1. 1 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Marketing Emerging Technology Products …or, “How do I generate leads for product categories the marketplace has never before heard of?” Jacques Pavlenyi IBM - Segment Executive, SMB Telecommunications, Media & Entertainment Michael O’Neil Info-Tech Indaba - Managing Director Deb Kase IBM – Segment Executive, Emerging Business Opportunities Monday, October 23, 2006

2. 2 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Answer: Get Out There, but with a Plan 1. Pick your targets 2. Build the Business Case 3. Build Awareness 4. Change Perception

3. 3 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Emerging Technology Product Challenges Product or capability that: 1. No one has ever heard of 2. Is new to the marketplace 3. Is NOT in line with your established brand

4. 4 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Keys to emerging product marketing success PerceptionAwareness Targeting Internal Marketing

5. 5 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Targeting – Who will you talk to? “The Market” ???? “The Market” ???? “everyone else” Selected Segment s Questions: Where’s the pain? Sensitivities? Can I serve this market NOW? Who do they trust? Why? Sources: Trade Pubs Blogs and online communities Events BEWARE ANALYSIS PARALYSIS

6. 6 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. IBM Targeting Example: Shifting segmentation of “digital media” customers TV Radio News Mags Retailers Gov’t Problem “Digital Media” could encompass many different areas Solution Start with IBM’s core customer base, and build out Telecom Banks Retailers News Mags Gov’t TV Musi c Mags Telecom Banks Music Game s

7. 7 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Internal Marketing “Wow, there’s lost of addressable opportunity here in Games!” “You’ve convinced me…what do you need from me?” “What can I sell today? CRM and Servers… “CRM was a dud, but customers really responded to our Servers…” “This is cool! How can I help?”

8. 8 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Marketing Emerging Technology Products …or, “How do I generate leads for product categories the marketplace has never before heard of?” Michael O’Neil Info-Tech Indaba - Managing Director

9. 9 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Agenda PerceptionPerceptionAwarenessAwareness TargetingTargeting AwarenessAwareness

10. 10 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Keys to Effective Awareness Creation The Product or Service that you are selling The environment that you are selling into The stage of the sales cycle that you are targeting The pre-existing knowledge that the buyer brings to the interaction

11. 11 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. By Way of Introduction Info-Tech Headquarters – London, Ontario More than 20,000 members Global leader providing practical IT research and advice Appeared in Sherpa in April www.infotech.com

12. 12 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Dissecting the Decision Process Identifying the business need for a solution Defining the product/service specification for the solution Identifying prospective suppliers of the solution Evaluating prospective suppliers of the solution Identifying prospective suppliers Evaluating prospective suppliers Selecting a supplier of the solution Negotiating terms with the supplier Managing the solution – identifying requirements for additions, enhancements, upgrades, etc.

13. 13 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Sources of Input/Influence: All North American IT Respondents: Type of Input N=1619 Internal Conversations dominate the early and late stages of the process

14. 14 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. US IT Respondents Internal Conversations – With Whom? N=1033

15. 15 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Sources of Input/Influence: All North American IT Respondents: Type of Input N=1619 External Message Sources are most effective in the Identification and Selection stages

16. 16 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Environment Other Web Sites/Searches Trade Shows/ Seminars Recommendations/ References Publications Internal Conversations Enterprise/Near Enterprise (> 500 Employees) SMB (> 500 Employees) SMBs are Different! Less reliance on internal conversations More use of Web Publications used more widely in the process N=557 N=1022

17. 17 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Product/Service Other Web Sites/Searches Trade Shows/ Seminars Recommendations/ References Publications Internal Conversations Customized Products/Services Commodity Products/Services Advanced Products are Different! More reliance on internal conversations “Champions” are important Less use of web, especially in the evaluation stage N=309 N=332

18. 18 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Knowledge Level is Not Directly Correlated with Size of Account

19. 19 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Knowledge Level is Not Directly Correlated with Size of Account Client and simple server applications Loosely integrated complex server applications Multiple, tightly integrated complex server applications

20. 20 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Pre-Existing Knowledge Limited Initial Understanding Advanced Initial Understanding Knowledge Changes Buyer Discussions! Buyers with limited initial understanding are still in “fact-finding mode” – discussions are with IT staff and end users Buyers with advanced understanding are in “action mode” – discussions are with senior managers N=780 N=757 Senior management Senior IT staff Line management IT Staff End users

21. 21 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. The Keys Revisited The stage of the sales cycle that you are targeting is the most important factor in determining how you build awareness Different environments require modifications of tactics Don’t try to use a “one size fits all” approach The Product or Service that you are selling has multiple impacts on awareness strategies Not only in terms of customized vs. commodity, but also with respect to sales and marketing channels Knowledge is important in moving from “investigation” to “action”!

22. 22 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Marketing Emerging Technology Products …or, “How do I generate leads for product categories the marketplace has never before heard of?” Case Study Deborah L. Kase IBM Segment Executive – Emerging Business Opportunities

23. 23 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Keys to emerging product marketing success PerceptionPerceptionAwarenessAwareness Targeting Internal Marketing Targeting

24. 24 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Case Study: IBM’s Product Development Services  Technology Collaboration Solutions started in 2002  Marketplace need confirmed via 2005 CEO study  Innovation was the biggest headache  IBM had the right, existing, and differentiated capabilities to address the opportunity

25. 25 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Awareness “You Deserve a Break Today at _________." "Don't Squeeze the _________." "_____________, The San Francisco Treat!" "Silly Rabbit! _________ Are for Kids!" "You're in Good Hands with _________”

26. 26 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Awareness Traditional Awareness:  Advertising  Websites  Banners  PR  Sponsorships  Email/newsletter advertising  Etc. Targeted Awareness:  CTO Conference  Industry/contact specific webcasts sponsored by trade associations  Sub-segment industry events  Leveraged Collaborative Innovation Work towards the goal of being the thought leader Align to a memorable message

27. 27 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Perception

28. 28 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Perception Marketing Trends to Drive Perception Changes  Build out brand awareness strategies by instilling trust among consumers  “ Marketers are packing up their campaigns and taking them on the road... Seek[ing] to forge closer emotional bonds with consumers.” – NYT Sept 2006  Marketing involving a one-to-one component is proving increasingly effective at building trust and acquiring new customers.

29. 29 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Where are we today?  Still have our name  Targeted awareness  Changing perception

30. 30 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Let’s Sum It Up 1. Pick your targets  Pick top accounts to target  Help Sales find the key decision-makers and influencers 2. Internal Marketing  Put the business case together  Take your show on the road 3. Get Out There!  Avoid “Analysis Paralysis” – it’s play time!  Don’t generate demand you can’t fulfill  Be as targeted as possible 4. Learn your lessons  What did Sales learn? What did YOU learn?  Incorporate into Round 2, and Get Back Out There!

31. 31 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. “Get out there!”

32. 32 More data on this topic available from:: © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Thank you Jacques Pavlenyi, IBM jpavleny@us.ibm.com (415)294-7743 Michael O’Neil, Info-Tech Indaba moneil@infotech.com (888) 670-8889 Deb Kase, IBM dkase@us.ibm.com (914) 514-3238