Kathy Button BellAgents of Change in a Social WorldTHE SMART DIFFERENCE

Emerson Global Presence 2012Emerson Global Presence 2012

PERCENT OF SALES BY GEOGRAPHY

PERCENT OF SALES BY SEGMENT

Middle East & AfricaLatin

America

Europe 22%

Asia 23%

United States & Canada

45%

Commercial & Residential Solutions

Climate Technologies

16%

Industrial Automation

21%Network Power

27%

Process Management

28%

AT A GLANCE

● Founded in 1890

● Headquartered in St. Louis, Missouri, USA

● $24.2 billion in sales (2011)

● Approximately 133,000 employees worldwide

5%5% 8%

Emerson is a Leader in its CoreGlobal Businesses and MarketsEmerson is a Leader in its CoreGlobal Businesses and Markets

● Compressors

● Controls

● Alternators

● Fluid Control

● Ultrasonic Welding

● Food Waste Disposers

● Plumbing Tools

● Wet/Dry Vacuums

● Mobile Point-of-Care Carts

● Control Valves

● Measurement Devices

● Wireless Devices

● AC & DC Power Systems

● OEM Embedded Power

● Precision Cooling Systems

● Access & Control (KVM)

● Power Switching & Controls

$7.0B $5.3B$6.8B $4.0B $1.8B

Defining the Emerson BrandDefining the Emerson Brand

$14.3 Billion in revenues with over 60 businesses1999 Emerson1999 Emerson

“Hardware Store” Communications Approach Hurting Technology Reputation“Hardware Store” Communications Approach Hurting Technology Reputation

Emerson Brand DNAEmerson Brand DNA

● #1 Market Position(s)

● Longevity● Reliability● Excellence● Management

● Bottom-line● Rigid● Bureaucratic● Insular● Risk averse● Follower● Slow

● Growth● Responsive● Customer-

focused● Initiative

Leader/Innovator● Connected

LEVERAGE TRANSFORM INSTILL

Brand Drives Collaboration for Cross-Sell, Solutions & EfficiencyBrand Drives Collaboration for Cross-Sell, Solutions & Efficiency

EMERSON BUSINESS PLATFORMS

Defining the Branding Roles Defining the Branding Roles

Sell the Emerson Brand

Sell our industry expertise and solutions

Sell individual products

All three elements must work together in order to achieve marketing objectives

EMERSON

BUSINESS PLATFORM

BUSINESS

Marquee Accounts Leverage Brand and Product Depth Across Emerson BusinessesMarquee Accounts Leverage Brand and Product Depth Across Emerson Businesses

We Need to Continue Growing and Leveraging Marquee Accounts – Target is 25% of Sales

SALES GROWTH

2004 2009 2014F

% of Emerson

$6.8B

$3.0B

$4.6B

8.3% CAGR

22%

MARQUEE ACCOUNTS COMPOSITIONNetwork Power Accounts

Process Management Accounts

Climate Technologies Accounts

Appliance & Tools Accounts

Industrial Automation Accounts

Increased Integration Will Foster More Solution Sales, Requested by Customers in Key IndustriesIncreased Integration Will Foster More Solution Sales, Requested by Customers in Key Industries

Base: Customers (N=1,902)Q910.To what extent do each of these attributes describe Emerson?Q3000. To what extent do you agree or disagree with the following?

Customer Sentiment Network Power Climate Tech. Process Mgmt. Indust. Auto. (N=388) (N=508) (N=399) (N=386)

Consistently feels like an integrated company 39% 37% 45% 30%

Is a company that is easy to understand 38 33 45 24

Majority of customers expressed strong interest in a solution-based relationship

51% of customers agreed it would be better for them if Emerson acted more like one integrated company than it currently does

Top 2 Box % (Rated 6/7 on 7-point scale – describes very well)

Customer Need Network Power Climate Tech. Process Mgmt. Indust. Auto. (N=388) (N=508) (N=399) (N=386)

These days, I am interested in hearing more about solutions in addition to just individual products 79% 79% 79% 72%

I find the suppliers I work with in the area of [business platform] tend to focus too much on equipment and products and not enough on ideas

60 65 63 60

Top 2 Box % Agree (Strongly/Somewhat)

Marketing Tackles R&D Then AdvertisingMarketing Tackles R&D Then Advertising

Emerson’s path to Remarkable is customer-centric.Customers believe in Emerson.Customers are begging us to deliver.

