Healthy Skepticism Library item: 12092

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: report

G & S Research Inc
RepReview Pharma 2007 Insights from the Front Line: Sales Representatives and Managers
: G & S Research Inc 2007 Oct
http://www.repreview2007.com/RepReview2007_Synopsis.pdf

Abstract:

Study Synopsis

RepReviewSM Pharma 2007 is a primary market research study that examines the US pharmaceutical and biotechnology industry from the perspective of sales representatives and sales managers. Conducted by G & S Research in partnership with Pharmaceutical Representative magazine, the study reveals the
current state of the pharma/ biotech industry, as experienced by those on the front line.

Topics of exploration include physician/ rep interactions, selling resources and support, impact of direct-to-consumer (DTC) advertising and industry guidelines, training needs and compensation perceptions, career projections, and evolving perceptions of the pharma/ biotech industry.

While other market research taps into the views of physicians or company executives, RepReview is solely focused on the perspective of those in the field and their managers. These findings are relevant to industry stakeholders-the manufacturers, agencies, industry analysts, media, and more-to
better understand the current state of this industry from the perspective of those on the front line.

The full report is available-free of charge-for the 2007 study. The report includes an executive summary and 100 charts and graphs, representing over 150 metrics. Go to www.RepReview.com for ordering information.

The Current Sales Environment
Approximately 93,700 pharma/ biotech sales reps nationwide are competing for the time and attention of US prescribers.1 Pharma companies spend an estimated $14 billion on marketing to physicians; this includes meetings, detailing, journal advertising, and e-promotion.2 Optimal return on this
expenditure remains a top priority for drug companies.

Effectively leveraging these resources has become more challenging in recent years. As sales forces continue to expand and doctors are increasingly bridled with the business side of medicine, meaningful physician-rep interaction is getting more difficult to achieve.

A myriad of other industry conditions are impacting the overall effectiveness of sales reps and changing the rules for promoting medicine. Among them are the growing number- and allure-of generic alternatives for brands with expired patents, the availability of scientific information on the
Internet, public scrutiny of the pharma/ physician relationship, industry guidelines/ mandates, the “no see” office phenomenon, and the rising influence of managed care on physician and consumer brand decisions.

Moreover, R & D pipelines-light on potential blockbuster drugs-are dominated by specialty or niche products, which require entirely different messages, training, and promotion strategies than general practice products. RepReview 2007 reveals how these factors are affecting the day-to-day life of a pharma sales rep.

1 National Association of Pharmaceutical Sales Representatives
2 Pharmaceutical Executive, September 2007
…

Methodology
The study was designed and administered by G & S Research, a provider of sales force effectiveness market research to the pharma/ biotech industry. Recruiting and promotional support were provided by Pharmaceutical Representative magazine. The study recruited participants via a full-page advertisement in the June 2007 and August 2007 issues of Pharmaceutical Representative. Recruitment was augmented by contacting national sales representative associations with requests to forward
the survey information to their members.

Two complementary Internet surveys were fielded (one for reps and one for managers), and data collection occurred during the summer of 2007. The chance to win one of 80 $50.00 American Express® gift cards (through a random drawing) was offered as incentive for participation. Access to the aggregate results prior to their public release was also offered.

Representation
RepReview was completed by 205 respondents: 176 classified themselves as being in a sales representative role and 29 indicated they were in a management role. All four regions of the US, as defined by the Census Bureau, and over 50 pharma/biotech companies are represented in the study.
…

Key Findings: – Respondents are a combination of primary care and specialty reps, covering a wide variety of pharma/ biotech companies (50 plus). – Time with physicians is critical to reps’ ability to deliver brand messages, but this time is under great pressure due to the proliferation of reps. – Findings support a relationship between physician perception of a rep and amount of time that rep can talk to them about the lead brand. Samples are critical, but when relied on solely, they don’t necessarily equate to more time with the physician. – Generally, respondents are satisfied with the support they receive from their own organization, although there is room for improvement in terms of Marketing’s awareness of “what’s going on” in the field. – More than half of the respondents promote a brand that is advertised directly to consumers. Those that do overwhelmingly view the impact of DTC advertising on their sales results favorably, as they perceive it to help them achieve sales growth though increased awareness and patient traffic. – The Pharmaceutical Research and Manufacturers of America (PhRMA) code is most cited by both reps and managers as the external set of guidelines/ regulations that most negatively impact job performance. – The survey shows some misalignment between reps and managers in terms of perceived training and educational needs of reps. While the majority of both reps and managers believe rep compensation is fair and/ or competitive, a sizeable minority disagree. – Representatives indicate great respect for their employer, but perceive a decline in public opinion of the pharma/ biotech industry overall.

Conclusion: The abundance of reps and growing restrictions on meaningful physicianrep interactions are making the sales job more challenging for all.

Notes:

Full report available free from www.RepReview.com