Glen Mella, President and COO of Control4, presented the inaugural Utah Product Management Association meeting. This is the keynote presentation.

1. Glen Mella, President/COO - Control4
© December, 2008 - Control4

2. From Chips to Chips… A journey

3. So far…
Undergrad – BYU, MBA – Northwestern
CPG brand management – Frito-Lay (PepsiCo), Dial
High-tech marketing – WordPerfect, Novell, TenFold
CEO – Found, Inc. WordPerfect®
SVP marketing & sales – SunCom/AT&T Novell ®
Pres./COO – Control4
Personal passion: The intersection of consumer
products and high tech
3

4. –
What is “Marketing” Anyway?
Mar-ket-ing [mahr-ki-ting] (-noun)
1. the act of buying or selling in a market.
2. the total of activities involved in the transfer of goods from the
producer or seller to the consumer or buyer, including advertising,
shipping, storing, and selling.
4

5. How does your company go to market?
Identifying unmet consumer wants/needs
Delivering goods & services to meet those needs
Making what you have relevant to others
Winning the positioning battle in a crazy, cluttered world
Building loyalty and repeat business
Bonding with customers
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6. Sales vs. Marketing
Sales - build revenues over night
Marketing - build brands over time
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7. What’s in a Name?
Inside marketing
Category management
Chief bottle washer
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8. Who asks these questions?
Inside Marketing
What to build?
Who is the target?
Why will they care?
How can we solve their pain?
Outbound Marketing
How do we sell?
What is our position?
How do we build awareness, preference & demand?
Where do we find qualified prospects?
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9. Control4 Product Development
Process
T-3 Product Description
T-2 Feasibility
T-1 Staffing and Scheduling
T0 Architecture and Design
T1 Prototype/Development Phase
T2 Alpha Phase
T3 Beta (HW)/Internal Beta (SW)
T4 Release to Manufacturing (HW)/External Beta (SW)
T5 Pilot (HW)/Release Candidate (SW)
T6 First Customer Ship (PIT)
T7 Available in Shipping Quantities (PIT)
T8 End of Life
99

10. Brand Management Model
R&D
Manufacturing
Finance Brand Manager Operations
Sales Purchasing
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11. Consumer Marketing
Trade push - build sales overnight
– Trade advertising
– Short-term focus
Consumer pull - build brand over time
– Brand awareness and preference
– Build and sustain franchise
– Long-term focus
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12. Consumer Marketers Measure
Everything
Share of Voice
Share of Shelf
Share of Wallet
Share of Pantry
Share of Stomach
Share of Mind
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13. Broad-Appeal Tactics for a Mass
Audience... then and now
Broadcast advertising – Network, cable, satellite TV & Radio
Print, outdoor, and high-visibility offline efforts
Ubiquitous branding – Used to be Coke, Nike, GE, Microsoft
Now - Google, Apple, Starbucks, ebay, Facebook
Targeting every household
– Direct response, Web 1.0
– Frequent rewards programs
Tactics and tools have changed dramatically
– SEO, SEM
– Social media
– Blogosphere
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– Real one-to-one marketing

14. High Tech Marketing Audiences
A more complex model
Trade – build sales overnight
Consumer – high tech adoption curve
– Purchaser vs. influencer vs. user
Analysts – evangelize and critique
Press – keep pulse on market
Industry pundits – influencers
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15. The IT Customer
End users
IS management
– Network managers
– Dept.-level IS
Business managers
– Understand process vs.
technology
Executive management
– More savvy than ever
before
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16. Consumer vs. Business-To-Business
Marketing
B-2-C B-2-B
Low purchase price High investment
Often spontaneous purchase Usually a considered purchase
Individual decision-maker Group hierarchy decision makers
Low loyalty/high switching High loyalty and service component
Shot-gun approach Rifle approach
Low cost-per-lead High cost-per-lead
Proven tactics and metrics Often fly by seat of pants
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17. Different Metrics than Consumer
Longer evaluation and sales cycles
Higher cost to identify, educate, motivate, and qualify
Lower hit rate for broad-reach marketing tactics
Personal selling makes a difference
– Conferences, events, executive calls, direct
communications
Harder to quantify, but this shouldn’t be an excuse!
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18. © 2007 Control4

