CHAPTER - FOUR

PROBLEMS OF MEDICAL REPRESENTATIVES IN THE

DISTRIBUTION OF PHARMACEUflC/IL PRODUCTS

4.1 INTRODUCTION

4.2 PROBLEMS RELATING TO DOCTORS

4.3 PROBLEMS RELATING TO WHOLESALERS

AND RETAILERS!

4.4 GENERAL PROBLEMS OF MEDICAL REPRESENTATIVES

4.5 CONCLUSION
f

NOTES AND REFERENCES

i
 CHAPTER - FOUR

PROBLEMS OF MEDICAL REPRESENTATIVES IN THE

DISTRIBUTION OF PHARMACEUTICAL PRODUCTS

4.1 INTRODUCTION

In the chain of intermediaries, the medical representative forms the

only link between the doctors, wholesalers, retailers and the

manufacturers. Thus he has a very vital role to play in representing his

company and its products. Hence, any problem faced or created by a

medical representative can have adverse effects on the sale. He can

make or mar the fortunes of his company. So it is imperative that the

senior officials of the company pay attention to the problems of medical

representatives and find amicable solutions, instead of making them the

scape-goats for the company’s poor sales performance.

A medical representative is designated differently as Professional

Service Representative ( PSR), Professional Service Officer (PSO), Field

Officer, Field Executive, Area Sales Officer etc. Call them as you like!.

The nature of their job remains unaltered. The functions of a medical

representative includes:

• Calling on doctors for detailing, following up for prescription and

keeping doctors posted of the latest drugs and supply of necessary

informations and literature,

134
 CHAPTER - FOUR

P»SLE1§ OF MEDICAL REPRESENTATIVES

IN 'DISTRIBUTION OF PHARMACEUTICAL PRODUCTS

4.1 INTRODUCTION

In the chain of intermediaries, the medical representative forms the

only link between the doctors, wholesalers, retailers and the

manufacturers. Thus he has a very vital role to play in representing his

company and its products. Hence, any problem faced or created by a

medical representative can have adverse effects on the sale. He can

make or mar the fortunes of his company. So it is imperative that the

senior officials of the company pay attention to the problems of medical

representatives and find amicable solutions, instead of making them the

scape-goats for the company's poor sales performance.

A medical representative is designated differently as Professional

Service Representative ( PSR), Professional Service Officer (PSO), Field

Officer, Field Executive, Area Sales Officer etc. Call them as you like!.

The nature of their job remains unaltered. The functions of a medical

representative includes:
1

• Calling on doctors for detailing, following up for prescription and

keeping doctors posted of the latest drugs and supply of necessary

informations and literature,

134
 **

• Appointment of wholesalers.

• Keeping contacts with retailers and impressing upon them on the

need to stock his company’s products.

• Reporting to the company regarding his daily visits to doctors,

wholesalers and retailers.

• Keep the company posted of all the new and important developments

in his area of operation.

*• t
• Help his company formulate marketing strategies taking into

consideration the strategic move of the competitors.

• Keep himself abreast of the latest developments ‘.by attending

seminars, training courses, lectures by experts etc. This will facilitate

him in his job enrichment and enable him to disduss with doctors at a

higher intellectual plane. Thus he will have better and easier access

to doctors and his detailing will carry more credibility.

• Co-ordinate the activities of wholesalers, retailer and ensure that their

problems like replacements, credit notes are sorted out amicably.

• Carry out his duties diligently and honestly to achieve his target.

A medical representative, for success, is expected to be endowed

with good technical knowledge, pleasant personality and good

communication skills. Besides, he must also be endowed with physical

and mental toughness, so very essential to undertake arduous tours and

face adverse situations which might crop up due to antipathy of some

doctors, wholesalers and retailers.

135
 As can seen from the above functions, the role of a medical

representative is all-important for the success of a pharmaceutical

company. Hence, all the problems of medical representatives have to be

attended to and sorted out without procrastination. -

In this chapter, the problems of medical representatives in relation

to their company, doctors, wholesalers and retailers are presented.

Medical representatives are expected to have a science

background and pharmacy diploma /degree be prefered. Diploma or

degree in management is equally treated as an added qualification.

Apart from academic qualification he is expected to be fluent in English,

as it is the only language of keeping contacts with all. Similarly, he

is expected to know maximum languages. Now-a-days medical

representatives .jobs are treated not only as an employee but it is

becoming a profession as more and more specialisation is coming up in

this field. For the job of a medical representative certain qualities are

required to be possessed e.g. physical, mental, social and hence all the

fundamental principles prescribed for a salesman are in a full force

applicable to medical representatives. The lady medicai representatives

are also observed coming in this profession of salesmanship. Avinash

Barde in his article says,"Medical representatives are a very important

part of pharma sales promotion. From air conditioned training room to

the market place is quite a change for them. Large investments are

136
 1
made to train them-up." Shri.V.Srinivasan has given some tips to

medical representatives to be most successful in their lives. "Generate

prescriptions, creat genuine demand to achieve your sales norms and

2
not by any shortcut means.” The tips are as follows:

• If your doctor’s call norm is ten doctors a day, please try to achieve

it everyday without fail, with good quality detailing because that is

the right way to generate the prescriptions by the doctors and

winover the confidence of not only doctors but also of retailers and

thereby wholesalers.

• Don't fiil up some doctors names for the sake of sending a doctor’s

list to the marketing department. Please survey, identify and then

select every one carefully suitable for your product.

• Ensure that all querries from your doctors are attended.

• Do not dump goods in the market without generating adequate

prescriptions.

