Pharma Sales Territory Management

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Pharma Field Force Excellence
Pharmaceutical Sales Territory Management
Masum Chowdhury
BPharm, MBA (Marketing), PGDSCM
Manager & Lead Trainer, Strategic Brand Management, Asiatic
Territory management is a tool by which you can assist your company in the
achievement of its broad objectives. Territory means the land area in which you
operate and which a Medical Promotion Officer is responsible for.
Management means the activity of ensuring the performance of tasks in order to
achieve defined objectives – planning, organizing, Leading & Control
Territory Management & Planning is the process of determining what you want to
accomplish (the end result or outcome) and how you wish to achieve it, using the
most effective and efficient ways. The success of the outcome is largely determined
by the planning.
Planning involves the following steps:
a. Setting objectives
b. Identifying resources and
c. Devising strategies
Types of Territory Planning
a. Planning can be short term or long term.
b. Planning can also be strategic or operational.
Fig: Faridpur Depot Territory Structure

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The aim of strategic planning (3-5 years) is to establish the long-term results desired
by your company. The strategic plan has to flow through to the functional parts of the
company where it is converted into operational plans by the various organizations.
Operational planning is more short term, providing day-to-day details of how the
strategic plan of our organization will be achieved.
What is a sales territory?
The total market for most Pharmaceutical Company is simply too large to be
managed efficiently without a definite territorial structure.
A Pharmaceutical sales territory comprises of a number of present and potential
customers (Doctors and Chemists) located within a given geographical area and
assigned to a Medical Promotion Officer.
Fig: Territory Structures of Jessore
Reasons for Establishing Pharmaceutical Sales Territories
a. Achievement of company's sales and marketing objectives
b. Ensure better coverage - Territory assignments restrict salespeople to work with
less profitable customers or prospects as well as the most desirable customers
c. Reduced selling costs - Assigning responsibility to a single Medical Promotion
Officer ensures that there is no overlap in coverage; customers (Doctors and
Chemists) and prospects (New Customers) are called upon by only one salesperson
(MPO)
d. Improved customer service - Assigning responsibility to a single
Medical Promotion Officer helps to ensure that all customers and prospects receive
adequate servicing
e. More accurate evaluation of performance - If territories are relatively equal with
regard to workload and potential, then Medical Promotion Officer performance can
be compared on an equal basis; if territories are unequal in a known way, then
adjustments can be made in evaluation of unequal performance

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What Elements Determine A Territory?
a. Present and potential customers (Doctors and Chemists)
b. Geography;
c. Competitors' activity;
d. Number of Market
e. Healthcare institutions.
Some Guidelines for Designing Territories
a. Territory should have sufficient potential - With insufficient potential, a salaried
salesperson will not be used effectively
b. Territory should be of reasonable size - To reduce a MPO's travelling time.
c. Adequate coverage - Is the salesperson able to service all customers (Doctors
and Chemists) and able to meet prospects (New Customers)?
d. Minimum barriers - Try to set territories such that rivers, mountains etc. Set the
borders of territories rather than run through the middle.
Benefits of Good Territory Design
a. Enhances customer coverage (Doctors and Chemists)
b. Reduces travel time and selling costs
c. Provide more equitable rewards
d. Aids evaluation of sales force
e. Increases sales for the organization
f. Increase morale
What Are the Elements of Territory Action Plans?
Territory planning is usually long-term planning. It helps you maximize your time and
ensure you consistently build territory revenue by calling on a good mix of new
prospects and existing customers.
There are seven basic steps to preparing a territory action plan to effectively manage
your territory.

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a. Analyze your customers - Classify them and keep the classification up-to-date
b. Define your objectives by customer (Doctors and Chemists) - Break down overall
objectives by customers (Doctors and Chemists) and decide how to allocate your
time among them to reach these objectives.
c. Allocate territory time - Good time management is a skill
d. Plan your calls - What kind of information do you need to plan your calls?
e. Schedule your calls - To ensure you make the best use of your time; you will need
to schedule your calls.
f. Plan your route - Effective routing is based upon two elements: scheduling and
frequency
g. Evaluate your plan -Evaluation of a territory plan means to determine how
effective it has been
Building Territory Strategies
The Second half of your territory plan should include
a clear strategy to accomplish three things:
a. Maintain existing customers: First priority is to
keep what we already have.
b. Grow existing customers: Getting more
business from customers already buying from you
c. Obtain new customers from the
competition: The most time-consuming strategy
but potentially the most rewarding. Penetrating these
customers may take time, but these represent a
potentially significant boost in revenue.
Characteristics of Today's Customers (Doctors and Chemists)
a. More sophistication
b. More price sensitive
c. Short of time
d. More aware of growing product parity
e. High quality/service expectations
f. Decreasing supplier loyalty
g. Better educated
h. Easy access to information (internet, TV, Radio, Newspapers etc.)
Territory Consists of
1. Market list
2. Average Sales/Month of competitors
3. Healthcare Institution list
4. Chemists List
5. Doctors List
a. Qualified Doctors (MBBS above Degree)
b. Non Qualified Doctors
Govt. SACMO/FWV/DMF
Private LMAF
6. Territory Sales Plan for first 6 Months