Lexmark 2007 Annual Report Download - page 12

Dot Matrix Products
Lexmark continues to market several dot matrix printer models for customers who print multi-part forms.
Supplies
Lexmark designs, manufactures and distributes a variety of cartridges and other supplies for use in its
installed base of laser, inkjet and dot matrix printers. Lexmark’s revenue and profit growth from its supplies
business is directly linked to the Company’s ability to increase the installed base of its laser and inkjet
products and customer usage of those products. Management believes Lexmark is an industry leader with
regard to the recovery, remanufacture, reuse and recycling of used laser supplies cartridges, helping to
keep empty cartridges out of landfills. Attaining that leadership position was made possible by the
Company’s various empty cartridge collection programs around the world. Lexmark continues to
launch new programs and expand existing cartridge collection programs to further expand its
remanufacturing business and this environmental commitment.
Service and Support
Lexmark offers a wide range of services to bring together the Company’s line of printing products and
technology solutions along with maintenance, consulting, systems integration and distributed fleet
management capabilities to provide a comprehensive output solution. Lexmark Global Services
provide customers with an assessment of their current environment and a recommendation and
implementation plan for the future state and ongoing optimization of their output environment and
document related workflow/business processes. Managed print services allow organizations to
outsource fleet management, technical support, supplies replenishment and maintenance activities to
Lexmark.
Through its Distributed Fleet Management (“DFM”) services, Lexmark provides large enterprise
customers with managed print services, giving them complete visibility and control over their printing
environment. These services include asset lifecycle management, consumables management and
utilization management. These services can be tailored to meet each customer’s unique needs and
give them more extensive knowledge about their printing assets and infrastructure. Lexmark Fleet
Manager is an offering for partners who wish to leverage Lexmark’s enterprise infrastructure and
capabilities to provide their small and medium business customers with managed print services.
The Company’s printer products generally include a warranty period of at least one year, and customers
typically have the option to purchase an extended warranty.
Marketing and Distribution
Lexmark employs large-account sales and marketing teams whose mission is to generate demand for its
business printing solutions and services, primarily among large corporations as well as the public sector.
Sales and marketing teams primarily focus on industries such as finance, services, retail, manufacturing,
public sector and health care. Those teams, in conjunction with the Company’s development and
manufacturing teams, are able to customize printing solutions to meet customer needs for printing
electronic forms, media handling, duplex printing and other document workflow solutions. Lexmark
also markets its laser and inkjet products increasingly through SMB teams who work closely with
channel partners. The Company distributes and fulfills its products to business customers primarily
through its well-established distributor and reseller network. Lexmark’s products are also sold through
solution providers, which offer custom solutions to specific markets, and through direct response resellers.
Lexmark’s international sales and marketing activities for the business market are organized to meet the
needs of the local jurisdictions and the size of their markets. Operations in North America, Latin America,
Asia Pacific and Western Europe focus on large-account demand generation with orders primarily filled
through distributors and resellers.
6