• Invoice only valid orders which are duly signed and stamped by the

distributors or stockists.

• Follow credit policies of your organisation as strictly as possible.

• Don't try to mislead your head-office with inflated secondary sales

figures to get a temporary relief.

137
® Fill up important reports like daily call reports, monthly sales

report, secondary sales reports etc.

• Train and refresh ail your field force adequately so that they are

equipped with better product knowledge, trained and confident.

• Production, quality control people generally do not compromise on

good manufacturing practices (GMP) standards whatever may be the

pressure. Similarly if the sales or marketing people also take good

sales or marketing practices a little more seriously and try to

implement it in the right earnest without succumbing to the month end

sales pressure."

Table No. 4.1

t
NEED OF SERVICES OF MEDICAL REPRESENTATIVES

Date of Joining No. of M. Representatives Percentage

Before 1985 04 0^.09
1985-1990. 06 1,2.64
§
00

1990-1995 ' 19
1995-1997 15 « • 34.09
Total 44 i. . 1'00
\
H
The above table gives us the information':of. number of medical

representatives working .in various pharmaceutical companies durign,

• , ,. ■ 1. ■ .i
1 I' . •
I, i ’ i.

before & after the reference period. We can observe' the increasing
■' i;' '<

>■ . ■ .i i ij
trend of medical representatives services. It means, ;the need of< services
■ 1 i 1
of medical representatives is more as the number of . pharmaceutical

companies, and the variety of pharmaceutical', products are being

introduced in the market with the help of medical representatives only.

138
 Table No. 4.2

TYPES OF CUSTOMERS OF MEDICAL REPRESENTATIVES

Type of Customers No. of Medical Percentage

Representatives
Doctors 01 02.27

Doctors, Wholesalers and Retailers 38 86.36

Others (Institutional Buyers) 03 06.82,

Doctors and Wholesalers 02 04.55

Total 44 100

This table Indicates the various types of customers, the medical

representative is required to deal with on behalf of the companies.

Approximately, 93% medical representatives deal with doctors,

wholesalers and retailers and approximately 7% medical representative

deal with other categories of customers. It means that they are required

to visit institutional buyers e.g. Government Hospitals, Public Health

Department, Zilla Parishad etc. similarly private trusts, co-operative

society hospitals, polyclinics etc., where the chances of getting bulk

business is more for medical representative. In fact, all the above

mentioned types of customers of medical representative are interlinked

with each other in distribution of pharmaceutical products. Hence the

medical representative is expected to keep rapport with all of them

simultaneously.

139
 Table No. 4.3

CORPORATE-APPRAISAL AND WORKING OF MEDICAL

REPRESENTATIVES

Possibility of Working Corporate-Appraisal Total Percentage

with Two Companies Yes No
Yes 01 00 01 02.27
No 38 05 43 97.73
Total . 39 05 44 100
Percentage 88.64 11.36 100

In this table, it is observed whether a medical mepresentative

working for a single pharmaceutical company can work for other

companies also at the same time? and similarly it is observed wheher

companies go through corporate appraisal policy or not? It means,

whether the companies make the introspection of their own working,

market responses, working of their medical representatives, product

improvement, product life cycle etc. Majority of medical representatives

do agree that the corporate-appraisal is being undertaken by their

- respective pharmaceutical companies but no company allows them to

work for two or more companies at-a-time. It means the medical

representatives are expected to devote for one company at-a-time,

otherwise strict actions can be taken by such companies on such medical

representatives.

140
 Table No. 4.4

TRAINING AND REFRESHER COURSES

Refresher Courses Undergoing Training Total Percentage

Yes No
Yes 36 03 39 88.64
No 05 00 05 11.36
Total 41 03 44 100
Percentage 93.18 06.82 100

In this table, the tendency of pharmaceutical companies . for

imparting training of salesmanship to their own medical representative

is observed and also it is seen whether there are any refresher courses

for the upliftment of the status/dignity of medical representative or not?

Majority of medical representatives admit that they can be sent for

training and refresher courses not only for the improvement in their

Salesmanship qualities but, for the betterment of companies even. The

expenses of such courses are borne by the respective pharmaceutical

i * 1

companies. It means the pharmaceutical companies which do not allow

their medical representatives to undergo training and refresher courses

severely affect in respect of sales, as their medical representatives may

not have updated market and product knowledge.

4.2 PROBLEM RELATING TO DOCTORS

So far as doctors and medical representatives relationship is

concerned, the doctors do have dominating position because of the

social status bestowed on them. Thus most of the times, it is

complained by medical representatives that the doctors are taking undue

141
advantages of their position. There is no fixed timing for the visits of the

doctors as a few doctors, having very good medical practice, are so busy

in their practice, that they ask the medical representatives to officially

visit them late at night according to their own convenience, which may

adversely affect the time schedule and lives of medical representatives.

To prescribe a product of a particular company is in the hands of

doctors. The pharmaceutical companies may incurr heavy expenditure

on advertising propaganda and sale of a product including the

remuneration to be paid to all the people in sales machinery, but all

this goes in waste when the medical representative observes that his

products are allowed by doctors to be substituted.

Avinash Barde says in his article "I represent the best company

with best products, but I am shocked when our products are substituted."

Similarly in the same article he has cited the another medical

representative’s reaction, "I am a chemistry graduate with diploma in

Business Management, it is painful to wait outside the counter of a

medical shop or wasting time in hospitals or dispensaries to contact

3
doctors." From these reactions, it is evident that very few doctors care

for their relationship with medical representatives. Other doctors use the

physician samples of medical representative but fail to take into

consideration the far reaching effects of allowing the substitution.