Emerson’s path to Remarkable is customer-centric.Customers believe in Emerson.Customers are begging us to deliver.

UNKNOWN

CREDIBLE

DIFFERENTIATED

REMARKABLE

• Be authentic

• Listen to our customers

• Collaborate inside

• Design for purpose and drive solutions

• Make it easy to do business

What does REMARKABLE look like?

Marketing Must Demand The CustomerVoice Starting at Stage Gate ZeroMarketing Must Demand The CustomerVoice Starting at Stage Gate Zero

DEFINE PAIN

SOLUTION VISION

SOLUTION VALUE

Marketing

MARKET RESEARCH

IDEA GENERATION

CONCEPT FEASIBILITY

CONCEPT DEVELOPMENT

& PROJECT PLANNING

DESIGN & DEVELOPMENT

RAMP UP

LAUNCH & PRODUCTION

START-UPPRODUCTION

Emerson Launches New Innovation ModelDriving Organic GrowthEmerson Launches New Innovation ModelDriving Organic Growth

New-to-the-BUSINESS

New-to-the-WORLD

MINOR Revisions

MAJOR Revisions

Current Portfolio Under-Leverages Emerson’s DepthUnder-Plays Solutions Capability & InteroperabilityCurrent Portfolio Under-Leverages Emerson’s DepthUnder-Plays Solutions Capability & Interoperability

One Connected Family Celebrates Human Centered Design & Demonstrates High TechnologyOne Connected Family Celebrates Human Centered Design & Demonstrates High Technology

Emerson Climate TechnologiesProduct Design: Before and AfterEmerson Climate TechnologiesProduct Design: Before and After

Design language reflects Emerson’s improving high tech image

Emerson Campaign Highlights Our New-To-The-Business and New-To-The-World ApproachEmerson Campaign Highlights Our New-To-The-Business and New-To-The-World Approach

● New “It’s Never Been Done Before” campaign focuses on unique and innovative solutions that Emerson delivers to customers

● Differentiate Emerson by showcasing the results of our work across businesses, platforms and industries to create new-to-the-business and new-to-the-world solutions

● Emerson showing the optimistic face of global business – how we are helping our customers innovate their way out of the financial downturn

● Our new campaign dramatically reinforces that Emerson is unique in the way we look, sound and feel

Emerson Has Established Distinctive Advertising Look, Feel & MessagingEmerson Has Established Distinctive Advertising Look, Feel & Messaging

When the Stakes Are High – Consider It SolvedConsistent Branding Across the Enterprise Gives Emerson a Much

Larger, More Powerful Face

Emerson Platform Advertising Creates Larger Integrated FaceEmerson Platform Advertising Creates Larger Integrated Face

Marketing Takes On Sales EnablementMarketing Takes On Sales Enablement

Our Traditional Sales ApproachOur Traditional Sales Approach

Lots of “show and tell” focusing on our products and what they do

Global Economic Downturn Drives Need for Aggressive Solutions ApproachGlobal Economic Downturn Drives Need for Aggressive Solutions Approach

THEN Product Marketing

RIGHT NOW Solution Marketing

Message Orientation Inside-Out Outside-In

Positioning Objective Own Position in Category Own Specific Customer Problem

Message Complexity Single Threaded Multi-Threaded

Differentiation Model Two Dimensional Multi-Dimensional

Knowledge Flow Primarily Top Down More Collaboration With Sales

Sales Enablement Objective Product Knowledge Situational Fluency

Foundation Knowledge Feature-Benefit Lists Problem-Solution Map

Source: Keith Eades and Robert Kear

1. Lead with question

2. Lead with hypotheses

3. LEAD with insight

Marketing can help salespeople become business consultants by increasing Situational Fluency.

