Monday, March 30, 2020
Market research is the systematic collection and evaluation of market data (e.g., from customers and the competition) with the aim of making the right decisions with regard to the development and modification of devices, marketing actions and much more.
Market research helps companies:
Use appropriate market research methods precisely during the device lifecycleMarket research will be successful if companies:
In the article below, we give you answers to the six most frequently asked questions and give you four tips for saving time and money during market research.
Market research is a tool for answering important questions regarding the different functions of a company:
A lot of questions relate to the devices and services:
Question | DEV | DM | RA | CA | M |
How do our customers work with our devices and services? | X | X | X | ||
What do they appreciate, what do they not like? | X | ||||
What problems occur? | X | X | X | X | X |
How do our devices and services compare to the competition? | X | X | X | ||
What would we have to change in the existing devices and services in order to increase the benefits and customer satisfaction? | X | X | X | ||
Which devices and services do my customers need that we do not offer? | X | X | |||
How should we design our devices? | X | X | |||
Which devices and services should we no longer offer? | X | ||||
What risks associated with our device? | X | X | X | X | X |
Other questions relate to additional marketing aspects:
Question | DEV | DM | RA | CA | M |
What price can we charge for our devices and services? | X | X | |||
What do our customers see as the alternatives to our devices and services? | X | X | X | ||
Who are the participants in our markets? | X | X | |||
Which are the best channels for us to use to communicate with our customers? | X | ||||
Which are the best channels for offering our devices and services? | X | ||||
How effective are our marketing actions? | X | ||||
What market shares and sales can we achieve? | X | X |
Market research can also provide important information for company management.
Question | DEV | DM | RA | CA | M |
What should our priorities be and what order should actions be taken in (e.g., with regard to devices and marketing)? | X | X | X | X | X |
What are the risks for our company? | X |
Market research is defined (see, for example, Marketingmanagement by Christian Homburg (2017), page 250) as “the systematic collection, processing, analysis and interpretation of data on markets (customers and competitors) for the purpose of underpinning marketing decisions.” Market research answers questions, but does not make decisions or implement actions (see Fig. 1).
Formulating the question precisely is crucial for the success of market research. We often talk about the decision problem to be solved. From this decision problem, we can usually to derive one or more research problems that are even more specific than the original decision problem.
Decision problem | Research problem |
What device should we develop? | What are the requirements of the potential stakeholders? |
How should the new device be designed? | Which of several design proposals is the best? |
How can we improve an existing device? | What are the usability problems? How do our customers compare our device with the competing devices? |
The study design should be based on the question being asked. Different criteria can be used to classify studies (see Fig. 3).
Cross-sectional research involves methods to collect and analyze information at a given point in time.
In contrast, the aim of longitudinal research is to observe changes over a period of time. In longitudinal research, the same methods are often used several times, e.g., surveys are conducted several times.
Studies often combine quantitative and qualitative data collection methods. Examples of quantitative methods are:
Qualitative methods include interviews and context analysis.
Another difference is whether the objective of the research can be achieved by analyzing previously collected data (secondary research) or not. If this is not possible, new data will have to be collected (primary research).
The methods mentioned above are used to collect new data, i.e., primary research.
Lastly, studies can be classified by type:
Type of question | Type of study | Example |
Answering new research questions | Exploratory studies | What are the stakeholder requirements of nursing staff for documenting drug complications? |
Description of existing facts | Descriptive studies | How do nursing staff currently document drug complications? |
Determination of cause-effect relationships | Causal studies | How does the training of nursing staff affect the correct documentation of drug complications? |
In addition to face-to-face meetings (observation, surveys), online-based market research has become more important. Examples are:
The methods must be suitable for answering the specific questions being asked, particularly the research problem.
Research problem | Potential methods |
What are the requirements of the potential stakeholders? | Context analyses, surveys |
Which of several design proposals is the best? | A/B tests, benchmark tests |
What are the usability problems? How do our customers compare our device with the competing devices? | Participant and non-participant observation |
Market research uses such a wide variety of methods that they cannot all be named here. The following methods have been successfully used at the Johner Institute for projects with medical device manufacturers:
Developing the method includes for example:
Data collection: This is the phase that requires the most resources, i.e., staff, time and budget. For the data collection, it is important that the people collecting the data have been trained sufficiently.
