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BEST PRACTIC
Best Practices, LLC Strategic Benchmarking Research
Medical Device Marketing Excellence:
Optimizing Group Structure & Operations
BEST PRACTIC
TABLE OF CONTENTS
I. Research Objective and Methodology
II. Participating Companies
III. Highlighted Findings
IV. Respondent Demographics
V. Survey Findings
VI. Field Insights
VII.About Best Practices, LLC and Copyright Information
BEST PRACTIC
3
Copyright © Best Practices , LLC
To uncover resource and activity
benchmarks as well as forward-
looking insights about the
Marketing function at medical
device Segment.
Research Background and Methodology
Background:
With the monumental task of ensuring that companies comply with the plethora of global regulations
and laws pertaining to marketing medical device products, Marketing groups count on their own internal
effectiveness and efficiency to remain productive. Optimal resourcing and staffing, including a balance
of outsourcing and off-shoring, will help Marketing in the Medical Technology industry prioritize roles
and responsibilities that will be most beneficial to the growth of the company.
Field Research & Insight Development:
Surveyed 15 leaders at 15 medical device companies.
Conducted three deep-dive executive interviews from
leaders at surveyed large medical device companies
to collect qualitative insights.
INFORM
Objective:
1) Does your organization use a shared-services model domestically or abroad and what have been
the experiences?
2) How centralized are upstream marketing activities and how does your organization plan to continue
centralizing these functions?
3) How do you expect marketing staff in mature vs. emerging markets to change over time?
4) How does your marketing department plan on cutting costs in the next 3 years?
5) How do you see your marketing organization changing over the next 3 years?
Deep Dive Interview Questions:
Best Practices, LLC conducted this benchmarking study to establish meaningful
benchmarks for the resource levels and the activities scope of the Marketing function for
medical device Segment.
BEST PRACTIC
4
Copyright © Best Practices , LLC
Benchmark Class
Large Medical Device Segment Emerging Medical Device Segment
This research features a wide range of organizations, including large as well as emerging
companies. Some of the data has been segmented to show the perspective of Large
Medical Device Segment and Emerging Medical Device Segment.
BEST PRACTIC
5
Copyright © Best Practices , LLC
Job Titles of Participants
• Marketing Manager (3)
• Manager, Global Marketing Intelligence
• Senior Director, GFS Marketing
• Vice President (3)
• Vice President, Program Office
• Vice President, Worldwide Marketing (3)
• President (2)
• CEO
This research features a wide range of executives from several different functions that
manage critical aspects of marketing function for medical device Segment
BEST PRACTIC
6
Copyright © Best Practices , LLC
Key Findings & Insights
Medical Device Revenue: For the large medical device segment in this study, average
revenue exceeds $5B, 55% of which comes from sales in the U.S. Average revenue for
companies in the emerging medical device segment was $67M, with 82% from U.S. sales.
Revenue Dedicated to Marketing Operations: Companies in the large medical device
segment dedicate an average of 4.6% of revenue to marketing operations, compared to an
average allocation of 8.1% for companies in the emerging medical device segment.
Profit Margins: Profit margins for large medical device companies average 64%, a full 14%
higher than the participating emerging medical device companies.
Staffing Levels: Companies in the emerging medical device segment devote a much higher
percentage of their total company headcount to marketing operations (21% on average)
compared to large medical device companies in the study (who devote just 4% of total
headcount on their marketing operations).
The following key findings and insights emerged from this study.
BEST PRACTIC
7
Copyright © Best Practices , LLC
Marketing Activities Within Companies – Large Cos.
Marketing Function and Activity Organization: How are the following marketing functions and
activities organized within you company?
(n = 8)
Large Medical Device Segment By Division/
Business Unit By Region
Shared
services
Corporate or
Center of
Excellence
New product evaluation and analysis 100% 0% 0% 0%
New product launch 71% 29% 0% 0%
Business cases to support product or service
introduction or change
100% 0% 0% 0%
Long-term (3 to 5+ year) forecasting, modeling and
scenario development
86% 0% 0% 14%
Long-term capacity planning and resource allocation
management
57% 0% 29% 14%
Market research 71% 29% 0% 0%
Support of new business development group 50% 17% 0% 33%
Marketing Communications (Non-digital) 71% 0% 14% 14%
Marketing Communications (Digital) 57% 0% 14% 29%
Social media marketing 43% 0% 0% 57%
Large medical device companies invest their time across multiple marketing functions
and activities. New product evaluation and service introduction are performed fully at
individual business unit followed by market research, marketing communication and
other various marketing activities.
BEST PRACTIC
8
Copyright © Best Practices , LLC
Marketing Staffing as a Percentage of Total
Headcount
Marketing Staffing Levels: What percentage of your overall company headcount is dedicated to
Medical Device Marketing?
(n = 8) (n = 3)
Large Medical Device
Segment
Emerging Medical
Device Segment
Max 7% 33%
75th Percentile 4% 29%
Mean 4% 21%
Median 3% 25%
25th Percentile 3% 14%
Min 1% 3%
On average, four percent of overall headcount is allocated for medical device marketing by
large medical device companies. Similarly, emerging medical device segment allocate
approximately 21% of overall headcount for marketing their medical devices.
BEST PRACTIC
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 Segment.