Marketing and Sales Must Closely CollaborateMarketing and Sales Must Closely Collaborate

Sources: Keith Eades and Robert Kear, Sales Executive Council

3 Generations of Solutions Selling

1. Don’t lead with information about the supplier

2. Don’t just lead with our unique selling principle

3. DO tell a story about their business that leads to our differentiators

Commercial Teaching

MARKETING

Define

PainSolution

VisionSolution

Value

SALES

Access to

PowerControl

Buying process

“Emotional Impact”

Psychological features of the

problem, or presence in

the individual’s workflow,

humanizing the problem.

Lev

el o

f C

ust

om

er E

xcit

eme

nt Positive

Negative

Neutral

Commercial teaching follows boot camp theory of shocking the customer with the unknown…

…breaking down the problem behind the unknown…

…then building back the customer’s confidence in a new solution.

“Warmer”Building

credibility by reading their mind –

demonstrates empathy.

“Reframe”First, reframe

an unrecognized

problem, need,

or assumption.

“Rational Drowning”

Gradual intensification

of the problem, both in degree and

closeness to the

customer.

“Value Proposition

A New Way”A new

framework for

addressing the problem – implicitly tied to the supplier

value proposition.

“Our Solution and

Implementation Map”

Map of supplier services or

solutions linked back to key

teaching points; highlighted

path to implementation.

Intrigued Drowning Involved Relieved

Customer State

Core Concept:Leading the Customer To Our SolutionsCore Concept:Leading the Customer To Our Solutions

Source: Marketing Leadership Council

Marketing’s Marriage to ITMarketing’s Marriage to IT

Marketing and IT Must Collaborate on Strategy to Meet Business DemandsMarketing and IT Must Collaborate on Strategy to Meet Business Demands

PersonalizedSimple ImmediatePredictiveAlways Available

Emerson Marketing and IT Strategy

Customer Expectations

Collaboration MobilityBig Data Cloud

Technology Trends

Business Initiatives

SolutionSelling

Superior Customer Care

Perfect Execution

Enriched Business Models

Traditional Media Still Critical to Brand AwarenessHowever, Social Media Is Key For Depth And TransparencyTraditional Media Still Critical to Brand AwarenessHowever, Social Media Is Key For Depth And Transparency

PRINT

PROMOTIONS

CONFERENCES DIRECT MAIL

TRADITIONALMEDIA

INDUSTRYEXPERTS

PEERS

CUSTOMERS

INDUSTRYEXPERTS

CLIENTS

PEERS

SOCIALNETWORKS

COMMUNITYFORUMS

MOBILE

BLOGS WEBSITES

INTERACTIVEADS

SEARCHENGINES

TWITTER/RSS

WEBINARS

PODCAST

DIGITAL

SALES ANDRELATIONSHIP

MANAGERS

BUSINESSNETWORK

BUSINESSNETWORK

PROSPECTSAND

CLIENTS

COMMUNITIES

TRADE SHOWS

Social media impacts B2B decision makers worldwide Social media impacts B2B decision makers worldwide

The number of B2B decision makers who maintain a social network profile has increased significantly

60% of B2B decision makers use social media to help inform professional decisions

Decision makers are actively participating in a variety of ways

– Reviewing products & services – Posting in forums

Source: eMarketer 2012

Guiding Principles of the Digital DialogueLet’s Join the Greater ConversationGuiding Principles of the Digital DialogueLet’s Join the Greater Conversation

Trust

Authentic

Engagement

Interactive

Cultivation

Relevance

Dynamic

Objective

Content

Fast

Intuitive

Integrated

Easily Accessible

Responsive

Experience

Two Way Sharing – Authentic – Transparent GLOBAL CONVERSATION

Leverage Emerson’s Remarkable Expertiseand People to Create Full Digital ExperienceLeverage Emerson’s Remarkable Expertiseand People to Create Full Digital Experience

