How to define and dominate
your billion dollar category Mark Organ, CEO @ Influitive @markorgan @influitive PLAY BY YOUR OWN RULES

TAKE A NEW ROAD

Company Category Cloud-based Marketing Automation
Advocate Marketing Founded Jan 2000 Oct 2010 Exit Nasdaq IPOORCL TBD Value $871M TBD -- $B

WHAT IS A
CATEGORY?

a transformational experience + driven
by disruptive forces MY DEFINITION OF A CATEGORY: For a distinct segment of the market, A revolutionary business model

Green-conscious, technophile early adopter car
enthusiasts All-electric drive with equivalent/superior performance to BMW 7-series/Benz S-class • Custom car ordering online, direct • Supercharging / battery switching stations • Continuous deployment of upgrades • Lithium-ion battery innovation • Cloud computing TESLA: Electric high-performance luxury cars 2010-2013

High-growth, cash-strapped B2B companies largely
in Bay Area Acquire and deploy good-enough CRM successfully in days instead of years • Monthly subscription by user • Continuous deployment of upgrades centrally for all customers Cloud / internet delivered software SALESFORCE.COM: Cloud CRM, 1999-2004

Process and lead-gen oriented (demand
gen) B2B marketers Automatically nurture prospects, guided by their behavior, until sales-ready • Monthly subscription, scaled by user • Continuous deployment of upgrades centrally for all customers • Cloud-delivered software • Automated filtering of phone and mail ELOQUA: Cloud marketing automation 2005- 2013

Advocate marketers and the advocates
they serve Advocate-centered, comprehensive and self-service experience • Monthly subscription, scaled by advocate activity • Continuous deployment of upgrades centrally for all customers Pervasive social web INFLUITIVE: Advocate marketing platform 2010-2???

WHY WOULD YOU WANT TO
BUILD A NEW CATEGORY?

Revenue growth (2004-2005) Note: Relative
Market Share is each company’s revenue divided by the market leader; the market leader’s revenue is divided by the 2nd place company’s revenue; Precise revenue not available for Upshot and Salesnet, figures represent approximate revenue and growth estimates Source: Gartner (http://www.gartner.com/newsroom/id/493005) -40% -20% 0% 20% 40% 60% 80% 100% 0 0.5 1 1.5 2 Salesforce.com Oracle (incl. PeopleSoft) SAP Siebel Amdocs Upshot Salesnet Relative market share Salesforce.com’s status as a category creator enabled rapid growth several years ago

-10% 0% 10% 20% 30%
40% 50% 60% 70% 0.00 0.20 0.40 0.60 0.80 1.00 1.20 Salesforce.com Oracle SAP Microsoft IBM SugarCRM Revenue growth (2011-2012) Note: Relative Market Share is each company’s revenue divided by the market leader; the market leader’s revenue is divided by the 2nd place company’s revenue. Source: Gartner (http://www.gartner.com/newsroom/id/2459015) Relative market share This led to a dominant market position today

US unit sales 2013 Source:
Business Insider (http://www.businessinsider.com/tesla-is-not-really-outselling-bmw-audi-2013-5) 0 50 100 150 200 250 300 350 Tesla Audi Cadillac Lexus BMW Mercedes-Benz Tesla currently has tiny share vs. all luxury vehicles – similar to salesforce.com’s broader CRM broader market in 2002

0 2 4 6 8
10 12 14 16 18 20 Porsche Panamera Audi A8 Lexus LS BMW 7- series MB S-class Telsa Model S BUT Tesla is now dominant in the space closer to its category of all-electric luxury high-performance sedans US unit sales 2013 Source: Business Insider (http://www.businessinsider.com/tesla-is-not-really-outselling-bmw-audi-2013-5)

$1,630K $35K $33K $10K $9K
$6K $0K $0K $200K $400K $600K $800K $1,000K $1,200K $1,400K $1,600K $1,800K Tesla BMW Group Daimler AG VW Ford GM * Fisker filed for chapter 11 protection in Nov 2013 Source: Yahoo! Finance, Corporate filings, Analyst reports; Market caps are USD & as at Oct 2014 Fisker* Tesla’s category creator status and rapid growth drive valuation multiplies far higher than other carmakers Market capitalization / global 2013 unit sales

$3.40 $5.60 $1.20 $0 $1
$2 $3 $4 $5 $6 Overall (20) Category Creators (10)Non-Category Creators (10) CNN/Fortune top 20 fastest growing companies (2010) Category creator premium Category creators enjoy nearly a 5X valuation premium on revenue growth! Incremental market cap per $1 of additional revenue Source: Cambridge Partners in HBR Blog, 09/2011

WHERE DO NEW CATEGORIES COME
FROM?

VS Category creators have missionary
zeal about their category vision, not just their company vision. MISSIONARY MERCENARY

THE 6 RULES OF CATEGORY
CREATOR GO-TO- MARKET

MARKET THE CATEGORY
1

Tesla Salesforce.com Software-as-a-Service Electric car
Source: http://www.google.com/trends/ 1

1 Tesla Salesforce.com Software-as-a-service Electric
car Period in which interest in the category tracks with interest in the category creator Source: http://www.google.com/trends/

1 Tesla Salesforce.com Software-as-a-service Electric
car Period in which interest in the category creator far outstrips interest in the category Source: http://www.google.com/trends/

1Do not call yourself the
leader in your category. That is the job for your advocates, not your marketing department. (NOT INFLUITIVE)

ELEVATE THE UNDER-SERVED MISSIONARY
2

Advocate Marketing: CREATE POWERFUL WORD
OF MOUTH 3

4 Influencer Marketing: LEVERAGE INFLUENCERS
TO RECOGNIZE THE CATEGORY

Community Marketing: ENABLE PRACTITIONERS TO
CO-OWN THE CATEGORY 5

Category Creator Biz Dev: INTEGRATED
PARTNERS  TRANSFORMATIONAL EXPERIENCE6

NEW CATEGORIES ARE BUILT ON
TOP OF DISRUPTIVE TECHNOLOGY BLOCKCHAIN

How to define and dominate
your billion dollar category Mark Organ, CEO @ Influitive @markorgan @influitive PLAY BY YOUR OWN RULES