Best Practices, LLC
6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517
919-403-0251
bestpractices@best-in-class.com
www.best-in-class.com
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Medical Device Marketing Excellence: Optimizing Group Structure and Operations

  • 1. BEST PRACTIC Best Practices, LLC Strategic Benchmarking Research Medical Device Marketing Excellence: Optimizing Group Structure & Operations
  • 2. BEST PRACTIC TABLE OF CONTENTS I. Research Objective and Methodology II. Participating Companies III. Highlighted Findings IV. Respondent Demographics V. Survey Findings VI. Field Insights VII.About Best Practices, LLC and Copyright Information
  • 3. BEST PRACTIC 3 Copyright © Best Practices , LLC To uncover resource and activity benchmarks as well as forward- looking insights about the Marketing function at medical device Segment. Research Background and Methodology Background: With the monumental task of ensuring that companies comply with the plethora of global regulations and laws pertaining to marketing medical device products, Marketing groups count on their own internal effectiveness and efficiency to remain productive. Optimal resourcing and staffing, including a balance of outsourcing and off-shoring, will help Marketing in the Medical Technology industry prioritize roles and responsibilities that will be most beneficial to the growth of the company. Field Research & Insight Development: Surveyed 15 leaders at 15 medical device companies. Conducted three deep-dive executive interviews from leaders at surveyed large medical device companies to collect qualitative insights. INFORM Objective: 1) Does your organization use a shared-services model domestically or abroad and what have been the experiences? 2) How centralized are upstream marketing activities and how does your organization plan to continue centralizing these functions? 3) How do you expect marketing staff in mature vs. emerging markets to change over time? 4) How does your marketing department plan on cutting costs in the next 3 years? 5) How do you see your marketing organization changing over the next 3 years? Deep Dive Interview Questions: Best Practices, LLC conducted this benchmarking study to establish meaningful benchmarks for the resource levels and the activities scope of the Marketing function for medical device Segment.
  • 4. BEST PRACTIC 4 Copyright © Best Practices , LLC Benchmark Class Large Medical Device Segment Emerging Medical Device Segment This research features a wide range of organizations, including large as well as emerging companies. Some of the data has been segmented to show the perspective of Large Medical Device Segment and Emerging Medical Device Segment.
  • 5. BEST PRACTIC 5 Copyright © Best Practices , LLC Job Titles of Participants • Marketing Manager (3) • Manager, Global Marketing Intelligence • Senior Director, GFS Marketing • Vice President (3) • Vice President, Program Office • Vice President, Worldwide Marketing (3) • President (2) • CEO This research features a wide range of executives from several different functions that manage critical aspects of marketing function for medical device Segment
  • 6. BEST PRACTIC 6 Copyright © Best Practices , LLC Key Findings & Insights Medical Device Revenue: For the large medical device segment in this study, average revenue exceeds $5B, 55% of which comes from sales in the U.S. Average revenue for companies in the emerging medical device segment was $67M, with 82% from U.S. sales. Revenue Dedicated to Marketing Operations: Companies in the large medical device segment dedicate an average of 4.6% of revenue to marketing operations, compared to an average allocation of 8.1% for companies in the emerging medical device segment. Profit Margins: Profit margins for large medical device companies average 64%, a full 14% higher than the participating emerging medical device companies. Staffing Levels: Companies in the emerging medical device segment devote a much higher percentage of their total company headcount to marketing operations (21% on average) compared to large medical device companies in the study (who devote just 4% of total headcount on their marketing operations). The following key findings and insights emerged from this study.
  • 7. BEST PRACTIC 7 Copyright © Best Practices , LLC Marketing Activities Within Companies – Large Cos. Marketing Function and Activity Organization: How are the following marketing functions and activities organized within you company? (n = 8) Large Medical Device Segment By Division/ Business Unit By Region Shared services Corporate or Center of Excellence New product evaluation and analysis 100% 0% 0% 0% New product launch 71% 29% 0% 0% Business cases to support product or service introduction or change 100% 0% 0% 0% Long-term (3 to 5+ year) forecasting, modeling and scenario development 86% 0% 0% 14% Long-term capacity planning and resource allocation management 57% 0% 29% 14% Market research 71% 29% 0% 0% Support of new business development group 50% 17% 0% 33% Marketing Communications (Non-digital) 71% 0% 14% 14% Marketing Communications (Digital) 57% 0% 14% 29% Social media marketing 43% 0% 0% 57% Large medical device companies invest their time across multiple marketing functions and activities. New product evaluation and service introduction are performed fully at individual business unit followed by market research, marketing communication and other various marketing activities.
  • 8. BEST PRACTIC 8 Copyright © Best Practices , LLC Marketing Staffing as a Percentage of Total Headcount Marketing Staffing Levels: What percentage of your overall company headcount is dedicated to Medical Device Marketing? (n = 8) (n = 3) Large Medical Device Segment Emerging Medical Device Segment Max 7% 33% 75th Percentile 4% 29% Mean 4% 21% Median 3% 25% 25th Percentile 3% 14% Min 1% 3% On average, four percent of overall headcount is allocated for medical device marketing by large medical device companies. Similarly, emerging medical device segment allocate approximately 21% of overall headcount for marketing their medical devices.
  • 9. BEST PRACTIC 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 Segment. Best Practices, LLC 6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517 919-403-0251 bestpractices@best-in-class.com www.best-in-class.com Link for Report: Optimizing Group Structure & Operations Benchmarking Reports