Medical Industry by muddaser


									                                         Medical Industry

The health care industry, or medical industry, is a sector within the economic system that
provides goods and services to treat patients with curative, preventive, rehabilitative, palliative,
or, at times, unnecessary care. The modern health care sector is divided into many sub-sectors,
and depends on interdisciplinary teams of trained professionals and paraprofessionals to meet
health needs of individuals and populations.

The health care industry is one of the world's largest and fastest-growing industries.
Consuming over 10 percent of gross domestic product (GDP) of most developed nations, health
care can form an enormous part of a country's economy.






Chair, table, computers, projectors, LCDs, security electronics.

Raw material:

Raw medicine

Fabricated parts:

Bottles, caps

Industrial supplies MRO:

Those medicine machines require maintenance and repair


Demand is derived from many factors like climate, disease, illness.

We can also create demand through aesthetic need like: Do you want to be slim and things like
Positioning — the art of creating favorable comparison on your company in the market

                  Familiarly, positioning is the term used in marketing to denote the position of
                  a product (or service) on the "product ladder of comparison" as seen by the
                  target market for that item of sale.

                  For instance, a Rolls-Royce is on top of the product ladder of automobiles for
                  those whose values are conservative in this area.

                  Reversely, for sport car enthusiasts, the top step of the ladder is probably
                  occupied by Ferrari Enzo or McLaren F1 or some other such super-expensive
                  marvels of transportation style and power.

You see a lot of manifestations of positioning in its cruder forms. Essentially, advertising,
copywriting, the planning of campaigns and the devising of strategy of approach are all subjects
that require a lot of experience.

Yet many business owners feel compelled to write their own copy, create their own approaches
and devise their own positioning. This is a human trait in which competence in one area is
assumed to stretch into a whole different subject matter.

But it doesn't. Competence in advertising, marketing and, above all, positioning all requires a
LOT of experience.

Each is an ART, a craft that takes time to learn and the only way you can acquire the
competence is through trial and error, combined with continuous learning curve.

Thus, you can see positioning attempts that have the adverse effect than what was intended.
"Our cranes are the Rolls-Royce of the construction world" would be an example, one I hope
that no-one is actually using.

You have "the Rolex of this or that" and other equally halting positioning attempts in this world.

So, how do you position correctly then?

                  Positioning comparison between B2B and consumer sectors

                  Let's differentiate between B2B and consumer marketing from the offset.

                  A lot of silly thinking has seeped in from the consumer marketing and
                  advertising in which there's a lot of "Alice in Wonderland" included.
With this I mean that with consumer marketing the ideas you want to impinge upon the public
come from the advertiser and then there's a lot of cute trickery and entertainment value
involved, pounded home with television advertising costing millions.

You get to use your creativity more and it matters not (much) HOW you are noticed, as long as
you are by millions of people hundreds or thousands of times... and hey presto, they pick your
product from the supermarket shelf.

In B2B positioning you cannot afford advertising campaigns whose media bill runs into millions.
Your target group is counted in hundreds or thousands of decision makers rather than millions
or tens of millions of people.

In consumer marketing, the positioning is a simple matter really (although its successful
implementation is usually not). "Drink this soda and you'll be COOL!" "Use this anti wrinkle
cream and you will be desirable!"

The idea is to catch as many people as possible and communicate the message in as short a
time-span as feasible... and then just repeat it over and over again.

In B2B, the decision-making process is longer as the sold items are more sizeable investments.
Nobody buys industrial equipment because it's the "in thing to do."

You need far more factual positioning, a longer contact that is carefully prepared to interact
mutually with the prospective customer — instead of one-way feed of glittery claims as is the
case in consumer advertising.

In B2B marketing, it would be rather mindless to create entertaining films of 30-60 seconds to
show to these few people.

They might be impressed but such short spurts of information would not give dividends to
justify the huge expense.