Similarly they keep all these medical representatives along with their

sales executives detained for a considerably long time outside their

consulting room.

142
 Table No. 4.5

NORMS OF DISTRIBUTION OF FREE SAMPLES

Norms Adequate Supply and Sales Quota Total Percentage

Yes No
Yes 32 07 39 88.64 .

No 04 01 05 11.36

Total 36 08 44 100

Percentage 8/1.82 18.18 100

. In this table the researcher has tried to tackle the issue of free

samples in different ways. On the one hand, the possibility of having

particular norms for the distribution of free sample is checked, whereby

82% medical representatives have responded in favour of it, it means the

pharmaceutical companies while making an appointments of-medical

representatives do keep certain fixed norms of distribution of free

samples for their concerned parties. No doubt, there are certain norms

of distribution of free samples to physicians only, which may go on

changing from company to company but, generally i't is 5 to 10 % of the

sales value. Owing to the misuse of free samples and inadequate

supply of free samples the medical representative may not get the

expected business by the doctors.

143
 Table No. 4.6

MODES OF CONVINCING TO DOCTORS AND THEIR RESPONSES

Modes of Convincing Do ctor’s Total Percentage

Res Donses
Yes No
Stating Plus Points & Merits 01 02 03 06.82

Effective Detailing 00 02 02 04.55

Free Samples & Gifts 06 32 38 86.36

Others 01 00 01 02.27

Total 08 36 44 100

Percentage 18.18 81.82 100

In this table, the medical representatives modes of convincing

doctors have been shown horizontally and the responses given by

doctors for their modes is shown vertically. The medical representative,

may emphasise on the merits of their products or they may state the

plus points, secondly they may offer some minor gifts to the doctors in

order to persuade them to prescribe their products thirdly, the medical

representative may have an effective detailing power through which they

could succeed in getting a better response by doctors. Fourthly, the

free samples on behalf of companies can be distributed by medical

representatives to doctors and lastly there are other modes of

convincing e.g. wine and dine policy even that can be adopted, for

effective convincing. Much depends on doctor’s whim. He may prescribe

the product only when he deems it fit to use for his patients, irrespective

of the heavy expenditure incurred by the company and several modes of

convincing adopted from time to time.

144
 4
S. S. Nadkarni in his book has laid down "Myths and Realities”

• Some doctors are very difficult to meet Reality : Busy, Senior

practitioners including specialist fall into this group"

• Doctors prescribe products for a day or two or . three after the

medical representatives visit and then stop. Reality : Frequent visits

are called for it.

• If a product being launched is popular in advanced countries or if

it is manufactured by well known company or if the doctor is using

other products of that company he will then, automatically use the

new product Reality :Each product is sold on its own merit.

• Doctors stick to products of only certain Companies. .Reality : Doctors

are reluctant to use products of new Companies..

• 'Brand loyalty is strong amongst doctors' or

• Doctors are reluctant to change the products they regularly

prescribe Reality : A little more thoughful and perhaps a aggressive

approach can change a doctor's preferences.

• Doctors use only two or three or some fixed number of products of

each company Reality : what doctor remembers is the indications

and the products for them and writes down a prescription.

145
 e Junior doctors,post graduate students and new comers to the medical

profession blindly follow the prescriptions of seniors. Reality : It is

true that many doctors do keep a watch for new formulations in the

prescriptions of their seniors.

. • More frequent calls, popularly referred to as 'repeat visits', yield

medical representative more business Reality : In the case of busy

practitioners, repeat calls are difficult."

Table No. 4.7

SPECIAL CONCESSIONS OFFERED BY MEDICAL

REPRESENTATIVES

Special Concessions Whether Allowed by Total Percentage

Companies
Yes No
Yes 25 00 25 56.82

No 00 19 19 43.18

Total 25 19 44 100

Percentage 56.82 43.18 100

In this table, the possibility of offering special concession

on behalf of company, to doctors through medical representative, is

observed. Most of the pharmaceutical companies authorise their

medical representatives to allow special, concessions to doctors for

getting expected business response. 56.82% medical representatives

have accepted that they offer such special concession for getting

business whereas 43.18% of medical representatives say that we never

146
indulge in, in this way. It means, they are not empowered by their

respective companies to allow such concessions to any doctor which they

deem fit. It means it is a problem of medical representatives relating to

doctors that the companies which do not allow their medical

representatives offer special concessions to doctors, are the loosers.

Table No. 4.8

FREQUENCY OF MEDICAL REPRESENTATIVE’S VISITS

Frequency of Visits Daily Reporting Total Percentage

: Yes . No
Yes 42 02 44 100

No 00 00 00 00

Total 42 02 44 100

Percentage 95.45 04.55 100

In this table. it is tried to observe how frequent the medical

representatives are in contact with doctors, how many doctors per day

a medical representative, contacts and what are the expectations of the

companies regarding doctors and chemists calls by medical

representatives. In the table mentioned above chemists call per day

figures have not in a partifcular range have shown and it is shown as to

how an medical representative, may communicate about his daily work

<

to the companies. It is'observed-from the above table that every medical

representative, is expected to make a per-day call of 10-15 doctors and

submit their daily report 95.45% medical representatives send their

daily reports whereas 4.55% medical representatives never send their

147
daily reports. It means, they have been allowed to report their

companies once in a week, fortnight or monthly even. On an average a

medical representative makes 10 to 12 doctors calls per day and 5 to

8 medical shop calls. Medical representative’s visit to doctor depends

on specialisation of doctors. Time Management is the real problem as

all the specialised doctors cannot be visited daily.

