1. Why KAM May Fail?
Key Accounts Management in
Pharmaceutical Industry
February 14 & 15, 2013
Hotel Avion, Mumbai
Dr Ulhas Ganu
Advisors in Medico-Marketing & Management (AIMM)
Mumbai
drukganu@gmail.com
1
KAM-Pharma 2012

2. Why KAM May Fail?
• Can It Really Fail?
• How Can We Make it Work?
• Can it be Applied by Every Organization?
• Aren’t Organizational Objectives & Goals
a Determinant to its Application?
2

3. http://assignmenthelpexperts.blogspot.in/2011/09/business-its-environment-and-objectives.html
Core Attributes
 Intrinsic Attributes
R&D
* Base
*
 Objectives 
* of *
Customer Business
Retention
* * *
3

4. Information is the Key
The Story of A Villager at Railway Station
Inquiring About Trains at the Inquiry Counter
The Apologetic Person at the Counter Told him:
• No Train towards Mumbai for 2 hours
• No Train Towards Nashik for 3 hours
Sarcastically adding……….
• Not Even a Goods Train Movement in Day Time
• The Villager Thanked him for the information……
4

5. Information is the Key
Turning to his Wife he Said……
Come Dear, it is Safe now to Cross the Railway Track!
Safer than the Safest Possible Option
Height of Precaution!
Not So Much Overcautious, I Still Wondered….
• Shouldn’t We Be Careful About KAM in India?
• Should We At Least Check Coordinates Properly
Before Accepting it Fully & Wholeheartedly….
5

6. Skeptic: Why KAM?
Change is a Need Based Action
The Only Person Who Always Likes a Change is
a Wet Baby
Which it Can’t Do by Itself!
&
Must Invite & Involve Others for Help
6

7. Skeptic: Why KAM?
What is Wrong with ‘The Age Old’
‘Traditional’ “4 P” Model?
Hasn’t it Been Modified &
Used Highly Successfully for Decades?
7

8. Skeptic: Why KAM?
What is Wrong with ‘The Age Old’
‘Traditional’ “4 P” Model?
Hasn’t it Been Modified &
Used Highly Successfully for Decades?
Is KAM a Gimmick Used by the Consultants
to Stay in Business ?
Let Us See How Marketing Evolved
Over the Last Few Decades……
8

9. Age Old Successful Traditional 4 P Model
Primary Product Attaining
Attributes Focused Quality The Desired Goal
Person
Finance &
Sr. Place
Management
Product Product
Value HR Promotion
9

10. The 4 Ps & 4Cs The Standard P:C Theme
(Caiibgbm marketing mgt module d)
Marketing Convenience
Mix
Place
Product
Customer
Solution
Price Promotion
Communication
Customer
Cost
10

11. The Total Matrix Evolved Model
• Medico-marketing
Product
Q Positioning
http://www.google.co.in/imgres?q=Revolving+s
• Medical
ubtractive+colour+wheel+illusion&start=138&hl
• Marketing
=en&biw=1525&bih=741&tbm=isch&tbnid=WP
UF7YU6UH6JXM:&imgrefurl=http://docs.gimp.o Place
rg/en/glossary.html&docid=aJWbz-
• Finance Attributes
CoZ5h1aM&imgurl=http://docs.gimp.org/en/im
ages/glossary/color-model-
Senior
additive.png&w=300&h=285&ei=xh5rULLqFMH
KrAfb7YGgDw&zoom=1&iact=hc&vpx=724&vpy
Management
=338&dur=346&hovh=219&hovw=230&tx=124
&ty=95&sig=107126594954691788435&page=6
• Technical Human
• Quality
&tbnh=177&tbnw=186&ndsp=24&ved=1t:429,r:
• Production
15,s:138,i:222 Resource Assurance
Development
• R&D
11

