Change Management in Transition from Traditional Sales Force to Key Account Management: Greece Pharmaceutical Companies - Part 9

638

Chapter 5. Discussion and Conclusion

5.1 Introduction

Increasing efficiency was shown to be the best way for a pharmaceutical company to meet goals to stay competitive and profitable. KAM is a tool that has become more popular to gain efficiency and stability in the pharmaceutical business, the research was topical.

Are you not the best school report writer and require some assistance with your assignment? Buy reports online from Pro-Papers to experience the most professional service in your life!

5.2 Discussion

Customers’ views on products and services were not prioritized when decisions were being made for operational charges. Detailed notes about why customers rejected products or services were not kept in all of the companies and when available were not reviewed by top leadership. Top leadership involvement with key account reviews and decision-making is essential for KAM success. (Bhatt et al., 2011)

Another indication that top management is not dedicated to KAM in some of the companies was understood from one of the responses. The respondents indicated that even when details are kept on customers’ rejections, the top management do not regularly review the data. Bhatt (et al. 2007) learned from respondents that without company reports, access to resources became difficult. The reason accessing resources became more difficult was because no pressure was applied to other departments, like the teams in the marketing department to become involved with KAM functions.

Lack of transparency concerning customer data and files was recognized as a problem from the survey. Successful KAM must have a strong foundation of company commitment on every level. Commitment to filling the needs of the key accounts at all levels in the pharmaceutical sector was found to be necessary.

Good strategies for choosing the accounts with the most potential were found in the literature. The literature review added to the knowledge of the Greek pharmaceutical sector in crisis. Knowledge about how change and key account management techniques are applied during crisis and highly competitive situations was found.

5.3 Limitations

The research was limited by some poorly constructed questions; because this was the first time, the researcher developed a questionnaire. The lack of face-to-face contact with the respondents was also a limitation. The following addresses the topic of why the study needed to incorporate better questions. Question 9 on the survey (see fig. 4-15) asked if formal key account procedures were in play at the respondents business. Forty-eight percent (12 respondents) answered “Yes” whereas 52 percent (14 respondents) answered “No.” Meanwhile, Question 15 offered a statement that was dependent on whether or not the company uses KAM. The statement numbered 15 in the questionnaire was “KAM is part of our internal activities.” Fifty two percent answered “No” to this question, too. Therefore, the researcher feels it is safe to assume that the participants who had KAM at their place of employment, but that assumption should have been answered by the responses, answered questions 10 through 14. Therefore, the questionnaire could have been better constructed.

5.4 Future research

Future research using in-depth face-to-face interviews with Greek managers would add greatly to the knowledge. Priporas and Vangelinos (2008) used an in-depth face-to-face interview strategy. The respondents indicated that more men than women were in managerial positions but research that is more detailed would need to be carried out to learn the gender dynamics in the pharmaceutical industry. The research that has been published using interviews, questionnaires and surveys should be studied to find gaps in knowledge. The online survey to LinkedIn contacts included an invitation to leave comments with enough space for several sentences, but the respondents added none. Therefore, the face-to-face interviews would be preferable in order to learn more information by adding some open-ended questions. Further research is needed to organize the complexities of key accounts into sub-parts for easier management and comparison.

References

Aberdeen Group. (2007). Smart Decisions: The role of Key Performance Indicators. A strategy of change: concepts and controversies in the management of change. White paper, Aberdeen Group, A Harte-Hanks Company, pp. 17, available from ww.aberdeen.com

Ansoff, H.I. (1965). Corporate Strategy: An Analytic Approach to Business Policy for Growth and Expansion, McGraw-Hill, New York, NY.

Barney, J.B. (1991). Firm resources and sustained competitive advantage, Journal of Management, 17(1), pp. 99-120.

Bennekom, F.V. (2005). Organizational effectives through feedback management. Great Brook Consulting http://www.greatbrook.com/survey_statistical_confidence.htm

Bhatt, C., Doll, J., Jagannathan, A. Kors, B. and Pawlu, C. (2011). The journey to Entrepreneurship: Key account management in phrama. European PMP Sales Service Line: McKinsey&Company, pp. 6

Boote, J. and Mathews, A. (1999). ‘Saying is one thing, doing is another.’ The role of observation in marketing research. Vol. 1(1), pp.15 -21

Campbell, R.J. (2008). Change management in health care. The Health Care Manager, 27(1), pp. 23-29.

Daum, J.H. (2002). Intangible Assets and Value Creation, J. Wiley, Hoboken, NJ

Edvinsson, L. and Malone, M.S. (1997), Intellectual Capital: Realizing your Company’s True Value by Finding its Hidden Brainpower, HarperCollins Publishers, New York, NY.

Eisenhardt, K.M. and Martin, J.A. (2000). “Dynamic capabilities: what are they?”, Strategic Management Journal, 21(10-11) pp. 1105-21.

Fink, Stephen. (1986). Crisis Management: Planning for the Inevitable, NY: American Management Association.

