White Paper by Kaon Interactive

Bringing Your Products to Life

Why Scientific Instrument and Medical Device Manufacturers
are Exploiting 3D Interactive Technology for Marketing and Sales

I N T E R A C T I V E
Bringing Your Products to Life
Why Scientific Instrument and Medical Device Manufacturers are
Exploiting 3D Interactive Technology for Marketing and Sales

An Industry Powered by Innovation

If science teaches us anything, it’s what we don’t know. This is why the scientific instrument and medical
device markets are progressing at light speed. As as new and improved instruments and devices replace
obsolete ones (in some cases every few months), so too must the marketing strategies and tactics.

Faced with uncertain funding and ever-increasing expenses, laboratories and hospitals are more prudent
than ever regarding the products they purchase. As such, marketing and sales professionals in the sci-
entific instrument and medical device markets must clearly communicate their product differentiation
and functionality at every touch-point, including where prospects often first encounter their goods—at
tradeshows, on websites and during sales presentations.

Unfortunately, what is true for almost any industry is that products for events and sales meetings have
become more expensive to acquire, demonstrate, provision, package, ship, power, maintain, and manage.
But the challenge is exacerbated in cases where products are highly intricate and delicate, and frequently
excessively large, as many scientific instruments and medical devices are. Therefore, these products are
increasingly scarce, and are far more expensive to transport.

Trading at the Tradeshow

While tradeshow attendance has declined for many industries, it remains an important venue and a nec-
essary strategy for scientific instrument and medical device manufacturers. However, there is a shift away
from large and expensive industry shows towards more defined engagements. At these more special-
ized events, marketers leverage encounters to generate sales leads, market new products, and educate
customers. Unfortunately for the manufacturer, such definition comes with a cost, making every customer
contact count more than ever.

One inherent problem with attending more How much do exhibitors spend
shows is that products need to be made available, to reach a potential
shipped, setup, and used. In an ideal world, market- customer?*
ing departments would have unlimited access to Exhibitors spend
whatever products they need, whenever they need an average of $113
for each potential
them. In reality, cost and logistics to access and customer who
utilize these products can be prohibitive. enters an exhibit,
and an average of
$197 for potential
customers who
To showcase how great costs can be, one company actually speak to a
spent $12,000 to power its high-end equipment at staff member.

a single show. Shipping can easily reach $40,000, * Note: “Potential cus-
tomers” are attendees
and drayage—the cost of moving the equipment who express an interest
on and off the floor—can run as high as $20,000. in an exhibiting company’s
product type and with
There are of course additional expenses to take into whom the company has a
good chance of making contact.
consideration, such as the cost of the equipment

Visit us online at www.kaon.com or call 978.823.0111

I N T E R A C T I V E
Bringing Your Products to Life
Why Scientific Instrument and Medical Device Manufacturers are
Exploiting 3D Interactive Technology for Marketing and Sales

itself and the personnel to assemble/disassemble, operate, and

maintain the equipment on the road and at the event.

To that end, each year exhibitors are spending more to reach

customers at shows with decreasing attendance. Exhibitors
spent $129 for each customer who entered their booth in 2006,
compared with $108 in 2005. In addition, exhibitors spent $223
for each customer who spoke with a staff member in 2006,
compared with $214 in 2005.

Too Close for Comfort

Even if budget was not an obstacle, there is still the issue of
booth space. Smaller shows imply smaller venues, resulting in
booths that have space constraints. As product lines continue
to expand, the ability to showcase a complete product line
eludes marketers who continue to struggle to showcase all
of their products by any means possible—more often than
not with static, uninspiring paper catalogs and over-crowded
booths. Further, as product lines expand, and physical spaces
contract, tradeshow personnel face a dilemma—­cut back on
the range of products on the floor, or cut back on the non-
product space designated for customers’ use within the booth,
and/or meeting rooms.

Regardless of the breadth of products, few oversized instru-

ments will fit comfortably into a 20x20 space, making it dif-
ficult to educate your customers in the absence of a product
experience.

Demos Departed
Another obstacle for scientific instrument and medical device
manufacturers is the fact that products aren’t always readily
available for tradeshow use. In fact, borrowing products for
an event—either final or prototype—has become increas-
ingly difficult, to the point where some marketing teams are
forced to purchase products from Sales, just to gain access to
them. Because so many instruments and devices are difficult
to demonstrate in a real-world environment, customers must
often rely on the testimonial of sales associates or other refer-

Visit us online at www.kaon.com or call 978.823.0111

I N T E R A C T I V E
Bringing Your Products to Life
Why Scientific Instrument and Medical Device Manufacturers are
Exploiting 3D Interactive Technology for Marketing and Sales

ences. Although shells of products are often showcased, their value is diminished. Hospitals, laboratories,
and educational institutions are far more concerned with a product’s functionality and operation, than its
physical presence or appearance.