PAID OWNED EARNED

Like, Share, Comment, Tweet

Optimization of ad campaign

Implement social strategy – Aggregate content showcasing

innovation stories

Create voice for Emerson and reputation of strong

thought leadership

Sour

ce: D

igita

s

Social Shares

75% of visits

12% of visits

12% of visits

79% New Visitors

21% Returning Visitors

Total Visits 22,700

UniqueVisitors17,900

Total Page Views 89,000

4 pages viewed per visit

Average time with content is 3:33 minutes (USA)

3:28 Global

www.GatewaytoEmerson.com

Total Visits 16,300

UniqueVisitors

9,100

Total Page Views 58,800

pages viewed per visit

www.TheExtraMileWithCharlie.com

56% New Visitors

44% Returning Visitors

4

Average time on SiteIs 4:02 in minutes (USA)

and 4:31 Global

Social Shares

52% of visits

40% of visits

7% of visits

Emerson has Posted Over 575 Emerson Videos with over 1.5 Million Views

Nearly 75% of All Emerson Mentions Occurred on TwitterEmerson_News Followers Grew by 100% YTDNearly 75% of All Emerson Mentions Occurred on TwitterEmerson_News Followers Grew by 100% YTD

Media types delineated

Total Emerson MentionsTotal Emerson Mentions 557,394

FisherValves 361

Bill_Morrison 343

EmrsnNPTelecom 265

ASCO_Process 261

Jack Pouchet 248

Steve_Hassell 179

RIDGID_Europe 175

ChristopAmstutz 161

Emerson_DScottBarbour 152

Twitter Followers

RIDGIDtoday 4232

EmersonEmPower 3821

Emerson_News 3557

JimCahill 3067

EmersonClimate 2917

EmersonProcessManagement 2013

EmrsnNPDataCntr 1548

EmersonEmbComputing 1518

CopelandScroll 1508

ClosestMaid 1309

DeltaV 1291

EmersonExchange 945

Rosemount Anlytical 824

RAIhome 757

ASCOValve 586

CT_Emerson 445

Emerson_Charlie 400

InSinkErator 385

MicroMotion 384

Emerson_MX 381

Overall 2012 Mentions = tweet, blog/forum post, article

86,181Blogs

405,218Twitter

29,587Forums

36,408News

Emerson’s Guidelines for “Social Behavior”Emerson’s Guidelines for “Social Behavior”

1. BE TRANSPARENTIdentify who you are and what you do at Emerson in your posts.

2. BE RESPONSIVECheck for postings frequently and try to respond to comments or questions within 24 hours.

3. BE ENGAGINGDialogue is the key. Listen and engage in two-way conversations. And know when to take a conversation offline.

4. BE MINDFULNever reveal confidential or sensitive information. When in doubt, ask first.

Never guess, speculate or offer opinions in areas if you are unsure whether you are right. If you do offer an opinion, make sure it is known that you are only stating your personal opinion.

5. BE ACCURATECheck your facts, properly credit your information sources and follow copyright and “fair use” laws.

6. BE RESPECTFULDo not post anything you wouldn’t want your manager to read.

7. BE WEB SAVVYBe thoughtful about what you publish. Even if you delete it, your post can live online forever.

8. BE AN EXPERTOffer your knowledge to others!

…There is Direct Legal Risk…There is Direct Legal Risk

Employment Law

Securities Law

Confidentiality

Data Management

Intellectual Property

International Trade

Idea Submission

Service of Process

Discovery

Consumer Protection

Commercial Torts

Privacy/Data Security

Third-Party IP

Defamation

Third-party terms

Agency

Marketing’s Integration with HRMarketing’s Integration with HR

Emerson Facebook Page Has Grown To Over 10,000 Likes This Year Emerson Facebook Page Has Grown To Over 10,000 Likes This Year

