PHARMACEUTICAL SALES TRAINING
EXAM QUESTIONS WITH COMPLETE
ANSWERS
District Manager (DM) - Answer-Territory representatives report to a DM.
Responsibility is to coach and mentor territory representatives. DMs also ensure that
each representative is making their required calls and is on track to achieve monthly,
quarterly, semi-annual, and annual sales goals.
Regional Manager (RM) - Answer-The district managers report to a regional
manager. Sets the strategy for a region and monitors sales activity in each district
under his or her supervision.
National Account Manager (NAM) - Answer-Role is to negotiate product purchasing
contracts with mayor MCOs and giant pharmacy benefit managers (PBMs).
Market Share - Answer-Most common way to measure bonuses. The pharmaceutical
company determines how much of their product should sell, and forecasts a
percentage market share. If the pharmaceutical company forecasts that the
medication should be prescribed 30% of the time, your market share needs to be
30%. You will receive your bonus if you obtain that percentage in your market, and
receive additional bonuses for increases in that percentage.
Actual Sales - Answer-Not many companies use this method because it is difficult to
calculate. Actual sales can be difficult to calculate because prescriptions are usually
sold through pharmacies. With this method, reps are paid a bonus or commission
based on the total actual sales in their respective territories.
Actual Sales vs. Forecast Sales - Answer-This method is based on the past history
of the rep's designated territory. Companies will forecast and set goals for the
amount of prescriptions to be sold in a specific territory. If the rep exceeds the
forecast, he or she will receive a bonus.
Company Car - Answer-Most pharmaceutical companies provide company cars to
their representatives. The company car is essentially a portable office, well-stocked
with product samples, educational brochures, promotional items, etc. In recent years,
many companies have reverted to car allowances for liability reasons, where the
company pays the rep a monthly payment to utilize towards the expenses of a car.
General Benefits - Answer-Once hired, reps can expect to receive general, medical,
life, disability, and other more specialized benefits.
Autonomy - Answer-One of the best benefits of being a pharmaceutical sales rep is
being able to work from home. The primary responsibility is to call on physicians
during office hours, but other duties are required. The rep must set aside time to
complete several reports, and must frequently attend regional and national meetings.
,Expenses - Answer-A lot of the rep's time is spent entertaining clients, often over
breakfast, lunch, and dinner appointments. The rep's expense account is used to
offset these entertainment expenses, including transportation related expenses.
Stop bys - Answer-Pharmaceutical representatives meet with physicians through
arranged appointments or "stop bys" - no set appointment.
Goal of a pharmaceutical sales representative - Answer-Selling a product, service, or
concept
Cases where the pharmacists will make the decision to dispense a product other
than the one prescribed by the physician: - Answer-1. The pharmacist substitutes a
generic.
2. The pharmacist calls the doctor and requests permission to dispense a different
medication.
Third party payers - Answer-Insurance company, the employer, managed care
organization, the U.S. government (Medicare/Medicaid).
What is your primary target as an entry level pharmaceutical sales representative? -
Answer-The physician
Good way to build a relationship with a physician? - Answer-Product samples
Medical Library - Answer-One of the oldest methods of acquiring medical
information. Most hospitals or clinics will have a library where current information will
be available.
Medical Journals - Answer-Medical journals are considered good sources of
information. They provide current perspectives from leading experts on various
disease states and treatment options. Major and current studies will be published in
more reputable journals. In addition, you may find ads for new and soon to be
released products.
Specialist - Answer-Researchers are usually found at universities and medical
schools, but also in private practice. They perform the testing and do the necessary
research for new products.
Direct-to-consumer Advertising - Answer-Refers to patient-directed messages in
television, radio, magazines, newspapers, etc. It is the newest effective marketing
technique.
Reasons for growth in the direct-to-consuming advertising industry - Answer-1. The
FDA easing regulations on this type of advertising.
2. Patients wanting to be more involved in their healthcare decisions, and thus more
receptive to advertising that includes educational messages.
3. The public's increasing medical and health literacy.
4. Physicians' increasing willingness to consider, and in many cases grant, their
patients' request for advertised drugs.
, Headquarters - Answer-Executive-level sales managers (e.g., directors, the vice
president of sales) and support staff usually work out of corporate headquarters.
