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Solution Marketing Lessons
             From the Apple iPad
                                Steve Robins
                                 April 9, 2011




© 2011
         The Solution Marketing Blog
Steve Robins

   10+ years in solution marketing
         – Expertise in product solution and industry marketing
                        product,
         – Experience: FirstBest Systems, Solution Marketing
           Strategies, EMC Documentum, KANA,
           The Yankee Group

   Founder, The Solution Marketing Blog,
    Top-rated solution marketing blog
   Inbound Marketing Certified
    Professional

            s.robins@SolutionMKT.com
            LinkedIn.com/in/SteveRobins1
            Twitter.com/SteveRobins
            SolutionMarketingBlog.com




© 2011                            www.SolutionMarketingBlog.com   p2
Apple iPad… Is This a….
        iPad…

                                        Tablet computer?
                                        Product?
                                        A t?
                                         Art?
                                        PC?
                                        Post-PC device?
                                        Media platform?
         Tablet Device
          Apple iPad


© 2011                   www.SolutionMarketingBlog.com      p3
Apple iPad… Is This a….
        iPad…




                                       Content
                                       Consumption
                                                p
                                       Solution

         Tablet Device
          Apple iPad


© 2011                   www.SolutionMarketingBlog.com   p4
Apple iPad…
        iPad…
  Actually, It’s a Content Consumption Solution…




                                         Pictures             Movies




         Tablet Device                    Music               Apps
          Apple iPad                                      Email, Games,
                                                         Productivity, more

© 2011                   www.SolutionMarketingBlog.com                        p5
…With Integrated Tools to Obtain Content




                                          Music                Apps,
                                          iTunes         Mag. Subscriptions
                                                              AppStore




         Tablet Device                  Bookstore             Browser
          Apple iPad                    iBookstore             Safari


© 2011                   www.SolutionMarketingBlog.com                        p6
Why It Matters – Putting It in Perspective


         Overall PC sales dropping
         from 15% growth to 10.5%
             because o tab ets
                     of tablets.
         Consumer laptops hit most.
               (Gartner 2011)
                                                Apple share will drop from
                                                86% today to 75% as new
                                                products enter the market
                                                   that Apple created




© 2011                  www.SolutionMarketingBlog.com                        p7
Apple iPhone/iPod/iPad
        iPhone/iPod/iPad
  Quarterly Shipments 2011 (Calendar Qtrs)
                                     Qtrs)

                                    50

                                    45

                                    40

                                    35
                              ped
         Million of Units Shipp




                                    30

                                    25                                             iPhone
                                                                                   iPod
                                    20
                                                                                   Ipad
               ns




                                    15

                                    10

                                     5

                                     0
                                         Q1          Q2          Q3           Q4




© 2011                                        www.SolutionMarketingBlog.com                 p8
Why It Matters

                                         The Chasm                        Main Street
                     rs
Relative % of Customer




                                                                                   The Solution Opportunity


                                                         The Tornado

                                                            Tablets
                                                                                            End of Life
                           Early Lif
                           E l Life                        Bowling
                                                            Alley

                  Innovators Early Adopters Early Majority/            Late Majority      Laggards          Time
                  Technology Visionaries     Pragmatists               Conservatives      Skeptics
                  Enthusiasts

                          Customers want technology          Customers want solutions and convenience
                               and performance                                                     Sources: E.M. Rogers, G. Moore




© 2011                                                www.SolutionMarketingBlog.com                                     p9
What is a Solution Anyways?



                                  so·lu·tion
                                 noun   sə-ˈlü-shən

                     a: an action or process of
                        solving a problem
                     b: an answer to a problem




© 2011          www.SolutionMarketingBlog.com           p10
Why Solutions?



  Customers want t
  C t           t to
  solve problems or
  meet needs.
  They do not want to buy
  p
  products.
© 2011         www.SolutionMarketingBlog.com   p11
The Content Consumption Problem/Manifesto

   I want lots of content
   I want different types of content
   I d ’t want to work hard to get that
      don’t   tt      kh dt       t th t
    content
   I don’t want to use different devices for
    that content
   I want it to be easy


© 2011           www.SolutionMarketingBlog.com   p12
What is Solution Marketing?



