Ewan McDowall is Pfizer’s Sales and Operating Manager for Hampshire, Dorset and the Isle of Wight. Ewan spoke to Pf about the responsibilities and rewards of his job:  

What is your current role?

I am the Sales and Operating Manager for Hampshire, Dorset and the Isle of Wight. This means that I manage the promoted portfolio of primary care/secondary care business and managed entry for Pfizer in this area. This includes the sales managers and their representatives and the Account Management and Clinical Effectiveness team for this area.

What previous roles have you worked in?

I’ve done a variety of jobs for three different companies. With Lilly I worked as a medical representative, before undertaking a Key Account Manager role, followed by a marketing role in diabetes. With SmithKline Beecham in Dublin, I had a marketing/sales role in general medicines, including launching Avandia. With Pfizer in the UK, I held a New Product Development role (products 2–5 years before launch) and then was COXIB Team Leader in Marketing during the withdrawal of Vioxx by Merck. I then moved into the role I am in now.

What is the most interesting part of your job?

Every day is about maximising what we do with customers and focusing on our people to do so. There is nothing more interesting than helping develop people to do what they aspire to and helping them get to where they want to go.

What do you find most rewarding?

We are in an industry that genuinely improves and saves peoples’ lives. Not many people can say that

about their occupation. Our representatives provide healthcare professionals with data that can reduce people’s chances of dying, or that can genuinely improve their quality of life. Can you get more rewarding than that?

What is your biggest challenge?

We need to get even closer to our customers. We always strive to do this, but internal dynamics make it tough. We need to stop attending those internal meetings and start walking in our customers’ shoes more.

What advice would you give to someone aspiring to be a SAOM?

Breadth of experience is essential. You need a good business background, top performance management skills and also an ability to understand and work with customers. Personally, the best decision in my career was choosing to go and work in Ireland. You do everything yourself there, so I experienced another market/country and learned a lot about myself and my values as a manager.

Having worked for other large companies, what is it that keeps you at Pfizer?

The people: I genuinely like and respect the people here. I’ve made lasting friendships, which you can’t put a price on. Since speaking to Pf, Ewan has taken on the new role of South East London and Kent Business Director.

If your New Year’s resolution is to get a new job, Lucy Randle offers some top tips to help you navigate the dreaded assessment centre:

• Remember that you are not in competition with other candidates. It is common practice these days to recruit to a standard. All, several, one or none of you may be chosen. Selectors want to see how you react to and get on with others.

• It’s not just about what you contribute in terms of completing the task, but also the way you contribute to the group overall. You are not expected to be an expert on the subject under discussion or the task to complete. Selectors want to see evidence that you can make an effective contribution to the group.

• Play to your strengths and look for ways to make an effective contribution to the group by: including others in the discussions; organising people; making sure the group keeps to time and completes the task; checking details; and coming up with creative ideas.

• Think about the impact you can make in a group activity and the way you interact with and influence others. Keep contributions short and to the point, and raise them at the best time for maximum impact.

• Get involved, but do not dominate the discussion or talk for the sake of it. Avoid interrupting others to make your contribution, but do not let others interrupt you. Keep your non-verbal behaviour assertive. Use eye contact to get your contributions in. Make sure your voice can be heard, but don’t shout.

• Put your key points across and don’t let the discussion be dominated by others whose viewpoints may not be as valid as your own. However, if new information comes to light or better ideas are put forward, it’s OK to change your mind. Be honest and open about this, not apologetic.

• If you find yourself in the minority and time is pressing, it can be appropriate to ‘fall in’ with the majority rather than prevent the meeting from progressing. There’s a danger you will be labelled as awkward or negative if you take a stand on every issue. Assessors are very often as interested in the quality of your thinking and presentation as your particular point of view.

• Prepare for any second interview by thinking back to your first interview and the questions you were asked. Were there any questions you didn’t answer very well or better examples you could have used?

• Avoid thinking about the assessors; concentrate on the task in hand.

• Be pleasant with the people you meet. Wish other candidates good luck when they go for their interviews. It does get noticed.

• Keep up your end of the dialogue. Even if some of the exercises seem slightly unusual, they do have a purpose. Stay involved, enthusiastic and interested throughout.

• Ask for feedback and make sure you clarify what you have learnt.

• Perhaps most importantly, make sure that you are true to yourself – and who knows, you might even enjoy it!

By Omar Ali, Formulary Advisor, Surrey and Sussex Healthcare NHS Trust

Omar Ali continues a series of articles on how pharma sales representatives can influence the drug formulary.
In this article and the previous one, he discusses whether you and the NHS prescribers are really speaking the same language.

