Three Wise Dames

Marketing in the Life Science Industry

The velocity of revenue is a direct result of the speed of confidence February 2, 2010

Filed under: DTC,Lisa,Market Planning,Physician Preparation — Lisa Pohmajevich @ 11:16 pm
Tags: , , , ,

Image credit: Salvatore Vuono / FreeDigitalPhotos.net

New products released into the market have cleared many hurdles. Clearance from the FDA indicates that the product meets safety and efficacy requirements. This milestone in a product life cycle typically follows extended research, development, design, testing, and refinement phases. Companies that have invested and toiled over the development challenges in anticipation of a market release are understandably eager to realize revenueAs much and as soon, as possible.

To that end, planning discussions turn to training, distribution and marketing. This is frequently the point in time when the acceleration question is raised.

How fast can we ramp up sales?

Should we do DTC advertising to increase demand?

What kind of promotions can we offer to encourage volume purchases?

I believe these questions are premature. Ideally, DTC advertising and promotional programs are part of marketing strategy that includes market development and preparation. They are most effective when conditions for market adoption of a new product have been optimized.

The best time to advertise to patients and consumers, introduce promotions to encourage purchases and increase sales activities, is when physicians have reached a state of confidence with a new product. Confidence represents the final stage in customer adoption of new technology.

New product introduction requires physician training. The three stages of adoption are defined by the state of accomplishment the physician achieves during training on a procedure with a new product.

Stage one – Capable
The physician understands the product concept and purpose. They can successfully deploy the product with support of a trainer. Use of the product is occasional.

Stage two – Competent
The physician correctly performs the procedure using the product with limited training support. The physician is proficient performing the procedure and use of the product is intermittent.

Stage three – Confident
The physician has mastered the procedure and product use. No support is required.

Confidence occurs after the physician has enough positive experience and good patient outcomes with the product. The confident stage is also recognizable beyond performing the procedure without support. Two hallmarks signal the physician has reached a state of confidence.

1. The physician routinely incorporates the product in their treatment regime.
2. The physician proactively discusses the product with patients in which treatment including the use of the product is appropriate.

When physicians reach this stage, DTC advertising and promotional programs are good strategies to employ. The physician has been appropriately supported by the company and is well prepared for new patients investigating the advertised procedure. The questions regarding increasing revenues should first center on the physician and accelerating their state of confidence. The best time to do advertising and promotional programs is when the market is optimized with confident customers.

Comments welcome.

(c) 2010 pH Consulting

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One Response to “The velocity of revenue is a direct result of the speed of confidence”

  1. […] The Velocity Of Revenue Is A Direct Result Of The Speed Of Confidence […]


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