Intel To Unveil 'Inside 2007' Program, Google Marketing Pact
According to company documents viewed by CRN, the Intel Inside 2007 program, which goes into effect April 29, represents a "radical change" in the way the Santa Clara, Calif., chip giant goes to market with partners: online.
"Radical changes mean new ways to reach customers with less of your time and money," the Intel document said. "Forget about what you knew about Track 2. This is the start of something new." The program is slated to be discussed at the Intel Solutions Summit next week in San Diego.
Intel Inside 2007 gives partners more flexibility in how they spend their marketing development funds (MDFs). For example, Intel will cover all of Track 2 partners' marketing costs and, for the first time, MDFs can be used for online marketing or merchandise from Intel's new marketing stores.
In addition, partners will be able to use MDFs to promote general initiatives such as VPro or Viiv technology, whereas the old program restricted the focus to product ads, according to solution providers.
The online marketing pact with Google is a pillar of the new program, the Intel document said. The deal, to be discussed at Intel Solutions Summit, will give Intel partners ready-to-use customizable campaigns, free tracking and dedicated support.
Some partners have participated in a pilot test of Google AdWords. The Intel document said that according to the terms of the agreement, partners that use key Intel AdWords or Intel content in their Web-based marketing are eligible for a reimbursement from Intel.
Intel also has created marketing stores that give partners access to Intel-created media, merchandise and services, as well as a series of new Intel-branded templates that partners can use with their logos.
For Track 2 partners, or those who qualify for $20,000 or less per year in MDFs, 10 percent of MDFs will be allocated to online marketing and 90 percent to merchandise. For Track 2+ partners, or those who generate more than $20,000 in MDFs annually or are Premier Partners, 10 percent will be allocated to online marketing, 55 percent to merchandise and 35 percent to co-marketing. Those partners also get additional co-marketing opportunities, such as webinars and seminars.
"Every April, Intel makes changes, but this is a radical change," said one Intel partner, who requested anonymity. "This Intel Inside [2007] is a big thing. ... It was a sacred cow Intel wouldn't change for a long time because of the past history of abuse."
Another Intel partner estimated that the chip maker offers more than $35 million in MDFs to the North American channel each year, based on annual sales of $1.2 billion in processors in North America. Partners earn 2 percent to 3 percent in MDFs for each CPU purchase, he said.
"These are new usage models for Intel Inside dollars. A lot of the marketing dollars that accumulate in the channel are not being used today," said the partner, who asked not to be named. "The new program gives greater latitude to Intel partners to spend on direct mail, Google AdWords, company-branded merchandise. For us, it significantly increases our marketing budget."