                        so·lu·tion mar·ket·ing
                            noun   sə-ˈlü-shənˈmär-kə-tiŋ

                    The process of defining
                                   defining,
                    educating, and providing access
                    to complete and integrated
                    solutions
                      l ti
                    that deliver value
                    by helping customers to solve
                    their problems.




© 2011           www.SolutionMarketingBlog.com                 p13
Solution Strategy
         S l ti   St t




© 2011      www.SolutionMarketingBlog.com   p14
Complete Solution to the Customer’s Problem

                                                     Solution

                               People




               Technology/    Services/
               Product(s)s
                                           Process
                              Support



                               Content/
                             Information




© 2011           www.SolutionMarketingBlog.com             p15
Solution

  Complete Solution to the Customer’s Problem
                                                                                     People
                                                                                     •   User interfaces
         Technology
                 gy                                                                  •   Training
                                                                                                g
         OEM & Partners                                                              •   Support
         •   Hardware and                                 People                     •   Best practices
             infrastructure                                                          •   Domain expertise
         •   Applications
         •   Complementary
             C      l     t
             technologies                                                                     Process
         •   Integrations                                                                     •   Process optimization
         •   Custom coding               Technology/     Services/                            •   Integrated experiences
                                         Product(s)s
                                                                           Process            •   ROI studies
                                                         Support
                                                                                                  Reengineering

             Content/
             Information
             •   Data                                    Content/              Services
             •   Content, documents,                                           •   Communications services, hosting
                                                       Information             •   Support
                 images
             •   External data sources                                         •   Strategy
             •   Data security, data                                           •   Project management
                 policies
                   li i                                                        •   Risk management
                                                •   Consumer /Enterprise       •   Custom coding
                                                •   Enterprise                 •   Integration services

© 2011                                     www.SolutionMarketingBlog.com                                           p16
The Apple iPad Solution

                                                                  Ease of use
                                                                  Integrated experience
                                                                  C i di l
                                                                   Crisp display
                                                                  Not designed for one
                                           People
             Accessories                                          particular user

    Tablet
               Maps
                           Technology/    Services/
               Email                                   Process
                           Product(s)s    Support
                                                                 Integrated Stores
               Twitter
                                                                     Apps/Mags
         65k apps
                                           Content/                  Music Store
               Music                     Information                 Books
               Photos       Videos                                   YouTube (free)

               Browser      Books


© 2011                       www.SolutionMarketingBlog.com                            p17
Solution Scorecard

                    Dimension                      Rating                  Comments
    Completeness
       p
    • People/users, fit to needs                     4      Exceptional experience but users not ID’d

    • Process                                        4      Integrated; multiple stores may be confusing

    • Content/Information                            5      Full breadth

    • Technology: Hardware and software              5      Excellent breadth and quality

    • Services & support                             4      Mobile – cell, WiFi

    Strategy
    • Differentiated offering – unique in market     5      Unique

    • Partners: includes tech, apps, and content
                                pp                   3      Includes many techs – lacks Adobe Flash

    • Partner-friendly business model (win-win)      2      Evolving
                                                            Low points: subscriptions, friction over book
                                                            prices

    Total                                          32/40


© 2011                             www.SolutionMarketingBlog.com                                            p18
Solution Marketing Strategy
     S l ti   M k ti    St t




© 2011       www.SolutionMarketingBlog.com   p19
Traditional Marketing – 4 Ps


                                                               Promotion



                                          Product
                                                                 P
                                                                              Price

                                           P             The 4 P’s
                                                                              P
                                                       Place


                                                        P

Derived from SIVA model, Chekitan & Dev


 © 2011                                       www.SolutionMarketingBlog.com           p20
Solution Marketing Strategy
     The 4 P’s - updated
                                                                          “Where can I learn more
                                                            Education     about it?”


   “How can I solve                      Solution                             Value   “What is the
   my problem?”                                             SEVA                      benefit and total
                                                     Solution Marketing
                                                                                      cost of this
                                                                                      solution?
                                                                                        l ti ?
                                                      Access


                      “Where can I find it?
                       Where            it?”


