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IBM launches OEM branding effort

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New York--IBM Corp. kicks off its first co-op marketing effort Thursday, touting its original equipment manufacturer (OEM) status where its technologies are used in other companies' products. The IBM brand name and blue-and-white-striped logo will be emblazoned on products in the shape of a peeled-back flag that reads "IBM Technology." The IBM OEM technologies include: a power PC chip used in video gaming systems; network processors used in communications gear; and a microdrive used in digital cameras. The first product to carry the IBM logo will be Nintendo of America Inc.'s GameCube gaming system that launches in Japan on Thursday. IBM is not the first high-tech company to use its brand in a co-op marketing effort. In the mid-90s, Intel Corp. put the "Intel Inside" logo on PCs and added its own distinctive jingle to computer manufacturers' TV ads-a strategy that helped make Intel one of the most instantly recognizable brands in the world. The IBM co-op effort comes amid a major slowdown in both the computer and telecommunications sectors in an attempt to gain market share. Earlier this year, IBM increased its ad budget 10% while its competitors made significant cutbacks.
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