Table No. 4.9

COSTLY PRODUCTS AND MONTHLY TARGET

OF SALES OF COMPANY

Costly Target of Sale Per Month Total %

Products Below 1 Lack 1 Lack to 3 Lacks Above 3 Lacks
Yes 06 05 04 15 34.19

No 15 07 ,07 : 29 65.91

Total 21 ■ 12 11 44 100

•% 47:73 27.27 25.00 100

i

In this table the comparis on of costly products and monthly sales

v i

target of medical representatives are made. To.tal, 15 medical

representatives admit that their company products are comparatively

i

costly and 29 medical representatives say that their products are not

costly. As doctors take into consideration the comparative costs of

equivalent products, the chances of getting response by doctors for

costly product is less.

148
 Table No. 4.10

CORPORATE-APPRAISAL AND MONTHLY TARGET

OF SALE OF COMPANY

Corporate Target of Sale Per Month Total %

Appraisal Below 1 Lack 1 Lack to 3 Lacks Above 3 Lacks
Yes 20 10 09 39 88.64

No 01 02 ■ 02 05 11.36

Total 21 12 11 44 100

% 47.73 27.27 25.00 100

In this table, it is observed that whether the companies are doing

their own self introspection (Corporate-Appraisal) or hot in order to

continuously increase their sales target. Really speaking, there are far

reaching evil consequences of not taking the cognisance of corporate

appraisal. If a defect in product is not removed by company because of

lack of corporate appraisal policy, doctors never respond for such

product , as they are more cau .tious about their own status. Excess

ingredients, wrong composition, reactions of drug, side effects of

product are some such things which a company is expected to take a

serious note of. The sales target assigned to medical representatives,

per month mat change from company to company depending upon

production range, competition, previous market response etc.

149
4.3 PROBLEMS RELATING TO WHOLESALERS AND RETAILERS

Eventhough effective detailing is done by medical

representative with doctors, to reach the company's product in the

hands of final consumer, co-operation by wholesalers and retailers is

equally expected. As per the opinion of Shri. S. S. Nadkarni,

"Organisations like the Operations Research Group specialise in

marketing research and make available various reports and data. I

. - *

would like to summerise the views put by Shri S. S. Nadkarni. The

Operations Research Group (ORG) may provide the Shop Audit, the

Prescription Audit & Market Information Report through important

publications report. The career concious medical representative should

5
make the best use of all this information for his success.’

The detailed information regarding shop audit, prescription audit &

market information of pharma products are as follows:

• Shop Audit Report : In this, the ethical pharma products of over

200 leading companies are grouped and subgrouped under various

therapentic headings. More companies and products. Shop Audit

Reports are useful to study, on a statewise, zonewise and all India

basis,

0 The trends in product and group sales and

0 Sales growth of one product vis-a-vis others and the group.

150
 The figures should noi be used to get absolute sales

volumes, because in the first place, they are based on a statistical

sampling, and secondly direct purchases from companies and stockists

by doctors and institutions do not figure in this analysis. Nevertheless,

these reports are very valuable for studying sales trends and growth

patterns.

• Prescription Audit: As in the Shop Audit, a cross section of

medical practitioners across the country is the sample here. The data

on their prescriptions is analysed to study

0 Products used for

0 Different indications

0 Dosage schedule suggested

0 Durations adopted in different indications

0 Co-prescribed products etc.

Here for medical representative the information is very useful

to know the trends in prescriptions patterns and the habits of doctors.

• Market Information of Products : Periodic Publications such as tri­

annual current index of Medical specialities (CIMS) the bi-monthly

Index of medical specialities (MIMS) etc. give information on

various products (Company, name, composition, indications,

packings, prices etc.) in the market.

151
Roie of Market Salesman

Some companies (the number is microscopically small today)

employ salesman to contact retailers and book orders from them.

However, this practice has not found much favour with the majority

of ethical pharma marketing people. Some of the reasons are

• Medical representative is a link between doctors and retailers. A

salesman is not.

• The job of a salesman is just to collect the orders of retailers and pass

it on to the wholesaler, he is not to bother about the doctors to be

contacted or their responses..

• The medical representative alone can exploit the demand, the trade

schemes and create stock presure selectively on retail shelves, to

his advantage.

• The company's success depends upon the medical representatives

performance. The presence of a salesman disturbs the link

between the medical representatives target and his retail booking

efforts.

• Retailers look to medical representatives to attend to their problems,

such as excess stock holdings, product complaints, date expiries etc.

and a professional medical representative handles these matters

effectively to his advantages. A salesman may not be able to do

152
 anything except pass on the information to the medical

representative through the office. The delayed action can adversely

affect the company's image, and consequently, sales.

• With a salesman working in his territory, the medical

representative may tend to be selective in his coverage of

retailers. This will not only deny him and his company of valuable

market information but also create misunderstandings with the

traders.

In short, a salesman cannot be a substitute for medical

representative, on the contrary, a salesman may prove to be a hindrance

to the effective functioning of an medical representative, as the medical

representative is better equipped and better informed for wholesale and

6
retail booking activity."

