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INTRODUCTION<br />

When the Going Gets Tough,<br />

the Tough Get Incentives<br />

Sibyl Shalo, SENIOR EDITOR<br />

Investment in pharma sales force productivity pays for itself.<br />

Ken Lenoci had a tough job. In 1994, as a sales rep<br />

for A.H. Robins, one of Wyeth-Ayerst’s late-1980s<br />

acquisitions, he worked hard just getting his foot<br />

in doctors’ doors, not to mention jumping office staff<br />

hurdles. I spent a day pounding the pavement with him<br />

when the PR agency I then worked for launched<br />

Wyeth’s newly approved antidepressant Effexor (venlafaxine).<br />

Starting with only a handful of data and a<br />

couple of medical journal articles made all of our jobs<br />

more challenging, but it was Lenoci and his colleagues<br />

in the field who had it the worst. Although his territory<br />

included some of the “early adopters,” psychiatrists<br />

who had begun prescribing Effexor after reading about<br />

its clinical trial successes in Europe, there were many<br />

more doctors who weren’t willing to try something new.<br />

As the day wore on, the grind wore on me—in and out<br />

of the cramped company car, in and out of stuffy waiting<br />

rooms, in and out of offices in which the only conversation<br />

Lenoci had was with a receptionist shaking<br />

her head behind a pane of glass. My heart went out to<br />

him every time his efforts to educate were thwarted, but<br />

Lenoci had a thick skin and shrugged it off, eager and<br />

ready for his next customer. I returned home with a new<br />

appreciation for pharma sales people, relieved that I<br />

wouldn’t have to repeat the experience and motivated<br />

to help our client support its reps as they toiled in the<br />

field.<br />

Nearly a decade later, I imagine that, in some ways,<br />

Lenoci’s job is easier: He’s had nine years to strengthen<br />

the relationships he worked so hard to cultivate back<br />

then. But it’s much more likely that his job has become<br />

even more difficult. He now competes with more than<br />

double the number of pharma sales reps than he did in<br />

8 May 2003 Pharmaceutical Executive Supplement Successful Sales Management www.PharmExec.com


INTRODUCTION<br />

the mid-1990s. That’s just one of the challenges that<br />

make today’s pharma selling environment so hostile.<br />

Reps have also lost some of the tools they once had<br />

to gain physicians’ attention.<br />

The PhRMA Code for Interaction with Healthcare<br />

Professionals eliminated reps’ ability to compensate<br />

doctors for their time. Ironically, the pharma industry<br />

sought to repair its damaged relationship with the<br />

medical community by adopting the code, but as<br />

Charlene Prounis describes in “What Doctors Want,”<br />

many doctors don’t see it that way. According to her<br />

research, they don’t appreciate the code and believe<br />

that it will drive an even deeper wedge between them<br />

and reps.<br />

On top of that is reps’ concern that the growing<br />

use and popularity of e-detailing may soon put them<br />

out of their jobs. And although pharma companies<br />

and their suppliers dismiss that concern, saying that<br />

e-detailing augments rather than replaces faceto-face<br />

meetings, the question on everyone’s mind is:<br />

Can the industry sustain the growth of a sales force<br />

that already has more than 80,000–90,000, reps on<br />

the street?<br />

Authors of articles in PE’s first sales management<br />

supplement answer with a qualified “yes,” arguing<br />

that companies must<br />

■ improve the way they recruit and hire<br />

salespeople<br />

■ better understand all prescribers, not just<br />

physicians<br />

■ learn from other industries ways to motivate<br />

sales reps<br />

■ energize sales training meetings and programs<br />

■ equip sales reps with tools that help them make<br />

the most of every minute.<br />

Divided by subject into three sections—relationships,<br />

incentives, and training and tools—the pages<br />

ahead reveal emerging trends in the doctor–sales rep<br />

relationship, showcase companies’ real-world sales<br />

experiences, and recommend ways to help sales forces<br />

overcome obstacles to achieve the highest levels of<br />

success.<br />

This month’s cover story, “Reason to Achieve,”<br />

represents PE’s foray into some uncharted territory—<br />

the intersection of pharma and incentive marketing.<br />

Although the relationship between the two isn’t new,<br />

Erika Rasmusson’s report shows that pharma companies<br />

are making increased use of merchandise, travel, and<br />

gift certificate rewards to galvanize reps into action<br />

and keep them motivated. That trend surprised some<br />

incentive program providers who misunderstood the<br />

restrictions stipulated by PhRMA’s code; they thought<br />

it applied not only to incentives for doctors but incentives<br />

for pharma company employees as well. Other<br />

incentive marketing companies know, from the growth<br />

of their pharma sector business, that industry is<br />

rewarding reps for their achievements in a crowded<br />

and harsh marketplace.<br />

Thus, pharma sales managers’ challenge is as<br />

difficult as reps’—to find new ways to support their<br />

field force in the face of tumultuous mergers, mounting<br />

financial pressures, and burgeoning competition in most<br />

therapeutic categories. But there’s hope that pharma<br />

can still attract and keep good sales people. In his<br />

article “Every Rep a Star,” Garry O’Grady explains that<br />

optimizing sales force productivity is more about quality<br />

than quantity. And in “Detail Diagnosis,” Michael<br />

Kessler, MD, and his colleagues illustrate a technique<br />

that uses real doctor–rep interactions to evaluate reps’<br />

performance.<br />

Carrying the bag in 2003 also requires 21st century<br />

equipment and training. In “Tomorrow’s CRM,” Len<br />

Weinstein and Kim Ramko paint a picture of tomorrow’s<br />

customer relationship management applications and<br />

capabilities. In “Training for Peak Performance,”<br />

Christine Creter and Dow Summey recommend strategies<br />

for making training meetings both memorable and<br />

fun. In “Bring in the Reinforcements,” Lyn O’Connor Vos<br />

suggests that contract sales organizations have become<br />

more valuable as their involvement in companies’<br />

marketing plans expand. Finally, in his column<br />

“Neglected Prescribers,” Steven Tarnoff asserts that for<br />

pharma marketing plans to succeed, sales forces must<br />

find ways to sample high-prescribing nurse practitioners<br />

and physician assistants.<br />

The good news for Ken Lenoci, wherever he is now,<br />

and for his comrades and competitors in the field, is that<br />

ramping up spending to prepare, train, motivate, and<br />

reward reps for their perseverance is good business.<br />

If sales managers do those things well, the investment<br />

will pay for itself. ■<br />

9 May 2003 Pharmaceutical Executive Supplement Successful Sales Management www.PharmExec.com

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