Siemens Medical Solutions
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1 Critical Market Research *Before* You Launch a New Demand Generation Campaign Scott Gillum, Senior Vice President MarketBridge Bappa Choudhury, Vice President Siemens Medical Solutions Inc. Monday, October 29, 2007 Siemens Medical Solutions Products Angiography Nuclear Medicine Ultrasound Computed Tomography Magnetic Resonance Oncology Care Systems Audiology Technology Solutions Cardiology Solutions Radiology Solutions Oncology Solutions Women s Health Solutions Digital Hospital Solutions Services Picture Archiving & Communication Clinical and Administrative Software Managed Healthcare Services Customer Service 2
2 The First Human X-ray 3 4
3 CT started off as a HEAD SCANNER... First Clinical EMI CT Scanner, Mayo Clinic Rochester, USA 5 The Evolution of CT in 30 years
4 SOMATOM Definition World s first DSCT HR independent temp Res. 83 msec Spatial Res. < 0.4 mm 7 sec for 147 mm Rotation 0.33 sec HR bpm Courtesy of University of Erlangen / Erlangen, Germany 7 8
5 The Situation Buyers Account CT Radiologist Siemens Rep C-Level Emerging Cardiologist 9 Our Market ALL FACILITIES Integrated Delivery Networks (IDNs) 582 Outpatient Surgery 4,096 10
6 The Symptom The Black Hole Traditional Marketing Focus Traditional Sales Focus The Black Hole Marketing and Sales "Funnel" Awareness Interest Consideration Action Lead Propose Close Key Issues Data Forecast Purchase Decisions for the coming year Matching the # Opportunities with the # in Siebel The total is then given a % Market Visibility Score The US was at about, Europe was at 9 Sales said they needed more $ to fix it, Marketing said they needed more $ The Product Group Needed an Answer!!!! 11 The Diagnosis - Sales & Marketing Scorecard Key Coverage Metrics Marketing Coverage Index - Traditional 1 Siemens vs. Competitors Siemens Company A Company B Company C Siemens Account Types Siemens Acct CompetitiveSmall/Medium Non- Acct Hospitals Hospitals Marketing Coverage Index - Emerging 2 % Covered by Sales Rep 3 Sales Satisfaction 4 Key Funnel Performance Metrics % Aware of Offering (unaided) More data % Considering this topic Vendor % Requesting Proposal Win Rate (among RFPs) 12
7 CT Sales & Marketing Scorecard: Company Trailed Competitors in Sales Reach and Consideration Key Coverage Metrics Marketing Coverage Index - Traditional 1 Marketing Coverage Index - Emerging 2 % Covered by Sales Rep 3 Sales Satisfaction 4 Company vs. Competitors Client (n=99) 48% 16% 31% 48% Comp Comp A B 59% 3 57% 75% 54% 23% 48% 64% Comp C 46% 17% 31% Account Types Siemens Non 31% 62% 89% 44% 12% 26% 41% Small Accts 51% 18% 34% 51% Med Accts 39%* 11%* 36%* 46%* 13 CT Sales & Marketing Scorecard: Company Trailed Competitors in Sales Reach and Consideration Company vs. Competitors Account Types Key Funnel Performance Metrics Client (n=99) Comp A Comp B Comp C Siemens Non Small Accts Med Accts % Aware of Offering (unaided) 58% 75% 64% 89% 41% 51% 46%* % Considering Vendor 46% 86% 57% 33% 84% 39% 54% 38%* % Requesting Proposal 36% 82% 54% 32% 91% 28% 39% 38%* Win Rate (among RFPs) 31% 59% 35% 31% 83% * 33% 16%* 14
8 Company Lagged Competitors in Usage Interactive Marketing and Web % Customers Utilizing Source for Vendor Information in Past Year ) Competitiv e Average Client - BIC"Gap" 1 Sales Rep/Team 71% -11% TRADITIONAL Trade Journals / Articles Traditional Direct Marketing newsletters, brochures In-Person Events conferences, seminars, meetings Advertising television, print, radio 65% -9% 62% -16% 59% -15% 16% -31% Web Sites company / sponsored third-party sites Online Events conferences, seminars, meetings Electronic Direct Marketing e-newsletters, e-brochures EMERGING 43% -33% 25% -21% 25% -49% Critical Gap 15 Key Consideration Factors Are Twice as Likely to be Driven by Product Offerings than by Sales Reps % Top-Two Consideration Factors) Medium Accounts 27% 21% Service Price Products Brand Sales Team First Choice 32% 15% 1 35% Second Choice 18% 24% 11% 4% % 61% 38% 18% Small Accounts 44% 48% 37% 48% 22% 16
