utah pma quarterly meeting keynote, march, 2009
DESCRIPTION
Glen Mella, President and COO of Control4, presented the inaugural Utah Product Management Association meeting. This is the keynote presentation.TRANSCRIPT
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© December, 2008 - Control4
Glen Mella, President/COO - Control4
From Chips to Chips… A journeyFrom Chips to Chips… A journey
So far…So far…
Undergrad – BYU, MBA – Northwestern CPG brand management – Frito-Lay (PepsiCo), DialHigh-tech marketing – WordPerfect, Novell, TenFoldCEO – Found, Inc. WordPerfect®
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CEO – Found, Inc. SVP marketing & sales – SunCom/AT&TPres./COO – Control4
Personal passion: The intersection of consumer products and high tech
WordPerfect®Novell®
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What is “Marketing” Anyway?What is “Marketing” Anyway?
Mar-ket-ing [mahr-ki-ting] (-noun)
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1. the act of buying or selling in a market.
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1. the act of buying or selling in a market.2. the total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling.
How does your company go to market?How does your company go to market?
Identifying unmet consumer wants/needsDelivering goods & services to meet those needsMaking what you have relevant to others
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Making what you have relevant to othersWinning the positioning battle in a crazy, cluttered worldBuilding loyalty and repeat businessBonding with customers
Sales vs. MarketingSales vs. Marketing
Sales - build revenues over night
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Marketing - build brands over time
What’s in a Name?What’s in a Name?
Inside marketing
Category management
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Category management
Chief bottle washer
Who asks these questions?Who asks these questions?
Inside MarketingWhat to build?Who is the target?Why will they care?Why will they care?How can we solve their pain?
Outbound MarketingHow do we sell?What is our position?How do we build awareness, preference & demand?Where do we find qualified prospects?
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Control4 Product Development ProcessControl4 Product Development Process
T-3 Product DescriptionT-2 FeasibilityT-1 Staffing and SchedulingT0 Architecture and DesignT1 Prototype/Development Phase
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T2 Alpha PhaseT3 Beta (HW)/Internal Beta (SW)T4 Release to Manufacturing (HW)/External Beta (SW)T5 Pilot (HW)/Release Candidate (SW)T6 First Customer Ship (PIT)T7 Available in Shipping Quantities (PIT)T8 End of Life
Brand Management ModelBrand Management Model
ManufacturingR&D
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Brand ManagerFinance
Sales Purchasing
Operations
Consumer MarketingConsumer Marketing
Trade push - build sales overnight– Trade advertising– Short-term focus
Consumer pull - build brand over time
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Consumer pull - build brand over time– Brand awareness and preference– Build and sustain franchise– Long-term focus
Consumer Marketers Measure EverythingConsumer Marketers Measure Everything
Share of VoiceShare of ShelfShare of Wallet
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Share of WalletShare of PantryShare of StomachShare of Mind
Broad-Appeal Tactics for a Mass Audience... then and nowBroad-Appeal Tactics for a Mass Audience... then and now
Broadcast advertising – Network, cable, satellite TV & RadioPrint, outdoor, and high-visibility offline effortsUbiquitous branding – Used to be Coke, Nike, GE, Microsoft
Now - Google, Apple, Starbucks, ebay, FacebookTargeting every household
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Targeting every household– Direct response, Web 1.0– Frequent rewards programs
Tactics and tools have changed dramatically– SEO, SEM– Social media– Blogosphere– Real one-to-one marketing
High Tech Marketing AudiencesA more complex modelHigh Tech Marketing AudiencesA more complex model
Trade – build sales overnightConsumer – high tech adoption curve– Purchaser vs. influencer vs. user
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Analysts – evangelize and critiquePress – keep pulse on marketIndustry pundits – influencers
The IT CustomerThe IT Customer
End usersIS management– Network managers– Dept.-level IS
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– Dept.-level ISBusiness managers– Understand process vs.
technologyExecutive management– More savvy than ever
before
Consumer vs. Business-To-Business Marketing Consumer vs. Business-To-Business Marketing
Low purchase priceOften spontaneous purchaseIndividual decision-makerLow loyalty/high switching
High investmentUsually a considered purchaseGroup hierarchy decision makersHigh loyalty and service component
B-2-C B-2-B
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Low loyalty/high switchingShot-gun approachLow cost-per-leadProven tactics and metrics
High loyalty and service componentRifle approachHigh cost-per-leadOften fly by seat of pants
Different Metrics than ConsumerDifferent Metrics than Consumer
Longer evaluation and sales cyclesHigher cost to identify, educate, motivate, and qualifyLower hit rate for broad-reach marketing tacticsPersonal selling makes a difference
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Personal selling makes a difference– Conferences, events, executive calls, direct
communicationsHarder to quantify, but this shouldn’t be an excuse!
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© 2007 Control4
Who’s in control, anyway?...Who’s in control, anyway?...
Just Your Average Day at the BeachJust Your Average Day at the Beach
Just Your Average Day at the BeachJust Your Average Day at the Beach
Okay, Not Really an Average Day…Okay, Not Really an Average Day…
Who’s freaked out by the economy?Who’s freaked out by the economy?
