Medical device companies must learn the lessons Better

When you look at today's global economy, one of the few segments that seem to better withstand the economic storm is medical devices and medical products. You might think that this could be a category from which we could all learn some important lessons in brand differentiation.

It would be wrong.

If it is true that the category has grown in recent years and most manufacturers have earned profits, this was more due to a "category" rising tide then because of brand value and differentiation.

Now, I'm not saying that few brands in some categories appear to have a greater preference and market leadership. What I am saying is that all the market leaders are in danger of losing their preferred position if one of the challengers to wake up and look at what motivates their customers to choose from. This is a category ripe with opportunity, because no class we've ever seen or worked in was the most selfish and self consumed.

Markets are global

For the most part, these markets are global. Medtronic, Johnson and Johnson, Edwards Lifesciences, CONMED, Boston Scientific, Stryker, NuVasive, Biotronic, Smith and Nephew, Zimmer B Braun and sell all of their devices and products (note that it did not refer to them as a brand) globally. This means that apart from regulatory issues, these products should reflect the needs and desires of a very diversified market.

Increasingly, the pressures on prices are dominating the preferred choice. The companies that enjoy market leadership are finding their legacy products with contractions of rising prices. This is counter-intuitive, as legacy brands in consumer goods are generally more immune to price pressures. For example, the BMW 7 Series is rarely found in a price squeeze due to the introduction of the Nano. Apple does not imply its Macintosh, even if you buy online, and regardless of the introductory price of books'. I just do not need it. Why, then, medical device manufactures are forced to react to price pressures arising from generic products, and young readers?

Preference is not strong

When you dig into the market, you will find the preference, but no strong preference. For the most part, consumers prefer the product have been trained on. But absolutely believe that the products are all great and reliable but are not currently choosing them.

The depth of loyalty only goes up habit. Then, as a result, the price becomes more important every time that a surgeon or a medical professional is asked to fall on a sword for a product they prefer. There is rarely a good reason to continue to pay more to buy on a regular old few surgeons and medical specialists are willing to fall on the sword. They have other battles that are simply more meaningful for them.

The Rise of The Rep

As a result, the medical device companies have relied on a force highly skilled and highly qualified sales "reps" their products to hospitals and doctors around the world. The advantage of this model is that it excuses manufacturers to develop brands that have significant global appeal, leaving the matter in the hands of the sales rep.

One-on-one, the representative brings the marketing message and, as anyone who knows of sales, the selling point is always the seller. The product is secondary.

What this means is that the agent brings value because it is the representative that the customer is really buying. In this high stakes game of "marketing on a global level," the tail that wags the dog.

Wake Up To The Truth

It is interesting to note that equity markets have not yet understood this truth. Analysts talk about new products or devices that are in research and regulatory approval that is required or excluded when assessing the value of the company. What should be the assessment is the brand value (near zero) and the strength of the network rep. Ask any manager or managing director in exactly what happens when a representative leaves with their Rolodex and set the field with a competitor. Customers switch too.

Increasingly, as the global market matures, the messages of true brand that carries a promise beyond the minimum requirement to be a medical manufacturer - the effectiveness and reliability, to begin to define the category. The sales model is simply inefficient and puts fortunes of the company in the hands of talent, but Machiavellian salespeople who are willing to pull the curtains when the wind blows more money through their sales.

The solution

The solution to this quagmire is simple. Start acting like a brand. Understanding what motivates your target market really once you take the table stakes out of the equation. Understand the highest emotional intensity of the market that are unclaimed by players of the class and make them real in your organization. This means that you must be ready to embrace a new model for your company that prepares the organization for future challenges.

This is not simply a record of a new global marketing message, even if one is undoubtedly necessary. This is a search for a new brand. A new meaning for your business, which requires a new way of thinking everything they do, say and manufacturing. If what you see, do not force the vast change the whole organization, then I guarantee that I have not found the answer .......