Table No. 4.11

PERSONAL RESPONSIBILITY FOR NON-AVAILABILITY

OF THE DRUGS

Non-Availability Personal Percentage

of Drugs Responsibility
Non Co-operation 35 79.55

Negligence 09 20.45

Total 44 100

153
 In this table, it is observed that, even if the customers respond

to medical representatives and place their orders with medical

representatives it is failure on his part to make the product available in

the market. He automatically is caught in such a vicious-circle that on

one hand he requests the doctors to prescribe his product against

assurance of making the product available in the market immediately,

he perhaps may not get proportionate co-operation either by

wholesalers or by manufacturers, because of the different attitudes

they have about making the product available in the market. As a

consequence of it, the medical representative, is held personally

responsible for non availability of drugs in the market. This may repeat

several times by the respondents in market. In short, he may not be

able to get the sale of pharmaceutical product. The outcome of this table

is that unless all the customers co-operate with him, the possibility of

sale is low. Even the medical representative is not personally held

responsible for non availability of pharma products in market, yet he

loses the faith of some doctors.

Adjustments or Settlement of Debit And Credit Notes

The medical representatives through wholsalers and

manufacturers settle the Debit and Credit notes in case of wrong

invoicing, over-charging, under-charging, settlement or replacement of

date expired drugs, breakage, leakage, pilferage or any other cases.

Basically, the question of wrong invoicing or adjusting the invoices are

154
of two levels, one is between wholesaler and retailer and another is

between wholesaler and manufacturer. Since medical representative,

is a link between all i e. manufacturer, wholesaler and retailer. The

real problem is that if the adjustments in the form of a debit and the

credit notes are not done by medical representative in time through

manufacturer & wholsalers, he won't be entertained next time by the'

wholesalers and retailers at the time of placement of orders.

Pharmaceutical Company Policies regarding, date of expiry,

leakages, breakages etc.

Owing to the non - co-operation of a few doctors and if the

pharmaceutical product is not moving fast in the maket, the problem of

date expiry may creep-in. Similarly, the problems of breakages,

leakages, especially for bottle packs and fragile goods, are common in

distribution of pharmaceutical products at the time of transport from one

destination to another.

In such cases, the policies of the pharmaceutical companies may

differ from company to company. A few companies allow their stockists

to have full claim by issuing credit notes in their favour. Some

i

companies as a policy grant 1 % of the total off- take by the stockist as

replacement for breakages , without taking in to consideration the actual

loss due to breakage of goods.

155
4.4 GENERAL PROBLEMS OF MEDICAL REPRESENTATIVE

Apart from the medical representative's specific problems in

relation with doctors, wholesalers and retailers, medical representative

himself has several problems of his own because of the nature of his

job, the pressures exerted on him by the dominating superiors and

doctors, he is caught in an embarrassing situation,' which entails him to

accept the job with a challenge without any other alternative. The

medical representative realty feels himself insecured today because of

the emerging trends, which can be basically classified into two

categories.

• Franchise System : In this system the Pharmaceutical Companies

shall directly hire doctors for prescribing their products, where by the

company needs no services of medical representatives.

• Propaganda System : In this system the distributor himself is the

employer of an medical representative and not of the company.

Hence the distributors may exploit the medical representatives for

their own benefits.

• Medical representatives are deliberately kept isolated to deprive

them of their trade union protection.

There are certain groups of doctors coming together to form a

certain social trust or an associations and polyclinics. The interest of

156
doctors in forming such institutions is to divert the patients to their

own dispensaries according to specialisation . All these unethical

practices which appear to be social activities of the doctors , need the

help of medical representative to recommend to companies certain cash'

or kind donations to their socio-commercial activities, whereby the

medical representatives are left with no choice but to help them

irrespective of their own personal will or wish.

S. S. Nadkami also comments that, "The medical representatives

in the field have' several problems peculiar to the profession, but he

cannot do anything about and has to learn to live with them. He is

lonely in the crowd of doctors, dealers, para-medicals and fellow

medical representatives unlike his friends who work in offices, shops and

factories. He has to work by himself, most of the time, without the

supportive presence of colleagues or superiors. His hours of working

are long and often irregular, yet he has to be fresh and alert all the

time. The medical representative is always at a different status level

vis-a-vis his customer the doctor He must therefore, be ready to

7
accept the unpleasant behaviour from them as a part of the Job."

157
 Table No. 4.12

CONSIDERATIONS AND MONTHLY TARGET

OF MEDICAL REPRESENTATIVES

Considerations Monthly Sales Target' Total %

of M. R. Below 1 Lack 1-3 Lacks Above 3 Lacks
Commission 01 00 00 01 2.27
Salary 04 04 01 09 20.45
Both & Others 16 08 10 34 77.27
Total 21 12 11 44 100
Percentage 47.73 27.27 25.00 .100

In this table, the researcher has tried to point out the co-relation

between the monetary consideration a medical representative, may get

in different forms and their monthly target of sales. Now-a-days, it is

observed with the help of the above table that, no single form of

consideration is generally offered to a person in sales machinery, but 2

or 3 incentives are given at a time in order to attract the anticipated

sales target by a company. In order to become stable in life a fixed salary

is expected by the medical representatives but at the same time if it is

accepted by the companies it becomes a permanent liability for the

companies as it is observed with the help of the above mentioned

table that, the constant incentives are given to medical representatives

hence they are encouraged to go on doing hard work for the companies

the schemes of incentives, and the commission is also given alongwith

a permanent benefit to medical representative, in addition to their

salaries. The sales range of multi-national comapny (MNC) is more as

compared to national companies. The target depends on product

range, their respective costs and demand, competition in market etc.

