Original Article
Journal of Medical Marketing (2009) 9, 11–20; doi:10.1057/jmm.2008.32; published online 23 January 2009
An exploratory study of the make-or-buy decisions in pharmaceutical sales
Beth Rogers1
Correspondence: Beth Rogers, Department of Human Resource and Marketing Management, Portsmouth Business School, Richmond Building, Portland Street, Portsmouth PO1 3DE, UK
1is Programme Manager for the MA in Sales Management at Portsmouth Business School, Chair of the UK National Sales Board and author of 'Rethinking sales management: a strategic guide for practitioners'. Her career has encompassed many years experience in the IT industry, consultancy and teaching.
Received 5 December 2008; Revised 5 December 2008; Published online 23 January 2009.
Abstract
For many decades, revenue performance in pharmaceutical companies seemed to be directly correlated to the number of sales representatives employed. Now the 'arms race' is over, and the number of sales representatives in the pharmaceutical sector in the United Kingdom is decreasing. Sales Directors in major pharmaceutical companies are rationalising internal sales resource strategically and working with contract sales organisations (CSOs) to provide coverage for campaigns. Smaller players, who are often experiencing high growth rates, also engage with contract sales organisations and are more likely to ask them to manage multiple relationships with the NHS. Previous research about the use of contract sales organisations has predominantly been generated in the United States, where 'manufacturers' representatives' generate a significant minority of revenue in B2B markets. Use of 'reps' or similar organisations appears to be increasing in the United States, and the variety of contract sales organisations and their tasks is also developing. Earlier research has identified reasons why US manufacturers use 'reps' and how they are usually deployed. Building on that body of knowledge, this paper explores the factors that are driving successful deployment of CSOs in the UK pharmaceutical sector. It is based on interviews with senior decision-makers in 12 companies whose combined market share represents about one third of UK healthcare spend.
Keywords:
contract sales organizations, outsourcing, downsizing, marketing strategy, sales management, sales representatives
MORE ARTICLES LIKE THIS
These links to content published by Palgrave Macmillan are automatically generated.
RESEARCH
An exploratory study of the make-or-buy decisions in pharmaceutical salesJournal of Medical Marketing Original Article
IT governance and project management: A qualitative studyJournal of Database Marketing & Customer Strategy Management Original Article
Outsourcing services in the healthcare sectorJournal of Medical Marketing Original Article

