Upstream marketing Archives

12Mar 2025 by cesare ferrari

Maximizing Profits with Value-Based Pricing in the Medical Devices Sector

Downstream marketing, Upstream marketing

This is the third article on strategic pricing. In the first, I discussed cost pricing and competitive pricing for medical devices. In the second, I examined skimming and penetration pricing. Today, I will cover value-based pricing. Value-based pricing strategy In value-based pricing, you price your product according to the value generated and perceived by the customer. I have already examined the concept of value for medical technologies; please refer to this post. Basically, the perceived value to the customer primarily depends on three dimensions: clinical, economic, and psychological. The use of value pricing brings some complexity related to the various stakeholders involved in the buying process of medical devices, such as the user, the payor, and the provider, who can have divergent value perspectives. To apply value pricing, first, you must…

23Feb 2025 by cesare ferrari

Maximizing Profit: The Art of Skimming and Penetration Pricing

Downstream marketing, Upstream marketing

This is the second article on strategic pricing, you can find the first article here. There I discussed cost pricing and competitive pricing for the medical device sector. Today, I will cover two other pricing strategies, skimming and penetration analyzing their pros and cons. It's an insightful read, so follow along. Skimming pricing strategy The decision between skimming or penetration pricing is based on several factors such as the level of competition, company characteristics, market dynamics, degree of innovation, etc. Medical device companies use skimming pricing when the objective is to serve a segment of the market that is relatively price-insensitive and thus willing to pay a premium price for the product or service received. For example, skimming is used if the supply of the product is limited in order…

07Feb 2025 by cesare ferrari

Cost vs. Competitive Pricing: What’s Best for Medical Device Companies

Downstream marketing, Upstream marketing

This is the first article about common pricing strategies for medical devices. I previously discussed the importance and impact of an effective pricing strategy here. I also highlighted the factors to consider in setting a pricing strategy here. In this and the next posts, I will cover some of the most common pricing strategies used in the medical device sector with their advantages and disadvantages. Most common pricing strategies In my experience, medical device companies frequently orient their pricing on a cost basis. However, companies that employ pricing as part of strategic marketing are aware of the different pricing strategies and tactics and use a combination of them. Together, let’s explore some of the most common pricing strategies. Cost pricing strategy Companies following the pricing strategy based on the cost,…

23Jan 2025 by cesare ferrari

Key factors to consider for successful medical device pricing

Sales, Upstream marketing

Setting a pricing strategy for a medical device is not an easy job. Many factors impacting the pricing of medical devices are in continuous evolution; therefore, companies that expect to effectively manage profitably in changing markets need a clear pricing strategy governing how they will set prices to earn revenues. If you’re in doubt as to the essential factors to consider when setting a price strategy, this guide is for you. Keep reading to learn what to do and what to avoid. The pricing strategy The pricing strategy is a critical part of the overall marketing strategy. For the pricing strategy to be effective, it must align with the marketing strategy and the business strategy. If the business strategy is where to play and how to win, in my opinion,…

11Jan 2025 by cesare ferrari

Navigating the Pricing Labyrinth: Pricing Strategies for Success in MedTech

Sales, Upstream marketing

“There are two fools in every market—one asks too little, another asks too much.” Old Russian Proverb The subject of a good pricing strategy has been long debated, raising questions and concerns for very obvious reasons. To begin with, some folks agree that charging too little helps to gain market share but reduces profitability. Others say low-priced products can attract the wrong customers—those who will switch to competitors to save money. A low price could cheapen the customer’s view of the product. Conversely, charging too much may reduce product acceptance and market penetration. This topic of pricing is particularly very intense in the medical device business. Several forces like competition, concentration of buyers, globalization, internet diffusion, and lack of resources in the healthcare systems act to increase downward pressure on…

07Dec 2024 by cesare ferrari

The Cornerstone Of Great Medical Value Propositions: The Customer

Upstream marketing

The value proposition of a medical device or a drug is one of the key determinants of its commercial success. I’ve deeply analyzed this subject in 4 different articles and you can read all about it starting here. In today’s post, I will revisit the subject focusing on a crucial aspect of the value proposition design: the customer. It’s my hope that at the end you’ll have further insight into why the customer is the cornerstone of a great medical value proposition. So follow along. The foundation of the value proposition: The customer You’ll agree that to design and effectively promote medical products and services that satisfy our multiple customers we must have a comprehensive knowledge of them. And to correctly use the value proposition canvas, we first need to…

23Nov 2024 by cesare ferrari

What makes a good value proposition for Medical products?

Downstream marketing, Upstream marketing

At the heart of every strong medical product success is a good value proposition, here you’ll find out what makes a great one. The influential powers that determine customer preference may not always be initially evident. This is why we must understand what our customers are really looking for in terms of Jobs-to-be-Done, gains, and pains and consequently design products that will delight them and speak their language in our promotional material. What makes a good value proposition? Combining different sources, this is my personal list of factors to consider when building a good value proposition: Early start: To start developing a product with no clear objectives is too common a mistake. The value proposition design process is the basis for defining the product development plan and clinical development. Collaboration:…

30Jul 2024 by cesare ferrari

It’s Time for My Summer Break

Downstream marketing, Sales, Upstream marketing

As the summer season approaches, it's time for my usual break. For a few weeks, I will pause my postings and plan to return to my regular schedule of bi-weekly updates in September. Before I go, I'd like to share a summary of some series I've published over the years: Cultural Factors in International Medical Sales Selling medical products (devices or drugs) internationally involves understanding and managing cultural differences. Parts one and two of this series examine the importance of cultural sensitivity and the key elements of a country's culture, and their impact on sales. The Importance of Cross-Selling and Upselling In medical sales, upselling and cross-selling are often seen as unethical tactics, and sometimes this view is justified. However, in the first and second posts of this series, I…

28May 2024 by cesare ferrari

How To Get The Right Insights From The VOC

Upstream marketing

Recently I’ve been discussing with a founder of a MedTech start-up on the importance of collecting the VOC (Voice of the customer) and validating the high-risk hypothesis. I’ve come to observe that MedTech start-up founders are generally very well equipped with scientific knowledge and technical expertise; however, they lack some expertise in properly interacting with customers. Start-up teams also come up with smart and creative solutions but they frequently risk missing the right insights to validate their solution and high-risk hypothesis with customers. While there are many factors to be considered for a successful VOC study, here are my top four: 1. Identify your customer(s) Before even starting your VOC, it is fundamental to determine who the customer is. You’ll also need to consider who you need to talk to…

19May 2024 by cesare ferrari

How customer interviews can help you in defining the price of your new medical device

Upstream marketing

A few years ago, I attended a product test where a KOL used a product developed by a start-up to provide feedback. At the end of the test of the highly innovative medical device, a member of the team asked, “How much would you pay for this product?”. Although the intention was laudable because I agree with collecting data from customers for pricing a new medical device, unfortunately, the question was wrong. Therefore, do not ask this question during customer interviews about the price of new medical devices. So, if you’re thinking about contacting your potential customers to ask them about pricing of your new medical device, you should read this post to avoid making some of these mistakes. Why “How much would you pay for this?” is a…

Category: Upstream marketing