FullanGeitona, M., Zavras, D., Hatzikou, M. and Kyriopoulos, J. (2006). Generics market in Greece: The pharmaceutical industry’s beliefs. Health Policy, 79, 35-48, doi:10.1016/j.helathpol.2005.11.2004

Gilley, A. (2005). The Manager as Change Leader. Westport, CT: Praeger.

Gilley, J. W., & Maycunich, A. (2000). Organizational Learning, Performance, and Change: An Introduction to Strategic Human Resource Development. Cambridge, MA: Perseus Books.

Gueselaga R., Johnston W. (2010): What's next in key account management research? Building the bridge between the academic literature and the practitioners' priorities. In: Industrial Marketing Management, Jg. 39, S. 1063–1068.

IAR (Instructional Assessment Resources). “Response rates.” https://www.utexas.edu/academic/ctl/assessment/iar/teaching/gather/method/survey-response.php

Johansson, R. (2003). “Case Study Methodology.” A key note speech at the International Conference “Methodologies in Housing Research” organized by the Royal Institute of Technology in cooperation with the International Association of People–Environment Studies, Stockholm, 22–24, September 2003.

Kalafut, P.C. and Low, J. (2001) “The value creation index: quantifying intangible value”, Strategy & Leadership, 29(5), pp. 9-15.

Kasapi, Z. and Mihiotis, A. (2011). Management as applied to new products penetration in the competitive environment of pharmaceutical industry. Interdisciplinary J Res in Business, 1(10), pp. 73-85.

Kontozamianis, V., Mantzouneas, E., and Stoforos, C. (2003). An Overview of the Greek pharmaceutical market. Eur J Health Econom, 4, pp. 327-333

Kotler, P. & Armstrong, G. (2004). Principles of Marketing, Upper Saddle River: Prentice Hall.

Likert, R. (1932). A Technique for the Measurement of Attitudes. Archives of Psychology, 140, 1–55.

Looney, R. E. (1997). The Pakistani Economy: Economic Growth and Structural Reform. Virginia: Greenwood Publishing Group.

Luecke, R. (2003). Managing change and transition. Boston: Harvard Business Press.

Malhotra, N.K. (1996). Marketing Research: An Applied Orientation. Upper Saddle River: Prentice-Hall.

Marinakos, G., Daskalaki, S., and Ntrinias, T. (2013). Defensive financial decisions support for retailers in Greek pharmaceutical industry. CEJOR, online, DOI 10.1007/s10100-0113-0325-4

Markatou, M. (2011). A taxonomy of innovations in Greece: Implications for innovation policy and management. Procedia Social and Behavioral Sciences, 25, pp. 115-122.

McDaniel, C. & Gates, R. (1995). Marketing Research Essentials. Minnesota: West Publishing Company.

Morgan, R.M. and Hunt, S. (1999). “Relationship-based competitive advantage – analysis and antitrust implications”, Journal of Business Research, 46(3) pp. 281-90.

Nikou, K., Perdikouri, K., and Katharaki, M. (2013). An overview of hospital pharmaceutical expenditure in Greece over the last two years. European Association of Hospital Pharmacists, GRP015, p. 10

Pardo, C., Salle, R. and Spencer, R. (1995). The key accountisation of the firm: A case study

Parsons, W. (1996). “Crisis management”, Career Development International, Vol. 1 No. 5, pp. 26-8.

Patton, M. Q. (2001) (3rd Ed.). Qualitative evaluation and research methods. London, United States: Sage Publications Inc.

Piercy, N. and Lane, N. (2006). The Underlying Vulnerabilities in Key Account Management Strategies, European Management Journal, Volume 24, Issues 2–3, April–June 2006, Pages 151-162, ISSN 0263-2373, http://www.sciencedirect.com/science/article/pii/S026323730600017X?np=y

Priporas, C.-V.and Vangelinos, G. (2008) "Crisis management in pharmaceuticals: evidence from Greece", International Journal of Pharmaceutical and Healthcare Marketing, Vol. 2 Iss: 2, pp.88 – 102 10.1108/17506120810887899

Shipley, D. and Palmer, R. (1997) “Selling to and managing key accounts” in D. Jobber, Ed., (1997). The CM Handbook of selling and sales strategy, Oxford: Butterworth-Heinemann. p. 25, available from http://books.google.gr/books

Simou, E. and Koutsogeorgou, E. (2014). Effects of the economic crisis on health and healthcare in Greece in the literature from 2009 to 2013: A systematic review. Health Policy, 115, 111-119, http://dx.doi.org/10.1016/j.healthpol2014.02.2002

Vandoros, S and Stargardt, T. (2013). Reforms in the Greek pharmaceutical market during the financial crisis. Health Policy, 199, 1-6 http://dx.doi.org/10.1016/j.healthol.2012.08.016

Millman, T.and Wilson, K. (1996). "Developing key account management competences", Journal of Marketing Practice: Applied Marketing Science, 2(2), pp.7 – 22 10.1108/EUM0000000000018

