Report on the Organization History and Marketing Strategies of Dell

Introduction

Background of the Study

Here the report that I have been assigned is a academic exercise and a partial fulfillment of MKT201 course requirements. In this report I have tried to explain and study the S-T-P strategy of DELL.

Objective of the Study

The main objective of the assignment is to Identify the S-T-P strategry and Marketing Mix( 4Ps) used by DELL.

Sourcer of Data

We collected data from:

• Internet and journal activities
• Suzuki Website
• Marketing Management Book by Philip Kotler and Kevin Lane Keller

Company Overview

History of the Organization

Dell is an US multinational computer technology company that develops, sells, repairs, and supports computers and related products and services. Dell is one of the world’s largest computer systems companies, which is highly distinguished by its direct channel marketing policy. It was in the number 51 in the Fortune 500 list in 2014.

Products

Dell OptiPlex

OptiPlex is a line of business-oriented desktop computers from Dell aimed at the corporate, government and education markets

Dell Vostro

Dell Vostro is a line of business-oriented computers from Dell aimed at small businesses. The line was discontinued in 2013 but then again started production in 2015.

Segmentation, Targeting and Positioning

Dell uses customer segmentation and product segmentation to target several markets and design products specific for that market. There are different pricing and marketing strategies for different geographical areas. For example, in Asia the prices of Dell computer are slightly higher than in the USA.

In terms of demographically, although there is little bias in income, occupation and education of customers, Dell does not have any bias on gender and race. This is because income, occupation and education of customers have an effect what that particular customer will buy. For example, a person with a high income will be able to afford to buy a slightly expensive computer than a person that has a lower income. Now, when talking about behavioral aspect of customers, Dell focuses on the benefits that customers will search for when buying the product. For instance, cheap price, high quality or different features provided.

Overall, Dell tries to target customers that require a lower service costs and have predictable purchasing patterns. This allows Dell an opportunity to develop a core competence in targeting and keeping a specific database for target customers.

Marketing Mix

Product

Dell offers its customers a variety of computer systems workstations, servers, desktop computers and notebook computers.90% of Dell’s PCs are sold directly by them to the final customer, this makes up most of the World’s PC sales. However Dell does not produce the raw material needed to make the final product. So this means they are hugely dependent on their suppliers. This approach is very risky and mat be a threat for their long time success.

Place

Dell has a huge advantage in this area. 90% of Dell’s PCs are sold directly by them to the final customer, this makes up most of the World’s PC sales. Dell had initially started by selling its product over the phone but later they were the first to adopt advanced technology and use the internet as a direct channel to sell its products.

Price

Price is the amount of money charged for a product or service, or the sum of the values consumers exchange for the benefits of having or using the product or service. Dell moto is provide best quality product at the cheapest price possible and so to keep up with the customer’s expectation of value for money. Dell can do this low price selling, because it is saving cost by not manufacturing raw materials and also by cutting of retailers and distributors. These factors help Dell to keep price at lowest. Also Dell gets a clear idea of the market’s demand and supply using the internet and so changes its prices and promotion according to that.

Promotion

One of the most important component of the Marketing Mix is promotion. Dell uses many dell different promotional methods such as advertising on TV, Internet, Magazines and Newspaper. Dell also uses product placements in films and television as promotional techniques. Perreault et al suggested that direct sales channels and direct customer relationship approach has allowed Dell to understand its customer’s needs fully and create a huge competitive edge.(Perreault, 2009)

Criteria of Effective Segmentation

Dell’s Laptop and PC’s purchasing power, size and profile of segments are easily measurable. Dell is also accessible all around the world. The segments of the market are huge and served effectively. The segments can be distinguished conceptually by demographic or geographical segmentation. Also to attract and serve the segments, effective programs are designed. Overall all this points show that Dell’s product has an effective segmentation.