PHARMACEUTICAL SALES TRAINING
EXAM QUESTIONS WITH VERIFIED
ANSWERS
jPharmaceuticals - Medicines and vaccines for human and animal use. Products may have a trademark
(brand) name or be generic, and they may be prescription or over the counter.
Diagnostic - Equipment and supplies used in screening, detecting, and monitoring disease. Can range
from simple home testing kits to sophisticated diagnostic imaging technologies.
Medical Devices - Advanced instrumentation and appliances used for medical therapy, such as joint
replacements, implantable defibrillators, and pacemakers. Also includes drug delivery devices such as
syringes, infusion pumps, metered-dose inhalers, and transdermal patches.
Medical Supplies - Commodity, high-volume supplies such as surgical gowns and gloves.
Durable Medical Equipment - Reusable products for health-related use in the home, such as walkers,
wheelchairs, oxygen equipment, prosthetics and hospital beds.
Home-Based Care - - Patients/consumers and their families and friends
- Home health nurses and aides
Primary Care (Checkups and General Health Issues) - - OB/GYN
- Family/general practitioners
- Internists
Secondary Care (Specialized Outpatient Consults) - - Specialists
Tertiary Care (Inpatient) - - Community hospitals
- Academic medical centers
- Skilled nursing facilities
End-Stage Care - - Skilled nursing facilities
- Hospitals
- Hospices
HMO - Health Maintenance Organizations
PBM - Pharmacy Benefit Managers
PBM role - Act as intermediaries between pharmaceutical companies and large drug purchasers,
allowing the PBM to manage the pharmaceutical benefits of HMOs.
,HMO role - Large employers, nursing homes, hospitals, and other clients.
Food and Drug Administration (FDA) - Regulates the introduction of new drugs and enforces the United
States drug laws.
The marketing of prescription drugs fall into two main categories: - 1. Professional physician promotions
2. Direct-to-consumer advertising
Professional Physician Promotions - Primarily involve sales representatives' activity in physicians' offices,
hospitals, clinics, and pharmacies. Also includes advertising in medical journals, conferences, seminars,
direct e-mail, etc.
Direct-to-consumer Advertising - 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 - 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 - 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 - 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 - 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 - 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: - - Territory Representative
, - Specialty, Hospital, and Institutional Representatives
- District Manager (DM)
- Regional Manager (RM)
- National Account Manager (NAM)
Territory jRepresentative j(Professional jSales jRepresentative) j- jThe jheart jof ja jpharmaceutical jsales
jteam jis jthe jgroup jof j"reps" jwho jinteract jwith jcustomers jon ja jdaily jbasis. jRegardless jof jhow ja
jcompany jconfigures jits jterritories, jeach jteam jmember jis jassigned japproximately jthe jsame jnumber jof
jphysicians jto jcover.
Specialty jRepresentatives j- jTrained jto jsell jto jspecific jphysician jspecialists, jsuch ja jcardiologists,
jendocrinologists, jor joncologists.
Hospital jRepresentatives j(Institutional jRepresentatives) j- jCall jexclusively jon jhospitals. jInstitutional
jrepresentatives jmay jalso jcall jon jVeterans jAdministration j(VA) jhospitals, jnursing jhomes, jhome
jhealthcare jagencies, jand jrehabilitation jcenters. jRepresentatives jwho jsell jto jhospitals jand jother
jinstitutions jhave jbeen jpromoted jfrom jthe jranks jof jterritory jrepresentatives.
District jManager j(DM) j- jTerritory jrepresentatives jreport jto ja jDM. jResponsibility jis jto jcoach jand
jmentor jterritory jrepresentatives. jDMs jalso jensure jthat jeach jrepresentative jis jmaking jtheir jrequired
jcalls jand jis jon jtrack jto jachieve jmonthly, jquarterly, jsemi-annual, jand jannual jsales jgoals.
Regional jManager j(RM) j- jThe jdistrict jmanagers jreport jto ja jregional jmanager. jSets jthe jstrategy jfor ja
jregion jand jmonitors jsales jactivity jin jeach jdistrict junder jhis jor jher jsupervision.
