangelista. "[P]harma companies should take action now to become more customer-centric in the face of diminishing returns on commercial spend." What say ye?

- see the Deloitte release
- check out Deloitte's report

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More stories about Pharma sales reps   Drug Marketing   pharmaceutical sales and marketing  

Comments

Deloitte's recommendations are definitely "outside the box," but it seems to me that the best win-win solution is to take most of the DTC advertising money, put it toward solid head-to-head product comparison studies, and sell on science.

Many other industries have figured out how to market highly technical products to sophisticated buyers using online sales channels. Pharma is a victim of their past success and keeps "polishing" the sales model -- rearranging deck chairs on the Titanic. Physicians are spending 8 hours/week engaged with medical inforamtion online -- much more time than they spend with sales reps all week. But pharma is just starting to realize this channel could be a much more cost-effective model -- go where your customer goes!! Engagement times are much longer and it is done on their customers terms generating higher sataisfaction than jamming uninvited reps into overburden practices. Every other industry has found how to make this channel work -- why not pharma?? Luddites??

Let's see, how many companies have failed due to consultants who have suggested business plans. These are experts with very little true experience in running an actual company. Let's not hire consultants that run companies to the ground and than CEO and board members have a scape goat. Let's make good judgement calls based upon expierence, let make these CEO's and board members earn their money. How about a wake up call!

reps sell very little product and are now route salespeople, and thus are pretty much a waste of money. doctors are controlled by hospitals, etc. and so very few independents; thus, doctors use generics and what is on formulary. they get report cards and get bonus or they could lose their job if not in line on usage. very few reps are needed and they would deal with hospitals,
formulary folks, hmo's etc.. a great job is over..

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