Facebook Likes

Ridgid Europe 23,870

Ridgid Tools 14,155

Emerson 8,418

Emerson Network Power 3,744

Emerson Process Management - Product/Services 3,630

ClosetMaid 2,402

Emerson Process Management Organization 1,171

Emerson Network Power – Power Supplies 1,170

Emerson Climate Technologies 1,369

Emerson Process Experts 925

Copeland Scroll 876

Micro Motion 695

Emerson Network Power - Embedded Computing 518

InSinkErator 450

Emerson Industrial Automation 330

White Rodgers 323

Emerson Process Management India Ltd 179

Emerson Process Management Mexico 172

Fisher Instrument and Valve Services 103

“Corporate social media will facilitate collaboration and knowledge in very decentralized environments.” – KORN FERRY

Emerson has over 95,000+ Followers on LinkedIn - Branding Important to LeverageEmerson has over 95,000+ Followers on LinkedIn - Branding Important to Leverage

Process Management ran a five month “Recruiting Pilot” which added 10,000 followers, including 4,000 engineers

New Emerson Careers Website Highlights The Smart DifferenceNew Emerson Careers Website Highlights The Smart Difference

Real Employees Share Their Rich Experience at EmersonReal Employees Share Their Rich Experience at Emerson

Showcase Our Young, Smart Talent in the Annual Report – Online Annual ReportShowcase Our Young, Smart Talent in the Annual Report – Online Annual Report

PROCESS

Leveraging Our “Third Wave” of Young ExecutivesSharing Their Views Through GatewayLeveraging Our “Third Wave” of Young ExecutivesSharing Their Views Through Gateway

Marketing’s New WorldMarketing’s New World

The Changing Face of B-to-B MarketingThe Changing Face of B-to-B Marketing

Branding Architecture

NPD / Voice of

Customer

Advertising & Communications

Sales Enablement

IT Marriage

HR Integration

Legal Interruption

Marketing Drives Total Customer

Experience

Customer ExperienceDigital Engagement ComponentsCustomer ExperienceDigital Engagement Components

CU

ST

OM

ER

E

XP

ER

IEN

CE

CUSTOMERSOLUTIONS

SERVICEDELIVERY

• Single Face to Customer

• Cross-Business Collaboration

• Product LifecycleManagement

• One Order / One Invoice

• Customer Support / CRM

• Demand Management

• Supply Chain Planning

• Supplier Collaboration

• eKanban

• Transportation Mgmt.

• Supply Chain Metrics

DIGITALENGAGEMENT

• Social Engagement

• Digital Marketing

• Mobile Applications

• Product Configurators

• Online Ordering

• Service Management

Keep Our Customer Promises

Become Faster & Easier To Do Business With

Provide Integrated Solutions Offerings

CMO’s as Integrators / Change AgentsCMO’s as Integrators / Change Agents

Need new skills / partners

More technology

Master branded content• Build relevant content• Need more “writers with insight”• Need more “deep researchers”• Need more short content• Need more rich media (especially video and

interactive tools)

Instead of PRODUCT

Source: Harvard Business Review, January-February 2013

RETHINKING THE 4 P’Sby Richard Ettenson, Eduardo Conrado, and Jonathan Knowles

Instead of PLACE

Instead of PRICE

Instead of PROMOTION

Focus on SOLUTION

Define offerings

by the needs they meet,

not by their features,

functions, or

technological superiority.

Focus on ACCESS

Develop an integrated

cross-channel presence

that considers customers’

entire purchase journey

instead of emphasizing

individual purchase

locations and channels.

Focus on VALUE

Articulate the benefits

relative to price, rather

than stressing how price

relates to production

costs, profit margins, or

competitors’ prices.

Focus on EDUCATION

Provide information

relevant to customers’

specific needs at each

point in the purchase

cycle, rather than relying

on advertising, PR, and

personal selling that

covers the waterfront.

The “Challenger” in Sales is Now the “Agile Learner” in MarketingThe “Challenger” in Sales is Now the “Agile Learner” in Marketing

Six Characteristics• Unafraid to challenge status quo• Remain calm in the face of difficulty• Take time to reflect on their experiences• Purposefully put themselves in challenging situations• Open to learning• Resist temptation to become defensive in face of adversity

Five Key Elements

Self-Awareness

Mental Agility

People Agility

Change Agility

Results Agility

Learning about Learning Agility Columbia University’s Teacher’s College