12. Communication • Medico-marketing Limited Aspect
Q Communication
Product
Sale Only as Positioning
http://www.google.co.in/imgres?q=Revolving+sub
• Medical tractive+colour+wheel+illusion&start=138&hl=en
the Focus • Marketing
&biw=1525&bih=741&tbm=isch&tbnid=WPUF7YU
6UH6JXM:&imgrefurl=http://docs.gimp.org/en/glo
• Finance
ssary.html&docid=aJWbz-
CoZ5h1aM&imgurl=http://docs.gimp.org/en/imag
es/glossary/color-model- Attributes
Senior
additive.png&w=300&h=285&ei=xh5rULLqFMHKr
Afb7YGgDw&zoom=1&iact=hc&vpx=724&vpy=338
Management
&dur=346&hovh=219&hovw=230&tx=124&ty=95
&sig=107126594954691788435&page=6&tbnh=17
• Technical Human Resource
7&tbnw=186&ndsp=24&ved=1t:429,r:15,s:138,i:2 Assurance
• Quality
Development
• Production
22
• R&D
Limited Outside Interaction Limited Outside
Interaction Within Interaction 12

13. Why Traditional Model Alone
May Not Work Now….
It Largely Worked Earlier Because ……….
1. Not All Companies Followed it……
2. Not All Those Who Followed the ‘Quality
Principles’ ‘Communicated’ it to the Customers
3. Those Doing Both Activities were Successful
13

14. The Changing Equations
1. The Model Was Consistently Modified Over Years
2. An Orientation to Working on Key Opinion Leaders
& the Key Account Customers Evolved
3. CRM : the Customer Relationship Management
became the Key word
4. Tender Business Extracts its Own Price
5. Retailers May Not be Friendly Customers but
turned Hostile Adversaries
14

15. The Current Situation
• High Competition, too Many Branded Generics!
• Limitations of KOL to help with Direct Business
• Fear of Losing KAC due to Extrinsic Factors*
• Resultant Loss of Business
Need:
• The Communication Should Focus on Benefits
that May Accrue to the Customer & Company
• Beginning of KAM Idea
15

16. KAM: Key Accounts Management
Key (What is the Key)
Accounts (What are they?)
Managing (Who Would Manage# & Whom*)
The Confusions Galore
KOL / KAM / KAC
Are They
Interchangeable / Similar/ Very Different
#: Shouldn’t the Personnel be Trained & Nurtured?
Are they Nurtured as Required
16

17. KOL: Key Opinion Leaders: Role
1. Leading Physicians & Scientists, Respected &
Acknowledged as Leaders in a Subject Area
2. Influence Thinking & Treatment Paradigms
3. Provide Insight into Diseases & Rx Regimen
4. Provide Assessment of Competitive Therapies
The data is growing. Why aren't Insights? http://www.wipro.com/services/business-application-
services/key-opinion-leader.aspx
Drug Discovery : Help Write the Protocol & Define
Efficacies of the Drug During the Study
Medical Affairs
* Help Medical Affairs on Drug Usage & Defining Side Effects

18. Key Opinion Leaders Serve the Following Purpose
The data is growing. Why aren't Insights? http://www.wipro.com/services/business-application-services/key-opinion-
leader.aspx
• Act as Leading Indicator of Therapy Acceptance
(Protocols)
• Help in Diffusion of Information & can Increase
Velocity of Product Adoption (e.g. Imatinib) or
• Even Relegation as well (e.g. Hydroxyurea/ Thiotepa/
Total Parenteral Nutrition): Pays to know the trends early
• Physicians & Institutions Increasingly Rely on KOL
Guidance for Prescribing New Drugs
18

19. Key Targets
KOLs
1. May Help Expand the Market for a Product
through Establishing New Protocol
2. May Help Sales Indirectly
3. Important to be Associated With….. Although
they May Not Prescribe Your Products in Large
Volumes. Meet if Possible, Follow Trend
Aren’t KOL’s Key Customers? Partners?
19

20. Key Targets
1. KACs: Prescribers & Directly Generate Revenue
Important as Attached to Several Hospitals
2. Products Availability in Hospital Pharmacies a Must
as Hospital Management Insist Purchase of Products
from their Pharmacy Only
3. KAC’s Must be Met Very Regularly & Since Institute’s
Price is Lower, Should be Audited for Sales Returns
4. Profitability Profiling Necessary……….
5. Determine GP Coverage? Or Consultant Coverage
Only?
20

21. The Key Accounts Concept
1. Aren’t We Aware of It?
2. Product Availability in Pharmacies of Institutions
Such as:
* AIIMS / * Apollo Hospital Chain
* Tata Memorial Hospital/ * Gujarat Civil Hospital
* TNMSC/
* Many Other Government & Private Bodies
• Considered as Valued Clients & Help Position
Products Elsewhere
21

