Kara Holder Business Development Manager Graphics Communications Group March 8, 2007

1. In a Select/Delete World Kara Holder Business Development Manager Graphics Communications Group March 8, 2007 1

2. The Emerging Communication Environment

3. Today's Media Mix – U.S. Ad Spending Newspaper Yellow Pages Consumer Magazines Business Pubs Direct Mail 19.8% 17.5% 8.2% 7.4% 13.2% 4.6% 5.3% 17.7% 2.6% 2.2% Broadcast TV 1.5% All Other Cable TV Radio Internet Out of Home Source: Robert J Coen’s Universal McCann U.S. Volume Report as reported in 100 Leading Advertisers (Advertising Age, June 27, 2005).

4. Print Is Integral to Successful Multimedia Campaigns Mass Awareness

5. Ed's 2006 auto needs service Print Is Integral to Successful Multimedia Campaigns Mass Awareness PersonalizedPost-Purchase Marketing

6. The Strengths of Print Media • Print produces measurable results. • Online consumers who received a printed catalog were twice as likely to buy something(Source: comSCORE) • 60% of consumer purchases are driven by printed catalogs(Source: DMA) • US advertisers spend $167 per person in direct mail to earn $2,095 worth of goods for an ROI of 13 to 1(Source: DMA) • Print is a trusted and lasting medium. • 67% of respondents like getting mail about new products from companies they do business with(Source: RIT) • 85% of mail is read or visually scanned(Source: US Postal Service) • 38% of households find direct mail interesting(Source: US Postal Service)

7. E-mail Internet SMS / MMS Print Broadcast Call Center Face-to-face Print Media is an Essential Part of CRM Strategies CRM Communication Mix • Statements • Direct mail • Brochures • Newsletters • Advertisements • . . .

8. Criteria for Selecting Messages & Media

9. The Marketer's Opportunity • Build a 1:1 relationship • Track results • Improve marketing ROI

10. Purchased listsCustomer name and address Customer purchase historyMarket data Company sales data (cross-purchasing behavior, regional preferences, etc.) How Much Data Do You Need?

11. What Can You Really Do? • PersonalizeRecipient’s name and address and perhaps other data available in your DB • VersionCreate different versions for different types of recipients… male/female, age cohorts • CustomizeUse the information you have about your customer to create a unique communication experience • IntegrateCreate new communication tools by integrating transaction information with news and promotions

12. Personalized/customized applications whose entire production is triggered and controlled automatically (e.g. Web request / fulfillment). Level 7 Automated fulfillment Complex personalized/customized applications designed to incorporate unique text, images and graphics. Level 6 Fully customized printing Level 5 Financial and other applications that incorporate personalized and customized content plus “data driven” graphs and charts. Transactional printing Personalized applications that also incorporate text and images relevant to specific audiences. Level 4 Customized printing Applications that seamlessly integrate the recipient’s name and/or address into the copy. Level 3 Personalized printing Applications that follow a common design with some unique content or language changes for specific audiences. Level 2 Version printing Static applications that are cost prohibitive to print offset due to short run lengths or multiple paper types. Level 1 Short runs, static content The 7 Levels of Variable Data Printing VDP

13. % Increase REPEAT ORDERS RESPONSE RATE RESPONSE TIME OVERALL REVENUE/PROFIT ORDER SIZE/VALUE Personalized Communications Improve Profits Source: InfoTrends. (Document shown was not used in study.)

14. Personalization Lowers Cost Per Response Paradigm shift … from cost per page … to cost per response • Interquest study • Response rate +21% • Cost per response –54% • Sales increase +93% Source: Interquest study, 2003. (Document shown was not used in study.)

15. Personalized Campaign – Financial Services Results $15 million in new CD investments

16. Personalized Campaign – Consumer Footwear Results High double-digit response rates

17. New Campaign Options with 1:1 Communication SOLICITATION TRANSACTION Integrated direct mail and transactional print campaign WELCOME LETTER FLYER

18. Expanding Customer Communications Channels • Existing communication vehicles become marketing channels Business Communications Programs Book Bill / Invoice Investor Relations Regulatory Notices Customer Retention Customer Service Statements Brochure Employee Relations LoyaltyManagement Direct Mail Sales AutomationLead Response Management Up to 95% of profits come from long-term customers Source: PricewaterhouseCoopers

19. Web2Print – New Print Delivery Option • Fulfillment of web orders for static, versioned and personalized print products • Helps you improve your print ROI • Makes it easy to use print strategically • Faster turnaround times • Web-based template libraries make production efficient

20. True Cost of Business Communications $6 Product $1 Average across all applications (manual, report, brochure, sell sheet) Process • Printing • Printing • Warehousing/archiving • Administrative • Internal document prep/review • Inventory obsolescence • External creative • Internal creative • Fulfillment/distribution Source: InfoTrends/ CAP Ventures’ Cost of Business Communications: A Look at the Business Document Lifecycle

21. What's Fun in Bermuda for: Children Teens Families Seniors Singles Order Versioned Brochures Online

22. Print for One • Based on request & user profile • Personalized URLs or call center • End user, sales or call center • Powerful composition engine and web integration • VDP print application Fully Customized VDP

23. Case Study A web-based marketing toolbox to help you grow your business Increase your ROI for every marketing dollar spent • FOCUS on the Most Valuable Prospects • Ensure marketing dollars are spent on those most likely to buy • ENGAGE the customer • Quickly reach your target with relevant messages and connect with them through print, electronic and interactive marketing • MEASURE Results • Track marketing activities and results to measure return on marketing investment in real time Refine target profiles and campaigns based on results to maximize effectiveness

24. Case Study Revenew Online Step 1: Custom-Built Database Step 2: Flexible Marketing Toolbox Step 3: Results Tracking Sample Segments Capture leads and link results to marketing activities to understand which activities are producing the best response. We create a custom-built database of the best prospects specifically for your business so you can effectively target your campaigns and track results.

