What were the advantages and weaknesses of the Intel Inside advertising campaign? I think it was a courageous and excellent business move for Intel to distinguish itself from an ‘item’ like position and set up itself as the ‘brains’ of the computer industry. Intel didn’t keep a low profile and make itself known. CEOs tended to see sales of semiconductors and processors as engineer to engineer-type sales believing that they were simply fact centered: who has the best product after the evaluation.
They employed partnership marketing to create stronger customer human relationships and increase earnings. Intel thought we would have its logo on its customer’s products increasing the profile of lesser-known computer manufacturers and at the same time leveling the field of computer manufacturers. The advertising campaign shipped results for the partners in a big way. It had been a gamble as the best three did not buy in in the beginning. They worried it diminished their position.
Intel allowed the firms to individually choose their ads and they would pay up to 50% of the price to the point of 3% of sales. This was absolutely earn/win for smaller manufacturers and engendered great devotion. It also comforted the most timid and least financially able consumer and again engendered great loyalty. The campaign promised upgradability (a large problem at the time, as individuals were continually forced to buy a complete new computer to keep up), power, affordability, someone, and compatibility to stand behind the purchase. I think a major strength is that Intel understood the insecurities of its ultimate market and addressed them reducing anxiety. In the long run it compelled the bigger manufacturers to play Intel’s game also.
For consumers, in a fresh and frightening world fairly, the branding displayed quality and safety. This is sorely needed at the right time when few consumers considered themselves experienced to choose a computer. A weakness is that the Intel numbering system had not been patentable and therefore made them vulnerable. I recall the controversy about the Pentium naming and I used to be a housewife at that time with small children (meaning I was not exactly in the know.) There was significant free advertising in this controversy alone.
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- ► July 2015 (1)
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The logo design itself experienced a weakness in translation to other civilizations. I think a final weakness may maintain giving up on the marketing campaign too soon. 2. Evaluate Intel’s continuing use of the Pentium category of processors. Does Intel to make the right decision by increasing the real name through the Pentium 4 processor? Absolutely, I believe that they did the right thing. Pentium became the ‘name’ of the right amount of digesting power at that time.
It got cache such as a designer label for computer industry signifying that you were current and knowledgeable. It is an initial high price re-enforced its exclusivity and quality. Although sales were slow initially, they rose significantly when the purchase price dropped based on this mystique of exclusivity and the cache to be ‘the’ brand. Now, the previous ‘product or ingredient’ was such a large brand that they could advertise during the Super Bowl! Again, they understood the ultimate customer so well. It had been men that normally purchased and computers became the new phallic sign for techie yuppies. 3. Suppose you were the principle Marketing Officer for AMD.
How would you suggest that AMD institute an Inside¬ like ad campaign? That is a hardcore question. I assume that being number two is difficult and you could choose a Hertz type of ad “we try harder” but they should try harder to find personnel with the vision to promote as an initial step.
I believe I would identify the best buyer. I would realize the maleness of the client, the testosterone-driven competition for ‘more power” yet the anxieties involved with fear of insufficient knowledge to perform or fix the computer. From I would embrace having there, Nascar or exactly where the male, knowledge/ competitive types were.
4. Evaluate Intel’s segmentation strategy. Is having a good/better/best products the best placement for Intel. Should I discontinue a line(s) and focus on the other(s). I think that I would be lured to spin off the cheapest end chips now. They may be established and they could generate an important market on their own however they dilute the quality message that I believe will be crucial to Intel in the years ahead into consumer products. Many pharmaceutical companies do this when their products are nearing the final end of their patents. They continue steadily to get revenue however they decrease the price to a generic level and frequently just spin the merchandise off to concentrate on a lot of money makers.
Intel has been the everything to everybody company as yet. At one time Toyota built bicycles too, however they moved on. Celeron should be spun off to compete with and draw AMD’s attention. I believe that they need to keep up with the better and best lines to accentuate the message of high quality because of their other products specifically for B2B as well as for consumer products. They also need to concentrate on QUALITY production.