SOURCE: Cutting Edge Information

March 18, 2008 10:21 ET

Diagnostic Marketing Budgets Average $266,000

RESEARCH TRIANGLE PARK, NC--(Marketwire - March 18, 2008) - Marketing budgets for in vitro diagnostic (IVD) products average $266,000 from development through the second year on the market, according to a recent study by Cutting Edge Information. The report, "In Vitro Diagnostics: Development Through Postmarket" (http://www.DiagnosticTrends.com/), explores trends in diagnostics' development, promotion, reimbursement and monitoring.

Companies spend the most during an IVD's first year, when marketing budgets average $118,000. Marketing expenditures during development average $69,000, while second-year outlays average $80,000.

Marketing executives and product team leaders interviewed for the report often complained that their budgets are too small to reach their entire potential customer bases. The figures provided above are averages, and actual IVDs came to market with a range of marketing investments -- anything from $15,000 to $8 million. One third of the surveyed companies spent a million dollars or more on marketing from development through the second year on the market. The rest had to make do with less.

To counteract this problem, marketers target their campaigns to maximize sales impact. Among interviewees, conferences join medical and research journals as favored marketing channels, thanks to the high percentage of potential customers they reach. In other cases, Internet- and email-based advertising provides a relatively inexpensive way to attract customers' attention.

The greatest indicator of an IVD's marketing budget is its projected sales levels. Brands with relatively low peak projected sales draw on relatively little marketing funding. Such products depend on years of steady, unspectacular revenue production. For larger brands, annual returns in the hundreds of millions of dollars support larger initial marketing investments.

According to Eric Bolesh, lead author on the report, this connection is not surprising: "Returns drive investment, and IVDs are no different in this regard than any other product."

"In Vitro Diagnostics: Development Through Postmarket" (http://www.DiagnosticTrends.com/) also contains benchmarks for each stage of the commercialization process, including product development, launch marketing and postmarket management. Highlights include the following:

--  Investments in marketing, research & development, and manufacturing
--  Reimbursement staffing levels and budgets
--  Staff investments in marketing, sales and postmarket monitoring
--  Sales hiring and training best practices
--  Profiles of IVD brands
    

Download a free summary of "In Vitro Diagnostics: Development Through Postmarket" or purchase the report at http://cuttingedgeinfo.com/diagnostictrends/PH101_Download.asp#body.

Contact Information