How well a medical device company markets its product can have a huge effect on its success in the marketplace and its bottom line. If hospitals, surgeons, and physicians have never heard of your product, then it is impossible for them to know that your device is the perfect solution for their patients. Marketing is a key component that should be considered early in the business lifecycle and when building your budget and planning for the future.
According to a survey on marketing trends in the medical device industry released in May 2012 by market research firm Industry Review, the average marketing budget of a global medical device industry supplier is expected to increase 7% over the next 12 months. In 2012 the average size of a global medical device company’s annual marketing budget is around $1.7 million, down slightly from $1.9 million in 2011. However, it is also important to note that 76% of companies had a marketing budget of less than $250,000. The amount of spend that’s right for you can be determined with the assistance of a trusted business advisor.
Medical device companies are seeing the benefits of marketing to their target markets and are jumping on board. According to the Industry Review survey, e-mail, newsletters, social media, networking sites, and online content sites are expected to generate the most traction for medical device companies throughout 2013. Marketing tactics to avoid in the space, according to survey respondents, include radio, newspaper, television, and video. These tactics are expected to show the “least investment gains.”
None of these marketing tactics are beneficial or directly impact the bottom line without follow-up, reporting, and analysis. Before putting any marketing plan into action make sure it has measureable results, so you can quickly and easily see which tactics are working for your company and which need to be re-worked to ensure your success and create the biggest benefit to your bottom line.
What marketing tactics is your medical device company using? Let us know in the comments, we want to hear from you.
Mitchell Kopelman is the partner in charge of the technology and life sciences practice at Habif, Arogeti, & Wynne (Atlanta). He focuses on helping medical device companies with R&D tax credit studies, mergers and acquisitions, and proactive tax and accounting planning. He also works with companies as they expand globally or enter the United States. Kopelman graduated from Georgia State University with a bachelor’s degree in accounting. He can be reached at email@example.com.
Ori Epstein is a tax manager in Habif, Arogeti, & Wynne’s technology and life sciences practice. He regularly speaks at medical device industry conferences on topics such as the excise tax, business trends within the medical device industry, and tax planning and preparation for medical device companies. Epstein graduated from the University of Georgia with a bachelor’s degree in accounting and a master’s of accounting with a concentration in tax. E-mail him at firstname.lastname@example.org.