1 Creating an Entrepreneurial Marketing Environment February 2010

2  Changes in the Business Environment  How Marketing is Adapting  Defining the Role of Marketing  Marketing Expertise  Success Factors  Customer Impact to Marketing Activities  Insight to Cisco Marketing Activities  Take Away List Agenda

3  True Impact of a Global Economy  Diverse and Evolving Competitors  Dynamic Customer & Partner Base  Changing Composition and Definition of Workforce  Communication “Noise”  Continued Geopolitical and Social Unrest Direct Ownership of Resources not a Critical Factor Business Environment Has Changed!

4  Re-examination of Roles, Skills/Expertise, Career Paths  Reporting Structures Redefined  Challenge to Balance Short Term and Long Term Objectives  Budgets Impacting Staffing and Centers of Excellence (In-house vs. Outsourcing)  New Communication Model? Changes have Required Marketing Organizations and Functions to Adapt

5 “It’s Marketing’s role to keep our fingers on the pulse of each market segment and lead the company in defining the market requirements, shaping markets and solutions, and taking our message to customers.” Sue Bostrom, EVP and CMO, Cisco Systems How are Organizations Defining the Role of Marketing?

6 Good News: Foundation of Marketing has not Changed - Lessons from the Past (1958) “I don’t know who you are I don’t know your company I don’t know your company’s product I don’t know what your company stands for I don’t know your company’s customers I don’t know your company’s record I don’t know your company’s reputation Now—what was it you wanted to sell me?”

7  Plan  Understand  Analyze  Anticipate and Identify Change  Communicate  Exploit Success  Foster Relationships But Marketing Expertise and Functions are Evolving – Entrepreneurial Focus

8  Plan Set the proper working environment Create best practices and methodologies Ensure tools and infrastructure match long term requirements. Don’t let the tool drive your business Agree on strategic objectives and necessary KPI’s to measure true business success  Understand Know your product, market, customer, competition, audience, and company (+/-) and think global  Analyze Content Management and Data model but don’t get fooled by numbers and statistics of trends, leads, & sales Identify patterns, trends beyond basic data – have insight and question! Insight: Success Factors

9  Identify and Anticipate Change Brain storm, debate and discuss Create hypothesis and validate Look at the future and understand the past: “Organizations are doomed if they do not respect history”  Communicate Proper communication to diverse audiences Importance of Social Media Consistency of messaging  Exploit Success Windows of opportunity (Cost effective and timely)  Foster Relationships Create loyalty, pride, and trust Insight: Success Factors

10 Innovators “Need it” Early Adopters Risk Takers Generalists Follow the market Trends Laggards I will only buy it As necessary Left Behinds No way Adoption Chasm Generalists will ensure your success Laggards will support a cash cow portfolio Insight: Customer Impact on Business and Profitability within the Product Adoption Lifecycle

11 Marketing Outcome Medium Long Time Frame Time Frame Thought Leadership Thought Leadership Market Value Market Value Revenue Growth Short Insight: Adoption and Cisco Marketing Role Generate Demand Accelerate Market Transitions Establish Preference for Cisco

12  Shape the direction of markets by providing thought leadership and influencing analysts, press, customers, partners, and employees  Build pipeline, accelerate demand for Sales  Bring market and customer insight; systems and tools, and unique capabilities to the company Foster Collaboration Operational Excellence Establish Preference for Cisco Accelerate Market Transitions Generate Demand Insight: Cisco Marketing Value Proposition  Build value of Cisco brand, improving price premium, margin infrastructure and stock price  Build customer equity, increasing loyalty  Open new buying centers, increasing wallet share

13  Experience is Critical Pay your dues, learn, have patience Know Your Product, Market, Customer, Audience, Company Be Flexible and Evolve Your Self and Organization: Early Adopter  Develop Your Skill: Expert vs. Generalist Need to take risks, make moves to obtain exposure in various areas  Career Planning vs. Work/Life Balance  Think Outside the Box and Be Creative Take Away List

14 The best way to predict the future is to create it. - Peter F. Drucker

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