Data analysis: For the data analysis, statistical methods are generally used to condense data and draw conclusions from the results. The following techniques are often used for this:
The results from step 4 are the “naked results.” Now you have to draw conclusions from these results and answer the initial question. The people in charge should also discuss weaknesses resulting from, e.g., the:
The last step of market research is writing a report that summarizes the main findings and gives recommendations for future action.
From now on, it is up to others to make decisions and implement actions (see Fig. 2).
For a simple exploratory study, as few as five respondents can be enough for meaningful results. Quantitative surveys usually require a much higher number.
The number of respondents generally depends on various factors such as the:
Companies can obtain important insights even with a four-figure sum. Of course, there are questions that require six and seven-figure outlays.
However, companies should be aware that a higher sample size/cost will usually result in more data, but not necessarily in greater insight.
The activities that companies should outsource depends on the following parameters:
As a rule of thumb, manufacturers should not outsource these activities:
In contrast, it has been shown to be a good idea to call on outside help for the following, at least initially:
In German-speaking countries, there are “all-round market research institutes.” These are companies that carry out research using different methods (surveys, product tests, etc.) on a wide range of products. “All-round” because these companies do not specialize in one sector.
The largest of these companies are:
In addition to the above “all-rounders”, there are also specialized institutes that focus on medical devices, among other things - for, example the Johner Institute :-).
Select partners that meet these criteria:
As boring as it seems: research and comply with the legislation.
The General Data Protection Regulation (GDPR) and supplementary Federal Data Protection Act (BDSG) are the basic data protection laws.
Collecting data as part of marketing and opinion surveys is only permitted if the survey participants have given their prior effective consent in accordance with Article 6 of the GDPR.
The new Federal Data Protection Act, in contrast to the previous version (§30a), only explicitly addresses market and opinion research at one point:
If they [the controller or processor] commercially process personal data [...] for purposes of market or opinion research, they shall designate a data protection officer regardless of the number of persons employed in processing.
This means that you must always appoint a data protection officer when you conduct market or opinion research.
The Act against Unfair Competition (UWG) also has to be taken into account. Breaching Section 7 “Unacceptable nuisance” is also a regulatory offense.
For medical device manufacturers, there can be an overlap between market research and activities that are regulated by medical device law, such as:
In these cases, the corresponding legal (MDR, IVDR, MPDG) and standard (e.g., IEC 62366-1, ISO 13485) requirements apply.
It is particularly difficult to stay objective when it comes to some devices. But a market researcher is there to ensure that the methodology is as unbiased as possible and that the result is as objective as possible, regardless of the question or problem.
There is no point in lying to yourself or choosing a method that will produce the results you want. A neutral expert pays attention to:
The aim should always to be to gain new insights and answer the question. You should not misuse market research to confirm preexisting opinions.
The challenges involved in market research are not just about recruiting respondents. It is, in fact, sometimes more difficult to make sure that the respondents actually turn up at the agreed time (e.g., for a usability test or a focus group).
This is where “incentives” come into play. Money seems to be a great incentive. The value of the “incentive” should be set based on the target group and the duration of the meeting.
One unique feature of medical device market research is that a lot of subjects see helping to develop medical devices that help patients as an additional motivation.
If respondents agree to participate in a study, the “incentive” ensures that they come.
Homogeneous focus groups create a “safe space” where people are more likely to express their thoughts and feelings. They stop damaging group dynamics from forming:
For usability tests, particularly for the summative evaluation, it can even be vital that the tests are carried out with the respondents individually. This can prevent the respondents from influencing one another and distorting the results of the study as a result.
As explained above, market research activities can overlap with regulated activities. Manufacturers should take advantage of this:
Medical device manufacturers shouldn’t view market research as just an instrument for device management
and marketing. Instead, market research methods should be used throughout a device's entire life cycle (while the regulatory requirements taking into account at all times).
The Johner Institute can support medical device manufacturers:
Typical tasks that manufacturers outsource to the Johner Institut include:
Do you want to learn more about market research? Do you want to know how you can avoid unnecessary (regulatory) costs and make your devices even more successful on the market?
Then please contact us.
A lot of companies just use market research as a marketing instrument. But all departments in a company - from development to device management through to clinical affairs and management - should make use of market research techniques.
Precisely conducted market research offers many advantages:
The variety of methods is like a suitcase full of tools: if you don’t master them, you do more harm than good. People who know how to use them will find it easier to carry out their tasks and benefit from the advantages described above.
Contact us right away if you are interessted in market research for your medical device.
Author: Immanuel Bader