Abstract
Pricing Strategies - the outlook for Medical Devices and Diagnostic Companies
Pricing strategies need to balance the demands of the market, i.e. what the
customer needs and wants, with the needs of the company. Pricing objectives
need to be closely linked with organizational and marketing objectives, as
well as taking account of cash-flow requirements, profit objectives and return
on investment (ROI). In addition, they must take into account the market's
price sensitivity, which is defined as the relative importance of price in a
purchasing decision. In view of the complexities involved in pricing obtaining
an efficient pricing strategy is an important issue for all medical device and
diagnostic companies.
This latest strategic publication from HBS Consulting " Pricing Strategies for
Medical Device and Diagnostic Companies" provides:
- An analysis of the benefits and advantages various pricing strategies can
offer
- Provides an insight into impacting factors affecting pricing strategies in
Europe , US and Japan
- Case studies reviewing experiences of companies within the medical device
and diagnostic sectors
Pricing is a strategy that should be understood by all the members of a
company and this report is relevant to all medical device company employees.
However, its specific target is pricing managers, marketing and sales
personnel of medical device companies who should be working together to
develop their companies' pricing strategy.
Table of Contents
1. Executive Summary
2.An Introduction To Pricing
- The target audience
- The price is right?
- Pricing strategies
- Price sensitivity
- The unique value effect - peripheral stents
- The substitute awareness effect - syringes
- Conjoint analysis
- The strategy clock
- Economy pricing
- Price skimming
- Penetration pricing
- Premium or prestige pricing
- Cost-based pricing
- Cost-plus pricing
- Experience curve pricing
- Demand-based pricing
- Product line pricing
- Pricing differentiation
- Competition-based pricing
- Competitive parity
- Cost-benefit pricing strategy
- Market segmentation
- Company example - Chiron Behring GmbH & Co
- Company example - Tyco Healthcare
3. Customer Value, Competition And Cost. Their Role And Influence On
Development For Effective Pricing
- The therapy
- The customer
- Value pricing
- The effect of the changing medical device market on value pricing
- Value pricing for consumer markets
- Uniqueness
- Scarcity
- Trust
- Proximity
- Opportunity
- Integrating value pricing into a company
- Customer research
- Translation of the customer response into value components
- Anchoring
- Equip the sales force with tools that support value-based pricing
- Company example - Varian Medical Systems
- Impact of branding and loyalty
- Creating a brand
- Branding/price questions
- Company example - Hill-Rom
- The competition
- Price points
- Price wars
- Price leaders and followers
- Barometric price leadership
- Dominant firm and competitive fringe
- Collusive price leadership
- The dynamic view
- Company example - Omron Healthcare
- Pricing strategy examples in different medical device sectors
- Pacemakers
- PTCA catheters
- Wound care
4. Current issues and changes impacting on pricing
- Reimbursement
- Health technology assessment issues
5. Global and Regional Pricing : Drivers and Trends, Market Challenges
- Market facts
- USA
- Company example - Baxa Corporation
- Japan
- Europe
- The Czech Republic
- France
- Germany
- Company example - Bien-Air
- Italy
- Company example - Smith & Nephew
- Poland
- Spain
- Company example - Synthes, Inc
- The UK
- Company example - Smith & Nephew
6. Alignment of Pricing Strategies with Overall Corporate Business Strategies
- Incorporation of pricing strategies into company strategic objectives
- Company logistics
- Discounting
- Improving the pricing structure
7.Conclusions and Strategic Recommendations
- The company
- Streamline electronic systems
- Advertise and disseminate the goals of the company
- The product
- Value pricing
- Market dynamics
