1. IBM Software Group ® Multi-Touch Marketing Protecting a Late Stage Market & Winning an Early Stage Software Market February 28, 2005 Mark Morrissey, Director zSeries Software Marketing

2. IBM Software Group 2 Agenda  Personal background  Early and late stage markets  Multi-touch marketing best practices  Career Thoughts

3. IBM Software Group 3  10 years in enterprise software marketing & product marketing  IBM – Director zSeries Software Marketing Multi-touch marketing model for $7B product line in late stage market  Candle Corporation – VP Worldwide Marketing Turned around $1B market leader losing share. Acquired by IBM  Siebel Systems – VP Marketing, Siebel ERM Helped define new ERM market and grow business unit revenue to $100M  Allegis Corporation – VP Product Management Defined PRM product and category that grew company to 200 employees & $20M revenue  Continuus Software – Development Manager, Product Manager Built two category creating products that grew company to 175 employees & $25M revenue  Design Intent – Chief Technical Officer Founded, funded and built product in failed start-up venture for early market  10 years as software developer and architect Personal Background

4. IBM Software Group 4 Techies “Try it” Visionaries Move ahead of the herd Pragmatists Stick with the herd Conservatives Move only when necessary Skeptics No way The Chasm Early and Late Stage Markets Tornado Late Main Street Bowling Alley

5. IBM Software Group 5 Market segment contact with applicable: Company (size, industry) Title Technology Value-Add Multi-Touch Emails Web Marketing Telesales & Sales Tools Field Events Multi-Touch Marketing Model eNewsletters Launches, PR & Analysts

6. IBM Software Group 6 Multi-Touch Marketing Best Practices - Summary 1.Validate “on message” whole solution positioning 2.Align campaign and revenue goals by target 3.Consistent multi-touch, value-add marketing to each target 4.Invest in organization and execution model 5.Measure each tactic, each region, each rep weekly 6.Focus on lead qualification and speed of follow through 7.Train and enable Sales with tools that reinforce same value proposition 8.Adjust tactics, positioning, volume and spend each week to meet goals

7. IBM Software Group 7 1. Validate “on message” position and whole solution for target market

8. IBM Software Group 8 2. Align campaign & revenue goals by target

9. IBM Software Group 9 3. Consistent multi-touch, value-add marketing for response generation Multi-touch e-mail  Informational, brief, professional  Aligned to important issue for target  Best practices, tips & tricks  Value-add off (white paper, article) Each tactic  Marketing template  Qualification call script  E-mail  Offer Self-Identified ResponseLead Qualification NA: JanuaryFebruaryMarchApril MayJune Email 4 Email 5WebinarEmail 6 WebinarEmail 7Email 3 Email 8 Sales E-mail 1 E-mail 2E-mail 3 E-mail 4 EU/AP: JanuaryFebruaryMarchApril June Lists May

10. IBM Software Group 10 In-source model enables fastest tactic execution and corrective adjustments  Product Marketing Manager – selects offer, lists sizes and develops draft content  Writer – creates compelling, professional content  Creative – creates HTML  Market Intelligence – generates lists  Operations – executes and analyzes results 4. Organize for fast cost-effective tactic execution (2 weeks, $500/lead) Cost per lead:  $1100 in 1H03  $842 in 2H03  $570 in 1H04  $416 in 2H04

11. IBM Software Group 11 5. Measure each tactic, each region, each rep weekly Weekly scorecard measures:  Responses  Leads  Lead conversion  Sales opportunities  Revenue

12. IBM Software Group 12 5. Measure each tactic, each region, each rep weekly

13. IBM Software Group 13 6. Focus on lead qualification and speed of follow through LDR Qualified Opportunities Telesales campaigns LDRsziSSRszSSRs Multi-touch marketing campaigns Field Sales Plays ziSSR-Generated Opportunities Sales Programs Lead Qualification V2V Opportunity Identification (OI) Opportunity Ownership (OO) Opportunity? Marketing Programs Win Revenue Win? YesOI OO Yes No Opportunity?

14. IBM Software Group 14 6. Focus on lead qualification and speed of follow through Designed for Speed of Follow Through  Inside sales receives responses daily  Calling begins with 24 hours of tactic execution  Qualified leads assigned to Inside Sales reps daily  Sales reps contact new leads with 48 hours  Tactic resolution typically completed within 3 weeks  Marketing manager has complete tactic analytics prior to next tactic

15. IBM Software Group 15 7. Train and enable Sales with tools that reinforce same value proposition Sales PresentationRecorded DemoScripted Whiteboard Sales ProgramEnablement Training

16. IBM Software Group 16 First campaign adjustments – redesign managers campaign, previous responders campaign begins, etc. Second campaign adjustments – collapse J2EE campaigns into WAS focus, collapse EAI campaigns into WMQ and WBI focus 8. Adjust tactics, positioning, volume and spend each week to meet goals

17. IBM Software Group 17 New sales tools and training to increase promoted leads Management focus to reduce No Action to less than 10% Establish SandBox for ongoing prospecting 8. Adjust tactics, positioning, volume and spend each week to meet goals

18. IBM Software Group 18 Multi-Touch Marketing Best Practices - Summary 1.Validate “on message” whole solution positioning 2.Align campaign and revenue goals by target 3.Consistent multi-touch, value-add marketing to each target 4.Invest in organization and execution model 5.Measure each tactic, each region, each rep weekly 6.Focus on lead qualification and speed of follow through 7.Train and enable Sales with tools that reinforce same value proposition 8.Adjust tactics, positioning, volume and spend each week to meet goals

19. IBM Software Group ® Multi-Touch Marketing Protecting a Late Stage Market & Winning an Early Stage Software Market February 28, 2005 Mark Morrissey, Director zSeries Software Marketing

20. IBM Software Group 20 Career Thoughts  Do what you love  Never stop learning  Be an expert on market guiding customer challenge scenarios  Learn (and appreciate) related roles by doing  Always have a mentor that’s 1+ steps ahead in your career path  Be willing to fail (and not defensive when you do)  Learn to hire and lead great people  Find and manage your life and career balance