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Solution Marketing Lessons from the Apple iPad - Steve Robins at ProductCamp Boston, April 2011


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So you think that the Apple iPad is successful because it’s cheap and easy to use? It turns out that there’s much more behind the success of the Apple iPad. During this session, we’ll talk about how the iPad is at the center of a large customer-oriented solution. You’ll also learn how this solution is driving the iPad’s success and the key lessons you can use to drive successful solutions in your organization.

Steve Robins has been helping companies to transform their marketing focus from technology platforms to customer-oriented solutions — for over 10 years as a senior marketer, strategic consultant, and tech analyst. Steve is also the founder of the top-rated Steve is director of product marketing at FirstBest Systems, the leading provider of insurance underwriting solutions. Previously, Steve founded the strategic marketing consultancy, Solution Marketing Strategies. Steve has also served as director of industry and solutions marketing for EMC Documentum, VP of product marketing and VP of partner development at KANA Software, and senior analyst for Web applications at The Yankee Group.

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Solution Marketing Lessons from the Apple iPad - Steve Robins at ProductCamp Boston, April 2011

  1. 1. Solution Marketing Lessons From the Apple iPad Steve Robins April 2, 2011© 2011 The Solution Marketing Blog
  2. 2. Steve Robins  10+ years in solution marketing – Expertise in product solution and industry marketing product, – Experience: FirstBest Systems, Solution Marketing Strategies, EMC Documentum, KANA, The Yankee Group  Founder, The Solution Marketing Blog, Top-rated solution marketing blog  Inbound Marketing Certified Professional© 2011 p2
  3. 3. Apple iPad… Is This a…. iPad…  Tablet computer?  Product?  A t? Art?  PC?  Post-PC device?  Media platform? Tablet Device Apple iPad© 2011 p3
  4. 4. Apple iPad… Is This a…. iPad… Content Consumption p Solution Tablet Device Apple iPad© 2011 p4
  5. 5. Apple iPad… iPad… Actually, It’s a Content Consumption Solution… Pictures Movies Tablet Device Music Apps Apple iPad Email, Games, Productivity, more© 2011 p5
  6. 6. …With Integrated Tools to Obtain Content Music Apps, iTunes Mag. Subscriptions AppStore Tablet Device Bookstore Browser Apple iPad iBookstore Safari© 2011 p6
  7. 7. Why It Matters – Putting It in Perspective Overall PC sales dropping from 15% growth to 10.5% because o tab ets of tablets. Consumer laptops hit most. (Gartner 2011) Apple share will drop from 86% today to 75% as new products enter the market that Apple created© 2011 p7
  8. 8. Apple iPhone/iPod/iPad iPhone/iPod/iPad Quarterly Shipments 2011 (Calendar Qtrs) Qtrs) 50 45 40 35 ped Million of Units Shipp 30 25 iPhone iPod 20 Ipad ns 15 10 5 0 Q1 Q2 Q3 Q4© 2011 p8
  9. 9. Why It Matters The Chasm Main Street rsRelative % of Customer The Solution Opportunity The Tornado Tablets End of Life Early Lif E l Life Bowling Alley Innovators Early Adopters Early Majority/ Late Majority Laggards Time Technology Visionaries Pragmatists Conservatives Skeptics Enthusiasts Customers want technology Customers want solutions and convenience and performance Sources: E.M. Rogers, G. Moore© 2011 p9
  10. 10. What is a Solution Anyways? so·lu·tion noun sə-ˈlü-shən a: an action or process of solving a problem b: an answer to a problem© 2011 p10
  11. 11. Why Solutions? Customers want t C t t to solve problems or meet needs. They do not want to buy p products.© 2011 p11
  12. 12. The Content Consumption Problem/Manifesto  I want lots of content  I want different types of content  I d ’t want to work hard to get that don’t tt kh dt t th t content  I don’t want to use different devices for that content  I want it to be easy© 2011 p12
  13. 13. What is Solution Marketing? so·lu·tion mar·ket·ing noun sə-ˈlü-shənˈmär-kə-tiŋ The process of defining defining, educating, and providing access to complete and integrated solutions l ti that deliver value by helping customers to solve their problems.© 2011 p13
  14. 14. Solution Strategy S l ti St t© 2011 p14
  15. 15. Complete Solution to the Customer’s Problem Solution People Technology/ Services/ Product(s)s Process Support Content/ Information© 2011 p15
