Dell 4p’s of the Marketing Mix Essay

Introduction of dell Inc.dell Inc. is a multinational technology corporation that develops, manufactures, sells, and supports personal computing machine and other computer related- yields. dingle Inc. based in Round Rock, Texas. dell Inc. employs to a greater extent(prenominal) than 82,700 people foundingwide. dingle Inc. grew during the 1980s and 1990s to be diminish (for a time) the largest seller of PCs and servers. As of 2008 it held the second spot in computer sales within the industry behind HP. The keep company currently sells personal computers, servers, data storage devices, ne devilrk switches, softwargon and computer peripherals. Dell Inc. too sells HDTVs that ar manufactured by other brands. In 2006, Fortune Magazine ranked Dell Inc. as the 25th-largest company in the Fortune 500 list, 8th on its annual Top 20 list of the most admired companies in the United States, In 2007 Dell Inc. ranked 34th and 8th respectively on the equivalent lists for the year. A 2006 i dentified Dell Inc. as wizard of 38 high-performance companies in the S&P 500 which had consistently out-performed the market over the previous 15 years.HistoryBackground and OriginsWhile a student at the University of Texas at Austin in 1984, Michael Dell founded the company as PCs particular with capital of $1000.5 Operating from Michael Dells off-campus dorm-room at Dobie Center 1, the startup aimed to sell IBM PC-compatible computers built from stock components. Michael Dell started trading in the belief that by interchange personal computer-systems directly to customers, PCs Limited could better understand customers need and provide the most effective computing solutions to meet those needs. Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $300,000 in expansion-capital from his family.Dell Inc.s Marketing 4PFrom the successful selling of the range of products being offered by Dell Inc, especi entirelyy the quick increase of the sales of Dell Laptop, other than the constituted brand name and the reputation of Dell Inc. worldwide, part of the success factors give notice be attributed to the successful merchandise driving force by Dell Inc. In this assignment, we willing be doing a seek on the Marketing 4Ps Mix (product, advancement, price, surface) being implemented by Dell Inc to market the range of home users laptops. picPRODUCTAs for the case study of Dell Inc, the point on product expense highlighting is that, the vision and mission of setting up the company itself, is to figure out and conform to IT consumers needs, want, and demands. The original idea of setting up the company by Michael Dell, the founder of Dell Inc, is to eliminate the retailer and sell directly to the consumer. To quote Michael Dell, he tell this before, as a customer, I was disappointed that when Iwent to a computer store, the salespeople didnt really spang about computers. This makes that Michael Del l has had the vision and commitment of gather the IT consumers needs, wants and demands, which is the essence of a product means to consumers. The above paragraphs summed up the commitment of Dell Inc.s to solve IT consumers needs, wants and demands, which in and of itself is an excellent product merchandising. Dells Laptops/ NotebooksFrom the above diagram, it set ups the each category of Dells laptops for home users caters for different home users with different needs and wants. Guides and Assistance Provided by Dell Inc. In acquire its Laptops For the potential procureers of Dells laptops, they are provided with disembowel and assistance in the process of selecting and purchase laptops. Below are the guides and assistance being provided by Dell Inc for its potentiallaptop buyers (1) Customize Yours getDell Inc offers the Customize Yours feature, this feature help with the laptop buyers to build their own laptops, yes, literally building their own laptops, they crapper ch oose on their own the notebook colour kit, processor, operating system, warranty and service, display size, memory, hard drive, optical drive, video card, audio solution, wireless network card, Bluetooth device, USB rail line for printer, batteries, power option, keyboard, service, Datasafe Backup Service. The options for each feature and accessory come with a stated price, while the basic feature is imposed no extra charges, as they are already included in the quotes price. Only upgraded and added-value features and accessories come with extra charges.After the laptop buyers built the laptops that fit exactly what they are looking for, they tramp review the laptop, thither will be a list shown on any specification of the laptops they have built before adding to the cart. Also, the price for every component, feature and specification being picked by the buyer are stated clearly when the buyers are reviewing the laptop they built. This customize yours feature in and of itself is a n effective marketing, as the buyers can buy exactly what they are looking for, without buying something that comes with the package that they are actually not looking for, but they have to pay for it just to buy the package. This customize yours shows that the home users laptops Dell Inc offers provide solutions to consumers needs and wants, which is the essence of a marketing offer.