                  Positioning on the B2B sector

                  In terms of positioning and strategy of approach, marketing is a far more
                  challenging undertaking in the business-to-business sector that with

                  On the brighter side of the coin, the cost is far lower and, if done correctly,
                  the risks involved far smaller than in consumer advertising.
In actuality, there can be seen not one but several "ladders" on which your company and its
items of sale need to be firmly planted.

Before we get into these various categories of positioning, let's mull over that last concept a bit.

See. In terms of positioning, you actually only have two choices.

Either YOU position yourself... or others will do it in your stead.

"Others" here refers mainly to your target group but leaving it to them leaves you vulnerable to
any negative rumors anyone cares to spread.

Not positioning your company yourself, you leave a vacuum which others will fill with whatever
information THEY consider correct or justified.

Thus we see that it's always better to do your own positioning than not. The idea of "letting the
market decide where we stand in comparison to others" is an invitation to potential disaster,
despite the apparent logic of this "everyone's free to make up their mind" concept which in
itself is very noble.

Yet, as it is so popular to not bother with positioning, the most common "positioning" of mid-
sized companies out there can be anything.

It could be "it doesn't exist" because the main part of the potential market could be totally
unaware of your existence. It could be "they're expensive" just because someone SAYS so or
you fail to explain your pricing includes something others' quotes don't.

It could be anything... and it could be orchestrated by sources not favorable to you.

The point is that unless YOU provide the message then it won't be there at all OR someone else
will compose it for you, in which case the positioning won't be to your liking.

So when it comes to positioning, it's better to do than not.

All right, next let's look at which types of positioning are useful in the B2B sector. Now I'm not
going to wade through all of them and I'll be brief with each as this is a subject on which books
can be written.

                   Positioning your products and/or services

                   This is the basic art of positioning.
You need to find out where your products stand in relation to competitors'.

Here, we aim for technical knowledge, not concerning ourselves with how the target group
thinks currently, as that's what we're out to change, right?

Are you at the same level technically or are you not? Where do you stand in terms of quality,
durability, reliability, usefulness and such aspects of usage?

Do you have some unique benefits which others lack? Is your target group AWARE of these
benefits at all?

Do they realize these benefits and, if not, how do we achieve such realization? What do THEY
call the problem that this unique characteristic solves?

Once these things are known, we can then position your product on the ladder of all similar
products on the market... and do it so that it is believable and yet as high as possible.

Positioning YOU in relation to your clients

                  How does your company come across to its intended customers, both
                  prospective and existing buyers?

                  Do they perceive your company (and its representatives) as a friendly, no-
                  nonsense provider of high-quality goods with a good service attitude... or do
                  they think you're distant and hard to talk with?

What kind of a reputation does your company have out there?

These things are easy to set right provided we KNOW how you're seen and how the target
group members (in average) see THEMSELVES.

If they see themselves as hands-on, down-to-earth practical professionals then we need to
GRANT them that in our communication and avoid anything that would give mixed messages in
regards to this.

And although it sounds quite complicated it really is not. A simple marketing survey will answer
these questions quickly and with astonishing accuracy.

Positioning your message to produce response through the biggest desires of the target group
                   There's a Catch 22 in marketing that makes us believe that we are the best
                   ones to know what our clients need and want.

                   Technically, it is a correct conclusion. Theoretically a client should merely
                   contact you, give you free hands to put together the best solution to their
                   needs... and then just pay the bill.

Too bad it doesn't work that way, eh? You and I would be billionaires by now, what with all the
work we've done, right?

However, the insistence to make our own decisions is part and parcel of human nature. Your
prospective client is the most expert person HE knows and he isn't about to give you the power
to decide what he wants and needs.

Thus, we need to go through what our target group wants and needs; regardless of how
mistaken it may appear to us.

The more we position ourselves into providing what our customers need and want (AS seen by
THEM), the more valuable your services will be seen by the clientele.

