April 15, 2005 Objective Marketing Implementing and Marketing VOIP Services Presented by: Diane Hicks, Partner John O’Brien, President Objective Marketing

April 15, 2005 Objective Marketing Objective Marketing Objective Marketing is a full service marketing firm specializing in the telecommunications industry. Our services include: Product Development and Management Market Research Acquisition programs Loyalty and retention programs Revenue modeling and reporting

April 15, 2005 Objective Marketing We’ve got the VoIP Equipment, now what do we do?

April 15, 2005 Objective Marketing Implementing and Marketing VoIP Services Agenda Tools for Implementing & Marketing VoIP Services Case Study: Objective Telecom Your Next Steps

April 15, 2005 Objective Marketing Developing, launching and marketing VoIP solutions Build product Build product Identify your market and size the opportunity Identify your market and size the opportunity Test and modify Test and modify Prepare, launch, and communicate Prepare, launch, and communicate Research customer needs Research customer needs Identify corporate objectives Identify corporate strengths, weaknesses, opportunities and threats Identify corporate objectives Identify corporate strengths, weaknesses, opportunities and threats Research competitive influences Research competitive influences

April 15, 2005 Objective Marketing Strengths Internal analysis of company’s competitive advantages. Market position and brand Product Services Weaknesses Internal analysis of company’s disadvantages. Market position and brand Product Services Opportunities External analysis of company’s ability to meet unfulfilled customer needs. New technology Changes in regulations New products and features Changes in competitive outlook Threats External analysis of changes in the market place that may pose a threat to company’s sales and revenues. New technology Changes in regulations Competitors SWOT Analysis Use SWOT to Identify a Company’s Strengths, Weaknesses, Opportunities, & Threats

April 15, 2005 Objective Marketing Sizing the Opportunity through Market Trend Research

April 15, 2005 Objective Marketing Sizing the Opportunity through Segmentation Further segmentation of residential marketFurther segmentation of residential market Age GroupsAge Groups Income LevelIncome Level EducationEducation Lifestyle (PRIZM)Lifestyle (PRIZM) Product (CPNI consideration)Product (CPNI consideration) Further segmentation of business marketFurther segmentation of business market Employee sizeEmployee size Industry typeIndustry type RevenueRevenue

April 15, 2005 Objective Marketing Understand your Customer’s Needs Residential Reduce telecommunication costs Unlimited long distance International calling Additional lines Privacy Control Simplicity Small Office/Home Office (SOHO) Appear larger to customers Expand reach – need an urban number Additional lines Mobility Fax Marketing Simplicity Small to Medium Business (SMB) Inter-office calling Tie multiple locations Expandability Urban presence Manage lines and voice mail Reduce costs Toll Free Remote access Enterprise Customers Inter-office calling Tie multiple locations Expandability Toll Free Manage lines and voice mail Moves, adds and changes Reduce costs Internal control

April 15, 2005 Objective Marketing The 4 “P”s of Marketing are used to Develop & Sell Products Promotion Product Place Target Market Price

April 15, 2005 Objective Marketing More on the 4 “P”s Price: Pricing Strategy Discounts Bundling Price: Pricing Strategy Discounts Bundling Promotion: Public relations Sales promotions Promotional Strategy Marketing Budget Advertising Message Media Mix Promotion: Public relations Sales promotions Promotional Strategy Marketing Budget Advertising Message Media Mix Product: Functionality Appearance Quality Packaging Features Warranty & Support Brand/Name Product: Functionality Appearance Quality Packaging Features Warranty & Support Brand/Name Place: Sales Channels Order Processing Logistics Place: Sales Channels Order Processing Logistics

April 15, 2005 Objective Marketing Operational Readiness Acquiring Numbers LD 911 Regulatory Filings Process Flow Changes Equipment and Fulfillment Customer Installation Customer Training Technical Support Internal Training

April 15, 2005 Objective Marketing Case Study Introducing: Objective Telecom, an IOC serving Rural and Suburban Markets

April 15, 2005 Objective Marketing Objective Telecom Overview Corporate Objective: Build future revenue streams and maintain control of customer relationship Company Services: Total Access Lines: 75,000 Res: Markets: Bus: Company Name: Objective Telecom Rural/Suburban USA 250, ,000 Access lines, DSL, Calling Features, Dial and Dedicated Internet, CPE, Voice Mail, Centrex, T-1s, ISDN Competitors: Mobile Telephone, ABC Cable Co., CPE Unlimited, VoIP USA, Alternative Telephone Case Study

