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ADVERTISING AND INTERNET MARKETING FOR IBM IBM case: Brand Equity Restoration and Advertising Evolution Introduction During the 1970s and ‹80s, IBM was one of the most successful companies in the world. The company had experienced strong growth in both revenue and profits and had a virtual stranglehold on the market for mainframe computers. In fact the company was often referred to as …œBig Blue, a nickname derived from its massive blue mainframe computers. For four consecutive years in the 1980s, IBM held the top spot in Fortune magazinežs annual list of the most admired companies in the United States. However, by 1993 the quintessential …œBlue Chip company had reached its nadir. Over the three previous years, IBM had lost a total of $15 billion and its stock price was at an 18-year low. The brand had fallen below number 250 in Interbrandžs annual survey of the most valued brands with a brand value, estimated at a negative $50 million dollars. The explosive growth of personal computer networks threatened IBMžs lucrative mainframe and minicomputer business and the company was struggling to turn the situation around. .........Continued............... Discussion Questions 1. What is the primary objective of IBMžs advertising? How have the objectives of its advertising changed over the years? 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? 3. What were the pros and cons of staying with the …œe-business campaign? Could it have been updated and retained or did it lose it relevance? 4. How was the …œON Demand campaign adapted to keep the umbrella tagline while providing the specifics needed to communicate the …œsub-business component details? 5. Do you think IBMžs advertising campaigns changed too often over the past 11 years? Were the changes made because the campaigns were not working well or was it an intentional evolution in the advertising and branding message IBM wanted to communicate? 6. Is there value to business-to-business marketers such as IBM in advertising through mass media that also reach the general consumer market? Evaluate the media choices used by IBM such as advertising on golf tournaments, on Sunday morning news shows, in airports, and even on the Super Bowl. Since IBM divested its personnel computer business, should they continue to advertise in mass media, such as on the Super Bowl? 7. How has the target audience for IBMžs products and services evolved over time? How have the type of business problems that IBM addresses in their advertising changed? 8. What were the advantages and disadvantages of using a creative tactic such as the metaphorical King Arthuržs Round Table commercial and print ads that were part of …œThe Other IBM campaign? 9. What is the value of using testimonials or mini-case studies across a variety of business and industries in IBMžs integrated marketing communications campaigns? 10. Does IBMžs advertising provide enough information to decision makers and does it matter that no reference to the prices of its products and/or services are made in the ads? 11. Evaluate the decision by IBM to consolidate all of its worldwide advertising with the Ogilvy & Mather agency. What are the pros and cons of using one agency to handle all of its advertising? NOTE: This CASE is NOT our property; we are only suggesting solution of this CASE.

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