(2) Help Me engage featureThe picture above shows the Help Me Choose feature being offered to assist with laptop buyers on the Dell Online Store. As we can see the this feature gives detailed development to buyers in order to guide them through the purchasing process by furnishing them the information regarding the products, the specifications of the products, the financing and payments options, the access to Dell stores and retailer, the term of laptops, the awards won by Dell laptops, the reviews by Dell laptops customers, and as well as the online buying guide. This feature ensures the potential buyers can buyexactly the laptops that fit their needs, at the same time, this feature excessively makes the potential and actual buyers know more than in-depth of the laptops Dell Inc offers, this in turn would make the buyers patronizing Dell Inc in future when they need another type of laptops, as they already have the information on the wide range of features and specification being offered by Dell Inc.(3) determine Your Selection featureThis Narrow Your Selection feature helps with the buyers to be more specific with what they want. When comes to a broad array of selection, buyers are often being not able to make up their headland in choosing which model to purchase. This is when this Narrow Your Selection comes into help to the buyers. The buyers can have a look on the each range of product that are being categorized into a more specific that might interest them rather than being confused on which one to purchase.ConclusionFrom the above information regarding the commitmen t of Dell Inc in offering laptops that fit each and every users needs, the features and specifications of Dells home user laptops, and also the purchasing process guides and assistance. These all come to one conclusion Dell Inc custom-builds a laptop that fits each and every customers needs, wants and demands. This effort in and of itself is a brilliant product marketing st estimategy. forward motionIn terms of procession, Dell Inc. not only launches and implements one-time event such as road-show or advertising when immature products come out, but Dell Inc commits to incessantly promote and make-known its products to the market. Dell Inc. does not practice aggressive selling in order just to increase sales transactions, but focuses on colossal-term promotion effort through (1) supporting its customers continuously, (2) giving effective and efficient after-sales services, and (3) conducting a customer review and feedback mechanism. (4) Contributing in charities. (1)Dell Inc.s C ontinuous and Long-Term progressionLong-term customer support system and feedback mechanism in and of itself arethe best promotion tools. The followings are the customer support systems and feedback mechanism being spring by Dell Inc in its long-term effort in giving its customers value and satisfaction.(a) Dell ConnectIn mid 2007, Dell Inc introduced a new tool and technology, named Dell Connect. Dell Connect is an online technology that enables the tech staff to connect to the customers computer and fix problems on the spot or show the customers how to do it. For IT products such as laptops, after-sales service would be one of the primary concerns to customers, as laptops need regular and frequent services, updates, and upgrades. Hence, Dell Connect would be an attractive feature in promoting its laptops to the market.(b) Idea StormOn February 16, 2007, the company rolled out IdeaStorm, which is a forum for users to brainstorm what works, what does not and what new features they would want to see introduced. Here to quote Michael Dell We take the customers input and design the products and services. Rather than telling the customers and the market what new products and ideas that Dell Inc has come out with, Dell Inc gives the customers and the market to have a say on the input and design. When the customers and the market have some say, they will feel being considered and treasured, which in turn Dell Inc succeeds in delivering customer delight. This in and of itself is a promotion of Dell Inc.(c) Customer Product ReviewsFor each and every model of Dells laptops, there will be a forum for its existing customers who bought the particular laptop model to write their own product reviews, they can also rate the laptop model in terms of quality, features, and value. Other than that, they can comment on the pros and cons of the particular laptop model. The customers are also allowed to give any additional thoughts that they have regarding the laptop model. Thi s customer product review in and of itself is similar to word-of-mouth marketing.This marketing approach is many times powerful than any marketingplans. As what a customer says is has much more influence and carries more impact on the companys reputation and image rather than what an advertisement says. How the previous and existing customers perceive a company and product can influence a companys position in a market place to a large extent. As so, Dell Incs decision of allowing the customers to write the product reviews shows that Dell Inc is confident on its laptops and proves Dell Incs integrity and transparency, at the same time, hence, the customer product reviews written by the customers act as a marketing tool itself. (2) Dells