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'
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
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