Strategic Marketing at Cisco Dean Eyers Senior Director

Strategic Marketing at Cisco Dean Eyers Senior Director - Strategic Marketing SVPMA - April 2 nd 2008 Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1

Agenda Who? Strategic Marketing @ Cisco Customer & Custom Research Market and Competitive A Bigger Picture Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 2

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 Intelligence Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 3

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

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

Company Vision Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 6

Customer Focus—Market Segments Commercial Service Provider Enterprise Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Consumer Cisco Confidential 7

STRATEGY VISION § Market Transitions… Customer Driven § Network Changes Way We Work / Live / Play / Learn § Innovation… Build / Buy / Partner Collaborate § Technology and Business Architecture § Network Becomes the Platform… IIN § Cross Functional Teamwork / Prioritization § All Forms Communication / IT Into Network EXECUTION § #1 Product Leadership § Enabling New… Business Models Productivity Entertainment § Lead Layers 1 -7 Convergence… § Leader In All Customer Segments § Quad Play Everywhere… UC § Leader in Collaboration / Web 2. 0 Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 8

Collaboration: Characteristics Insights Network The of. Extends AInsights Strong. Externally Network Insights Network Customers Finance Analysts Business Councils CMO Solutions Marketing CMO Linksys Ubiquitous, Open, Segment Marketing Fast, Responsive, Collaborative BU Product Strategic Scientific Management Multiple Forms of Sharing, Marketing Atlanta Joint Work, Creates Acuity, Theater IBSG EMTG BI, MI Adaptable, IT Enabled Web. X Teams WW Field Ops Theater Planning and Ops Partners BD WW Channels CA Marketing Strategic Allliances Universities Think Tanks Consultants Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 9

Agenda Who? Strategic Marketing @ Cisco Customer & Custom Research Market and Competitive A Bigger Picture Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 10

Strategic Marketing: Vision and Mission Vision: Mission: Changing the Way We Plan, Target, Compete and Execute Deliver Unique Insight About Markets, Customers and Competitors Which Drives Positive Impact to Cisco, Its Customers and Partners Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 11

Positioning and Focus Strategy Focus Corporate and Segment Strategy Non-CMO Client Focus CMO Vision/ Strategy Brand Product Positioning (CDO 4 Ps) Shape and Support Cisco SMO Target Overall Smart Selling (Sales) Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential Shape and Analysis Support Cisco Marketing CMO Client Focus Market Mix Optimization Execution Focus 12

Strategic Marketing Capabilities Coverage Custom Research Solution/ Technology Global Market View (GMV) Market Analysis Secondary Research Integrated Market View Competitive Intelligence Enterprise Service Provider Commercial Database Analysis Database Strategy Customer Intelligence Consumer Data Quality/ Standards/Reporting Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 13

Tools & Resources Competitive Portal Wikis Research Portal Competitive Dashboard Global Market View (GMV) Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 14

Strategic Marketing Evolution Data Analysis Insight and Impact Core Focus Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 15

Agenda Who? Strategic Marketing @ Cisco Customer & Custom Research Market and Competitive A Bigger Picture Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 16

Customer Intelligence Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 17

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 Revenue generating models Data Quality Management US UK Russia Italy China Ind ia Brazil Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 18

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

Custom Research Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 20

SMO Custom Market Research Capabilities § Product Research § Brand Research – Identity Research (Naming, Audio, Logo) – Positioning – Brand Health, Brand Image, Brand Stretch – Brand Choice Drivers § Communications Research – Messaging – Advertising (All media) § Ideation – Creative/Product Exploration Concept – – – § Targeting – – – Reseller Segmentation – Channel market landscape © 2008 Cisco Systems, Inc. All rights reserved. Market Segmentation Psychographics Buying Behavior § Other Capabilities § Channel Research Presentation_ID Concept Testing Usage Product Positioning Price/Feature Optimization Price Elasticity Industrial Design Cisco Confidential – ZMET (metaphor elicitation) Ethnography 21