9 Customers Rank the Company Below Key Competitors in Ability to Provide Information on Business Applications Ability to Provide -- % "Excellent" or "Good" Responses % 77% 83% % 86% Product Information 8 79% 56% 65% Application Information % 69% 65% Financial Information 36% 34% 37% Service Information Company A Company B Client Company C 17 Recommendations Remix Marketing 1 2 Spend and Mix Shift & Enhance Coverage Model Medium Hospitals Focus Field Sales Activities on Medium Hospitals Small Hospitals Non- Hospitals Add a Dedicated Small Hospital Sales Force 18
10 A Cool $100 Million TRADITIONAL Siemens Shifted Marketing Spend Toward More Effective Emerging Tactics Medical Journals / Articles Traditional Direct Marketing newsletters, brochures In-Person Events conferences, seminars, meetings Advertising television, print, radio Web Sites company / sponsored third-party sites Electronic Direct Marketing e-newsletters, e-brochures EMERGING % Customers Utilizing Source for Vendor Information in Past Year Sales Rep/Team Online Events conferences, seminars, meetings 17% 12% 11% 11% 18% 15% 15% 13% 23% 15% 11% % 33% 46% 49% 54% Prediction 75% 7 63% were right Customers 74% 61% 52% 62% shifted 64% behavior 63% to 56% 51% new online 67% channels 64% New Investments were paying off 8% 8% 7% 13% 14% 16% 25% 25% 26% 27% 23% 28% 25% % 51% 45% 39% 42% 38% 43% 45% 34% 41% 35% 47% 42% 43% 52% 61% 68% 71% Siemens Change +11% - -8% -13% -4% +15% +16% +1 20
11 Results at the Expense of Major Competitors Key Coverage Metrics Marketing Coverage Index - Traditional 1 Marketing Coverage Index - Emerging 2 % Covered by Sales Rep 3 Sales Satisfaction 4 Key Funnel Metrics % Aware of Offering (unaided) Siemens vs. Competitors Siemens (n=132) +25% + +26% +23% +17% A (n=132) -16% +31% - 5% - 5% +2% B (n=132) +4% +18% -12% -11% --% C (n=132) +1% +19% % Siemens Account Types Siemens Competitive +25% +39% +11% -4% -2% +17% % +17% +7% Sm/Med Hospitals +23% +41% +22% +26% +13% Non +31% +48% +23% +49% +24% % Considering Vendor More data % Requesting on this topic Proposal Win Rate (among RFPs) +16% +22% +8% -19% -15% -26% -19% -1-22% +3% +3% -18% +15% -18% -15% +8% +14% +9% +11% +25% +5% +19% +7% +25% Improvements were seen all over the board except 21 Except One Competitor Was Making Gains Siemens vs. Competitors Siemens A B C Siemens Account Types Siemens Competitive Key Funnel Metrics % Aware of Offering (unaided) +25% Competitor -16% +4% C had +1% held its ground +25% and +17% was + making +31% inroads +18% in Siemens +19% Accounts +39% % Siemens - 5% performance -12% -1 had declined +11% +15% in existing accounts specially in those accounts +23% - 5% -11% -1 that were price sensitive -4% +17% +17% +2% --% +5% -2% +7% % Considering Vendor +16% -19% -19% +3% +15% +8% More data % Requesting on this topic Proposal Win Rate (among RFPs) +22% +8% -15% -26% -1-22% +3% -18% -18% -15% +14% +9% 22
12 A Significant Shift In Key Consideration Drivers Has Occurred Service & Price are the Dominant Consideration Drivers in % Top-Two Consideration Factors (n=99) 48% 47% 45% 42% 15% % Top-Two Consideration Factors (n=132) 75% 55% 24% 36% 19% 27% 21% 32% 15% 1 35% 18% 24% 11% Service Price Products Brand Sales Team First Choice Second Choice 4% 55% 35% 15% -5% 24% 36% 33% 21% First Choice 1 14% 16% Second Choice 16% 3% Service Price Products Brand Sales Team 23 Competition 24
13 Credits/Thank you Scott Gillum, MarketBridge Founded in 1992, MarketBridge is a leading professional services firm focused solely on Go-to-Market strategy and marketing and Sales effectiveness. Bappa Choudhury, Siemens Medical Solutions Inc bappa.choudhury@siemens.com 26
1 Table of Contents 1.1 List of Tables 1.2 List of Figures 2 Introduction 2.1 GBI Research Guidance 3 Medical Imaging Information Systems - Overview
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