Still on the subject, this is the second and final post about the strategic marketing for medical devices, which includes segmentation, targeting and positioning.
Today, I’ll discuss mainly; about targeting because in my experience it is the most difficult step of the process.
If you’re probably wondering why I’m not discussing segmentation first, well that’s because I already talked about it extensively in my previous post- You can refer to it (Part 1- Segmentation) here.
Introduction
“You will never reach your destination if you stop and throw stones at every dog that barks.”
Winston Churchill
This quote is inspiring and has a lot to do with today’s topic. Let me tell you the truth, it only goes to show that not every distraction requires your attention.
I know it is difficult to practice and requires discipline; however, when you understand this as a marketing or sales professional your perception about appealing to all customers will change.
The deep reason is because you cannot satisfy everybody. Likewise, not everybody will like your product, and there is nothing you can do about it.
What Is Targeting?
Targeting means that, instead of aiming to serve the entire market with a product and its supporting marketing activities, most companies, especially SME, should identify segments; and accordingly, develop suitable products and marketing programs that match the needs of one or more segments.
Also in targeting, segments should be categorized according to their present/future attractiveness. And the company’s strengths relative to different segments’ needs and competitive situation.
The following are few ideas to be used for this purpose:
- Measure segment attractiveness (size, proportion of overall market and growth)
- Evaluate company strength factors in relation to the segment
- Evaluate segment profitability (volume and price)
- Analyse segment trends (growth, decline, stable)
- Consider customer behaviour in the segment (needs, level of use, loyalty, price sensitivity)
Why Is Targeting Important?
The resources required to address the entire market are not available for the majority of the companies; the good news however is that in most cases it is not strictly necessary to try to serve everybody.
Moreso, in the crowded and competitive arena of medical devices, especially if you are not part of the big players club, targeting increases the effectiveness and efficiency of your marketing activities.
The impact on effectiveness is related to the fact that sales and marketing targeting:
- Produce high quality leads
- Differentiate your company/product from the competition
- Increased loyalty
- The message resonates better with the target audience
The targeting impact on efficiency is due to:
- Better Focus
- Decreased market size and coverage need
- Increase motivation and engagement of the sales force due to higher success rate
Sales Force Targeting- What You Need To Know
Targeting is not only a marketing tactic that is part of a marketing plan because targeting MUST also be implemented by the sales force.
My vision of sales force targeting is very simple: it’s about going to the right customer (or prospect), with the right product, with the right message, at the right time, in the right way and for the right reason.
How To Implement Targeting Tactics In The Sales Process:
Some people say that there are several ways to implement targeting tactics in the sales process, however, highlighted below are the Most important of them all:
Right customer or prospect: the marketing team should have already built a customer profile or buyer persona according to one or more segmentation strategies.
An example of this is surgeons performing complex oncologic cases, in large university center and interested in new surgical approach. Identifying the needs of this group and solving it through your product, is one of the ways by which targeted marketing improves your sales/profit margin.
Remember also that bringing value to your market mostly lies on the needs of your customers. A product will not be perceived as valuable if the buyer doesn’t have a need for it.
Right product: your product must have the features and benefits that are essential for the targeted customer. And the product must bring value to the targeted customer. A good example: a large product portfolio for a segment of customers with a large and diverse record of cases to satisfy their surgical need.
Right message: your communication should focus on solving the problem of the targeted customer. For example: you will have to increase accuracy and safety in revision cases.
Right timing: easy to say but difficult to do; however, you have to engage with the prospect/customer when they are keen to consider the product. For example: in a tender business, for some customers it could be when the tender is going to be released but for others when the tender is already awarded. In other words, Always be conscious of timing before pitching your product.
Right way: depending on the customer’s predominant learning style; by using the Visual, Auditory, and Kinesthetic method, the message can be better adopted by the customer.
Right reason: there should be a strategy around the targeting decision and the reason should be better efficiency and/or efficacy. Deviation from the target segment of customers is acceptable but not a complete re-orientation.
Positioning
The third pillar of STP marketing involves deciding on the position within the market. Positioning is the perception of a product in the mind of the target customer and reflects the essence of that brand or product in terms of its functional and non-functional benefits as judged by the customer.
The way in which a brand or a product is perceived by its target markets is determined by a series of factors including:
- Product perceived quality, performance and range
- Pricing level (premium, value, low cost)
- The sales channel used (direct, hybrid, indirect)
- The types of marketing activities to support the product
- Customer experiences and word of mouth.
Positioning is therefore the process of designing an image and value so that customers within the target segment understand what the company or product stands for in relation to its competitors.
Without consistency, the believability of the positioning strategy reduces dramatically; while the perceived quality, pricing and marketing activities must be congruent.
That said, the 2 basic steps to develop a market positioning are the positioning statement and the marketing mix.
Positioning Statement
The positioning statement is the expression of how the product, and service fills a particular consumer need in a way that its competitors don’t.
Here is a template from Geoffrey Moore’s book- Crossing the Chasm:
For [target customer] who [statement of the need or opportunity], the [product name] is a [product category] that [key benefit, compelling reason to buy]. Unlike [primary competitive alternative], our product [statement of primary differentiation].
The Marketing Mix
The Marketing Mix 4 Ps:
Product: The Product should fit the task consumers want it for. It should work, and it should be what the customer is expecting to get.
Place: In the medical device market, is the kind of sales force used to reach the segment.
Price: it is simply the amount paid by the customer for the product. The Product should always be seen as representing good value for money.
Promotion: It is how you will raise the awareness of the product along with its benefits to the aimed segment.
Wrap Up
Conclusively, Segmentation, Targeting and Positioning is good for companies and customers.
It improves marketing strategies, customer experiences, builds brand awareness and loyalty, and could definitely help developing better products.
Moreso, STP makes it easier for medtech companies to reach their target audience in a more meaningful way. So, if you’re struggling to stand out in a crowd of similar products, try using these tactics to connect the right customer with the right product.
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