Intel’s Marketing Research Analysis Assessment Answer

Intel's Marketing Research Analysis Assignment

Question – 1

During the initial period of Intel Company, customers were not able to upgrade their microprocessor from version 286 to 286. Upon carrying out marketing research, it was found that most of the customers were not aware of the change process. Thus, Intel took a step forward and conducted an advertising campaign to make their customers aware of the company products and upgrades. In this process, many customers noticed the brand name of “Intel” and in this process Intel Company realized the significance of conducting marketing research and thus, started to invest more on marketing research process. (Naresh K., 2010)

After conducting in – depth marketing research it was found that Intel must convince their customers about their products’ in and out functionality in order to bring out an effective marketing strategy campaign. Thus, the tagline / slogan for Intel came out to be “Intel Inside” in the year 1990 and were extremely popular. This slogan helped Intel Company to include several other ranges of their products in this title. (Naresh K., 2010) Further marketing research revealed that Intel Company can gain more popularity by cross – marketing with its various technology partners. Thus, Intel started to include its slogan “Intel Inside” in its “Partners” ads. This campaign became very successful and the aim of achieving consumer awareness was also successful. Intel underwent major changes in the year 2005 associated with its product branding. The main aim of this change was to create awareness among customers about the transformation of the Intel Company from a chipmaker to product supplier apart from personal computers. Changes to this particular marketing strategy included changing the Intel’s brand blue logo without the lowered “e” in the brand name and a new slogan “Leap ahead” was introduced in market. (Naresh K., 2010) Thus, it can be concluded that Intel’s innovative thinking adopted in its branding strategy is very effective. (SHAPIRO, 2013)

Question – 2:

Intel’s first and foremost priority focus was to design and develop an innovative manufacturing process for ICs (Integrated Circuits), which is more cost effective and productive compared to the existing system. Thus, few new manufacturing processes were developed and tested simultaneously to analyze the best production process. Considering the need to design and develop a new manufacturing process for Integrated Circuits that is more productive and cost effective, makes it very clear that Intel is focusing to expand their customer base by concentrating on different potential target markets such as individual personal users’ and also various business user segments. Thus, the management decision problem for the Intel Company can be defined as the analysis and evaluations of several manufacturing processes for Integrated Circuits and finalizes a method for production which is cost effective and innovative. (Jackson, 2010) The criteria for choosing the best manufacturing process is to simultaneously operate all the processes and evaluate them based on the pre – set criteria (cost, production rate, quality, quantity etc). Thus, by effectively implementing this management decision problem, Intel can achieve to enhance the preferences of ICs among various users’ such as business user segments and individual (personal) users’.

Question – 3

Proper definition of a problem in any project is very necessary, because a clearly defined and identified problem lead to conducting a research project properly. Thus, it can be said that proper definition of a marketing research problem provides an exact focus on the whole project requirements and approach. Stating the specific marketing research problem and analyzing its specific components constitutes the problem definition. Research can be properly designed and conducted only when a clear definition of marketing research problem is provided. (Kapoor, 2013)

In order to acquire a proper idea to the background study of a particular marketing research problem, it is the duty of the researcher to analyze, understand and evaluate the client’s company and industry. Factors such as constraints of the company and available resources, aims of decision maker etc that affect the definition of a marketing research problem are considered by the researcher and evaluated. On the other hand, management decision problem provide details about what steps are necessary to be taken by the Decision Maker (DM) and whereas, the main purpose of marketing research problem is to identify what information about the project is required and what are the possible ways to acquire these information. (Kapoor, 2013)

Basically, the management decision problem is associated with action. In other words, the management decision problem is concerned about what approach or method can be taken by a decision maker. On the other hand, marketing research problem is information – specific. The role of marketing decision problem in any project is to identify what information is required to take up the best decision depending on the situation. It also involves identifying the possible ways to gather the required information efficiently and effectively. Focus of management decision problem is mainly on symptoms and marketing research problem on causes. (Kapoor, 2013)

Marketing Research Problem is to effectively analyze the possible ways to gather information regarding the current technologies and approaches used for manufacturing process of ICs to enhance productivity overall and also is cost effective

Research Objectives are as defined below:

• To conduct quantitative analysis to analyze the best technology and approaches used for the manufacturing process of Integrated Circuits
• Also, identify the Competitor strategies and approaches and evaluate them accordingly
• Developed approaches for manufacturing process are to be implemented and evaluated simultaneously by carrying out in – depth Observation analysis
• Factors that are to be considered for the best manufacturing process are to be identified and validated

Question – 4

The Data that is available and retrieved from a previously conducted research by another researcher is known as Secondary Data. Secondary data is generally gathered prior to conducting a research to compare and analyze the results for reference purpose. (Szabo & Strang, 1997) In order to collect secondary data for the purpose of research, the most feasible source that can be used is Internet. Various journal articles were used to understand the concepts of management decision problem and marketing research problem. Also, few blogs on management decision problem and marketing research strategy used by Intel were used to understand the background of the company. Following are two URLs that have useful information and can help Intel Company to enhance their marketing strategies and research - based problem:

1. https://www.qualtrics.com/blog/research-problem/

The above mentioned blog link provide step – by – step approach to design and develop the Research Problem. Advantage of using this link is that the approach to research problem provided is extremely easy.

