Tuesday, November 3, 2009

Promoting organization and not the product

Intel has always been an organization believing in promoting name of the organisation and the brand it stands for rather than promoting any specific product of its own. It has repeated the attempt yet again and this time with all its might . In couple of recent adds where intel describes how its stars are different from common stars and in other where it talks about "our inventions are so big that you can not see them". In first impact it gave me feeling of some political parties which normally promote parties rather than promoting the work done by them but they do so because they have not done any work and they dont have any thing to talk about on the contrary this can never be case with intel which is so fast in product development that the time it releases its ad for one product till than you have other products on the shelf .

Than what prompts organisations to promote themselves rather than any specific product , one reason for sure is that they have moved beyond any competition and competitor in specific product segments which make them fearless knowing their products are picked up by customers anyway. but whats the objective of such ads In old time intels advertisements were criticised saying they don't provide any ( or enough) reason to buy the intel processor.These ads have been able to build a strong top of the mind recall and a better brand value for intel so much so that even people who do not know computers or whats a processor know intel exist at the same time it is difficult to name any other competitor in the same industry ( specially when intel captures 80% of the market share).
In case of companies like Intel the start of such campaign is the kind of product or services they are in, a processor may have been the most critical part of the PC but it was always hidden from the customer and that is where Intel changed the game with intel inside program plus it was very difficult to market or advertise the complexity and benefit of processor to a normal end user so it was easy to just ensure that the name Intel is known .
One more such attempt was recent ad of Tata with tag line "Desh ko hum chalate hai" for one moment I got confused that this is an advertisement of a political party specially its timing with elections but an organization like Tata which is servicing so many touch points of our daily lives can certainly claim that they run a major part of the country and the benefit will be in terms of much needed trust and goodwill.

Overall I feel such marketing happens in following cases
1) Surrogate marketing where product is tobacco, alcohol and can not be promoted directly2) Organizations which have too many products and services either in the same area (bank, LIC) or in diversified areas3) If the product is too complex to explain 4) Political parties or social organizations.

2 comments:

Sandeep Khedkar said...

A great observation. That actually set me thinking on why is the campaign such a huge success.
It then dawns on us that what we see today is the result of a lot of right things that Intel has been doing for so many years. (One of) The last campaign was "Intel Inside". This sticker is on every possible PC Laptop you see around! Anyone using computers in any way sees there is Intel Inside!!!!!!
And now Intel says their stars are different from others!
Just makes me want to imagine their actual business operations and processes...how much innovative and effective they are in reality to advertis ethe way they are doing!

Saurabh said...

thnks Sandeep,
First of all it feels that intel realised thier old ad "Intel Inside" is now getting older so they set themslevs on new branding with the only chip makers having an ad on television reaching to mass media customers and non customers equally , secondly I feel they are innovative remember how they innovated inverted chip fabrication to eliminate impurities and dirt with being innovative they are also quick to correct thier mistakes and catch up with market like transition from CISC to RISK