Challenges and keys to
success for marketing
medical technology
FIND OUT MORE →
Marketing Medical Technology | May, 2009

OVERVIEW
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Overview
Industry snapshot
→ U.S. healthcare expenditures were $2.4 trillion in 2007
→ Expected to balloon to $4.3 trillion by 2017
→ The Medical Technology segment is a $250 billion
industry; larger than the pharmaceutical and biotech
industries combined
– 75% of expenditures occur at hospital/medical office settings
– As a result, effective business-to-business (B2B) marketing is
critical to an organization’s success
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Overview
Med tech marketing—what makes it unique?
Three challenges that can impact the marketing and
promotion of your product or brand:
1. Government regulation
2. Market fragmentation
3. Focus on innovation
Let’s take a look at each in greater detail…
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REGULATION
GOVERNMENT
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Government Regulation
The challenge
Like the pharmaceutical segment, med tech is highly regulated by the Food & Drug
Administration (FDA)
→ Impacts both what you can say and when you can say it
Products typically fall into one of three classes
→ Class III devices (those that support or sustain life) have the most stringent requirements
– No formal marketing can take place prior to FDA approval, which can take months or
years to obtain
Once approved, manufacturers are only permitted to market or promote the specific
indications for which the device was approved
→ Physicians, however, can use the products any way they like—referred to as ―off label use‖
→ Off label usage often represents significant revenue for the manufacturers
→ FDA taking a more aggressive stance on companies who may ―imply‖ non-approved uses of
their products
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Government Regulation
Keys to success
Ensure all team members have a thorough knowledge of the regulatory environment
and climate
→ No need to educate marketing partners on your dime
Share timely clinical data (as in clinical trial results) to help seed the market
→ Can help shape perceptions and increase awareness
→ Considered ―news‖ not ―marketing‖ by the FDA, so it can be disseminated and leveraged
prior to FDA approval
Utilize ―independent‖ third parties (i.e., physicians) to tell your story
→ Adds credibility; not bound by the same FDA guidelines as manufacturers
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MARKET
FRAGMENTATION
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Market Fragmentation
The challenge
Compared to the prescription drug market, medical device industry is
highly fragmented
→ Approximately 100,000 approved medical devices
→ Only about 1,400 approved drugs
Results in significant market clutter and competitive pressures
Similarly, average revenue per drug is $176 million versus only $2.5 million per
medical device
→ Results in significantly fewer marketing dollars to spend on promotion
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Market Fragmentation
Keys to success
Given smaller marketing budgets, efficiency is critical
→ Work with partner firms with relevant experience and history of success
Take the time to develop the corporate and products brands, their unique position,
personality, tone, look and feel
→ Tendency may be to get very tactical (as in ―we need a brochure‖), but building a sold brand
foundation will pay dividends later
Invest the time and effort to build a solid marketing plan
→ Efficient and effective campaigns are born out of planning, not reacting
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INNOVATION
FOCUS ON
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Focus on Innovation
The challenge
Med tech product lifecycle is highly abbreviated and compressed
→ One of the largest device companies in the world recently reported that 2/3 of their revenues
come from products introduced within just the last two years
→ Very little time for products to go from ―launch‖ to ―standard of care‖
From a marketing perspective, innovation alone is not a point of differentiation—it’s
the price of admission
→ Still surprising how many med tech companies focus marketing on ―innovation‖
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Focus on Innovation
Sameness abounds
CAN YOU TELL WHICH CLAIM MATCHES UP WITH WHICH
COMPANY?
―Worldwide leader in development, J&J/Cordis
manufacturing and marketing of medical
devices…‖
Medtronic
―…devoted to discovering new technologies
and new ways to manage health‖
Abbott Vascular
―The world’s leading developer and
manufacturer of breakthrough products…‖
Boston Scientific
―The global leader in medical technology…‖
Marketing Medical Technology | May, 2009 | 13

Focus on Innovation
Sameness abounds
CAN YOU TELL WHICH CLAIM MATCHES UP WITH WHICH
COMPANY?
―Worldwide leader in development, J&J/Cordis
manufacturing and marketing of medical
devices…‖
Medtronic
―…devoted to discovering new technologies
and new ways to manage health‖
Abbott Vascular
―The world’s leading developer and
manufacturer of breakthrough products…‖
Boston Scientific
―The global leader in medical technology…‖
Marketing Medical Technology | May, 2009 | 14

Focus on Innovation
Keys to success
Focus on product benefits, not features
→ If a claim can be followed by ―so what?‖ you’re describing a product feature, not its benefit
Develop a fully integrated marketing program—not just reactive tactics
→ Remember that all marketing (advertising, PR, digital) works through repetition. Frequency
and consistency of message is key.
Sooner is better than later. Front-load your campaign and budget.
→ With a potential product life under three years, what are you waiting for?
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CREATING BRANDS, BUILDING PREFERENCE
contact → RIECHESBAIRD
Mike Ritchey
Practice Leader, Healthcare
mritchey@riechesbaird.com
1 Wrigley
Irvine, CA 92618
949 586 1200
www.riechesbaird.com
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