22. Let Us Look At
The Different K’s Collectively
vis-à-vis
Key Account - Management
&
The Corporate Objectives
22

23. KOL / KAC / Key Account ---- Management
The K’s vis-à-vis Corporate Objectives Are
A Set of Potentially Profitable Activities
Theoretically & Functionally Appearing Similar
Varying in the Output
Requiring Optimization of the Matrix
To Achieve Primary Objectives of the Organization
23

24. KOL / KAC / Key Account ---- Management
The K’s vis-à-vis Corporate Objectives Are
A Set of Potentially Profitable Activities
Theoretically & Functionally Appearing Similar
Varying in the Output
Requiring Optimization of the Matrix
To Achieve Primary Objectives of the Organization
24

25. KOL / KAC / Key Account ---- Management
The K’s vis-à-vis Corporate Objectives Are
A Set of Potentially Profitable Activities
Theoretically & Functionally Appearing Similar
Varying in the Degrees of Outcome
Requiring Optimization of the Matrix
To Achieve Primary Objectives of the Organization
25

26. KOL / KAC / Key Account ---- Management
The K’s vis-à-vis Corporate Objectives Are
A Set of Potentially Profitable Activities
Theoretically & Functionally Appearing Similar
Varying in the Degrees of Outcome
Helping Optimization of the Matrix
To Achieve Primary Objectives of the Organization
26

27. KOL / KAC / Key Account ---- Management
The K’s vis-à-vis Corporate Objectives Are
A Set of Potentially Profitable Activities
Theoretically & Functionally Appearing Similar
Varying in the Degrees of Outcome
Helping Optimization of the Matrix
To Achieve the Primary Objectives of the
Organization
27

28. Good Product ?
? Gifts ! CMEs
Conferences !
!
Personal Tours
Company Needs
Literatures * Scientific
Updates
?
Detailing
Free Samples* LBL/Visual Aid
Monograph
28

29. Good Product CRM
Convenient
Appointment
 Customer
Solution
as
Medical
Advisor or
Consultant Gifts ! CMEs
Conferences !
!
Personal Tours
Literatures * Scientific
Updates
?
Detailing
Free Samples* LBL/Visual Aid
Monograph
29

30. Interesting Current Model Vs Futuristic Model
Influencing the Sale
&
How it May Shape Up in India
30

31. Today Future
Can You Ignore Patient?
Ref: Developing Customer Process Orientation Alt_Puschmann BPMJ 2005
Business Process Management J. 11 (2005)4: 297-315 31

32. Can You Ignore Patient Communication?
Although Patient is the End User
Traditionally, Doctor is the Client for Pharma
Obviously, Instead of Ignoring the Patient,
One May Have to Find Ways to Engage him
Albeit Ethically
Costing May Have to be Controlled
Communicating Economically & Yet Effectively With
the Patient Would Require Creativity
32

33. KAC vis-à-vis KAM Catch & Trap
Extra Costs May Make the Model Weaker……
• Hospital Bargains Hard For Price:
• Innovator, L1 & L2 Approved is the Norm
• At Least Three Competing Products in Pharmacy
• Hospital as a ‘Key Account’ Has a Lot of Limitation
vis-à-vis Company
• Doctors Must be Won Over For Prescription or the
Products Do Not Move in Pharmacy
• Why Do Indian Companies Have to Compete as L1 &
L2 When Quality could be As Good As MNC?
33

34. programmes/short-courses/designing-your-key-account-management-
KAM
http://www.gibs.co.za/programmes/corporate-education-executive-
Deliver Provide
Consistent Ongoing Concept
Quality Cooperation
Deliver
Consistent Communicate
Performance Trust Based With Me
Customer
Deliver Relationship Be Competitive
Meaningful Not Necessarily
Value the Cheapest
Demonstrate
Flexibility &
plan.aspx
Innovation
Intrinsic Attributes Extrinsic Attributes
34

35. The White
Deliver Provide
Consistent
Flag Means
Ongoing
Quality Cooperation Surrender
Deliver
Communicate
Consistent
Surrender With Me
Performance
Compulsions
Deliver or Be Competitive
Meaningful Compromise Not Necessarily
Value the Cheapest
Demonstrate
Intrinsic Flexibility & Extrinsic
Attributes Innovation Attributes
35

