NeuroStar TMS marketing plan for treatment-resistant depression

Neuro Star TMS: Marketing Plan Proposal

NeuroStar TMS Therapy system represents the latest innovation for the treatment of Major Depressive Disorder in adults. This therapy is recommended for patients that failed to achieve satisfactory results one prior ant depressive medication at or but the minimal effective dose and duration for the current depressive episode (NeuroStar TMS, 2009). It is a non-invasive techniques based on the new research area, neuronetics. NeuroStar TMS and other similar devices being developed and marketed represent the next generation in treatment for Major Depressive Disorder. This is new technology and represents a major breakthrough in the field of clinical psychology. As such, Neuronetics must develop an aggressive marketing plan to promote this new technology. The following outlines a proposed marketing plan for the continued expansion of Neuronetics and their products.

The NeuroStar TMS System

NeuroStar is the first non-systemic, non-invasive treatment of its kind to be approved by the U.S. Food and Drug administration. It is recommended for patients that have not responded to traditional medication-based treatments. The treatment uses a highly-focused, pulsed magnetic field to stimulate function in the brain areas that are responsible for the depressive episode (NeuroStar TMS, 2009). Under the current licensing, treatment with the NeuroStar TMS system is a secondary treatment, which is used only after primary treatments fail to provide relief. Perhaps in the future, more information becomes available and data accumulates to support the success of the treatment, NeuroStar TMS will become a primary treatment for Major Depressive Disorder.

NeuroStar TMS passed U.S. Department of Agriculture tests for safety and efficacy (NeuroStar TMS, 2009). This device has only been tested in patients that have received no benefit from one antidepressant regimen. It has not been tested on patients that have had no success with two or more antidepressants, or on patients that have not received prior antidepressant therapy (NeuroStar TMS, 2009). This limits the eligible patient pool significantly and will affect the initial ability to market the device. However, further USDA testing on these groups of patients would significantly increase the potential client pool.

For the pool of eligible patients, the NeuroStar TMS significantly reduced the reported severity of symptoms using both the MADRS and the HAMD-24 scores. Treatments were carried out for a 6-week period. Those that received NeuroStar TMS in active mode experienced a 22.1% reduction in their depressive symptom, as compared to only 9% in patients that did not receive active treatment (NeuroStar TMS, 2009). Nearly one third of the patients reported a 100% reduction in symptoms at the end of the test period. These results are impressive and represent dramatic improvement for patients that use the system. The results of this study support the reliability and value of the NeuroStar TMS in treatment of unresponsive major depression.

Depression can have devastating effects on the patient and the patient's family. Persons suffering from depression may experience difficulty performing every day tasks. When depression does not respond to treatment, a feeling of hopelessness can develop, as the patient feels that there will be no end to how they feel. The NeuroStar TMS provides these patients with another option and a treatment that has a chance to alleviate many of the symptoms where traditional therapy was unable to bring relief. The NeuroStar TMS gives patients hope, where none existed before.

Size and Scope of the Market

It may be impossible to determine exactly how many people are suffering from Major Depressive disorder. According to the National Alliance on Mental Illness, Major Depression affects nearly 15 million Americans every year (NAMI, 2009). This is nearly 5-8% of the total adult population in any given year (NAMI, 2009). Depression occurs twice as frequently in women as in men, but the reasons for this are not known (NAMI, 2009). This device will be marketed toward clinicians who treat Major Depression. It will represent a significant marketing tool for their practice, as it represents state-of-the-art technology. It will give their patients with treatment-resistant depression another tool that they can use to combat the disease.

Currently, NeuroStar TMS is only approved for usage in the United States. It has not yet been marketed in other parts of the world. This would make a logical next step. However, expansion of the market should only be undertaken after a solid base has been established in the United States. Global expansion represents an almost unlimited potential for market growth in the future. The first targets should be industrialized nations, and then marketing efforts can move on to developing nations.

Competition Analysis

Research into the use of magnetic devices for the treatment of mental conditions is in its infancy. Neuronetics, the developers of NeuroStar TMS are pioneers in the field. This gives them the advantage of building brand equity and capturing the market before competition enters the scene. The first company to enter into a new field has an advantage over competition that may enter the arena in the future. They can establish recognition of their name with the product. Competition that enters later in the game will have to take established customers from earlier entrants. This can be more difficult for competitors than for the originator of the concept. The first company to enter the market can always claim to be the "first." Everyone else can be seen as an imitator. There are decided advantages to being the first to market with a new product.

