Competing Telecom Equipment;

How Manufacturers’ Marketing Can Drive Revenue

bringing your products to life

white paper

The Taxonomy of Telecom
Equipment Companies
In 2008, according to the International Tele-
communications Union, worldwide telecom-
munications industry revenues reached
US$3.85 trillion. This figure is expected to
grow exponentially. Perhaps no other industry
touches as many technology-related busi-
ness sectors as telecommunications. Merger
and acquisition activity is prevalent within
the telecommunications industry and gov-
ernment regulation predominates, present-
ing several additional challenges for sales
and marketing teams in their efforts to stay
ahead of the curve and the competition.
Telecommunications (Telco) as an industry
always strives to stay on the leading edge of
technology. Underlying technologies move
at warp speeds, necessitating constant mo-
tion. As consumers become increasingly
impatient with communication wait-times
for voice and data applications (now frac-
tions of seconds) Telecommunication com-
panies focus on innovation in order to keep
pace with increasing customer demands.
2
Product Complexity Comp- Marketers need
licating Marketing Initiatives the most powerful
Building an emotional connection between Tel-
co infrastructure managers and buyers of prod- tools to clearly
ucts that power customer networks isn’t always
easy. That’s partly due to the sheer complexity
communicate their
of most products, as well as the difficulty of
key differentiators
building a clear differentiation message in the
middle of what Telco companies consider com- succinctly and
modity products. Demonstrating a consumer
gadget, such as an iPhone, where the utility and consistently, at
value is fairly intuitive is one thing, but what
about networking products that aren’t sexy
every touch-point,
and can’t easily illustrate their own benefits? particularly in those
As network equipment continues to evolve
at breakneck speed, new products constantly
circumstances
outperform existing systems. Marketers are where face-to-
challenged to successfully launch products,
and at the same time, phase others out and face encounters
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promote upgrades to existing customers.
Marketers must also contend with the real-
take place.
ity that new equipment purchases happen
less frequently and sales cycles become
more competitive as budgets get reduced.
With some products ranging in cost from
thousands to hundreds of thousands of dol-
lars, buyers do not make decisions lightly.

In today’s globally competitive marketplace,
rising above the clutter of “me-too” messag-
ing has become increasingly difficult, as it is
no longer obvious to buyers what the criti-
cal differences are between equipment pro-
viders’ competitors. Target audiences need
to know not only what is different about a
manufacturer’s product or solution, but why
they should care. It’s the sales person’s respon-
sibility to understand industry pain points;
how the company can address them; and
how and why his company’s solution is bet-
ter than competitors’ at alleviating the pain.
All this points to the fact that marketers need
the most powerful tools to clearly communi-
cate their key differentiators succinctly and
consistently, at every touch-point, particularly
in those circumstances where face-to-face
encounters take place—at executive brief-
ings, sales meetings, and trade shows.
Extending the Product
Presentation to Tell a
Complete Story
More often than not, telecommunications and
network products work as part of a greater, all-
encompassing solution. Stand-alone demon-
strations, therefore, only tell part of the story.
3
Much of the difficulty in defining a product’s
place in a Telco environment stems from the
The daunting
daunting challenge marketers face in weav- challenge that
ing cohesive messages that illustrate specific
product advantages or uniqueness as part of marketers face is in
a bigger picture. This may involve showing
a flow diagram or systems architecture, and
weaving cohesive
in other instances, product behavior or how messages that
it is maintained within a broader system.
The tools that are available to help tell these
illustrate specific
solutions stories (from network diagrams, product advantages
PowerPoint presentations, videos, all the way
to interactive product demonstrations), are or uniqueness as part
only useful if they can be combined to ag-
gregate and organize the information so that of a bigger picture.
Sales can present the most relevant content
that demonstrates how the products and
solutions address the customers’ needs.
Taking the Product
www.kaon.com • 978. 823. 0111
on the Road
Despite the fragility and sophistication of
telecom and network products, and even
despite their size and weight, showing prod-
ucts at exhibitions and trade shows remains
a valid and necessary sales and marketing
strategy for the Telco industry. In fact, accord-
ing to Exhibitor’s Trade Show Trends Report,

