Winning The Medical Device Market: How To Build A Successful Gtm Strategy.
Executing a strong go-to-market strategy that reduces cost and risk are critical for a company eager to achieve a successful product launch. The global medical devices market attained a value of about USD 462 billion in 2020.
Executing a strong go-to-market strategy that reduces cost and risk are critical for a company eager to achieve a successful product launch. The global medical devices market attained a value of about USD 462 billion in 2020. The market is expected to grow within 2023–2028 at a CAGR of 6.1% to reach nearly USD 661 billion by 2026. To succeed amid breakneck competition like this, medical device players will need a solid go-to-market strategy. One that ideally aligns with customer needs, defines the right market segments, and refines value propositions.
Bringing a medical device to the market is a uniquely challenging proposition. Unlike consumer goods and services, among other categories, medical devices are highly regulated.
An effective medical device go-to-market strategy has four critical components — a clearly defined value proposition, a deep understanding of your target market and their needs, competitive intelligence, and established distribution channels.
1. Value Proposition
What market problem does your device/product solve?
Fundamentally, your value proposition needs to communicate the need for your product. What is the market problem, and how does your product solve it? Is your solution feasible?
Consider the following when evaluating the market need for your product and constructing your value proposition:
Does your product take a novel or otherwise innovative approach to solving a problem? One that can replace a device that is already on the market? Or be a first-in-class solution for a life-threatening or debilitating condition (sometimes known as a “breakthrough” device)?
Is your device substantially equivalent to a device that is already on the market, but can be constructed and sold for a lower price?
Does your device enhance the patient or provider experience? How?
Does your device provide additional value to patients or providers? How?
2. Target Market
Who is your device for?
Whether your device has one intended audience or several, you can optimize your go-to-market plan by customizing your positioning, marketing, and even distribution for each of those audiences.
Companies need to start by developing a persona that represents their target customer. If the product is developed keeping in mind more than one target customer, you need to develop multiple personas accordingly.
These personas are penned down considering factors like — who the customer is (age, demographic, position, etc), where they are in the buying cycle, their needs, how and when are they likely to purchase, and any roadblocks they might encounter or questions they might have throughout the purchase journey.
Data derived from these personas will be useful in providing valuable insights when it comes to constructing a marketing strategy.
3. Competitive Intelligence
What are competitors doing, and are they doing it well?
The go-to-market plan will need to account for competitors’ activities and potential responses.
Companies can start by assessing competitors’ current activities and market strategies. What are they selling? and how are they selling it? Are those tactics effective? News articles, public company information, competitors’ advertisements, and customer reviews are great resources to assess.
A firm’s go-to-market strategy can and should borrow successful tactics from competitors. While the company should never directly copy a competitor’s business plan or advertising message, there are many valuable insights to be gleaned from competitive intelligence. A competitor having a presence in a certain market, or using a certain tactic is often a sign that a firm should be aware of.
4. Distribution Channels
How will you get your product into your customers’ hands?
A company’s go-to-market strategy should also include a detailed plan for how to distribute its product offerings to the end users. Post evaluating the firm’s strengths and weaknesses in distribution and market presence, the firm should decide whether to take responsibility for distribution themselves; or they could hire a vendor/marketing & distribution partner, or pursue a combination of services. This is an essential step.
A competitive GTM analysis provides medical device majors, industry details, and granular-level competitive insights — thus, empowering the management to designate a bang-on sales & distribution network, with a clear definition of target customers to chase and win via preferred customer channels.
Developing an effective go-to-market strategy is crucial for the success of a medical device launch. To sum it up, it requires a clear understanding of the market problem the product solves, a well-defined target market, knowledge of competitors’ activities, and a detailed plan for product distribution. By aligning with customer needs, refining value propositions, and identifying the right market segments, medical device companies can optimize their positioning, marketing, and distribution strategies for sustained market growth and success.
A strong go-to-market strategy can reduce cost and risk while increasing the chances of an effective product launch. To know how Netscribes market research solutions can help you drive tangible ROI from your go-to-market strategies, contact us.
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