2. A GROWING SEGMENT OF THE PRINT MARKETS Basics of Digital Printing Mark Cupach Director, National Sales

3. Agenda Print market overview What’s happened to print The short run color market Products Services Adding Value to Print Selling Possibilities Keys to Success

4. Evolution of Digital printing 70’s 80’s & 90’s 00’s Color Separations Laser Scanners Film Assembly Plate-making Transition to Digital Computer to Plate Digital Photography Internet First Digital Presses Computer to press High speed digital presses merged with finishing PURLS Links to interactive media

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6. Current print market 5 March '09 shipments were $7.67 billion (-9%) in current dollars, -$756 million compared to March '08 – Historically, March is among the strongest months of the year; in 2009, it was the same as July 2008, historically the weakest month of the year

7. Exclusive Report Sponsor 6 Updated U.S. Forecasts (as of 5/2009, in 2009$)‏

8. What changed? Industry volumes decreasing—mature market Digital technology breaks down walls between market segments New competitor in every market New market structures emerging More emphasis on specific customer targeting Need for greater ROI and share of customers

9. What do the numbers say? Us pod Market Retail value

10. Digital color = efficiency/effectiveness Digital Effectiveness : Doing the right thing The RIGHT activities Applying the BEST strategies Resulting in competitive advantage Digital Efficiency : Doing the thing right Fewest resources Shortest time Highest ROI

11. Defining digital Static color Business Cards Single message postcards Static info sell sheets Bookmarks Calendars Newsletters Static info brochures Menus

12. Defining digital Variable color 1 : 1 Personalization Specific customer information on each piece Customizing/Versioning Variable copy changes paced to demographic features Coupled with another cross-over media PURLS E-mail marketing Tele-marketing

13. Digital or offset? TypeColorSizePagesMethodFinishCrossover Sell Sheet4/48.5 x 112StaticTrimmed2,857 Postcard4/16 x 92Address & Sort Trimmed22,096 Catalog4/48.5 x 1116Collated on digital Stitched1,262 Book4/48 x 1080 + coverCollated on digital Perfect1,131 Newsletter2/28.5 x 114Collated on digital Trim/fold1,871 Menu4/411 x 174StaticTrim/fold1,428

14. Digital or offset? TypeColorSizeQuantityPagesDigital Hours Offset Hours Sell Sheet4/48.5 x 11250021.22.1 Postcard4/16 x 915,00023.63.3 Catalog4/48.5 x 111,000165.010.0 Book4/48 x 1010080+Cover3.026.0 Newsletter2/28.5 x 111,00041.42.3 Menu4/411 x 171,50041.42.0

15. What does the distributor add? Expertise Fast moving technology—stay ahead of customers Vendor Choices Different machines with different products Cross-media effectiveness

16. What value do you provide? More personalized and relevant content Improved ROI Faster turn times for delivering messages Faster time to get to market Reduced waste and obsolescence Cradle to grave project management

17. How do you deliver? Become a marketing services provider Content is KING!! Become part of the message Partner with your vendors who are the experts Sell your customers on what the real value is Cost per response Share of customer Measureable results NOT just cost of mailing………

18. Digital Effectiveness Definable project goals—what does the customer want? What’s the budget? What’s the return? Is the customer prepared? Effective info database Response capability

19. Digital Efficiency How do you go to market? Online strategy Mailings Mailings plus online PURL Mailing plus PURL plus email marketing Mailings plus PURL plus email plus personal contact Translates into action plan/press selection

20. Internet is a strategy

21. Some possibilities Static Color Products One time orders? REPEAT ORDERS? Set up on company store? Static now…….can they be personalized? Versioned? What’s the quality issue? Pleasing color ok?

24. More possibilities Personalized Marketing Merging personal information to relevant images Quality of information – databases Delivering the marketing message Capture definable results

35. Conclusions Digital color print on demand is fastest growing segment of print When you add value….you add/increase profit Every time a human touches a job, money is lost Start easy………but start Digital printing IS for everyone Stay on the right side of the “digital divide”