By Brenda Tilke

Companies develop new ways to market to customers serious about their purchasing plans

For everyone in the radiology business, the RSNA meeting continues to be the biggest game in town. It’s also the most expensive. Large companies like Siemens and GE spend more than $100,000 designing and creating their elaborate exhibits and more than $1 million in transportation housing for their personnel for the week. The wining and dining of existing and prospective customers adds to the bill.

Businesses don’t drop that kind of cash in a few days without expecting something in return. But as the dynamics of the radiology market evolve, some executives are wondering just what they can reasonably expect from this event—as important as it is. With the dynamics of the equipment purchasing process in flux, companies are wrestling with the issue of whether such a massive outlay of cash and staff power is justified.

The RSNA is keenly aware of the financial burden that vendors shoulder in coming to Chicago. At the 1998 conference, RSNA leaders joined Chicago Mayor Richard M. Daley in a press conference to announce measures designed to reduce some of the trade show overhead, particularly labor costs. More hotel rooms and improved transportation were also promised to ensure that attendees would have easier access to the conference.

In addition, the RSNA regularly surveys technical exhibitors to see how the meeting dovetails with their needs. As the pool of equipment purchase decision-makers has expanded beyond technologists and radiologists, the RSNA has developed marketing tools to help attract them to the conference. Through the society’s executive marketing service program, each technical exhibitor can ask that as many as 25 healthcare executives receive special invitations to attend the conference. The RSNA also offers to assist with registration for this group.

At this year’s meeting, the RSNA will unveil another marketing technique known as “in-boards,” or indoor motion billboards. The backlit, constantly changing billboards, each measuring 3 x 4 feet and mounted on pedestal stands, will be placed at four entry points into the two exhibit halls. While the RSNA believes the billboards will be eye-catching, they should not distract attendees who stop at exhibits positioned near these entry points. The RSNA also has widened aisles in the exhibit hall to minimize traffic jams around some of the biggest and most popular exhibits.

While industry executives declined to discuss with Diagnostic Imaging the specific number of sales leads they expect to cultivate at the RSNA meeting, they all agreed that no one can skip the RSNA meeting and remain a “player.”

“The RSNA is where you build awareness in the marketplace,” said John Steidley, director of the vascular business unit for Philips Medical Systems North America, based in Shelton, CT. “It’s where we reinforce our position in providing solutions to meet clinical, economic, and IT needs, as well as to introduce new products.”

For vendors, the meeting has gone beyond showcasing new equipment. Last year, technical exhibitors focused on their ability to provide “solutions” and Y2K compliance. This year seems to be shaping up as an opportunity for “branding.”

“We’ll be tying into the overall Philips theme of ‘Let’s make things better’ and showing the connection to Philips’ whole range of electronics,” said Paul Berger, marketing and communications manager.

Other companies are taking the same approach. According to Alex Stein, vice president of marketing services for Siemens Medical Systems in Iselin, NJ, the RSNA gives exhibitors a way to present the capabilities of the entire organization.

“We are seeking to give current and potential customers a clear picture of all that they can gain from a relationship with Siemens,” he said. “All the modalities want to show their stuff. But they are also aware that a customer buys the Siemens brand and not just a piece of equipment.”

Vendors expect to see thousands of radiologists at the show. But with this marketing strategy, they also want to see hospital administrators, group purchasing organization (GPO) representatives, and even information technology professionals, all of whom play increasingly important roles when buying equipment. Exhibitors like Siemens expect to see “the most influential clinicians and administrators in a setting conducive to making compelling presentations and having in-depth discussions,” Stein said.

The rise of GPOs has led some industry analysts to wonder whether big technical exhibits like those at the RSNA meeting may become outdated. So far, vendors say no, especially those who sell to OEMs.

“Group purchasing organizations do not in the end make the purchasing decision,” Steidley said. “They may structure the terms and conditions of the purchasing agreement, but they still look for the clinical input from their members.”

While the GPO relationships are increasingly important, being a preferred vendor isn’t enough to make the sale, according to Stein.

“We must still market effectively to individual clinicians and administrators to be successful,” he said.

The diversity of attendees has changed the sales pitch, however. Companies recognize that what appeals to a radiologist may not capture the attention of GPO representatives.

“This means that presenting our solutions and capabilities is as important as our technology in the overall presentation of our organization,” Stein said.

Large multimodality vendors like GE, Picker, Philips, Siemens, and Toshiba stress the across-the-board solutions and branding concept. Single-modality vendors like ultrasound equipment manufacturer Acuson of Mountain View, CA, take a somewhat different view.