Then, there’s the scenario where products could be demonstrated, but the risk of damage is too great. It’s
no wonder engineering, operations, manufacturing, and sales teams are reluctant to relinquish their prod-
ucts; using a product at a tradeshow subjects it to potential damage during shipment or use, rendering
the product potentially unusable, with the possibility of incurring downstream replacement costs. Beyond
the cost, the delicate nature of such instruments and devices—which often capture precise measure-
ments or micro-particles—can be easily thrown out of calibration in the hands of a novice user.

Let us not forget about the many times the marketing department must deal with missed opportunities
as a result of being left empty-handed when no prototype (or even exterior shell) of a new product was
available to show.

Competition Abounds
According to Trade Show Trends Report, an average of 43% of
booth visitors plan to buy an exhibitor’s product or service within
the 12 months following the show. The number suggests that By presenting products
buyers attend shows with a direct intent to purchase. While this is
in ways that let these
good news for the exhibiting manufacturer, they’re not alone on
the show floor; competitors are vying for those same dollars. The
audiences control their
need for exhibitors to break through the clutter is greater than own user experience, an
ever; read the full Exhibitor Online report at http://www.exhibito- emotional response is
ronline.com/exhibitormagazine/article.asp?ID=532. kindled as prospects be-
gin to better understand
It stands to reason that mere presence is no longer sufficient to and appreciate how the
satisfy a scientific instrument or medical device buyer visiting a product can impact their
booth. Only by creating an experience that captures the prospect’s research and their work.
attention, engages them directly, and empowers them to interact
with the products themselves, can marketers achieve a memo-
rable product experience. By presenting products in ways that let
these audiences control their own user experience, an emotional response is kindled as prospects begin
to better understand and appreciate how the product can impact their research and their work.

Network of Knowledge
While these industry-specific challenges referenced above center on cost-containment and product
availability, obstacles also abound surrounding product expertise. While no doubt booths are likely to be
staffed with knowledgeable personnel, can the personnel support all the traffic coming in and out of a

Visit us online at www.kaon.com or call 978.823.0111

I N T E R A C T I V E
Bringing Your Products to Life
Why Scientific Instrument and Medical Device Manufacturers are
Exploiting 3D Interactive Technology for Marketing and Sales

booth? Are they educated on every product and feature? Tied up in sales pitches with prospective custom-
ers, even the most knowledgeable staff may not be able to break away to help others who are perusing the
products and information on their own.

Studies demonstrate that people have a very short attention span for sales pitches, videos, and other
traditional sales/marketing media. However, when engaged in a dialogue or demonstration, a person’s
attention span increases dramatically. Furthermore, knowledge retention is significantly enhanced when
the customer is directly involved in the sales process. This helps the customer make better buying deci-
sions, which leads to higher satisfaction and enhances customer loyalty. Interactivity is the key to keeping
customers engaged and captivated while increasing their knowledge about your products.

Therefore, scientific instrument and medical device manufacturers need:

✔ Increased customer access to products, whether physically present or not;
✔ Significantly reduced costs to accommodate for more targeted events;
✔ A means of communicating break-through messaging and compelling product
differentiation in a way the prospect will remember; and
✔ Creation of an emotional connection with customers.

Technology Prevails
While the requirements stated above may seem out of reach, innovative technologies are paving the way
to new tradeshow experiences. In fact, today it is possible to show and demonstrate a breadth of instru-
ments regardless of space limitations, or the possible compromise of physical products or messaging. By
“virtually” showcasing scientific instruments and medical devices, products can be viewed from every
angle, manipulated to show features, and investigated to reveal the internal components to show how
a product actually works—something that can’t usually be done even with a physical product. Realistic
digital representation not only lets customers see how products operate, but reveals how they behave
and need to be maintained. What’s more, with such a presentation format comes the ability to seamlessly
integrate consistent product information, messaging and branding. The Kaon v-OSK® was designed for this
specific purpose.

The Kaon v-OSK, a large-format, high-definition (HD) appliance with an integrated optical touch screen,
built in computer and high performance graphics package, can equip your tradeshow or event with a full
range of virtual products. Easily accessible and fully interactive, product demonstrations engage prospec-
tive customers with those product features, benefits and advantage that are of greatest interest to them.

The Kaon v-OSK delivers a consistent and compelling customer experience to inspire, educate and per-
suade—all within a very small footprint. Additionally, due to the natural and intuitive nature of touch
screen systems such as ATM’s, airline and hotel check-in stations, and retail kiosks, people quickly identify
with the simple, yet engaging, user interaction environment of the Kaon v-OSK.

