Tsunami Product Launches

1
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
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
2
(No Transcript)
3
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
4
Tsunami Product Launches
Tsunami Product Launches
Tsunami Product Launches

• Background
• Product Managers 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)

5
Background Chanimal
Tsunami Product Launches
Tsunami Product Launches

• 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 worlds 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)

6
Product Managers Role
Tsunami Product Launches
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.

7
Positioning
Tsunami Product Launches
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 developedby 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!)

8
Positioning
Tsunami Product Launches
Tsunami Product Launches

• Case Study 1
• The product manager is the case study--not the
  software
• CodeWarrior for Windows (an IDE for software
  development)
• Developed by copying Microsofts features
• The Product Managers 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 shouldnt take
  seconds to match)
• Didnt work, only 2 market share. Reason? The
  PMM said, Missing a few of Microsofts
  features. (buzzer)
• What is wrong with this products positioning?
• Hint it wasnt determined before it was
  developed and turned into a me to
  (non-differentiated product)

9
Positioning
Tsunami Product Launches
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 systemwe had a unique
  advantage.

10
Positioning
Tsunami Product Launches
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)

11
Positioning
Tsunami Product Launches
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 its 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.

12
Positioning
Tsunami Product Launches
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

13
Positioning
Tsunami Product Launches
Tsunami Product Launches
This is a re-creation. The actual fax from Winfax
was MUCH worse (almost unrecognizable)
14
Positioning
Tsunami Product Launches
Tsunami Product Launches
Re-creation of the original fax.
In contrast, CrossFax has never crashed during a
broadcast faxEVER!
15
Positioning
Tsunami Product Launches
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 didnt 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

16
Positioning
Tsunami Product Launches
Tsunami Product Launches

• Resources
• I highly recommend Rick Chapmans book, The
  Product Marketing Managers 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
17
Field of Dreams Marketing

• 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 developedor it often just sits. Sounds
obvious, but does management and your budget
agree?
18
Marketing Mix 4 Ps

• Product
• Product type, name, features, benefits,
  competitive positioning, buy/build or align
• Price
• Objectives (marketshare, ROI, sales growth,
  long-term 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 Ps of the
marketing mix is the framework. You must decide
the first 3 Ps before you can determine how to
promote.
19
Marketing Mix 4 Ps

• Product
• Your unique positioning gives you the hooks to
  promote.
• Price
• You could leverage introductory promotional
  pricing
• Special pricing for upgrades
• Rebates in retail
• Bundles
• You could leverage your sales terms
• Financing (i.e., GE Capital advantageGE
  Security)
• Tape a month (Family Entertainment Network)
• Expose competitors 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)
• Placement
• 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 1
You must decide the first 3 Ps before you can
determine 4th P - how to leverage and promote.
Case Study 2
20
Price Case Study 1

• 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 packagebut wasnt being leveraged to
  close the sale, but given away

21
Price Case Study 2

• Price positioning always an objection
• Arm sales with product price positioning (set-top
  box example)
• 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 yearsafter the
difference!
22
Pre-Launch Preparation
Tsunami Product Launches
Tsunami Product Launches
4 Ps Plus Collateral

• 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

• 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 Reviewers guide
• 35 mm slides, Web versions
• Hi-res .jpg of key executives and products
• Logo usage guidelines

23
Where To Spend Your
Tsunami Product Launches
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 loyaltyan 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

24
Promotions - PR

• PR (1/7th the cost, 15 times more believable
  always start with PR!)
• Setup
• 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
• Helped launch Red Storm Entertainment with noted
  author Tom Clancy
• Press event held on USS Nuclear Submarine
  Cheyenne attended by ABC, CBS, MTV, etc.

25
Promotions - PR

• PR
• Internal PR (80 internal, 20 external for
  launch new press)
• Proactive campaigning
• 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 companys unique
  value
• Place success and case stories
• On-line ombsbudsman (viral marketing, crisis
  detection management)
• Submit for editorial schedules
• Create reviewers guide sets criteria for review
  (Goldmine 8 editors 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)

26
Promotions On-line

• 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 on-line forums, affiliate
  program
• www.wilsonweb.com (subscribe to news)

27
Promotions - Alliances

• 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)

28
Promotions - Alliances

• Alliance Case Study - HRW
• Smithsonian for online content
• Dell
• Product (PM and Dev)
• HRW had US History course that required 5 PCs
  per classroom to use (didnt know how to sell
  PCs)
• Dell needed content to justify the PCs in the
  class (didnt 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)
• 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 others 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 others trade show booth
• Acid test Make more money with the alliance
  than without