“We are the only dedicated ultrasound company left,” said Rick Smith, Acuson senior vice president of worldwide sales and marketing. “The RSNA is especially important for us, to show ultrasound customers that we are forward-looking. We have a lot of our engineering and clinical staff on hand as well as sales and marketing staff.”

For companies that sell to OEMs as well as end users, the RSNA meeting represents a golden opportunity to meet with company executives who can be hard to reach the rest of the year. For the product mix of companies like Nuclear Associates, the trade exhibition is very important, said Richard Schubert, director of sales for the Carle Place, NY, company.

“We can see anywhere from 700 to 1000 leads from the RSNA. Seeing the other vendors in the exhibit hall gives us the chance to explore new opportunities for the company, see how our products will fit in and what we have to do to meet new developments,” Schubert said.

Indeed, a high priority for exhibitors is to make sure their executives and sales staff see what the competition is up to. The RSNA has regulations to keep technical exhibitors from going into their competitors’ booths, but most companies have found ways to obliquely bend the rules. Some are as simple as borrowing a radiologist’s name tag; others are more complex. One multimodality vendor has a tradition of holding a contest among its sales reps to see who can gather the most press kits from its competitors. Tactics include surreptitious forays into the RSNA pressroom and currying favor with members of the trade press to pass on the kits. The winner earns a dinner at a top Chicago restaurant.

The Internet, however, is where the game is really being redirected. More companies than ever have found ways to use their Web sites to promote their technical exhibit. Kodak, for example, offers a “virtual tour” of its booth during RSNA week. Philips will be promoting its RSNA meeting exhibit on its Web site and also promoting the site’s online learning center at its booth.

“We’ve developed a pilot project on distance education,” Steidley said. “It’s a way to earn CME.”

Web sites have become a marketing tool for the vendors, who can provide “teasers” about their booth, adding more content as the RSNA meeting draws closer and then posting their entire press kit or other promotional literature after the show has ended.

The sites also provide a cost-effective way to market to international attendees. Exhibitors acknowledge the growing international ambience of the RSNA meeting. Big vendors like GE and Philips have significantly enlarged their international welcome desks and beefed up the number of translators and multilingual sales staff. Even small companies are hiring translators, especially those who speak Spanish or Asian languages.

At the 1998 meeting, international attendance took a slight dip due to the lack of downtown hotel rooms. Chicago officials have promised that more hotel rooms will be available and the RSNA reports that international attendance has rebounded in early registration figures.

At last year’s meeting, nearly every vendor was touting its Y2K compliance solutions or programs. This year, the issue will be less important, as customers will simply assume that products are Y2K-compliant. For many vendors, the shift away from the Y2K issue is welcomed.

“We expect to see an upward blip in spending,” Schubert said. “Last year, a lot of companies were holding back on spending, waiting to see what Y2K compliance was going to cost them. Since that issue should be pretty much resolved by the RSNA, they can budget more for equipment purchases.”

Concerns about computers will stay at the top of the priority list, however. The RSNA and the Healthcare Information Management Systems Society (HIMSS) will be showcasing their new relationship at this year’s meeting, and the integration of the healthcare enterprise will be emphasized at many exhibits.

Communication, information management, and hospital integration will be important themes at this year’s RSNA meeting, Stein said.

According to Marcia Wroblewski, Philips field marketing manager for vascular products, demonstrating product line connectivity is crucial. Vendors have to show they can manage a blizzard of information.

“With more IT professionals, companies also have to ensure they have enough staff on hand at the exhibit who truly understand the fine points of information science technology. These are subjects that often exceed the range of the average sales representative,” she said.

One area where diminished expectations have led to major changes is the after-hours social events. In the early 1990s, companies feverishly tried to outdo each other with large, lavish spectacles. Many of the attendees at these events had little interest in the vendor’s product line or had no input into purchasing decisions. At the time, it did not seem to matter. Now it does.

“Companies have definitely gotten away from the ‘who can throw the biggest party’ competition,” Smith said. “Now you’re seeing more small events that allow staff to interact with all the customers. It’s still a social setting, but it’s also a real opportunity to learn more about the needs of the customer.”

Exhibitors are also reporting a turn away from the tire-kicking customer who just wants to check out the latest upgrades. According to Smith, many customers spend time in the technical exhibit hall more to confirm a decision than to start the purchasing cycle. The overwhelming choices available in both the scientific program and the commercial offerings simply do not allow enough time for casual browsing.

“We have seen a definite shift to a more serious buyer,” Steidley said. “The customers are more focused in their visit to the exhibit floor. They are usually somewhere in the sales cycle and about to make a decision.”