Ask most medical device marketers about market segmentation, and you’ll get an earful about physician specialty (and subspecialty), hospital/facility size or type (academic, ASC, for profit, large system, etc), or adopter type (early adopters, followers, and skeptics). Unfortunately, these approaches rarely help companies identify customer groups that are differentially addressable – i.e. best served by different products or services, different price points, and/or different marketing channels and sales techniques.
Contrast the typical medical device approach to the sophisticated techniques of consumer product firms. Are you a Barry, Jill, Buzz, Ray, or Mr. Storefront? Best Buy’s in-store staff segments you with a few questions before steering you to the products you’re most likely to want. Amazon suggests possible purchases for you, based on your clicks plus the buying history of other customers who bought the same products you did. Target buys your demographic data to combine with your Target purchase history to create custom coupons for you.
Medical device firms can do much, much more to understand and better serve their markets. Even back in the 1980′s much more could be done. Let me explain how I approached market segmentation twenty-something years ago.
Posted in Lean Medical Device Startup, market, Medical Device Reimbursement, product
Tagged Business, Customer Development, Early adopter, Health care, Life science, Medical and Life Sciences, Medical device, Medicare, startup, Startup company
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Over the weekend, a friend asked what one book I would recommend to guide a first-time entrepreneur. I replied that just one book was not sufficient. My friend suggested Michael Porter‘s Competitive Strategy, which I agreed was an excellent choice. I also told him I’d address the question more fully on my blog, so that’s today’s post.
The Launching Tech Ventures Reading List
Fortunately, local entrepreneur and investor Ty Danco recently pointed out an amazing reading list for first time entrepreneurs. Harvard B-School Professor Tom Eisenmann is developing an MBA class called Launching Tech Ventures, and he posted his well-curated course reading list on his blog Platforms and Networks. As Ty says, the list makes me wish I was back in school. While you’re working through the list, don’t skip Eisenmann’s earlier compendium of the web’s best advice for entrepreneurs. For tech start-ups, Eisenmann’s recommendations are unsurpassed.
For medical device entrepreneurs, Eisenmann’s list isn’t quite enough, so I’ve put together a few suggestions from my own experience. Leave me a comment telling me what I missed or if you disagree with my choices.
Posted in Lean Medical Device Startup, management, Medical Device Regulatory, Medical Device Reimbursement, Medical Device Venture Capital, product
Tagged Business, Centers for Medicare and Medicaid Services, Medical device, Medicare, Michael Porter, Peter Drucker, startup, Startup company, Tom Eisenmann, Uwe Reinhardt, Venture capital
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On Tuesday, two news articles provided an inside look at a critical, but little-known, part of the process by which Medicare (CMS) determines physician payment levels for new procedures. A small American Medical Association (AMA) committee wields an unusually large influence.
If you are concerned with physician payment levels for your new procedure, check out the articles here:
The Center for Public Integrity reports on the AMA RUC committee.
WSJ reports on the AMA RUC committee.