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problem1) How are Quarterly and Annual Sales forecast made in Indian Pharmaceutical Companies?

problem2) Team selling is the integral part of pharmaceutical industry. describe key features of team based selling in pharmaceutical industry. How do sales managers meet challenge of assessing and awarding performance of a team?

problem3) describe briefly different training methods adopted by Pharmaceutical companies to improve performance of Medical Representatives.  describe the “Role Play Method” in detail.

problem4) Why is activity quota more important than quota based on volumes in case of Pharmaceutical Company.


Case Study

The Territorial Design of German Remedies

Mr Ramachandran is the General Manager of German Remedies.  He is evaluating two sales territories, each composed of five trading areas with different market potential of German Remedies.  He is evaluating two sales territories, each composed of five trading areas with different market potential. Territory 1 requires 60 salespeople for adequate service, while territory 2 represents more sales potential but requires 265 salespeople for service. Both the territories should be adjusted to make the potential more uniform.  If they are not adjusted, this may cause a significant problem for Mr Ramachandran. For ex, salespeople in territory.  I will be more frustrated at the lack of opportunity.

               Trading area (TA)      Present % of time                     Recommended % of time
                                              spent serving the TA                   to spend serving the TA
Territory 1        1                               40                                                      10
                        2                              10                                                       25
                        3                              15                                                        5
                        4                              30                                                        10
                        5                              15                                                        10
       Total                                         100                                                       60

Territory II        6                               20                                                        70
                        7                              15                                                         50
                        8                              20                                                         85
                        9                              20                                                         35
                       10                            25                                                           25
Total                                               100                                                         265

The company is also at the loss because too much of a selling effort is spent in territory I.  The salesperson in territory II might be able to make his quota by calling on the limited number of customers in each trading area.  As a result, the company is also losing sales, whereas at the same time the salespeople have little incentive to develop marginal customers, search for new customers, or seek out new product applications.  Mr Ramachandran has only few options to adjust the territories: give equal assignments to the salespeople, reassign trading areas into more equal areas, and realign the level of service expectations.


problem1) What must Mr Ramachandran do?

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M93473

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