Bayer healthcare pharmaceuticals

BAYER HEALTHCARE PHARMACEUTICAL Inc. CASE STUDY
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Abstract
Bayer Healthcare Pharmaceuticals stands out as one of the international leading,
innovative corporation in the healthcare and medical products. It conducts its major activities can
be identified within four continents, that is Europe, Asia, Latin America and America. Bayer
focuses on five research areas such as Oncology, Hematology, diagnostic imaging, Cardiology
and Men’s and Women Care. One of its corporate objectives is to discover and produce products
which will improve human health globally. This entails diagnosis, prevention and treatment of
diseases. This paper provides an insight into the new marketing communication created by Bayer
to improve the sales of Betaseron. The sales force was trained using an online simulation video
game, commonly known as rep race. The paper focuses on initiatives taken by the marketing and
sales team of Bayern HealthCare pharmaceutical Inc. to increase the sales of multiple sclerosis
(MS) drug Betaseron in 2007. Highlight of issues and challenges in improving sale force
effectiveness have been made. The paper also discusses the issues and challenges in training and
motivating the sales force. Through the various discussions presented in this paper, an analysis of
the pharma selling environment in the 21
st
century and the implications for the sales and the
organization is also provided.
Explain how personal selling supports the promotional mix
Personal selling refers to the technique of selling that employs the personal efforts of a
salesperson to found and develop good business relationship with a particular customer. This
approach is also known as personalized selling. The method aims at getting to know the
customer well, evaluate their needs, tastes and preferences and then customize the sales process
so as to accommodate the specific needs of the customer identified (Cant and Van
Heerden,2004) . This approach banks on the idea that the offer of the salesperson fully satisfies
the goals of the customer. It is also significant to note that this approach is quite different from
other techniques of promoting sales in that contact with the customer acts as the foundation of
the technique. The face to face interaction with the customer helps to build trust which is
essential to boost sales. The Bayern healthcare sales force was trained through an online video
games tool so as to acquire the skills needed to sharpen their interaction skills to boost sales.
These skills aimed at promoting sales through their face-to -face interaction and also through
other electronic media promotional mix as in the case of Bayern healthcare pharmaceuticals sales
promotion efforts.
Evaluate and highlight the sales forces and personal selling importance for Bayer
HealthCare Pharmaceuticals Inc.?
After creating new marketing communication, Bayern Pharmaceuticals concentrated on
training its sale force through an online data-driven simulation video game sales tool. This
gaming platform was known as Rep race. The idea behind this online simulation game was to
improve the interaction skills of the sales force so as to polish their personal selling. The
simulation game was rich in educational and motivating values with essential metrics to
individual and collective performance aimed at promoting personal selling. Personal selling in
this case aimed at increasing the sale of multiple sclerosis (MS) drug Betaseron. The simulated
online video games aimed at creating the much needed breakthrough of attitudes among the sales
force and also boost their knowledge on Betaseron. With the proper attitude and the correct
knowledge on the product, the sales force could be in a better position to encourage the
customers to purchase the product. The confidence exhibited by the sales force help to build trust
which customers need when purchasing drugs which they are not so popular in the market.
Personal selling was also important for Bayern Pharmaceutical in that it helped the company
obtain high customer attention leading to improved sales.
Compare buyer behavior and the decision making process for Bayer HealthCare
Pharmaceuticals Inc.
It is reported that there was significant growth in the sales of Betaseron which the
Analysts directly linked to the new communication campaign which was implemented. The
campaign was facilitated by the company’s sales team. It is significant to mention that before
implementing the communication campaign, the sales team had to undergo training through an
online video game sales tool. The online video game training was a strategic decision of the
company aiming at increasing sales due to various challenges in the pharmaceutical selling
environment. The company aimed improving its sales and its decision making process had to
innovate ways to make this target possible. By improving the personal selling skills of its sales
force, the company believed that it would positively influence the buyer behavior. Their
speculation came true simply because customer’s behavior is influenced by the persuasive
impact of the sale person, their interactivity, ability to develop a relationship and most
importantly their specialist knowledge on the drug they are selling. The specialist knowledge
exhibited by Bayern sales team after training must have significantly contributed in influencing
customer’s decision to purchase Betaseron.
Analyze the role of sales teams within marketing strategy for Bayer HealthCare
Pharmaceuticals Inc.
