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Intel Case

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Intel Case
CHAPTER 17 DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS 17-1

MARKETING SPOTLIGHT INTEL

Intel makes the microprocessors that are found in 80 percent of the world’s

personal computers. In the early days, Intel microprocessors were known simply

by their engineering numbers, such as “80386” or “80486.” Intel positioned

its chips as the most advanced. The trouble was, as Intel soon learned, numbers

can’t be trademarked. Competitors came out with their own “486” chips,

and Intel had no way to distinguish itself from the competition. Worse, Intel’s

products were hidden from consumers, buried deep inside PCs. With a hidden,

untrademarked product, Intel had a hard time convincing consumers to pay

more for its high-performance products.

Intel’s response was a marketing campaign that created history. The company

chose a trademarkable name (Pentium) and launched a marketing campaign

to build awareness of the Intel brand. The “Intel Inside” campaign was

Intel’s effort to get its name outside of the PC and into the minds of consumers.

Intel used an innovative cooperative scheme to extend the reach of its campaign.

It would help computer makers who used Intel processors to advertise

their PCs if the makers also included the Intel logo in their ads. Intel also gave

computer manufacturers a rebate on Intel processors if they agreed to place an

“Intel Inside” sticker on the outside of their PCs and laptops.

Simultaneously with the cooperative ads, Intel began its own ad program to

familiarize consumers with the Intel name. The “Intel Inside” campaign changed

Intel’s image from a microprocessor maker to a quality standard-bearer. The

ads that included the Intel Inside logo were designed to create confidence in the

consumer’s mind that purchasing a personal computer with an Intel microprocessor

was both a safe and technologically sound choice. Between 1990

and 1993, Intel invested over $500

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