National account managers (NAMs), who sell to large managed care organizations
(MCOs) and pharmacy benefit management (PBMs), also typically work at corporate
headquarters. Headquarters also houses product managers who are part of the
company's marketing department, orchestrating the overall strategy that
representatives implement in the marketplace.
Regions - Answer-Most sales organizations divide the country into five to ten
geographic regions, each of which is supervised by a regional manager (RM).
Typical regions include Northwest, Midwest, Mid-Atlantic, etc.
Districts - Answer-Each region features several districts and each district is
supervised by a district manager (DM). For example, a Southwest region may be
divided into separate districts for Georgia, Alabama, South Carolina, Tennessee,
Mississippi, North and Central Florida, and South Florida. Heavily populated states
such as New York and Connecticut may be split into 3 or 4 districts in the southern
part of the state alone, with separate districts for the rest of the state.
Territories - Answer-Finally, each district includes 8-12 territories. Territories are
staffed by representatives (the position that almost every entry level reps get when
they first start). Some representatives cover a territory by themselves. Other
territories may be staffed by several representatives with slightly different
responsibilities. For example, some may call on hospitals, and others on physicians'
offices or clinics, or different representatives may promote different products within
the same territory.
The sales team consists of: - Answer-- Territory Representative
- Specialty, Hospital, and Institutional Representatives
- District Manager (DM)
- Regional Manager (RM)
- National Account Manager (NAM)
Territory Representative (Professional Sales Representative) - Answer-The heart of
a pharmaceutical sales team is the group of "reps" who interact with customers on a
daily basis. Regardless of how a company configures its territories, each team
member is assigned approximately the same number of physicians to cover.
Specialty Representatives - Answer-Trained to sell to specific physician specialists,
such a cardiologists, endocrinologists, or oncologists.
Hospital Representatives (Institutional Representatives) - Answer-Call exclusively on
hospitals. Institutional representatives may also call on Veterans Administration (VA)
hospitals, nursing homes, home healthcare agencies, and rehabilitation centers.
Representatives who sell to hospitals and other institutions have been promoted
from the ranks of territory representatives.
Research & Development - Answer-The "engine of innovation", focused on
discovering - or inventing - promising new chemicals or molecules and transforming
them into safe and effective pharmaceutical products.
EXAM QUESTIONS WITH COMPLETE
ANSWERS
District Manager (DM) - Answer-Territory representatives report to a DM.
Responsibility is to coach and mentor territory representatives. DMs also ensure that
each representative is making their required calls and is on track to achieve monthly,
quarterly, semi-annual, and annual sales goals.
Regional Manager (RM) - Answer-The district managers report to a regional
manager. Sets the strategy for a region and monitors sales activity in each district
under his or her supervision.
National Account Manager (NAM) - Answer-Role is to negotiate product purchasing
contracts with mayor MCOs and giant pharmacy benefit managers (PBMs).
Market Share - Answer-Most common way to measure bonuses. The pharmaceutical
company determines how much of their product should sell, and forecasts a
percentage market share. If the pharmaceutical company forecasts that the
medication should be prescribed 30% of the time, your market share needs to be
30%. You will receive your bonus if you obtain that percentage in your market, and
receive additional bonuses for increases in that percentage.
Actual Sales - Answer-Not many companies use this method because it is difficult to
calculate. Actual sales can be difficult to calculate because prescriptions are usually
sold through pharmacies. With this method, reps are paid a bonus or commission
based on the total actual sales in their respective territories.
Actual Sales vs. Forecast Sales - Answer-This method is based on the past history
of the rep's designated territory. Companies will forecast and set goals for the
amount of prescriptions to be sold in a specific territory. If the rep exceeds the
forecast, he or she will receive a bonus.
Company Car - Answer-Most pharmaceutical companies provide company cars to
their representatives. The company car is essentially a portable office, well-stocked
with product samples, educational brochures, promotional items, etc. In recent years,
many companies have reverted to car allowances for liability reasons, where the
company pays the rep a monthly payment to utilize towards the expenses of a car.
General Benefits - Answer-Once hired, reps can expect to receive general, medical,
life, disability, and other more specialized benefits.
Autonomy - Answer-One of the best benefits of being a pharmaceutical sales rep is
being able to work from home. The primary responsibility is to call on physicians
during office hours, but other duties are required. The rep must set aside time to
complete several reports, and must frequently attend regional and national meetings.