From the improved sales of Bayern Healthcare pharmaceuticals, it is evident that sales
team have a significant role in promoting the sale of a certain commodity. The online video
gaming played a significant role in boosting the sales team knowledge on Betaseron. This
implies that the sales team should be well conversed with specialist knowledge of the product.
Therefore, their role is to provide the buyers with all the information they need while purchasing
the product so as to create the value for the product. The other role of the sales team is to
establish a rapport with the buyer. They act as a front-line troop of the company and they play a
significant role in painting the image of the manufacturer in the mind of the buyer (Du plessis
and Rousseau, 2003). It is the role of sales team to collect and analyze valuable information
pertaining what is important to the buyer with reference to features and pricing. They sales team
should also concentrate on analyzing products that fully satisfy the customer’s needs and wants.
Sale should always be presented as a means of satisfying consumer’s needs and wants.
Show the appropriate techniques and suggest Bayer HealthCare Pharmaceuticals Inc. how
sales force do major roles in sales development?
The other appropriate technique which Bayer HealthCare pharmaceuticals would have
alternatively employed is known as direct marketing. Direct marketing is a sales method
whereby the manufacturer sells the products directly to the consumer without involving sales
team (Sjodin, 2001). This technique is majorly used in online marketing. In most cases, the
manufacturer initiates the contact and in fact proposes the commodity to the consumer. This
technique is often termed as a controversial way of approaching customers. The sales force
should make generation of income their primary objective. They should engage customers in all
significant steps of business relationship. They should create a friendly interactive podium with
the new clients and provide the customers with all the relevant knowledge about the product. It is
their role to maintain good reputation with already existing customers. It is the role of sales
representative to re-engage former customers through various advertising strategies such as
promotions and discounts. It is important also to build and maintain trust throughout the entire
business relationship. It is therefore important to employ a competitive sales force in promoting
sales.
Justify and analyze the techniques you have suggested in M1 to Bayer HealthCare
Pharmaceuticals
Direct marketing is a form of advertising where by the company reaches out to customers
without using intermediaries. It is considered as a controversial way of addressing customer’s
needs in that the customer’s tastes and preference are not considered before approaching them.
However, it is advantageous in that it is possible to reach a significant number of customers at a
considerably low cost. It a marketing campaign that aims at attaining greatest level of response
using minimum cost. There are also some disadvantages associated with marketing strategy. It
has been noted that people are turning out to be less responsive to much of direct marketing
techniques. Advertisements sent as mail to potential customers are treated as cyber spam and
sent directly to recycle bins. There is also increased use of spam filters which treat adverts as
spam consequently making the advert fail to reach the potential customers (Sjodin, 2001).
However, it is important to acknowledge that this is among the few marketing techniques which
can be employed in reaching a segmented market. A segmented audience can refer to
geographical segmentation or response generated segmentation.
Prepare a sales presentation for a product or service of Bayer HealthCare Pharmaceuticals
Inc.
For the purpose of this research, I will prepare a sales presentation of Kogenate, the
second best selling product of Bayer HealthCare products after Betaseron. Kogenate is a
pharmaceutical which in 2012 recorded a sale of Euro 1,182. In making a sales presentation for
Kogenate it is important to consider four main elements. The first element is rapport.
Establishing a positive rapport is aimed at building the trust which will make the customers feel
that they are on the same side with Bayer HealthCare. This implies that if the Kogenate does not
function as promised, then the Bayer will also have something to lose. The second step involves
establishing the need of the consumer base. It is important to identify what factors will encourage
the consumer to listen to the medical significance of purchasing Kogenate. The third step
involves creating value of the Kogenate. This largely depends on the specialist knowledge of the
sales team. It is upon them to educate the potential consumer on the features, benefits, side
effects or even shelf life of Kogenate. It is important for the sales team to exhibit credulity so as
to eradicate doubt and to ensure that the customer belief that the benefits of purchasing Kogenate
will be more than any possible side effects.
Carry out sales presentations for a product or service of Bayer HealthCare
Pharmaceuticals Inc.
In carrying out a sales presentation for Kogenate, one needs to speak to the customer to
so as to come up with a picture of what to exactly inform them about Kogenate. It is also an
essential part in building reputation. The sales person should learn to listen and ask relevant
questions when carrying out a product presentation (John, 1999). It is important to work out on
main messages. Sort out the message to deliver to the customer into sections, constructing
sensible case to the customer convincing them to purchase the product. It is also important to
think about any possible questions the consumers might raise about Kogenate and make their
logical answers part of the presentation. While carrying out the sales presentation for a product
of Bayer, it is important to identify other competitors offering the same product with the aim of
distinguishing Bayer’s product from those of the competitors. After carrying out the presentation,
the handouts can be distributed to the consumers in case they need to make any future references.
