IBM Case Study1.) IBM advertises itself as a company that provides business services and solutions. It was once positioned as a computer hardware company, but as more and more companies like HP and Dell began to appear they were forced to move away from this image. I recently had the pleasure of speaking with an IBM salesman, who said that they rely heavily on the value of their products, rather than competing on price. IBM positions itself as a company that offers better, but slightly more expensive, products than its competitors. IBM doesn't want to be seen as just another computer company, but as a company that can help you run your business and make your life easier. 2.) Before 1993, IBM's advertising was handled by a large number of different agencies. Until the late 1980s this was not a problem because IBM was a dominant player in the market. However this eventually became a problem as IBM was starting to lose its identity by presenting itself in a wide variety of ways across the country. In 1993 IBM moved all of its advertising to Oglivy & Mather, whose goal was to "keep the IBM brand fresh, interesting and current". In 1995 they introduced “Solutions for a Small Planet”. These ads were intended to create a unified IBM brand image around the world, connecting everyone on this "little planet". This campaign was very successful and was a huge step forward in restoring IBM's image. In the late 1990s, the "E-Business" campaign was introduced. It was about connecting with people who were starting to use the Internet more and more for work and personal use. This was a great move since using the Internet in some way is now part of almost everyone's daily activities. This campaign continues... middle of paper...) IBM doesn't compete on price, but on quality. IBM uses their advertisements to create a very strong identity of being the best. IBM's customers are more interested in benefits rather than price, so IBM does not focus on price in its ads. IBM's campaigns showed customers how they will benefit and created incentives for customers to find out how IBM can specifically help them. IBM's advertisements do enough to entice customers to learn more about the products and services, and then they end up purchasing them. 11.) This was a great move by IBM. On the one hand it might prove very difficult, and perhaps too much to handle, for one company to handle so much work for one client, but Oglivy and Mather have done a great job. This created a much stronger and unified image of IBM around the world. It also made transitions from one campaign to another much easier.
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