19. Who’s in control, anyway?...

20. Just Your Average Day at the Beach

21. Just Your Average Day at the Beach

22. Okay, Not Really an Average Day…

25. Who’s freaked out by the economy?

26. Post-WW II Recessions
Recession Duration Jobless Rate
Nov’48-Oct’49 11 months 7.9%
Jul’53-May’54 10 months 6.1%
Aug’57-Apr’58 8 months 7.5%
Apr’60-Feb’61 10 months 7.1%
Dec’69-Nov’70 11 months 6.1%
Nov’73-Mar’75 16 months 9.0%
Jan’80-Jul’80 7 months 7.8%
Jul’81-Nov’82 16 months 10.8%
Jul’90-Mar’91 9 months 6.9%
Mar’01-Oct’01 8 months 5.4%
Dec’07-present 15 months so far 8.1%

27. Own-er-ship
Think, talk and act as if you OWN your business
– Your functional area
– Key projects, tasks and deliverables
– Significant individual milestone (“My product, my store,
my team”)
OWN challenging issues or customer problems
through to resolution
– Don’t let go until resolved
All shareholders are literal OWNERS of the company

28. Key Leadership Roles
Managing Culture and morale
Defining the Vision and Strategic Direction
Ensuring adequate working capital
Building the team
Generating revenue!
Achieving long-term profitable growth
Correcting the course
Resolving conflict
Modeling aspirational behavior

29. Managing Culture and Morale
The Control4 Values
Teamwork
Customer Focus
Passion for Excellence
Integrity
Communication
Agility
Commitment

30. Defining Vision and Strategic Direction
We will be the world’s leading platform
for the digital home, by providing
home automation solutions that are
affordable, the easiest to use, and the
easiest to install.

31. Building the team
A simple formula…
Look to hire people who are:
Bright
Motivated
Nice

32. Career Success Drivers
Results orientation
– Driven and accountable
Passion for metrics
Mature ambassador
Strong business acumen
– Understands top AND bottom line implications
Willing to take and stand and defend it, but…
– Always learning and teachable
Best predictor of future behavior is past performance
Leaders build succession plans and teams

33. Day in the Life
Determine the key indicators and measure them
Improve focus and minimize distractions
– 28% of knowledge worker productivity is lost daily!
Get out of your silos and critique one another
Maintain consistency… predict and deliver
See things as they ARE and understand cause and
effect
React quickly when things aren’t tracking well
– Trust your instincts and have a bias for rapid response
If private, role play being a public company

34. Resolving Interpersonal Conflict
Demand and expect perfect candor!
– Sometimes challenging in UT culture
Role model appropriate behavior
– Remember the Golden Rule
Don’t be a hypocrite; we all make mistakes
Seek win-win resolutions

35. Beware of Common Snares
“Victim” mentality
– Who are “they” anyway?
Thinking like sub-contractors
– “Not my problem.”
– “Someone will come along after me anyway.”
Talking vs. Walking
Short-term focus
– Remember, you have to lap yourself next year

36. © 2007 Control4

38. ! !
New Construction Existing Multi-Dwelling Units

39. Control4 Delivers Everyday Easy!

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CONFIDENTIAL

41. Global distribution
33 countries and just getting started
41
CONFIDENTIAL

42. Custom A/V dealers love Control4!
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43. Rave Reviews and Press Coverage
• New York Times
• Wired
• Financial Times
• Business Week
• CE Vision
• Network World
• CE Pro
• RF Design
• LA Times
• Enterprise IT
Planet
• Tech Living
• Wireless News
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45. Numerous Industry Awards
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46. The Operating System of the Home
It’s good to save energy.
Access your entire music Life’s better when Especially your own.
collection from anywhere in the
house. And we do mean anywhere. everything works together tm
Heating & Air
Conditioning
Home
Security
Theater
Somebody left the lights on and nobody
Control your TV. Your music. wants to get up. So don’t.
Your lights. Your kids. Okay,
not the kids. Plumbing Control4 Lighting
Multi-
Access
room
Control
Audio
… and
More
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CONFIDENTIAL

47. Some of Control4’s U.S. Retail Partners
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49. Take Ownership for Your Career
Be cautious of short cuts
– Build your set of knowledge and skills over time
Do what you love; love what you do!
Most of you have plenty of time
Career development is 90% YOUR responsibility
Just like business - plan, execute, and adjust

50. Be Empowered, But Keep Things in
Perspective
Put first things first
Prioritize and schedule accordingly
– Beware of burn out
– Can you run at this pace for the next 5 years?
Is your career a means or an end?
Lowes – Let’s Build Something Together!

51. Still My Biggest Management Challenge