M3: Take responsibility to do a small secondary research to find how the sales force
engagement works in the same industry as Bayer HealthCare Pharmaceuticals Inc. and
include them in the presentation.
One way through which Bayer can increase their sales budget is by training their sales
rep on ways to provide doctors with research which is of immediate help to them. Research
indicates that even doctors require tools to aid them quickly locate relevant and necessary
information (Nconan, 1998). By providing doctors with this information, Bayer will build strong
reputation with the doctors they serve. Through providing necessary information to the doctors,
Bayer will be in a position to create the emotional connection needed for loyalty. This will make
Bayer Pharmaceutical distinguishable from the rest of their competitors. The sales force which
view itself basically as medical knowledge aids to the doctor act an entirely unique role than
those who offer favors with an aim of increasing their sales. Bayer sales force should make effort
to provide doctors with perfect knowledge at the most appropriate time and they should provide
in an emotionally warm, connective way. Research indicates that doctors are likely to alter their
prescription behavior in the event that they feel emotionally linked with a certain sales force.
What are the activities taken in consideration with importance when conducting the
secondary research?
The activity that was considered when conducting the secondary research was training of
the sales force. From earlier discussion, it was found that a trained sales force plays a significant
role towards achieving growth in sales. A good example to support this argument is the case of
Bayer Pharmaceuticals. Research indicates that by 2012, Betaseron stood out as the best selling
product of Bayer pharmaceuticals. Analysts directly link this boosted sales to the online video
gaming which the sales force was engaged into before launching the personal selling campaign.
It is argued that the video game provided the sales team with the deep specialist knowledge
needed to connect with both the patients and the doctors. Therefore, when conducting the
secondary research for the purpose of this report, the main area of focus turned out to be training
of sales force. Training of sales force remains one of most important strategic activities towards
the achievement of increased growth in sales. It also serves a significant purpose in improving
the image of the company.
Explain how sales strategies can be developed in line with corporate objectives of Bayer
HealthCare Pharmaceuticals Inc.
One of the corporate objectives of Bayer HealthCare is to find out products that will
improve the living conditions of human life worldwide through diagnosis, prevention and
treatment of diseases. As one of the leading pharmaceuticals company, Bayer focuses their effort
where they can have significant. Bayer maintains one of the longest histories in providing
Medicare that can be trusted. In conjunction with this corporate objective, one of its most
distinguished sales strategy is diversification of its product and training of its sales force. By
diversification, Bayer aims at broadening its market and at the same time observes its corporate
objectives of improving human life. Recent research indicates that Bayer Inc. has channeled
approximately $ 50 million CDN in conducting research and development (Austin, 2008). This
serves both the two mentioned purposes, the corporate objective of improving human life and the
sales strategy of heightening its sales. Together, these two purposes serve a significant role
improving the life of mankind providing medical products that prevent human diseases, protects
crops and generally develop quality performance materials for use in various fields of life.
Explain the importance of recruitment and selection procedures for Bayer HealthCare
Pharmaceuticals Inc.
An effective recruitment and selection procedure is one of the management functions that
will enable Bayer HealthCare Pharmaceuticals attain its corporate objective. If Bayer picks the
right employees for different jobs, provide them with the necessary training and treat them in a
decent professional way, the employees will not only produce a quality and timely output but
also remain loyal employees for the employees (Fien et al, 2008). It reduces labor turnover. This
implies that the organizations earlier and ongoing investment in these employees is well
compensated. A flawed recruitment and selection process is definitely a wasteful undertaking for
the organization. In order to maintain its competitive strength, Bayer must ensure it maintains a
spirited recruitment and selection process. A candidate’s technical competence should be among
the top factors to be considered when selecting a candidate from the pool of applicants. Being
one of the leading pharmaceuticals, Bayer should look for individuals who are well informed,
individuals with superior judgment abilities and team player. Personal selling is a marketing
strategy that entirely relies on the intractability skill of the employee who in this case acts as the
representative of the organization.
Evaluate the role of motivation, remuneration and training in sales management for Bayer
HealthCare Pharmaceuticals Inc.
