Самоучитель английского языка для менеджеров фармбизнеса. PharmEnglish for pharm career. Андрей Тимофеевич Бычков

business strategies for a territory:

      1. The strategy of driving the business (upper left segment of BCG-Matrix) is chosen when the relevant business grows up (above the country) while our market share is small (lower than in the country). Under these circumstances, it is reasonable for the company to invest high promotional resources to drive the market share and to boost our sales. The strategy of driving the business requires very high resources because it is aimed at reaching high coverage of A and B customers (with low loyalty to our products) high call frequency and big number of group promotional activities (medical conferences, round table discussions, group presentations). The average balance between individual calls and group promotional activities is not less than 6+2 for each physician where the first number (6) reflects individual calls and the second – participation of each physician in group promotional activities. This balance (6+2) is calculated for a promotional cycle equal to three months.

      2. The strategy of defending the business (upper right segment of BCG-Martix) is chosen when the relevant business dynamics in the territory is growing or standing still while our market share is high. In such circumstances our business objective is to aim the necessary promotional resources at active defense of the gained market share against our competitors. The strategy of defending our business means a certain limitation of individual calls to high potential customers with high loyalty to our products in favor of group promotional activities: medical conferences, round table discussions and group presentations. The average balance between individual contacts and participation of customers in group promotional activities does not exceed 2+3 per promotional cycle (three months).

      3. The strategy of supporting the business (the low right segment of the BCG-Matrix) is chosen when the relevant business dynamics in the territory is standing still or falling (below country level) while our market share is still high. In such circumstances our business objective is to aim the necessary promotional resources at the defense of the gained market share against our competitors. But unlike previous strategy (=defending business) the strategy of supporting business means even bigger limitation of individual calls to high potential customers with high loyalty to our products in favor of group promotional activities: medical conferences, round table discussions and group presentations. The average balance between individual contacts and participation of customers in group promotional activities does not exceed 1—2+3 per promotional cycle (three months).

      4. The strategy of presence in the territory (low left segment of BCG-Matris) is usually chosen when the relevant market in the territory stagnates or is falling while our market share is low. Under these circumstances the investment of significant resources in the territory in terms of return of investment (ROI indicator) is not justified. The objective of this strategy is to limit the promotional resources to a reasonable minimum of less expensive promotional activities to ensure high coverage. When business environment in the territory changes, for example it starts to grow up the business strategy changes accordingly, for example from presence to driving the business. Thus following the strategy of presence the MRs and KAMs call on customers with low coverage and frequency and concentrate their attention to group activities to detail the company products. The average balance between individual contacts and participation of customers in group promotional activities is close to 1+1 or even 0+1.

      Sometimes when the regional manager is short of promotional resources and the relevant business dynamics is falling down the company is forced to implement the strategy of withdrawal when MRs and KAMs have to stop calling on potential customers (even A and B categories).

      Now when we understand the main business strategies and their objectives and we are fully ready to analyze some particular territory/city business potential. In order to do it let us place some territories/cities business indicators given in the table below into the BCG – Matrix.

      Please be ready to analyze business potential of every city in the BCG-Matrix and give your arguments and proofs presenting their business strategies.

      When the strategy for a territory is determined a regional manager can set a business objective for this territory for the next year or promotional cycle. Business objectives are usually set in terms of market share (in percent) and in sales volume (in money/packages).

      Let us do it together, for example, for BLUE city. As we can see this city is placed in the upper left segment of the BCG-Matrix which means that it has very high business potential (compared to business potential of the country). Our main conclusions are:

      • relevant business dynamics in this city is 3,5 times higher than in the country (41% vs 12%);

      • our product market share is less than in the country (9% vs 11%) which means that it can be increased;

      • our sales in this city are comparable with sales in GREEN and ORANGE and exceeds our sales in GREY, RED;

      • Relevant market in this city exceeds all other citied (even YELLOW one) except WHITE and GREEN (=very big business potential).

      If positive tendencies of business development in BLUE city remain (relevant market dynamics growth) the regional manager can set the following business objectives:

      • MAX objective in terms of our product market share – to reach 15% of relevant market share;

      • MIN objective (if business development in the city is unstable) – to reach 12% of relevant market share.

      Now that we know our business objectives in terms of market share and have a forecast for the relevant market for the next year (let’s say +10% growth vs this year = 4,2 mln. RUB) we can easily calculate our MAX sales objectives in BLUE for the next year: 4,2 mln. RUB x 15% = 0,62 mln. RUB. Our MIN sales objectives will be: 4,2 mln. RUB x 12% = 0,5 mln. RUB.

      Учебный модуль №3. Новые слова

      Учебный модуль №4.

      Работа над текстом и грамматикой

      Задание №1: Прочитайте и переведите текст с опорой на аудиозапись.

      Задание №2: Устно ответьте на следующие вопросы с опорой на текст:

      1. What is the first step in the territory management?

      2. What are the key marketing indicators reflecting the territory potential?

      3. How should manager compare the key marketing indicators?

      4. What is the result of comparison of key marketing indicators in terms of time (one year vs another)?

      5. What is a business strategy?

      6. What business strategies do you know?

      7. When does a regional manager choose the strategy of driving the business?

      8. What is the strategy of driving the business aimed at?

      9. What are the main elements of strategy of driving the business?

      10. What can you say about the balance between individual contacts and group promotional activities in the strategy of driving the business?

      11. In what circumstances is it reasonable for the company to invest high promotional resources in the territory?

      12. In what circumstances is it not reasonable for the company