IBM
Brand Equity Restoration and Advertising Evolution
Teaching Note
Case Overview
This case examines the various advertising campaigns used by IBM from 1995 to 2006, a period
during which “Big Blue” has undergone a transformation in its business strategy that has resulted
the power point file and evaluate the ads as they read and prepare the case. You might also
encourage them to visit the IBM web site and examine the various types of online marketing tools
that are used by the company, particularly in support of its advertising campaigns.
This case is very broad in scope and can be used in a variety of areas. However, it may
be best suited for use with Chapters 8 and 9 of the text, which focus on Creative Strategy
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Discussion Questions
1. What is the primary objective of IBM’s advertising? How have the objectives of its
advertising changed over the years?
The primary objective of IBM’s advertising is to start a dialog with companies that might
benefit from its various products and services. IBM is a well known company and nearly
everyone in the business community is aware of them and believes they have a general
get the company into the consideration set of these decision makers so they will accept the
sales call to learn more. The purpose of the advertising is also to ensure that key decision
makers in companies are aware of IBM and its capabilities. A further goal is to generate
leads that IBM’s sales force can follow up on to provide more information and hopefully
create a relationship. The call to action is to encourage them to make some form of contact
with IBM, either by calling for more information, or checking out IBM’s capabilities and
offerings on the Internet.
IBM” campaign. Most recently, with the “Innovation That Matters” campaign, IBM is
communicating that it customizes solutions and recommendations based on each firm’s needs
and strengths and can help firms develop new ways of doing business to give them a unique
competitive advantage.
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2. Evaluate each of the campaigns described in the case and the accompanying ads shown
in the Power Point file. Are the intended branding messages being communicated
clearly and do the ads speak equally well to users, as well as non-users, of IBM products
and services?
Students should be asked to analyze each campaign discussed in the case and evaluate the
various print ads, commercial photo boards, and out–of-home ads that are provided. They
3. What were the pros and cons of staying with the “e–business” campaign? Could it have
been updated and retained or did it lose its relevance?
The e-business campaign served IBM well as it positioned them at the forefront of the trend
in moving business processes onto the Internet, a movement that was a priority for nearly
every company during the mid to late ‘90s. Most businesses wanted to move more of their
operations to the web, but because so much was new and evolving, they needed the help of a
4. How was the “ON Demand” campaign adapted to keep the umbrella tagline, while
providing the specifics needed to communicate the “sub–business” component details?
The “ON Demand” campaign used a series of print ads, television commercials and out-of–
home ads to communicate all the different types of businesses and problems that were helped
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5. Do you think IBM’s advertising campaigns have changed too often over the past 11
years? Were the changes made because the campaigns were not working well or was it
an intentional evolution in the advertising and branding message IBM wanted to
communicate?
Over the 11 year period discussed in the case, IBM has had five major campaigns including a
sequence of changing taglines. These have included “Subtitles – Solutions for a small planet”
which ran from 1995 to 1997; the “e–business” campaign which had several sub-campaigns
and ran from 1998 to 2002; the”ON Demand” campaign which ran from 2002 to 2005; “The
Other IBM” and “Help Desk” campaigns which ran from 2005 to early 2006; and the
“Innovation That Matters – What makes you special?” campaign which began in March 2006.
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Some students may argue that IBM has changed campaigns too often, particularly over
the past few years. However, it is important to note that IBM competes in a very dynamic
and competitive industry that is constantly changing. The marketplace has undergone a
transformation. The IT consulting industry has matured and companies are seeking
relationships with partners who can provide deep industry and business process consulting
and management expertise. IBM’s corporate strategy has changed over the past decade and
continues to evolve as the company strives to maintain its competitive advantage. The
6. Is there value to business-to-business marketers such as IBM in advertising through
mass media that also reaches the general consumer market? Evaluate the media choices
used by IBM such as advertising on golf tournaments, on Sunday morning news shows,
in airports, and even on the Super Bowl. Since IBM divested its personal computer
business, should they continue to advertise to consumers, for example on the Super
Bowl?
The target audience for IBM’s advertising is clearly business executives as well as middle
managers who might be involved in making decisions regarding the choice information
technology and consulting services providers. Thus, much of the company’s advertising is
going to be targeted to media that reaches these individuals including general business
magazines such as Business Week, Forbes, Fortune, and Business 2.0 as well as newspapers
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IBM, as well as other business-to-business marketers will often advertise in mass market
media even though many people outside of their target audience will be exposed to the ads.
B-to–B marketers recognize that they may have to accept a certain amount of “waste
coverage” or overexposure whereby the media coverage is broader than the target audience,
particularly if a media vehicle does a good job of reaching a high percentage of those in the
target audience. For example, IBM advertises on televised sporting events such as
Selective advertising through mass media may be used by IBM for several other reasons
even though it reaches many consumers who are outside of their primary target audience.
Some studies have shown that purchasing advertising time and space in consumer mass
media may be more cost efficient, despite the wasted coverage, than trying to reach the target
audience through a variety of business media. Ads in these media help increase awareness
for IBM and editorially cast them in a favorable light because of a favorable association with
the editorial content of a publication or television program. Advertising to viewers in a more
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7. How has the target audience for IBM’s products and services evolved over time? How
have the types of business problems that IBM addresses in their advertising changed?
Prior to the mid–1990’s, IBM was viewed almost exclusively as a technology company,
selling mainframes, servers, and software to IT professionals. Since that time, IBM has
gradually expanded it products and services to focus more and more on solving a range of
8. What were the advantages and disadvantages of using a creative tactic such as the
metaphorical King Arthur’s Round Table commercial and print ads that were part of
“The Other IBM” campaign?
The King Arthur ads were a departure from previous IBM ads as well as from advertising
done by other technology companies. This was intentional as the ads grabbed the attention of
viewers and/or readers which increased the likelihood that they would be noticed. However,
they also were a clever way to deliver the message as the ads portray age-old business
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likely to be appreciated? Is there a limit to how different a B–to-B ad can look and feel? Do
the characters have to be appealing to be effective?
9. What is the value of using testimonials and case studies across a variety of businesses
and industries integrated marketing communications campaigns?
Throughout the different campaigns, IBM has used testimonials and case studies across a
variety of business sizes and industries to illustrate how its products and services have helped
companies. These have included the nuns who were excited about IBM’s new technology in
the “Solutions for a small planet” campaign; the surprisingly wide array of organizations that
10. Does IBM’s advertising provide enough information to decision makers and does it
matter that no references to the prices of its products and/or services are made in the
ads ?
One key piece of information that is missing from the IBM ads is pricing. From a practical
standpoint, it would be nearly impossible to quote prices, given IBM’s wide variety of
products and services. IBM could, however, communicate that the price for their services is
“less than you’d think”, or “surprisingly affordable.” Instead, any reference at all to pricing
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11. Evaluate the decision by IBM to consolidate all of its worldwide advertising with the
Ogilvy & Mather agency. What are the pros and cons of using one agency to handle all
of its advertising?
As noted in the case, IBM made a major decision in 1994 to dismiss more than 40 agencies
around the world and consolidate all of its advertising with Ogilvy & Mather Worldwide. A
number of factors were behind this decision. One of the major reasons given by IBM for
The risk of the consolidation decision is that one centralized agency may not be able to
develop as effective advertising in many foreign markets as a local agency. Local agencies
often have a better understanding of the marketing and advertising environment in their
country or region and thus may be able to develop more effective advertising than a large
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multinational agency. Using a single agency also means that a marketer has no backup agency
to turn to if there are problems such as an ineffective ad campaign. Companies who
consolidate also face the problem of selling the idea to regional offices and local country