,Expenses - Answer-A lot of the rep's time is spent entertaining clients, often over
breakfast, lunch, and dinner appointments. The rep's expense account is used to
offset these entertainment expenses, including transportation related expenses.
Stop bys - Answer-Pharmaceutical representatives meet with physicians through
arranged appointments or "stop bys" - no set appointment.
Goal of a pharmaceutical sales representative - Answer-Selling a product, service, or
concept
Cases where the pharmacists will make the decision to dispense a product other
than the one prescribed by the physician: - Answer-1. The pharmacist substitutes a
generic.
2. The pharmacist calls the doctor and requests permission to dispense a different
medication.
Third party payers - Answer-Insurance company, the employer, managed care
organization, the U.S. government (Medicare/Medicaid).
What is your primary target as an entry level pharmaceutical sales representative? -
Answer-The physician
Good way to build a relationship with a physician? - Answer-Product samples
Medical Library - Answer-One of the oldest methods of acquiring medical
information. Most hospitals or clinics will have a library where current information will
be available.
Medical Journals - Answer-Medical journals are considered good sources of
information. They provide current perspectives from leading experts on various
disease states and treatment options. Major and current studies will be published in
more reputable journals. In addition, you may find ads for new and soon to be
released products.
Specialist - Answer-Researchers are usually found at universities and medical
schools, but also in private practice. They perform the testing and do the necessary
research for new products.
Direct-to-consumer Advertising - Answer-Refers to patient-directed messages in
television, radio, magazines, newspapers, etc. It is the newest effective marketing
technique.
Reasons for growth in the direct-to-consuming advertising industry - Answer-1. The
FDA easing regulations on this type of advertising.
2. Patients wanting to be more involved in their healthcare decisions, and thus more
receptive to advertising that includes educational messages.
3. The public's increasing medical and health literacy.
4. Physicians' increasing willingness to consider, and in many cases grant, their
patients' request for advertised drugs.
, Headquarters - Answer-Executive-level sales managers (e.g., directors, the vice
president of sales) and support staff usually work out of corporate headquarters.
National account managers (NAMs), who sell to large managed care organizations
(MCOs) and pharmacy benefit management (PBMs), also typically work at corporate
headquarters. Headquarters also houses product managers who are part of the
company's marketing department, orchestrating the overall strategy that
representatives implement in the marketplace.
Regions - Answer-Most sales organizations divide the country into five to ten
geographic regions, each of which is supervised by a regional manager (RM).
Typical regions include Northwest, Midwest, Mid-Atlantic, etc.
Districts - Answer-Each region features several districts and each district is
supervised by a district manager (DM). For example, a Southwest region may be
divided into separate districts for Georgia, Alabama, South Carolina, Tennessee,
Mississippi, North and Central Florida, and South Florida. Heavily populated states
such as New York and Connecticut may be split into 3 or 4 districts in the southern
part of the state alone, with separate districts for the rest of the state.
Territories - Answer-Finally, each district includes 8-12 territories. Territories are
staffed by representatives (the position that almost every entry level reps get when
they first start). Some representatives cover a territory by themselves. Other
territories may be staffed by several representatives with slightly different
responsibilities. For example, some may call on hospitals, and others on physicians'
offices or clinics, or different representatives may promote different products within
the same territory.
The sales team consists of: - Answer-- Territory Representative
- Specialty, Hospital, and Institutional Representatives
- District Manager (DM)
- Regional Manager (RM)
- National Account Manager (NAM)
Territory Representative (Professional Sales Representative) - Answer-The heart of
a pharmaceutical sales team is the group of "reps" who interact with customers on a
daily basis. Regardless of how a company configures its territories, each team
member is assigned approximately the same number of physicians to cover.
Specialty Representatives - Answer-Trained to sell to specific physician specialists,
such a cardiologists, endocrinologists, or oncologists.
Hospital Representatives (Institutional Representatives) - Answer-Call exclusively on
hospitals. Institutional representatives may also call on Veterans Administration (VA)
hospitals, nursing homes, home healthcare agencies, and rehabilitation centers.
Representatives who sell to hospitals and other institutions have been promoted
from the ranks of territory representatives.
Research & Development - Answer-The "engine of innovation", focused on
discovering - or inventing - promising new chemicals or molecules and transforming
them into safe and effective pharmaceutical products.
