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Marketplace Organization

Most medical device sales/distribution in the U.S. is very fragmented. There is a mixture of large manufacturers who both build and buy devices for general distribution. These are usually companies who have a broad product line and is one of many products as part of their product line. This company could be a medical conglomerate with many divisions where this product has minor visibility.

Medical Conglomerates Devices from a medical conglomerate usually are the market leaders and have brand identification with some recognition in the marketplace. Since these large companies develop brand recognition and a stable distribution for maximum profit, these devices have a longer life in the marketplace and are the most likely to be technically obsolete. These products tend to have relatively high margins and are often technically NOT the best but due to a uniform marketing campaign these products are preferred by prescribing doctors since the products are recognized and have low liability. These devices may be seen at medical trade shows. Sales of these devices are restricted to the specific Manufacturer's Distribution Network.

Single Product Companies These companies sell into the Sales Distribution Networks and direct to users. These are the more innovative devices, which are often from a single product company. These are the most likely devices to be distributed by the Sales Distribution Network. These products wish to build product identify through performance excellence. These devices may occasionally appear at medical trade shows but are usually distributed via direct sales into the Sales Distribution Networks. The units may be sold through one or more competing Sales Distribution Networks.

Off Shore Prescription Devices Sales of prescription medical devices would proceed as follows. The customers for the Medical device will be patients (recipients) of prescriptions. Doctors write the prescriptions. The Patient will purchase the Medical device from a distributor that maintains a stock level of the item. The distributor may be a drug store or a mail order source. The selling effort will require a salesman to convince a doctor to prescribe the Medical device as a therapeutic/diagnostic instrument. The distribution effort will be equally critical.