INTEL Knows Best? A Major Marketing Mistake

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main contention was that it
puts its customers first, and Intel was failing to do this.
Intel's handling of this defective chip situation gives rise to many
questions. During the course of this paper I will address several of them. The
first of which is how did a company with such a stellar reputation for consumer
satisfaction fall into the trap that the customer does not know best? Secondly,
what made this chip defect more of a public issue than other defective products
manufactured and sold to the public in the past? Finally, how did Intel recover
from such a mistake? How much did it cost them and what lessons can other
companies learn from Intel's marketing blunder so that they do not make the same
mistake?

Major Findings
Intel is spearheaded by a chief executive named Andrew Grove. Grove is a
"tightly wound engineering Ph.D. who has molded the company in his image. Both
the secret of his success and the source of his current dilemma is an anxious
management ...

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had managed to achieve brand recognition. "Once
the products were branded, companies found that they could generate even higher
sales by advertising the benefits of their products. This advertising led
consumers to regard brands as having very human personality traits, with one
proving fundamental to brand longevity -- trustworthiness." Consumers
readily identified a quality, up to date computer as one with a Pentium chip and
the 'Intel Inside' logo stamped on the front. This "push" marketing strategy of
Intel totally dominated the market, thus forcing the Pentium chip to the
forefront of the computer market, all at the expense of the cheaper 486. This
"push strategy" of Intel ...

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