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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Curbstone who wrote (24523)5/11/2000 5:13:00 AM
From: chaz  Read Replies (3) of 54805
 
Most of my publishing career involved advertising issues, much of it in high tech. Co-op programs in my time most frequently involved distributor support, but just as we have seen companies now chase market share in lieu of profits...the first mover notion, marketers then would devote large chunks of their seed money to advertising in the technical press to capture the mind share among engineers who might design using their products...now we call those "design wins."

Sadly, many tech companies, especially those headed by gifted technical people, mistakenly undervalue the power of advertising because they believe the strength of their better mouse trap is sufficient. The better mouse trap, combined with powerful advertising, shrinks the time frame to market share dominance, while foreclosing competitive oppportunities.

For companies whose products go into items moved at retail, you need to tell the consumer what your product does, not what it is. The Intel promotion model is outstanding. QCOM would do well to follow it...even down to hiring the ad agency that pulled it off. Investing in a good program would do more for LT shareholder value than a buyback, and it (probably) wouldn't cost nearly as much.

Chaz
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