Strategic Marketing
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Strategic Marketing at Cisco by Dean Eyers at SVPMA Monthly Event April 2008

Strategic Marketing at Cisco by Dean Eyers at SVPMA Monthly Event April 2008

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Strategic Marketing Presentation Transcript

  • 1. Strategic Marketing at Cisco Dean Eyers Senior Director - Strategic Marketing SVPMA - April 2nd 2008Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1
  • 2. Agenda Who? Strategic Marketing @ Cisco Customer & Custom Research Market and Competitive A Bigger PicturePresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 2
  • 3. My Background Dataquest Europe – Inquiry Desk – Mobile Analyst – European Telecoms Director Gartner – GVP Communications & Verticals Research – Technology Vendors - Product Manager Cisco – Competitive Leadership Team – Strategic Marketing - Market & Competitive IntelligencePresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 3
  • 4. Product Management/Marketing Product Manager ”…ultimately responsible for product’s success or failure” ”…discover a product that is useful, usable and feasible” Product Marketing ” messaging & positioning, pricing, promotions, customer acquisition, influencer marketing, sales & channel education” …Must have ”knowledge of the user, the technology, the domain and the market”Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 4
  • 5. OK, but… Observations from Gartner & Cisco That’s a lot of Knowledge! Products don’t exist in a vaccuum Product Managers don’t run LOBs… …but they do have a key contribution beyond their direct responsibilities ”Together we are stronger than we can ever be apart”Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 5
  • 6. Company VisionPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 6
  • 7. Customer Focus—Market Segments Commercial Service Provider Enterprise ConsumerPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 7
  • 8. STRATEGY VISION Market Transitions… Customer Driven Innovation… Build / Buy / Partner Network Changes Way We Collaborate Work / Live / Play / Learn Technology and Business Architecture Network Becomes Cross Functional Teamwork / the Platform… IIN Prioritization All Forms Communication / IT Into Network EXECUTION #1 Product Leadership Enabling New… Business Models Lead Layers 1-7 Convergence… Productivity Leader In All Customer Segments Entertainment Quad Play Everywhere… UC Leader in Collaboration / Web 2.0Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 8
  • 9. Insights Network Insights Insights Characteristics ofExtends Externally Collaboration: TheA Strong Network Network Customers Analysts Business Councils Finance BD CMO WW Field Ops Ubiquitous, Open, CMO Segment Linksys Solutions Marketing Marketing Fast, Responsive, Collaborative Theater BU Product Planning and Ops Multiple Forms of Sharing, Strategic Marketing Management Scientific Atlanta Joint Work, Creates Acuity, Theater IBSGPartners BI, MI Teams Adaptable, IT Enabled EMTG WebX CA Strategic WW Channels Marketing Allliances Universities Think Tanks ConsultantsPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 9
  • 10. Agenda Who? Strategic Marketing @ Cisco Customer & Custom Research Market and Competitive A Bigger PicturePresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 10
  • 11. Strategic Marketing: Vision and Mission Vision: Mission: Changing the Way We Plan, Deliver Unique Insight About Target, Compete and Execute Markets, Customers and Competitors Which Drives Positive Impact to Cisco, Its Customers and PartnersPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 11
  • 12. Positioning and Focus Strategy Focus Corporate and CMO Vision/ Segment Strategy Strategy Product Positioning Brand (CDO 4Ps) and Shape and AnalysisNon-CMO Shape Support CMO Client Support Cisco SMO Client Target Cisco Focus Overall Focus Marketing Smart Market Mix Selling (Sales) Optimization Execution Focus 12Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential
  • 13. Strategic Marketing Capabilities Capabilities Coverage Custom Research Global Market View (GMV) Solution/ Technology Market Analysis Enterprise Integrated Secondary Research Market Service View Provider Competitive Intelligence Commercial Database Analysis Customer Consumer Database Strategy Intelligence Data Quality/ Standards/ReportingPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 13
  • 14. Tools & Resources Competitive Portal Wikis Competitive Research Portal Dashboard Global Market View (GMV)Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 14
  • 15. Strategic Marketing Evolution Data Analysis Insight and Impact Core FocusPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 15
  • 16. Agenda Who? Strategic Marketing @ Cisco Customer & Custom Research Market and Competitive A Bigger PicturePresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 16
