There are many products that are rarely purchased direct by consumers. They are usually bought as part or ingredient in other products. For example, there is Teflon (DuPont product), Pentium (Intel Corporation’s computer processor chip), Athelon (Advanced Micro Devices computer processor chip) and many others. Advertising of such products is called ‘end-product advertising‘ (also called branded ingredient advertising). This type of advertising is often undertaken by manufacturers whose branded parts or ingredients are used in producing usually other branded or unbranded consumer products. Successful end-product advertising helps create demand for the ingredient that helps in the sale of another product, such as Intel promotes its Pentium processors. The sustained existence of consumer demand for such ingredients encourages companies to use them in their consumer products.
It is not easy to build end-product demand. The manufacturer must have an ingredient that is widely recognized by manufacturers and consumers and is believed to have advantages that will improve the usefulness of the finished product. Extensive advertising is required to communicate advantages to consumers because the ingredients are often not obvious in the product. End product advertising may take national or international dimensions and can be very advantageous to companies who can successfully do it. For example, in the present scenario of computer market, different segments of consumers are interested in knowing whether the computer had Intel’s Pentium processor or the processor is from Advanced Micro Devices or some others. It is no secret that Pentium is not only well known among consumers but also has the maximum market share in the world.