Transcript Tsunami Product Launches

Tsunami Product Launches
How To Rip Your Product Into The Market and Ride The Wave!
Ted Finch
President, Chanimal Marketing
Chanimal – The Ultimate Resource for Software Marketing
www.Chanimal.com
Tsunami Product Launches
How To Rip Your Product Into The Market and Ride The Wave!
Ted Finch
President, Chanimal Marketing
Chanimal – The Ultimate Resource for Software Marketing
www.chanimal.com
Tsunami Product Launches
Tsunami 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 – Chanimal
Tsunami Product Launches
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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)
Product Manager’s Role
Tsunami Product Launches
• 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
Tsunami Product Launches
• 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!)
Positioning
Tsunami Product Launches
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Case Study #1
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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” (nondifferentiated product)
Positioning
Tsunami Product Launches
• 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.
Positioning
Tsunami Product Launches
• 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)
Positioning
Tsunami Product Launches
• 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.
Positioning
Tsunami Product Launches
• 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
Tsunami Product Launches
This is a re-creation. The actual fax from Winfax was MUCH worse (almost unrecognizable)
Positioning
Tsunami Product Launches
Re-creation of the original fax.
In contrast, CrossFax has never crashed during a broadcast fax…EVER!
Positioning
Tsunami Product Launches
• 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
Positioning
Tsunami Product Launches
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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.
www.chanimal.com/html/research.html
“Field of Dreams Marketing”
Tsunami Product Launches
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$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’s
Tsunami Product Launches
• Product
– Product type, name, features, benefits, competitive
positioning, buy/build or align
• Price
– Objectives (marketshare, ROI, sales growth, longterm 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’s
Tsunami Product Launches
Product
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Your unique positioning gives you the “hooks” to promote.
Price
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You could leverage introductory promotional pricing
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Special pricing for upgrades
Rebates in retail
Bundles
You could leverage your sales terms
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Case Study # 1
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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)
You must decide the
first 3 P’s before you
can determine 4th P how to leverage and
promote.
Placement
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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
Case Study # 2
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Price Case Study #1
Tsunami Product Launches
• 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 #2
Tsunami Product Launches
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Price positioning – always an objection
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Arm sales with product price positioning (set-top box example)
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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.
“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!
150
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Local Toll
4%
Internet
7%
50
Paging
2%
Calling Card
2%
Local Phone
29%
Cellular
12%
0
1999
2001
2005
E-Commerce
PPV
T-Commerce
I-TV
Interactive Services
HIS Enhanced Services
High Speed Internet
Standard ISP
Long Distance
Features
Local Voice
Long Distance
20%
Cable/DBS TV
24%
Pre-Launch Preparation
Tsunami Product Launches
4 P’s – Plus Collateral
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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
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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
Where To Spend Your $
Tsunami Product Launches
• 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 - PR
Tsunami Product Launches
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PR (1/7th the cost, 15 times more
believable – always start with PR!)
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Setup
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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
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Helped launch Red Storm Entertainment
with noted author Tom Clancy
Press event held on USS Nuclear
Submarine Cheyenne – attended by ABC,
CBS, MTV, etc.
Promotions - PR
Tsunami Product Launches
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PR
– Internal PR (80% internal, 20% external for launch & new press)
• Proactive campaigning
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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
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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-line
Tsunami Product Launches
• 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 online forums, affiliate program
www.wilsonweb.com (subscribe to news)
Promotions - Alliances
Tsunami Product Launches
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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 - Alliances
Tsunami Product Launches
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)
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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 - Ads
Tsunami Product Launches
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Advertising – Mainly display ads in high-tech
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Expensive (must have budget)
Strong proponent
Strong opponent
Believe in direct response with positive ROI
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Greatest abuse in high tech – most don’t pull
Created by designers with no “marketing” background
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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
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Best way to brand is to buy product (put the Levi on the bum)
Little belief in “image ad” (except image products (Lexus))
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.
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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)
Promotions - Ads
Tsunami Product Launches
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Advertising
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Ads that sell (produce leads)
and maximize ROI follow the…
Persuasive format
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Credibility
Headline
Theory…
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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)
Headline
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Headline
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Headline
Result
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Solution
Problem
Design follows “Z” format
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Attention
Credibility
Problem
Solution
Best Solution
Overcome Objections
Visualization
Call to Action
Attention
Visualization
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Overcome objections
Call To
Action
Ads - Examples
Tsunami Product Launches
Reverse type, justified
margins, buried in design
Reverse type (hard to read),
no special offer, graphic
catches attention, would you
read?
Basic quick review
of current ads
Graphic element tells you
what? Reverse type.
Has persuasive elements, Z
format, short columns, shows
product, persuasive copy,
screen shot visualization,
strong offer, readability
Strong direct response
• FREE (strongest word)
• 30 day trial (no risk)
• Special offer (enticement)
• Unique URL & Landing page
• Phone number (tracking)
• Impending event (deadline)
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
Promotions - Ads
Tsunami Product Launches
• 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 - Events
Tsunami Product Launches
• Event marketing
– Roadshow for resellers and
prospects
• Prospects 1st half
• Resellers 2nd half
– Trade shows
• Attempt to exhibit in alliance booth
• If own:
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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-Up
Tsunami Product Launches
A = 24-48 hours
B = 2 weeks
C = Database
Launch Day – Crash the Beach
Tsunami Product Launches
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Tsunami Wave – it all hits at once
– Entertainment industry
• Everything is lined up (posters, ads, toys, websites, reviews)
– Microsoft DOS 5.0, Windows 95
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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 Beach
Tsunami Product Launches
What does a tsunami
campaign it look like?
Reseller Promotions
Tsunami Product Launches
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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)
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Where do we spend our money to get the greatest return?
Reseller Promotions
Tsunami Product Launches
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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
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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%
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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 - ROI
Tsunami Product Launches
• 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 PR
Tsunami Product Launches
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Items
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Press Release – news wire services (each x $550 = $20k). ROI: The Press Releases are required to help generate hits
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
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Press Kits (1,000 x $4, Plus $5k x 3 Reprints) - $19k ROI: Cost. Materials required to run PR campaigns
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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.
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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).
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ROI for press is calculated with a formula called the “Media Quality Quotient” analysis.
Channel Marketing
Tsunami Product Launches
• 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.
Advertising
Tsunami Product Launches
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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 #
Placemen
ts
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/ROI
Tsunami Product Launches
•
•
•
•
•
•
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, presell 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 Only
Tsunami Product Launches
Marketing (Salaries, Overhead, MarCom (Ads, collateral,
% of Company Revenue
demos, PR, events))
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).
Summary
Tsunami Product Launches
– 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)
Tsunami Product Launches