Marketing Mix Of Dell Essay

Dell's business strategy combines its direct customer model with a highly efficient manufacturing and supply chain management organization and an emphasis on standards-based technologies. This strategy enables Dell to provide customers with superior value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use.

Dell. Dell’s products—computers, servers and printers—are commodities. Dell tends not to develop the technologies underlying these products. Instead, it purchases the components from firms that develop the technologies (semiconductors and computer software). Dell’s direct-to-customer marketing strategy is not unique, but the extent to which Dell performs this strategy better than anyone else in the industry gives it a competitive advantage. Its size, purchasing power, quality control, and efficiency permit it to operate as a low-cost provider.

In serving its customers Dell has succeeded more than its rivals. It can be seen from the table 3 that ranks PC manufactures based on Consumer Report where Dell won the 1st rank place.

Having the low cost advantage Dell is able to expand the gap between cost and customer's willingness to pay. Therefore, they are able to satisfy their end-consumers, who are educated want product stability, high-end performance and low lifetime costs. They have served the US market and started to expand their market worldwide; in addition, they have

Home and corporate users dominate the five categories of buyers on PC consumption. There are large amounts of these buyers in the market that are price sensitive and have low switching costs on their products which raises overall buyers’ power. However, in the case of Dell, many customers became frustrated with Dell. For example, Dell’s call centers received manyf discouraged clients’ comments. One reason: many service representatives were trained to solve only one category of a problem, so almost 45% of calls had to be transferred from the agent who answered the call to someone with the knowledge needed to help the customer. Richard L. Hunter, who was brought in to improve Dell’s customer service, called the situation “terrible”, explaining that it was comparable to “delivering materials to the wrong factory 45 percent of the time.” Worse, to slow the tide of calls from customers, Dell tried removing its toll-free service number from its website. Customers’ reactions showed up in Dell’s declining market share and slumping customer satisfaction ratings (Certo, 2013). Moreover, when Dell went on to expand its tech support outsourcing with other call centres in India, customers began complaining. Consequently, Dell stopped being perceived as an American role

• Competition : Apple with propriety architecture had 20% market share, Compac enters in ’82, Dell in ’84,

The main products offered by Dell to consumers include printers, corporate desktops, notebook and workstation systems, software and peripheral products, and consumer desktop and notebook systems.

The products of Dell are known for their quality, service & on time delivery. Their focus on customer satisfaction helped them overtake their competitors and acquire Number 1 position in the market.

This enabled strong customer relationships and increased customer satisfaction. One of the characteristics that distinguishes Dell from its other competitors is that Dell provides the facility to customize computers of their choice and taste and deliver the system to the customer as it is. This is the most crucial and critical success factor behind Dell Computers. Dell’s direct to consumer model concept helped them reach above-average returns and remain in business today. Customers have developed a brand-name loyalty to Dell because of their cost efficient differentiation strategy. Their strategic moves for their products created an image for themselves in the market and is the reason for their dominant existence. This enabled them to earn more market share in the industry. The customer segmentation that Dell focuses on is the corporate segment and large businesses form the majority of its clients. This customer segment targeting is more likely a result of its operational strategy and not the other way round. However, with corporate segment customers seeking high performance, reliable, affordable solutions, Dell fits in comfortably. Dell also appeals to those customers who want hands on experience of the latest technology and the idea of customized computers is very appealing. For Dell, it focused on providing superior quality services to its customers through its sales representatives. It also shifted

Dell has also employed two major strategies, customization options for clients who demand cutting edge technology along with a build-to-order option. As a result this has drastically increased its value to customers and also allows Dell to carry fewer inventories which could in turn result in obsolesce. In other words the overproduction is greatly reduced as the production is essentially in line with the demand and the market.

Thus, the centerpiece of Dell Inc. 's current marketing strategy is direct marketing to the enduser.

Competitors- This industry has very high competition. Each company is trying to provide the best product they can in their own way. Dell has focused on using the build-to-order model to provide customers with custom computers at relatively low prices.

A major strength that limit threat is Dells ability to provide a cheap but highly customized product. Through strategic partnerships with suppliers and using a build-to-order model Dell has been able to keep up a barrier to new entrants into the industry.

Although Dell is an extremely successful company, there are areas of improvement and enhancement that should be considered. After a thorough analysis of Dell¡¯s IT tools, business model, IT infrastructure and competitive advantage, we have developed seven key suggestions. By implementing these recommendations, Dell can keep its high ranking in the competitive computer industry by increasing customer satisfaction, competitive advantage and superior value chain, without changing its principal operations to achieve these goals.

How Dell does it McGraw Hill Professional, 2006 In its March, 2005 issue, "Fortune" magazine dubbed Dell Inc., the "Most Admired Company in the U.S." Such high praise is nothing new for Dell.