IN THE FIRST PART of ‘The language of prescribing’, we looked at the role of the new Area Prescribing Committees in approving drug formularies. These committees are potentially much more influential than the GP practices on which representatives have tended to focus. As well as ensuring that new drugs are safe and effective, the Area Prescribing Committees assess the impact of new drugs on the local health economy. One major cause of failed communication between pharma companies and prescribing advisors is that they measure prescribing indicators in different ways. So how can representatives bridge this language barrier?

The Berlitz Guide to Visiting Foreign Destinations
(such as PCT Prescribing Advisors)

• PACT (Prescribing Analysis and Cost) – this is the data that forms the basis of all our prescribing analysis within the PCT. It’s very sensitive and reliable, and provides data down to each GP or nurse and what they prescribe. There are two paper reports (PACT Standard and PACT Catalogue), and now ePACT provides electronic reports that have become essential in today’s fast-paced world of data management.
  
  

• PACT Standard – this is a paper report issued automatically to all GPs four times per year (each quarter ending March, June, September and December). It contains white pages (quarter prescribing analysis) and blue pages (central pages highlighting a particular aspect of prescribing that is of particular importance, a key focus or issue of significance at the time). These blue pages will take a national theme, show the trends and remind prescribers of their key priorities. The last page of this blue report contains comparative data on how a specific practice’s prescribing compares with that of others within their PCT – and this is done within each therapeutic area.

  The PACT Standard is worth remembering: if you want to highlight the fact that your GPs are spending a fortune on competitor Drug X when they could be using your cost-effective Drug A, these ‘quarterly months’ are fairly significant – maybe not dissimilar to your own quarterly figures. They (i.e. GPs, practices and PCTs) abbreviate information, so that their prescribing can be easily compared with that of others – which contains a certain competitive element. Likewise, pharma companies will often compare one brick against another, or one region against another – so while you are all from the same company, you nevertheless become very nosey about where you stand when compared to the others. It’s human nature . . .
  
  

• PACT Catalogue – this report is not sent out automatically, but at the request of the individual GP. When requested, a full catalogue/inventory of prescriptions issued is provided, and can be made available for any set of consecutive months within the last 24 months. The catalogue can be tailored to individual preparations, BNF categories or a mixture of both. The GP will be told the total number of items and the total net ingredient cost (NIC) of the prescribed products.

  The NIC is a very important measuring tool for prescribing advisers. It is the basic price of the drug listed in the Drug Tariff (in the absence of a Tariff price, the manufacturer’s price is used). Remember that the Tariff price is what the NHS is reimbursed with for prescribing the drug, and is based on a ‘national’ price available for obtaining the drug.

Money and medicine

The following list is an example of the monitoring of GP practice prescribing:

These costs in themselves need some adjustment before we jump to conclusions. However, given the Defined Daily Doses or DDDs and Average Daily Quantities or ADQs along with the tariff prices of the statins, we can evaluate the numbers of patients on these drugs. For this practice comparator, I can assure you that the numbers of patients each practice has on a statin is similar. So you can see why a prescribing advisor will be targeting Practice 2 with ‘cost issues’. But what is interesting is the question of effectiveness. Notice that I don’t have a table of ‘events’ or of ‘hospitalisations’ particularly due to cardiovascular disease. So the ‘marketing’ arguments will happen in isolation. They occur around a different table and have now become very contentious.

And what is even more sensitive is the fact that ‘prescribing incentives’ are still very much alive and kicking. There was once a lay belief, particularly within pharma, that when the GMS contract had paid GPs to reach a cholesterol target (or any target for that matter), the prescribing incentives would not really have an impact. This is as far from the truth as can be imagined. Not only are prescribing incentives now paying directly for switching branded products to generic items, but the savings are given back directly to the GPs to keep and spend on what they want (within reason).

This is further enhanced by the fact that the prescribing budget overspend/ savings is now part of the ‘previous out-turn’ budget within practicebased commissioning budgets. When these are ‘linked together’ (as with an accumulator in betting) the rewards are substantial, but the GPs need to hit all the linked items. So, for example, the ‘accumulator’ may be % generics + % antibiotic prescribing reduction + % statin switch to simvastatin + %A2A:ACEI ratio, with each having a set limit that is needed.

Wow! I have got a headache! And so, I expect, does the GP you are about to call on . . .