36. Red Flag:
Deliver Provide The White
Drop in
Consistent Ongoing Flag Means
Marketing
Quality Cooperation Surrender
Concept
Deliver
Communicate
Consistent
Surrender With Me
Performance
Compulsions
Deliver or Be Competitive
Meaningful Compromise Not Necessarily
Value the Cheapest
Demonstrate
Intrinsic Flexibility & Extrinsic
Attributes Innovation Attributes
36

37. Primary Attributes Primary Focus
Product
Primary Quality Attaining
Attributes Focused The Desired Goal
KAM KAC
Goal
Product Trade Product
Value Sale Positioning
Approach
37

38. Secondary Attributes Primary Focus
Marketing Focus Trade Sale
Lost Approach
Price
When
Quality & Brand
Positioning
Trust is
Breached
KAM
Value
  CRM
Goal
KAC Wrong
 Interpretation
Would Fail
to Deliver wrongly
Desired Interpreted Quality as
Results
Transaction
Model 38

39. Analyzing the Prescription Definition
A Prescription is an Order/Advice by the Doctor:
• To the Patient to Purchase the Drug & to Consume
it in a Particular Manner
• To the Retailer to Sale the Drug to the Patient
• To the Company to Make it Available at the Counter
• There are A Lot Many Connected Activities &
Since Substitution of Drug is Prohibited,
Generation of Prescription Amounts to the Sale
39

40. Analyzing the Prescription Definition
• FF is the Signatory
• Authors Could be At the HO or in Field
• It is a Multi-numbered Lock
Field Force:
Does Create, Enable & Sustain Prescription
• Unfortunately Only the Sales & Not the Marketing
Invariably Considered- Wrongly- as the Only Key
Their Customers Considered the only Key Customers!
40

41. Reaching & Staying at the Top
• Conceptualization
• Backward Integration With Quality Personnel is
Equally Important,
• Backward Integration Ignored Consistently
• Quality First / Client as a Consequence
• Without Innovation & Consistent Quality,
Building Client Rapport & Long Term Relationship
With Clients isn’t Possible,
41

42. CRM in the
Hands of Sales Personnel is Like
Schoolboy Concept of Essay on Rural India vis-à-vis
Football
42

43. 5 P Match Package
to
Product Product Patient
Positioning Price to Positioning
Hospital
Organization Price Price Hospital
Place Patient
Personnel Personnel
Deliver Consistent Quality, Deliver Consistent Performance,
Deliver Meaningful Value, Provide Ongoing Cooperation,
Communicate With Me, Be Competitive
Demonstrate Flexibility & Innovation Not Necessarily the Cheapest
43

44. Skeptic: Why KAM?
Change is a Need Based Action
The Only Person Who Always Likes a Change is
a Wet Baby
Which it Can’t Do by Itself
&
Must Invite & Involve Others for Help
44

45. Why KAM: International Genesis
Need Based
1. Pharma Encountered Economic Recession, earlier in
(2005 & 2006).
2. “Sales Forces Bloated Earlier”
3. Pharma Sales Reps Started Losing Jobs in Thousands…..
4. “Hence No Other Way but to turn to technology.”
5. CRM software may be more critical than ever to the
pharma Industry (Hagemeyer, Gartner Research Managing VP).
(Ref. Market Focus: Pharmaceuticals -- CRM Undergoes an Experimental New
Treatment, An older CRM vertical gets a new dose of on-demand technology)
By Lauren McKay
45

46. KAM under the spotlight: by David Round
The British Experience With KAM
http://www.pharmafield.co.uk/features/2011/12/KAM-under-the-spotlight
Claims
* Hence Now Using More Sophisticated Approach to
Sales & Marketing Activity
* Delivering More Efficient & Effective Commercial
Model Using a Targeted KAM Methodology
46

47. KAM under the spotlight: by David Round
The British Experience With KAM
http://www.pharmafield.co.uk/features/2011/12/KAM-under-the-spotlight
• Dec 09 & Dec 10 –Working According to KAM ?
• 92.7% of UK GPs had a Face-to-Face Call or Meeting
With a Medical Rep from Pharma
• This indicates, the industry was still carrying out
almost blanket coverage of GPs.
• The 2010 Merely Continued a Similar Trend from the
years that preceded it –
• Past Decade Annual Industry Coverage Consistently
Reached Over 90% of the Total Prescriber Population.
47

