Hi Eric and all.
I'd also like to add my appreciation of your analysis, such as the cash flow, of Novell. Sometimes, I think, companies can suceed (modestly) in spite of some of the goofy things they do (or don't do).
I sent the following e-mail to Peter Troop, and here is his reply.
I just wanted to get your comments on the following. In the Nov. 26th
Financial Briefing, it was stated:
The third area we're changing is in our marketing efforts. In Q4 we spent approximately $20 million on our product launches and advertising.
For too long, we hadn't clearly asserted the value of our products and
solutions in an increasingly competitive marketplace. So this was a fair start, and it will continue with increased visibility in 1997. Regarding our advertising, I told our agency that I want to see a strong emotional connection with our customers and messages targeted to different network market segments.
My questions: Is Novell getting its money's worth in effective
advertising? And by what method are you measuring the effectiveness?
If it is in terms of revenue growth, what % of growth would you consider to be required to say that the advertising was a success?
Thanks for your time.
Mat Miller
Mr. Miller /
Support for revenue growth doesn't have to be the issue. As the fourth largest software company in the world, advertising from Novell is one element in sustaining a $1.5+ billion network software business across the world market. It is an important tool for validating the judgements of purchase decision makers, its a important factor in our relationship with channel and vendor partners.
Peter Troop
Sr. Director Investor Relations
408-577-8361 peter_troop@novell.com
Any comments? I am willing to agree with what he said, but if as a company you're "changing your marketing efforts" and emphasising that $20 million is being spent (how much was it before?), shouldn't it do more than "sustaining"?
Mat |
