Cabot Pharmaceuticals Inc.

Jorge Mora Ramos Grupo 3

WHY DOES BOB MARSH GET FIRED?

Cabot Pharmaceuticals Inc.

The case study describes the 12-year career of Bob Marsh, a pharmaceutical salesperson. Bob Marsh is eventually asked to resign
from his position at Cabot Pharmaceuticals. Soon after his termination from the company, Bob's former customers begin to
complain, and the company's vice president of sales is asked to investigate Bob's termination and to decide, what to do.

The case study addresses issues of aligning strategy and sales efforts, evaluation criteria of performance, and on-going performance
management in field selling.

How does selling work in this industry?

Cabot Pharmaceuticals, Inc. (CPI) sells prescription drugs for the medical and dental professions to drug wholesales and drugstores
(for resale to the general public by prescription) or to hospitals and physicians.

What is the customer's buying process?

In order to serve both target groups CPI has established two sales forces. First, a team-based sales force that managed care
organization (e.g. HMOs) and second, a direct sales force, consisting of 500 individual detailers, that target hospital personnel,
doctors and dentists.

How long is a sales call, how many calls does a rep make per day? What are critical selling success factors
that drive results?
In the latter, a sale is the result of a carefully managed customer relationship, which consists of phone calls and personal visits.
The direct sales force is expected to make six to nine doctor or hospital calls per day. The main goal of such calls is to nurture
the relationship and schedule personal meetings, with one of the doctors. CPI executives consider their detailers (direct sales
force members) as „second to none“ in the business. In addition to the personal relationship, a good education and social skills
are highly critical factors to win the trust and loyalty of the doctors.

CASE BACKGROUND
Cabot Pharmaceuticals Inc. Jorge Mora Ramos Grupo 3
Information About Marsh While Hiring Him

STRENGHTS
 Academic Credentials • Top Flight Pharmacy School
 Sales Experience • At a Drug store, successful
Excellent customer
 Military Experience • Naval Pilot, good service record rapport
 Family and Community • Full family and community life Loyal and sincere
 Regional Fit • Grew up and lived in Toledo where he would employee
work Cooperative with
managerial instructions
Citizenship with fellow
Lack of planning and
untidy record keeping
Non identification with
company promotion
policies
Cluttered sample bag
and car

WEAKNESS
sales representatives

Who Supervised Marsh? Evaluations

John Meredith 1992-1997 High Experience Below Standard to Above Average

Bill Couch 1997-2000 High Experience Satisfactory to Well Above Average

Jim Rathburn 2000-2002 Low experience Satisfactory to Probation to satisfactory

Vince Reed 2002-2003 Low experience Satisfactory to Completely –unsatisfactory to probation

Antonia 2003-2004 Low experience Probation Evaporates

Wilkens

Ted Franklin 2004-2004 Medium experience Fired

HONEY MOON UNDER MEREDITH AND COUCH

The Supervision of John Meredith
• While interviewing Bob Marsh, Meredith said he was impressed with Marsh, and rated him high in sincerity, learning ability
and affability.
• After hiring Marsh and training him, Meredith felt he had made an excellent decision in hiring him.
• He did superbly with his customers.
• Of concern, though not serious, was:
 His sample bag is cluttered and poorly organized and often did not have the appropriate promotion literature to
accompany the product being discussed. (see page 3)
• Yet, John Meredith moved Marsh’s rating from below standard to completely satisfactory in 2 years

The Supervision of Bill Couch

• Bill Couch took over from John Meredith in 1997 (5 years later).
• He was very impressed with Bob Marsh’s rapport with his customers, throughout his territory.
• He noticed that Marsh’s planning and record keeping was poor
• Yet he rated Marsh as above average and later as well above average.
• Marsh salary went up under Couch from $ to $ in a period of three years
• CPI president sent Marsh a letter thanking him

Conclusion on this stage

• Steady progress under both Meredith and Couch during exploration stage
• Both managers pointed out his lack of planning and record keeping
• Indications of an inherent personality trait of lack of an eye for detail manifested in untidy unkeep of bag and car
• Lacks the urge to work on non important record keeping and follow up
• Predisposition to think of selling as an art rather than science manifested in relationships with customers (inborn vs learned)
• Motivation seems to be achievement of end goals (sales volume and long term relationship) and not on the paraphernalia.
• But, still shows adaptability to improve on aspects he thinks as non important to keep managers in good humor.
Cabot Pharmaceuticals Inc. Jorge Mora Ramos Grupo 3
Jim Meredith Bill Couch
STRENGTHS WEAKNESSES STRENGTHS WEAKNESSES

