The selling cycle and distribution of hip implants

Implant Sales

One of the first items of business in establishing the viability of our product and the proposed marketing plan is to look at the selling cycle. According to one expert, Christine Comaford-Lynch, the selling cycle is one of the first items to address when contemplating entering a market. Comaford-Lynch asks a number of questions regarding the selling cycle. She states the financiers often wish to know the answers to such questions as "what is the selling cycle? What proof do you have? Do you have a long selling cycle for a premium product and 50% shorter cycle for a starter or lower-end product? How is each relationship established? Sustained?" (Comaford-Lynch, 2007, p.18).

Answering the questions about the selling cycle of the hip implant device our proposal concerns would go far in helping our cause, not to mention our profitability. The selling cycle for our product is relatively long when compared to other industries. For example, one recent expert states "that the selling cycle in printing is three to six months" (Farquharson, 2008, p. 53). The selling cycle for our product should average approximately 60 -- 90 days. However, we also predict that establishing those long-term relationships will take up to three years during which time the product sales will remain at a fairly low level/

Production of the implant devices can be ramped up almost immediately upon a placement of an order and delivered with a week. The sales team will need to establish contact with the doctors and hospitals upon the go-ahead of the project. Having a competent sales team hired would take approximately one to six months. Establishing contact and garnering appointments within the medical industry would take an additional six months to a year.

Placing orders should take place on a fairly consistent level during the ramp up process. Delivering the orders along with follow-up meetings would take an additional one to three months.

Moving the client to someone who has never heard of our company or product will take a collaborative effort between the marketing department and the sales team. The marketing team will be charged with producing four-color informative brochures for distribution as well as a coordinated advertising campaign directed towards the targeted doctors and hospitals. This campaign could include sponsored luncheons for the doctors and the decision-making staff of the targeted hospitals. Establishing relationships with these individuals will be considered the sales executive's job. Since the Distribution of the product will be handled through direct sales, and wholesalers. The wholesalers will be healthcare dealers and stocking distributors. These firms specialize in the identification of a viable market and already have sales teams in place to promote products such as our low-cost implant alternative. Although our profit on each device will not be as high as the direct sales, the selling cycle and a penetration of a marketplace that is difficult to enter are the endearing qualities exhibited by wholesalers. Our profit margin per device will be much lower, but the quantity sold would likely be much higher. Access to these wholesalers is a relatively easy maneuver since many of these firms consider product diversification as a high priority and are constantly on the lookout for products to add to their current line(s). Many of these wholesalers are international in scope and would also bring that advantage to our firm.