Medical Device Link.

Originally Published MX July/August 2004

ADVERTISING, DISTRIBUTION, & SALES

For medtech marketers, early involvement and strategic follow-through are key elements of a successful product launch.

Launching a new medical product is a complex task, fraught with opportunities for misjudgment that can waste limited marketing dollars and even undermine a company's best chances for market visibility.

Such marketing pitfalls can be encountered by medtech companies of just about any size. Sometimes for very different reasons, both large and small companies are equally likely to delay involving marketing staff until a product's launch date is nearly upon them. And both are also prone to failures in market intelligence that can weaken a new product's approach to desirable target audiences.

Fortunately, experienced medtech marketers are aware of the complexities that apply to their product sector, and they are typically able to develop appropriate strategies for an effective product launch. And, as illustrated by the sidebars throughout this article, there are a number of outside firms with specialized expertise that can help companies make the most of their launch opportunities.

To find out more about how medical device marketers approach the challenges of an impending product launch, MX asked three experts in the field to share some of the lessons of their own recent experiences (see sidebar).

MX: How early in a product's development should marketing staff become involved?

Jim Burch: Ideally a company's marketing department should become involved during product development. That way, the company can ensure that new products are aligned with the marketplace and meet a well-defined need.

Once a company has determined that it is going to launch a product, depending on the market, it's preferable for marketing to have at least six months to prepare for product launch. Of course, this timing can be affected by FDA submission and clearance requirements, as well as other issues.

Carrie Mulherin: I like to have a product marketing manager involved at least a year in advance of product launch, if it's a simple product or one with minor differentiation from those available on the market. If the device is complicated or innovative—for instance, a new instrument system—two years is better.

Marketing staff are the best representatives of the customer, because we tend to know the customer's reality better than the typical scientist or engineer. So we can often help direct product developers toward features and functions that the customer needs.

Ed Rychlick: Depending on the marketing staff, as early as possible. In the case of our company's flagship product, for instance, we have been lucky to have the original staff create and manage the product through the entire development process.

My own involvement is a good example. Having a technical background (undergraduate engineering degree with a biomedical/biosystems masters), I began with the company as principal systems engineer just prior to the genesis of the product. I learned the product, and then co-ran the early European and U.S. clinical trials. During this process I learned the intricacies of the clinical application of the product, as well as the customer and patient wants and needs. I then moved into a product management and marketing manager role. In that position, I learned the business and now am able to integrate all of these experiences into the big picture.

Each and every day, I use my prior understanding of the product to meet the needs of customers—external and internal—while keeping the needs of the business in focus. I don't know if this practice is applicable to all products and all marketing staff, but it has been essential in the success of our product.

Do companies follow that advice?

Rychlick: I think most companies talk about and envision involving the marketing staff as early as possible; but few actually do.

What is the role of market intelligence in devising a launch strategy?

Rychlick: It's crucial. With today's technologies and skill sets, almost any product can be made. The true question for a business is, "Should it be?"

That same logic should follow through to the product's launch strategy. Having a reasoned plan for exactly how to launch a product, and to whom it should be launched, is essential. For a business, having a fantastic product without a market—or one that can't tap into the right market—is like not having a product at all. Market intelligence can give a company the information it needs as a base for product success.

Burch: The role of market intelligence in devising a launch strategy is to provide market analysis, segmentation and targeting, positioning, and systematic feedback.

Market analysis includes identifying market conditions at launch, such as market size, maturity, intensity of competition, competitive products and pricing, and the level of prelaunch awareness.

Segmentation and targeting include identifying customers by their potential, so that sales can use the appropriate selling strategies for different segments of high-, moderate-, and low-potential customers.

Positioning includes identifying how the company wants to position its new product in the marketplace, and then testing that positioning statement. This function will determine how the product will be positioned to compete against all key competitors in the category, identify how the company and new product are perceived in the customer's mind, develop ways to differentiate the product from its competition, create an understanding of customer needs versus pure product features, and identify the product's value proposition.

And finally, launch success can be enhanced with early, systematic feedback to diagnose performance drivers and identify appropriate course corrections.

Mulherin: Companies need to know the competition and their competitive products and, most importantly, the gaps that exist among the product offerings already on the market. That means asking good questions of a variety of stakeholders and listening closely to what they are saying.

In terms of timing and location, what are the key alternatives for launching a medtech product?