+ A hard worker - loyal,
dedicated, and anxious to
do well
+ well-received by
physicians and hospital
personnel; very good
customer rapport
+ appreciates and follows
instructions and suggestions
+ cooperative and helpfull
with fellow associates
- should overcome tendency to prejudge + Outstanding reception Work performance and his
customers and promotion programs in physician offices and attitude graded as Well
drugstores is a great asset Above Average.
- bad work habits and personal
organization + most gratifying
improvement in drugstore
- need for better planning, follow- sales
through, and responsiveness to company
policies + good acceptance by
fellow associates
- shows „indifference“ to organization
(e.g. little preparation before seeing + contributions at district
physicians, not definite plan or method meetings greatly
once in the physician’s office) appreciated

+ good number of Marsh’s - should be more responsive to + excellent attitue and

physicians increased CPI management directives company loyalty
prescriptions in recent
month. Hospital sales were - should give more attention to planning
also showing gains. and organization

- overall work performance was below

standard

- attitude: standard

TORRID TIME UNDER RATHBUN

• New manager with new eccentricity.

• Too detail oriented to Marsh’s comfort.
STRENGTHS

• Marsh takes recourse to falsifying facts to

avoid being constantly under the
+ excellent rapport with virtually - dissatisfaction with Marsh’s record in
scanner. everyone in his territory establishing new products with physicians
• Shows signs of helplessness while signing - poor penetration with dentists
- „lack of organization was beyond
probation agreement. Rathburn’s comprehension“
• Still tries to mould himself in the - poore attitude
- careless organization
establishment stage of career.
• A free flowing affable character finds
- inattention to planning and follow-up
- missed sales opportunities
WEAKNESSES
himself as prisoner of rules. „An improved attitute as well as better
organization, planning and follow-up
• Finally passes the Rathbun test. would remedy Marsh’s performance.“

CONTINUED AGONY UNDER REED AND WILKENS

• Finds himself reporting to much younger lot.
• Lack of career advancement seems to take a toll as Marsh reverses ground gained under Rathbun. ( Return to untidy bag
and car)
• Managers may be going by past records of Marsh’s files. Even Wilkens notices only old attributes in her short association
with Marsh.
• No manager may be willing to develop a fresh perspective about Marsh other than old appraisal reports.
• Repeat probation may have shattered Marsh during his maintenance stage of career.
• Constant debacle turns Marsh passive.
Cabot Pharmaceuticals Inc. Jorge Mora Ramos Grupo 3
Vince Reed Antonia Wilkens
STRENGTHS WEAKNESSES STRENGTHS WEAKNESSES

+ performance was - physician sales were not as they should
satisfactory be
+ impressed with customer - slow acceptance of new products
rapport among Marsh’s customers
- could follow directives more promptly
+ Outstanding reception Work performance and his
in physician offices and attitude graded as Well
drugstores is a great asset Above Average.
+ most gratifying
improvement in drugstore
sales

- organization was still deficient + good acceptance by

fellow associates
- disorded samples and promotional
literature in his bag and car + contributions at district
meetings greatly
- records of hospital and wholesaler appreciated
personnel was inadequate
+ excellent attitue and
Performance level had slipped: company loyalty
completely unsatisfactory.

CAREER PLATEAU UNDER FRANKLIN

• Satisfaction with income in comparison with peers.
• No upward mobility.
• Burden of unfair treatment from previous 3 managers.
• Withdrawal during disengagement stage. Continued managerial apathy helped rush the stage.
• No remonstration during termination reveals how Marsh had left the happenings to fate and reconciled to the fact that
the job was no longer his cup of tea.
• The rejection of even the last request may have catalyzed feeling of reprisal against his beloved company.

 Marsh is perceived as being moody, unfriendly, indifferent, and lethargic

 Marsh feel behind schedule in reading assignments and collecting required market data

Bob’s Behaviour Analysis

Strengths
• Sincere, enthusiastic, quick learner, loyal , dedicated
• Very good customer rapport

• Loyal & dedicated to the work & the rm
• Didn’t leave the rm even after being put on probation multiple times • Willingness to improve
 • Good working
relationship with fellow associates


Weakness
• Non-conformance to management directives, company policies and sales objectives. 

• Inconsistency in maintaining records & poorly organized sample bag 

• Catch-as-catch-can approach, tendency to prejudge the customers 

• Lacked in organization skills, planning and follow up activities 

Cabot Pharmaceuticals Inc. Jorge Mora Ramos Grupo 3
Bob’s Analysis
• Choice: Bob was reluctant to follow
management guidelines, but followed his own
actions

• Intensity: Bob had put forth lot of efforts in his
territory, the result was rejected in sales
performance
• Persistence: He was continuing his efforts over
the years.