The Cellular Telecommunications and
Internet Association had the fourth-
highest density traffic of some 60 shows
surveyed in 2008, a year in which trade
show attendance was down overall.
Even so, products for trade shows, sales
meetings and executive briefing centers
(EBCs) have become more expensive to
acquire, demonstrate, provision, pack-
age, ship, power, maintain, and manage.
To showcase how great these costs can
be, one leading equipment manufac-
turer spent as much as $12,000 just
powering its high-end equipment at a
single show. Shipping can easily reach
$40,000 (not to mention the inherent
risk of damage), and drayage—the cost
of moving the equipment on and off
the floor—can run as high as $20,000.
Space is tight on the show floor,
sometimes downright inadequate
for equipment that sits behind glass
or doesn’t tell its story based only on
its appearance. But space limitations
don’t outweigh sales requirements, and
marketers are therefore challenged to
find ways to show all product offerings
by any means possible—more often
than not, with the old way of present-
ing out-dated printed catalogs and
hastily prepared product data sheets.
Even if infinite space was afforded,
network products still wouldn’t draw
a crowd, even if the accompany-
ing marketing collateral is slick.
While trade shows continue to provide
a means of important face-to-face time,
individual sales calls are still the num-
ber one venue for information transfer
where customer engagements are
concerned. Meeting at a customer’s of-
fice, the sales team is at an even greater
disadvantage than at the trade show
booth, as there is little opportunity to
showcase any products bigger than
those that can be easily transported. The
customer is left to rely on slide presen-
tations, catalogs and data sheets that
neither adequately explain the product,
nor illustrate a solution-based summary.
Custom Presentations
Sell Products
Each business’ communications chal-
lenges are as unique as the products
and services they sell. Whether there’s
a need to deliver transaction data in
4
real time, transfer health information
from hospital to hospital, or support a
customer call center for ordering parts
or technical support online, telecom
systems are often the backbone of
an organization. While there’s no
such thing as a one-size-fits-all solu-
tion, tailored systems need to be sold
through customized sales processes.
When purchasing complex telecom-
munications or network products and
solutions, buyers need to engage in the
process. They must understand infor-
mation about how a product works,
how that product can help overcome
a business challenge or challenges,
and how it ties into an overall system
and strategy. Therefore, the sales/mar-
keting customer experience must be
engaging, informative, and customiz-
www.kaon.com • 978. 823. 0111
able. It must facilitate and enable the
prospect’s ability to explore the infor-
mation and aspects of products that
are of interest and relevant to him.
Research shows that when people
participate actively in the sales process,
they become more engaged and their
retention rate of key product informa-
tion increases dramatically. This means

that important product information, if made
available during an interactive sales exchange,
is far more likely to be remembered by the
prospect. Subsequently, the likelihood of that
prospect being prepared to make an informed
buying decision is dramatically increased.
to explore the information and aspects of prod-
ucts that are of interest and relevant to him.
Research shows that when people participate
actively in the sales process, they become more
engaged and their retention rate of key product
information increases dramatically. This means
that important product information, if made
available during an interactive sales exchange,
is far more likely to be remembered by the
prospect. Subsequently, the likelihood of that
prospect being prepared to make an informed
buying decision is dramatically increased.
A Call for Action
To address the requirements for Sales and
Marketing to have better outcomes at all
face-to-face customer venues, telecommunica-
tions and network equipment manufacturers
need a sales and marketing solution that:
•• increases customer access to
products, even when those products
can’t be physically present;
5
•• significantly reduces costs of
showcasing products at live venues;
When purchasing
•• communicates key product and solution complex tele-
messaging and product differentiation; and
•• delivers a dynamic, engaging and communications or
interactive experience that creates an
emotional connection with customers. network products
Kaon Interactive, creators of interactive market-
ing solutions that bring products to life, offers
and solutions, buyers
interactive applications that support product need to engage
differentiation, deliver solution stories, and
heighten customer and prospect engagement. in the process.
With Kaon’s solutions, it is possible to dem-
onstrate a broad cross-section of products at
trade shows and during sales calls—virtually.
Kaon delivers the ability to view products
from every angle, manipulate them to take
a given action, and investigate internal com-
ponents that show how a product actually
works. Kaon’s realistic, 3D interactive digital
www.kaon.com • 978. 823. 0111
representations not only let prospects see how
products operate but also offer a self-guided
exploration that puts them in the driver’s seat.
Kaon v-Brief® weaves virtual product demon-
strations, interactive flow diagrams, video, 3D
PDFs and slide presentations to simplify com-
plex solution stories. The result is a cohesive
communication of strategic messaging, prod-
uct overviews and detailed information. Kaon
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“With 40-plus shows a year, including international events, we expect the Kaon v-OSK to save us 85% in recurring annual shipping costs,
more than 800 labor hours associated with product assembly, and a significant reduction in travel and accommodations due to the
reduced labor staff needed.”

Mr. Bill Rozier, VP of Global Marketing, Ciena Corporation

 7

v-Brief can be deployed on laptops, desktops,

Apple iPads® and on the Kaon v-OSK®, a large-
format, high-definition touch screen appliance
with an integrated computer and high-perfor-
mance NVIDIA® graphics system. In any venue,
Kaon v-Brief puts customers in control of their
own experiences with the ability to explore
features and options with incredible realism
– leading to a greater awareness of how the
solutions are relevant to their circumstances.

One Kaon customer’s experience is repre-

sentative of the potential for success. Of
more than 2000 users of Kaon’s technology
at a leading telecommunications equip-
ment manufacturing company, 97% reported
that the use of Kaon’s solution had helped
to close sales. With Kaon, product and solu-
tions providers offer consistent, articulate,
and compelling differentiation messag-

www.kaon.com • 978. 823. 0111

ing, delivered by interactive, customizable
technology that resonates directly with the
needs of their prospects and customers.

FOR MORE INFORMATION ON HOW

THE KAON v-BRIEF WILL BRING YOUR
PRODUCTS AND SOLUTIONS TO LIFE,
CALL 978.823.0111 OR “EXPERIENCE”
IT AT WWW.KAON.COM.