Marketing Strategy Addresses Matters of the Heart

Medical Device & Diagnostic Industry Magazine
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An MD&DI March 1999 Column

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Michael Dale likens his marketing strategy to a recipe: Each ingredient, though very basic, is fundamental to the success of the finished meal—or in his situation, the successful launch of the finished product. One of the ingredients necessary to develop a comprehensive marketing plan, according to Dale, vice president of worldwide sales for Endocardial Solutions (St. Paul, MN), is the acknowledgment of your company's strengths and weaknesses. "Often, people are so busy that they don't really take the time to sit back and analyze their business," says Dale. "As a result, they're not always well prepared to take advantage of opportunities. Until they understand what their strengths and weaknesses are and accept them, they cannot develop a strategy." To reach such an understanding, Dale suggests that companies ask and answer as many probing questions as possible: What is the company's mission and objective? What are company expectations? What constitutes success and failure? Is the product literature accurate and relative? Is it realistic?

Michael Dale urges companies to ask probing questions when creating a marketing plan.

Dale strongly advises companies to examine product positioning; that is, to determine how the company can best distinguish itself and its products from alternatives currently available to their customers. "A product can't be all things to all people," he explains. "So, really settle on what it is you're trying to say to the customer, and once you make that determination, you will know what kind of program you need to develop for marketing your product."

After five years in the medical device industry, Dale was hired in 1988 as a salesman for St. Jude Medical (St. Paul, MN), a company that manufactures mechanical and bioprosthetic heart valves. At the time, he had no marketing experience; however, the company was still small and willing to take a chance on him. Dale seized the opportunity and went on to conceptualize, develop, and market the Hemodynamic Plus heart valve, a larger, more efficient valve that became the standard in the industry.

Originally, artificial heart valves were made with sewing cuff material interposed between the patient's tissue and the rigid superstructure of the valve. This extra material occupied space, allowing less room for the valve itself. As a result, artificial valves were smaller than natural ones, thereby creating more resistance to blood flow and forcing the heart to work harder. Dale questioned the need for this sewing cuff material and ultimately concluded that it was unnecessary. With the elimination of this material, a larger heart valve could be placed in the same amount of space as before.

As product manager, Dale worked with regulatory employees, engineers, and researchers on development of the valve and finalization of the design, as well as in putting together the production schedule, clinical introductions, and, ultimately, the marketing strategy. "It was easier to market this device than any other because I benefited from an innate understanding of the product and had a great deal of faith—despite the opinions of many skeptics—that it was worthwhile," Dale says. "The idea for the heart valve was very simple. The greatest challenge was convincing others that something so simple could be so effective." Subsequently, Dale moved to Europe as marketing manager for St. Jude Medical, where he had the opportunity to introduce the Hemodynamic Plus series into the clinical setting. Dale finds that the markets in Europe and in the United States have more similarities than differences. "The tactics you use to deliver your message and the process whereby you deliver it are going to be different in Europe because the cultures and social structures are different," he says. "But what doesn't change is the fact that the end product fulfills a specific function. Rarely do you have a situation where a Class III medical device is marketed for a different clinical need in Germany than it is in Wisconsin. Often marketing boils down to subtle cultural differences. As long as you appreciate that these differences exist, it's not difficult to figure out how to market your product."

Dale believes that small companies planning to enter the European market must pay particular attention to establishing a solid infrastructure. "For issues like financial structure, office location, residency or taxes, companies must turn to individuals who have experience in assisting small companies. That allows the marketing people to concentrate fully on marketing," he says.

In his current position with Endocardial Solutions, Dale oversees sales of the Ensite 3000 system, which the company currently manufactures and markets in Europe through a distribution agreement with Medtronic Inc. (Minneapolis). The Ensite device provides a 3-D graphical display of the heart's electrical activity for diagnostic mapping of complex arrhythmias. Available in full market release to electrophysiologists in Europe, the product is awaiting FDA approval in the United States.

Kassandra S. Kania is assistant editor of MD&DI.

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