29
Promotions - Ads

• Advertising Mainly display ads in high-tech
• Expensive (must have budget)
• Strong proponent
• Strong opponent
• Believe in direct response with positive ROI
• Best way to brand is to buy product (put the Levi
  on the bum)
• Little belief in image ad (except image
  products (Lexus))
• Greatest abuse in high tech most dont pull
• Created by designers with no marketing
  background
• But they look great, even if they dont maximize
  leads
• Rule run from agencies that flaunt design
  awards
• Use corporate templates, again created by
  designers not marketing pros
• Need to design templates that follow best
  marketing concepts
• Most high-tech marketing departments come from
  non-marketing backgrounds (engineering, sales,
  etc.). Dont know the marketing framework, cant
  direct design since they dont know the
  difference.
• 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 VPs of Marketing Ive met are the worst
  culprits (OK operations, good networkers, bad
  mentors)

30
Promotions - Ads

• Advertising
• Ads that sell (produce leads) and maximize ROI
  follow the
• Persuasive format
• Attention
• Credibility
• Problem
• Solution
• Best Solution
• Overcome Objections
• Visualization
• Call to Action
• Design follows Z format
• Theory
• Result
• 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)

31
Ads - Examples

• Persuasive Elements
• Attention
• Credibility
• Problem
• Solution
• Best Solution
• Objections
• Visualization
• Action

Reverse type, justified margins, buried in design
Reverse type (hard to read), no special offer,
graphic catches attention, would you read?
Has persuasive elements, Z format, short columns,
shows product, persuasive copy, screen shot
visualization, strong offer, readability
Graphic element tells you what? Reverse type.

• Strong direct response
• FREE (strongest word)
• 30 day trial (no risk)
• Special offer (enticement)
• Unique URL Landing page
• Phone number (tracking)
• Impending event (deadline)

Basic quick review of current ads
Not always the prettiest, but the format pulls
like a worm in a stocked pond
32
Promotions - Ads

• Advertising
• Determine objectives
• Review competitors 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

33
Promotions - Events

• Event marketing
• Roadshow for resellers and prospects
• Prospects 1st half
• Resellers 2nd half
• Trade shows
• Attempt to exhibit in alliance booth
• If own
• 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

34
Events Follow-Up
A 24-48 hours B 2 weeks C Database
35
Launch Day Crash the Beach
Tsunami Product Launches
Tsunami Product Launches

• Tsunami Wave it all hits at once
• Entertainment industry
• Everything is lined up (posters, ads, toys,
  websites, reviews)
• Microsoft DOS 5.0, Windows 95
• Product was reviewed
• Applications were developed
• Drivers were completed
• All product was sitting in retail for 1202 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 dont take out the
  news or cant leverage PR (dont want old news)
• Which has more impact?
• 100 normal waves
• 1 wave 100x size

Is this a trick question?
36
Launch Day Crash the Beach
Tsunami Product Launches
Tsunami Product Launches

• What does a tsunami campaign it look like?

37
Reseller Promotions
Tsunami Product Launches
Tsunami Product Launches

• 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)
• Where do we spend our money to get the greatest
  return?

38
Reseller Promotions
Tsunami Product Launches
Tsunami Product Launches

• 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
• 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
• 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

39
Get Your Money - ROI
Tsunami Product Launches
Tsunami Product Launches

• Tracking Leveraging Results
• Build each promotion from scratch based on the
  expected ROI
• Following are methods to justify your
  budgetsshowing ROI and industry ratios

40
Promotional PR

• Items
• Press Release news wire services (each x 550
  20k). ROI The Press Releases are required to
  help generate hits
• Press Kits (1,000 x 4, Plus 5k x 3 Reprints) -
  19k ROI Cost. Materials required to run PR
  campaigns
• The budget only accounts for the cost and ROI for
  each expensewhich 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.
• 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).
• ROI for press is calculated with a formula called
  the Media Quality Quotient analysis.

GENERIC EXAMPLE OF POSSIBLE BUDGET INFO
41
Channel Marketing

• 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.

GENERIC EXAMPLE OF POSSIBLE BUDGET INFO
42
Advertising

• 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.

GENERIC EXAMPLE OF POSSIBLE BUDGET INFO
43
Budget Summary Expense/ROI

• 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 meetingsonly ASIS 03.
  Expense 338. Return 513k
• Customer Reseller Conference customer,
  consultant and reseller support, pre-sell
  on-going releases. Expense 320k (320 CASI,
  110 other divisions).
• Collateral product catalog, price lists, CDs
  (support material), reseller sales kits, data
  sheets, etc. Expense 394. Return Cost.
  Required to sell the products.

GENERIC EXAMPLE OF POSSIBLE BUDGET INFO
44
Industry Ratios Marketing Only
GENERIC EXAMPLE OF POSSIBLE BUDGET INFO
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).

45
Summary
Tsunami Product Launches
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)

46
Tsunami Product Launches
Tsunami Product Launches
47
(No Transcript)