25. Case Study – EGEA: Growing an Existing Business • Step 1: Targeting • Profiled existing customer base • Created database of 10,000 similar prospects within 3 mile radius • Prioritized prospects by fit with profile • Step 2: Customizable Marketing Material • Developed customizable postcard for reuse across multiple campaigns • Customize by products • Customize by offers • Developed customized landing page • Captured email and phone information • Obtained valuable customer insights through survey

26. Return On Marketing Investment • Step 3: Tracking and ROI • 2% of targets purchased, equivalent to 20% response rate • 223 (3.7%) actual response rate • 102 (1.7%) online responses w/ email information • 85% open rate on follow-up email campaign • 121 new customers • Average short term sale $75 • Potential annual value of new clients: $530 each • Return on Investment • Campaign Cost: $4,800 • 30-day lift in revenue: $9648 • Expected annual incremental revenue: $31,800 • Summary: • Response rate greater than campaigns sent to current customers! • Annual Return On Marketing Investment: 231%

27. Case Study - Integrated Campaign Web-to-Print & Direct Marketing Services for Independent Specialty Toy Retailers

28. Target Audience • Independent Specialty Toy Retailers • Independent specialty toy retailers are losing business because big-box retailers started offering specialty toys. • Lacking the budget, resources and marketing savvy, the audience required a fresh approach to marketing their stores to compete in today’s marketplace.

29. Program Objectives • Introduce Toybox Marketing at Toy Fair Expo as a single source to build On-line Customized Marketing materials for Specialty Toy Retailers. • Raise awareness and promote the effectiveness of Customized & Personalized Marketing, Web-to-Print and Print On-Demand Services.

30. Communication Method & Strategy • Postcard with Personalized URL (PURL) and Landing Pages used to promote Web-to-Print services and drive retailers to Toy Fair Expo booth • Personalized landing pages allowed retailers to build a free sample postcard that could be picked up at the Toy Fair Expo booth • The personalized landing pages also collected additional demographic information to further qualify the leads

31. Results • Qualified leads increased by 385% • Leads were qualified much earlier in the process • Based on the past conversion rate of 5%, anticipated ROI will increase over 400%

32. Personalized Postcard & URL Drive Results

33. How Customization Works • You choose the…Design, • Product & Child, • Headline, • Incentive, • and your logo Headline Sidewalk Sale Headlines Sidewalk Sale Birthday Play Date Spring Sale Incentives 5% 10% 15% 20% Incentive 15%

34. Customized to Independent Retailer

35. Personalized to Customer

36. Customizable Web-to-Print Marketing Postcards Custom Mini Catalogs Brochures Newspaper Ads Flyers Bag Stuffers Posters Banners Shelf-Talkers Gift Certificates And much, much more…

37. Improved Control of Print Spend • Short runs printed on demand reduce cost of inventory, obsolescence • New capability for distribute-and-print model reduces shipping costs

38. Introducing the Kodak MarketMover Network

39. Printers need partners to load balance and offer distribute and print. Printers without digital need to fulfill digital print orders. Marketing organization/print buyer wants to access new printing technologies through a global network. Kodak customer looking to promote new solutions to new and existing clients. Industry Challenges …

40. … facilitating seamless connection between companies who require print services and those that deliver such services. Expanding the opportunities new printing technologies can offer. Driving demand and enables print service providers to easily serve market opportunities and build their print volume. Removing barriers and making it easy for marketers to take advantage of advanced services like web-to-print and digital printing to drive a higher return on their marketing spend. The Kodak MarketMover Network… Kodak is focused on driving success for our customers!

41. How It Works – Print Provider to Print Provider Distribute & print Local Florida printer ABC CorporationLarge monthly job CA NY Worldly Corp. Needs print in CA and NY Kodak NexPress user – meeting peak demands Load balancing XYZ CorporationOccasional digital work Print service provider with no digital printing capability Expanding services

42. How It Works – New Enterprise Customer Call 800# Develop direct relationship Looking for global supply chain New enterprise customer New marketing agency New demand aggregator Existing Four51 client Describes print requirements Receives list of Service Providers Choose printer(s), with flexibility to change or add suppliers Pricing between printer and customer Build a web-to-print catalog

43. The Kodak MarketMover Network (KMN) • -Establishes a community of print providers, suppliers and print buyers. • Creates a global supply chain • Connects print buyers and print providers via the web and our support center • Enables print providers to expand their range of products and services to grow their business • Provides Kodak customers with an innovative web-to-print solution • Brings the power of the Kodak brand to our customers marketing effort

44. Job submission via the web Job specification, price quotes and payment via PO’s, charge card or PayPal Ability to offer different price points based on user login Order tracking via UPS and FedEx Online client catalogs – static/template-driven Private branding options Custom design options available Shopping cart, pricing and payment Templates use PageFlex, allows versioning as well as variable data jobs (Plus) Ability to order non-print material (Plus) Major Web-To-Print Functionality

45. The Kodak MarketMover network advantage Solutions cover all print applications Power of the Kodak brand Building relationships • Imaging innovator • Excellence in imaging, color, workflow • Global sales, service and support • Not just digital • Expanding workflow beyond brick & mortar • Driving efficiencies and building business • Driving page volume by creating an online community of print buyers and service providers

46. What Can Print Do For You? • Target audiences with relevant messages • Improve marketing ROI • Increase response rates • Open new communication channels • Help you meet your business objectives Customer logo goes here 46

47. www.marketmover.kodak.com Kara.Holder@Kodak.com WWW.KODAK.COM 47