OMAR ALI is the Formulary Development Pharmacist for Surrey and Sussex Healthcare NHS Trust and is a PCT Formulary Adviser to 2 PCTs. He is a lecturer on the MSc on Pharmacy Practice at Portsmouth University and is also an adviser to three Drugs and Therapeutics Committees in the South of England. Omar is a National Speaker in the UK (cardiovascular, diabetes, mental health) and is an Executive Board Member for the National Obesity Forum. He can be reached directly on alipha@aol.com

Tim, our representative speaking ‘from the field’, gives his light-hearted angle on the day-to-day issues faced by medical sales professionals.

Predictions for 2006

I don’t usually make predictions. However, through a series of dreams the night after each Christmas party I attended last year, I have had some insight into developments for pharma reps in 2006. I can now accurately predict what might happen in the coming months.

In February this year, a new car will be launched to cater specifically for the sales rep market. Modelled on the ‘Tardis’, the new vehicle will be the first to contain a fully functioning office. Two desks and chairs, wireless computer technology, a small stationery cupboard and a pot plant are included as standard, with optional extras such as a kitchen area and leather carpets also available. Unfortunately you will have to provide your own secretary. The car has yet to be given a name, but is currently known as the ‘Reptra’ and will have a list price of approximately £125,995.

The summer will see dramatic changes in the pharma industry when a major research-based company reveals a new drug that will turn 21–25 year old science graduates or former nurses into single-minded and faultless medical reps, without the need for bonus schemes and hypnotism. Benefits of the ‘Super-Rep Pill’ (SRP) for the ‘patient’ are improved sales, higher call rates and an extremely well-developed sense of smugness. The side-effects are a minor concern, the most common being elevated levels of superiority and delusions of grandeur. A small number of patients will experience bouts of humility due either to raised irony levels or the presence of a manager.

However, these are mild and transient and should not be a cause for concern. If symptoms continue the ‘patient’ should report the problems

to their field coach, who will arrange for ‘retraining’. The SRP should only be used in ‘patients’ with moderate to severe sense-of-humour failure.

In response to the SRP, concerned Primary Care Trusts will develop robots to perform the function of deterring medical reps. The ten-foot high metallic ‘Overlords’™ will have the capacity to see up to fifty reps per day, and will be impervious to both logic and pretty young females in short skirts. When faced with a cast-iron argument why the PCT should use a drug, the androids will simply threaten to kill you until you leave their office.

I have edited out the more far-fetched elements of my dreams, and believe that what remains must be pretty close to the truth. If my predictions are correct it’s going to be an interesting year in pharmaceuticals, and one we should all look forward to being a part of.

Happy New Year to you all.

By Mark Murphy, The Portland Partnership

If you apply for a new job this year, you will probably need to spend some time at an assessment centre. Mark Murphy explains how to turn an apparent trial into a valuable opportunity.

WHETHER it’s through your own choice or as a result of the many restructures that have taken place within the industry in 2005, you may now find yourself in a position where a change of employer is on the cards. While many of you may have been through the often-dreaded assessment centre approach to selection, an equal number of you may have successfully avoided it – until now! The recent wave of restructures means that there are fewer positions available, so the assessment centre approach will be more important than ever as a means of identifying the ‘best’ person for the job.

What is an assessment centre?

For the uninitiated, this is a method of selection (often referred to as the ‘multiple assessment’ approach) that involves a variety of different ways of assessing a candidate’s skills and abilities. Over recent years, this approach has gained wide acceptance as a systematic and rigorous means of identifying behaviour.

Why do employers use assessment centres?

There are a number of reasons why this approach is taken:

• It gives employers an opportunity to see you undertake activities and exercises that relate to various aspects of the job for which you are applying and assess your competence against these (which they could not gain from interview alone), and consequently is a great way of predicting future performance.

• It allows a number of candidates to be assessed at the same time, which reduces costs and is also a good way of seeing how potential new employees might work together.

• It provides a much greater degree of objectivity, and as a result reduces any bias or favouritism that could otherwise occur through interview alone.

The cost of an inappropriate job offer can be disastrous for both sides. You may not possess the required skills and abilities, or you may feel that this is not the type of company where you want to spend the next chunk of your waking life! The following example highlights what it can cost an employer if they get it wrong:

At the end of the exercises you get to leave, as your job is done – whereas the assessors move into what is often referred to as the ’wash-up’ session. All the assessors are brought together and asked to explain their marking of your performance, so that consistency can be ensured. All of the results are reviewed and the next step is decided on – which might be to arrange a further meeting with you or to offer you employment, depending on how their process has been structured.

Following this, you will be contacted quite quickly to be made aware of the decision. Normally, if you are successful you will receive your feedback as part of your induction process. If you have not been successful, you will be given feedback either at this time or at an alternative time arranged with you.

What’s in it for me?

