Welcome to the Presentation

Implementing Sales Management Knowledge on -

“Oyster Pharmaceuticals Limited.”

“Sales management: The attainments of sales force goals in an effective and efficient manner through planning, staffing, training, directing, and evaluating organizational resources.”– Charles M. Futrell, Fundamentals of Selling

Theories of SellingSelling is considered an art by some and a science by others and has produced two contrasting approaches to the theory of selling.

1) Seller Oriented ( AIDAS & Right Set of Circumstances)

2) Buyer Oriented ( Buying Formula & Behavioral Equation)

“AIDAS” Theory of Selling

The theory - popularly known as the AIDAS theory, after initials of the five words express it . Attention, Interest, Desire, Action and Satisfaction).

“Right set of circumstances” Theory of Selling

It is also called the “situation-response” theory.

The major emphasis of the theory is that a particular circumstance prevailing in a given selling situation will cause the prospect to respond in a predictable way.

“Buying Formula” Theory of SellingThe theory is based on the fact that there

is a need or a problem for which a solution must be found which would lead to purchase decision, as shown below:

Behavioral Equation” Theory of SellingFour essential elements of this model are –Drive – a strong internal stimulus that impel

the buyer’s response- Innate drive (psychological)- Learned drive (status/social)

Cues – Weak stimuli when the buyer’s respond- Triggering cue- Non – triggering cue - Specific product

Response: What buyer does?Reinforcement – event that strengthens

buyer’s tendency of response.

Howard incorporates these cues in an equation: B= P*D*K*V

B = ResponseP= Predisposition/ inward response

tendency habitD= Present drive levelK= incentive potential i.e.

value, product/potential satisfaction of the buyer Example if predisposition is positive then automatically

K is activeV= intensity of all customer

Sales ForecastingThe forecasting process is defined as

the series of decisions andactions taken by a business

organization in:Identifying the forecasting

objectivesDetermining the independent and

dependent variablesDeveloping a forecasting procedureUsing the available data in the

selected method to estimate the sales in future

Sales Forecasting Methods: The sales forecasting method is a procedure for estimating how much of a given product (or product line) can be sold if a given marketing program is implemented.

Quantitative methods &Qualitative methods

  

Sales Force SizeThe size of the sales

force greatly depends on the way the department is organized.  In its simplest terms, one can keep on hiring until the last sales person does not produce more in sales than they earn.

Equalized Workload MethodIncremental Productivity

Method:

Equalized Workload MethodSuppose average number of calls 1000 per year. Sales force size can be calculated as:Sales force size = Total workload + Average number of calls per salesman= 39000 + 1000= 39Company’s sales force size is 39 salesmen. It needs 39 salesmen to meet its workload.

Incremental Productivity Method

In this method, additional (incremental) cost of salesman is compared to additional (incremental) sales revenue.

Organization Identification

Oyster Pharmaceuticals Ltd. started its operation on April 2010. Initially it launched countrywide sale with 17(Seventeen) of 29(Twenty Nine) licensed products and covered total 38 districts by the selling network. Presently Oyster produces 18(Eighteen) generic products and other several new products are in the pipeline for production. Location:

Factory: Borhanuddin Road, Kushighat, Sylhet   Head Office: 101,102 Loudi Vaban Housing State,

Sylhet   Register Office: Pritom Hotel, Tupkhana Road, Dhaka.  

Mission, Vision & Core ValueTheir mission is to emerge as a

technology-driven manufacturer of quality medicine and offer cost effective healthcare.

Their vision is to become a highly efficient generic manufacturer of Pharmaceuticals products, which will satisfy the needs of customers.

In order to achieve this Vision, they undertake to create value for all the constituents they serve: their customers and the community

Product line & Capacity:

Strength & Target:Its strength lies in the commitment

of both management and workers to deliver value to the clients, customers, consumers and well-wishers.

To maintain customer trust and satisfaction nationwide that includes local and international compliance of 46 LDCs (Least Developing Country) barrier and opportunities within the year of 2016 with trusted name in quality medicine.

Management PolicyProceed always with ambition and

youthfulness. Respect sound theory, develop first

ideas and make the most effective use of time.

Enjoy your work and encourage open communications.

Strive constantly for a harmonious flow of work.

Strive to address important environmental and safety issues.

Shaping dreams with creativity and ingenuity.

Creating consistent quality nationwide.

Oyster Pharmaceutical’s Selling Theory

Oyster Pharmaceutical Ltd. follows the AIDAS theory of selling. As pharmaceuticals Oyster’s prospects are.

DoctorsChemistDrug dealersForeign PharmaceuticalsAnd others who are directly or

indirectly associated with drug buying or selling.

Oyster Pharmaceutical’s Sales Forecasting

Oyster Pharmaceutical Ltd. doesn’t have forecast professionals, the sales staff to generate the sales forecast. Because it is a small organization which is newly opened and doesn’t have the high capacity to forecast sales. However, the company impose 15% target on MPOs to increase sales than last year’s volume.

Oyster Pharmaceutical’s Sales Force Size

Factors influencingThe optimal reach (how many

physicians to see) and Frequency (how often to see them)

for each individual physician, How many sales representatives to

devote to office and group practice How many to devote to hospital

accounts if needed.

They use additional information such as:Profitability of a prescription (script), Accessibility of the physician, Tendency of the physician to use the Oyster

Pharmaceuticals company's drugs, Effect of managed care formularies on the

ability of the physician to prescribe a drug, The adoption sequence of the physician (that

is, how readily the physician adopts new drugs in place of older treatments), and

The tendency of the physician to use a wide palette of drugs

Influence that physicians have on their colleagues.

Work load Method1) Classify customer both present and

prospective into sale volume potential category:

2) Decide on the length of time per sales call and desired call frequencies on each class:

3) Calculate the total work load involve in covering the entire market:

4) Determine the total work time available per salesperson:

5) Divide the total work time available per salesperson:

6) Calculation of the total number of salesperson needed:

FindingsLower performanceLower customer loyaltyLack of market coverageSales personnel (MPOs) incentives and

motivating level is not much justifiedLower changes in market or product policyProduct line is narrowOyster Pharmaceuticals Ltd is in chemist

market positionThe head office is in Sylhet, this is the reason

supply flows in overall country is lowFor reason of being new in market the risk is

higher to manage the business flowsLack of technological development

RecommendationsIncreasing the business performanceAchieving customer loyalty Managing supply chain risks and increasing

commodity costs Improving information for decision-makingProduct line should be broadenShould enter in prescription marketHead office should be placed in DhakaChange & develop technological advancementAttracting, retaining and developing top

talentManaging company risk

Conclusion

Sales Management knowledge is a solution that allows salespeople to quickly and easily retrieve the exact just-in-time knowledge and content they need can drive the buying process forward, build deeper trust with prospects

Thank you Everyone…….

The End