How To Rip Your Product Into The Market and Ride The Wave! Ted Finch President, Chanimal Marketing...

How To Rip Your Product Into The Market and Ride The Wave!

Ted FinchPresident, Chanimal Marketing

Chanimal – The Ultimate Resource for Software Marketing

www.Chanimal.com

How To Rip Your Product Into The Market and Ride The Wave!



www.Chanimal.com

Tsunami Product LaunchesTsunami Product LaunchesTsunami Product Launches

Tsunami Product LaunchesHow To Rip Your Product Into The Market and Ride The Wave!



www.chanimal.com

Tsunami Product LaunchesTsunami Product Launches

• Background• Product Manager’s Role in Product Launch• 3 Main Take Aways

– Positioning – Win Before & After Development (and Drown your Competition)

• “If You Build It…” - NO “Field of Dreams” Marketing • Pre-launch Preparation – Get This Done or Else• What Works Best – Where To Spend Your Cash

– Launch Day – No “Stealth” Launches or “Leaks” (Crash the Beach!)

– Tracking & Leveraging Results (Get Your Budget Approved)


Background – ChanimalBackground – Chanimal

• Chanimal – The Ultimate Resource for Software Marketing at www.chanimal.com. Short for “Channel Animal,” Ted Finch – 22 Years of professional marketing

• As co-founder and VP, built world’s largest high-tech product launch service company from 13 to over 4,000 people while executing the launch of over 400 products for over 150 companies (Microsoft, IBM, Adobe, HP, WordPerfect, Intel, Ashton Tate, Sony, Citrix, Autodesk, ATI, plus more)

• Published Netscape Navigator & AOL. Helped inaugurate .dot com era. • Wrote marketing plan, helped finance & form Red Storm Entertainment with

Tom Clancy (Press release on USS Nuclear Sub Cheyanne, ABC, CBS, NBC)• Former Sr. VP Marketing at Motorola, VP at $130 billion GE. Acquired five

times• Quoted in numerous trade publications & high-tech books, recently produced,

“How to Finance a High-Tech Start-Up” Video• Chanimal – industry resource, offers start-up Virtual CMO “micro” consulting

(low cost retainer – high return)


http://www.chanimal.com/

Product Manager’s RoleProduct Manager’s Role

• How is this relevant? Do you “do” launch?• The GM of the product (all the responsibility, without any of the

authority)• General Contractor. Responsible, but work through sub-contractors

(development, support, marcom, sales)• As the GM/GC, must “know” how to define (and position), make and

launch to ensure product meets financial objectives• In start-ups you do much of the work. In large corporations, you

manage through matrix• In either large or small, you must know what good performance looks

like and how to get the return you need• Cradle through grave (launches prior to the grave)

– One PM scheduled his vacation on the day the product shipped (along with development). Misunderstood his role.


Positioning Positioning

• Win Before & After Development (and Drown your Competition)– The apex of all strategy is to determine your unique distinctive

competence (unique value proposition) – your positioning– Positioning – “Why would anyone want to buy ‘us’”– The best way to launch your product, is to position it “before” it is

developed—by building your selling hooks (the biggest problem solved) into the product in advance

– If you inherited a “me to” product, you MUST find (and articulate) a unique position before the launch materials (or you have nothing to promote!)



• Case Study #1– The product manager is the case study--not the software– CodeWarrior for Windows (an IDE for software development)– Developed by copying Microsoft’s features– The Product Manager’s positioning, “Just like Microsoft.” (buzzer goes off, ton

of bricks fall)– When challenged, “it is cheaper” came out (bricks…). Lower the price is NOT

a differentiator (a difference shouldn’t take seconds to match)– Didn’t work, only 2% market share. Reason? The PMM said, “Missing a few

of Microsoft’s features.” (buzzer…)– What is wrong with this product’s positioning?

• Hint – it wasn’t determined before it was developed and turned into a “me to” (non-differentiated product)



• Case Study #1– How do you sell (promote) this software?– You MUST still position it (after the fact) – what are the most

unique features of the product that are valuable to the user (and that they will PAY for)?

– Through homework (research) we found something unique (not brilliant, but unique).

• Our product was better at cross-development between Windows and other platforms

• For those porting Window apps to Mac, Linux, Nintendo, or any embedded system…we had a unique advantage.



• Case Study #1– The ability to use a similar IDE

interface and to port to multiple platforms was our distinct differentiator.

– We were also faster, and had a few unique characteristics, but the cross-platform approach was the most defensible differentiator.