In short: feedback. Going through an assessment centre provides you with a fantastic opportunity to have an independent assessment of just how well you are doing. We all have our blind spots, and this is a great way to find out what yours are so that you are in a better position to work on them in the future. If you were to go to a career coach for this type of assessment, it would cost you a lot of money – whereas here, you are getting it for free!

As I mentioned earlier, if you are successful you will be spending a great deal of your (hopefully!) waking hours with this company. So not only is it is essential for the organisation to ensure that the right candidate is identified for the role, it is especially important for you to check them out too – and this is your chance. Ask yourself how much notice they gave you of the assessment. What did they tell you about it in advance? How smoothly did the arrangements go? What were the assessors like: were they people with whom you felt comfortable and could relate to, or not? How well did they manage the process, and how prepared were they? How valid do you think the exercises were? Did they offer you feedback? Did they explain the next steps? Did you come away from it with the view that it really had been a two-way process? Take time to weigh everything up before you accept the job.

This does not take into account any costs related to employment claims that could arise later if the ending of the employment relationship goes horribly wrong! As you can see, it is in everyone’s best interests for an employer to invest the money up front to enable them and you to make a joint decision about whether or not the job and the company are right for you.

What happens at an assessment centre?

The key to a successful assessment centre is in its design – something that you have no control over. However, hopefully the employer has thought very carefully (or taken advice) about what goes in and why, to enable the assessment centre to serve a useful purpose. Any exercises that are included should make sense to you in terms of why you are being asked to do them!

The type of exercises will vary according to the role being assessed. But as a general guide, some of the more commonly used activities are:

• Interview – normally a structured, competency-based interview to gather information against key criteria.

• Presentation – a simulation of a briefing to a relevant audience group.

• Role play – normally a communication exercise with one-to-one interaction, such as a sales or coaching simulation.

• Group exercise – a team interaction exercise based on given information.

• IT or PC assessment – normally used to assess your basic IT literacy.

• Letter or memo writing – a written problem analysis related to a work-based issue.

   

• In-tray or inbox – a simulation of a job-based in-tray or inbox, requiring action and prioritisation.

• Psychometric assessment – standardised measures of personality, interests or motivation.

• Verbal and numerical reasoning – standardised assessments of your cognitive ability.

• Overnight social interaction – if your assessment centre is spread across two days, how you interact socially with others may be observed, particularly if the role for which you are applying will require you to spend time away with your team.

A good employer will tell you if you are being observed socially.

How does it all work?

It may all sound a bit mystical to you – and to be honest, you probably don’t need to know how it works. But since you’ve asked, it’s actually quite straightforward. Prior to your attendance, all of the assessors will have attended a briefing session to take them through their role as an assessor, the nature of the exercises and what they are designed to achieve, the competencies and behaviours that are to be assessed and how these should be scored.

Each exercise is scored against the competencies – for example, one exercise might assess three, another four and a third a different four. As you move from one exercise to another, you will be assessed by a different assessor who will score you in the same way. At the end of each exercise, your score sheets will be passed to the assessment centre co-ordinator, who enters them in a master spreadsheet.

What can I do to prepare?

• Make sure that you fully understand what the role is. If you can, get a copy of the job description and the competency/behavioural profile. That way, you’ll have a much better understanding of what they will be looking to see you demonstrate.

• Be yourself. While it helps if you know what they are looking for, it is essential that you are genuine. Don’t try to fake it, as they will be able to see right through you.

• If you have a disability and therefore might need some adjustments made to enable you to access the venue or complete the assessments, it would be advisable to contact the assessment centre co-ordinator in advance so that you are not put at a disadvantage.

• Numerical and verbal reasoning tests are widely disliked by applicants. I’m not sure it’s just an automatic reaction to the word ‘test’ or is down to the plain fact that these tasks can be challenging. The best way of preparing for them is to do crossword puzzles, SuDoKu, logic puzzles and anything that is mathematically challenging without a calculator, in order to stimulate that part of your brain that may have become a little lazy. (Don’t panic about the calculator, as normally you are permitted to use one for this type of assessment.) The tests are designed to assess your ability to reason with numbers. Usually you will be given a couple of practice questions first and then some feedback on how you did, so that you can see how the questions work. The key is to work quickly but accurately: it is better to attempt fewer questions and get them right than to attempt all of them and get them wrong, as you will be scored only on the number of correct answers.

