RESEARCH TRIANGLE PARK, NC--(Marketwire - September 19, 2007) - Pharmaceutical sales
representatives receive approximately 25% of their annual compensation in
incentive-based bonuses, a report from pharmaceutical business intelligence
leader Cutting Edge Information reveals. The report, "
Pharmaceutical Sales
Management 2008," explores the factors that affect sales representative
compensation, such as experience, years of service and job success.
In response to the pharmaceutical industry's demand, one study participant
claimed that third-party vendors are increasingly likely to offer
physician-sales representative relationship measures. These vendors poll
doctors on relationship- and customer service-oriented measures and then
provide results to pharmaceutical companies, who reward high-rated sales
representatives with incentives. The practice of tying sales
representative compensation to relationship measures underscores the
importance of the physician-representative relationship.
A slew of other factors, in addition to physician relationships, are
involved in determining a sales representative's compensation, including
co-selling and team cooperation, market share, portfolio-product goals,
territory sales goals and new physician scripts. Some pharmaceutical
companies are turning to this myriad of factors in order to make
compensation levels more equitable.
"With a traditional percent-to-quota compensation system, sales
representatives are paid based on their sales relative to other
representatives in their territory," explains lead researcher David
Richardson, senior analyst at Cutting Edge Information. "This system means
that high-selling representatives in a high-producing territory may not
receive bonuses, while lower-selling representatives in a low-producing
territory will. With more factors in play, pharmaceutical companies can
eliminate this inequity."
The report examines pharmaceutical companies' sales investment, structure,
strategies, and field tactics. Compiled from interviews and surveys with
sales leaders at top performing pharmaceutical companies, the report allows
drug companies to compare and improve their own sales strategies.
Key metrics in the new pharmaceutical sales report include figures for the
following areas:
-- Budgeting and Financial Support
-- Structure and Headcounts
-- Product Prioritization, Territory Alignment and Coordination
-- Sales Operations and Contract Sales
-- Training and Development
-- Sales Compensation and Reward Programs
-- Rep Activities
-- Segmenting and Targeting
-- Overcoming Reduced Physician Access
-- Optimizing Time Earned with Physicians
To download a free, online summary of this report, visit
http://www.cuttingedgeinfo.com/pharmasalesmanagement/PH103_Download.asp#body.
Contact Information: CONTACT INFORMATON:
For more information or to learn about other Cutting Edge Information
research, contact
David Richardson
919-433-0216