– Leveraged with competitive matrix

– Offered a “no risk” option

– Promoted “sizzle” (more later)



• Case Study #2– DCA (5th largest software company at the time)

• CrossTalk, #1 rated terminal emulation software• CrossFax – Added to CrossTalk for Windows• Competed against Winfax

– I had launched 2 prior versions of Winfax so I knew it’s capabilities & weaknesses

– Had to determine the unique differentiator

– Product Manager had a comprehensive matrix of comparative features

– While researching for the unique differentiators (since we “bought the product”, rather than developed it), we found out about a bid against Winfax with Chrysler.



• Chrysler wanted to broadcast fax their brochure via local dealers

• Winfax had two critical flaws– Could not broadcast faxes w/out crashing– Could not fax greyscale

• This is how we positioned ourselves against Winfax…


Positioning Positioning Tsunami Product LaunchesTsunami Product Launches

This is a re-creation. The actual fax from Winfax was MUCH worse (almost unrecognizable)


Re-creation of the original fax.

In contrast, CrossFax has never crashed during a broadcast fax…EVER!


• Did it work?• Yes! Chrysler selected CrossFax for a 20,000 user site

license!• Similarly, you must find a marketing hook, a unique

differentiator that the user values and is willing to PAY for (like Chrysler)

• Key takeaway: It is best to do your homework and find out what prospects want in advance, so you can build it into your product.– If you didn’t build valuable differentiators in, you have less

leverage to promote later (i.e., CodeWarrior)– Regardless of what you have, it must have a unique position to

promote



www.chanimal.com/html/research.html

• Resources– I highly recommend Rick

Chapman’s book, “The Product Marketing Manager’s Handbook for Software.” Good sections on positioning.

– In addition, go to Chanimal.com to get free info about how to find the differences that folks are willing to PAY for.

http://www.chanimal.com/html/research.html

http://www.chanimal.com/html/special_offers.html

“Field of Dreams Marketing”“Field of Dreams Marketing”

• $2 billion group, yet less than $100k in promotions

• 3 Junior marcom – wrong ones (database, events, project)

• Sales (Engineers) were not good at prospecting (only found 22%)

• 78% of our business came from marketing program leads

• Had to convince the company to spend more on promotions to earn more – leveraging ROI (latter)

• Sometimes large corporate divisions have less resources than start-ups


Takeaway: You must promote the product once it is developed—or it often just sits. “Sounds” obvious, but does management and your budget agree?

Marketing Mix – 4 P’sMarketing Mix – 4 P’s

• Product– Product type, name, features, benefits, competitive

positioning, buy/build or align• Price

– Objectives (marketshare, ROI, sales growth, long-term profit)

– Strategy (22 options – floor, penetration, parity, cross-benefit, etc.)

– Structure (which products, by account, time & conditions)

– Levels (volume break points, site license, by product, service and peripherals)

• Placement– Direct and/or indirect

• Promotions– PR, advertising, direct response, on-line, alliance,

events (proactive, reactive with counter-strikes)

Strategy: Identifying the “uncontrollables” (competition, economy, environment, etc.) and deciding what to do about them

Tactics: The things you can control. The 4 P’s of the marketing mix is the framework.

You must decide the first 3 P’s before you can determine how to promote.


Marketing Mix – 4 P’sMarketing Mix – 4 P’s

• Product– Your unique positioning gives you the “hooks” to promote.

• Price– You could leverage introductory promotional pricing

• Special pricing for upgrades• Rebates in retail• Bundles

– You could leverage your sales terms• Financing (i.e., GE Capital advantage—GE Security)• Tape a month (Family Entertainment Network)• Expose competitor’s bad pricing (CRM – priced per user, versus per pc)

– You could leverage your license agreement (concurrent license, site license, etc.)

– Gratus package (good for “series,” giveaway items for more volume or select items). Especially helpful for direct sales. FEN, Holt

– Price positioning – always an objection, arm sales with product positioning (set-top box example)

• Placement– Direct sales dictates direct response, direct sales (Internet),

requires different collateral (PowerPoint sales presentations, telemarketing scripts, etc.)

– Indirect sales (reseller channel) requires generating leads and traffic for your reseller channel, training and branding the resellers

You must decide the first 3 P’s before you can determine 4th P - how to leverage and

promote.


Ca

se

Stu

dy

# 1

Ca

se

Stu

dy

# 2

Price Case Study #1Price Case Study #1

• Price– Gratus package (good for “series,” giveaway items

for more volume or select items). Especially helpful for direct sales.

