The Marketing Strategies Of Dell Inc Commerce Essay

The Marketing Strategies Of dingle Inc Commerce EssayCompetitive advantage and food food market superiority tends to be among the top of the list of priorities of any subscriber line or commercial entity nowadays. dell as a gild has often been viewed as having a singular schema, manufacturing public figure and selling crossroads that atomic number 18 cheaper and more(prenominal) than efficient than its competitors. In 1984, with only $1,000 in startup capital, Michael dell established dell as the low gear company in its industry to sell custom-built computers directly to end intentrs, bypassing the dominant system of rules of using resellers to sell mass produced computers. The following will apologize how Dell utilizes the direct business model which increase the secureness to market, superior customer service and dedication, and how Dell applies the latest technology more efficiently than the lede competitors.Since a young age Michael Dell has been intrigued and fa scinated in the idea of eliminating unnecessary steps. So it was not surprising when he established a company where there merchandise strategy was based on eliminating the middleman. We sell computers directly to our consumers, deals directly with our suppliers, and communicate directly with our people, all with stunned the unnecessary and inefficient presence of intermediaries. We augur this the direct model, and it has tampn us, to use a common phrase at Dell Computer Corporation, direct to the top (Dell, xvii). The direct business model eliminates retailers that chalk up unnecessary time and cost, that could diminish Dells understanding of customer expectations. The direct model allows Dell to build every system in order to provide customers more powerful, better configured systems at competitive prices.Dells direct business model is based on direct selling, eliminating the use of resellers and channels of retail. Dell was commensurate to build brand loyalty amongst its cons umers over a period of time through mental synthesis direct relationships with them, constantly speaking to customers, and analyzing their preferences when purchasing a product. Through building these direct relationships which is a key component of the direct business method, Dell was able to understand and analyze the specific preferences of their consumers to satisfy their needs and wants. Expanding on the theme, Michael Dell expresses the emphasis of using the direct method thru direct relationship sellingWith an average of approximately 1,400 telephone calls received daily, Dell gets real-time input from its customers regarding their product and service requirement, their views on various products in the market, and their response to Company advertising. This input gives the Company a competitive advantage in tailoring its product offerings and conference programs to meet its customers needs. Direct relationship trade also eliminates the 25% to 45% dealer mark-up, thereby e nabling the Company to price its products aggressively. In addition, the Companys marketing strategy allows it to sell its products through Company employees who ar trained specifically to sell Dell product.(Dell, 31)The efficiency of the direct business model by of direct marketing relationships benefited Dell tremendously. Rather than doing guesswork on what they thought customers wanted they were able to find out exactly what customers desired and preferred. So not only was Dell able to manufacture the products that customers wanted, but they were also able to develop them at high quality. Our ability to produce a line of high performance products harmonious with accepted IBM standards.( In fact, umpteen of our products had performance features that were superior to IBM systems, and were frequently top-ranked by publication such as PC Magazine and PC World.) (Dell. 31)Dell has been able to excel ahead of its competitors through the use of the direct model. One key strength tha t gave Dell a competitive advantage according to Michael Dell was, Michael Dells localize on concrete issues like cutting operation costs, improving delivery time, and maintaining customer service is the underlying force that has driven the company. Michael Dells establishment of the direct model, as well as his exploitation of the benefits of the Internet, has contributed vitally to the companys successes in both the US and overseas markets. (Richard San Juan, Gaebler Ventures)In 1998, Dell became the number two manufacturers and marketer of personal computers in the world. Michael Dell was able to take his company that he started with the little money he earned in college, and turn it into one of the most profitable companys today. Dell grew five times faster than the industry rate. Stocks rose more than two hundred percent, which is the largest share gain in the SP 500 and NASDAQ 100. In the chart below, statistics shows that Dell has been able to thrive within the PC market, ha ving the second largest market shares behind Hewlett-Packard in 2009. Although this chart is from the first quartile of 2009, in 2010 Dells market shares increased by 12.6 percent.Dells market share in U.S. and Worldwide (in Q1 2009) compared to opposite top PC makers.