                                  Solution Marketing answers 4 customer questions
Derived from SIVA model, Dev & Schultz


 © 2011                                       www.SolutionMarketingBlog.com                       p21
Solution Marketing                                     Education


  Education – Message


          Customer: “Where can I learn more about it?”
                     Where                        it?

   Message – It’s About Relevance
         –Speak the customer’s language
         –Business benefits, not technical features
   Match the message to the reality
   Create a dialog with the market




© 2011                 www.SolutionMarketingBlog.com        p22
Value
                                                                       Value = Benefit - TCO
  Value-
  Value-Based Pricing

                                                                               Assume that vendor charges fair price
                                                                               for features provided
         Business Benefit ($)




                                                Lost revenue

                                Customer                                                      Benefit
                                Benefit                                                 Unneeded features



                                                     Customer         Benefit
                                                     Benefit                                 Price
         B




                                                                    Customer                  Customer
                                                                    Benefit                   Benefit
                                     A                    B             C                            D
                                High Value          Fair Value      Poor Value                Fair Value
                                Lost software       Price matches   Unneeded                  Price matches
                                revenue             benefit         features                  benefit


                                   Solution use-case drives benefit and value
                                            use case


© 2011                                          www.SolutionMarketingBlog.com                                           p23
Solution Marketing                                        Access

  Access


                    Customer: “Where can I find it?”
                               Where            it?

   Customer-friendly sales:
                    y
         – Where, when how the customer wants to buy

   iPad: access to iPad device as well as apps,
    content




© 2011                      www.SolutionMarketingBlog.com     p24
Solution Marketing Scorecard

                     Dimension                    Rating                 Comments
    Education and Engagement
    • Relevant, targeted message                    5      User-speak, not tech-speak

    • Message matches reality                       5      User experience is consistent with reality

    • Company engages in dialog with the            4      • Apple speaks with its actions
                                                           • Apple SVP Prod Marketing ranked as top
      market                                                 social CMO
                                                           • Minimal social media
                                                           • Heavy on branding, experience

    •U
     Uses right channels t reach th audience
           i ht h     l to     h the di             5      • Message reaches market broadly

    Value
    • Customers willing to pay solution price       5
    • Does not include low-value features           4      Apple is leader in spare design

    • Does include features customers want          4.5
    • Price is profitable to the vendor
               p                                    5


© 2011                            www.SolutionMarketingBlog.com                                         p25
Solution Marketing Scorecard

                    Dimension                    Rating            Comments
    Access
    • Product available through channels           3
      convenient to customers
    • Solution components available through
                  p                      g         5
      convenient channels
    • Sustainable business model for partners      3      Tradeoff: volume for lower
                                                          profit
    • Partners offer quality products              5      App certification program
    Solution Marketing                            53.5/
                                                   60
    Solution                                     32/40

    Total                                         85.5/
                                                  100


© 2011                           www.SolutionMarketingBlog.com                         p26
Apple iPad - Solution Marketing Lessons

  Solution approach can revive weak
   market
  Simple device
  Integrated user experience
       g             p
  Must be win-win for channel



© 2011           www.SolutionMarketingBlog.com   p27
Thank You

         Steve Robins                            s.robins@SolutionMKT.com
                                                 LinkedIn.com/in/SteveRobins1
                                                 LinkedIn com/in/SteveRobins1
         Founder
         Solution Marketing Blog                 Twitter.com/SteveRobins
                                                 SolutionMarketingBlog.com




         www.SolutionMarketingBlog.com




© 2011                      www.SolutionMarketingBlog.com                       p28

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Solution Marketing Lessons from the Apple iPad - Steve Robins at BarCamp Boston, April 2011

