Lexmark 2009 Annual Report Download - page 13

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 or the usage rate of those products. Lexmark’s management believes the Company 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 covering the Company’s line of printing products and technology
solutions including maintenance, consulting, systems integration and Managed Print Services (MPS)
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 management and optimization of their output environment and document related
workflow/business processes. Managed print services allow organizations to outsource fleet
management, technical support, supplies replenishment, maintenance activities and other services to
Lexmark.
Through its MPS offerings, Lexmark provides customers with managed print services, giving them
complete visibility and control over their printing environment. These services include asset lifecycle
management, implementation and decommissioning services, consumables management, optimization
services and utilization management. These services can be tailored to meet each customer’s unique
needs and give them more extensive knowledge and optimization of their printing assets and
infrastructure.
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 financial services, retail, manufacturing,
education, government 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 business customers are organized to meet the
needs of the local jurisdictions and the size of their markets. Operations in Europe, Middle East, Africa
(EMEA), North America, Latin America and Asia Pacific focus on large-account and SMB demand
generation with orders primarily filled through distributors and resellers.
The Company’s laser printer supplies are generally available at the customer’s preferred point-of-purchase
through multiple channels of distribution. Although channel mix varies somewhat depending upon the
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