48. KAM under the spotlight: by David Round
The British Experience With KAM continued
http://www.pharmafield.co.uk/features/2011/12/KAM-under-the-spotlight
• July ’10 to June ’11, GPs Face-to-Face Call/Meeting
with an Industry Representative dropped to 85
• In the First 6 Months of 2011 the Total No. of GPs
Who Have Had A Similar Contact Slumped to 73%.
• Now Face-to-face calls/ rep/day falling year-on-year.
• No. of meetings (per rep/day) has gradually risen
• The Synmetrics data: more meetings taking place
today than at any point in the past 10 years; and
• Crucially in 2010 the No. of Meetings/Day Overtook
the No. of face-to-face calls for the First Time.
48

49. Current Trend: A Positive Shift Towards KAM
Thrust Relatively New
• Data shows: 17,000 GPs – (around 35%) didn’t receive a
Face-to-Face call in the Last 12 Months of ‘10 – 11’
• There’s a Concomitant Increase in the No. of meetings
• A significant drop in face-to-face call activity,
• Over 1/3rd of Pharma’s Traditional Customer
Population Not Receiving a Single Call
• It’s still too early to make definitive claims that the
KAM model is firmly embedded in UK Pharma.
• KAM Picking Up or Call reduction by Compulsion?
49

50. Team Management: International Vs Indian Scene
• Account Managers are Encouraged to Develop Their Own
Call Plans
• Become More Accountable for Their Own Business
• Need Robust & Effective Data to Make Informed
Targeting Decisions in the Process is Paramount
• Strong Feedback System Desirable &
• Sharing of the Collected Data Utmost Important
• Liaison: Sales Team, PMT & KA Manager: Key to Success
• Is Field Force Reduction a Compulsion in India?
• If Not…. How Effectively to Use Them For Arranging
Meetings For KA Manager & KOL/KAC…..
50

51. KAM Perspective
Lack of Understanding About KA Manager Job Function
Understanding Attributes Required
Developing Personnel
Internal Integration
Their Hospital Work
Meaningful Communication
Avoids Repeat Calls by different Sales Personnel
to same Customer / Purchaser
All Round Knowledge & Focus on Company Perspective
Helps Snatch Profitable Deal
Sales Personnel With Limited Strategic Understanding
May Not be the Answer for KAM
Key Account Managers Need More Freedom 51

52. How Do Consumers Choose….
Among Products & Services?
• Performance > Expectations => Satisfaction
# Performance < Expectations => Dissatisfaction
Company Needs an “Uncompromising Attitude”
Towards Maintaining “Product Quality”
Integrated Communication
Keeping in Mind Company Perspectives Important
Only A Senior & Mature Person
Can Handle it Properly
52

53. http://www.whiteladderconsulting.com/cor
porate_training.html
A Simple Sales Person Cannot Understand the Intricacies
Key Account Management is a Specialized Function
53

54. “MR or FLM” Conducted Activities Versus
Key Accounts Manager Managed Activities
http://sites.cdnis.edu.hk/students/001771/
*
objectives/
*
*
54

55. Blake & Mouton
9
1/9 9/9
al_grid_model
http://en.wikipedia.org/wiki/Manageri
The customers The problem
friend solver
5/5
Concern for Compromise
customer “Method”
approach
1/1 9/1
The order The pressure
taker salesman
1
1 Concern for making the sale 9
55

56. CAP: (Ward - Strategic Management Accounting)
the “Customer Account Profitability” is
“The Total Sales Revenue Generated from
a Customer or Customer Group....
Less
All the Costs that are Incurred
In Servicing
that Customer or Customer Group.”
56

57. CAP: (Ward - Strategic Management Accounting)
the “Customer Account Profitability” is
“The Total Sales Revenue Generated from
a Customer or Customer Group....
Less Where Would You Put KOL?
All the Costs that are Incurred
In Servicing
that Customer or Customer Group.”
57