  • 1. Solution Marketing Lessons From the Apple iPad Steve Robins April 9, 2011 © 2011 The Solution Marketing Blog
  • 2. Steve Robins  10+ years in solution marketing – Expertise in product solution and industry marketing product, – Experience: FirstBest Systems, Solution Marketing Strategies, EMC Documentum, KANA, The Yankee Group  Founder, The Solution Marketing Blog, Top-rated solution marketing blog  Inbound Marketing Certified Professional [email protected] LinkedIn.com/in/SteveRobins1 Twitter.com/SteveRobins SolutionMarketingBlog.com © 2011 www.SolutionMarketingBlog.com p2
  • 3. Apple iPad… Is This a…. iPad…  Tablet computer?  Product?  A t? Art?  PC?  Post-PC device?  Media platform? Tablet Device Apple iPad © 2011 www.SolutionMarketingBlog.com p3
  • 4. Apple iPad… Is This a…. iPad… Content Consumption p Solution Tablet Device Apple iPad © 2011 www.SolutionMarketingBlog.com p4
  • 5. Apple iPad… iPad… Actually, It’s a Content Consumption Solution… Pictures Movies Tablet Device Music Apps Apple iPad Email, Games, Productivity, more © 2011 www.SolutionMarketingBlog.com p5
  • 6. …With Integrated Tools to Obtain Content Music Apps, iTunes Mag. Subscriptions AppStore Tablet Device Bookstore Browser Apple iPad iBookstore Safari © 2011 www.SolutionMarketingBlog.com p6
  • 7. Why It Matters – Putting It in Perspective Overall PC sales dropping from 15% growth to 10.5% because o tab ets of tablets. Consumer laptops hit most. (Gartner 2011) Apple share will drop from 86% today to 75% as new products enter the market that Apple created © 2011 www.SolutionMarketingBlog.com p7
  • 8. Apple iPhone/iPod/iPad iPhone/iPod/iPad Quarterly Shipments 2011 (Calendar Qtrs) Qtrs) 50 45 40 35 ped Million of Units Shipp 30 25 iPhone iPod 20 Ipad ns 15 10 5 0 Q1 Q2 Q3 Q4 © 2011 www.SolutionMarketingBlog.com p8
  • 9. Why It Matters The Chasm Main Street rs Relative % of Customer The Solution Opportunity The Tornado Tablets End of Life Early Lif E l Life Bowling Alley Innovators Early Adopters Early Majority/ Late Majority Laggards Time Technology Visionaries Pragmatists Conservatives Skeptics Enthusiasts Customers want technology Customers want solutions and convenience and performance Sources: E.M. Rogers, G. Moore © 2011 www.SolutionMarketingBlog.com p9
  • 10. What is a Solution Anyways? so·lu·tion noun sə-ˈlü-shən a: an action or process of solving a problem b: an answer to a problem © 2011 www.SolutionMarketingBlog.com p10
  • 11. Why Solutions? Customers want t C t t to solve problems or meet needs. They do not want to buy p products. © 2011 www.SolutionMarketingBlog.com p11
  • 12. The Content Consumption Problem/Manifesto  I want lots of content  I want different types of content  I d ’t want to work hard to get that don’t tt kh dt t th t content  I don’t want to use different devices for that content  I want it to be easy © 2011 www.SolutionMarketingBlog.com p12
  • 13. What is Solution Marketing? so·lu·tion mar·ket·ing noun sə-ˈlü-shənˈmär-kə-tiŋ The process of defining defining, educating, and providing access to complete and integrated solutions l ti that deliver value by helping customers to solve their problems. © 2011 www.SolutionMarketingBlog.com p13
  • 14. Solution Strategy S l ti St t © 2011 www.SolutionMarketingBlog.com p14
  • 15. Complete Solution to the Customer’s Problem Solution People Technology/ Services/ Product(s)s Process Support Content/ Information © 2011 www.SolutionMarketingBlog.com p15
  • 16. Solution Complete Solution to the Customer’s Problem People • User interfaces Technology gy • Training g OEM & Partners • Support • Hardware and People • Best practices infrastructure • Domain expertise • Applications • Complementary C l t technologies Process • Integrations • Process optimization • Custom coding Technology/ Services/ • Integrated experiences Product(s)s Process • ROI studies Support Reengineering Content/ Information • Data Content/ Services • Content, documents, • Communications services, hosting Information • Support images • External data sources • Strategy • Data security, data • Project management policies li i • Risk management • Consumer /Enterprise • Custom coding • Enterprise • Integration services © 2011 www.SolutionMarketingBlog.com p16
