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Creating an Entrepreneurial Marketing Environment

February 2010

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Changes in the Business Environment

How Marketing is Adapting

Defining the Role of Marketing

Marketing Expertise

Success Factors

Customer Impact to Marketing Activities

Insight to Cisco Marketing Activities

Take Away List

Agenda

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True Impact of a Global Economy

Diverse and Evolving Competitors

Dynamic Customer & Partner Base

Changing Composition and Definition of Workforce

Communication “Noise”

Continued Geopolitical and Social Unrest• Direct Ownership of Resources not a Critical Factor

Business Environment Has Changed!

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Re-examination of Roles, Skills/Expertise, Career Paths

Reporting Structures Redefined

Challenge to Balance Short Term and Long Term Objectives

Budgets Impacting Staffing and Centers of Excellence (In-house vs. Outsourcing)

New Communication Model?

Changes have Required Marketing Organizations and Functions to Adapt

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“It’s Marketing’s role to keep our fingers on the pulse of each market segment and lead the company in defining the market requirements, shaping markets and solutions, and taking our message to customers.”

Sue Bostrom, EVP and CMO, Cisco Systems

How are Organizations Defining the Role of Marketing?

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Good News: Foundation of Marketing has not Changed - Lessons from the Past (1958)

“I don’t know who you are

I don’t know your company

I don’t know your company’s product

I don’t know what your company stands for

I don’t know your company’s customers

I don’t know your company’s record

I don’t know your company’s reputation

Now—what was it you wanted to sell me?”

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Plan

Understand

Analyze

Anticipate and Identify Change

Communicate

Exploit Success

Foster Relationships

But Marketing Expertise and Functions are Evolving – Entrepreneurial Focus

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Plan • Set the proper working environment

• Create best practices and methodologies

• Ensure tools and infrastructure match long term requirements. Don’t let the tool drive your business

• Agree on strategic objectives and necessary KPI’s to measure true business success

Understand• Know your product, market, customer, competition, audience, and company (+/-) and think global

Analyze• Content Management and Data model but don’t get fooled by numbers and statistics of trends, leads, & sales

• Identify patterns, trends beyond basic data – have insight and question!

Insight: Success Factors

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Identify and Anticipate Change• Brain storm, debate and discuss

• Create hypothesis and validate

• Look at the future and understand the past: “Organizations are doomed if they do not respect history”

Communicate

• Proper communication to diverse audiences

• Importance of Social Media

• Consistency of messaging

Exploit Success• Windows of opportunity (Cost effective and timely)

Foster Relationships• Create loyalty, pride, and trust

Insight: Success Factors

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Innovators“Need it”

Early AdoptersRisk Takers

GeneralistsFollow the market

Trends

LaggardsI will only buy itAs necessary

Left BehindsNo way

Adoption Chasm

Generalists will ensure your successLaggards will support a cash cow portfolio

Insight: Customer Impact on Business and Profitability within the Product Adoption Lifecycle

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Marketing OutcomeMarketing Outcome

MediumMedium LongLong

Time Frame Time Frame

ThoughtLeadership

ThoughtLeadership

MarketValue

MarketValue

RevenueGrowth

RevenueGrowth

ShortShort

Insight: Adoption and Cisco Marketing Role

GenerateDemand

AccelerateMarket

Transitions

Establish Preference

for Cisco

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Shape the direction of markets by providing thought leadership and influencing analysts, press, customers, partners, and employees

Build pipeline, accelerate demand for Sales

Bring market and customer insight; systems and tools, and unique capabilities to the company

Foster CollaborationOperational Excellence

Establish Preferencefor Cisco

AccelerateMarket Transitions

Generate Demand

Insight: Cisco Marketing Value Proposition

Build value of Cisco brand, improving price premium, margin infrastructure and stock price

Build customer equity, increasing loyalty Open new buying centers, increasing wallet

share

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Experience is Critical• Pay your dues, learn, have patience

• Know Your Product, Market, Customer, Audience, Company

• Be Flexible and Evolve Your Self and Organization: Early Adopter

Develop Your Skill: Expert vs. Generalist• Need to take risks, make moves to obtain exposure in various areas

Career Planning vs. Work/Life Balance

Think Outside the Box and Be Creative

Take Away List

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The best way to predict the future is to create it.

- Peter F. Drucker

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