Originally Published MX September/October 2005
ADVERTISING, DISTRIBUTION, & SALES
Device Marketing TodayAward-winning campaigns address new media, consumer awareness, new product categories.
Rachelle Grabowski
Outside of Hollywood, few industries are driven by awards. But awards can provide insight into what an industry values, how it has evolved, and where it is heading. As usual, therefore, this year's In-Awe awards reveal current trends in medical marketing—in particular, medical device marketing.
The Medical Marketing Association (MMA; San Francisco) issues its International Awards of Excellence (In-Awe) annually to recognize the most creative work in medical and healthcare marketing for professional and consumer audiences. The In-Awe competition is now in its 21st year. Winning the award is well-known as a mark of success among device, diagnostic, and pharmaceutical marketing professionals.
Each spring, a group of agency- and client-side experts meet under MMA auspices to judge medical marketing and promotional materials in dozens of categories. The judges split into teams and spend the better part of the day evaluating entries. This year, 30 judges reviewed more than 800 submissions—the most in the awards' history.
Entries were assessed on how well they met their stated marketing objectives and on the quality of creative execution. By day's end, the judges had chosen gold, silver, and bronze winners for each of the more than 40 categories, as well as the gold-award winner determined to be best in show. The 2005 In-Awe Awards were presented in June at a black-tie dinner and ceremony at the MMA national conference in Santa Monica, CA.
The MMA has always considered medical device marketers important. From the day the association was formed 40 years ago, device marketers were part of its charter. The group's continued emphasis on devices was evident at the 2005 national conference, which featured a number of breakout sessions and workshops specifically for device marketers. In addition, the association named Mark Miller, vice president for sales and marketing at Zonare Medical Systems Inc. (Mountain View, CA), one of its two medical marketers of the year.
Last year, LifeScan Inc. (Milpitas, CA), a Johnson & Johnson company, and its agency, Anderson DDB San Francisco, led the In-Awe competition with 11 awards for their OneTouch blood glucose monitoring system marketing campaign. In 2005, there were a number of strong showings among the winners. Collectively, they provide a nice snapshot of today's best medical device marketing in the country, and perhaps in the world.
Jocoto Advertising (San Ramon, CA), recipient of the 2004 In-Awe Best in Show Award, continued to be honored for its marketing savvy. The agency scored in 2005 with wins for three clients, Carl Zeiss Meditec (Dublin, CA), R2 Technology Inc. (Sunnyvale, CA), and Concentric Medical Inc. (Mountain View, CA). Seidler Bernstein Inc. (Cambridge, MA) garnered the most device category awards for a single client. Its work for Boston Scientific (Natick, MA) won three awards. Medical device marketers picked up awards in each of the In-Awe competition's 10 major categories, despite going head-to-head with pharmaceutical company campaigns backed by much bigger budgets.
Redefining the Category
The range of award-winning device marketers reflects the breadth of promotional thinking and innovative approaches behind the rapid growth of this healthcare industry sector. While the public's focus—not to mention scrutiny—is often on pharmaceuticals, devices represent a healthy market of $215-billion-plus that is expanding at double-digit rates.
This growth brings both good and bad news for medical marketers. More dollars are being spent on devices. However, competition is growing, and the device market is going through some significant changes.
"We are seeing more and more vendor consolidation and product parity," says Kathleen Bernstein, principal and head of client services at Seidler Bernstein. "Hospitals don't want to deal with many different companies to stock interchangeable products. And doctors are getting tired of hearing the minutiae of product details when the differences are so small in reality."
Another threat to healthy competition in the device market is the relatively new practice of gain sharing, in which hospitals give physicians monetary incentives to use preferred, lower-cost devices.
Inflation also may become a hurdle for device makers and marketers. Recently, the relatively weak U.S. dollar has been good for device sales worldwide, but a strengthening dollar threatens to cut into device makers' profits.1
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| Lena Chow |
The very definition of a medical device is changing as well. "Looking at products that are coming onto the market, we see the convergence between devices and pharmaceuticals," says Lena Chow, chairman and CEO of JYT Health Media Corp. (Palo Alto, CA). She sees good examples on the interventional side in drug-coated stents and ultrasound-enhanced thrombolysis. In the diagnostics area, Chow notes, "We're fast entering the age of personalized medicine, where diagnostics and pharmaceuticals work hand in hand from development through trials and into clinical use."
Bernstein concurs. "Fusion technologies and the intersection of drugs and devices will change the landscape for device companies and marketers," she says. "Products like drug-eluting stents are creating a completely new category. And the tie between diagnostic testing and pharmaceuticals is tightening rapidly."
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| Neal Daunhauer |
Neal Daunhauer, director of brand management at Cook Inc. (Bloomington, IN), adds, "Medical device marketing seems to be reinventing itself as fast as the industry it serves. Customers are less likely to desire, or even trust, conventional approaches. As a result, device manufacturers are beginning to become more creative with their approach."