  • 17. The Apple iPad Solution  Ease of use  Integrated experience  C i di l Crisp display  Not designed for one People Accessories particular user Tablet Maps Technology/ Services/ Email Process Product(s)s Support Integrated Stores Twitter Apps/Mags 65k apps Content/ Music Store Music Information Books Photos Videos YouTube (free) Browser Books © 2011 www.SolutionMarketingBlog.com p17
  • 18. Solution Scorecard Dimension Rating Comments Completeness p • People/users, fit to needs 4 Exceptional experience but users not ID’d • Process 4 Integrated; multiple stores may be confusing • Content/Information 5 Full breadth • Technology: Hardware and software 5 Excellent breadth and quality • Services & support 4 Mobile – cell, WiFi Strategy • Differentiated offering – unique in market 5 Unique • Partners: includes tech, apps, and content pp 3 Includes many techs – lacks Adobe Flash • Partner-friendly business model (win-win) 2 Evolving Low points: subscriptions, friction over book prices Total 32/40 © 2011 www.SolutionMarketingBlog.com p18
  • 19. Solution Marketing Strategy S l ti M k ti St t © 2011 www.SolutionMarketingBlog.com p19
  • 20. Traditional Marketing – 4 Ps Promotion Product P Price P The 4 P’s P Place P Derived from SIVA model, Chekitan & Dev © 2011 www.SolutionMarketingBlog.com p20
  • 21. Solution Marketing Strategy The 4 P’s - updated “Where can I learn more Education about it?” “How can I solve Solution Value “What is the my problem?” SEVA benefit and total Solution Marketing cost of this solution? l ti ? Access “Where can I find it? Where it?” Solution Marketing answers 4 customer questions Derived from SIVA model, Dev & Schultz © 2011 www.SolutionMarketingBlog.com p21
  • 22. Solution Marketing Education Education – Message Customer: “Where can I learn more about it?” Where it?  Message – It’s About Relevance –Speak the customer’s language –Business benefits, not technical features  Match the message to the reality  Create a dialog with the market © 2011 www.SolutionMarketingBlog.com p22
  • 23. Value Value = Benefit - TCO Value- Value-Based Pricing Assume that vendor charges fair price for features provided Business Benefit ($) Lost revenue Customer Benefit Benefit Unneeded features Customer Benefit Benefit Price B Customer Customer Benefit Benefit A B C D High Value Fair Value Poor Value Fair Value Lost software Price matches Unneeded Price matches revenue benefit features benefit Solution use-case drives benefit and value use case © 2011 www.SolutionMarketingBlog.com p23
  • 24. Solution Marketing Access Access Customer: “Where can I find it?” Where it?  Customer-friendly sales: y – Where, when how the customer wants to buy  iPad: access to iPad device as well as apps, content © 2011 www.SolutionMarketingBlog.com p24
  • 25. Solution Marketing Scorecard Dimension Rating Comments Education and Engagement • Relevant, targeted message 5 User-speak, not tech-speak • Message matches reality 5 User experience is consistent with reality • Company engages in dialog with the 4 • Apple speaks with its actions • Apple SVP Prod Marketing ranked as top market social CMO • Minimal social media • Heavy on branding, experience •U Uses right channels t reach th audience i ht h l to h the di 5 • Message reaches market broadly Value • Customers willing to pay solution price 5 • Does not include low-value features 4 Apple is leader in spare design • Does include features customers want 4.5 • Price is profitable to the vendor p 5 © 2011 www.SolutionMarketingBlog.com p25
  • 26. Solution Marketing Scorecard Dimension Rating Comments Access • Product available through channels 3 convenient to customers • Solution components available through p g 5 convenient channels • Sustainable business model for partners 3 Tradeoff: volume for lower profit • Partners offer quality products 5 App certification program Solution Marketing 53.5/ 60 Solution 32/40 Total 85.5/ 100 © 2011 www.SolutionMarketingBlog.com p26
  • 27. Apple iPad - Solution Marketing Lessons Solution approach can revive weak market Simple device Integrated user experience g p Must be win-win for channel © 2011 www.SolutionMarketingBlog.com p27
  • 28. Thank You Steve Robins [email protected] LinkedIn.com/in/SteveRobins1 LinkedIn com/in/SteveRobins1 Founder Solution Marketing Blog Twitter.com/SteveRobins SolutionMarketingBlog.com www.SolutionMarketingBlog.com © 2011 www.SolutionMarketingBlog.com p28