1. https://hbr.org/1996/11/inside-intel

The above mentioned link is an article written on the Intel Company and is titled as “Intel Inside”. Though the article is of 1996 year issue, the article provides an in – depth insight of the Intel Company’s marketing strategies, their product development and the transformation process of an Integrated Circuit chip manufacturer, to microprocessor developer etc. This article can be used by the marketing team of Intel to understand the proper background of the Company.

Question – 5:

Target market can be defined as the group or category of customers focused by a company to sell their products or services and gain popularity among them. Following are the target markets identified for both the qualitative research methodology and quantitative research methodology.

• Qualitative Research Methodology – Following are the three target markets identified for carrying out the Qualitative Research.

1. Observation – This method is extremely useful to understand the previous marketing strategies adopted by the company and its competitors and also to analyze the transformation process of the Company. For this research methodology, company documents, articles etc can be referred
2. Focus Group Discussion – This research methodology is useful to understand the marketing strategies and perspectives of each of the employee involved in designing and managing the company’s extensive global marketing strategies.
3. Interviews – Higher authorities of the Company or Industry will be interviewed to understand their expectations from the marketing strategy, the approach to be chosen to target the particular market, global and local marketing strategies. Also, the previously used strategies and approach can be understood from this particular research method.

• Quantitative Research Methodology – Following are the two target markets identified for carrying out the Quantitative Research.

1. Surveys– All the previously conducted survey questions and results will be identified, analyzed and used to formulate the marketing strategy for the Company. This particular research methodology is useful to have a look at the real – time analysis of the company’s background.
2. Questionnaires - This approach will be used on customers to ask their perspectives of the Company’s products, marketing effectiveness etc

Question – 6:

Qualitative research can be extremely useful in understanding the best available Personal Computers PCs and also network communication products that are available in market. Companies make use of qualitative research to understand the leading PC provider in market considering few important factors for purchase such as – cost range, storage, features, applications etc. The types of qualitative research methodologies that can be used by companies for this purpose are – (a) Observation and (b) Interviews / Discussions.

Observation is one of the effective and efficient qualitative research methodology approaches. Also, it is extremely feasible to use and has no time constraints. Companies can use online blogs, website, and discussion forums to observe and analyze and evaluate the best available PC and network communication products providers in market. Factors that are necessary for purchases are easily compared on websites and conclusions are drawn. Observation requires an individual to possess strong analysis skills to understand the differences between products of various company brands.

Discussions or Interviews is yet another effective qualitative research methodology approach. Intel Company executive who is assigned to make a choice on leading PC and network communication products services in market can actually approach customer executives of the PC provider company and carry out discussion with them and come to a conclusion on purchase of products.

Question – 7

A Survey can be defined as a qualitative research method that is conducted in the form of a brief discussion or interview with particular individuals regarding a specific topic to draw conclusion on it. ("What Is Survey Research", 2016) The most feasible Survey approach that can be used to identify the businesses selection criteria to choose a specific PC and related network communication products is Online Questionnaire Survey. Questionnaire survey provides results in real – time and is very effective, feasible and efficient method. Two of the ethical issues that must be considered and addressed by the Intel Company are as mentioned below –

1. Respondents’ personal information gathered during questionnaire survey such as name, address, gender, contact details etc will not be revealed in public nor used anywhere and will be highly secured
2. Questionnaire survey does not intend to hurt anyone’s sentiments and emotions. It is solely for the purpose of the company to understand strategies adopted by businesses’

Intel: Building Blocks Inside Out

The Intel Corporation (www.intel.com) was founded in 1968 to build semiconductor memory products. It introduced the world’s first microprocessor in 1971. Microprocessors, also referred to as central processing units (CPUs), are often described as the “brain” of a computer. Today, Intel supplies the building blocks for the computing and communications industries worldwide. These building blocks include chips, boards, systems, and software, and they are used in computers, servers, and networking/communications products.

Most of Intel’s customers fall into two separate groups: the original equipment manufacturers (OEMs) and the PC and network communications products users. The OEMs manufacture computer systems, cellular handsets and handheld computing devices, telecommunications and networking communications equipment, and peripherals. The PC and network communications products users include individuals, large and small businesses, and service providers, who buy Intel’s PC enhancements, networking products, and business communications products through reseller, retail, e-business, and OEM channels. Intel is an increasingly global company. Only 35 percent of its revenues are from North America, whereas Asia and Europe comprise 31 per cent and 25 per cent, respectively. Revenues for 2015 amounted to $55.4 billion (intel.com).