The New Regulatory Climate
In the rapidly changing medical device industry, one thing is sure: regulation is a part of life. In an interview earlier this year for MMA, FDA's Deborah Wolf, JD, regulatory counsel and acting coordinator of promotion and advertising policy in the Center for Devices and Radiological Health, said that the two most common problems she sees in device marketing are changes in a product's intended use and the failure to provide consumers with sufficient information about risk. "Marketers can avoid such pitfalls by working closely with the company's scientific and/or regulatory staffs to ensure that marketing materials represent the demonstrated medical use of the device and that they comply with the FDA's statutory and regulatory requirements," Wolf suggested.2
Medical marketers have long been concerned with FDA regulations. Now, the industry is beginning to pay more attention to financial regulations, too, in response to the restrictions imposed by the Sarbanes-Oxley Act of 2002.
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| Jack Angel |
Jack Angel, executive director of the Coalition for Healthcare Communication Foundation (Greenwich, CT), sounds a note of caution. In his opinion, "the device manufacturers have to be even more careful about their marketing activities than the pharmaceutical manufacturers due to the unique nature of their products. Since providers often require manufacturer assistance and education in order to use their products, it requires a close relationship that the Office of Inspector General may look at for antikickback abuse and off-label information delivery." Furthermore, says Angel, the relationship may complicate the continuing medical education process, if offered, because of conflicts of interest. "So care must be taken," he concludes.
Financial and FDA compliance will likely become more complex as the line between devices and pharmaceuticals continues to blur. In April of this year, FDA issued a concept paper on the codevelopment of drugs and diagnostics.3 While this document is only a preliminary draft, it is a good predictor of things to come. It is possible that in the not-so-distant future, device marketers will be facing regulations that have to take into account the complexities of the device market, the pharmaceutical market, and a new market that encompasses both.
Direct-to-consumer (DTC) advertising for devices is a trend still in its infancy. But if the drug companies' experience with DTC is any indicator, device marketers should brace themselves for some tough challenges ahead.
In July, Senate Majority Leader Bill Frist (R–TN) called for major changes in DTC marketing. He said that "a lot of direct-to-consumer advertising misleads patients. It may oversell results. Or it may undersell the risks. Either way, misleading drug advertising hurts patients and definitely pressures doctors to overprescribe."4 As part of his proposed reform, the senator is calling for pharmaceutical companies to voluntarily restrict DTC marketing for the first two years following a drug's launch.
The pharmaceutical industry responded to Senator Frist's call by drafting guidelines that support an advertising moratorium for an unspecified period of time after a drug is launched.5 This waiting period is ostensibly meant to give physicians more time to learn about the drug before their patients begin to request it.
Asked to comment for this article, a spokesperson from the majority leader's office said that Senator Frist's proposal was intended to apply to drugs. He added specifically that it was not intended to apply to medical devices. But while devices are not in the senator's crosshairs at the moment, things may change as the practice of advertising devices directly to consumers becomes more prevalent.
DTC for Devices
There is a bright side to the device DTC story: opportunity abounds. To date, an estimated 117 million Americans have searched online for health-related information, and 89% of a representative sample polled said their searches were successful.6
Jay Cooper, senior vice president of advertising agency Archer/Malmo Inc. (Memphis), says, "Everybody is trying to figure out how to influence the consumer." The medical device and implant manufacturers, seeing how effective DTC was for the pharmaceutical companies, are trying to take the same approach. "Unfortunately," says Cooper, "it's not as simple as swallowing a pill. These are complicated surgeries that take a good deal of training. One company's implant or device surgical procedure might not be done the same way as another. Or, the patient's needs might not warrant using a certain implant or device."
Says JYT's Chow: "From the perspective of how products are brought to the market, one significant driving force has been the empowered patient as a strong influencer in product adoption and use, even in cases of technologically complex products used by highly trained specialists. In some cases, disease awareness drives identification of patients, which then drives product use." She cites as examples normal-pressure hydrocephalus (NPH), a treatable condition often confused with dementia or Alzheimer's disease, and dystonia, a debilitating movement disorder, which can be treated with neurological intervention. "I also believe," says Chow, "that quality problems, as exemplified by recent adverse publicity and product recalls in cardiovascular devices, will heighten consumer awareness of safety issues and create opportunities for brands to provide assurance and win patients."
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| Colette Kuhnsman |
Jocoto Advertising's vice president of account services Colette Kuhnsman says that DTC has its place in device marketing, but requires caution. However, several device fields, such as minimally invasive neurology, lend themselves to advantage in creating heightened consumer awareness in order to speed up the widespread adoption of breakthrough technologies. "Savvy device manufacturers already make heavy use of PR in order to spread awareness to consumers and associations," Kuhnsman says, "so carefully targeted advertising and direct marketing seem a likely next step." She acknowledges that cost is a consideration. However, she points out, DTC dollars are well spent if they translate into getting an edge over competitors and generating extra revenue.