58. 11_01_archive.html
http://mnama.blogspot.in/2010_
10%
30% 50-60%
60 % 30 – 35%
http://www.google.co.in/imgres?q=wrong+Key+Account+Customer+%2B+Pyramid&start=191&num=10&um=1&hl=en&biw=1525&bih=741&tbm=isch&tbnid=mvjFuU
PExojbDM:&imgrefurl=http://mnama.blogspot.com/2010_11_01_archive.html&docid=WVzyJCpwO_i78M&imgurl=http://2.bp.blogspot.com/_4YZAh7cfTLk/TO1mSjYZ
9bI/AAAAAAAAACo/Lfzs_LuAEqs/s1600/Untitled.png&w=493&h=284&ei=SPaAUISYOcSsrAesvoD4Dg&zoom=1&iact=hc&vpx=797&vpy=135&dur=12821&hovh=17
10 to 15%
0&hovw=296&tx=160&ty=103&sig=107126594954691788435&page=7&tbnh=143&tbnw=249&ndsp=32&ved=1t:429,r:94,s:100,i:286
Identify Your Important Customers
Pareto’s 80:20 or 10:30:60 aren’t Absolute Ratios 58

59. The List is More Likely to be Dynamic than Static
10%
30%
50-60%
30 – 35%
60 %
http://www.google.co.in/imgres?q=wrong+Key+Account+Customer+%2B+Pyramid&start=191&num=10&um=1&hl=en&biw=1525&bih=741&tbm=isch&tbnid=mvjFuU
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9bI/AAAAAAAAACo/Lfzs_LuAEqs/s1600/Untitled.png&w=493&h=284&ei=SPaAUISYOcSsrAesvoD4Dg&zoom=1&iact=hc&vpx=797&vpy=135&dur=12821&hovh=17
10 to 15%
0&hovw=296&tx=160&ty=103&sig=107126594954691788435&page=7&tbnh=143&tbnw=249&ndsp=32&ved=1t:429,r:94,s:100,i:286
Pareto Principle Helps Identify Important Customers 59

60. 10% 30%
30% 60%
60 % 10%
Representative Chart Not Absolute Guide
% Marketing Spend Per Segment
Invert the Pyramid and Supercharge Your Profits, by Mark Price
60
http://mnama.blogspot.in/2010_11_01_archive.html

61. Key
http://www.google.co.in/imgres?q=wrong+Key+Account+Customer+%2B+Pyramid&num=10&um=1&hl=en&biw=1525&bih=741&tbm=isch&tbnid=xqG
0-
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=http://www.emeraldinsight.com/content_images/fig/0200230404002.png&w=1363&h=838&ei=B_SAUKiPDdHQrQfB7IGQAQ&zoom=1&iact=hc&vpx=
Not Serving them is Not an Option
399&vpy=160&dur=4497&hovh=176&hovw=286&tx=130&ty=109&sig=107126594954691788435&sqi=2&page=1&tbnh=137&tbnw=223&start=0&nds
p=24&ved=1t:429,r:1,s:0,i:69
Find Economic Ways to Reach Them
http://www.google.co.in/imgres?q=profit+revenue+pyramid+model&hl=en&tbo=d&biw=1525&bih=712&tbm=isch&tbnid=
xqG0-
PMeMDuwfM:&imgrefurl=http://www.emeraldinsight.com/journals.htm%3Farticleid%3D1508902%26show%3Dhtml&doci
d=68GZFYf2T2C7QM&imgurl=http://www.emeraldinsight.com/content_images/fig/0200230404002.png&w=1363&h=838&ei=VbQKUbvtE8jKrAfD-61
YDwAg&zoom=1&ved=1t:3588,r:0,s:0,i:79&iact=rc&dur=2&sig=107126594954691788435&page=1&tbnh=176&tbnw=286&start=0&ndsp=17&tx=120&ty=100

62. Curry’s Pyramid: Classifying Customers
Gold
Silver
Bronze
White
http://www.expertprogrammanagement.com/wp-content/uploads/2011/06/currys-pyramid.png 62

63. Age Old Matrix for ‘Performance & Goal’ Audit
What do we
Goal setting
want to achieve?
⇓
Performance What is
Measurement happening?
⇓
Performance Why is it
Diagnosis happening?
⇓
Corrective Action What should we
do about it?
63

64. http://kmonadollaraday.wordpress.com/20
64
10/11/

65. http://www.1000ventures.com/business_guide/crosscuttings/achievement_ability.html
65

66. With KAM in Place Why Not Special Consideration?
Grade 1 2 3 4 5
Physician With L1 & L2, There is Still Pressure to Work
for Prescription With the Physician Independently
Patient In KAM, Why have L1, L2?
Hospital Why not a Single Drug Choice
to the Prescribing Doctor?
Or
Why not Commitment for a
Pharmacy
• Fixed Minimum Order &
• Non-returnable Supply?
66