• Personality questionnaires are where, for many, the mystique really lies. Well, let’s burst that bubble. They are straightforward self-report inventories (often done in advance via the Internet). They usually contain statements about how you would act, think or feel in different situations. You are asked to indicate the extent to which each statement applies to you. As personality is unique to each individual, there are no right or wrong answers – so don’t try to fudge it! Your initial reaction is likely to be the most honest. A profile is pulled together that indicates against each area whether you show a greater, lesser or the same degree of preference as most people. It does not measure your ability. For example, a questionnaire might ask questions relating to social confidence, and your scores may indicate that you have a weaker preference than most for being in social situations where the people are unknown to you. However, if you then look at how you interacted with others during the assessment centre, you may well have been very sociable. The conclusion is: if you had the choice you would prefer not to socialise, but if you have to you can!

• Stick to the timings. An assessment centre is a logistical nightmare, so make sure that you are ready to start each exercise on time: you won’t be allowed to run over. However, if you get off to a bad start, ask whether you can start again.

• If you need to wear them, don’t forget to take your glasses with you.

• And finally, remember that the employer is not trying to catch you out, but rather to catch you doing it right!

IT’S DIFFICULT TO READ a newspaper or watch the TV news without finding some reference to the anticipated avian flu pandemic. Coupled with the pre-existing demand for human influenza prescriptions, it means that sales of Roche’s Tamiflu are soaring. This, in turn, is helping to drive the 13% annual growth that the herpes and respiratory antivirals market has enjoyed since 2000. In 2004, this market generated sales worth $2.2billion.

However, a new report from independent market analyst Datamonitor indicates that in the long term, RSV antivirals and vaccines may emerge to challenge the current heavyweight class, the herpes simplex/varicella zoster (HSV/VZVs) and cytomegalovirus (CMVs) anti-virals.

The dominance of GSK and Roche

The herpes and respiratory antiviral market has been dominated by the European pharma companies GSK, Roche and Novartis, whose combined sales accounted for 86% of this market in 2004. Competition between these players is limited, with GSK dominating the HSV/VZV and Roche the CMV market. Novartis has a modest presence in the HSV/VZV market. However, Novartis could pioneer the respiratory syncytial virus (RSV) antiviral market through the launch of A-60444, a small molecule inhibitor it is developing in collaboration with UK Biotech Arrow Pharmaceuticals.

GlaxoSmithKline, the market leader in both infectious disease (ID) and herpes and respiratory antivirals, first established itself in the HSV/VZV market through the launch of Zovirax (acyclovir) in the UK in 1981. The company suffered a major blow following the drug’s patent expiry in the 1990s, as Zovirax had by then achieved blockbuster status and represented an important source of company revenue. However, these losses were partly offset by the UK launch of the follow-up drug Valtrex (valacyclovir) in 1995. Due to its improved bioavailability, Valtrex has a significantly more convenient dosing regime than its predecessor: it is taken once or twice daily, whereas Zovirax is taken three to five times daily. Datamonitor infectious diseases analyst Dr Brigitte de Lima comments: “Building on the Zovirax legacy and benefiting from GSK’s global presence, Valtrex rapidly ascended to market leadership. In 2004, Valtrex achieved blockbuster status, generating $1billion and accounting for 50% of total herpes and respiratory antiviral sales.”

The impact of effective life cycle management is also reflected by Roche’s achievement and maintenance of market leadership in the CMV market. Roche first gained access to this market when it acquired Syntex – and concomitantly the company’s CMV antiviral, Cytovene (ganciclovir) – in 1994. In a similar way to GSK, Roche largely prevented the sales erosion and generic incursion of ganciclovir following the drug’s patent expiries between 2002 and 2005 in the seven major pharmaceutical markets (UK, US, France, Germany, Italy, Japan and Spain) by launching the follow-up product Valcyte (valganciclovir).

While Valcyte benefits from oral availability for the entire course of treatment and is also associated with higher efficacy, a crucial factor underlying the effective switching of patients from Cytovene to Valcyte was Roche’s heavy promotional expenditure for the latter drug in the months preceding its launch. As a result, its sales have been growing at an average annual rate of 100% since its first launch in 2001, and accounted for an impressive 87% of the CMV market in 2004.

The rise of generic herpes antivirals

Generic incursion in the herpes antiviral market has so far remained low, mainly because few commercially attractive drugs have so far lost patent protection. In 2004, less than 10% of sales were due to unbranded drugs – and 82% of these were accounted for by generic acyclovir, the drug that still enjoys the highest volume use.