Bob’s Ability was great in terms of reaching the expectations of his manager.
 Lack of motivational programs enabling
Bob’s to adhere Management directives, policies. After 10 years of working in Cabot, Bob’s career seemed to have
plateaued

Behavioral Factors in Motivation

• Bob didn’t seem to be motivated by salary hikes alone and Proper motivational tools tailored to Bob’s Needs were missing
and should be designed such that:
 Better performance evaluation- MBO 

 Creating Perception of Better E1ort lead to Better Performance- So that 
 efforts become valuable. 

• Motivational programs should have some elements tailored to Bob’s needs by including non-financial rewards such as: 
 –
Job enrichment
 – Recognition
 – Opportunity for promotion 


Organizational Factors
• Continuous change in District manager creating pressure on Bob to match up with their expectations
• Managers using tough approach with a plateauing problem, without understanding the problem properly
• Relying on past data by managers.
• Bob’s positive Customer Relationship Management skills not considered in his evaluation

Recommendations
In the current scenario, the right set of actions should be to reinstate Bob because:

• Bob maintained a very strong connection with the clients & his reinstatement would reduce the risk of losing long time
customers
• He has served the 7rm with total dedication & loyalty for 12 long years & knows the selling function inside-out
• His experience can be of great use to the 7rm
• To solve the motivational & plateauing problem, the 7rm should:
 Highlight prospects for promotions & higher
 Assign Bob a new territory, where he can start afresh
 Give him a new assignment, such as coaching new salespeople, gathering competitive intelligence, surveying customers
for new product ideas or developing a new territory

CONCLUSIONS
• All managers were transactional and nobody attempted to be transformational.
• Cooper never realized Marsh’s unique motivational needs. It never tailored company goals with Marsh’s personality. (More
weightage on outcome rather than paraphernalia)
• Nothing explains why sales managers were changing so frequently while Marsh stayed constant. Nobody tried to
communicate to Marsh about the benefits and pitfalls of tidiness by setting examples.
• Very little signs of job enrichment for Marsh. (No new territory or assignments). Only financial rewards were forthcoming.
• One way communication and order barking. Cooper didn’t care to take inputs from Marsh even on ethical issues like
promotion or his career development plan.
• Termination is too harsh a decision for a salesperson who is a favorite with the customers. Reconsider the decision.
• Marsh’s performance did not meet some of the requirements of the company from the very beginning, so it was necessary
to reward him, basing not only on the sales increase but also on his level of discipline. Otherwise, Marsh saw that his salary
depended only on the profit he brought and did not pay attention to other factors.
• In order not to receive the customer’s complaints about Marsh’s dismissal, the managers should have interrogated the
customers whether they were satisfied with March’s work or not and only then that had to choose what was more
important for the company
Cabot Pharmaceuticals Inc.
GOOD DECISIONS
John Meredith makes detailed observations about
problems of Marsh
Bill Couch None
Jim Rathburn has defined clear preliminary sales
goals for Marsh to attain. His
suggestions are specific (e.g. pinpoint
detailing) and his analysis very
detailled (e.g. recognized
discrepancies in call records). He
does not only set up plans, but also
evaluates them afterwards.
Additionally, he does not only speak
about problems and subsequents
plan, but also commits them to
paper.
Vince Reed Reed discusses developments with
past district managers
Antonia Eliminating “time set”
Wilkens
Ted Franklin Took time to “know” Marsh
Set no time to reach objectives
Jorge Mora Ramos Grupo 3
VS BAD DECISIONS
However, his suggestions are too unspecific and
miss clear call to actions. In addition, he increases
the salary although he evaluated Marsh’s results as
being „not satisfactory“, which undermine the
rationale behind such formal evaluations and the
performance criterion. Additionally, he also
increases the salary too fast, which could translate
into a habituation effect for Marsh.
Did not set up clear goals and hence allowed for
no room for improvements. Additionally, his
observations were not detailed enough and hence
lacked any hints for organization misbehavior of
Marsh
He can be seen as being too strict
He sets goals, but he doesn’t help Marsh to achieve
them (provides only basic outline of master plan).
Additionally, he makes „substantial additions“ to
Marsh’s file and sends a direct letter to the zone
manager in order to adress the failures of Marsh
even after the salary increase has been granted
Only 2 days in the field, therefore shouldn’t be able to
evaluate nor confirm any record
Set a list of “survival procedures” almost unreachable
Too many procedures
No empathy at all
No real reasons for firing him