Speaker: Chris Sullivan, Vice-President, Finance & Operations, IDC (Canada) Ltd. More information including webcast found on the MaRS site at: http://www.marsdd.com/Events/Event-Calendar/Ent101/2008/marketing2-20080116.html

2. ` The Market Research Business Presented by: Chris Sullivan Vice-President, Finance & Operations IDC (Canada) Ltd. 16 January 2008

7. Researching the researchers Top 6 companies in IT Market Research *Source: Outsell’s Publishers and Information Providers Database, 2006 1.2% -6.5% 0.0% 29 Yankee 1.4% NA 22.8% 33 Ovum 1.9% -2.7% 10.0% 44 AMR 6.6% -0.9% 10.7% 153 Forrester 11.4% 8.8% 14.2% 266 IDC 42.3% 0.7% 10.6% 989 Gartner Est. 2005 Market Share Est. 2001 – 2005 CAGR Est. 2005 Growth Est. 2005 Revenue ($M)

8. Key Trends in Emerging Markets – Central Europe, Middle East, Africa EU Enlargement The 2004 enlargement is still impacting IT markets in new member states; 2007 saw new additions to the union. Russian Juggernaut High oil prices, manufacturing, and other extraction industries have turned Russia into an economic powerhouse. Transition in the Middle East Economic liberalization, development, and modernization are opening IT and telecom markets and driving investment as oil revenue floods the region. Africa Enters the Information Age IT and communications are key to economic development. Low installed bases and a move toward mobility are creating significant opportunities.

9. Key Trends in Emerging Markets – Asia-Pacific Emerging Asia* Approaches BRIC-Like Performance A US$15.6-billion IT market containing almost 800 million people, with IT spending growing 80% over its market size in 2005. (*comprising Pakistan, Sri Lanka, Bangladesh, Thailand, Malaysia, Vietnam, Indonesia, and the Philippines) China Goes Online Over 150 million Internet users will drive rapid developments in the Internet market and create new IT and telecom opportunities. Unstoppable Growth in China & India Benefits Surrounding Economies Increased investments in China and India have sent costs spiraling in these markets, which benefits economies like Pakistan and the Philippines, as companies realize greater cost benefits there.

10. Key Trends in Emerging Markets – Latin America Stable Economic Environment With historically low interest rates, a weak U.S. dollar, more financing options available, and low inflation, Latin American consumers have high confidence leading to an explosion in the consumer electronics markets. Brazil: Growth Acceleration Program Measures to stimulate investment in infrastructure and tax breaks for targeted sectors will help accelerate GDP growth beyond the country’s sluggish long-term average, increasing IT spending in the country. Mexico: New rules for Government IT Spending Through the Austerity Decree the federal government declared its preference to contract IT services instead of purchasing hardware or software that eventually goes out of date.

12. What is marketing? Brand image Qualified leads Media Relations Collateral Pricing Events

13. Which is the more appropriate measurement? Time First time buyers Revenue Innovators Early Majority Late Majority Laggards Early Adopters 1 2 3 4 “ early market” 1 S.D. 1 S.D.

16. For Example

17. Co-Specialization Alliance Objectives Time © IDC Endorsement, global support and financial resources, MDF Endorsement, global support and financial resources, OEM agreements Endorsements, embedded OEM, access channels & integrators, availability of resources Product capability (technology alliances) Support, MDF MDF, product support, regional coverage Pipeline sharing, access to new markets (vertical, solutions, etc.) Differentiation Packaging and bundling Packaging and bundling Access to large & complex deals Technology revitalization, protection from obsolescence Packaging and bundling Packaging and bundling Access to large & complex deals protection from obsolescence; marketing cachet 1 2 3 4 1 2 3 4 Vendor A Vendor B

19. Why is this important? WW Installed Base - Millions

21. Making use of market research

22. Estimating market share © Frank Lynn & Associates To estimate Revenue from market share, simply multiply by the total revenue in the market in question. This information is available from market research firms! Hit Rate Market Share Presence Product × × = × Preference

25. Estimating market share How often is our product offered for sale? What is our share of market within our own partners? © IDC 50% Market Share Hit Rate Presence Product × × = × Preference 50% 50%

26. Estimating market share © Frank Lynn & Associates How often do we win the sale? 50% Market Share Hit Rate Presence Product × × = × Preference 50% 50% 50% 50%

27. Estimating market share 6.25% © Frank Lynn & Associates 50% Market Share Hit Rate Presence Product × × = × Preference 50% 50% 50%

28. Thank You Chris Sullivan [email_address]