In the near future, generic presence is bound to increase significantly with the expected US patent expiries of key HSV/VZV products: Valtrex in 2009 and Famvir (famciclovir) in 2010. Valtrex’s US sales are expected to exceed $1.5 billion in 2008. Based on the effect that patent expiry had on Zovirax sales, Valtrex might lose as much as 85% of its US sales to generics over a threeyear period, says Dr de Lima. “As a consequence, generic market share in the HSV/VZV market is expected to escalate from 10% in 2004 to over 50% in 2014. Novartis’s HSV/VZV product Famvir is expected to follow a similar fate.” Long-term growth in the herpes market will depend on CMV antivirals.

A potential new challenger to Tamiflu

Significant growth is also expected in the respiratory antiviral market. In the short term, the respiratory market will grow due to soaring sales of Tamiflu (oseltamivir). While human influenza prescriptions alone might push Tamiflu sales close to the $1 billion barrier by 2014, significantly more sales may result from global stockpiling for the anticipated avian flu pandemic. Dr de Lima comments: “Since Tamiflu has been widely preferred to rival drug Relenza (zanamivir, Biota/GSK) by most governments based on its oral availability, Tamiflu sales due to stockpiling might potentially exceed $2 billion.” Some experts predict that the worldwide stockpiling market

In the long term, the respiratory antiviral market may witness the introduction of the first-in-class RSV antiviral, A-60444: Arrow’s/ Novartis’s small molecule RSV inhibitor, which is currently undergoing Phase II clinical trials. RSV, a disease associated with a high unmet medical need, is currently managed through either prophylaxis with monoclonal antibody therapy or treatment with Valeant’s inhalable ribavirin (marketed as Virazole). However, due to cost and toxicity issues, drug therapy is currently reserved for high-risk groups. Given the high incidence of RSV, especially in infants, the elderly and the immunocompromised, the market potential of an effective RSV antiviral may be vast.

“Datamonitor believes that A-60444 has potential to achieve blockbuster status, provided the pricing strategy encourages the drug’s widespread use in all RSV patients, not just in those at high risk of severe complications,” Dr de Lima says.

The vaccine alternative

A further factor in the assessment of the herpes and respiratory antiviral market is the increasing shift of focus from post-infective to preventative therapy, most notably vaccines. Datamonitor has identified at least 17 vaccines in clinical development. “A big question mark remains over whether antivirals will be able to coexist alongside prophylactic vaccines in a market increasingly focused on disease prevention,” Dr de Lima says.

Consistent with its already strong presence in the overall vaccines market, GSK is one of the leading developers of herpes and respiratory vaccines: products such as Simplirix (for the prevention of genital herpes) are included in the company’s pipeline. Further reflecting GSK’s growing presence in a market that the company expects to triple or even quadruple by 2015, GSK recently purchased Corixa (a developer of vaccine adjuvants), agreed to acquire the Canadian vaccine developer ID Biomedical, and bought Wyeth’s vaccine plant in Marietta (Pennsylvania) for the development of seasonal and pandemic flu vaccines.

The bigger picture

Datamonitor’s report ‘Commercial Insight: Herpes and Respiratory Antivirals – Leaders Rise and Fall’ provides an in-depth overview of the current herpes and respiratory antiviral market and its future outlook. It covers HSV/VZV, CMV, influenza and RSV, with a focus on both the clinical and the commercial factors driving product differentiation and uptake.

Achieving ‘customer intimacy’ increasingly depends on synergies between field force and head office.
Market segmentation holds the key to achieving this.

WE HAVE ALL BEEN on the receiving end of wacky ideas from marketing departments, often disguised as strategies with names like ‘branding’, ‘customer relationship marketing’ or ‘one-to-one marketing’. Surely ‘segmentation’ is just the latest in a series of fads designed to keep marketers amused while disrupting the daily activities of the field force? This could not be further from the truth: our research into this area unveils some compelling lessons for the field force and marketers.

First, let’s clarify what is meant by segmentation. Most representatives readily accept the fact that all customers are not equal, whether in prescribing potential or in attitude. Often it is these differences that inject variety into the role. Segmentation is simply the ability to identify and capitalise on differences by serving groups of similar customers based on their needs.

Despite the furore over future models of the sales force, medical representatives operate at the critical customer interface. Therefore any development or adaptation of customer targeting processes must involve them or be doomed. Customer segmentation presents real opportunities to field representatives as well as head office strategists. It is an ideal opportunity to get closer to customers and deliver on the much-discussed ‘customer intimacy’ mantra.

Segmentation in action

The origin of a segmented approach to marketing goes as far back as the 1950s, and is a tried and tested business principle. For example, the washing powder market naturally segments itself around the benefits sought (e.g. whitening, freshness, bleaching, softening, stain removal). These are segments based on the needs of customers, and an attempt to segment this market based on usage or demographics would be far less effective.