  • 17. Customer IntelligencePresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 17
  • 18. Role of Customer/Business Intelligence • Delivers incremental value derived from data-driven models applied to marketing programs • Provides insights and directions for market planning and execution • Ensures customer data quality for marketing execution and reporting Applied cluster analyses 9 10 11 12 Recent but Not Frequent Overall Low Spending Annual High Overall Spending Multi-Year Overall Low Spending with No Wireless Semi-Annual Overall High Spending and Revenue generating models and No UC Size Share: X% and UC No UC $F07 Share: Y% Size Share: X% Size Share: X% Size Share: X% $F07 Share: Y% $F07 Share: Y% $F07 Share: Y% 5 6 7 8 Large Quarterly Very High Semi Very Low Overall Annual Overall Very High Quarterly Spending Routing Spending Overall Spending Only Spending and No Size Share: X% UC Size Share: X% $F07 Share: Y% Size Share: X% $F07 Share:Y% $F07 Share: Y% Size Share: X% $F07 Share:Y% 1 2 3 4 Annual Overall High Extremely High Annual Moderate Multi-Year Very Low Overall Spending Service Only Spending but Very Low Overall Semi- UC and Wireless Annual Spending but with No Size Share: X% Wireless and UC $F07 Share: Y% Size Share: X% Size Share: X% $F07 Share:Y% $F07 Share: Y% Size Share: X% $F07 Share:Y% Data Quality Management US China UK Russia Italy Ind ia BrazilPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 18
  • 19. Wireless Propensity Models Challenge Identify customers with high propensity to up sell or cross sell wireless technology in the next two quarters. Action Developed Propensity to Up Sell or Cross Sell Wireless statistical model. Deployed probabilities/scores. Results Purchase Rate Increased 2.4 Times! Deal Size Increased 3.4 Times! Generated $XXM in Additional Bookings!Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 19
  • 20. Custom ResearchPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 20
  • 21. SMO Custom Market Research Capabilities Brand Research Brand Research Product Research Product Research –– Identity Research (Naming, Identity Research (Naming, –– Concept Testing Concept Testing Audio, Logo) Audio, Logo) –– Usage Usage –– Positioning Positioning –– Product Positioning Product Positioning –– Brand Health, Brand Brand Health, Brand Image, Brand Stretch –– Price/Feature Optimization Price/Feature Optimization Image, Brand Stretch –– Brand Choice Drivers –– Price Elasticity Price Elasticity Brand Choice Drivers –– Industrial Design Industrial Design Communications Research Communications Research –– Messaging Messaging Targeting Targeting –– Advertising (All media) Advertising (All media) –– Market Segmentation Market Segmentation Ideation –– Psychographics Psychographics Ideation –– Creative/Product Concept –– Buying Behavior Buying Behavior Creative/Product Concept Exploration Exploration Other Capabilities Other Capabilities Channel Research Channel Research –– ZMET (metaphor ZMET (metaphor –– Reseller Segmentation Reseller Segmentation elicitation) elicitation) –– Channel market landscape Channel market landscape –– Ethnography EthnographyPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 21
  • 22. Which is the preferred consumer routerdesign? (Europe) Preferred Neutral Negative “solid” “chunky” “powerful” “kitchen scales” “old-fashioned” “80’s hi-fi” “tidy” “sleek” “futuristic” “iPod-like” “modern” “why does it have a handle?” “toilet brush” “fun” “sophisticated” “bulky” “clever” “retro” “alarm clock” “ugly” “cheap-looking” “compact” “too much like old modems” “might tip over”Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 22
  • 23. Price Elasticity Findings The price-demand relationship for products in the AP space is not linear. Interactions with other products and price points. Probable “uncertainty” among many people about the relationship between some key features and price. Typical plot (below) shows that when products are priced at points that are not close to competitive price points or are otherwise differentiated (e.g., lowest price), share tends to be higher. Price v. Share All Products 16.0 14.0 12.0 Linksys WAP55AG 10.0 3Com OCG Share 8.0 Cisco AP1121G 6.0 Cisco AP1231G 4.0 2.0 0.0 $0 $100 $200 $300 $400 $500 $600 $700 $800 All RespondentsPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 23
  • 24. Agenda Who? Strategic Marketing @ Cisco Customer & Custom Research Market and Competitive A Bigger PicturePresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 24
  • 25. Market & Competitive Capabilities Capabilities Coverage Market Assessment Market Sizing Competitive Deal Support Defining Addressable Markets War Room Competitor Review Market Pricing Analysis Competitor Messaging Analysis Competitive Solution Reviews Market Analysis Competitor Technology Reviews Competitor Planning Market / Competitor Threat Assessment Competitive Market Modelling Competitive Analysis Quarterly Market Review Annual Market Review Competitive / Market Training Who, What , How & PlaybooksPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 25