• Family Entertainment Network (animations (Swan Princess, etc.))

– Provided items to include to encourage purchasing more “sets” during the original visit

– Allowed the “One more reason to buy” close– Was highly leveraged to generate 2.5 sets/customer

• Holt, Rinehart & Winston (100 year old $200 million educational publisher (textbooks and software), part of $4 billion Harcourt)

– Provided software, teachers editions, tests, overheads, ancillary material as part of the overall package—but wasn’t being leveraged to close the sale, but “given” away


Price Case Study #2Price Case Study #2

• Price positioning – always an objection– Arm sales with product price positioning (set-top box example)

• Companies set-top was $800• Competition was $200

• Q. How can you “promote” your price?• A. Change the perception. Switch the criteria from price to “cost” or

“revenue potential” and promote how much more they will make.

0

50

100

150

1999 2001 2005

E-Commerce T-Commerce Interactive Services

PPV I-TV HIS Enhanced Services

High Speed Internet Standard ISP Long Distance

Features Local Voice


Cable/DBS TV24%

Long Distance20%

Cellular12%

Local Phone29%Internet

7%

Local Toll4%

Paging2%

Calling Card2%

“Our” system produced up to $129/mo In revenue. Competitors generated only $59. It required $79 for their business model to work. We produced over $3,600 more revenue/5 years—after the difference!

Pre-Launch PreparationPre-Launch PreparationTsunami Product LaunchesTsunami Product Launches

• Price list and matrix• Customer PowerPoint's• Reseller program PowerPoint's• Alliance PowerPoint's• Alliance kit• Product demo script• Folders w/sticker space• Product packaging• Product slick• Sell sheet (resellers)• Family brochure (if applicable)• Press reprints• Customer testimonials• Business plan - investors

• Demo CD-ROM / Video• Case studies• White paper• Sample RFI and RFQ templates• Competitive matrix (sales version)• 3rd party add-on book• Branded give-away items• PR Reviewer’s guide• 35 mm slides, Web versions• Hi-res .jpg of key executives and products• Logo usage guidelines

4 P’s – Plus Collateral

Where To Spend Your $Where To Spend Your $

• What Works Best?– Depends on product (obvious)– However, I usually always start with PR

• Positioning 1st (product positioning, pricing positioning, unique placement (i.e., Autodesk reseller loyalty—an asset)

– Then, no budget, go with those that cost less (guerilla (chanimal) – website, online, alliances)

– With budget, go with those with the greatest ROI• $’s for resellers are highly leveraged dollars

– For example, 1 customer = $10. 1 reseller = 1,000 x $10

• But, must also use dollars to drive leads to support resellers


Promotions - PRPromotions - PR

• PR (1/7th the cost, 15 times more believable – always start with PR!)

– Setup• Determine objectives and measurement• Company positioning statements• 3-5 key talking points division and

product• Company backgrounder• Internal media training (what to say,

cautions)• Establish policies (flaming,

spokesperson, routing)• Setup crisis management process

– Analyst for early referencing & validation of positioning

– Trade press (1st looks, reviews)– Business press (depending on product)– Go big – cheap

• Helped launch Red Storm Entertainment with noted author Tom Clancy

• Press event held on USS Nuclear Submarine Cheyenne – attended by ABC, CBS, MTV, etc.


http://www.redstorm.com/

http://www.redstorm.com/

Promotions - PRPromotions - PR

• PR– Internal PR (80% internal, 20% external for launch & new press)

• Proactive campaigning– Setup interviews with analyst and key executives– Follow-up with executives to stay in contact with press as experts– Issue press releases– Setup press tour (preferably at trade events)– Speak at trade show events – as the industry expert– Write ghost stories and submit to freelance writers– Create white papers to validate company’s unique value– Place success and case stories– On-line ombsbudsman (viral marketing, crisis detection & management)– Submit for editorial schedules

» Create reviewers guide – sets criteria for review (Goldmine – 8 editor’s choice in a row w/PC Magazine, Corel – over 150 awards!). Each article pulled more leads than any ad, direct response, or event!