Mulherin: Because of regulatory considerations, medtech product launches outside the United States have historically been faster than U.S. launches. If the company already has a commercial infrastructure in place, an overseas launch may still be a viable option. However, that strategy may not work for small companies that don't already have overseas distribution channels in place.

Most of the companies that I've worked with have been small, so we have elected to launch domestically first. Adopting a U.S.-first strategy permits the company to exercise a higher level of control. This can turn out to be especially important if the company encounters any bumps with its new products, or if it needs to make adjustments to its marketing and sales tactics, its service offerings, or anything else unforeseen.

Rychlick: When launching a medtech product, a company is either launching into a market that already exists or into one that doesn't. If the market exists, companies and customers probably already share a good knowledge and understanding of needs and wants in that market. Consequently, the launch mostly has to do with getting the product out into the market, getting the company's message heard, and convincing customers that "our product is better than its competitors because of certain features or capabilities."

If a market does not exist, there may not be a well-known and understood need or want among customers. In this case, the launch has more to do with getting the product out into the market, getting the company's message heard, and explaining to customers that "the market for this product exists because of such-and-such clinical problems; our product addresses and can help you with these problems."

In either case, the company's ultimate marketing goal during the product launch is to establish a firm base of understanding among customers, so that they can make the decision to buy the product.

Burch: There are a lot of considerations a global company must consider prior to determining time and location for a product launch. These include what timing would have the greatest impact, what the competition is doing (for instance, have they already launched a similar product, or does market intelligence indicate that they will soon), what is the new product's regulatory status, how far out is actual product delivery to the market, and in which segment is the opportunity (e.g., radiology, cardiology).

In today's global marketplace, timing is a critical factor because a launch in one market will most likely be covered by the media in other geographic markets—particularly if the new technology is long-awaited or features a significant breakthrough. Ideally, a company should launch in all markets—or at least its major markets—at the same time. If that is not possible due to regulatory issues or other concerns, then strategies need to be put in place for dealing with questions from customers and the media.

In medical imaging, most major product launches take place around the time of a major show such as the Radiological Society of North America or the American College of Cardiology. The feeling is that a major announcement strengthens the company's presence at the show, increases booth traffic, and provides significant numbers of sales leads.

What advertising and marketing strategies have you recently used, and how did they work out?

Rychlick: Treatments using our system have a very powerful and nearly immediate benefit for patients. We leverage this fact as much as we can in our communications, not only to physicians who prescribe the treatment, but also to nurses who perform the treatment and patients who receive the treatment. Although these diverse customers might have other priorities that they're contending with, this one is shared by all.

We disseminate a variety of information in support of our marketing efforts, including clinical data, economic data, case studies, and customer testimonials. We use strategies that help communicate the simple fact that treatment using our system is a very good thing on many levels. Seeing is believing.

Burch: Last August, we launched a program that enabled Toshiba to achieve 24.5% year-over-year growth in awareness within our target markets. It was an advertising program consisting of supplements and outserts targeting key CT-system purchasers and users, and it was achieved by working with the top-tier diagnostic imaging publication in our industry.

Our competitors had launched their 16-slice CT products. Our strategy was to achieve visibility in the market for Toshiba's 16-slice product, even though we launched our system after the competition. The supplements and outserts were featured in an editorial/advertorial format focused on applications, and they featured high-profile sites such as Johns Hopkins University, Long Beach Memorial Medical Center, Fukushima University, and Fujita Health University—all leading healthcare providers in their segments.

Toshiba's pretest survey indicated that market awareness of the company's multislice CT was 49% in the fall of 2002. By the spring of 2003, after the program had been running for several months, Toshiba's posttest awareness had jumped to 61%. During that same fiscal period—a time when the overall CT market decreased 10%—Toshiba's CT sales grew by 40%.

Which strategies would you use again, and why?

Burch: As you can imagine with such success, we will definitely use this strategy again in situations where it makes sense.

Rychlick: Because our system makes available a new treatment option like none that has existed before, we're creating a market. We're confident in the product and in its benefits, and just getting customers talking to one another has worked for us. We support these communications through symposiums and other means of presenting case studies, testimonials, clinical studies, and so on.

I would continue to use strategies that present the system as a viable option and that help customers bridge their experiences to the experiences of others.

Copyright ©2004 MX