Dean Eyers presents on strategic marketing at Cisco. The presentation covers who strategic marketing is at Cisco, their focus on customer and market research, analyzing markets and competitors, and how they provide a bigger picture view. It summarizes Cisco's strategic marketing capabilities including custom research, customer intelligence, market analysis, and competitive analysis.

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

2. 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

3. 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

4. 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

5. 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

6. Company Vision
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7. Customer Focus—Market Segments
Commercial Service Provider
Enterprise Consumer
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8. STRATEGY
VISION Market Transitions… Customer Driven
Innovation… Build / Buy / Partner
Network Changes Way We
Collaborate
Work / Live / Play / Learn
Technology and Business Architecture
Network Becomes Cross Functional Teamwork /
the Platform… IIN Prioritization
All Forms Communication
/ IT Into Network EXECUTION
#1 Product Leadership
Enabling New…
Business Models Lead Layers 1-7 Convergence…
Productivity Leader In All Customer Segments
Entertainment
Quad Play Everywhere… UC
Leader in Collaboration / Web 2.0
Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 8

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

10. 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

11. Strategic Marketing:
Vision and Mission
Vision: Mission:
Changing the Way We Plan, Deliver Unique Insight About
Target, Compete and Execute 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

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

13. Strategic Marketing Capabilities
Capabilities Coverage
Custom Research
Global Market View (GMV) Solution/
Technology
Market Analysis Enterprise
Integrated
Secondary Research Market Service
View Provider
Competitive Intelligence
Commercial
Database Analysis
Customer Consumer
Database Strategy Intelligence
Data Quality/
Standards/Reporting
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14. Tools & Resources
Competitive Portal Wikis
Competitive
Research Portal Dashboard
Global Market View (GMV)
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15. Strategic Marketing Evolution
Data Analysis Insight and
Impact
Core Focus
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16. 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

17. Customer Intelligence
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18. 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
9 10 11 12
Recent but Not
Frequent
Overall Low Spending
Annual High Overall
Spending
Multi-Year Overall Low
Spending with
No Wireless
Semi-Annual
Overall High
Spending and
Revenue generating models
and No UC Size Share: X% and UC No UC
$F07 Share: Y%
Size Share: X% Size Share: X% Size Share: X%
$F07 Share: Y% $F07 Share: Y% $F07 Share: Y%
5 6 7 8
Large Quarterly Very High Semi
Very Low Overall Annual Overall Very High Quarterly
Spending Routing Spending Overall Spending
Only Spending and No
Size Share: X% UC Size Share: X%
$F07 Share: Y% Size Share: X% $F07 Share:Y%
$F07 Share: Y% Size Share: X%
$F07 Share:Y%
1 2 3 4
Annual Overall High Extremely High Annual Moderate
Multi-Year Very Low Overall Spending
Service Only Spending but Very Low Overall Semi-
UC and Wireless Annual Spending but with No
Size Share: X% Wireless and UC
$F07 Share: Y% Size Share: X% Size Share: X%
$F07 Share:Y% $F07 Share: Y% Size Share: X%
$F07 Share:Y%
Data Quality Management
US
China
UK Russia
Italy
Ind
ia
Brazil
Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 18

19. 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

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

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

23. 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
14.0
12.0
Linksys WAP55AG
10.0 3Com OCG
Share
8.0 Cisco AP1121G
6.0 Cisco AP1231G
4.0
2.0
0.0
$0 $100 $200 $300 $400 $500 $600 $700 $800
All Respondents
Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 23

24. 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

25. Market & Competitive Capabilities
Capabilities Coverage
Market Assessment
Market Sizing
Competitive Deal Support
Defining Addressable Markets
War Room Competitor Review
Market Pricing Analysis
Competitor Messaging Analysis
Competitive Solution Reviews
Market Analysis Competitor Technology Reviews
Competitor Planning
Market / Competitor Threat Assessment
Competitive Market Modelling
Competitive Analysis Quarterly Market Review
Annual Market Review
Competitive / Market Training
Who, What , How & Playbooks
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26. Market Intelligence
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27. Global Market View model
Addressed by Technology by Theatre (Phase 1) Addressed by Technology by Country
+ by Vertical by Size Segment (Phase 2):
Inputs by Vertical by Company Size:
Industry
tri s/
un tre
es
Sales Ger.
Co hea
Employment Investment Can. 1000+
T
(Fixed Cap. China
Size Class
Formation) Etc. 250-299
Prod. Categories
Routing
Industry Cisco 20-249
Value-Add Addressed Bookings Switching
By Vertical 1-19
by tech.
by theatre IPC
External Etc.
View Comm.
Spend. Fin. Gov. Man. Edu. Etc.
Verticals
Input D&B
Sales Data
IT
Spend
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28. Global market view
Top level information
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29. Global Market View (GMV) Forecasts
FY07-11
CAGR
Addressed technologies
35%
Adjacent technologies Wireless
30%
ANS
Wireless
25%
20% IPTV
Security
15%
Security Routing
Storage Switching
10% Networking
Optical
Cable
5%
Optical UC
UC
0%
0 5 10 15 20 25 30
US$B
Source: Cisco Global Market View, October 2007
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30. Competitive Intelligence
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31. Competitive Leadership Portal
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32. Information by Competitor
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33. Information by Technology
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34. Competitive Dashboard Tool
Click for
technology
market
competitive
landscape,
facts and
expert opinions
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35. 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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36. Enabling a Web 2.0 approach
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37. War Room Analysis of Front-Line Competitive Pressures
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38. Source of Competitive and Market Insight
Annual Competitive Market Intelligence Report
Forecasting per technology with implications, drivers, competitive inflection points
• Landscape Trends Drivers 07-09 • Commoditization
• 5 Force Analysis / Addressable • Tech Adoption Life Cycle 07 / Tech Adoption
Market Life Cycle 09
• Channel & Network Size Aug 07 / • Where will the threats Come From
Network Size 09 • Top 3 Competitors Today / Tomorrow
et
Quarterly Challenges and
Implications
preadshe
q -CMIR
et
et
et
preadshe
preadshe
preadshe
q -CMIR
q -CMIR
q -CMIR
Dell’Oro Solution Numbers
CQ Rev, Units And ASP Trends
Master S
Master S
Master S
Master S
CQ Theatre Performance
Competitive Landscape
Recent 3rd Party Analyst
Research (If applicable)
http://wwwin.cisco.com/marketing/mi/mktshare/
Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 38

39. 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

40. 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

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

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

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

44. Looking at the Big Picture helps to identify
what sort of animal you are dealing with…
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45. Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 45