In 2005, the FDA approved an implantable nerve stimulation device made by Cyberonics, to treat depression (Zwillich, 2007). The NeuroStar TMS has an advantage over this device in that it does not require invasive surgery. Another company, Brainsway, is currently attempting to gain approval for a similar deep TMS device, similar to NeuroStar TMS (Brainsway.com, 2009). Neuronetics was able to gain approval for their device sooner than Brainsway. However, since the two devices are similar, it is likely that the device designed by Brainsway will gain approval as well. This device poses the greatest threat of competition for NeuroStar TMS.

Currently, the device by Cyberonics and the one being developed by Brainsway pose the greatest chance for competition. NeuroStar TMS has the advantage because it is currently being marketed. Once practitioners have one device, the high cost of the machines makes it unlikely that they will simply switch to the competition. The costs for switching are exceptionally high in this case. It is likely that the first one to grab a customer will have them for life. Getting the NeuroStar TMS to market first was a key advantage in the ability to overcome competition in the future.

Primary Markets

Primary markets for the device will include individual clinical practices and groups that treat major depression in their clients. The most lucrative of these will be those that have large populations of clients that are already on antidepressant medicine. These clinicians have the greatest likelihood of obtaining clients that are treatment resistant. Another important type of practice will be those that specialize in the treatment of major depression as their primary focus. Private practices will consist of the bulk of primary market targets.

Secondary Markets

Several secondary markets exist that may yield results. In addition to clinical practitioners, general hospitals may also prove to be a worthy target. They may be a particularly lucrative source in rural areas. Many times in rural areas, people are accustomed to going to a local hospital to receive treatments that they cannot get in their physician's office. Purchasing decisions in small practices will depend on the costs of the device compared to the potential client base that they feel they can generate from it. In some cases, it may be more cost effective for centrally located hospitals to have the machine available. The device could draw clients from many different practices in the area, thus sustaining itself from a larger geographic area. Larger mental health facilities are likely to take this approach as well.

Another potential secondary market is Universities and Colleges that offer degrees in clinical psychology. These institutions may be interested in having a NeuroStar TMS onsite for teaching purposes. This could also be a potential source for the conduct of other research studies that could help to promote the units. These secondary markets have the potential to play a key role in the ability to expand usage and awareness of the product.

Marketing Methods

The key marketing techniques will be those that build exposure within the primary target market. Trade shows, conventions, and meeting of Professional Clinical Societies will play a key role in the marketing plan. Exposure at these events will help to establish credibility. This will be a cost effective marketing tool because these events are often well-attended by the primary target market, as well as some members of secondary markets as well.

Of course, the website will play a key role in the marketing plan. Individual sales reps will pay personal visits to targets in their area. They can distribute literature and will sometimes serves as the client's first exposure to these types of devices. Cold calling will not be as effective as a well-researched targeted approach to the marketing plan.

Final Remarks

The NeuroStar TMS represents one of the newest and most innovative treatments for major depression on the market. There is strong evidence that its use and acceptable in clinical practice will continue to grow. The key to successful marketing of the NeuroStar TMS lies in the ability to conduct a highly targeted marketing campaign. The focus of the marketing campaign should remain on the identifiable target market within certain geographic areas. Once these resources are exhausted, the marketing campaign should shift its focus to the secondary markets in the area.

The potential for expansion of the NeuroStar TMS on a global basis is exciting. There are many steps in the process, such as getting approval in those countries, production of marketing materials to target those markets, and developing a culturally relevant marketing campaign. However, the global marketing potential of the device holds sufficient potential to make it a worthwhile effort.

Initial marketing efforts will focus on developing product awareness and brand identity. It is hopeful that NeuroStar TMS will have established sufficient brand equity to stave off any competition that enters into the market in the near or distant future. However, in order to ensure the ability to do this, the marketing department must work fast. Neuronetics, Inc. (2008). New Study Demonstrates Cost Effectiveness of NeuroStar TMS Therapy in the Treatment of Depression. Establishing brand identity and equity is the key to creating a sustainable edge over the competition and keeping it far into the future. These early stages of product introduction are crucial to the future success of the company and will make NeuroStar TMS the brand that is recognized as a leader in the industry.