  • 26. Market IntelligencePresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 26
  • 27. Global Market View model Addressed by Technology by Theatre (Phase 1) Addressed by Technology by Country + by Vertical by Size Segment (Phase 2): Inputs by Vertical by Company Size: Industry tri s/ un tre es Sales Ger. Co hea Employment Investment Can. 1000+ T (Fixed Cap. China Size Class Formation) Etc. 250-299 Prod. Categories Routing Industry Cisco 20-249 Value-Add Addressed Bookings Switching By Vertical 1-19 by tech. by theatre IPC External Etc. View Comm. Spend. Fin. Gov. Man. Edu. Etc. Verticals Input D&B Sales Data IT SpendPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 27
  • 28. Global market view Top level informationPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 28
  • 29. Global Market View (GMV) ForecastsFY07-11 CAGR Addressed technologies 35% Adjacent technologies Wireless 30% ANS Wireless 25% 20% IPTV Security 15% Security Routing Storage Switching 10% Networking Optical Cable 5% Optical UC UC 0% 0 5 10 15 20 25 30 US$B Source: Cisco Global Market View, October 2007Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 29
  • 30. Competitive IntelligencePresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 30
  • 31. Competitive Leadership PortalPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 31
  • 32. Information by CompetitorPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 32
  • 33. Information by TechnologyPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 33
  • 34. Competitive Dashboard Tool Click for technology market competitive landscape, facts and expert opinionsPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 34
  • 35. Find Information by Architecture Competitive Dashboard Tool Score and Comments on architecture components, ability to compare to “best of breed” solutionPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 35
  • 36. Enabling a Web 2.0 approachPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 36
  • 37. War Room Analysis of Front-Line Competitive PressuresPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 37
  • 38. Source of Competitive and Market Insight Annual Competitive Market Intelligence Report Forecasting per technology with implications, drivers, competitive inflection points • Landscape Trends Drivers 07-09 • Commoditization • 5 Force Analysis / Addressable • Tech Adoption Life Cycle 07 / Tech Adoption Market Life Cycle 09 • Channel & Network Size Aug 07 / • Where will the threats Come From Network Size 09 • Top 3 Competitors Today / Tomorrow et Quarterly Challenges and Implications preadshe q -CMIR et et et preadshe preadshe preadshe q -CMIR q -CMIR q -CMIR Dell’Oro Solution Numbers CQ Rev, Units And ASP Trends Master S Master S Master S Master S CQ Theatre Performance Competitive Landscape Recent 3rd Party Analyst Research (If applicable) http://wwwin.cisco.com/marketing/mi/mktshare/Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 38
  • 39. Competitive Categories Reflect Evolving Market Demands and Cisco Response IT Arbiters Network Solutions Network ProductsPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 39
  • 40. Agenda Who? Strategic Marketing @ Cisco Customer & Custom Research Market and Competitive A Bigger PicturePresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 40
  • 41. SMO Capabilities Tactical ? Strategic Valuable Insights Consulting Market/Segment Predictive Custom Experience Expertise Data Mining Research Technology/ Opportunity Syndicated and Competitive Solutions Analysis and Proprietary Analysis Expertise Forecasting Market DataPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 41
  • 42. SMO Capabilities Best options in the s/w business? Tactical Strategic Valuable Insights Consulting Market/Segment Predictive Custom Experience Expertise Data Mining Research Technology/ Opportunity Syndicated and Competitive Solutions Analysis and Proprietary Analysis Expertise Forecasting Market DataPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 42
  • 43. SMO Capabilities What are the under- served opportunities we can address to increase revenues? How Do We Compete Customers Features/ Accurately Best Options Against Juniper In I Should Price For Forecast in the S/W Prioritize? Optimization? for China? Business? North America? Tactical Strategic Valuable Insights Consulting Market/Segment Predictive Custom Experience Expertise Data Mining Research Technology/ Opportunity Syndicated and Competitive Solutions Analysis and Proprietary Analysis Expertise Forecasting Market DataPresentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 43
  • 44. Looking at the Big Picture helps to identify what sort of animal you are dealing with…Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 44
  • 45. Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 45