7. If a survey is to be conducted to determine businesses’ selection criterion f

Question

7. If a survey is to be conducted to determine businesses’ selection criterion for choosing PC and network communications products, which survey method should be used and why?

8. Design a questionnaire for determining businesses’ selection criterion for choosing PC and network communications products.

INTEL: Building Blocks Inside Out

The Intel Corporation (www.intel.com) was founded in 1968 to build semiconductor memory products. It introduced the world’s first microprocessor in 1971. Microprocessors, also referred to as central processing units (CPUs), often are described as the “brain” of a computer. Today, Intel supplies the building blocks for the computing and communications industries worldwide. These building blocks include chips, boards, systems, and software, and they are used in computers, servers, and networking/communications products. Most of Intel’s customers fall into two separate groups: the original equipment manufacturers (OEMs) and the PC and network communications products users. The OEMs manufacture computer systems, cellular handsets and handheld computing devices, telecommunications and networking communications equipment, and peripherals. The PC and network communications products users include individuals, large and small businesses, and service providers, who buy Intel’s PC enhancements, networking products, and business communications products through reseller, retail, e-business, and OEM channels. Intel is an increasingly global company. Only 35 percent of its revenues are from North America, whereas Asia and Europe comprise 31 percent and 25 percent, respectively. Revenues for fiscal year 2010 amounted to $43.62 billion. Intel has shown phenomenal growth as a company. Much of Intel’s success can be attributed to innovation within its marketing department. This innovation was required to overcome several obstacles. The main problem Intel faced was trying to sell an ingredient brand, which is a component of a larger product. Thus, the difficulty is in reaching consumers that will never see your product and might not even know what it does or why it is there. Intel began marketing research in the 1980s because it was having difficulty with its customers not upgrading from the 286 to the 386 microprocessor. Marketing research showed that this was due to a lack of customer awareness, and Intel set out to change that. It conducted a small but effective advertising campaign. In fact, in the process it realized that it had inadvertently created a brand in Intel. Because of the success of this small campaign, Intel began to realize the importance of marketing and marketing research and started to focus more effort and money on these areas. Marketing research revealed that in order to be effective in its overall marketing campaign, Intel would have to reach the consumers and convince them that what was inside the computer was as important as what was on the outside. This became the key element of the “Intel Inside” campaign conducted during the early 1990s. This slogan helped Intel put a name with its products, and it helped it encompass several of its products under one title. Furthermore, marketing research showed that it would be most effective to cross-market with its technology partners. This would help consumers understand the products that Intel helped make up. It did this by including the “Intel Inside” logo in its partners’ ads. It also helped fund these advertisements. A problem with including its slogan in other ads is that Intel did not want to intrude on the commercials. It decided to help make the small logo sink in by accompanying it with a jingle every time it was displayed. This jingle has become extremely recognizable and synonymous with Intel’s slogan. All of this helped Intel realize its goal of increased consumer awareness. Longitudinal measurement of advertising effectiveness via marketing research revealed that the “Intel Inside” campaign was very effective. Intel’s next idea was to come up with a name for its microprocessor. This would help it to avoid using the numbering scheme, which was nonpatentable, and to find a name that consumers could identify their processors with. After extensive marketing research, Intel chose the name “Pentium,” which it found generated positive reactions with its consumers. Intel has been marketing its processors under this name ever since. Between 1990 and 1993, Intel invested $500 million in advertising to build its brand equity. By 1993, 80 percent of people in the United States recognized Intel and 75 percent had positive feelings about the brand. Most important, 50 percent of consumers looked for the brand when they were shopping. By 1994, Intel had captured 95 percent of the microprocessor market, due in large part to its marketing efforts. Intel’s market share for microprocessors slipped to about 80 percent in 2005 as a result of increased competition from its main competitor, AMD. On December 30, 2005, Intel announced a major overhaul of its corporate and product branding, a move designed to symbolize the chip maker’s transformation into a supplier for products beyond personal computers. The changes included a new version of the company’s blue logo—without the lowered “e” that had long been a part of Intel’s branding—along with a new tagline, “Leap Ahead.” As of 2006, Intel no longer used the well-known “Intel Inside” logo. In 2009 to better align major product groups around the core competencies of Intel architecture and manufacturing operations, Intel reorganized itself into nine operating segments. The increased competition makes Intel’s marketing research efforts more important than ever as it attempts to preserve its dominant place in the market. Intel has been able to be very successful because of its focus on technology, brand image, and brand equity. Intel still faces future challenges, including increased competition, the opening of new markets, and the development of new products. Intel will continue to rely on marketing research to meet these challenges. Conclusion Marketing research has played a critical role in Intel’s phenomenal growth. Marketing research was instrumental in developing the Intel brand, designing the “Intel Inside” campaign, and crafting the new logo with the “Leap Ahead” tag line. Continued reliance on marketing research will enable Intel to enhance its image as a preeminent building block supplier inside out.

Explanation / Answer

Intel management faces many decision problem to increase preference of intel chip in business and individual segment.

Weak PC market : Global PC sell decline by 6.7% in the year 2015 this leads to decrease in the sale of intel chip. Intel managed to grow its chip manufacturing by 6% on year on year but due to these intel chip is decline by 13%.

The reason for this decline is the new market for mobile computing that expands rapidly due to introduction of i-phone and other smart phones. Intel competes with competitors in this field and make their market by better technology and on price basis. Common competitors is ARM holding plc, , Qualcomm, Advance micro devices inc..

Intel current chips is much more powerful but costlier. Individual users delay in purchase as they have enough processing speed from old to run their needed applications. If some applications is not supporting and they look for alternative for support or programmed their own chip from market.

Consumers and business delay PC upgrade as tey are waiting for new windows operating system.

New products are developed by intel for many market but new product failure is high. 90% new product of intel is failed as compared to average 70% product failure in market. Top 20 food companies enjoyed 75% of new product success and around 20,000 companies enjoyed 11.3% new product success.

The new product is mainly infernal driven in intel it self but it is not customer driven. Specifically the target market customer is not asses properly for their needs and complains. for that intel follows a three step marketing process.

a. Existing customers: these customer had a problem with product and purchase solution.

b.Potentials: the group of customers that not purchase the product but tried same problem from internal.

c.Evaluators: this includes both the existing customer and customers that selected your competition.

At all this level of group marketing needs to listen the customer sincerely by following the process decided by the management and get the feedback and solution by the help of technology team and other management

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