Kevin Tausend, director of marketing for the ear, nose, and throat (ENT) division of ArthroCare Corp. (Sunnyvale, CA), says, "I think that device makers will continue to embrace DTC marketing—especially via the Web and through public relations—despite the backlash generated by prescription-drug TV advertising."
Clearly, device DTC is here to stay. Signs of even more innovative uses of DTC channels could appear over the next year, including medical-education-style device promotion.
New Media
An examination of trends and current practices in device marketing wouldn't be complete without a look at device marketers' use of so-called new media. According to Forrester Research, 87% of all doctors go online at least monthly. "Younger physicians are leading the charge with many more PDAs [personal digital assistants] than their older peers and are availing themselves of the Internet as a tool for general research and a source of specific drug and medical device information."7
Tausend says that device companies' experience with the Web and online media is too recent and too limited in nature. "We haven't used it thoroughly enough to understand what it can do for us," he says. "And neither have our physician customers. It is also difficult to keep up with the technology changes that drive the marketing potential of new media, and we are often at the mercy of our IT departments on that front." But Tausend does see more device marketers treating new media as an integral part of their overall marketing mix rather than the esoteric specialty of a corporate interactive marketing department. "That integrated approach will make it a more effective medium for us," he says.
Jo Seidler, principal in creative services at Seidler Bernstein, is sanguine about new media. "The old model of ad, brochure, and direct mail isn't enough today," she says. "Electronic media and e-learning must be integrated into the tactical mix." However, she adds, regardless of medium, "education, clinical validation, and branding are the pillars that support a device's positioning."
Her partner Bernstein elaborates: "E-media is invaluable for creating global appeal, since journals remain globally niched. The Internet has allowed us to roll out global strategies for our clients and launch products worldwide."
One exemplary use of new media for the device world is live surgical Webcasting. Internet healthcare broadcaster slp3d Inc. (West Hartford, CT) creates surgical Webcasts that function as tutorials for surgeons in remote areas. Now the Webcasts are gaining popularity among potential patients, who constitute about 70% of the viewers.8 This technology with its audience of sophisticated patients can serve as a marketing tool for device manufacturers, particularly those with appealing minimally invasive procedures.
Alex Fraser, director of marketing for slp3d, says that the technology can be implemented in a controlled environment or be available to the general public. He adds that physicians and highly educated consumers are asking which devices will be used for an upcoming surgery after the top-line information is publicized.
Working with an Ad Agency
Intelligent use of new media can give device marketers an edge. So can working with an advertising agency. The overwhelming majority of this year's In-Awe winners were recognized for work they produced with their agencies. Retaining an ad agency may not be a prerequisite for producing award-winning work, but it can often bring the marketing campaign to a more competitive level.
Christopher Dimmock, director of account planning at Seidler Bernstein, says that his agency "provides an outside perspective to the more technical focus of our clients. We help them turn product specs into a marketable need. We articulate the complex to make it understandable and relevant."
Jocoto's Kuhnsman notes that "an agency's role is to partner with the client, leverage the client's experiences and product knowledge, and from there work to build a brand that will differentiate them in a cluttered marketplace." Her advice to device makers and marketers: "Be bold, be disciplined, be unique—and do it in a way that connects with your audience."
JYT's Chow adds that clients should begin working with agencies early in the game. "The agency brings strategic insight, communication expertise, and execution experience. To leverage this fully, the client needs to think of the agency as a partner and an extension of the marketing team from the beginning, long before the launch."
The Fundamentals Remain
Despite all the changes in the device industry, experts agree that the fundamental principles of marketing still apply.
ArthroCare's Tausend says, "In an industry filled with buzzwords, the basics still hold true: device marketers can make sure that their message to physicians is clinically relevant, that it is repeated across multiple media with sufficient frequency, and that the calls to action support the overall business and marketing strategy."
Cooper of Archer/Malmo says that the most important thing to remember when trying to break through the clutter is to deliver just one message at a time. Adds Kuhnsman: "It is really about developing your own brand personality in a way that is unique in your market space, and then being consistent with it. There is a tendency in devices to focus on the product itself rather than the results of the product." Where the true message lies, she says, is in the emotional satisfactions a company's focus creates, its dedication to providing the world with a beneficial technology.
Even though DTC approaches are gaining popularity among device marketers, clinicians are ultimately still the major purchasing influencers. At a workshop at MMA's recent national conference, Betsy Merryman of FischerHealth (Los Angeles) cautioned medical marketers not to forget to talk to the clinician before engaging in communication with consumers about a new device prior to launch.
Fittingly, Miller of Zonare Medical Systems, MMA Medical Marketer of the Year, has the last word: "First, you have to have a product that brings significant benefits to the customer. All the clever marketing can't substitute for a product that is mediocre or marginally beneficial to the industry."
References
Rachelle Grabowski is a freelance healthcare and medical writer.
Copyright ©2005 MX