  16. 16. Solution Complete Solution to the Customer’s Problem People • User interfaces Technology gy • Training g OEM & Partners • Support • Hardware and People • Best practices infrastructure • Domain expertise • Applications • Complementary C l t technologies Process • Integrations • Process optimization • Custom coding Technology/ Services/ • Integrated experiences Product(s)s Process • ROI studies Support Reengineering Content/ Information • Data Content/ Services • Content, documents, • Communications services, hosting Information • Support images • External data sources • Strategy • Data security, data • Project management policies li i • Risk management • Consumer /Enterprise • Custom coding • Enterprise • Integration services© 2011 p16
  17. 17. The Apple iPad Solution  Ease of use  Integrated experience  C i di l Crisp display  Not designed for one People Accessories particular user Tablet Maps Technology/ Services/ Email Process Product(s)s Support Integrated Stores Twitter Apps/Mags 65k apps Content/ Music Store Music Information Books Photos Videos YouTube (free) Browser Books© 2011 p17
  18. 18. Solution Scorecard Dimension Rating Comments Completeness p • People/users, fit to needs 4 Exceptional experience but users not ID’d • Process 4 Integrated; multiple stores may be confusing • Content/Information 5 Full breadth • Technology: Hardware and software 5 Excellent breadth and quality • Services & support 4 Mobile – cell, WiFi Strategy • Differentiated offering – unique in market 5 Unique • Partners: includes tech, apps, and content pp 3 Includes many techs – lacks Adobe Flash • Partner-friendly business model (win-win) 2 Evolving Low points: subscriptions, friction over book prices Total 32/40© 2011 p18
  19. 19. Solution Marketing Strategy S l ti M k ti St t© 2011 p19
  20. 20. Traditional Marketing – 4 Ps Promotion Product P Price P The 4 P’s P Place PDerived from SIVA model, Chekitan & Dev © 2011 p20
  21. 21. Solution Marketing Strategy The 4 P’s - updated “Where can I learn more Education about it?” “How can I solve Solution Value “What is the my problem?” SEVA benefit and total Solution Marketing cost of this solution? l ti ? Access “Where can I find it? Where it?” Solution Marketing answers 4 customer questionsDerived from SIVA model, Dev & Schultz © 2011 p21
  22. 22. Solution Marketing Education Education – Message Customer: “Where can I learn more about it?” Where it?  Message – It’s About Relevance –Speak the customer’s language –Business benefits, not technical features  Match the message to the reality  Create a dialog with the market© 2011 p22
  23. 23. Value Value = Benefit - TCO Value- Value-Based Pricing Assume that vendor charges fair price for features provided Business Benefit ($) Lost revenue Customer Benefit Benefit Unneeded features Customer Benefit Benefit Price B Customer Customer Benefit Benefit A B C D High Value Fair Value Poor Value Fair Value Lost software Price matches Unneeded Price matches revenue benefit features benefit Solution use-case drives benefit and value use case© 2011 p23
  24. 24. Solution Marketing Access Access Customer: “Where can I find it?” Where it?  Customer-friendly sales: y – Where, when how the customer wants to buy  iPad: access to iPad device as well as apps, content© 2011 p24
  25. 25. Solution Marketing Scorecard Dimension Rating Comments Education and Engagement • Relevant, targeted message 5 User-speak, not tech-speak • Message matches reality 5 User experience is consistent with reality • Company engages in dialog with the 4 • Apple speaks with its actions • Apple SVP Prod Marketing ranked as top market social CMO • Minimal social media • Heavy on branding, experience •U Uses right channels t reach th audience i ht h l to h the di 5 • Message reaches market broadly Value • Customers willing to pay solution price 5 • Does not include low-value features 4 Apple is leader in spare design • Does include features customers want 4.5 • Price is profitable to the vendor p 5© 2011 p25
  26. 26. Solution Marketing Scorecard Dimension Rating Comments Access • Product available through channels 3 convenient to customers • Solution components available through p g 5 convenient channels • Sustainable business model for partners 3 Tradeoff: volume for lower profit • Partners offer quality products 5 App certification program Solution Marketing 53.5/ 60 Solution 32/40 Total 85.5/ 100© 2011 p26
  27. 27. Apple iPad - Solution Marketing Lessons Solution approach can revive weak market Simple device Integrated user experience g p Must be win-win for channel© 2011 p27
  28. 28. Thank You Steve Robins LinkedIn com/in/SteveRobins1 Founder Solution Marketing Blog© 2011 p28