Medical Device Marketing Excellence: Optimizing Group Structure and Operations

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This study presents different organizational segments for medical device marketing activities and current trends in resource, structure and staffing levels. It also highlights future changes to be expected in medical device marketing. Marketing executives at medical device companies can use this study to compare their structure and resource levels with that of leading organizations and enhance their current practices.

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Medical Device Marketing Excellence: Optimizing Group Structure and Operations

  1. 1. BEST PRACTICBest Practices, LLC Strategic Benchmarking ResearchMedical Device Marketing Excellence:Optimizing Group Structure & Operations
  2. 2. BEST PRACTICTABLE OF CONTENTSI. Research Objective and MethodologyII. Participating CompaniesIII. Highlighted FindingsIV. Respondent DemographicsV. Survey FindingsVI. Field InsightsVII.About Best Practices, LLC and Copyright Information
  3. 3. BEST PRACTIC3Copyright © Best Practices , LLCTo uncover resource and activitybenchmarks as well as forward-looking insights about theMarketing function at medicaldevice Segment.Research Background and MethodologyBackground:With the monumental task of ensuring that companies comply with the plethora of global regulationsand laws pertaining to marketing medical device products, Marketing groups count on their own internaleffectiveness and efficiency to remain productive. Optimal resourcing and staffing, including a balanceof outsourcing and off-shoring, will help Marketing in the Medical Technology industry prioritize rolesand responsibilities that will be most beneficial to the growth of the company.Field Research & Insight Development:Surveyed 15 leaders at 15 medical device companies.Conducted three deep-dive executive interviews fromleaders at surveyed large medical device companiesto collect qualitative insights.INFORMObjective:1) Does your organization use a shared-services model domestically or abroad and what have beenthe experiences?2) How centralized are upstream marketing activities and how does your organization plan to continuecentralizing these functions?3) How do you expect marketing staff in mature vs. emerging markets to change over time?4) How does your marketing department plan on cutting costs in the next 3 years?5) How do you see your marketing organization changing over the next 3 years?Deep Dive Interview Questions:Best Practices, LLC conducted this benchmarking study to establish meaningfulbenchmarks for the resource levels and the activities scope of the Marketing function formedical device Segment.
  4. 4. BEST PRACTIC4Copyright © Best Practices , LLCBenchmark ClassLarge Medical Device Segment Emerging Medical Device SegmentThis research features a wide range of organizations, including large as well as emergingcompanies. Some of the data has been segmented to show the perspective of LargeMedical Device Segment and Emerging Medical Device Segment.
  5. 5. BEST PRACTIC5Copyright © Best Practices , LLCJob Titles of Participants• Marketing Manager (3)• Manager, Global Marketing Intelligence• Senior Director, GFS Marketing• Vice President (3)• Vice President, Program Office• Vice President, Worldwide Marketing (3)• President (2)• CEOThis research features a wide range of executives from several different functions thatmanage critical aspects of marketing function for medical device Segment
  6. 6. BEST PRACTIC6Copyright © Best Practices , LLCKey Findings & InsightsMedical Device Revenue: For the large medical device segment in this study, averagerevenue exceeds $5B, 55% of which comes from sales in the U.S. Average revenue forcompanies in the emerging medical device segment was $67M, with 82% from U.S. sales.Revenue Dedicated to Marketing Operations: Companies in the large medical devicesegment dedicate an average of 4.6% of revenue to marketing operations, compared to anaverage allocation of 8.1% for companies in the emerging medical device segment.Profit Margins: Profit margins for large medical device companies average 64%, a full 14%higher than the participating emerging medical device companies.Staffing Levels: Companies in the emerging medical device segment devote a much higherpercentage of their total company headcount to marketing operations (21% on average)compared to large medical device companies in the study (who devote just 4% of totalheadcount on their marketing operations).The following key findings and insights emerged from this study.
  7. 7. BEST PRACTIC7Copyright © Best Practices , LLCMarketing Activities Within Companies – Large Cos.Marketing Function and Activity Organization: How are the following marketing functions andactivities organized within you company?(n = 8)Large Medical Device Segment By Division/Business Unit By RegionSharedservicesCorporate orCenter ofExcellenceNew product evaluation and analysis 100% 0% 0% 0%New product launch 71% 29% 0% 0%Business cases to support product or serviceintroduction or change100% 0% 0% 0%Long-term (3 to 5+ year) forecasting, modeling andscenario development86% 0% 0% 14%Long-term capacity planning and resource allocationmanagement57% 0% 29% 14%Market research 71% 29% 0% 0%Support of new business development group 50% 17% 0% 33%Marketing Communications (Non-digital) 71% 0% 14% 14%Marketing Communications (Digital) 57% 0% 14% 29%Social media marketing 43% 0% 0% 57%Large medical device companies invest their time across multiple marketing functionsand activities. New product evaluation and service introduction are performed fully atindividual business unit followed by market research, marketing communication andother various marketing activities.
  8. 8. BEST PRACTIC8Copyright © Best Practices , LLCMarketing Staffing as a Percentage of TotalHeadcountMarketing Staffing Levels: What percentage of your overall company headcount is dedicated toMedical Device Marketing?(n = 8) (n = 3)Large Medical DeviceSegmentEmerging MedicalDevice SegmentMax 7% 33%75th Percentile 4% 29%Mean 4% 21%Median 3% 25%25th Percentile 3% 14%Min 1% 3%On average, four percent of overall headcount is allocated for medical device marketing bylarge medical device companies. Similarly, emerging medical device segment allocateapproximately 21% of overall headcount for marketing their medical devices.
  9. 9. BEST PRACTICAbout Best Practices, LLCBest Practices, LLC is a research and consulting firm that conductswork based on the simple yet profound principle that organizationscan chart a course to superior economic performance by studyingthe best business practices, operating tactics and winningstrategies of world-class Segment.Best Practices, LLC6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517919-403-0251bestpractices@best-in-class.comwww.best-in-class.comLink for Report: Optimizing Group Structure & Operations Benchmarking Reports

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