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 SolutionMarketingBlog.com. 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. Read the Solution Marketing Blog at http://www.SolutionMarketingBlog.com

1. Solution Marketing Lessons
From the Apple iPad
Steve Robins
April 2, 2011
© 2011
The Solution Marketing Blog

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
s.robins@SolutionMKT.com
LinkedIn.com/in/SteveRobins1
Twitter.com/SteveRobins
SolutionMarketingBlog.com
© 2011 www.SolutionMarketingBlog.com p2

3. Apple iPad… Is This a….
iPad…
 Tablet computer?
 Product?
 A t?
Art?
 PC?
 Post-PC device?
 Media platform?
Tablet Device
Apple iPad
© 2011 www.SolutionMarketingBlog.com p3

4. Apple iPad… Is This a….
iPad…
Content
Consumption
p
Solution
Tablet Device
Apple iPad
© 2011 www.SolutionMarketingBlog.com p4

5. Apple iPad…
iPad…
Actually, It’s a Content Consumption Solution…
Pictures Movies
Tablet Device Music Apps
Apple iPad Email, Games,
Productivity, more
© 2011 www.SolutionMarketingBlog.com p5

6. …With Integrated Tools to Obtain Content
Music Apps,
iTunes Mag. Subscriptions
AppStore
Tablet Device Bookstore Browser
Apple iPad iBookstore Safari
© 2011 www.SolutionMarketingBlog.com p6

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 www.SolutionMarketingBlog.com p7

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 www.SolutionMarketingBlog.com p8

9. Why It Matters
The Chasm Main Street
rs
Relative % 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 www.SolutionMarketingBlog.com p9

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 www.SolutionMarketingBlog.com p10

11. Why Solutions?
Customers want t
C t t to
solve problems or
meet needs.
They do not want to buy
p
products.
© 2011 www.SolutionMarketingBlog.com p11

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 www.SolutionMarketingBlog.com p12

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 www.SolutionMarketingBlog.com p13

14. Solution Strategy
S l ti St t
© 2011 www.SolutionMarketingBlog.com p14

15. Complete Solution to the Customer’s Problem
Solution
People
Technology/ Services/
Product(s)s
Process
Support
Content/
Information
© 2011 www.SolutionMarketingBlog.com p15

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 www.SolutionMarketingBlog.com p16

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 www.SolutionMarketingBlog.com p17

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 www.SolutionMarketingBlog.com p18

19. Solution Marketing Strategy
S l ti M k ti St t
© 2011 www.SolutionMarketingBlog.com p19

20. Traditional Marketing – 4 Ps
Promotion
Product
P
Price
P The 4 P’s
P
Place
P
Derived from SIVA model, Chekitan & Dev
© 2011 www.SolutionMarketingBlog.com p20

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 questions
Derived from SIVA model, Dev & Schultz
© 2011 www.SolutionMarketingBlog.com p21

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 www.SolutionMarketingBlog.com p22

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 www.SolutionMarketingBlog.com p23

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 www.SolutionMarketingBlog.com p24

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 www.SolutionMarketingBlog.com p25

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 www.SolutionMarketingBlog.com p26

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 www.SolutionMarketingBlog.com p27

28. Thank You
Steve Robins s.robins@SolutionMKT.com
LinkedIn.com/in/SteveRobins1
LinkedIn com/in/SteveRobins1
Founder
Solution Marketing Blog Twitter.com/SteveRobins
SolutionMarketingBlog.com
www.SolutionMarketingBlog.com
© 2011 www.SolutionMarketingBlog.com p28