This is so much the case that PROSPECTIVE customers will make a good part of their decision
based on this single premise: "How well do these guys appear to know what I want and need...
and how well do they work according to my wishes and requirements?"

Now, of course you and your sales persons do their best to accommodate the needs and wishes
of future customers. It goes without saying.

But here's the thing: Positioning is all about ADVANCE CONTACT, see?

Your promotional materials, your first contacts with prospects... these are all done "blind" as if
it were, without the ability to ASK... and that's assuming all your salespeople are qualified
market researchers who know what to ask, what conclusions to draw from the reply and HOW
to ask.

So your marketing spearheads everything and the way you position yourself there factually
predetermines the reaction of most prospects... well before you become acquainted with them
so you could ASK.

So, what's your positioning?

How CERTAIN are you which needs customers have in common and which they don't?

How certain are you what is the most wanted quality of service, what's second, third and so on?
How certain are you of the words they use in describing these things, the problems they feel
are important, the things they consider impossible (and which you should not say you can do at
that point) and so on?

There are two kinds of certainty.

One is self-created.

The other is based on research data.

Certainty alone does not guarantee success, as witnessed by those millions who went under,
never once doubting that their certainty was not justified by reality.

So consider researching your target group on what THEY want and need because THEY are
dead-certain that they are RIGHT, see?

In this matter, it's better to be successful than right...

Positioning the emotional tone of your message to correspond to that of your target group

                    What's the emotional tone within your target group? Are they angry men,
                    are they conservative, are they hopeless about their future, do they feel
                    sorry for themselves... or what?

                    What are they angry ABOUT... what riles them up good and proper?
                    Whatever it is, you had better know it and then devise a positioning that also
                    rants about that same thing THEY hate.

What do they think is at all achievable in this or that subject?

Promise them more and you'll lose your credibility as they "know you're lying" (see — they
KNOW it can't be done and here are you saying it can and it's easy... so you MUST be lying...)
and they won't believe anything you say after that.

How MUCH improvement do they consider possible? Talk about more than that and again
you're undercutting your own credibility.

What do they dream about in terms of success in connection with your products / services? Go
with that as your main benefit and you'll find a lot more prospects and sales in your wake.

What do they believe is achievable through your service/product although it strictly speaking
isn't necessarily so or its acquisition depends on the buyer? Find out a way to promise that with
ironclad conditions and clarifications that safeguard you legally but open up a huge demand for
YOUR products/services.

What do they absolutely believe about your industry and/or products, despite all efforts of you
(and your competitors) proving otherwise? You had better AGREE with that in some passive
way or else you won't get far with your prospects. Y

You can change the mind of each individual customer LATER once he has gained sufficient
understanding about the subject... but try it now and you'll fail.

It's all a question of positioning your message (and, thus, YOU) on par with the emotional
responses of your target group as average. You survey to find out and go with the main points
that come out and start from there.

I think you can see where this is headed, right? Reality, your actual abilities, the true nature of
the industry and your products... none of these has much to do with positioning at this phase.

You cannot START at that point. You must start at where your target group is in terms of
knowhow, knowledge, understanding, beliefs, fears, assumptions and emotional responses...

...and then work your way up from there, giving information, creating more understanding,
doing away with false beliefs and slowly building trust that translates into more positive
emotional responses.

With some prospects this cycle can happen SO fast it's almost the speed of light. You don't even
notice it. With others, you'll need to work a bit to make the change.

But with everyone, it will work better; your chances of success will be far greater once your
marketing has been correctly positioned to correspond with the emotional responses of your
target group.

                   Positioning — the key to successful B2B marketing

                   On the whole, marketing really builds on clever and realistic positioning.

                   To give you an idea of what's involved; let me say that there are about 100
                   issues that need to be taken into consideration in positioning. For each of
                   these there are perhaps 50-100 alternatives, some of which you know and
                   others that are unknown to you as yet.