How does this transfer to useful guidance in the pharmaceutical market? Remember the earlier point that all customers are not equal in terms of their needs – so meeting these needs effectively requires different marketing mix elements: differentiated messages, meetings and promotions.

Historically, the industry has not tended to utilise this grandfather of all marketing principles. However, it is increasingly being adopted by pharma executives as the mature market impacts. Reluctance to use it usually boils down to market peculiarities and the difficulty of implementing such strategies.

Our research has shed some light on this problem. Representatives regularly differentiate between their customers based on their needs. Here is a simple example of how one experienced representative segmented her customers in the field for more effective service delivery:

• Clinical Clerks base their decisions on published clinical information that involves an in-depth look at head-to-head studies. These customers respond to engagements focused on clinical benefits and hard facts.

• Hungry Harrys (aka the Munch Bunch) enjoy the social scene and getting together with colleagues for lunch and evening meetings. Clinical discussions are more productive over a meal after a meeting, and ensuing decisions are influenced by relationships.

• Caring Joes always consider what’s best for the patients, so decisions are always viewed from the patient’s perspective. Engagements with these customers are productive when patient benefits are emphasised.

• Me-Mes are interested in what’s best for them, so patient benefits are only a turn-on (or relevant) if linked to tangible benefits for them. Clinical benefits are best appreciated if they result in a gain for them, such as more time.

This representative employed different tactics in the field according to which segment she felt the customers were in. The appreciation of the underlying factors that made the customers tick enhanced the relationshipbuilding process and allowed resources to be deployed appropriately. Most representatives and marketers recognise the customer segments described above or similar ones – so where does the friction come from where implementation is concerned?

The wages of synergy

The knowledge that goes into identifying these segments must come from the representatives in the

field as well as the marketers in head office. One without the other will result in a sub-optimal view of customers. We know that segments are not a ‘one size fits all’ proposition: the approach varies according to therapy area, sales force size, culture and other market peculiarities. Segmentation will not give a definitive perspective on individual customers, but on clusters. It is a scientific art rather than a pure science. Accuracy is critical at a cluster level (groups of customers) rather than an individual level.

Alignment of sales and marketing means that marketers can design relevant programmes and core messages to serve specific segments of the market. Insight into the traits of each targeted segment will lead to innovative and differentiated activities to engage the customers. The field force can enhance relationships with customers through the delivery of bespoke engagement plans based on the needs of each segment. Research by Agnito has demonstrated a dramatic improvement in time spent with customers when a segmented approach is deployed.

Making it happen

Given the general agreement that market segments are real and important, is there a way to bridge the gap between field and head office? Marc Wells, Brand Manager at Lilly, offers a perspective: “Good attitudinal-based customer segmentation holds the key to effective communication of key messages and ensuring the most appropriate use of resources to impact on uptake and ultimately maximise ROI. Segmentation lives in the minds of everyone touching the brand and forms the basis of all decisions, from channel selection to message communication. It has been an extremely worthwhile exercise and has helped us become a lot smarter in what we are doing.”
Effective segmentation depends on:

• Evidence base – although the data utilised are unlikely to be perfect, the robustness of the evidence that supports the approach must be communicated.

• Training – due to the inevitable changes in practice, training departments need to implement relevant programmes to ensure that all involved are clear on the actions required and the benefits.

• Involvement – the old adage ‘No involvement, no commitment’ is true here. Representatives must be involved in data collection, testing and research. This will ensure that their views and concerns are captured and can be accommodated in the implementation plan.

• Rationale – mature markets, decreasing access and customer dissatisfaction are some of the reasons why segmentation offers a route to competitive advantage. Assume nothing: the field must be told why!

• Simplicity – the strategy must be built around the goals and needs of the field force. Keep it simple to make it work! Resources and capabilities must guide the segmentation process, and the outcomes must be actionable.

• Reinforcement – naming the segments and using these names in ensuing communications will reinforce the message and demonstrate commitment from head office, as well as injecting an element of fun into the process.

• Share success – early successes at a segment level should be communicated to reassure any doubters.

Segment or die

When applied properly, segmentation represents a win-win scenario. Sales teams benefit from an improvement in their contact and interaction with customers. Marketers can deploy relevant strategies to complement the field force’s efforts. The impact of this alignment on performance should not be underestimated. Given ongoing issues with access, time with customers and slowdown in product introduction, the case for adopting segmentation is compelling for both sales and marketing teams. Segmentation will ensure that the needs of customers, workforce and organisations are met.

The path to a segmented and successful future is laid out. Those yet to adopt it must get up to speed or suffer the consequences. In an unforgiving environment, we all need to adapt in order to survive. The success of market segmentation depends on the effective involvement of the field force.