National jAccount jManager j(NAM) j- jRole jis jto jnegotiate jproduct jpurchasing jcontracts jwith jmayor
jMCOs jand jgiant jpharmacy jbenefit jmanagers j(PBMs).
Market jShare j- jMost jcommon jway jto jmeasure jbonuses. jThe jpharmaceutical jcompany jdetermines
jhow jmuch jof jtheir jproduct jshould jsell, jand jforecasts ja jpercentage jmarket jshare. jIf jthe
jpharmaceutical jcompany jforecasts jthat jthe jmedication jshould jbe jprescribed j30% jof jthe jtime, jyour
jmarket jshare jneeds jto jbe j30%. jYou jwill jreceive jyour jbonus jif jyou jobtain jthat jpercentage jin jyour
jmarket, jand jreceive jadditional jbonuses jfor jincreases jin jthat jpercentage.
Actual jSales j- jNot jmany jcompanies juse jthis jmethod jbecause jit jis jdifficult jto jcalculate. jActual jsales
jcan jbe jdifficult jto jcalculate jbecause jprescriptions jare jusually jsold jthrough jpharmacies. jWith jthis
jmethod, jreps jare jpaid ja jbonus jor jcommission jbased jon jthe jtotal jactual jsales jin jtheir jrespective
jterritories.
Actual jSales jvs. jForecast jSales j- jThis jmethod jis jbased jon jthe jpast jhistory jof jthe jrep's jdesignated
jterritory. jCompanies jwill jforecast jand jset jgoals jfor jthe jamount jof jprescriptions jto jbe jsold jin ja
jspecific jterritory. jIf jthe jrep jexceeds jthe jforecast, jhe jor jshe jwill jreceive ja jbonus.
Company jCar j- jMost jpharmaceutical jcompanies jprovide jcompany jcars jto jtheir jrepresentatives. jThe
jcompany jcar jis jessentially ja jportable joffice, jwell-stocked jwith jproduct jsamples, jeducational
jbrochures, jpromotional jitems, jetc. jIn jrecent jyears, jmany jcompanies jhave jreverted jto jcar jallowances
EXAM QUESTIONS WITH VERIFIED
ANSWERS
jPharmaceuticals - Medicines and vaccines for human and animal use. Products may have a trademark
(brand) name or be generic, and they may be prescription or over the counter.
Diagnostic - Equipment and supplies used in screening, detecting, and monitoring disease. Can range
from simple home testing kits to sophisticated diagnostic imaging technologies.
Medical Devices - Advanced instrumentation and appliances used for medical therapy, such as joint
replacements, implantable defibrillators, and pacemakers. Also includes drug delivery devices such as
syringes, infusion pumps, metered-dose inhalers, and transdermal patches.
Medical Supplies - Commodity, high-volume supplies such as surgical gowns and gloves.
Durable Medical Equipment - Reusable products for health-related use in the home, such as walkers,
wheelchairs, oxygen equipment, prosthetics and hospital beds.
Home-Based Care - - Patients/consumers and their families and friends
- Home health nurses and aides
Primary Care (Checkups and General Health Issues) - - OB/GYN
- Family/general practitioners
- Internists
Secondary Care (Specialized Outpatient Consults) - - Specialists
Tertiary Care (Inpatient) - - Community hospitals
- Academic medical centers
- Skilled nursing facilities
End-Stage Care - - Skilled nursing facilities
- Hospitals
- Hospices
HMO - Health Maintenance Organizations
PBM - Pharmacy Benefit Managers
PBM role - Act as intermediaries between pharmaceutical companies and large drug purchasers,
allowing the PBM to manage the pharmaceutical benefits of HMOs.
,HMO role - Large employers, nursing homes, hospitals, and other clients.
Food and Drug Administration (FDA) - Regulates the introduction of new drugs and enforces the United
States drug laws.
The marketing of prescription drugs fall into two main categories: - 1. Professional physician promotions
2. Direct-to-consumer advertising
Professional Physician Promotions - Primarily involve sales representatives' activity in physicians' offices,
hospitals, clinics, and pharmacies. Also includes advertising in medical journals, conferences, seminars,
direct e-mail, etc.
