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Marketing & Sales Roundtable Total Product Planning: Delivering What Customer Requires March 2003

Marketing & Sales Roundtable Total Product Planning: Delivering What Customer Requires March 2003. Customers Demand a Total Product. Team, Investors, Advisors. Market and Brand Awareness. Market Vision. Company Core Competence. Standards, Third-Party Testing and Certification.

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Marketing & Sales Roundtable Total Product Planning: Delivering What Customer Requires March 2003

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  1. Marketing & Sales RoundtableTotal Product Planning: Delivering What Customer RequiresMarch 2003

  2. Customers Demand a Total Product Team, Investors, Advisors Market and Brand Awareness Market Vision Company Core Competence Standards, Third-Party Testing and Certification Business Model Core Product: Features/ Functionality • Key Marketing Programs • Referenceable beta customers • Website/demos Evaluation and Integration/Support Total Product Definition and Roadmap (Total Product) Partnership Strategy and Programs Customer Segment- Based Pricing Model IP, Patents * Requires customer segment-specific and, more complete versions

  3. Total Product Expectations and the Technology Adoption Life Cycle Revised Technology Adoption Life Cycle Early Majority = Pragmatists MarketGrowth Innovators = Technology Enthusiasts Laggards = Resisters TheChasm Early Adopters = Visionaries Late Majority = Followers Time Total Product Expectations

  4. Why Total Product Planning? • Knock down barriers to product adoption, particularly in mainstream markets • Establish basis for market leadership and competitive differentiation • Manage revenues and profitability over the product lifecycle • Other?

  5. Total Product Planning – Barriers and Issues • No segmentation strategy • Focus on core technology and features versus customer total product requirements • Lack of resources and focus to complete the total product; services, partners, etc. • Failure to proactively plan for evolution of total product to meet mature market expectations • Impact of current market conditions on total product requirements • Different total product requirements for different types of products and customer segments

  6. Total Product Planning Inputs/Interfaces Operations Sales • Forecasting • Product Lifecycle • Product Planning • Pricing • Forecasting • Product Lifecycle Marketing • Product Strategy • Product Planning • Launch and PR • Pricing/ Promotions • Market research Product Management Customer Service • Customer Research • Product Lifecycle Engineering • Product Strategy • Product Planning • Product Development • Program Management • Technology Research Finance • Product Planning • Pricing • Forecasting • Product Lifecycle • P&L Reporting

  7. Sample Product Lifecycle Review Process • PRODUCT LINE 1 • Review and Refine Global Product Line Plan NPP Business Assumptions & Targets Sales Analysis/Forecasting • Long-term trends • Annual forecast • Rolling and YTD sales • Channel performance • Pricing • Pricing principles • Revenue $ goals • GM % and $ goals • End of Life • Assess against ‘kill’ guidelines • Transition plan status • Market & Competitive • Analysis • Product features • Product introductions • Pricing • Channel penetration Market leadership requires active management of product lifecycles • Partner/Customer Data • Sell-in • Sell-through • Inventory • Customer profitability • Service & support • Customer satisfaction PRODUCTLINE 2 Review PRODUCTLINE 3 Review Month 1 Month 2 Month 3

  8. Significant gap Low importance Total Product Requirements Gap Analysis by Customer Segment Customer Segment 1 Customer Segment 2 Customer Segment 3 High importance

  9. Summary Startups cannot afford ‘over kill’ with total product planning but The process forces a customer-centric view into the company’s planning process and Delivering a total product is critical to long term market success

  10. Appendix

  11. Product Planning Process - Glossary

  12. Presenters • Patty Burke, Consultant Market Focus patty@mktfocus.net 408-398-4921 • Rosemary Remacle, Consultant Market Focus 408-244-0412 rosemary@mktfocus.net

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