Focus On:  The Computer Industry
Hacking Into the Computer Jungle

     The computer industry keeps the business world on its toes. Exploding technological advancements have made it difficult to imagine the world without a computer system. As new innovations become available, companies have adapted their operations to take advantage of those capabilities. For some businesses, it has meant purchasing a computer to keep stored data or creating a website that explains a company's products and services.
     With more business capabilities, the computer industry has mushroomed into several sectors that continue to push it forward into the millennium.

Computer-Related Promotions
     In the computer industry, today's technology may be yesterday's news. Similarly, computer-based businesses face an urgency to create unique promotions that symbolize technological innovations. Whether it is online services, computer consulting or hardware and software development, computer-related companies are using promotional products for their marketing campaigns.
     Many large computer manufacturers are using television advertising as a method of promoting themselves, and Santa Clara, Calif.-based Intel Corp. is no exception. Intel manufactures processors that act as the brains of a computer. Jeanne Forbis, Media Relations manager for Intel's Tempe, Ariz., location, says the public had never heard of Intel five years ago. However, because of its "Intel Inside" campaign, computer consumers are now well aware of the company's Pentium(r) III processor.
     Forbis explains that the manufacture of computer chips has to be done in a "clean room," because even a speck of dust can destroy the circuitry that goes into the chip. The employees working in the clean room wear white Gore-Tex "bunny" suits. For the advertising campaign, however, Intel added color to its advertising by featuring people wearing bunny suits in bright colors such as fuchsia and gold. Ultimately, the television advertising transcended over to promotional products in a unique way.
     "Our most popular item is the bunny people characters, which are part of advertising campaign," says Forbis. "Intel was playing off the Ty Co. Beanie Baby craze, so the bunny people promotional items were little 6-inch-tall stuffed characters with an Intel Inside logoed tag. The characters now are available in keychains, 3-foot dolls and necklaces. Our advertising has stepped off of the television screen and into promotional items."
     Forbis says Intel is unique in that it has its own products store called the Uniquely Intel Shop. Employees have a wide range of products to choose from including apparel, accessories, novelty items and office accessories, all imprinted with the Intel logo. As a bonus to employees, prices are slashed nearly 30 percent on all the items. Orders can be taken online by accessing the company's website.
     "For nearly two years, the Uniquely Intel Shop has offered jewelry made out of our microprocessors," says Forbis. "Intel has taken the actual product that we sell and turned it into jewelry."
     While Intel relies heavily on its television advertising campaigns, the company also has a more personal way of reaching its audience. Forbis explains that Intel promotes its products and services during customer visits and by attending trade shows. In both circumstances, promotional products such as the bunny people are distributed to visitors.
     Intel is also heavily involved in local school systems. Intel representatives travel to local schools where they discuss careers in math, science, engineering and technology. School children are given school supplies with the company logo on them.
     Another computer company that is experiencing success with its promotional products is Tempe, Ariz.-based Computer Direct Marketer Insight. The electronic commerce company customizes computer systems for its clients with name brand computer products. What makes Insight unique, however, is its concierge service.
     Susan Heywood, Public Relations manager, says Insight employees can purchase logoed merchandise through the concierge service. Oftentimes, employees will distribute logoed merchandise to clients as a "thank you" for their business.
     "A couple of items that are unique are imprinted wine bottles and customized baskets for clients," says Heywood. "If a client enjoys golf, we can create a basket with Insight-logoed golf towels, balls and tees. Other items include employee gift baskets that are given out when an employee has a baby."
     The annual Insight.Com Bowl game held at the University of Arizona in Tucson is a major promotional venue for the company.
     "Insight sponsors the Insight.Com Bowl, which includes a whole range of logoed products with the bowl logo," Heywood says. "Both players and coaches are given logoed merchandise such as watches and apparel. With the bowl game sponsorship, it promotes our website and builds brand loyalty among the teams, fans and national viewing audience."
     Heywood says there is a trend developing with computer-related companies sponsoring sporting events. In many cases, the demographics are similar to what computer companies are looking for in their customers. Sponsoring a national televised event, in a sport that is viewed by both men and women, is a promotional opportunity not to be overlooked.
     "The Insight.Com Bowl is called that because we want to build awareness of our electronic commerce site," explains Heywood. "We didn't call it the Insight Bowl because we want people to type in Insight.com, go to the site and see what kind of personalized shopping experience we can offer them when they get there. The company realizes a large number of people are not computer literate buyers of products that we sell, but we want to raise the general awareness because many times people will see something at home and it will transfer into their business life."
     A growing profession in the computer industry is computer consulting firms, which provide the brains behind a company's computer network. For example, a university may contact a consultant to set up a network linking the student body to the library. Generally, consultants are contracted out to companies of all sizes to provide computer support when needed.
     A computer consulting company that has found both business and promotional success is Glendale, Ariz.-based RB Balch & Associates, Inc. Rochelle Balch, president and CEO, says the main staple of her business is contract programming. There are 28 staff members that strictly do software development. There also are six staff members that comprise the small office support team who are involved with marketing companies and maintaining the client's computers.
     In terms of promotional products, Balch says she spends nearly $20,000 per year on promotional items. While it may seem like a large sum of money, Balch says the expense has paid off in terms of generating clients and brand awareness. The success is due in part to centering the company's promotional products on a theme.
     "The promotional products that our company uses feature a desktop theme," says Balch. "All the items are geared around a logoed pencil cup. If the logoed pencil cup is on the desk, it can easily be filled with pencils, markers, pens, rulers, staple removers and other desktop items. To distribute these items, our consultants and technicians bring some of the company's promotional products to the client site when servicing their computers."
     Balch says when one of the company's consultants starts at a client site, the consultant takes with them logoed RB Balch products to set up at their desk. This allows everyone at the site to know the consultant and the company. She says the goal is to create brand awareness, so when anyone who has seen the logo needs a computer consultant, RB Balch will be fresh in their mind.
     "Our company tries to do unique items that strictly fit into the pencil cup," says Balch. "I have been receiving many requests for mugs, but have avoided them because everybody does mugs. I may include a mug if there is one unique enough to match our desktop collection."
     The key to RB Balch's promotional success lies with its distributor. Balch says when she first started her computer consulting business, she met Alene Geed, who also was in the early stages of her business venture selling promotional products. Balch expressed an interest in trying promotional products but had a limited budget. Geed worked closely with Balch creating unique promotions with the money she was willing to spend.
     To this day, Geed's Tempe, Ariz.-based Spartan Promotional is Balch's primary distributor. The partnership between Balch and her distributor has created items such as puzzles with movable pieces that form the RB Balch logo as well as a beanbag baby known as the Balch Baby.
     Another effective method Balch uses to reach the public is through community service. She volunteers in schools, conducts business seminars and is heavily involved in civic organizations. All of these events are opportunities to distribute logoed items to promote her company's services.
     "I am a member of the National Association of Women Business Owners, and we often give away items for raffles," says Balch. "As a giveaway, we created a Balch Basket filled with logoed items wrapped in cellophane with a card offering three hours of free consulting. The basket not only was a unique method of marketing our consulting service, but we did it in the form of a gift basket using promotional products."