158
 Table No. 4.13

QUALIFICATION, DESIGNATION, EXPERIENCE AND MONTHLY

BENEFIT FOR SALES TEAM (AS PER 1995 FIGURES)

Sr. Designation Qualification Experience Approx,Monetary

No. Benefits
1 M.FUP.S.R. Science or Pharmacy Fresh Rs.1500 to 2000
Detail man graduate D.Pharm +
D.M.R.S.M.
2 District Manager or Science or Pharmacy Minimum Rs.2000 to 2500
field officer graduate D.Pharm + 2 years
D.M.R.S.M.+D.P.M.M.
3 Area Manager Science or Pharmacy 2 to 4 years Rs.3500 to 5000
graduate D.Pharm +
D.M.R.S.M.+D.P.M.M.
4 Regional Manager Science or Pharmacy 3 to 6 years Rs.4000 to 7000
graduate D.Pharm +
D.M.R.S.M.+D.P.M.M.
5 Sales Manager Science or Pharmacy 6 to 8 years Rs.5000 to 6000
graduate D.Pharm +
D.M.R.S.M.+D.P.M.M.

Source : Dr. Mahesh D. Burande's Book "Drug-Store-Administration".

July 1995. Second Edition Nirali Prakashan Pune

Taking the above two tables into considerations jointly (T.No.

4.12 and T.No 4.13), it can be pointed out that the monetary benefits

offered to medical representatives are very less as against their

academic qualification, their skill of communication, Experience, sales

target etc., Much of the money earned by medical representatives is

spent normally on the pompous standard of living and maintaining their

own families.

159
 Table No. 4.14

POSSIBILITY OF WORKING WITHOUT PARTICIPATION

OF MEDICAL REPRESENTATIVES

M.R's Joining Date Participation Total Percentage

Yes No
Before 1985 00 05 05 -11.36.

1985 to 1990 01 07 08 .18.18

1990 to 1995 09 22 31* 70.35

Total 10 34 44 1.00,

Percentage 22.73 77.27 100

In this table it is tried to observe that, the possibility of pharma-

companies to market their products without the participation of the

important persons like medical representatives in the sales machinery.

The renowned companies having their monopoly products have tried to

eliminate the medical representatives from the channel of distribution of

marketing but, it was a: sheer failure on the part of such companies

which tried to deny the indispensable share of their medical

representatives. Allopathic pharmaceutical products basically are divided

into two parts

• Ethical

• Non-Ethical

For Ethical pharmaceutical marketing the medical representatives

are needed no doubt as these products are required to be marketed

by detailing to doctors and convince them. For Non-ethical product,

160
which never requires any prescription of the doctors or for over the

counter (OTC) sale product, there is no need of medical representative

as the companies offer extra margins to retailers to motivate them to

purchase and sell it. Lastly for the dispensing products used by doctors

especially by the General Practitioners, there is no need of medical

representatives. In short for ethical products medical representatives

participation is taken whereas for non-ethical products in market he is

straightway eliminated fromthe channel of distribution..

Table No. 4.15

TREATMENT TO MEDICAL REPRESENTATIVES

BY THEIR CUSTOMERS

Type of Customer Good Treatment , Total Percentage

Yes No
Doctors & Wholesaler 30 09 v 39 88.64

Doctors, Wholesalers 02 01 03 06.82

& Retailers

Institutional Buyers 02 00 02 04.55

Total 34 10 44 100

Percentage' , • 77.27 22.73 100

It is. well admitted fact by medical representatives that, their

personal lives are badly affected because of the nature of their own work.

Hence here the opinion of the medical representatives have taken up to

observe whether they are treated well by their customers including

doctors or not? As one of the possibility is that the doctors having

fiduciary relationship with rest of the class of the society, it is likely that

161
 they may have undue influence upon other classes of society but it

seems that 78% medical representatives have admitted it that they

are treated well by their customers and rest of 22% medical

representatives say that they do not feel that they are treated well by

their customers. The possibility cannot be denied that the most

experienced medical representatives, having good convincing power are

welcomed by their respective customers, whereas the newly

appointed medical representatives having no depth of behaving with

others, and having less experience, have to face the bitter experiences

and insulting treatment. Hence they say ultimately, they are not

treated well by their customers.

The Company's Action in Case Non-fulfilment of Target

The Company can have the following actions against their

medical representatives in case they fail to comply with the assigned

'■''■monthly target. Innitialy the oral warning is given to medical

representatives, secondly a mental harrassment is made, thirdly delay in

salary is deliberately done, forthly they are transfered to some unknown

areas for working and lastly they can be demoted. However, before any

penenal action is taken, a company adopts a lenient approach to avoid

loss of an experienced employees.

162
 Table No. 4.16

LEGAL AND FINANCIAL LIABILITY OF MEDICAL REPRESENTATIVE

Legal Liability Financial Liability Total Percentage

of M. R. Yes No
Yes 03 05 08 18.18

No 06 30 36 81.82

Total 09 35 44 100

Percentage 20.45 79.55 100

in this table the legal and financial liabilities of medical

representative while working on behalf of companies is laid down.

Eventhough the legal and financial liability to complete the transaction

entered on behalf of Companies, is imposed on medical representative.

In the view the researcher, medical representative should not be held

responsible for either financial or legal liability, but he should morally

be held liable. Even if financial and legal liability are cast on medical

representatives by their respective companies, it won't be tenable from

legal point of view.

Table No. 4.17

ROLE OF MEDICAL REPRESENTATIVE IN CONNECTION

WITH CARRY AND FORWARD (C & F) AGENTS

Roll of Medical No. of Medical Percentage

Representative Representative
Sending Orders 17 38.64

Never Sending Orders 25 56.82

Not Responded 02 04.55

Total 44 100

163
 In this table, the role of fnedical representative in connection

with C.&.F agent is observed. C.&.F are the Carr/ Forward Agents of

the company and they never purchase the goods of company but may

claim their commission for their work. Recently, a few C. & F. agents

are empowered to make appointments , of suitable medical

representatives. In such cases the medical representative is not an

employee of a Company , but he is an employee of C. & F. agent. In

above table the medical representatives saying that we send orders to C.

