Hardly a surprise, given all the sales reps who are being thrown overboard these days. In case you were wondering, though, about the actual decline in investment, spending on sales forces fell by nearly 5 percent worldwide last year, to $55.8 billion, with most of the cuts attributed to the US and Japan, according to Cegedim Strategic Data, a consulting and market research firm.
Overall, worldwide investment on sales forces and other marketing channels declined 3.4 percent to slightly more than $92 billion, at constant local currency exchange rates, compared with 2010. Again, no surprise that growth in China, Latin America and other so-called emerging markets was offset by cuts in sales and marketing in the US, Japan and major European markets.
Meanwhile, the reliance on meetings and events also dropped globally by 4 percent, although this activity plunged 11 percent in Japan. Conversely, spending on meetings and events in China rose by more than 40 percent. We have asked Cegedim to provide specific spending figures and, if they comply, we will provide an update (here is the release).
Although specific names were not mentioned, only two of the ten-largest drugmakers increased their worldwide promotional spending last year. And reflecting the cuts in North America, only three multinational drugmakers that are based in the US ranked among the Top 10 in terms of global promotional spending.