Which is the preferred consumer router design? (Europe) Preferred Neutral Negative “chunky” “kitchen scales” “ 80’s hi-fi” “solid” “powerful” “old-fashioned” “tidy” “sleek” “futuristic” “i. Pod-like” “modern” “why does it have a handle? ” “fun” “clever” “cheap-looking” Presentation_ID “retro” “compact” “might tip over” © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential “sophisticated” “alarm clock” “too much like old modems” “toilet brush” “bulky” “ugly” 22

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. Linksys WAP 55 AG 3 Com OCG Cisco AP 1121 G Cisco AP 1231 G All Respondents Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 23

Agenda Who? Strategic Marketing @ Cisco Customer & Custom Research Market and Competitive A Bigger Picture Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 24

Market & Competitive Capabilities Coverage War Room Market Analysis Competitive Analysis Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential Market Assessment Market Sizing Competitive Deal Support Defining Addressable Markets Competitor Review Market Pricing Analysis Competitor Messaging Analysis Competitive Solution Reviews Competitor Technology Reviews Competitor Planning Market / Competitor Threat Assessment Competitive Market Modelling Quarterly Market Review Annual Market Review Competitive / Market Training Who, What , How & Playbooks 25

Market Intelligence Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 26

Industry Cisco External Comm. Input D&B IT Bookings View Spend. Sales Data Spend By Vertical Global Market View model Investment Addressed by tech. by theatre 1000+ Etc. Prod. Categories Industry Value-Add (Fixed Cap. Formation) Ger. Can. China 250 -299 Routing 20 -249 Switching Size Class Employment Addressed by Technology by Country by Vertical by Size Segment (Phase 2): T Co hea un tre tri s/ es Addressed by Technology by Theatre (Phase 1) + Inputs by Vertical by Company Size: 1 -19 IPC Etc. Fin. Gov. Man. Edu. Etc. Verticals Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 27

Global Market View (GMV) Forecasts FY 07 -11 CAGR Addressed technologies Adjacent technologies ANS Wireless IPTV Security Storage Networking Routing Security Switching Optical Cable Optical UC UC US$B Source: Cisco Global Market View, October 2007 Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 29

Competitive Intelligence Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 30

Competitive Leadership Portal Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 31

Information by Competitor Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 32

Information by Technology Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 33

Competitive Dashboard Tool Click for technology market competitive landscape, facts and expert opinions Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 34

Find Information by Architecture Competitive Dashboard Tool Score and Comments on architecture components, ability to compare to “best of breed” solution Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 35

War Room Analysis of Front-Line Competitive Pressures Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 37

Competitive Categories Reflect Evolving Market Demands and Cisco Response IT Arbiters Network Solutions Network Products Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 39

Agenda Who? Strategic Marketing @ Cisco Customer & Custom Research Market and Competitive A Bigger Picture Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 40

SMO Capabilities ? Tactical Strategic Valuable Insights Consulting Experience Market/Segment Expertise Predictive Data Mining Custom Research Technology/ Solutions Expertise Competitive Analysis Opportunity Analysis and Forecasting Syndicated and Proprietary Market Data Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 41

SMO Capabilities Best options in the s/w business? Tactical Strategic Valuable Insights Consulting Experience Market/Segment Expertise Predictive Data Mining Custom Research Technology/ Solutions Expertise Competitive Analysis Opportunity Analysis and Forecasting Syndicated and Proprietary Market Data Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 42

SMO Capabilities How Do We Compete Customers I Should Against Juniper In Prioritize? North America? What are the underserved opportunities we can address to increase revenues? Features/ Price For Optimization? Accurately Forecast for China? Tactical Best Options in the S/W Business? Strategic Valuable Insights Consulting Experience Market/Segment Expertise Predictive Data Mining Custom Research Technology/ Solutions Expertise Competitive Analysis Opportunity Analysis and Forecasting Syndicated and Proprietary Market Data Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 43

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

Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 45