Why does IBM advertise

Discussion in 'Community Discussion' started by callmemike20, Oct 14, 2010.

  1. callmemike20 macrumors 6502a

    callmemike20

    Joined:
    Aug 21, 2007
    Location:
    USA
    #1
    Can anyone explain to me why IBM has commercials on TV? They don't really offer many consumer products, and their ads are always centered around their innovation. It seems like they are appealing more to the future of technology than anything else. An example would be their RFID commercial (the one in the store with the security guard).

    What I'm saying is that it seems like a poor distribution of resources. Why do they advertise this stuff on TV. The only reason I can think of is to attract stockholders. Everything else is pointless. If a business is really into the latest technology (such as RFID stuff), they will most likely know about it through inside information or specialized publications (such as the WSJ). Why does any consumer care about these new innovations from IBM when there is really nothing they can do with it unless another company picks it up?

    I don't know if I'm making myself clear, but this form of advertising just confuses me. Unless all innovative American businesses are just sitting in the break room watching TV all day, then what is the purpose?
     
  2. Mac'nCheese macrumors 68030

    Mac'nCheese

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    Feb 9, 2010
    #2
    You answered your own question. Stock, stock, stock. The value of a companies stock is everything. I can't tell you how many commercials I've seen on CNBC for companies that don't seem to actually sell anything. Except their own company's stock.
     
  3. callmemike20 thread starter macrumors 6502a

    callmemike20

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    #3
    Stations such as CNBC and Bloomberg I understand. However, when I'm watching House, commercials are the most annoying aspect of the hour. Most people don't even think about buying stock on a daily basis while watching tv. I'm graduating in the spring with a degree in finance, so I understand the investment attraction part, but I doubt many people outside of the investment world see this.
     
  4. chrmjenkins macrumors 603

    chrmjenkins

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    #4
    Many do it to attract talent. This is common among the largest aerospace companies in the country.
     
  5. r1ch4rd macrumors 6502a

    r1ch4rd

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    #5
    As the 80s guy from Futurama would say... "It grows the brand".
     
  6. Rodimus Prime macrumors G4

    Rodimus Prime

    Joined:
    Oct 9, 2006
    #6
    that and remember that they do have business that do work with them and they have to get those guys attention.
     
  7. maflynn Moderator

    maflynn

    Staff Member

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    #7
    They may not have consumer products but people who buy their products for the enterprise watch TV, so they'll see the ads won't they?
     
  8. callmemike20 thread starter macrumors 6502a

    callmemike20

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    #8
    Yea, but I think that should be done through research. If a company makes a decision based on a commercial, they shouldn't be in business.
     
  9. r1ch4rd macrumors 6502a

    r1ch4rd

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    #9
    The idea isn't that you see one advert and then rush out and buy a load of servers. IBM work hard to make sure that their brand is everywhere. These adverts are just one of the many places you will notice the IBM logo. This allows them to become a household name, despite not making very many household products!

    Now imagine there are two identical products, one made by IBM and one by "Steve's Friendly Computer Company", you would buy from IBM because the brand is so well known. You've even seen that many big sporting events run on IBM hardware. If it works for Wimbledon it will probably work for you. You've never heard of the other company, why take the risk? IBM can use this to their advantage and even charge a premium.

    There is a fairly well known saying "Nobody ever got fired for buying from IBM".
     
  10. maflynn Moderator

    maflynn

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    #10
    And making sure that executives who do that research keep IBM in mind, they advertise. The same thing goes with consumer products. Everyone is expected to do their research before spending money, but yet we see advertisements for cars, phones, etc. This is really no different that, other then the product is geared towards the enterprise as opposed to the consumer
     
  11. pooryou macrumors 65816

    Joined:
    Sep 28, 2007
    #11
    For every person who fit that demographic, how many dollars do you think this form of advertising would cost? That would have to be the most inefficient marketing plan ever...!
     
  12. FX120 macrumors 65816

    FX120

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    May 18, 2007
    #12
    Probably for the same reason Dow chemical does?
     

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