Discussion Questions
1. What is the primary objective of IBM’s advertising? How have the objectives of its advertising changed over the years?
In one perspective the initial primary objective of IBM’s advertising is to recapture brand equity to increase its diminishing market share. Plunging from one of the market leader during 70’s and 80’s to almost a market looser in the 90’s, IBM’s rebranding aims at the value proposition in the mind of the consumers. Defeated by the rivals such as Microsoft, Dell and Oracle, IBM had to push the awake call alert to reposition itself as one of the significant player in the industry. This all been done through the ingenious and new paradigm of advertising series on which could reinstate the big blue stigma. The transformation process that could penetrate the existing market with the new products known as the product penetration strategy can be best served through the non-personal media
Gradually, over the years these objectives had been streaming with the need and orientation towards the present consumers demand and market behavior. What has been emphasis during the early stage of communicating with the consumers has to be molded with the present requirement to suit the consumer needs and wants. Series of persuasive and accurate appeals of the IBM’s advertising plus the campaign has alerted the consumers of its present business orientation and objectives. At this stage recapturing the brand equity has become marginal as the target is to increase the market share through brand retention, brand loyalty and customer relationship management (CRM).
2. Evaluate each of the campaigns described in the case and the accompanying ads shown in the Power Point file. Are the intended branding messages being communicated clearly and do the ads speak equally well to users, as well as non-users, of IBM products and services?
IBM’s advertising was handled by a large number of different agencies prior to 1993. Until the late 80’s...