Dell Marketing Strategy

Topics: Marketing, Dell, Personal computer Pages: 13 (4700 words) Published: March 18, 2011
Report on Dell Marketing

Dell Marketing
Dell Inc is a multinational information technology corporation based in Texas, United States of America. It develops and sells computers and related products and services. It is one of the largest technological corporations in the world, and bearing the name of its founder Michael Dell, it employs more than 96,000 people across the world. Dell has grown by inorganic and organic means since its inception. Some of the notable mergers and acquisitions it has been involved in include that of Alienware in 2006 and Perot Systems in 2009. By 2009, the company had sold personal computers, network switches, servers, and software and computer peripherals. The company also into sells HDTVs printers, cameras, MP3 players and several other electronics built by other manufacturers in the industry. It is renowned for its novelty in supply chain management and electronic commerce. It is quite commendable that Dell is the second largest non-oil company in Texas behind AT&T (Dell, 1999, p.13). From the early times of Dell, it operated as a pioneer in the ‘configure to order approach’ to manufacturing that involves delivering individual PCs configured to customers’ specifications. In order to reduce the delay between purchase and delivery, Dell has a policy of manufacturing its products close to its customers; this also allows a just-in-time manufacturing approach which reduces inventory costs (Jacobs, 1999, p. 678). Therefore low inventory is one of Dell’s signatures of business model. The manufacturing process covers assembly, software installation, quality control and functional testing.

Dell Marketing Strategy
According to the CIM definition of marketing is “The management process responsible for identifying, anticipating and satisfying customer requirements profitably” ; and according to the AMA “it is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved October 2007)” Both definition describe marketing as a process that purpose is to increase sales, hence it is a sequence of actions and procedures. However, they diverge in the purpose of marketing. The English definition is more focused on the customer satisfaction as a requirement for the company’s profitability; whereas the American definition includes different stakeholders besides the customer such as partners and society. According to

Also According to according to Mercer (1996, p. 12), marketing can be defined as the strategic business role that creates value by motivating, facilitating and fulfilling consumer demand. This is done by building brands, creating relationships, developing good customer service and communicating the benefits. Operating centrically, marketing brings positive returns on investment, fulfils shareholders and other stakeholders’ needs as well as those of the community and contributes positively to behavioural charge and sustainable business future. The American Marketing Association defines it as the process of organising and executing the conception, promotion, pricing, and distribution of ideas, goods and services to generate exchanges that satisfy individual and organisational goals (Kotler et al, 2008, p. 7). Thus, marketing can be summed up defined as a functionprocess within an organization, organization, that aims to increase customer satisfaction and value for customer as well as other stakeholders, by which is responsible for identifying and anticipating customer needs and advising the administration accordingly in order to design, produce, price and promote products and services in order to meet the needs of the customers. Dell has done this in a number of ways; for instance it has reduced its inventory to a 5 day supply, which compared to the 20 to 70 days for its major competitors, was a very low supply period. This gave them the...

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