We know several medium and large med device companies that still claim, “we sell boxes.” They may not say exactly that to customers, but inside the company they use those words, and usually with a mixture of pride, arrogance, and I think fear. Unfortunately, that thinking insidiously infiltrates everything the company does, from new product innovation to downstream marketing.
But that’s how some med device execs, engineers, and product managers think about the business they’re in: Making and selling “boxes” with good medical technology inside. It’s an easy trap to slip into – especially if the company has had success. The reality is med device companies do make boxes. However, that’s not the business they’re in.
Every med device company is in the business of improving healthcare and saving lives. Solutions to meaningful problems is what they sell.
In 1960, Harvard Business School professor Theodore Levitt wrote a game-changing article called Marketing Myopia. He posited that businesses do better when they focus on meeting customers’ needs rather than on selling products.
His quintessential example of an industry that got it wrong was railroads. While the need for freight and passenger transportation grew, railroads shrank. They wrongly thought they were in the railroad business. They didn’t see they were really in the transportation business. Why? Because they were product-oriented, not customer-oriented. As a result, railroad companies let others take their customers away.
Though it was over 50 years ago that Levitt wrote about marketing myopia, I believe that product-centric thinking still dominates in healthcare. What do you think?