In December Novartis Pharma AG
was applauded as the biggest winner
in the 2005 Scrip Awards, winning:
Pharma Company of the Year; Best Overall Pipeline;
Licensing Deal of the Year.

Scrip is one of the top pharmaceutical and biotech trade publications, and this recognition further highlights the leadership position of Novartis in the pharmaceutical industry.

It is no surprise then that Novartis Pharmaceuticals UK Limited is adopting an innovative approach to its commercial operation with the launch of a new business account model which will allow for decentralised decision-making and localised resourcing to meet National Health Service (NHS) needs. In an open letter to Pharma Field, Huw Tippett, Head of Sales and Managed Care for the General Medicine business explains the dynamics behind the company’s thinking.

‘To all sales managers and account managers working in today’s pharma industry . . . are you frustrated by the lack of the flexibility you need around you to be able to effectively tackle local NHS decision-making and so release your full potential? Like you, we see the many changes in the healthcare environment as the perfect reason for a change in the way business should be conducted with the NHS.

Some of you may already have heard about our dynamic new model for business within General Medicine at Novartis Pharmaceuticals UK Limited. Since early 2005 we have been comprehensively analysing the current and future planned changes in the NHS and how Novartis should best respond to the increasing influence of organisations such as Primary Care Organisations (PCOs) and Strategic Health Authorities (SHAs); new prescribers, including pharmacists and nurses; new General Practitioner (GP) contracts; practice-based commissioning and the ever-growing importance of the National Institute for Health and Clinical Excellence (NICE), the Scottish Medicines Consortium (SMC) and the All-Wales Medicines Strategy Group (AWMSG).

We have developed and tested different scenarios of business strategy, resulting in a cutting-edge key account business model that integrates all of our activities around local PCOs whilst allowing us to constantly adapt our approach to the evolving needs of a decentralised NHS. In other words, we are aiming, by allowing truly localised solutions for how we should best do business, to ensure that we can meet our customers’ needs and release the full potential of our fieldforce organisation.

By taking a key account management approach to the way we work with our customers, we align our resources to customer needs in the most appropriate way. We’re not just throwing numbers and noise at a busy and complex market; we believe that our approach will optimise the performance of our marketed brands, while creating the best possible launch platform for our industryleading research pipeline.

So, it’s goodbye to yesterday’s rigid marketing and limited value-added offerings for customers and hello to a tailor-made, localised marketing mix that meets the needs of every customer across the UK. It’s also farewell to ad hoc co-ordination across internal and external stakeholders and a big loud welcome to strategic customer segmentation that allocates targeted resources to the right key accounts.

In short, we are focusing our resources to the benefit of everyone who works within Novartis, to our customers and to their patients. The changes we have made promise major improvements and outcomes to each of our four business ‘cornerstones’.

• Performance
  
  With our new business model, every sales team in Novartis enjoys joint ownership of account plans to deliver shared business goals in a dynamic team environment;
  
  

• Customers
  
  With a Key Account Management approach, we will add value to our customers by working even more closely with them whilst also building new capabilities to develop stronger relationships with new customers;
  
  

• People
  
  With a brand new business model comes a new set of shared business goals. In turn, this brings about a working culture based on respect, understanding, candour and collaborative working. It’s a recipe for success for us, as a company, and it’s a great motivator for all of our associates as individuals. Who does not feel more satisfied and motivated when he or she is made to feel that every move they make contributes to the success of the company as a whole?
  
  

• Operational Excellence
  
  With shared goals come shared values. Two-way dialogue is crucial to implement the matrix account teams that make up our new commercial organisation. Align the people, the systems and the resources effectively and the outcome just gets better and better.
  
  

  An underlying theme to all of the changes we have made is flexibility. The willingness to accept and understand – in a positive way – that our environment is dynamic and that we must be dynamic too. For too long the UK Pharma industry has continued to work with a ‘one size fits all’ approach to fieldforce resourcing across the UK. We see our new approach as a real common-sense response which benefits everyone who conducts business with Novartis Pharmaceuticals UK Limited.

Our primary focus is to create a better customer-facing structure that addresses the needs of a more localised NHS, and responds to the increasing integration across primary and secondary healthcare. By understanding the environment in which we operate and observing how others organise themselves, in terms of both structure and resource, we believe we have a business model that matches the challenges facing the pharma industry in 2006 and beyond.’

Does this sound like your way of working?

If you would like to join Novartis Pharmaceuticals UK Limited, we’d love to hear from you; go to www.novartis.co.uk and choose the ‘job search’ option on the Careers page.