Business Research Process
March 2, 2015
Pharmaceutical Sales Research Study
A look into the reasons behind the pharmaceutical sales industry’s mass layoffs and subsequent hiring binges. In reviewing the article a study of drug company tends is performed by a health care consultancy.
Identifying the Research Problem
In the article discusses the recent trend of pharmaceutical companies bringing back their sales forces and the primary reasons behind what caused the mass layoffs and hiring. At the time of the mass layoffs the perceptions about the influence of managed care, fear of how federally mandated health care reform, lack of new drug approvals and research and development costs. ...view middle of the document...
The researcher, Scott-Levin, a health care consultancy, studied drug company trends to determine that drug company executives had a shift in their perceptions regarding managed care, the federal mandate on national health care, and expiring patents. Managed care drug formularies and tiered drug lists were actually only guidelines and not strict rules and sales reps could sell doctors on prescribing their drugs. Because of this fact sales calls to doctors with relationships to managed care increased by some forty percent in recent years and during the same period sales calls to doctors without ties to managed care have dropped by nearly fifty percent.
Due to expiring patents, pharmaceutical companies needed to reinvest in research and the development of new drugs. As those drugs gain FDA approval for sale, the drug companies required a larger a sales force to sell and promote the newly approved drugs.
Finally, the affects for health care reform laws have increased the need to health care providers and thereby increases the demand for prescription drugs for people who previously were not seen by health care providers. Which is the opposite effect of predictions prior to the laws going in being enacted and opening up health care to so many people who previous. The law also enabled people who were not treated for preexisting conditions to obtain treatment.
Other potential uses for this research are in the area of predicting and calculating unemployment rates for the sales and pharmaceutical industry. Could use this research to determine when and if sale force reductions are needed in the future. Could help inform executives and manager how they can better trend future sales force numbers and improve the decisions making process.
Pharmaceutical firms increasing sales staffs (1996). Marketing News, 30(13), 8. Retrieved from http://search.proquest.com/docview/216340240?accountid=458