Direct-to-consumer Advertising - 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 - 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 - 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 - 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 - 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 - 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: - - Territory Representative
, - Specialty, Hospital, and Institutional Representatives
- District Manager (DM)
- Regional Manager (RM)
- National Account Manager (NAM)
Territory jRepresentative j(Professional jSales jRepresentative) j- jThe jheart jof ja jpharmaceutical jsales
jteam jis jthe jgroup jof j"reps" jwho jinteract jwith jcustomers jon ja jdaily jbasis. jRegardless jof jhow ja
jcompany jconfigures jits jterritories, jeach jteam jmember jis jassigned japproximately jthe jsame jnumber jof
jphysicians jto jcover.
Specialty jRepresentatives j- jTrained jto jsell jto jspecific jphysician jspecialists, jsuch ja jcardiologists,
jendocrinologists, jor joncologists.
Hospital jRepresentatives j(Institutional jRepresentatives) j- jCall jexclusively jon jhospitals. jInstitutional
jrepresentatives jmay jalso jcall jon jVeterans jAdministration j(VA) jhospitals, jnursing jhomes, jhome
jhealthcare jagencies, jand jrehabilitation jcenters. jRepresentatives jwho jsell jto jhospitals jand jother
jinstitutions jhave jbeen jpromoted jfrom jthe jranks jof jterritory jrepresentatives.
District jManager j(DM) j- jTerritory jrepresentatives jreport jto ja jDM. jResponsibility jis jto jcoach jand
jmentor jterritory jrepresentatives. jDMs jalso jensure jthat jeach jrepresentative jis jmaking jtheir jrequired
jcalls jand jis jon jtrack jto jachieve jmonthly, jquarterly, jsemi-annual, jand jannual jsales jgoals.
Regional jManager j(RM) j- jThe jdistrict jmanagers jreport jto ja jregional jmanager. jSets jthe jstrategy jfor ja
jregion jand jmonitors jsales jactivity jin jeach jdistrict junder jhis jor jher jsupervision.
National jAccount jManager j(NAM) j- jRole jis jto jnegotiate jproduct jpurchasing jcontracts jwith jmayor
jMCOs jand jgiant jpharmacy jbenefit jmanagers j(PBMs).
Market jShare j- jMost jcommon jway jto jmeasure jbonuses. jThe jpharmaceutical jcompany jdetermines
jhow jmuch jof jtheir jproduct jshould jsell, jand jforecasts ja jpercentage jmarket jshare. jIf jthe
jpharmaceutical jcompany jforecasts jthat jthe jmedication jshould jbe jprescribed j30% jof jthe jtime, jyour
jmarket jshare jneeds jto jbe j30%. jYou jwill jreceive jyour jbonus jif jyou jobtain jthat jpercentage jin jyour
jmarket, jand jreceive jadditional jbonuses jfor jincreases jin jthat jpercentage.
Actual jSales j- jNot jmany jcompanies juse jthis jmethod jbecause jit jis jdifficult jto jcalculate. jActual jsales
jcan jbe jdifficult jto jcalculate jbecause jprescriptions jare jusually jsold jthrough jpharmacies. jWith jthis
jmethod, jreps jare jpaid ja jbonus jor jcommission jbased jon jthe jtotal jactual jsales jin jtheir jrespective
jterritories.
Actual jSales jvs. jForecast jSales j- jThis jmethod jis jbased jon jthe jpast jhistory jof jthe jrep's jdesignated
jterritory. jCompanies jwill jforecast jand jset jgoals jfor jthe jamount jof jprescriptions jto jbe jsold jin ja
jspecific jterritory. jIf jthe jrep jexceeds jthe jforecast, jhe jor jshe jwill jreceive ja jbonus.
Company jCar j- jMost jpharmaceutical jcompanies jprovide jcompany jcars jto jtheir jrepresentatives. jThe
jcompany jcar jis jessentially ja jportable joffice, jwell-stocked jwith jproduct jsamples, jeducational
jbrochures, jpromotional jitems, jetc. jIn jrecent jyears, jmany jcompanies jhave jreverted jto jcar jallowances