• Follow-up and tracking– Read--correct all mistakes– Setup clipping service, clip books, bulletin board – communicate– Calculate response and value (Media Quality Quotient Analysis)


Promotions – On-linePromotions – On-line

• On-line marketing– Definition stage

• Solidify objectives, consistent look and feel, PR/reseller/alliance portal

– Building stage• Setup lead portal, product information,

plan-o-gram and e-commerce• CD-ROM version, site stats, on-line

surveys, search engine, Web policy

– Promotion stage• Metatags & key search words, submit to

search engines, link to/from alliances, organizations, op-in list, announce on-line forums, affiliate program

www.wilsonweb.com (subscribe to news)


http://www.wilsonweb.com/

Promotions - AlliancesPromotions - Alliances

• Alliance marketing – Build, Buy or Align Strategy– Setup & definition stage

• Define objectives• Identify potential alliances based on product, complimentary sales contacts, etc.• Prioritize alliances into top 10 (most of your time spent), top 25 and self-serve (compile

contacts)• Define the levels, benefits and requirements• Create alliance policies (screening criteria, process)• Setup “self-serve” alliance info for non-top 25 and above• Alliance kit

– Intro, benefits, agreement, NDA, logo usage, hi-level roadmap, calendar, order form, contacts, workshop agenda, alliance PowerPoint, Titan sales script and presentation (cross-selling), alliance portal

– Recruiting stage• Contact top 10, sign agreement, setup workshop dates, contact next 25

– Engagement stage• Connect three departments to justify alliance

– Product Management & Development (to align roadmaps and fill holes (drivers, secondary technology (not core competance), codex, peripherals)

– Sales (for joint calls and cross leads (Dell / Holt))– Marcom (for joint promotions)


Promotions - AlliancesPromotions - Alliances

Alliance Case Study - HRW– Smithsonian – for online content– Dell

• Product (PM and Dev)– HRW had US History course that required 5 PC’s per classroom to use (didn’t know how

to sell PC’s)– Dell needed content to justify the PC’s in the class (didn’t have or create “approved”

content)

• Sales– Setup joint calls to show the multimedia history course, and the equipment plus financing

to get it in the class

• Marcom (split cost and/or doubled the exposure)– Cross sell (Dell listed HRW content, HRW put Dell ads on 600,000 catalogs)– Press release (peaked interest for both and increased awareness)– Links to each other’s websites– Part of the alliance portal (to communicate to each sales force)– Cross trained teams at both sales meetings– Joint ads– Pre-qualified and tested configurations– In each other’s trade show booth

– Acid test – Make more money with the alliance than without


Promotions - AdsPromotions - Ads

• Advertising – Mainly display ads in high-tech– Expensive (must have budget)

– Strong proponent

– Strong opponent

– Believe in direct response with positive ROI• Best way to brand is to buy product (put the Levi on the bum)• Little belief in “image ad” (except image products (Lexus))

– Greatest abuse in high tech – most don’t pull

– Created by designers with no “marketing” background• But they look great, even if they don’t maximize leads• Rule – run from agencies that flaunt design awards

– Use corporate templates, again created by designers not marketing pros• Need to design templates that follow best marketing concepts

– Most high-tech marketing departments come from non-marketing backgrounds (engineering, sales, etc.). Don’t know the marketing framework, can’t direct design since they don’t know the difference.

• Typically, apx. 1/9th of my marketing departments have a marketing background (usually the PR)• Most have never taken a course in marketing or even read a marketing book• Most VP’s of Marketing I’ve met are the worst culprits (OK operations, good networkers, bad mentors)



• Advertising– Ads that sell (produce leads)

and maximize ROI follow the…

– Persuasive format• Attention• Credibility• Problem• Solution• Best Solution• Overcome Objections• Visualization• Call to Action

– Design follows “Z” format• Theory…

– Result• Won award at GE for having the

“Most leads” of any vendor• Increased leads at Motorola 35

times!• Over 700 leads / week at

Goldmine (up from 30)

Credibility

Attention

HeadlineKjfkjfkjfkjfkjfkjfkjfkjfkjfkjfkjKjfkjfkjfkjfkjfkjfkjfkjfkjfkjfkjKjfkjfkjfkjfkjfkjflojdsflkjf;okjKjfkjfkjfkjfkjfkjfkjfkjfkjfkjfkjfkKjflkjfljflkjflkfkfkjfoijfkjfijfjKjfkjfkfkfkj



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Action

Problem

Overcome objections

Solution


Ads - ExamplesAds - ExamplesTsunami Product LaunchesTsunami Product Launches

Persuasive Elements• Attention• Credibility• Problem• Solution• Best Solution• Objections• Visualization• Action

Not always the prettiest, but the format pulls like a worm in a stocked pond

Strong direct response• FREE (strongest word)• 30 day trial (no risk)• Special offer (enticement)• Unique URL & Landing page• Phone number (tracking)• Impending event (deadline)

Reverse type, justified margins, buried in design

Reverse type (hard to read), no special offer, graphic catches attention, would you read?

