Unsterilizing the silicon: PC marketers have commoditized their business

Brandweek, Jan 12, 1998 by Tobi Elkin

"The lifetime value of the customer is more important now," said Henry Chiarelli, senior vp of marketing and merchandising at Computer City.

When Microsoft chairman Bill Gates posted his love note to the PC at last fall's Comdex, the computer industry's annual mega confab, he didn't mention the role that a "brand" can play in getting consumers to love their PCs. But that is hardly surprising considering the arguable monopoly that Gates has created. Does Microsoft need brand equity to survive, or is ubiquity enough?

For the companies in the trenches, each with access to virtually the same technology and brain reserves, achieving a bond with customers will almost surely come from figuring out how best to relate the consumer need and desire to use their PC as the most versatile tool in their lives.

It's a tall order in a volatile, constantly shifting landscape of razor-thin margins and swiftly changing technology. But the nature of branding is to transcend those forces.

"You want the brand to become a resource for the community, for everyone, to draw people into the brand," said Dataquest analyst Miller.

"It's no longer about computing," said Gateway's Taylor. "It's about communicating."