As discussed earlier, training in sales has played a significant role in increasing the sales
of Bayer. This is evident from the towering performance of Betaseron in sales market which
analyst directly contribute to the online training which the sales team received before
implementing the campaign for this drug. Remuneration can be considered as one the techniques
employed in motivating employees. Motivation is exceptionally important for the organization
because it boosts level of efficiency of the work force. It fills the gap between ability and
willingness (Ashraf et al, 2005). The efficiency of the employees leads to attainment of corporate
objectives of Bayer. This is because there is efficient utilization of resources and also the
employees have become goal oriented. Remuneration also leads to steadiness of workforce
significantly reducing the labor turnover. The employees feel appreciated. This means that
motivated employees form a strong cooperate team. A strong team offers the best environment
for creativity and innovation which in turn plays an extremely significant role in sharpening the
competitive edge of the organization. It is also important to acknowledge that motivated
employees are optimistic and extremely ready to face challenging situations.
Explain how sales management organize sales activity and control sales output
The sales management plays a significant role in organizing sales activity and controlling
the output. One of the leading responsibilities of the sales management is setting objectives for a
sales-force. The sales manager should formulate attainable goals for the sales team. This can be
achieved by evaluating various marketing mix in use and identifying ways to effectively use
them (Jabber and Lancaster, 2000). The manager should measure the potential of sales team by
employing the various available forecasting methods and tools. After setting up the goals for the
sales team, the sales manager should focus on strategies to achieve them. This process is
commonly referred to as planning, budgeting and organizing. Having the best plan in place and
the accurate budget, the sales manager should now advance on implementing the plan keenly
respecting the structure of the organization. It is also important for the sales manager evaluate
and control the plan in place. This aims at improving any deviation from the intended sales plan
in consideration of different factors such as territory, product line, market and volume. In other
words, it is the duty of the sales manager to ensure that the organization observes to its origin
goal-plan.
Explain the use of databases in effective sales Management
A sales management database provides the organization’s management with a quick, easy
and effective means to manage the pipeline. This database makes use of various application
purposed designed for forecasting, contact management among other functions which play a
significant role in aiding to analyze opportunities (E learn limited,2009). The use of database
enables the organization to expand its horizon. It is possible to quickly analyze the performance
of the organization and easily plan activities to aid improve future performance. The use of data
base enables the sales management improve customer relationship. The database gives the
management the ability to track their past and present deal details consequently aiding in
understanding the customer properly. It is therefore possible to efficiently segment the market
and provide customized products and services which effectively address the specific needs and
wants of the consumer. It also helps the organization improve customer communication and
makes the management feel more in control of the organization. For an organization like Bayer,
it is impossible to have an effective management without the use a sales management database.
Develop a sales plan for a product or service of Bayer HealthCare Pharmaceuticals Inc.
For the purpose of this paper, I will develop a research a sales plan for pharmaceutical
product, Bayer being one of the leading seller of pharmaceutical product for in HealthCare
pharmaceuticals. In developing a sales plan for this product, first it is important to determine the
Bayer’s ideal customers for this product. For our case, this drug can be used for people of all
ages. Secondly, analyze the Bayer’s current position to deduce the response of the market to any
present sales activity of Bayer. Third, making the decision on whether to have new line of
product or make use of the already existing ones. Fourth, draft the expected amount of income
from the planned sales. It is important to have a realistic goal which is attainable. Fifth, proper
strategies for attaining the sales goal should be laid down. Sixth, a list of staff and resources
needed to actualize the strategies should be in place. Eventually, any assumptions which have
been made when formulating the sales plan for the sale of the product should be declared. This is
for the purpose of evaluation and control process. That will help explain any deviations or
unexpected occurrences.
Investigate opportunities for selling internationally for Bayer HealthCare Pharmaceuticals
Inc
Bayer stands a significant chance to be the leading HealthCare consumer care. Its
opportunities for selling internationally will be significantly enhanced by insights and
innovations in medical research. It is also important for Bayer to interact frequently with all
members of international clinical development teams. Bayer should also provide written
scientific answers to inquiries made to them. It is also important for Bayer to consider expanding
its horizons such that it conducts its activities within other continents apart from Europe, Asia,
Latin America and America. Research indicates that Bayer focuses on only five research areas
such as Oncology, Hematology, diagnostic imaging, Cardiology and Men’s and Women Care.