These 100 issues need to be found so we have the top item on each (out of these 50 possible
alternatives) and all of these points are then put in CORRECT SEQUENCE so that they act as
steps on a ladder of enlightenment if you wish, a staircase that your prospects can walk with
ease as each step is correctly elevated and leads neatly to the next.

It all happens in the mind of the prospect. HE forms these data, gradually advancing from
where he's at currently to where you want him to graduate in terms of understanding and

Now you see that there's no hope to come across this staircase by luck. "Hit and hope" is not
the recommended technique for positioning. As positioning is the foundation of your whole
marketing strategy, it's best to be thorough.

But here's the good news: Once you have established the facts on which to create your
positioning so it will be based securely on research, it will last for a long time, a decade or two
in fact. This positioning is based on the innermost attitudes of your target group and those
change very slowly indeed.


We set our pricing according to 3Cs




Use standard pricing for all and special pricing for extra ordinary large units.
Technology Adoption Life Cycle

New technology presents risk for many customers. They react differently toward this risk based
on their innate characteristics, the wants and needs of their companies, and the behavior of
other buyers. The Technology Adoption Life Cycle (TALC) models how different groups of
customers adopt to discontinuous innovation at different times. This model helps high-tech
marketers build the best strategy for each phase of a product's life. The graphic below shows
the markets that develop along the TALC and the types of customers that dominate them.

The Early Market

The Early Market is the phase in which a discontinuous innovation can grow from merely a
technology with promise to a novel new product idea. The customers at this point recognize
that the technology is new and unproven but it has the potential for a breakthrough. The Early
Market consists of two kinds of customers:

   1. Technology enthusiasts (techies) can be found in most every organization. They are
      always looking for state-of-the-art technology, but they typically don't have the money
      to fund further development. Techies provide a good test ground for a new technology.
      They are also gatekeepers to the rest of the TALC. Impress the technology enthusiasts,
      and you can get the attention of visionaries. If the techies are unimpressed, visionaries
      will look to another way of gaining competitive advantage.
   2. Visionaries are industry revolutionaries looking for a breakthrough application that will
      give them a competitive business advantage. They see discontinuous innovations for the
       potential advantage offered, especially if the technology can give them a clear edge over
       the competition. The challenge is that they may want you to modify the innovation to
       address their specific issue, without regard to what the market wants or needs. Their
       importance lies in their ability to fund development as well as publicize it within an

The Chasm

The Chasm represents a gap between the Early Market and the next phase: the Bowling Alley. It
develops when there are few if any remaining visionaries to sell to but pragmatists are not yet
ready to adopt. Pragmatists do not see a complete solution to their problem, plus there is no
group of references that have formed that they trust. In addition, they want to see the solution
working live at customer sites. Revenue growth ceases or even recedes in the Chasm. The
length of this market lull is uncertain.

The Bowling Alley

Market momentum picks back up in the Bowling Alley phase, as early pragmatists in certain
customer segments overcome their reluctance toward discontinuity and adopt the new
technology to solve niche-specific problems. By their nature, pragmatists are reluctant to adopt
new technology and prefer to follow the herd. Early pragmatists are forced out of their comfort
zone to find solutions for broken, mission-critical business processes.

The Bowling Alley phase takes its name from the market strategy that is appropriate. The key to
success is to provide a complete solution for one segment while identifying closely aligned
segments that could benefit from a similar solution. When the momentum from successfully
capturing market share in the first segment (the lead bowling pin) is felt, this momentum is
leveraged into adjacent segments. By dominating several segments, your company may start to
emerge as a sector leader.

The Tornado

As the Bowling Alley phase further develops, a mass market sometimes emerges where the
product is swept into a Tornado of demand. Up to this point, late pragmatists have delayed
their adoption, waiting for the technology to gain a strong record of accomplishment and
enough references from people they trust. In the Tornado, these pragmatists finally shift en
masse to the new infrastructure, and they tend to go with the market leader.