Post-WW II RecessionsPost-WW II Recessions
Recession Duration Jobless Rate
Nov’48-Oct’49 11 months 7.9%
Jul’53-May’54 10 months 6.1%
Aug’57-Apr’58 8 months 7.5%
Apr’60-Feb’61 10 months 7.1%
Dec’69-Nov’70 11 months 6.1%
Nov’73-Mar’75 16 months 9.0%
Jan’80-Jul’80 7 months 7.8%
Jul’81-Nov’82 16 months 10.8%
Jul’90-Mar’91 9 months 6.9%
Mar’01-Oct’01 8 months 5.4%
Dec’07-present 15 months so far 8.1%
Own-er-shipOwn-er-ship
Think, talk and act as if you OWN your business– Your functional area– Key projects, tasks and deliverables– Significant individual milestone (“My product, my store,
my team”)my team”)
OWN challenging issues or customer problems through to resolution – Don’t let go until resolved
All shareholders are literal OWNERS of the company
Key Leadership RolesKey Leadership Roles
Managing Culture and moraleDefining the Vision and Strategic DirectionEnsuring adequate working capitalBuilding the teamBuilding the teamGenerating revenue!Achieving long-term profitable growthCorrecting the courseResolving conflictModeling aspirational behavior
Managing Culture and MoraleManaging Culture and Morale
The Control4 ValuesTeamworkCustomer FocusPassion for ExcellencePassion for ExcellenceIntegrityCommunicationAgilityCommitment
Defining Vision and Strategic DirectionDefining Vision and Strategic Direction
We will be the world’s leading platform for the digital home, by providing for the digital home, by providing
home automation solutions that are affordable, the easiest to use, and the
easiest to install.
Building the teamBuilding the team
A simple formula…
Look to hire people who are:
BrightMotivatedNice
Career Success DriversCareer Success Drivers
Results orientation– Driven and accountable
Passion for metricsMature ambassadorStrong business acumen Strong business acumen – Understands top AND bottom line implications
Willing to take and stand and defend it, but…– Always learning and teachable
Best predictor of future behavior is past performance
Leaders build succession plans and teams
Day in the LifeDay in the Life
Determine the key indicators and measure themImprove focus and minimize distractions– 28% of knowledge worker productivity is lost daily!
Get out of your silos and critique one anotherMaintain consistency… predict and deliverMaintain consistency… predict and deliverSee things as they ARE and understand cause and effectReact quickly when things aren’t tracking well– Trust your instincts and have a bias for rapid response
If private, role play being a public company
Resolving Interpersonal ConflictResolving Interpersonal Conflict
Demand and expect perfect candor!– Sometimes challenging in UT culture
Role model appropriate behavior– Remember the Golden Rule–
Don’t be a hypocrite; we all make mistakesSeek win-win resolutions
Beware of Common SnaresBeware of Common Snares
“Victim” mentality– Who are “they” anyway?
Thinking like sub-contractors– “Not my problem.”––– “Someone will come along after me anyway.”
Talking vs. WalkingShort-term focus– Remember, you have to lap yourself next year
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© 2007 Control4
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New Construction Existing Multi-Dwelling Units
Control4 Delivers Everyday Easy!Control4 Delivers Everyday Easy!
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40CONFIDENTIAL
Global distribution33 countries and just getting started ����Global distribution33 countries and just getting started ����
41CONFIDENTIAL
Custom A/V dealers love Control4!Custom A/V dealers love Control4!
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Rave Reviews and Press CoverageRave Reviews and Press Coverage
• New York Times• Wired• Financial Times• Business Week• CE Vision• Network World• CE Pro
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• CE Pro• RF Design• LA Times• Enterprise IT
Planet• Tech Living• Wireless News
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Numerous Industry AwardsNumerous Industry Awards
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The Operating System of the HomeThe Operating System of the Home
Heating & Air Conditioning
Home
Access your entire music collection from anywhere in the
house. And we do mean anywhere.
It’s good to save energy.
Especially your own.Life’s better when everything works together tm
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Control4
Security
Lighting
Access Control
… and More
Multi-room Audio
Plumbing
Home Theater
Somebody left the lights on and nobody wants to get up. So don’t.Control your TV. Your music.
Your lights. Your kids. Okay, not the kids.
CONFIDENTIAL
Some of Control4’s U.S. Retail PartnersSome of Control4’s U.S. Retail Partners
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Take Ownership for Your CareerTake Ownership for Your Career
Be cautious of short cuts– Build your set of knowledge and skills over time
Do what you love; love what you do!Most of you have plenty of time �Career development is 90% YOUR responsibilityJust like business - plan, execute, and adjust
Be Empowered, But Keep Things in PerspectiveBe Empowered, But Keep Things in Perspective
Put first things firstPrioritize and schedule accordingly– Beware of burn out– Can you run at this pace for the next 5 years?– Can you run at this pace for the next 5 years?
Is your career a means or an end?
Lowes – Let’s Build Something Together!
Still My Biggest Management ChallengeStill My Biggest Management Challenge