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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Mercer-Hursh who wrote (29640)	8/8/2000 3:12:25 PM
From: ggamer	Read Replies (1) \| Respond to of 54805

INTC advertises to the ultimate consumers all the time. Everyone therefore asks for PCs with only INTC inside. GGamer QCOM, Toll Gate to 3G Spinco, Engine to 3G

To: Thomas Mercer-Hursh who wrote (29640)	8/8/2000 4:40:33 PM
From: marketing1	Read Replies (2) \| Respond to of 54805

<I don't think QCOM has any problem with market awareness among those who are its real customers and prospects> Respectfully said, you missed the main point of my post. I will elaborate. Push vs Pull marketing theory dictates that there are 2 basic ways to stimulate demand for goods and services. 1. PUSH products through distribution channels by selling to those OEMs who are market friendly and dominate their space. One problem with this approach is that some of the leading brand names in cell phones and infrastructure eg Nokia and Erickson seem to be promoting the competing GSM technology. So this is probably not a good strategy at this time. 2. PULL the product through distribution channels by stimulating the end consumer demand. AHAH!! A better strategy in these market conditions. Instead of burying Q in one paragraph in the handset manual, the PULL theory suggests (similar to the Intel inside model) that marketing clearly communicate Q’s unique marketing position, to create brand awareness to the end consumer. Even if Q/CDMA gateway to 3G is too far out there for the average consumer to understand today. A Marketing campaign could easily be created that starts with creating awareness of the benefits today of selecting CDMA technology for your cellphone . (Better clearer reception, less dropped calls etc) Once brand awareness is developed with the end consumer, the second stage of the marketing campaign builds on that awareness and educates the end consumer to Q/CDMA as the gateway to 3G. Once QCOM owns that space Q/CDMA as the gateway to 3G, the strength and size of the value chain increases exponentially. Moore talks about this in the manual. I would quote him but I loaned my manual to our daughter in college and it is not readily accessible. How many consumers EACH DAY choose GSM/TDMA/PDC technology when they purchase a new cellphone without ever understanding the benefits that CDMA technology offers them. If consumers understood the difference that a CDMA phone could make in their voice conversations, they would choose CDMA. Obviously, this results in a increased market share, since I suspect that most consumers in many major metropolitan areas in the US can choose their TECHNOLOGY STANDARD FIRST and then their carrier. Verizon understands the benefits of brand awareness. The following article regarding Verizon gives some basic good understanding of how and why Verizon wants to accomplish brand awareness. [Verizon Launching Huge Brand Advertising Campaign] Sunday July 30 10:40 AM ET Message 14136780. Once QCOM has clearly won the game of market share on its own turf, we can play the “away game” from a position of strength. A basic premise of international marketing is that if a company cannot convince a majority of consumers in its own country of the benefits of its technology, its international marketing effort is understandably compromised. Well, I am getting off the point. Simply said, IMHO Q has a window of opportunity right now and needs to communicate to the end consumer the unique benefits that Q has to offer today and build consumer awareness as Q/CDMA gateway to 3G. Regards, Ps. Thanks to Malcoln Bersohn and sditto for the vote of confidence but I don’t want a job at QCOM. I want to retire on the appreciation of my QCOM holdings. Also sditto- I just started reading Living on the fault line, haven’t read Crossing the Chasm or Inside the Tornado. but I intend to do so after the kids go back to school . I will keep you posted.