Intel has shown phenomenal growth as a company. Much of Intel’s success can be attributed to innovation within its marketing department. This innovation was required to overcome several obstacles. The main challenge Intel faced was trying to sell an ingredient brand, which is a component of a larger product. Thus, there is difficulty in reaching consumers who will never see your product and might not even know what it does or why it is there.

Intel began marketing research in the 1980s because it was having difficulty with its customers not upgrading from the 286 to 386 microprocessor. Marketing research showed that this was due to a lack of customer awareness, and Intel set out to change that. It conducted a small but effective advertising campaign. In fact, it realized that it had inadvertently created a brand of Intel in the process. Because of the success of this small campaign, Intel began to realize the importance of marketing and marketing research and started to direct more effort and money on these areas. Marketing research revealed that in order to be effective in its overall marketing campaign, Intel would have to reach the consumers and convince them that what was inside the computer was as important as what was on the outside. This became the key element of the “Intel Inside” campaign conducted during the early 1990s. This slogan helped Intel put a name with its products, and it helped it encompass several of its products under one title.

Furthermore, marketing research showed that it would be most effective for Intel to cross- market with its technology partners. This would help consumers understand the products that Intel helped develop. The company did this by including the “Intel Inside” logo in its partners’ ads. It also helped fund these advertisements. A problem with including its slogan in others’ ads is that Intel did not want to intrude on the commercials. Intel decided to help make the small logo sink in by accompanying it with a jingle every time it was

displayed. This jingle has become extremely recognizable and synonymous with Intel’s slogan. All of this helped Intel realizes its goal of increasing consumer awareness. Longitudinal measurement of advertising effectiveness via marketing research revealed that the “Intel Inside” campaign was very effective.

Intel’s next idea was to create a name for its microprocessor. This would help the company to avoid using the numbering scheme, which was not patentable, and to find a name that consumers could identify their processors with. After extensive marketing research, Intel chose the name “Pentium,” which was found to generate positive reactions with its consumers. Between 1990 and 1993, Intel invested $500 million in advertising to build its brand equity. By 1993, 80 percent of people in the United States recognized Intel and 75 percent had positive feelings about the brand. Most important, 50 percent of consumers looked for the brand when they were shopping. By 1994, Intel had captured 95 percent of the microprocessor market, due in large part to its marketing efforts.

Intel’s market share for microprocessors slipped to about 80 percent in 2005 as a result of increased competition from its main competitor AMD. On December 30, 2005, Intel announced a major overhaul of its corporate and product branding, a move designed to symbolize the chipmaker’s transformation into a supplier for products beyond personal computers. The changes included a new version of the company’s blue logo—without the lowered “e” that had long been a part of Intel’s branding—along with a new tagline, “Leap ahead.” In 2009 to better align major product groups around the core competencies of Intel architecture and manufacturing operations, Intel reorganized itself into nine operating segments. The history of innovation has continued. In 2012, Intel introduced the IntelR Xeon PhiTM Coprocessor, marking a new era in high-performance computing. The increased competition causes Intel’s marketing research efforts to become more important than ever as it attempts to preserve its dominant place in the market. Intel has been very successful because of its focus on technology, marketing, and marketing research. Intel still faces future challenges, including increased competition, the opening of new markets, and the development of new products. Intel will continue to rely on marketing research to meet these challenges.

Conclusion Marketing research has played a critical role in Intel’s phenomenal growth. Marketing research was instrumental in developing the Intel brand, designing the “Intel Inside” campaign, and crafting the new logo with the “Leap ahead” tag line. Continued reliance on marketing research will enable Intel to enhance its image as a preeminent building block supplier inside out.

Questions

1. Discuss the role of marketing research in helping Intel devise the “Intel Inside” and “Leap ahead” campaigns. Relate this to the marketing research process.
2. Intel would like to increase the preference for Intel chips among PC users in the individual user as well as business user segments. Define the management decision problem.
3. Briefly explain the relationship between management decision problem and marketing research problem. Define an appropriate marketing research problem corresponding to the management decision problem you identified in question 2. Also identify 4 relevant research objectives.
4. What is “secondary data”? Discuss the role of the Internet in obtaining secondary data. Give 2 URL’s for useful information sites and explain in 2 sentences how each site could help Intel.
5. Define the target market in operational terms – 3 target markets for the qualitative research and two for the quantitative research.
6. Discuss the role of qualitative research in understanding how businesses select PC and network communications products. Which qualitative research techniques could be used and why?
7. Explain the meaning of a “survey”. If a survey is to be conducted to determine businesses’ selection criteria for choosing PC and network communications products, which one survey method would you recommend and why? Describe 2 ethical issues that Intel would need to address when conducting the survey.