Marketing Strategies Analysis Dell Inc.

3211 words - 13 pages

1. SELECTED ORGANIZATION SUMMARYDell Incorporated was founded by Michael Dell in 1984 and went on to public in 1988 at NASDAQ. He believes the concept of build-to-order and direct contact with customer has advantages to compete with most of the manufacturer in the personal computer industry. By offering low cost products and quality services directly to customers had assisted the company to capture most of the market share among its competitors at the early 1990s. (Dell 2007a; Wikipedia 2007)The concept of direct business model is to eliminate middleman and high inventory cost, therefore lower price, faster response time and better quality products can be offered to customers. This marketing concept is also successfully applied to other regions such as Europe, Asia, Middle East and Africa which most of the people believed it would not work at the time. (Dell 2007c)Today, Dell is one of the largest computer manufacturers in the market and their mission of providing excellent experience to customer has achieved. (Dell 2007d) By using direct selling concept effectively, the company had stunned the industry with a whole new view of doing business with customers. The marketing strategy directs the company to communicate and satisfy the needs of end users with a whole new approach which provides lots of comments/feedbacks to fine tune and improve with customer interaction.2.MARKETING EFFECTIVENESS EVALUATIONThe evaluation of marketing effectiveness (Kotler 2003) shows Dell's strength on all marketing aspects and assists the company to improve both in short term and long term.2.1 Customer PhilosophyDell's segmentation approach not only towards their products but also customers as well. He had split the segments into three categories - large and medium sized companies, educational and government organizations, and small businesses and consumers. These approaches have helped the sales team to focus on the required knowledge and also customize the service level to each of the target segments. (Krames 2003, pp. 70-1)The direct selling model has helped Dell to understand what customer really needs and wants. Their orders are made by phone, internet or fax which provided the company with first hand comments and preferences on specific models or services. By collecting all this valuable information from customers to database, Dell could evaluate and adjust their products to suit the market latest trends and to avoid mistakes happen twice in the future. This information will also share with suppliers and designers which provide them with opinions come from the end-users. Therefore, future designs will be more customer-oriented other than just the desire from the industry. (Dell Online Case 1999)2.2 Integrated marketing organizationEvery employee in Dell fully understands the fundamental concept that drives the company into one of the top computer manufacturer in the world. Top management spent great amount of time explain and communicate to everybody what needs...

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