67. http://www Pharmaceuticals Distribution System in
.csas.ed.ac. India, Center for International Health Policy
uk/__data/
assets/pdf_
file/0003/3
8829/Phar
maDistribut
ionIndia.pdf
Working
Paper July
2,3, 2007
67

68. Wholesaler
A Potential Entry Point for Spurious Drugs?
Could Nurturing them For Clean Business be Important?
Encourage KAM & Hence the Direct Medical Supply
to Institutions, Hospitals as a
Good Channel to Prevent Spurious Drug Entry
Can KAM be Positioned to Convince &
Influence Smaller
Hospitals & Nursing Homes For Business
68

69. Key Account Manager
Selection & Perpetuity is Important
Hierarchy in the System
Cooperation from HO & Field Personnel Essential
Training the Key Account Manager
Knowing Overall Aspects of Commerce & Quality
Nurturing Key Account Manager
Targets/Incentives
69

70. How Many Key Accounts?
Visit the Business Triangle: Profit/Serviceable!
Corporate Hospitals or Government Business?
Layers or Gradations Possible Within Segment
Loss of a Single Account May Mean a Setback
Cannot Possibly Ignore Trade Business
to Protect From Sudden Account Loss?
Specialty Products? Liquidating Stocks Quickly?
Product Centric? Company Centric?
70

71. http://www.google.co.in/imgres?q=key+account+
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d4b330f31854e8963681d3819dc28ebc.html&doci
d=gubtck9feXtYsM&imgurl=http://www.iproceed.
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com/marketing/images/key-accounts-
metrics.jpg&w=345&h=289&ei=cA99UO3_FdGUiQ
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196&ndsp=31&ved=1t:429,r:98,s:500,i:298&tx=75
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71

72. Newer Challenges: Paradigm Shift
Trend of Pharma Companies Setting Own Hospitals
Why Would They Buy
Crucial & Costly Products From Others
Hospital Chains Getting Own Products Manufactured
Ophthalmic Lenses
Medicines
Bound to Restrict the Space for Many Companies
72

73. Challenges In Designing Business Strategy
1. Trade Business or Tender Business? Government
Business or Corporate Hospitals?
2. Hospitals: Generally Injectables,
3. Trade: Oral Medications
4. Difficult to Evade Retailer Business, as…. Batch Scale
Up/ Batch Economy Possible Only with Liquidation….
5. Quicker Liquidation: Fresh Batch on Shelf
6. Reaching Private Practitioners, Repeat Calls?
7. Ideal Blend of Call versus Business Needs to be
Decided
73

74. Perspectives: Field Personnel Vs Organization
The Mnemonic: SPICE Explains the Conflict
• Salary on Time • Sales/Revenue
• Product/Price • Profit
• Incentives • Innovation
• CRM • Competence &
(for Important Clients) Commitment (from the
consistently Personnel)
• Expenses • Engagement With Key
Reimbursement Customers &
on time Regularly Institutions
74

75. To Be or Not To Be?
1. KAM is Not a Transaction but a Win-Win Model,
2. Not Applicable to Every Organization
3. Choose Model Suitable for the Organization
4. The KA Manager Has to be a Senior Position
5. Select & Train The Key Accounts Managers
6. Nurture & Retain The Key Account Managers
7. Support from Sales & Marketing Absolute Must
8. Regular Auditing to Select / Deselect Accounts
Desirable as Key Account = Profitability
9. KOLs May or May Not Be Key Accounts (Direct
profitability) but Worth Following……
75

76. Wonder, Who Can Possibly Handle the Job?
Can Group Product Managers be Groomed?
As they Help Define & Set Targets
Know Products & Aware of Quality Profile
Know Finances & Company Policies
Can Integrate & Reverse Integrate Seamlessly With
Mfg./QA/ Finance/Sales
Why Not Have Jr. Product Managers at Metro Cities?
Can Train Newly Inducted Personnel
Work in Field in the Region
Generate Feedbacks Useful for HO
76

77. Re-orientation of the Focus is the Key
Use Modern Techniques to:
* Convert Data in to Useful Information
* Audit Customers / Accounts
*Select/Deselect According to Results Dispassionately
77

78. KAM Does Not Fail
It is the Dilution
of Focus on Basic Attributes
&
Misfit With Business Type
Which
Derails the Process
Thank You
78