In our continuing series on the topic of market transformation within the pharmaceutical and medical device industry, we have highlighted the need for a more sophisticated, strategic approach to market segmentation. Several factors are combining to require successful companies to approach market segmentation more effectively. These factors include market dynamics, shifts in the power of who makes decisions, and the cost-benefit basis for those decisions.

With the ongoing transformation in the global pharmaceutical and medical device industry, new approaches to understanding markets, market niches, and strategic marketing are essential for companies that are focused on creating real competitive advantage. In particular, economic and clinical value (ECV), or cost combined with efficacy, is rising to the forefront in the industry, fueled by the recent changes in healthcare in the U.S. reflected in the Patient Protection and Affordable Care Act.