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Fairchild Semiconductor's Marketing Mix (Product, Price, Promotion, Place)

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A major contributor in the semiconductor industry is a company called Fairchild Semiconductor. Fairchild designs, builds, test, and packages microchips for many well-known brands of electronic manufacturers. Fairchild employs numerous engineers that come up with new product designs. The engineers then implement their ideas into existing products and the product line then builds the microchip. The chips are designed in what is called a wafer. One wafer can hold hundreds to thousands of chips. The wafers are tested at one facility then sent to another site to be cut into single chips then have a plastic protective coating applied. The chips are then packaged and sent to whichever customer ordered them.

The semiconductor business is very competitive. The pricing depends solely on new product designs and what the price of the competitors is. One wafer can cost as low as 500 dollars and up to thousands depending on the design it holds and what the current market is.

Communications of information is what Fairchild Semiconductor is all about. Most people probably have not seen billboards or hear radio ads about Fairchild but if one looked in many business and electronic magazines, Fairchild just may be there. Fairchild is not known as well as Motorola or Sony but their parts are in many of their products. A large portion of Fairchild’s customers is long term relationship based.

Companies can learn from this example to foster Innovation to create a competitive price advantage and to gain market share.

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YouSigma. (2008). “Fairchild Semiconductor's Marketing Mix (Product, Price, Promotion, Place)." From http://www.yousigma.com.

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