This company has the potential to expand their research beyond only these five areas for the
purpose of increasing their sales intentionally. The company should also focus on analyzing the
outcomes of its Strength, weaknesses, opportunities and threats analysis so as to identify means
to penetrate into the global markets. The company should also work on increasing the number of
their key operational heads, manufacturing facilities and locations. Research indicates that Bayer
products have global market and some places suffer lack of those products.
Investigate opportunities for using exhibitions or trade fairs for Bayer HealthCare
Pharmaceuticals Inc
Research indicates that use of exhibitions and trade fairs attract a significant audience in
the rapidly growing pharmaceutical business. Bayer being one of the pharmaceuticals which is
considered as a global investment can use exhibitions in broadening their customer base.
Therefore, exhibitions can be considered as an ideal avenue for improving sales. Exhibitions also
provide a convenient podium whereby innovators get a chance to interact and exchange business
knowledge. Bayer can use this opportunities to obtain market updates for the purpose of
improving their product. There are some exhibitions like Pharmchina which attract exhibitors
from all over the World to showcase their latest products. Bayer customers can also seize
exhibitions opportunities to grab first hand information from innovators so as to boost their trust
on certain commodity. Exhibitions and trade fairs therefore provide a supportive campaign to
market the products and services of a company. The success of the Bayer’s various marketing
strategies such as the personal selling strategy for Betaseron indicates that Bayer can also use
exhibitions and trade fairs to boost their sales. Exhibitions provide a face-to-face interaction with
hundreds of customers (Maskell et al, 2004).
Apply your idea, thoughtfulness and innovative thinking to recommend selling
improvement for Bayer HealthCare Pharmaceuticals Inc.?
In my own opinion, Bayer should make use of other techniques of attracting new
customers such offering free samples to customers. Providing samples to customers help spread
the new product and might also influence the customers buy other products of Bayer apart from
the new ones. Bayer can also set up a customer reward scheme. The idea behind this scheme is to
appreciate major customers and enhance their loyalty for future purchase. The customers should
also be provided with an inside scoop. Bayer sales force should make their customers inside
scoop through various means such as mailing them among others. Bayer should also train its
sales force to upsell. This calls for the use of all the available persuasive techniques to make the
customers feel the value of the product. They should also make the pharmaceutical products
convenient for the customer to purchase. Bayer sales management team should give their sales
team a reason to make efforts to increase their sales. This refers to the use of various motivating
offers to the employees as a means of appreciating their efforts.
Conclusion
From the case study of Bayer pharmaceuticals, it can be concluded that sales force
training plays a significant role in improving the sales of a company. A trained sales team has the
required specialized knowledge needed to persuade the consumer. Training also sharpens the
interactive skills of the sales team enabling them to build the much needed rapport for business.
Bibliography
Ashraf M. Attia, Earl D. Honeycutt JR, & Mark P. Leach. (2005). A three-stage model for
assessing and improving sales force training and development. Journal of Personal Selling and
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Austin, M. (2008). Business development for the biotechnology and pharmaceutical industry.
Aldershot, England, Gower.
Fien, J., Maclean, R., & Park, M.-G. (2008). Work, learning and sustainable development
opportunities and challenges. Dordrecht, Springer.
Cant, M. C., & Van Heerden, N. (2004). Personal selling. Lansdowne, South Africa, Juta.
DU Plessis, P. J., & Rousseau, G. G. (2003). Buyer behaviour: a multi-cultural approach. Cape
Town, Oxford.
Griffiths, Andrew. (2009). 101 Ways to Sell More of Anything to Anyone Sales tips for
ndividuals, business owners and sales professionals. Allen & Unwin
Jobber D and Lancaster G (2000) Selling and Sales Management (FT/Prentice Hall,)
ISBN: 0273674153
Johns T(1999) Perfect Customer Care: All You Need to Get It Right (Random House,) ISBN:
0099406217
Elearn limited (GREAT BRITAIN). (2009). Recruitment and selection. Amsterdam
Maskell, P., Bathelt, H., & Malmberg, A. (2004). Temporary Clusters and Knowledge Creation:
The Effects of International Trade Fairs, Conventions and Other Professional Gatherings
Noonan C Sales Management (Butterworth Heinemann, 1998) ISBN: 0750633611
Sjodin, T. L. (2001). New sales speak. New York, John Wiley.
www.business.com/guide/sales.
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www.iops.co.uk Institute of Professional Sales
www.thetimes100.co.uk multimedia resources

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