Visit us online at www.kaon.com or call 978.823.0111

I N T E R A C T I V E
Bringing Your Products to Life
Why Scientific Instrument and Medical Device Manufacturers are
Exploiting 3D Interactive Technology for Marketing and Sales

The availability of virtual product models on the Kaon v-OSK makes it possible to attend the wider variety
of events now on the schedule and to showcase all necessary products at each. The fact that the appli-
ance is a flat-panel display makes it simple to incorporate into a booth experience, either in a stand-alone
environment or integrated into a wall display. Given its small footprint, it is practical in smaller venues as
well as larger booths, and because it is a compact system, it is inexpensive to ship and carries lower dray-
age costs.

Taking advantage of the Kaon v-OSK technology is not limited to a cost-saving exercise. To be sure, prod-
uct acquisition costs are reduced or eliminated; shipping and drayage costs are dramatically diminished;
fewer personnel are required for product installation and dismantling—all resulting in a dramatically lower
expense for these events. But an additional set of benefits is accrued by the sales and marketing process
as well.

There is now a cost-effective, captivating way to showcase

products that were previously inaccessible, due to product “Unlike in the past, with Kaon’s
sensitivity or size, or where appropriate product specialists
3D interactive applications,
are not available to properly explain features, benefits or
prospects now have the op-
advantages. The overall reach of the marketing effort is sig-
nificantly enhanced because the Kaon v-OSK can be trans- portunity to look ‘under the
ported easily to any number of venues, set up in minutes to hood’ and gain far more knowl-
be ready to deliver a compelling customer experience and edge and understanding of the
educational product tour. As a result, a consistent, articu- capabilities and benefits of our
late, and persuasive experience is available to all prospects products,” said Randy Byrne, VP
and customers, at a lower cost than was previously possible.
of Marketing at Malvern Instru-
ments, a leading supplier of
Getting the Message Out: material characterization solu-
Cross Channel and Across the Globe
tions. “And, because we are able
Because of Kaon’s patented compression technology, once
the extraordinarily realistic virtual product models and to leverage the virtual models
demos are created, they can be applied across multiple across other platforms, it has
platforms including websites, laptops, and PDFs (as dem- greatly enhanced the capa-
onstrated below), further leveraging your investment. This bilities of our sales team to get
enables customers, global sales teams, and channel part- more products in front of more
ners access to all of your products anytime and anywhere.
prospects, which saves in travel
Further, it allows organizations to deliver a consistent and
expenses and obviously leads
engaging experience across multiple channels and custom-
er touch-points, which is increasingly imperative in address- to higher sales potentials.”
ing the ever-changing marketplace.

Visit us online at www.kaon.com or call 978.823.0111

I N T E R A C T I V E
Bringing Your Products to Life
Why Scientific Instrument and Medical Device Manufacturers are
Exploiting 3D Interactive Technology for Marketing and Sales

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“The Galileo Echo virtual product demonstration has been enormously suc-
cessful,” according to Lane Andrews, Global Creative Director of Immucor global
leader in providing automated instrument-reagent systems to the blood trans-
fusion industry. “Kaon’s virtual models have changed the way we’re presenting
our products profoundly, and the cost savings are dramatic.” He continued,
“The sales team gave a standing ovation when we first showed them the mod-
els, and our customers are now engaging far more with our products.”

Lane Andrews,
Global Creative Director of Immucor

Visit us online at www.kaon.com or call 978.823.0111

I N T E R A C T I V E
Bringing Your Products to Life
Why Scientific Instrument and Medical Device Manufacturers are
Exploiting 3D Interactive Technology for Marketing and Sales

Summary
Kaon’s virtual product models have been gaining recognition in tradeshow circles and on-
line. In June 2007, the Kaon v-OSK was recognized by the prestigious Massachusetts Infor-
mation and Technology Exchange (MITX) as the best “Interactive/Online Business” applica-
tion at its annual awards ceremony. It was also recognized with an international innovation
award by Trade Show Executive magazine in June, and Event Marketer magazine named
the Kaon v-OSK one of the “Top 10 technologies that are changing event marketing.”

It is now possible to have the “ideal” product experience at every tradeshow and sales
opportunity, big or small. Kaon’s innovations in technology development have made pos-
sible the use of virtual product models to deliver a compelling and engaging interactive
customer experience at any event venue. The resulting experience delivers a persuasive
and compelling product and company message—a necessity when working with such
complex products—in a manner that is easy to remember and relevant for each customer.
Because the need to ship every product is eliminated, tradeshow costs have been dramati-
cally reduced, as have the costs of attending incremental shows not previously accessible
to the marketing organization.

In short, more scientific instrument and medical devices are available, to more people, at
more venues, in a more compelling environment, and at lower costs.

For more information on how the Kaon v-OSK will bring your products to
life, call 978-823-0111 or “experience” it at www.kaon.com.

Visit us online at www.kaon.com or call 978.823.0111

I N T E R A C T I V E