In a dynamic business environment where an organization’s growth goals shift rapidly, companies review and modify their marketing strategy, tactics, time and activities on a timely basis to match the product and business requirements. Data gathered through this study will aid organizations to benchmark strategic and tactical marketing activities with top companies in the medical device-healthcare sector, to support their product portfolio in driving corporate growth and profitability.
2. Research Objectives and Priorities
Best Practices, LLC conducted this research to identify Marketing Staffing and Performance
levels across the Medical Devices industry. Research partners participated in a benchmark field
study that identified performance levels across a broad range of key business performance
factors.
Study Objective & Methodology Key Study Factors
Benchmark research examined the What staffing and productivity
Marketing Staffing and Performance levels exist across healthcare
levels of health care business units business models?
to understand optimal performance
What growth and profit margin
ranges.
levels characterize high
Analysts segmented benchmark performance?
participants into three groups with
What strategic marketing activities
different business models and
are most important and consume
dynamics.
the greatest resources?
The benchmark field work
developed and analyzed the
importance of more than 15 critical
performance factors.
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3. Probe Multiple Dimensions of Marketing Productivity
The field research study engaged 16 executives at medical devices companies in the field
research and probed twelve critical marketing productivity factors across three broad business
segments.
16 Survey
Respondents
Branded Generic
Medical
Pharma Pharma
Devices
products Products
Strategic Tactical Strategic Tactical Strategic Tactical
Marketing Marketing Marketing Marketing Marketing Marketing
Product Category Benchmarks Staffing Levels Benchmarks Profit Margin Benchmarks Strategic Activity Benchmarks
Customer Segment
Unit Sales Benchmarks Time Allocation Benchmarks Tactical Activity Benchmarks
Benchmarks
Organizational Structure Product scope & coverage
Growth Rate Benchmarks Activity Impact Benchmarks
Benchmarks benchmarks
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5. Universe of Learning: Medical Device Leaders
Sixteen executives representing either full-company or business unit perspectives shared
benchmark data for eleven companies for marketing resources and activities supporting medical
device products.
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6. Sales Growth Rates Reflect Product Type
Successful medical device products have the potential to grow rapidly, thereby winning marketing
resources to create demand.
Sales Growth Rate Benchmarks for Product Categories
R e v e n u e G ro w th R a te s
19%
16%
17%
15%
12% Mean
13% 11% 15%
11% Median
9%
10%
7%
8%
5%
Generic Product Medical Device Branded Rx Product
N = 57
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7. Medical Device Portfolio Growth
Growth rates in the Medical Device segment typically range between eight and fourteen percent
averaging between ten and eleven percent. High-growth portfolios, being smaller and more
focused, can reach as high as twenty-five percent annually while the lowest-growth portfolio
lagged at 3 percent.
Please provide the approximate growth rate for your product portfolio.
Max 25%
75th Percentile 14%
Mean 11%
Median 10%
25th Percentile 8%
Min 3%
0% 5% 10% 15% 20% 25% 30%
Growth Rate
(n=16)
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8. Medical Device Tactical Marketing Staffing
Medical Device tactical marketing appears to be more labor intensive than device strategic marketing. The
average benchmark for tactical marketing staff is approximately four FTEs per $100 million in revenue
generated, twice that of strategic FTE benchmarks. The most efficient tactical performer supports $100 million in
revenue with less than one FTE.
Number of Tactical Marketing FTEs per $100 Million Revenue
Max 16.2
75th Percentile 7.0
Mean 4.9
Median 3.5
25th Percentile 2.4
Min 0.7
0 2 4 6 8 10 12 14 16 18
FTEs per 100 Million Revenue
(n=13)
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9. New Product Development Dominates Strategic Activity
Medical device strategic marketing staff invest their time across multiple marketing fronts. New
product commercial development wins greatest time investment with more than 43% of time
allocated here – followed by managing product enhancements, branding and other varied
marketing activities.
Time & Activity Benchmarks for Device Strategic Marketing Staff
Medical Device Strategy Groups
Benchmark Class
New product commercial development 44%
Troubleshoot new product issues (post-launch) 6%
Branding 9%
Managing product enhancements and / or changes 15%
Marketing communication & promotion 6%
Medical education, events and promotion 7%
Data management 4%
Communicating product changes and
5%
enhancements
Supply management 4%
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10. About Best Practices, LLC
Best Practices, LLC is a research and consulting firm that conducts work based on the simple
yet profound principle that organizations can chart a course to superior economic performance
by studying the best business practices, operating tactics and winning strategies of world-class
companies.
Best Practices, LLC
6350 Quadrangle Drive, Suite 200,
Chapel Hill, NC 27517
919-403-0251
bestpractices@best-in-class.com
www3.best-in-class.com
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