Graphic element tells you what? Reverse type.

Has persuasive elements, Z format, short columns, shows product, persuasive copy, screen shot visualization, strong offer, readability

Basic quick review of current ads


• Advertising– Determine objectives– Review competitor’s campaigns (if any) – Adscope, personal

clippings– Determine target audience (buyers, influencer, resellers)– Media selection (order trade pubs, review demographics and

editorial schedules, initial media selection)– Create ad concept, copy and design (Z format, direct response

w/offer). Phone, e-mail, unique URL (1st to do w/Netscape)– Determine frequency, negotiate placement, submit ads– Create on-line direct response landing page (unique URL)– Measure and evaluate media, message and response


Promotions - EventsPromotions - Events

• Event marketing– Roadshow for resellers and

prospects• Prospects 1st half• Resellers 2nd half

– Trade shows• Attempt to exhibit in alliance booth• If own:

– Determine who will coordinate– Booth size– Rent or buy a booth– Pre-show activities– Post-show follow-up– Lead dissemination and follow-up– Show report


Keys to maximize return•Demo show to draw crowds•Incentives to register•Paper qualifier (A,B,C)•24 hour lead dissemination•Mandated follow-up

Events Follow-UpEvents Follow-UpTsunami Product LaunchesTsunami Product Launches

A = 24-48 hoursB = 2 weeksC = Database

Launch Day – Crash the BeachLaunch Day – Crash the Beach

• Tsunami Wave – it all hits at once– Entertainment industry

• Everything is lined up (posters, ads, toys, websites, reviews)– Microsoft DOS 5.0, Windows 95

• Product was reviewed• Applications were developed• Drivers were completed• All product was sitting in retail for 12:02 sales

– No “Stealth” Launches or “Leaks”• High-tech typically drizzles a product out• Drizzles out much of the impact (name, features, everything)

– OK to create interest, but don’t take out the “news” or can’t leverage PR (don’t want old news)

• Which has more impact?– 100 normal waves– 1 wave 100x size


Is this a trick question?

Launch Day – Crash the BeachLaunch Day – Crash the Beach

What does a tsunami campaign it look like?


Reseller PromotionsReseller Promotions

• Channel Marketing– Reseller promotions vary depending on your reseller type (retail (mass merchant,

consumer electronics, superstore, etc.) to system integrator), from single to two-tier distribution

– Target resellers & distributors (spiffs, merchandising, stocking promos, contest, training)

– Target their customers (rebates, ROP (run of press), specials, upgrades, bundles, demo days)

– Typically handled through MDF and Co-Op funds (except pricing and rebates)

• Where do we spend our money to get the greatest return?


Reseller PromotionsReseller Promotions

• One of the most important secrets in the world with high-tech resellers…• 67% of everyone that goes into a reseller location asks for a recommendation. 97% follow it.

So 64% of the product sold is determined by the name that comes out of the resellers mouth.

• Takeaway – the MOST important person to brand is your reseller.• The best way to get your reseller to recommend your product is to get them to use it.• Spiffs and contest create fast, short term recommendations. But reseller training and NFR

copies are the two highest leveraged activities to create long-term recommendations.• Test the recommendation rate currently

– One of my companies was 13%, the competition was 71%– Train resellers and place NFR copies– Test again– My company went to 76%, the competition went to 12%

• We reduced our advertising by over $400k• They spent more on advertising (since their sales dropped), essentially driving prospects into resellers that we

“owned” and would switch them at the point of sale– This is the all powerful “reseller recommendation rate.” Often overlooked, but one of the best ROI

activities– I helped build an entire company (that grew to over 4,000 people), just to increase this ratio


Get Your Money - ROIGet Your Money - ROI

• Tracking & Leveraging Results– Build each promotion from scratch based on the

expected ROI– Following are methods to justify your budgets—showing

ROI and industry ratios…


Promotional PRPromotional PR

• Items– Press Release – news wire services (each x $550 = $20k). ROI: The Press Releases are required to help generate hits

– Press Kits (1,000 x $4, Plus $5k x 3 Reprints) - $19k ROI: Cost. Materials required to run PR campaigns

– The budget only accounts for the cost and ROI for each expense—which stands on its own. However, the overall expense also has a long and short-term residual effect since it helps ensure reviews, referencing, and Web hits.