Napolitano L, Customer Supplier Partnering, 2007, S.3 may not need this one
Storbacka, K. (2012) "Strategic account management programs: alignment of design elements and management practices", Journal of Business & Industrial Marketing, Vol. 27 Iss: 4, pp.259 – 274

Storbacka, S.N. (2009) "Customer relationships and the heterogeneity of firm performance", Journal of Business & Industrial Marketing, Vol. 24 Iss: 5/6, pp.360 – 372

Tellis, W. (1997). “Application of a case Study Methodology”, The Qualitative Report, 3(3), pp. 18) http://www.nova.edu/sss/QR/QR-3/tellis2.html

Yfantopoulos, J. (2008). Pharmaceutical pricing and reimbursement reforms in Greece. Eur J. Health Econ, 9, 87-97.

Zijlker, V. 1993. The role of HSE in Management systems: Historical perspective and links with human behavior University of Maastricht : Maastricht University,arno.unimaas.nl/show.cgi?fid=6012‎

Appendices

Appendix A- 1 Pharmaceutical Sector Questionnaire

Surviving the austerity measures in Greece: Account Management - Pharmaceutical Sector - Questionnaire

I. Demographic and Organizational Background

Gender: Male □   Female □

Age: 25-35 □   36-45 □  46-55 □   56 and above □

Education: High School degree □   Bachelor degree □   Master degree □   PhD □

Years of Experience in the Sector: 1-2 □   3-4 □   5-6 □   7-8 □   9-10 □   10+ □

Rank: Senior Management □   Middle Management □   Other ____________________

Company Ownership: Foreign (multinational-international) □   Greek □

Explain ______________________________________________

Annual Turnover in €: under 50,000,000 □

51,000,000-100,000,000 □

101,000,000-150,000,000 □

151,000,000-200,000,000 □

201,000,000-250,000,000 □  Other _________________

 

Number of employees:      under 100 □

101-150 □

151-200 □

201-250 □

251-300 □

301-350 □

351-400 □

401-450 □

451-500 □

501-550 □

551-600 □

601-650 □

651-700 □

701-750 □

751-800 □

801-850 □

851-900 □

901-950 □

951-1000 □

greater than 1000 □

(or) Explain _______________________________

II. Change and Key Account Management

  1. We have Key Account Managers with no other duties

(They do not have field team management responsibilities) Yes □  No □

  1. Certain managers are tasked with giving priority to key account

service. Yes □  No □

2a. ... and their performance is based on key account service

satisfaction. Yes □  No □

  1. An external consultant evaluates key account service data. Yes □ No □
  1. Relevant customer decision-makers / influencers understand

how management decision-making is organized as to roles and

responsibilities. Yes □  No □

  1. A formal process exists for researching customer’s business

needs. Yes □  No □

  1. Key account customers’ target consumer markets and end-user

markets have been identified. Yes □  No □

  1. We understand the appropriate amount of supplier involvement

our customers need to reduce their costs or improve productivity. Yes □  No □

  1. We share customer solutions based on the issues in number 7

above, in dollar amounts. Yes □  No □

  1. Formal key account procedures are set in place. Yes □ No □
  1. Key account procedures (from number 9) allow for strategic,

as well as tactical methods. Yes □  No □

  1. Key account management marketing and sales are in alignment for

for local and national regional planning. Yes □  No □

  1. Sales communications about local and national key accounts

are well-organized. Yes □  No □

  1. The status of key accounts is regularly reviewed. Yes □ No □
  1. Key account management is outsourced. Yes □ No □
  1. Key account management is part of our internal company

activities. Yes □  No □

Do you want to get a top-notch review paper without spending much time and effort? We at Pro-Papers are familiar with general standards and will gladly help writing a review.

III. Customer account management

III. Customer account management 1 Never/

Not at all

2 Slightly 3 Moderately 4 Largely 5 Always 6 Not

Applicable

A. Customer contact emails, addresses, etc. are gathered, organized & maintained 1 2 3 4 5 6
B. Customer’s views on products and services are requested 1 2 3 4 5 6
C. Customer’s views on products and services is applied to making operational improvements 1 2 3 4 5 6
D. Details are kept of customer rejections 1 2 3 4 5 6
E. If details and/or files on customer rejections, top management reviews the information 1 2 3 4 5 6
F. If details and/or files on customer rejections, employees have access to the information 1 2 3 4 5 6
G. Common customer rejections are due to: Quality Problems 1 2 3 4 5 6
H. Common customer rejections are due to: Late Delivery 1 2 3 4 5 6
I. Common customer rejections are due to: Incorrect products received 1 2 3 4 5 6
J. Common customer rejections are due to: Product prices 1 2 3 4 5 6
K. Cost of each product are broken down into component categories & kept up-to-date 1 2 3 4 5 6

Any comments or observations are welcome. Please add them here.

Leave a Reply

Your email address will not be published / Required fields are marked *