R&D Functional-Level Strategies: Intel
You are a mid-level marketing manager working in the Mobile Microprocessor Business Group of Intel. Intel explains that its marketing and communications team members “maintain an intimate understanding of the markets you serve to help generate ideas for products and services that customers need and want.”
Understanding your role in the company and based on your reading of the case “Intel Corporation: 1968-2013,” select the functional-level strategies you think will do the most to increase the efficiency, quality, innovation, and customer responsiveness of Intel.
Customer Defection
You’re currently assigned to the mobile products team at Intel, supporting their marketing efforts. You’ve been watching sales data come in for a specific product line, the Particles chips. Intel invented these chips in 2010 and has held the market ever since. Microprocessors have become increasingly revolutionized for the rapid rise of smart phones.
A new competitor has entered the market to compete against Particles, and you’ve noticed that the customer defection rate had a sharp increase last month. The percentage of repeat customers buying Particles from us declined suddenly. You know that the cost of acquiring a new customer is higher and less efficient than continuing to sell to an existing customer. What would you do?
Choose one:
(a) Conduct a quick market research study to learn directly from customers if they’re buying Mobile Strategies Enterprise’s (MSE) product Chipz instead of Particles and why.
(b) Pull together a cross-discipline team to discuss the internal perspectives on the Particles. The team should include R&D, sales, and production.
Answer: I would go with first option where I need to get in touch with customers first in order to understand why the sales is declining and the most important fact that repeat customers are very less. An enquiry into the customers concern and market reality will help in better understanding of underlying reason behind decrease in sales. Once the reasons are clear then only, we can have a internal meeting to further access the reasons of sales decline and take up with the team as how to resolve the issues which are causing lower sales of my product. In general, without knowing the reason there is no meaning of pulling up the team and start analyzing the reason. For example, if the reason was with the product performance and it was known after meeting customers then I can have a meeting with R&D team, if the reason is unavailability or high price with comparison to other similar product then I would call a meeting with sales team. Therefore, without knowing a reason meeting with internal team won’t help, so instead of meeting internally we must research in market and find out the actual reason behind sales decline.
R&D Functional-Level Strategies: Intel You are a mid-level marketing manager working in the Mobile Microprocessor Business...
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