Large differences in marketing budgets for medical devices
8 August 2006
Research Triangle Park, N.C., USA. The average marketing
investment for a new medical device is $1.8 million, according to a new
report from research firm Cutting Edge Information.
The report, Medical Device Product Management: Benchmarking Development,
Marketing and Promotion, shows that companies consider a device's
commercial potential when determining marketing investment levels. An
adequate marketing investment prepares new medical devices for commercial
success, but disparities among technologies, companies and markets drive
differences in marketing budgets. Also, limited margins often restrict
marketing investments. The average of $1.8m excludes two products with
significantly higher budgets — $75 million and $41 million, which would have
taken the average to over $12m.
Devices also need adequate staffing.
Throughout device approval, manufacturing and the first year on the market
the average staff headcount is 22.5 full-time equivalents (FTEs). Medical
device marketing teams appear to be well staffed, but that figure includes
staff from several other functions such as research and development,
commercialization, manufacturing, legal, executive and accounting. The
function with the most staffing support is manufacturing.
"Given the short
shelf life of most medical devices, product launch is a critical period,"
says Research Team Leader Eric Bolesh. "It is critical for companies to have
a solid marketing strategy in place, as well as enough staffing to execute
the strategy and maximize product potential in a limited timeframe."