& F. are the employees of C. & F. agent. In short the C. & F. agent is a

distributor of Pharmaceutical Company working on propagenda basis,

hence they can evict the medical representative as and when their

services are not needed by them. Eventhough the C and F agent

wholesaler is the prominent factor in the channel of distribution . of

pharma product, it;is observed in district by the researcher that, since

the number of C and F agents wholesalers are less, the role of medical

representative in connection with C and F agents also is comparatively

less.

Table No. 4.18

POSSIBILITY OF CARRYING GOODS PERSONNALY

Possibility of 'Date of Joining with Company Total Percentage

Carrying Goods Before 90 After 90
Yes 04 12 16 36.36

No 06 22 28 63.64
Total 10 34 44 100

Percentage 22.73 77.27 100

164
 In this table the possibility of harrassment to medica!

representatives by the pharmaceutical companies is shown . A few

medical representatives are compelled to carry the goods from one

place to another place apart from stock of free samples to be

distributed. It means, the-medical representatives are required to go for

manual work also alongwith the intellectual work. The above table gives

us information of the medical representatives doing their salesmanship

job since long back. Such medical representatives and their seniority,

oldage, experience etc. is not taken in to consideration by their

?■ *

respective companies., Yet a few other companies never ask their

medical representatives to cany goods alongwith them. Such medical

representatives carry the burden of physician’s free sample packs only.

Table No. 4.19

TYPE OF CONSIDERATION AND POSSIBILITY

OF CARRYING GOODS

Poddibility of Types of Considerations Total . Percentage

1
Carrying Goods Commission Salary Both
Yes 02 01 13 16' ; 36.36

No 08 02 18 28: i 63.64

Total • 10 03 31 44 ; 100
<

Percentage 22.73 06.82 7.45 100 j

i

In this table it has been shown that the medical representatives

receive variety of considerations such as commission, salarly, salary

and commission both and other incentives etc. but still they are required

165
to carry the goods for sale from their stockists and free samples out of

their own quota to be distributed to the concerned parties. Now-a-days,

the new trend in pharma company is developed to hire doctors and

eliminate the medical representatives. The another trend which is

coming up is to adopt franchise system which implies that the company

can simply hire the services of medical representatives and hence his

legitimate right to be a permanent employee of the cbmpany can be

withdrawn. Similarly yet another trend is to adopt propagenda system

in which medical representatives can be appointed by the distributors

and not by the companies. In this case the distributor can exploit the

medical representative to a maximum extent. Overall observation in

above table is that the consideration paid to medical representatives as

against their services is quiet negligible. The medical representatives

only offer their services physically and not mentally as they are having

sense of insecurity in their mind and because of the possibility of carrying

bulky goods and samples which can not be denied by them.

Table No. 4.20

PROMOTIONAL LADDERS OF MEDICAL REPRESENTATIVES

Date of Ladder of Promotion ' Total %

Joining P.S.R. Area/ Zonal/ Sales Others
Regional Manager Executive
Before 03 00 00 01 04 09.09
1985
85-90 01 02 00 03 06 13.64
90-95 03 07 03 06 19 43.18
After 02 07 03 03 15 34.09
1995
Total ' 09 16 06 13 44 100
% 20.45 36.36 13.64 29.55 100

166
 This table shows us the promotional ladder of a company for

medical representatives, the promotional policies of the companies may

vary from company to company. Medical representatives are also known

as Professional Service Representatives (P.S.R.) or Workman.

Generally the first promotion is in form of Area Manager (A.M.),

Regional Manager (R.M.), Zonal Manager (Z.M.). The next promotion is a

Sales Executive and the last promotion is Sales Organizer or Marketing

Manager.

The above table tells us the information that the persons working

in capacity of medical representatives since long back, are still working

in the same. post. It means most of the time the promotional chances are
1

on paper only and: the deserving medical representatives are not given
\

the promotional chances soon.

Table No. 4.21

MIS-USE OF PHYSICIANS SAMPLES

Mis-use Distribu tion of Samples Total

of Relatives Aquainted Dependents Shop-Keepers
Sample Persons & Others
Yes 03 05 01 05 14

No 01 12 04 12 30

Total 04 18 05 17 44
j

% 09.09 40.91 11.36 38.64 100

In this table the possibility of misuse of free samples supplied to

the medical representatives by their companies, is observed.

167
 Shri S.S.Nadkami in his book has quoted "Sampling Myths” as

follows

• More sample mean more sales

• Any doctor will use the products, if samples are dumped in a good

quantity on his table.

• All doctors must be given samples of all the products, all the times.

• If medical representative has no samples, doctors do not . respect

medical representative. They do not take any intrest in his

products."8

In short, every person coming in contact with medical

representative, keeps certain expectations from him. The medical

representative cannot deny the samples to his own relatives and

dependents, similarly the Shop Keeper and their familiars also demand

such samples at the same time other aquainted persons also insists him

to give them the samples. It means apporximately 50% of the quota of

free samples allotted to medical representatives for distribution is being -

used for non-productive purposes.

168
 Table No. 4.22

INFORMATION TO BE SUPPLIED TO COMPANIES AND THE

MONTHLY SALES TARGET

Information Monthly Sales Target Total %

of M. R. Below 1 Lack 1-3 Lacks Above 3 Lacks
Yes 21 10 11 . 42 95.45

No 00 02 .00 02 04.55

Total ■ 21 12 11 44 100

Percentage 47.73 27.27 25.00 100 - ■

In this table, again the sales target per months is compared with

the important information which a company expects from thier medical

representative. Information is the life-blood of the pharmaceutical

company which can be collected by medical representative only.

