Intel Corp. has expanded its Intel Inside marketing program by increasing the media options that its network of 27,000 systems builders and resellers can use to attract business.
The strategy is geared toward channel members globally, including China,India, and Russia, where emerging markets have become a substantial growth driver for Intel.
"The new media are specifically geared toward attracting audiences where print advertising is not the common mode for channel members to connect with their customers," said Carol Barrett, director of the Intel Inside program at Intel, Santa Clara, Calif. "Channel members earn a percentage of co-op funds based on the types of products they purchase, and those funds supplement their advertising efforts."
For example, if a processor is priced at $300 and the market development fund accrual rate is 10%, then $30 of every processor purchase is deposited in a co-op fund to help offset the channel partner's advertising costs.
Billboard, cinema, direct mail, radio, television, and transportation advertising have been added to the approved-media list. Prior to the rollout, members had access to cooperative marketing dollars earned from purchases exclusively attributed to print or Web ads.
Barrett said expanding the Intel Inside campaign could double the program's membership by year's end. The channel, a part of the campaign since its inception 10 years ago, is expected to contribute to much of that growth.
"Channel sales have been a key focus for Intel in the past year," Barrett said. "The Intel Inside program evolved after members requested additional marketing support."
Combined, Intel and its program members spent approximately $1.5 billion to advertise Intel products in 2001. In the past 10 years, they have spent more than $7 billion to advertise Intel's computer-based products.