MARKETING SPOTLIGHT INTEL
Intel makes the microprocessors that are found in 80 percent of the world’s
personal computers. In the early days, Intel microprocessors were known simply
by their engineering numbers, such as “80386” or “80486.” Intel positioned
its chips as the most advanced. The trouble was, as Intel soon learned, numbers
can’t be trademarked. Competitors came out with their own “486” chips,
and Intel had no way to distinguish itself from the competition. Worse, Intel’s
products were hidden from consumers, buried deep inside PCs. With a hidden,
untrademarked product, Intel had a hard time convincing consumers to pay
more for its high-performance products.
Intel’s response was a marketing campaign that created history. The company
chose a trademarkable name (Pentium) and launched a marketing campaign
to build awareness of the Intel brand. The “Intel Inside” campaign was
Intel’s effort to get its name outside of the PC and into the minds of consumers.
Intel used an innovative cooperative scheme to extend the reach of its campaign.
It would help computer makers who used Intel processors to advertise
their PCs if the makers also included the Intel logo in their ads. Intel also gave
computer manufacturers a rebate on Intel processors if they agreed to place an
“Intel Inside” sticker on the outside of their PCs and laptops.
Simultaneously with the cooperative ads, Intel began its own ad program to
familiarize consumers with the Intel name. The “Intel Inside” campaign changed
Intel’s image from a microprocessor maker to a quality standard-bearer. The
ads that included the Intel Inside logo were designed to create confidence in the
consumer’s mind that purchasing a personal computer with an Intel microprocessor
was both a safe and technologically sound choice. Between 1990
and 1993, Intel invested over $500