Advanced Models in High-Tech Marketing Day 4- Positioning, Branding and Network Effect modelos...

Advanced Models in High-Tech Marketing

Day 4- Positioning, Branding and Network Effect

modelos avançados em marketing de alta tecnologia

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Course Objectives• Review of advanced models in high-tech

marketing• Implementation of these models by the

participants in a unique project

ImplementaçãoÚnico Projeto

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Course Rational

Innovation Diffusion of Innovation

Positioning/Branding

Revenues

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Course Rational

inovação difusão da inovação

Posicionamento/Gestão de Marcas

receita

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Day 4 Objectives

• The 3 steps in targeting:1. Segmentation Target Market

2. Positioning

3. Branding• Network Effect

1. Segmentation ->Target Market2. Positioning3. Branding

7CONFIDENTIAL 7

SPIROCOR™ Respiratory Stress Test System

• Non-invasive

• No treadmill

• No adenosine

• No radiation

• No contrast

• Not expensive

• Office based

5 Patents Pending

Computer unit with proprietary software

Data Acquisition

Unit

PPG

Sensor

8CONFIDENTIAL 8

SPIROCOR –Respiratory Cardiac Stress Test

• A non invasive …2 minute

• respiratory cardiac stress test

• indicating

• significant Coronary Artery Disease (S-CAD)

Large Existing S-CAD Diagnostic Market – U.S.

CONFIDENTIAL 99

Stress ECG

Nuclear stress tests

Diagnostic Angiography

$35B

$9B

$1B

SPIROCOR is clearly a multi billion dollar per year opportunity

$45B per year is currently being spent to find the answer!! $45B per year is currently being spent to find the answer!!

3 Steps Model

1. Segmentation ->Target Market 2. Positioning3. Branding

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Sent homeor

Follow-up

Coronary angiography

Non-invasive testing

- SPIROCOR +

Coronary Angiography

Expected behavior of invasive cards w/office

Pure noninvasive

office only

Invasive no- PCIw/office

PCI w/office

PCI only

Medical history, physical examination, Vital signs, ECG

90% 10%

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Sent homeor

Follow-up

Coronary angiography

Non-invasive testing

- SPIROCOR +

Coronary Angiography/

SPECT

Expected behavior of non - invasive cards

Pure noninvasive

office only

Invasive no- PCIw/office

PCI w/office

PCI only

Medical history, physical examination, Vital signs, ECG

90% 10%

3 Steps Model

1. Target Market

2.Positioning3. Branding

Concept Identified as Very StrongI see patients who I suspect may have significant coronary arterydisease, but I am not sure because they have atypical symptoms or may even be asymptomatic. (Suspect was a strong word! An earlier version of this ACB included language around being “hesitant to pursue expensive or invasive testing…”

MDs did not relate to that language and the concept worked better when it was deleted.)

New Test helps identify significant CAD among these atypical or symptomatic patients that I suspect may have the disease.

That’s because New Test: Is an accurate, non-invasive test for significant CAD. Can be safely, quickly and inexpensively be used for screening

on all patients, making it easy for patients to be tested (Some felt

“screening” was good word and fit with their ideas of how to use the test. Others did not comment much on this word).

Clearly indicates patients that are at risk for or currently have significant CAD (higher than 70% blockage) (This was generally positive, but some of

the language in “C” was stronger)

Provides immediate results, allowing for fast follow up (Important but

covered in the first bullet point)

Green=Very strongBlue=Somewhat strongRed=Additional comments

Positioning Lessons for FDA

1. Clinical Claim : Indicate the presence of S-CAD2. Patient Population : All Patients suspected of S-

CAD3. Supplement Cardiologist Decision

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Patient referred to Cardiac evaluation

Medical history, physical examination, Vital signs, ECG

Sent homeor

Follow-up

Coronary angiography

Non-invasive testing

- SPIROCOR +

Consider Coronary Angiography

SPIROCOR in the Diagnostic algorithm

CONFIDENTIAL

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How Much will Patients Pay Out of Pocket?

0%

10%

20%

30%

40%

50%

60%

70%

80%

will not pay

>100

>150

>200

>300

Answers from 27 cardiologists in DC, LA focus group research

Average : $210

Patient reaction to the product

CONFIDENTIAL

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How Much will Patients Pay ?

0%10%20%30%40%50%60%70%80%90%

100%

will not pay

>150

>250

>300

Answers from 15 patients in LA focus group research

Average : $253

3 Steps Model

1. Target Market2. Positioning

3.Branding:– Naming (LA)– Slogan (St. Louis)– Logo (St. Louis)

Team Recommendation

Was most acceptable to the MDsAcceptable by patients

Network Effect - Definition

• The effect that one user of a product( or service) has on the value of that product to other people.

• When network effect is present, the value of a product or service is dependent on the number of others using it

• (also called network externality )

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The classic example- Telephone

• The more people own telephones, the more valuable the telephone is to each owner.

• This creates a positive externality because a user may purchase a telephone without intending to create value for other users, but does so in any case

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Visual – tel. or fax or any network

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WAZE Case Study

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Critical Mass• Network effects become significant after a

certain subscription percentage has been achieved, called critical mass.

• At the critical mass point, the value obtained from the good or service is greater than or equal to the price paid for the good or service.

• after a certain number of people have purchased the good, additional people will due to the value exceeding the price.

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WAZE Critical Mass

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The more people own waze, the more valuable waze is to each owner.

WAZE value dependent on critical mass

the value of Waze is dependent on the number of people using it.

As more people use the application is becoming more useful, efficient and convenient.

For example, if there is a traffic jam, we will never know this if the waze users will not report it

Pre –critical mass• A key business concern must then be how to

attract users prior to reaching critical mass. • The best strategy is to build a system that has

enough value without network effects, at least to early adopters.

• Then, as the number of users increases, the system becomes even more valuable and is able to attract a wider user base.

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Pre –critical mass - WAZE

• Free GPS

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WAZE - Results

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Whatsapp case study

• Pre-critical mass offer – Free SMS• Critical mass achieved by:

– Groups– Works on all platforms

• Groups create outstanding value for each one

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Whatsapp results

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