Strategic
Marketing
at Cisco
Dean Eyers
Senior Director - Strategic Marketing
SVPMA - April 2nd 2008
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© 2008 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
1
Agenda
Who?
Strategic Marketing @ Cisco
Customer & Custom Research
Market and Competitive
A Bigger Picture
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© 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
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© 2008 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
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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”
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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”
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Company Vision
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Customer Focus—Market Segments
Commercial
Service Provider
Enterprise
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Consumer
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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
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8
Collaboration:
Characteristics
Insights
Network
The
ofExtends
AInsights
StrongExternally
Insights
Network Network
Customers
Analysts
Business
Councils
BD
Finance
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
WebX
Teams
WW Field
Ops
Theater
Planning
and Ops
Partners
WW
Channels
CA
Marketing
Strategic
Allliances
Universities
Think Tanks
Consultants
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© 2008 Cisco Systems, Inc. All rights reserved.
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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
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11
Positioning and Focus
Strategy
Focus
Corporate and
Segment
Strategy
Non-CMO
Client
Focus
CMO Vision/
Strategy
Brand
Product Positioning
(CDO
4Ps) and
Shape
Support Cisco SMO
Target
Overall
Smart
Selling (Sales)
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© 2008 Cisco Systems, Inc. All rights reserved.
CMO
Client
Focus
Market Mix
Optimization
Execution
Focus
Cisco Confidential
Shape and
Analysis
Support
Cisco
Marketing
12
Strategic Marketing Capabilities
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
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Tools & Resources
Competitive Portal
Wikis
Research Portal
Competitive
Dashboard
Global Market View (GMV)
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Strategic Marketing Evolution
Data
Analysis
Insight and
Impact
Core Focus
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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
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© 2008 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
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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
China
UK
Russia
Italy
Ind
ia
Brazil
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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!
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Custom Research
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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 Concept
Exploration
 Channel Research
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Reseller Segmentation
–
Channel market landscape
Cisco Confidential
Concept Testing
Usage
Product Positioning
Price/Feature Optimization
Price Elasticity
Industrial Design
 Targeting
–
–
–
Market Segmentation
Psychographics
Buying Behavior
 Other Capabilities
–
–
© 2008 Cisco Systems, Inc. All rights reserved.
–
–
–
–
–
–
–
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”
“iPod-like”
“modern”
“why does it have a handle?”
“fun”
“clever”
“cheap-looking”
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“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.
Price v. Share All Products
16.0
Share
14.0
12.0
10.0 3Com OCG
8.0
6.0
4.0
2.0
0.0
$0
$100
Linksys WAP55AG
Cisco AP1121G
Cisco AP1231G
$200
$300
$400
$500
$600
$700
$800
All Respondents
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© 2008 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
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Agenda
Who?
Strategic Marketing @ Cisco
Customer & Custom Research
Market and Competitive
A Bigger Picture
Presentation_ID
© 2008 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
24
Market & Competitive Capabilities
Capabilities
Coverage
War Room
Market Analysis
Competitive Analysis
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Market Assessment
Market Sizing
Competitive Deal Support
Defining Addressable Markets
Competitor Review
Market Pricing Analysis
Competitor Messaging Analysis
Competitive Solution Reviews
Competitor Technology Reviews
Competitor Planning
Market / Competitor Threat Assessment
Competitive Market Modelling
Quarterly Market Review
Annual Market Review
Competitive / Market Training
Who, What , How & Playbooks
25
Market Intelligence
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Global Market View model
Addressed by Technology by Theatre (Phase 1)
+
Inputs by Vertical by Company Size:
Addressed by Technology by Country
by Vertical by Size Segment (Phase 2):
Industry
Sales
Investment
(Fixed Cap.
Formation)
External
View
By Vertical
Comm.
Spend.
Etc.
Prod. Categories
Addressed
by tech.
by theatre
Cisco
Bookings
1000+
250-299
Routing
20-249
Size Class
Employment
Industry
Value-Add
Ger.
Can.
China
Switching
1-19
IPC
Etc.
Fin. Gov. Man. Edu. Etc.
Verticals
Input
Sales
IT
Spend
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D&B
Data
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Global Market View (GMV) Forecasts
FY07-11
CAGR
35%
Addressed technologies
Adjacent technologies
Wireless
30%
ANS
Wireless
25%
IPTV
20%
Security
15%
Routing
Security
Storage
Networking
10%
Switching
Optical
Cable
5%
Optical
U
C
UC
0%
0
5
10
15
20
25
30
US$B
Source: Cisco Global Market View, October 2007
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Competitive Intelligence
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Competitive Leadership Portal
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Information by Competitor
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Information by Technology
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Competitive Dashboard Tool
Click for
technology
market
competitive
landscape,
facts and
expert opinions
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Find Information by Architecture
Competitive Dashboard Tool
Score and Comments
on architecture components,
ability to compare to
“best of breed” solution
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War Room Analysis of Front-Line Competitive Pressures
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Competitive Categories Reflect Evolving
Market Demands and Cisco Response
IT
Arbiters
Network
Solutions
Network
Products
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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
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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
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42
SMO Capabilities
How Do We Compete
Against Juniper In
North America?
Customers
I Should
Prioritize?
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
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43
Looking at the Big Picture helps to identify
what sort of animal you are dealing with…
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