In the past several years, AMD has been steadily losing market share ever since Intel released its highly successful processors, Intel Core Duo 2. Now, AMD will be trying be releasing its new line of processors "Vision", the focus not on surpassing the performance of Intel's but on personalizing the product to suit the customer's lifestyle.
Topics covered: 4.2 Market Planning, 4.3 Product, 4.5 Promotion 1.5 External Environment
Microcommentary: 4.5 Promotion
AMD probably has already done a lot of market research to understand the current needs of consumers and designed the "Vision" processors to fulfill exactly that need. However, the most important aspect in the birth stage of the product life cycle is promotion. AMD needs to do a lot of informtional promotion to let consumers realize the advantage that AMD's vision has over Intel's processors. The worst thing that can happen is for consumers to assume that AMD's new products will be inferior as well based on past misconceptions. AMD may have to do some under-the-line promotion to give consumers incentive to be willing to purchase their new products. If AMD can get across the message that their processors are cheaper and more cost-effective, it would be an appealing factor in the current economic climate. Of course, all of this must be done with consideration of the financial budget and also the current inventory.
