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To: Chuzzlewit who wrote (103354)2/20/1999 2:36:00 PM
From: Mohan Marette  Read Replies (1) | Respond to of 176387
 
Why would anybody buy a faster computer? Ask Homer Simpson.

Paul:

The questions is at least as old as the 286 machines,'cos people asked the same questions then as they do now and am sure the question will be there when Intel comes up with 1000 HHz machines in another year or two and beyond, besides this little strategy of Intel just might work,we'll see.

I am counting on Homer to sell them suckers.<g>

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(Courtesy:MarketingComputers)

February 18, 1999

Intel Invests $300 Million in Marketing Efforts

Despite the toughest competition it's faced in years, Intel's real challenge is itself. Its rapid processor evolution brings an increasingly difficult question: why should consumers rush out to buy its latest chip. To stave off any doubts amid computer buyers, the Santa Clara-based giant is flexing a marketing muscle three times the size of years past. With a budget of $300 million for its Pentium III advertising, the company is investing the largest amount ever, an executive told MC yesterday.

The stakes are higher for the Pentium III launch than for those of its predecessors, and Intel knows it. According to New York's Competitive Media Reporting, Intel spent a paltry $90 million from January through November 1998. IBM, the top ranked tech advertiser, shelled out $272 million during the same period. The teaser effort broke earlier this month, but the full-blown campaign, including national television and outdoor, will break Feb. 28.

The teaser ads follow a "giant blue door" theme. A TV spot and outdoor ads feature a huge blue door emblazoned with only the white ring of "Intel Inside" logo in addition to the cryptic phrase and the URL, www.intel.com. In the TV ad, various characters--from an animated, big bad wolf to a cyber-robot--try to bust down the blue door, all in vain. Only a little girl has enough savvy to ring the doorbell (Aaawww). And, hence, Intel hopes the magic begins.

In its latest stab at hoopla, the chip maker held the Pentium III Processor Preview Day at the San Jose Convention Center for a horde of tech hungry journalists chomping at the bit to see what this newest technology can do. The event, however, hints at the difficulty Intel faces in building momentum for the new processor.

Dwelling on the bright side of its marketing prowess, CEO Craig Barrett made light of Intel's past attempts at wowing the media. He quipped in his keynote speech about how only 10 journalists showed up to a similar forum in 1993. Among the significantly larger crowd, you could almost hear the grating Ha-Ha of the Simpson's Nelson Munce.

Later, the stage backdrop--you guessed it--a blue door that dwarfed Barrett and other speaking comrades opened with the grandeur of a Spinal Tap show. Smoke, laser lights and snappy techno music revealed the demo floor, featuring dozens of the companies incorporating the new chip and its new features.

For all the hubbub, though, the question of "why" still looms large. Unless you're really into 3D, the driving feature, not much of the demo was compelling. In fact, some companies are forcing the new application into their product unnecessarily. Take Excite, as it prepares to launch Excite Extreme: the search engine in 3D. The "enhanced" portal replaces its intuitive search interface with what looks more like a corporate CD-ROM complete with floating bubbles and garish colors. Great. Just what we needed. And just what will compel millions of consumers to buy Pentium III-equipped PCs.

--Jennifer Saba