Healthy Skepticism Library item: 11963

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Study Indicates Pharma’s Selling Field is Overgrazed
PharmaLive 2007 Nov 2
http://pharmalive.com/news/index.cfm?articleID=489794&categoryid=43

Full text:

“Too many reps” may be minimizing the impact of personal selling, according to a market research study by G & S Research and Pharmaceutical Representative

INDIANAPOLIS, November 2, 2007-Results from RepReview Pharma 2007 indicate that the number of pharmaceutical sales representatives now competing for prescriber attention is jeopardizing the effectiveness of personal selling-the signature approach of brand promotion for drug manufacturers. In fact, analysts suggest that the inaccessible-physician problem could be customers’ way of telling the industry that the current state of this system is not meeting their needs.

RepReview surveyed pharmaceutical and biotechnology sales reps1 along with sales managers to find out what’s really happening on the industry’s selling field. Conducted by G & S Research in partnership with Pharmaceutical Representative magazine, the research shows how sales people think and feel about their day-today responsibilities and the industry they represent; it also explores their challenges, needs, and expectations. In general, the research results verify what many healthcare professionals have either known or speculated for years-that a strong relationship between a sales rep and physician often coincides with better access to physicians and better market share.

Yet developing a bond with physicians is getting more and more difficult for drug reps due to a myriad of factors. Aside from the saturation of reps in the field, industry regulations, managed care parameters and productivity requirements, and declining public opinion of the industry are impacting the influence of sales reps.

The benefits for those who can earn the trust of physicians and forge a genuine bond are significant. Primarily, there appears to be a correlation between how a physician views a rep and how much time that rep gets. For instance, reps who classify themselves as Trusted Advisors (based on how they think they were perceived by the last physician they called upon) report more time with physicians than those who put themselves in the Sample Supplier category. In fact, more than half of the Sample Suppliers (52%) report talking to the physician for less than one minute; only 14% of Trusted Colleagues got so little time.

RepReview respondents point a collective finger at “too many competitive representatives take up physicians’ time” as the key culprit of their limited time with physicians. This perception is particularly strong among managers (versus reps) and those targeting primary care physicians (versus specialists).

One Most Significant Reason for Lack of Time See attachment for chart

The situation begs reference to Garrett Hardin’s “Tragedy of the Commons”-the social phenomenon of people pursuing short-term individual gains at the expense of the whole group. Much like the degradation of pasture lands by overgrazing, the potential long-term result of an over-taxed selling field is not promising.

In both examples, all who use the field are presumably trying to maximizing their yield. And since the costs and benefits of increasing the “herd” are unequally shared-the individual herder enjoys the advantages while all are burdened with the disadvantages-the rational course of action for an individual decision-maker is to add to the herd as often as possible. This being the optimal course for all, overgrazing and degradation of the field is the likely outcome.

That said, while the population of reps in the field is cited as the most prevalent obstacle for the pharma/ biotech sales force, it’s not the only one. RepReview indicates a range of other industry conditions are also taking a toll on reps’ effectiveness. Among them are a declining public opinion of the industry (primarily due to negative publicity/ media coverage and the cost of medication) and industry regulations, particularly the Pharmaceutical Research and Manufacturers of America (PhRMA) code. As well, stiffer competition from generics, the rising influence of managed care on prescribing decisions, and the “no see” office phenomenon were also identified as key challenges.

Nevertheless, reps indicate they are happy with their job. Roughly half of respondents named their own employer as the health care company they most respect, and about the same number named their own as the best sales force in the industry. Many agree that marketing is providing useful materials and training needs are, for the most part, being met.

Still, there’s no question: Sales people in the pharma/ biotech industry need to find new, creative, and ethical ways to address prescriber needs and preferences and thereby meet patient needs. How will the industry evolve to meet these challenges, and how will these changes affect patient care?

To weigh in on this topic and to access the research results and related resources, visit www.repreview2007.com. This publicly-available website has been designed to further explore topics related to the current and potential selling environment of pharma/ biotech industry. By generating critical debate and insight, this forum can help industry leaders develop practical solutions that address pressing issues as they evolve … and thereby benefit the industry as a whole.

1 RepReview 2007 Respondent Demographics: 205 unique respondents completed the RepReview 2007 survey. Mean number of years in pharma/ biotech industry: 9.2. Mean number of years with current employer: 5.4. Average Age: 37.6. All four regions of the US (as defined by the US Census Bureau) and more than 50 different pharma and biotech companies (of varying sizes) are represented. Data was collected June through mid-August 2007.

About G & S Research G & S Research provides difference-making market research and follow-up support to healthcare decision makers. With inside experience at top pharmaceutical and biotechnology companies, G & S Research helps clients engage internal groups in the research process and influence brand strategy. Visit www.gs-research.com for details or contact Jenny Brown, G & S Research media relations manager, at 317-410-2617 or jbrown@gs-research.com.

About Pharmaceutical Representative Pharmaceutical Representative is the pharmaceutical industry’s leading information source of sales insight and development. It provides the essential skills sales representatives need to maximize their access and value to healthcare providers. It also enhances the expertise of trainers and managers so they can support the professional growth of their sales force.