Radically Customer-centric Marketing - · PDF file Radically Customer Centric Marketing: Recap Marketplace chatter and competition continue to grow which necessitates the need to start

Radically Customer-centric Marketing November 2008

(Presentation abstract)

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Background Brand communications company in the outcomes business

Brand strategy, contact planning, interactive, demand generation, creative and measurement as core competencies

Boston-based, 70 senior-level employees, $170,000,000 annual billings

Blend deep audience understandings with channel insights, technology and relentless measurement to help companies acquire, convert, retain, grow loyal customers Common client denominator is quantification of outcomes

Data generated through any available means, by any capable source

Work exclusively in broader health, technology and financial services

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Serving clients throughout the health economy

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- Biotech - Medical Device/Technology - Diagnostics - Medical Supply Providers - Drug Discovery - Patient Advocacy Groups - Health Informatics - Pharmacy Benefit Managers - Health Plans - Pharmacies - Health Practices - Pharmaceutical Companies - Hospitals and Health Systems

Health Plans Patient Advocacy Groups Hospitals and

Health SystemsDiagnostics

Biotech Companies

Diagnostic Companies

Drug Discovery Companies

Health Informatics

Health Insurance

Plans

Physician Practices

Hospitals and Health Systems

Medical Device/

Technology Companies

Medical Supply

Providers

Patient Advocacy Groups

Pharmacies

Pharmaceutical Companies

Biotech

PARTNERS+simons Our Clients

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SmartrttPoPPower

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Situation Analysis Increasing global competition Pricing Pressures

Managed Care Provider Contracts

Government Contracts

Competition

R&D Slowing Development trends such as miniaturization

Tighter manufacturing tolerances affecting design, cost & timelines

Capital availability decreasing

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Situation Analysis Regulatory constraints

Long FDA approval times

State regulations on ethics and compliance requiring operational changes, even capital outlays

Increasingly restricted access to decision makers Healthcare professionals

Centralized purchasing departments

Customers demand more for less MedTech CEOs/CFOs demand more with less

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Challenges in Reaching Decision Makers

PARTNERS+simons Universal Trends

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Media Fragmentation

Rise of Social Networks

Buyers in Control

Choice

Increased Accountability

Communication plans become more complex

Power shifts from companies to individuals

Brand Managers become Brand Aggregators

Buyers expect personalized/ customized offers

Improved marketing resource allocation is required

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Increasingly Complex Communications Landscape

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1960s

• Newspapers • Magazines • Broadcast TV • Broadcast Radio • Telephone • Direct Mail • Sales Reps • Out-of-Home • Eight Track Tapes

1980s

• Newspapers • Magazines • Broadcast TV • Cable TV • VCR • Broadcast Radio • Walkman • Telephone • Fax Machines • Direct Mail • Sales Reps • Out-of-Home • Personal Computer • PC Video Games

2000s

• Newspapers • Magazines • Broadcast TV • Cable TV • Satellite TV • DVD Player • DVR • Slingbox • Online Video • Broadcast Radio • Satellite Radio • Compact Discs • MP3 Player • Podcasts • Telephone • Mobile Phones • Mobile Web • Text Messaging • Fax Machines • Direct Mail • Email • Sales Reps • Out-of-Home • Personal Computer • PC Video Games • Console Video Games • MMORP Games • Internet • Blogs • Instant Messaging • Social Networks

PARTNERS+simons Media Fragmentation What media do business decision makers (B2B Buyers) use to do their jobs?

10Source: “The Digital Transformation” by Laura Ramos, Forrester Research, October 2007

Which do they say are most effective at informing or validating purchase decisions?

Email or e-newsletters

Industry-specific business magazines

Peer advice, word of mouth

Vendors’ Web sites

Industry-specific conferences

Industry-specific trade shows

Web portals (e.g., Google)

General business magazines

Industry-specific magazine Web sites

Newspapers

Web-based events

Direct mail

General business magazine sites

Specialized biz sites (e.g. IT Toolbox)

Online Video or RIAs

Online communities/social nets

TV

Mobile/wireless devices

B2B Blogs

Radio

Outdoor

Podcasts

RSS Feeds

69%

67%

65%

62%

55%

54%

51%

34%

27%

21%

76%

66%

57%

55%

52%

45%

40%

40%

35%

34%

31%

20%

19%

48%

48%

45%

45%

44%

40%

40%

PARTNERS+simons Media Fragmentation Which are the most common ways you learn about vendors and their products and services?

11Source: “Marketing to Life Scientists” BioInformatics, LLC March 2006

Catalogs mailed to my lab

Scientific meetings

Peer advice, word of mouth

Direct mail

Email

Vendor websites

Sales reps

Vendor “mini shows” at my institution

Vendor technical newsletters

Information portals

Print ads

Vendor-sponsored workshops

Online banner ads

Telesales

58%

58%

42%

38%

29%

20%

13%

62%

48%

31%

25%

15%

5%

3%

Word of mouth is big - this target is wary of unfamiliar

products which elevate their

perception of risk

Traditional channels are still highly

influential

68% of scientists spend up to 2 hours/week looking for

product info online

PARTNERS+simons B2B buyers adopt emerging media faster than B2B marketers

12 Source: “The Digital Transformation” by Laura Ramos, Forrester Research, October 2007 *”Harnessing the Power of New Media Platforms” by Guideline for BtoB Magazine & ANA, August 2007

B2B Marketers’ Usage*

2007 2009

20% 34%

36% 52%

24% 37%

29% 47%

24% 37%

21%* N/A

14%* N/A

BDMs:

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Emerging media adoption continues to grow 99% of physicians surveyed use the Internet, 95% use search engines to find medical information 66% access blogs, webcasts, streaming video and podcasts 52% use PDAs, smart phones or other mobile computing devices 33% of online physicians use blogs, professional networks, forums, and message

boards to connect with other physicians 22% use the Internet during patient consultations 45K US physicians regularly get live video details from sales reps (and 300K

more have expressed interest)

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Sources: Manhattan Research, Jupiter Research

PARTNERS+simons Social Networks

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Physicians Physicians & Nurse Practitioners

Research Scientists

Clinicians PhysiciansScientists

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Groups

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697 28,383 1,226 374

3,193 4,159 773 1,162

6,960 8,194 2,067 178

PARTNERS+simons Virtual Worlds & Trade Shows, Online Video & Tours

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Cardio Live

Agilent Metabolomics Lab

IBM Healthcare Island

PARTNERS+simons Virtual Worlds & Trade Shows, Online Video & Tours

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RocheExchange.com

MerckServices.com

PfizerPro.com

PARTNERS+simons Branded HCP Portals

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massbio.org massmedic.com thehcma.org

lifescienceexec.com devicelink.com biocompare.com

PARTNERS+simons Varied Audiences How do you find the right communications mix?

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Employees

Investors

Partners

Media

Staff Scientists

Principal Investigators

Lab Directors

Academia

Lab Technicians

QA/QC

Physicians

Medical Technologists

Nurses

Purchasing Agents

Pharmacists

Consumers

IS Manager

Medical Center

Government

CRO

Pharma/Biotech Group/Private Practice

Commercial Testing Lab

Radically Customer-centric Marketing

PARTNERS+simons High-level view of radically customer centric marketing

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Behavioral Data

Geo-demographicData

Psychographic/Attitudinal Data

Media Consumption Data

Modeling/Analysis Personas

Targeting Universe

Customers

Strategic Analysis

Tactical ImplementationResults ! Media planning/selection ! List selection/scoring ! Events planning ! Sponsorships ! Channel ! Messaging ! Timing

Tactical Analysis

4,032 47%

2,144