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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel?
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To: JB who wrote (767)12/17/1998 9:38:00 PM
From: Paul Franceus  Read Replies (1) of 20297
 

To brand or not to brand?

The downside is the cost for advertising, the money might be better spent elsewhere.
Does the customer really care they are using CKFR. Is .10 cents of revenue worth $5.00
to advertise (AMZN strategy) The second negative is if you brand with Yahoo, other
portals might chose a competitor. If you stay in the background you are a partner not a
competitor.


I'm in favor of branding. A brand can be a wonderful thing. After all, brand is almost the only thing that makes the Coca-Cola company worth anything at all.

And look at Intel. You could easily have made the argument (and many did) that intel was crazy to advertize "intel inside." After all, who cares as long as it's fast and compatible with the software I want to run.

Well that simple act by intel was nearly enough to drive all their competitors out of business. Heck, we even have Intel ads with Homer Simpson in them. This is for a microprocessor?

Paul
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