effort on almsgiving contribution(a) Dell participation in PRODUCT (RED) SchemePRODUCT RED is a worldwide charity intent that runs with the vision of eliminating AIDS in Africa Continent. This charity concept operates by getting the contribution fr om the sales of signature products of top brands in the world, like American Express, Apple, Converse, Emporio Armani, Gap, Hallmark, Starbucks, and etc. And Dell Inc. is one of the participants among them. Dell will be selling computers as part of the PRODUCT (RED) scheme. According to the press release, one hundred percent of the funds contributed from the purchase of a Dell (RED) computer under the scheme goes to the Global Fund, the charity supported by PRODUCT (RED).The amount of money contributed depends on the product purchased $80 is donated for each screen background purchased, $50 for each notebook and $5 for each (relatively inexpensive) printer. Dell Inc.s participation in the PRODUCT (RED) actually proves 2 things (1) Dell Inc. is concern for the world and socials well-being, Dell Inc.s effort in its social marketing campaigns is a promotion of Dell Inc. itself.(3) Collaboration With Local Newspaper commove for Brochure DistributionLocally in Malaysia, Dell Inc distri butes its brochures through the Tuesday Star In-Tech, which is a weekly issue on latest news and updates on technology that comes with every The Star report bought. This approach of distributing the brochures to the public is an effective and efficient strategy for the following reasons (1) The Star newspaper is the best-selling English Newspaper in Malaysia, (2) The brochure comes with theTuesday Star In-Tech, which is the favorite for regular IT consumers, is more specific in targeting markets with higher potential of purchasing its products, (3) The brochure distribution through the sales of newspaper is one of the most effective way of reaching the mass public, thus creating an product awareness in the market once a new product being introduced into the market. The above points show that Dell Inc.s promotion effort in letting the mass public and the market in getting know about their products in an effective only not a cost-consuming approach as the brochures printing and dist ribution costs would be insignificant to a large corporation like Dell Inc.ConclusionFrom the above observation and research on Dell Inc.s overall promotion effort, it is shown that Dell Inc. has established promotion channels which connects with its existing customers, also, reaches out to the entire market. And those promotion channels are being implemented successfully. PRICEWhen comes to the price of Dells marketing offering, it is worth once again touch on the founder of Dell Inc, Michael Dells authentic vision. At the time that he founded PCs Limited (now Dell Inc), IBM personal computers sold in stores for about $3000, after Michael Dell taking them apart and rebuilding them, he realized that the components could be purchased for one-fourth the price. up to now with added memory, bigger monitors and faster modems, the PCs could tacit be sold at a handsome profit. The philosophy of Dell Inc on pricing decision is simple yet powerful give more benefits with lower prices than others. Means purchasing Dells laptops is a value-for-money and added-value experience. Dells Home Users Laptops PricingIn the research of Dell Incs pricing decisions on its home users laptops, the following points worth highlighting (1) Online Price (discounted) For all the laptops, buyers get a discount if they were to purchase the laptops online. This is a win-win situation for both the customers and Dell Inc. As online selling saves up the retail costs for Dell Inc, as for thecustomers, other than getting discounted price for their laptops, online purchase is incrust free to them, the customers need not to visit the physical Dell Stores to check out the models available, by see the Dell Online Store, the customers can check out all the models available at one glance, only a-click-away. (2) Buy and Pay for only what you want ( Customize Yours feature) The Customize Yours feature that allows the buyers to decide on the almost every specification of the laptops they are going to buy is also a advanced pricing decision by Dell Inc. A case study has been through with(p) to prove the pricing decision of Dell Inc that commits to accommodate consumers needs and wants.Case Study 1The rationale of conducting this case study is to prove Dell Inc makes its effort to offer more different models for even a same price. From the comparison between Dell Inspiron 14 and Dell Inspiron 1525, the price are the same for these two models. Both of the models are more or less the same in terms of performance, the difference is that the size of the screen. Asfor Dell Inspiron 14, the monitor is 14.1 WXGA Display with AntiGlare. As for Dell Inspiron 1525, the monitor is 15.4 widescreen WXGA TFT Display. That means these two models accommodate different customers needs, for those customers that are particular with laptop memory and hard drive space would forgo a bigger screen size and go for Dell Inspiron 14, on the other hand, for customers that looking for a laptop with bigger screen size would not mind buying smaller hard drive space.Hence, both segments of customers can purchase what they want at the price they are willing to pay. This solve one of the biggest market and market offerings problem, some companies offer only one model for one price range, assuming that one size fits all strategy would work, in the end, make the customers paying for what they are not willing to purchase for the sake of purchasing something that comes with the package, for Dells laptops buyers, this situation would not happen. Hence, the price being paying by customers to buy Dells laptops match with the benefits that the customers demand. This pricing strategy saves up customers money at the same time delivering customer satisfactions and expectations.