Determining the best value proposition to major vertical markets

By Elise Hacking Carr

Come Correct: Avoiding a fatal business approach in the medical sector

The medical vertical requires nurturing and patience. Clients belonging to this market do not make quick decisions in regard to promotional ideas. “They are methodical and only truly make a committed decision when a certain level of trust has been developed within the relationship,” noted Ron Williams, director of marketing, Fey-Line & Reflectix, Edgerton, Minn. “This group detests drop-in visits because they have busy schedules to maintain.”

That being said, the medical market still can be a gold mine for sales opportunities—if you know the correct approach. Here, Williams imparts strategies for targeting this specific industry.

Print+Promo (P+P): What should distributors know before attempting to penetrate the medical vertical market?
Ron Williams (RW): They need to understand that while medicine is a business in the truest sense, the actual decision maker’s primary concern is the health and welfare of [his or her] own clients. Because of that fact, decision making regarding marketing possibilities will always take a backseat to what they believe are the more pressing issues. Another fact to contend with is that a large proportion of physicians and medical establishments view “marketing/advertising/promotion” as slightly gimmicky and because of such look down their noses at it. The true exceptions within the medical market are plastic surgeons, physical therapists, chiropractors and radiographic service centers—they actively market their services.

P+P: How has the PhRMA Code affected the business relationship between distributors and their potential or existing clients?
RW: The biggest way the business relationship has been affected has been to “place at arms length” promotional items by physicians. What distributors need to do, however, is determine who actually is the gatekeeper in the office setting. This is usually the office manager. The medical office gatekeeper will need to be educated as to how the promotion/marketing will advance the cause of the office within the community. All products suggested by the distributor must add value to the physician/client relationship and must pertain to making their lives healthier, balanced and more complete. To provide actual product recommendations here would not be right to do, but there are literally hundreds, if not thousands, of applicable products.

P+P: What types of questions should distributors be asking their clients in this sector? On the flip side, what questions should distributors be prepared to answer?
RW: First and foremost, do not approach the majority of clients in this sector from an “I’ve got a great marketing idea” mentality. The approach needs to be focused around “community education” concerning not only the physician(s), but also about specific health issues that the office deems important. How important is educating the community about the conditions/diseases treated? Is there some condition unexpectedly popping up more frequently? What does the office want to accomplish with its community and patient education efforts? On the other side, always be ready to answer the “How professional would this look” question.

An $8 billion integrated global healthcare enterprise was ailing from multiple problems. The company's complex supply chain, multiple business units and intricate marketing programs presented its management team with visibility, coordination, economies of scale and execution challenges. Dayton, Ohio-based WorkflowOne had the cure.

The distributorship immediately began to cull best practices from its rich history with major verticals. Deep marketing, supply chain and sourcing experience combined with supporting tools enabled WorkflowOne to develop a comprehensive program around promotional products. Key components of this program included:

• An online store for the company's employees to shop and brainstorm ideas for future events and programs.

• A promotional merchandising team to develop creative solutions that met end-user needs.

• A sourcing service consisting of vendor management and organization compliance controls.

• A system to maintain the company's brand standards and manage end-user requests.

Having a goal-oriented implementation process has served the global healthcare provider in many ways. The company has improved brand compliance and control, led to reliable delivery and reduced inventory obsolescence, increased customer satisfaction through enhanced merchandise selection and more.

Distributors have the luxury of being flexible—their success isn't measured by a single technology or product line. But the decision to identify and penetrate a vertical market (e.g., medical, retail, insurance, automotive, insurance, government, financial, hospitality, etc.) isn't easy. Some may call it a gamble that requires careful consideration and lucky timing. This lends itself to the question: Is it better to be a general full-service provider or a full-service provider to a single niche? The answer isn't quite simple.

Jeff Grippando, vice president of branded merchandise strategic business unit, WorkflowOne, encouraged undecided companies to conduct research, seek education and consult with someone who has worked in or at least sold to the vertical market of interest. According to Grippando, the sales process, purchasing dynamics, products and services can be varied and unique for a particular vertical market—something to think about, even more so with branded merchandise.

A Helping Hand

Many distributors are turning to their supplier partners for sales support and ideas. Take advantage of what these companies can do for you and your business.

WARD/KRAFT
• WK Lives: Choose from 12 different training presentation options from Ward/Kraft’s website (www.wardkraft.com) for product and market-specific training with a company sales representative.

• On-Site Presentations: Ward/Kraft comes to your office for a product presentation. The customized presentations can range from one to two hours, or up to a full day if you prefer a sales team training day.

• DSU (Document Solutions University): Distributors come to Ward/Kraft’s corporate campus in Fort Scott, Kan. for a day-and-a-half product training seminar.

NORWOOD & BIC GRAPHIC NORTH AMERICA
• Distributors receive help in putting together presentations specifically geared toward a particular vertical market, and are given online access to a variety of selling tools to help build their marketing plans.

• Distributors can sign up for the company’s series of webinars (co-hosted with Promo Marketing) geared toward educating distributors on key product categories, target audiences, niche markets, growing their business and other concerns such as product safety.