Information relating to market, potentional-market, competition,

responses given by varionus doctors, expections ,of doctors, general

suggestions by all etc. are sum of the factors considered by the company

from time to lime for arrieving at a perfect decision. The respo nsibility of

providing the market information is basically on medical representatives.

The sales target assigned to medical representatives in each territory is

based on such information supplied to the companies by medical

representatives.

169
 Table Mo. 4.23

POSSIBILITY OF PERSONAL LIFE DISTURBANCE

OF MEDICAL REPRESENTATIVE

Personal Date of Joining with Company Total Percentage

Life Affections Before 90 After 90
Yes 06 22 28 63.64

No 04 12 16 36.36

Total 10. 34 44 100

Percentage 22.73 77.27 100

In this table, the possibility of personal life of a medical

representative which can be disturbed due to the nature of the job of

salesmanship is observed. Every medical representative has been

assigned a specific Head Quarter and he is expected to extensively

travel whenever necessary. Such medical representatives prefer to

reside temporarily in a lodge. They thus, spend approximately 10 to

12 days in a month outside their homes, which definitely affect their

pesonal lives badly. It is not only limited for youngsters and newly

appointed medical representatives but it is equally applicable to

old, experienced medical representatives also.

Maharashtra Recognition of Trade Union And Prevention of Unfair

Labour Practices Act 1971 ( M.R.T.U. & P.U.L.P.) and Medical

Representatives:

According to Shri.Nalawade and Ratnaparakhi, "M.R.T.U. &

P.U.L.P. Act of 1971 is applicable to all industrial workers of Maharashtra

State except medical representatives. Supreme Court in it's judgment on

medical representatives dated 11th Aug 1994, have stated that medical

170
representives are nol entitled for benefits and coverage under M.R.T.U

& P.U.L.P. Act of 1971. The medical representatives will be protected

under the inductrial disputes Act of 1947 and sales promotion employees

Act of 1976.

At present, the extension of M.R.T.U. & P.U.L.P. Act of 1971, for

medical representatives, the bill is pending for passing with the

Government of Maharashtra. In case, if it is done the industrial unrest

can be normalized and the industrial relations will improve. The

orgnisation of pharmaceutical producers of India (O.P.P.I.) and Indian

Drug Manufacturer's Association (I.D.M.A.) have been apposing to

9
passing of this bill."

4.5 CONCLUSION

It is observed that the doctors by virtue of their superior social

status, sometimes may take undue advantage of their position. Also, the

doctors do not accord the type of reception that a medical representative

deserves. Many times, without caring for the value of time of medical

representatives, they are made to sit outside the consulting room for an

inordinately long time. This results in reduction of efficiency of medical

representatives. Some doctors demand a large number of samples totally

disproportionate to their prescription levels. This puts a burden on the

medical representative to explain to his superior the need for highly

disproportionate percentage of samples which is not in tune with the

industry norms. It is also observed that some doctors do not entertain

medical representatives who are conservative when it comes to

distribution of Physician’s samples.

171
 The practice of doctors to shift brand-loyalty due to irregular

medical representative's calls puts a heavy Burden on- the medical

representatives to make an unrealistically large number of calls on

doctors per day. This also results in company* expecting its medical

representatives to make a minimum number of calls per day. Failing to do

SO; this practice, forces medical representatives to submit false reports to

their superiors.

A medical representative is expected to interact with;wholesalers

and-ensure smooth flew of goods from the manufacturer to the wholesaler
* ' • i

and wholesaler to retailer. In performingjhis function, it is observed that

due to delay in raising credit notes and settling other issues like

replacement of damages, pilferages, shortages, breakages from

j *

company's side, a medical representative faces non-co-operation from

the concerned wholesalers.

-T -

Sometimes it is observed that the retailers are not prepared to

stock* without doctor’s prescription and the doctors in turn are not

prepared to prescribe the drug without ready availability of stock. This

i

jams.the smooth functioning of medical representatives:

In general it is observed that medical representatives have a

sense of insecurity in their jobs. This is. due, to the fact that the

expectations of most of the companies from their medical representatives

are totally divorced from ground reality. This results in J high turnover of
r T

medical representatives.! It is felt by the medical representatives that the

r ‘ ‘

remuneration and the incentives received by them is not in proportion to

i
the efforts put in by them to achieve the results.

172
NOTES AND REFERENCES

1) Barde Avinash in his article "Distribution vital part of pharma training

in "Express pharma pulse, 6th July, 1995 pp. 17.

2) V.Srinivasan in his article "Good Marketing and Sales practices" in

Express pharma pulse 6th July, 1995, pp.3

3) Barde Avinash in his article "Distribution vital part of pharma training

in "Express pharma pulse, 6th July, 1995 pp. 17.

4) . Nadkarni S.S. in fast track career "Medical Representatives" "Your

customer - The Doctor", published by S. S. Nadkarni, Madras, Oct.

1991, pp. 61 to 64,

5) I bid 'The vital link - The pharma dealer" pp. 135 to 137,
»

6) Ibid pp. 134 and 135

7) I bid "Introduction" pp. 5,

8) I bid "Sampling Myths" pp.92

9) Nalawade Surendra and Ratnaparakhi Ajit, in there article

'Vaidyakeeya Pratinidhi Vidheyak Nischit Phayadyachech' in daily

'Pudhari' newspaper ( Marathi) of Sangli, dt. 27/6/1998, p.4.

173