Front-Line Advice
     As with any industry, finding a way to market promotional products is a challenge for both the distributor and client. A marketing strategy that garners logo recognition and future business must be developed, and a product that is unique enough to receive a response must be identified.
     Heywood says the product needs to be unique because the item has to remain with a prospect. However, an unusual product will not guarantee the client's message will maintain long-term exposure. Each individual company should be thoroughly researched to market a product that fits its target audience.
     "Many people in our business are very conscience of return on investment and what that means in terms of an individual marketing campaign," says Heywood. "In order to prove the worth, the product needs to show a return."
     Forbis agrees and suggests concentrating on eye-catching and memorable products at a reasonable cost. She says Intel has done product introductions using chocolate bars shaped as one of its products. Computer companies have extreme needs, especially depending on whether the product is being used for a small group of clients or at a trade show with several thousand participants.
     "With many start-up companies and major corporations in the computer industry, there is a lot of potential for business," says Forbis. "Name recognition is very important in this industry because the competition is so fierce. For example, no one had heard of Intel five years ago; however, after the company's Intel Inside campaign, consumers became aware of what was in their personal computers."
     She says the company is always looking for items that fit the latest products they are introducing. When the bunny people were introduced, employees bought the first run of them. To find what products would work best with other companies, Forbis advises attending computer-related trade shows to see what the hot giveaways are.
     For many companies such as RB Balch that rely on promotional products to reach potential clients they cannot meet in person, the product focus becomes more important. Balch says that many of their big competitors market their promotional items strictly to senior management. The items are high-end such as golf clubs, pen sets and apparel. While RB Balch's products are not overly expensive, they are quality products that can be left with the receptionist of a potential client.
     Balch's marketing plan has proven successful in gaining logo recognition and clients. In fact, she says, every six weeks new promotional products are sent out to potential clients to keep the company's logo in front of them. Whether it is logoed rulers, luggage tags or tip cards about programming, Balch remains consistent with her promotional advertising.
     "My advice is meet your company's needs based on quality rather than focusing on a price point," Balch says. "There also should be an expectation that distributors will help market a theme once the company develops one."
     Clearly the computer industry is flourishing. It is estimated that this year, 90 percent of jobs will require computer knowledge. Whether it involves operating a piece of machinery, or data entry, Americans spend a lot of time on their computers.
     The future of the industry, simply because it is going nowhere but forward, will continue to open doors for the types of products that will be used. The sky is the limit for what creative ventures may develop.