Market Analysis Summary
Currently, the largest market segment is the pharmaceutical industry. In addition to pharmaceuticals, DocBuzz, Inc., will also target the fast growing biotechnical companies and medical device manufacturers. The market has demonstrated a sustained annual growth of approximately 11 percent. With this growth, the R and D costs will continue to increase. Through our prelaunch and marketing services, we will enable the pharmaceutical products to gain faster market share and increase their return on investment.
4.1 Market Segmentation
One of the most important marketing segments is the pharmaceutical industry, such as Pfizer, Glaxo-Welcome and Merck. Many companies have merged, acquiring controlling interest, forming strategic alliances, and placing others under exclusive contract and basically controlling the majority of this industry. DocBuzz, Inc., will work with these huge companies, but we will also work with the much smaller and lesser-known companies that have solid financial bases, but not the ability to overcome the budget and the in-house sales and marketing staff that the larger companies have. DocBuzz, Inc., will provide consultation, sales and marketing, and e-detailing support to all of these companies, regardless of size or market share.
Medical professionals comprise the key marketing component. Without this specific target market, the pharmaceutical, biotech and medical devices industries will disappear. All of our clients realize the importance of courting this one vital target market, the physician. DocBuzz, Inc., has a natural advantage in courting and delivering this segment for the benefit of all of the various markets we have targeted.
Biotech industry represents a smaller market in total revenue distributed for sales and marketing, compared to the pharmaceutical industry; however, this industry has shown a stable and quickly growing market.
Medical devices is the one sector that we will target that has the slowest growth. DocBuzz, Inc., is in a natural position to assist in the development of this industry, because we can open the doors that are closed to all but practicing members of the medical community. Companies that offer these services are vital to the medical community; however, until our company developed, this sector worked on the “old boy” network. Repairs are often sent to the manufacturer. The manufacturer provides long delays in returning the repaired equipment and it is often much more expensive than going to the companies that we represent.
Additionally, companies that are developing and marketing new medical devices need to have rapid entry into the market place. DocBuzz, Inc., provides this ability for the company that is manufacturing, conducting research and development, and any other company who needs to have immediate entry into the medical community. The marketing of service contracts will also increase through our efforts in the future.
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4.2 Target Market Segment Strategy
The building of a successful Internet e-detailing site is paramount for DocBuzz, Inc., to provide the quantity and quality of service that will insure total success of our venture. Each of our target markets uses the access to information that the Internet provides. DocBuzz, Inc., provides the much needed up-to-date information to the medical professional, then provides additional service by providing a sales and marketing representative to work directly with them.
Each of our target markets has specific needs that are unique to their own industry. DocBuzz, Inc., has focused on the common needs that each of these markets share. In addition to providing the services that fill our target markets’ needs, we also provide an economic incentive for the companies to choose our company.
4.2.1 Market Trends
Escalation of cost will continue within the research and development and sales and marketing. Each of our target markets share the same rising cost of developing a product for the market place, and then the actual marketing of the finished product. DocBuzz, Inc., provides for the more cost effective method of marketing finished products to the market place. The use of e-detailing provides instant access to qualified and interested decision makers within the medical community.
Additionally, DocBuzz, Inc. works with the company to provide market branding, strategic marketing, prelaunch and postlaunch consulting. Our services provide speed and access 24 hours a day, seven days a week, with the ability to download product information immediately. DocBuzz, Inc., representatives will follow up with these busy professionals and secure the sales that our client companies are looking for, at about 75% of the current sales and marketing expense that the companies are currently experiencing.
4.2.2 Market Growth
According to IMS Health marketing surveys, the pharmaceutical companies are enjoying between 10-15 percent annual growth. Additionally, the biotech industry has an annual growth rate of approximately 14% and the medical device industry is growing at about 7% per annum. With e-detailing we can increase the growth further.