April 15, 2005 Objective Marketing Objective Telecom’s Position in the Market Strengths Strong brand recognition Community presence Existing business relationship Strong customer service Knowledgeable, dedicated employees Full suite of wireline services Weaknesses Not seen as “Cutting Edge” No wireless product solution No video platform Scale Opportunities Tie new VoIP to wireless solution Bundled broadband, VoIP and Wireline services Threats Line Loss to wireless, Cable, national VoIP firms, and CLECs Loss of customer relationship SWOT Analysis Case Study

April 15, 2005 Objective Marketing Other attributes to consider: Type of business Number of employees Age/need to replace CPE 30% of customer base Case Study Objective Telecom’s Customer/Market Segmentation 70% of customer base Other attributes to consider: Income Education Existing Products (CPNI Considerations) Broadband Penetration

April 15, 2005 Objective Marketing Objective Telecom’s Initial VoIP Target Market Segments Case Study Initial Residential Target Market: Who: Suburban, in territory customers Age range 20 and 40 With DSL or cable broadband service Why: Aggressive suburban cable company has been capturing primary and secondary lines Initial Business Target Market: Who: SMBs in both rural and suburban markets Many have aging CPE that needs replacement Growing businesses need additional services Why: SMBs with aging CPE are looking for alternatives Sales force needs a new product for this market SMBs are an influential economic force in our markets

April 15, 2005 Objective Marketing Objective Telecom’s Residential VoIP Plan Product Additional line; in territory only 2 plans: block of time and unlimited Features included: Voic Caller ID, etc. Find me/follow me Sim Ring 24x7 Technical Support Additional number/out of area number: optional Price 2 plans available; $20 with 500 minute block; $30 with unlimited Installation/Adapter Pricing: waived with 1 year commitment $5 monthly discount when bundled with: Access line DSL Place Channel: Call Center initially, web ordering in next phase Adapter Fulfillment: outsourced Fulfillment materials required include installation instructions, FAQs, and user instructions Technical Support: provided internally by current ISP tech support Promotion Promotion: one month free Press Release Bill Inserts, Door Hangers Mass Media Newspaper Radio Call Center training and contest Case Study

April 15, 2005 Objective Marketing Objective Telecom’s SMB VoIP Plan Product Available in territory, plus branch offices out of territory Sold on a “per seat” basis and includes dedicated internet All features included, plus voice mail 24x7 Technical Support Toll Free numbers & out of territory numbers available Block of time LD available 1 POTS line required for FAX & 911 Price Per seat price $60 Price includes dedicated internet access CPE can be purchased or leased Installation Fee: waived with 2 year commitment Volume and term discounts provided Place Channel: Direct Sales VoIP and IADS warehoused Extensive preparation for installation and customer training; including quick reference cards and “train the trainer” material Promotion Press Release Economic development and civic group presentations Direct Mail Sales commissions, plus contest and bonus during launch Case Study

April 15, 2005 Objective Marketing Objective Telecom … Six Months Later Case Study What should Objective Telecom do now? 1.Assess sales progress and product feedback 2.Make necessary changes 3.Continue product promotions to initial market segments 4.Assess market opportunity, select additional target market segments 5.Develop products for new target segments 6.Market to new segments

April 15, 2005 Objective Marketing Your Next Steps Analyze your VoIP Opportunity Perform SWOT analysis Segment and analyze your customer base Research customer needs Assess competitive threats Select target markets and set penetration goals Develop Products for Selected Segments Design products to meet segment needs and corporate objectives Develop pricing and promotional offers Set unit and revenue goals Name your product

April 15, 2005 Objective Marketing Your Next Steps (cont.) Operational Readiness Update and test customer life-cycle processes: ordering, provisioning, billing, repair Work with vendors on fulfillment, technical support, LD Obtain number pools Beta test with select customers Train employees Product Launch Identify sales channels and communication vehicles Develop product support and marketing materials Communicate objectives and marketing plan to employees Launch communication plan Track results

April 15, 2005 Objective Marketing Objective Marketing can help you meet your VoIP Objectives CONTACT US Diane Hicks, Partner John O’Brien, President VoIPossibilities Dallas, TX