Tawfik Eweda Pharmacist, MBA, DBA, Foundation of International Board Certified Trainer

Incentive strategyWhich performance indicator we should use ?

• Market share ?!!

• Market share growth ?!!!!

• Sales growth ?!!!!

• Sales budget?!!!

Benefits of using a Market share based incentive scheme • It is very useful in the competitive environment

• Helps in MBO (Outcome based) –incremental sales

• Useful when the company is marketing oriented –matching its vision

• Highly discriminatory between good and poor performers(not just sellers)

• Transparent to the field force

GP & Specialty products with clear territory level ims data

Use market share/market share growth grid

• Hospital products with NO clear territory level ims data

Use sales growth vs. Budget

• For market leaders with >80% MS

Use sales growth vs. Budget

• For launch product

• Commission per unit sold (or per % market share point increase)

• A product should be considered “new” up to 18 months after launch

• Commission could be higher during the first months after launch to emphasize its promotional priority

Tawfik Eweda Pharmacist, MBA, DBA, Foundation of International Board Certified Trainer

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