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July 30, 2007

Technology Companies using Branding to Move Closer to Consumers

It's a well-known economic fact that the higher you "move up the food chain" to the consumer, the higher the margins.

Technology companies are well aware of this Law of Proximity, a term I just coined.

However, technology companies execute against the Law of Proximity in different ways.

  • Intel.gif In the case of Intel, they branded a component of a computer and established a brand preference for it with its Intel Inside® campaign. Even engineers with Master's degrees in electrical engineering, who should know better, prefer Intel over Advanced Micro Devices as the chip in their personal computer, while both are capable of the same functionality and performance.

  • freeagent.gif Seagate is moving up the food chain with its introduction of a new product called FreeAgent&trade. Although this product has functionality such as duplicating content and sending it via email or to your iPod, it essentially is a mini-server positioned for the B2C market.

  • Cisco.gif Cisco has largely bought its way up the way up the food chain by purchasing B2C companies such as Linkysys. However, John Chambers, CEO of Cisco, has just acknowledged that although Linksys is a better-known product in the US, over time, it will be dropping this name in favor of the Cisco master brand. In effect, Cisco will evolve from a B2B brand to a combination B2B and B2C brand.

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Posted by William Lozito at July 30, 2007 1:32 PM
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1 Comment

We (Cisco) posted to the question of Linksys and Cisco branding on our corporate blog today:

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