In the context of the sleep/rest support systems the integration of patient monitoring systems is a major market opportunity. A second key technological development is the adoption of lean manufacturing techniques in this industry. The use of Kanban manufacturing, demand-driven manufacturing, and distributed order management and supply chain optimization systems are all fueling the level of innovation occurring in this market. In addition to all these factors, the medical products industry is experimenting with Six Sigma manufacturing practices with offshore manufacturing partners to further reduce costs. These cost reductions are significantly impacting the industry's ability to invest even more into R&D and speed up the product lifecycles that set the pace of the entire global medical products industry. A third factor of technological innovation is the investment manufacturers are making in virtual instrumentation and its use to create combined monitoring and preventative assessment analysis. For medical products manufacturers of sleep/rest support systems this translates into developing and integrating the necessary electronics to allow their beds to be used in a broader network where patients can be continually monitored and their status reported to a central system. The integration of electronics into sleep/rest support systems is critical for their continued adoption into Internet-based home networks that provide for 24/7 monitoring of patients. Beds and sleep systems are often used as the platform for integration of these systems as it is where the majority of the elderly spend the majority of their time.
Additional factors related to technological innovation in this industry include the high barriers to entry due to the exceptionally high capital costs required to manufacture medical appliances and the need for sustain high spending levels on R&D once a firm has entered this industry in order to stay competitive. Lastly, the compliance processes in this industry also impact R&D, as the Federal Food Drug & Cosmetic (FD&C) Act which...
These controls are the baseline requirements that apply to all medical devices necessary for marketing, proper labeling and monitoring its performance.
Current marketing (advertising, promotions, distribution)
The primary growth catalyst of this market is the aging population of baby boomers reaching retirement age in the early years of the 21st century. According to the U.S. Census are more than 76 million Americans are currently age 50 and older (the number of Americans 65 and older is expected to more than double by 2030). As baby boomers reach an age where they need more medical attention, hospitals, patient-care centers and the in-home medical alternatives are expected to growth steadily through the early years of the 21st century.
This translates into the need for manufacturers to create marketing strategies that look to expand their share of in-home medical products purchases by providing an enhancement strategy for new sales of next-generation products. The integrative aspects of product strategies need to also be stressed, from electronic monitoring and accessibility to the Internet for 24/7 monitoring to mechanical integration to other manufacturers' accessories, this is a key aspect of the marketing strategy for these companies going forward.
In terms of marketing messaging, the key aspect that needs to be communicated is trust, quality control, and commitment to continual improvement of products. These aspects of any manufacturers' brand make them trustworthy to the consumers in this segment, who will pay as much for a sleep/rest support systems as some paid for their cars in previous generations. In the minds of the target market consumers, the cost of a sleep/rest support system is very significant. Trust must be earned and kept as part of any marketing strategy.
