Main Subject - Business

Niche marketers should price their products and services based on the value received by the customer: it i

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

s the customer’s perception of value that counts. If you calculate price based on cost and/or the competit

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

on, you are not in a niche market or you are pricing incorrectly.

Niche market customers buy your product

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

or service because it is different from the other options available. That difference is your value and it

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

can be worth a premium price. Value is subjective and not every customer will need your product’s unique b

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

nefits, but this is how niche marketing works. As a niche marketer, you focus on serving a market segment

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

that has been overlooked or underserved; the value or difference you add is your special knowledge of thei

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

unique needs.

The value can come in the form of unique product or service features that you add. That va

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

lue could come in many forms, even prestige. For example, Tiffany’s is a “prestige” brand for jewelry; peo

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

le buy jewelry at Tiffany’s because of the brand. Yet, diamonds are diamonds. You can buy the same quality

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

diamonds at Costco, but you don’t get the prestige buying experience. For the Tiffany’s customer, it is wo

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

rth the price premium to walk out the store with the Tiffany’s bag or box.

Value based pricing is determi

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ed as the highest amount that a customer will pay for your product or service given the unique value that

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

you offer when compared to the other alternatives. By giving the niche customer exactly what they want, th

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

re are no other real alternatives. If that is the case, price it accordingly.

John Bradley Jackson brings

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

street-savvy sales and marketing experience from Silicon Valley and Wall Street. His resume also includes

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

entrepreneur, angel investor, corporate trainer, philanthropist, and consultant. His book is called “First

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

Best, or Different: What Every Entrepreneur Needs to Know About Niche Marketing”.

Check out his website

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

at: www.firstbestordifferent.com or his bl

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

g at www.firstbestordifferent.com/blog

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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That term is probably one of the most heard statements on Google today. Making money is not like pulling the slot machine handle at Vegas, but it would seem that many promote as being that simple.

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Main Subject - Niche Marketing is All About Value Pricing

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