Only one company will emerge as the market leader around which the standard will be
constructed. An influx of new customers creates a huge sales opportunity, and demand
outpaces supply. One key to success in the Tornado is to expand the sales channel as fast as
possible in order to capture market share at the expense of the competition.
Main Street

Once the new product and infrastructure are in place throughout the market, the Tornado gives
way to the Main Street phase. The mass market stabilizes, and the standard product begins to
experience a price decline. In this market, some conservative end users look for value-added
extensions (+1 offer) that deliver additional benefit.

Conservatives don't see value in technology just for technology's sake. They tend to stay out of
the market as long as they can, finally making the leap because they fear being left behind.
Conservatives are sensitive to price and demanding of value. The key to Main Street success is
to offer the add-on products that can command a price premium from conservative customers.

Total Assimilation

Total Assimilation marks the end of the TALC. In many cases additional services will extend the
life of aging legacy systems. In this phase, even skeptics will unconsciously or begrudgingly
accept the technology, possibly obtained as a service or designed into an end product in which
skeptics never see the technology. Skeptics are defenders of the status quo and want solutions
that have no risk.

Even though the TALC is coming to a close, Total Assimilation is not the end of the product life
cycle. Just as automobiles were in the Tornado in the 1930s and were on Main Street following
World War II, they are by no means at the end of their market. They have simply moved beyond
first-time adoption.

It can be a tough life for pharmaceutical companies sometimes. Just think how many different
bosses they have to answer to, some of whom have very little to do with a bottom-line result. It
is not enough trying to focus on the generation and development of good relationships with top
clients, but they also have to work out how to assess key account management while dealing
with the difficult demands of regulators, auditors and others.

Key account management tactics are of critical importance to a pharmaceutical company and
the tactics must be administered creatively and flexibly, but still correctly. The key account
sometimes has several different points of communication within the pharmaceutical company
and this can lead to a certain amount of confusion if not handled correctly. However, it is also
true to say that these individual “points” could view the key account from different
perspectives, depending upon the job level and/or driving force.
Most pharma consulting experts advise us that a sales executive on the front line, if he or she is
motivated by revenues, could not ultimately have the best interests of the client or the
company in focus. This is often not a cut and dried situation but rather very subtle, and can
nevertheless have an effect on the overall relationship between the two organizations.

A key account can be as valuable to a pharmaceutical company as it can provide a high level of
stability and enhance cash flow to no end. However, the designation of “key account” status
should not be given lightly. It should never be decided based on scale alone, and many other
factors must be taken into consideration. It is possible that a high-volume could result in a low
bottom-line return, due to the cost of servicing the needs of the client and razor thin margins.

Typically in most organizations, 20% of the clients represent 80% of the value and this business
metric is well-established. As such, once an account is designated as potentially “key,” it should
be segmented and categorized to determine the best approach. A number of different layers of
key account management could exist within a typical organization and all tiers of management,
especially those who regularly interact with clients, must receive correct training in the
techniques required to handle every level and type of account.

Many different ways exist to segment and categories a client, when it comes to the designation
of key account status and these include the company’s growth rate, its percentage allocation of
profits, total annual sales and peer-to-peer comparison.

The pharmaceutical consulting firm will be the first to tell the company that no two clients are
alike and furthermore that no two key accounts can be treated the same, either. Generally,
pharmaceutical consultants know how to deal with various levels of accounts and can be very
helpful in imparting this level of knowledge to the company’s various staffing points. It is best if
the pharmaceutical company develops a critical statement outlining the terms of the
relationship with each and every client. The company should never possess a standard
description of any kind, fully recognizing that the key account is so important to the company’s
long-term viability, thereby resulting in all staff members being fully trained to recognize the
significant difference between an “orange and an apple,” so to speak.
Alan Gillies is the Managing Director of L2L Consulting, specializing in enabling pharmaceutical
companies to achieve new heights of productivity and performance, throughout all levels of
management and revenue generating activities.

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