( Dells Direct Model to Success Dells Business Plan, San Juan)Dell has been able to excel ahead of its aspiration within their industry. They were able to do this because companies continued to guess what products their customers actually wanted, Dell was already aware of their customers wants and needs for their products. Dell had the upper hand on its competitors because other companys were manufacturing product based on the assumptions. Companies such as HP, Acer, Toshiba, Gateway, and Apple were losing a lot of capital. This is from their lack of knowledge of the consumers.Although many analyst may have criticized Dells marketing strategy as one that is very simple and basic, it has been proven to be very effici ent. Dell continues to maintain market leadership and profitable growth, and continues to reach out to new markets. Although later on in the text we will get into how Dell marketing strategies were incorporated thru the Internet, information and communication technologies and the Internet are greatly used in its direct business model. In the figure below of The Delta Model Map, the three major categories of Dells core competencies are shown. These three major categories are system lock in, best products, and total customer solution. The strengths and capabilities of Dells company can be seen on the map.The Delta Model maps identifies three major categories of an organizations core competencies.( Dells e-Marketing Strategies to Enhance Competitiveness, Chen) brass Lock-In is the ability for a company like Dell to lock-in customers. Having customers that are brand loyal and continuously purchase products from that company such as Dell is to be lock-in. Dell having websites, and phone numbers for customers to assist them with any issues they may have increases the trust and loyalty customers have for the company.Best Product- is products or services that are perceived by customers to be more efficient in the areas of quality, feature, functionality, sales services, and cost leadership. Dell provides customer with high quality prices at low cost because they take single-valued function in direct sales.Total Customer Solution- The ability of an organization to offer and deliver integrated solutions to meet customer needs and satisfaction. Solutions comprises of products or services, products bring together with services, and customer integration and engagement business processes.( Dells Direct Model to Success Dells Business Plan, San Juan)Dell also introduces the latest relevant technology much more quickly than companies with slow moving, indirect distribution channels, and turning over inventory every three days on average.Dell success is due in part to that they always had the willingness to look at things differently. In the industry that they are in that is important, and to stay motivated. This is important because when Dell first began using the Internet and expanding their business, many people said that it would not work. These were the same people who had doubted the direct business model and said it would fail. When Dell first began using the Internet to expand their business they had three objectives to make it easier to do business with Dell, to reduce the cost of doing business with Dell, and to enhance our customer relationship.(Dell, 101) By using the Internet to help quicken the speed of information flowing between companies, made it possible to obtain precision and speed to market for products and services in very positive way.Internet marketing or e-marketing strategies can be defined as the design of marketing strategies that capitalizes on the organizations electronic or information technology capabilities to reach s pecified objectives. (Strauss et al, 2006, pg. 41). With the use of communication and technology, Dell has been able obtain customers information and history and store it in a warehouse. This information can be retrieved and accessed anytime for reporting issues. This data system warehouse serves as the safe of Dells marketing knowledge management system. So this is where Dell employee go to when analyzing customers behaviors and trends.Understand the behavior of the customers is a very critical part in Dells marketing strategy. So thru having this data systems warehouse and the use of the direct business model, Dell is able to deliver the best experience to customers, whether its online or in stores. The deliverables of the customer experience objective are Best value proposition, highest quality and most relevant technologies customized systems superior tailored service and support Products and services that are easy to buy (online 247) and use. (Dells Direct Model to Success Del ls Business Plan, San Juan)Dell divides their customers into two major groups, relationship and transactional. These two groups are very essential in the success of Dells products. Relationship customers are customers who buy repeatedly and in larger quantities or value, while Transactional customers are customers who buy less frequently and in smaller quantities or value. Both Relationship and Transactional customers are further sub-segmented. (Dell Marketing Strategies, Cage)