– A positive press hit has a greater value than advertisement. We use the ad “replacement” cost to calculate ROI in terms of placement saving cost (what it would cost us to get the same “impression” count via advertising).

– ROI for press is calculated with a formula called the “Media Quality Quotient” analysis.

Announcement Activity # Releases Total Expected

Hits (25hits/Release)

ROI

(Based on $2,500/Hit)

Product 5 125 312k

Alliance 10 250 614k

Sales Wins 20 500 1,250k

Leadership 2 50 125k


GENERIC EXAMPLE OF POSSIBLE BUDGET INFO

Channel MarketingChannel Marketing

• Promotions– Direct Response

• 2,000 targeted locations – $8k– ROI: 2,000 x 5% response = 100 leads x 10% conversion = 10 resellers x

$100k/reseller/1st year = $1 million

• Reseller database list - $5k ROI: Needed to run campaign

– Events• Reseller Roadshow (10 cities, $80k less contribution) - $25k

– ROI: 10 cities x 25 resellers/each x 10% conversion = 25 resellers x $100k = $2.5 million

– Reseller Collateral ((brochure, binders) (2,000 x $50/ea)) - $100k

• ROI – Necessary to run the program.



AdvertisingAdvertising

• Objective: We have 1 new product and 2 new major release launches in 2004. We expect to generate new sales via the new product and releases, plus penetrate 6 new vertical markets. Total expense is $416k ($216k are new initiatives), our ROI is 1.8 million.

– 6 different verticals, 1 “best” pub per vertical, 6 placements each = 36 placements

– 4 different horizontal (security) pubs x 6 placements each = 24 placements.

– $6k each (with graphics/placement). Each launch campaign will run for 90 days.

Activity Total #

Placements

Expected # of Leads

(10/Pub)

Close

Ratio %

Avg $ Rev

Per Sale (15k + 5k Residual)

Revenue $

Vertical Ad 60 600 15% 20k 1,800k

* We currently get 30 leads / ad. We are using 10 “qualified leads / ad. Avg sale price, according to Les & current configurations, is $15k, plus $5k residual (software maintenance, upgrades, future sales)



Budget Summary – Expense/ROIBudget Summary – Expense/ROI

• Channel Marketing – recruit new resellers, sell more through existing resellers (increase recommendation rate). Expense: $160k + Channel Mgr Return $4.9 million.

• Advertising – new product announcements, generate leads for sales and resellers. Expense: $416k (50% new verticals) Return $1.8 million.

• Promotional PR – generate leads, credibility and awareness. Expense: $144k + PR Manager (contractor). Return $2.3 million.

• Events – generate leads, customer, consultant, reseller and press meetings—only ASIS ‘03. Expense: $338. Return: $513k

• Customer & Reseller Conference – customer, consultant and reseller support, pre-sell on-going releases. Expense: $320k ($320 CASI, $110 other divisions).

• Collateral – product catalog, price lists, CD’s (support material), reseller sales kits, data sheets, etc. Expense: $394. Return: Cost. Required to sell the products.



Industry Ratios – Marketing OnlyIndustry Ratios – Marketing Only

Marketing (Salaries, Overhead, MarCom (Ads, collateral, demos, PR, events))

% of Company Revenue

Fastest Growing Companies 12.7%

Most Profitable Companies 11.8%

$25+ Million Companies 8.8%

$20,000 or more Avg Transaction Cost 8.1%

>20% from Reseller Channel 13.1%

* Source: Software Success, 3rd Edition, Software Industry Operating Ratios. Based on 122 surveys for the 1st eight months of 2001. Data is apx. 1 year old.

Current Marketing Expense % Ratio:• 2003 – $4 million (w/salaries)/62 million sales = 6% •$2 million (apx. 50% of total CASI Marketing Budget ) is variable program expenses = 3% of company expenses* Based on how products are sold, we will use 9% as a comparable ratio (although almost all revenue comes from resellers which is 13.1% comparable). Even with the new initiatives, we are still below the industry ratios, regardless of which set of comparable data we review. ½ of our expenses are programs, ½ is salary (including product mgmt).



SummarySummary

– Positioning – Win Before & After Development • Position your product, your pricing, with placement

before you promote• Pre-launch Preparation – You must get this done• What Works Best – Where To Spend Your Cash

– Launch Day – No “Stealth” Launches (Crash the Beach!)

– Tracking & Leveraging Results (Get Your Budget Approved)


How To Rip Your Product Into The Market and Ride The Wave! Ted Finch President, Chanimal Marketing...

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