The Dell Promotion and Price Paper

The promotionPromotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The pace and creativity of some promotional activities are almost alien to normal business activities.The cost associated with promotion or advertising goods and services often represents a size-able proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective.

A Promotion mix is to gain awareness of target segment on the existence of a product or services and the benefits it confers to customers. The tools of promotion in a company are advertising, personal selling, public relations, marketing and online promotion. For the Apple Company to realize this strategy it has to train their staff to a high level of promotion. Personal selling is a form of promotion relevant to the Apple computers company and to the retailers authorized. The staff gets training on the knowledge of the product with a great focus on the sales of Apple computers. The people doing sales are in the best position to provide an immediate effect on the promotion of Apple computers (Nijs et al, 2001).. The Apple Company uses a range of media advertising to promote the Apple computers. The internet, prints and alternative media like billboards are among the channels for the advertisement of the computers. Advertisement is a very important tool for the company to gain new clients and sales.

The direct supply chain model that Dell has been using for many years to sell customized PC’s to customers via the internet has been very successful. Dell designed and structured the supply chain to provide customized computers in a quick manner and with a reasonable price. Customers can visit the Dell website and configure the PC they desired and see the cost options they selected. Once the order was finalized, Dell would then start the building of that customized computer to meet the customer’s selection and ship the finished product directly from the manufacturing

There looks to be a growing demand for computers in the household, and Dell would like to accommodate that need. Dell has felt the need to

There are firms that are more successful than others. In this paper I have talked about one company, Fitbit. I have also discussed about the other companies that are in competition with Fitbit and those companies are Garmin and Jawbone. In this essay we have looked at the 4 P’s of Marketing and how Fitbit is using them. For product Fitbit has created multiple types of activity trackers that have different functions on them. Next, price was talked about and how price is a deciding factor when a customer is deciding a product. Following, promotions were discussed, it was discussed that Fitbit has done multiple promotions such as the “True Heroes” commercials. Lastly we talked about place/placement of the product or promotions. In this section

Dell’s target market consists of personal computer users and corporate users. Dell is known for their ability to build computers suited to their customers needs. Because their largest customer base is marketed online, their geographic area is unlimited. Since technology is rapidly progressing and moving away from traditional PC’s, Dell has to diversify their products.

At its heart, promoting a product is simply communication. “Consumer perceptions are a key component of success or failure, so organizations must strive to align communications into clear, concise, and customer-oriented messages”(Lumen, n.d). The point of promotion is to convince consumers to purchase the intended product. There are several promotion methods to choose from and nearly limitless media to use for promotion. Marketing departments must choose the method or methods and media that best reach the target consumer. In order to further illustrate the use of promotion methods and media, promotion strategies have been developed for a software company, a new toy, a health beverage, and a small airline.

Dell uses a push-pull strategy. It produces computers by using components after a customer order. Dell’s model is called a Direct model where suppliers deliver to Dell and Dell is directly in relationship with the customer without distributors and/or retailers. The customer is in the beginning (specific order) and at the end of the process. Suppliers are situated very close to the plant which results in a easy coordination. There are few suppliers and it saves money through shipping directly to customers. Next to specific components, Dell also uses some components through all orders. Each order consists of a motherboard for example.

Affordability of latest technology through Direct Sales Services - Dells uses direct customer relationship or as it calls it “customer intimacy” as its distribution strategy. This means meeting customer needs directly and cutting middleman interference as much as possible. This is done either through dedicated sales representatives, telephone based sales and online at www.dell.com. As a result, the purchase price would be lower than other competitors.

Dell is the most successful company in PC industry of 21st century. It has shown phenomenal growth record over the past decades & listed as America’s third most admired company. Their core strength lies in Direct model offering closer customer interaction and Virtual Integration. This is giving a low cost advantage to Dell and its competitors are not able to imitate this model for all these years.

Modern marketing calls for more than developing a good product it attractively and making it accessible to target customers. Companies must also communicate with their present and potential customers. Every company is inevitably cast into the role of communicator and promoter.

The world of technology has been changing and expanding on new and innovative ways to communicate. Phones, for example, are now mobile computers and are able to send emails from anywhere. Also, newer phones are capable of turn by turn navigation system to guide you to where you need to be. Computer companies such as Apple and Windows tablet have revolutionized the way we see and use technology, and have been able to understand and execute it to conform to our daily lives. In this paper, I will outline different promotional strategies through advertisement, public relations, sales promotion, and direct marketing that Apple Inc uses with I-pad and compare it with Microsoft Window 8 tablet use.

Sales promotion tools are used by most organizations, including manufacturers, distributors, retailers, and not-for-profit institutions. They are targeted toward final buyers (consumer promotions), retailers and wholesalers (trade promotion). Today, in the average consumer packaged company, sales promotion accounts for 74 percent of all marketing expenditures. Several factors have contributed to the rapid growth of sales promotion, particularly in consumer market. First, inside the company manager face greater pressures to increase their current sales, and promotion is viewed as an effective short-run sales tool. Second, externally, the company faces more competition and competing brands are less differentiated. Increasingly efficiency has declined because of rising costs, media clutter, and legal restraints. Finally, consumers have become more deal oriented, and ever-larger retailers are demanding more deals from manufacture.

Dell is among the world's leading computer manufacturers that has transformed and diversified into variety of business segments over the years. Products range from Dell PowerEdge servers, Power Vault, Dell EMC storage systems as well as PowerConnect switches for corporate clients. For individuals and professional customers products range from Dell Precision workstations, OptiPlex desktops, Dimension desktops, Inspiron and Latitude notebooks. Apart from these core products, the company also offer products and services range including printers, projectors, Axim handhelds, and other accessories. More recently, the company has announced intentions to explore LCD television/computer monitors as well as digital music players

This Dell case study designed for business and marketing students details Dell 's business and marketing strategy focusing on E-commerce. Describes approach to managing Dell.com. Updated March 2008.