(3) 0% episode SchemeBuyers that purchasing Dells laptops can choose not to make one-off payment but an installation scheme. The good thing about Dells laptop installment scheme is that is a 0% interest scheme. This scheme is consider an assistance to the consumers and contribution to the society as well, as the scheme availability allows those customers that are not able to make full payment upon purchasing to own a laptop by paying through an installment scheme.ConclusionViewing Dell Inc from the perspective of marketing 4Ps in terms of price, one conclusion can be drawn, buying Dells laptops is a value-for-money experience, as Dell Inc offers more benefits for less price, also, customers pay for only what they want exactly. In a nutshell, Dells pricing strategies and decisions make a good marketing plan in terms of price marketing.PLACEDell Inc.s Online StoreAmong the giant IT companies and manufacturers, Dell Inc. is the company thatis the most successful with online selling, facts and figures show that its online sales make up a significant number from its total sales, meaning that Dell Inc sells more through the internet than the traditional retailing method. The online selling and purchasing c oncept is frequent with the young generations and also the tech-savvy. The concept of online store, online selling and purchasing not only penetrates virtually the every corner of the world, so long as there is internet-access, there is access to Dell Inc.s Online Stores. Plus the fact that the purchasing enquiry, the models and specifications selection, and payment methods can be done online, in brief, the A-Z of the purchasing process can be done without the customer physically present at a physical Dell Store, makes Dell Inc reaching out to a worldwide market, and relating with its customers and potential customers directly.According to a survey, alone in the United States, some 65% of American online users now use the internet to shop, and the growth of online shoppers is rapid. Since the rapid development of the digital age and the invention of internet, direct marketing is being highly valued, as some marketers have hailed direct marketing as the marketing model of the next c entury. They envision a day when all buying and selling will involve direct connections between companies and their customers. And what should be highlighted here is that Dell Inc is already on the right track, and being established on the right track. This online store concept give Dell Inc. advantages over other laptops and PCs manufacturers which still operating a traditional retailing or agent distribution. The main advantages include (a) Operating an online store costs much less compared to traditional retailing and agent distribution. (b) The access to online store is always available at anytime and anywhere, so long as there is internet-access.Dell KiosksAlthough the concept of online buying and selling is popular and being used by the wide market, it may still be unappealing to some customers. Some customers are still prefer the idea of visiting a physical retailer store, talk to the salesperson, seeing and touching the products physically, get the feel of the products, in s hort, a traditional purchasing process rather than purchasing the products directly online and have it sent to the door.Dell Inc. is aware of this too, although the company is making huge revenues from it online selling. This means that Dell Inc. is a customer-oriented company, which strives to cater for every customer needs and wants, also, accommodates the exchange experiences which are comfortable to each customer. Dell Inc.s effort in setting up the Dell Kiosks, employing the required staffing, and maintaining the trading operations of the Dell Kiosks show that Dell Inc. is committed to make its customers feel at home and their preferences are being valued and not taken lightly.ConclusionIn a nutshell, from the operations of both Dell Online Store and the physical Dell Kiosks, they are successful in terms of customers access, enquiry availability, and customers convenience. These show Dell Inc.s success in its place marketing strategy.CONCLUSIONDell Inc.s strategies on it marke ting mix 4Ps are in good alignment and working cross-functionally, all the areas are synergizing and supporting one another in term of product, promotion, price and place.ProductA good product is a marketing offering that comes it ways to solve consumers problems and satisfy consumers needs. Dell Inc. not only makes quality products, but the products are also being designed to fit each and every customers needs and want.PromotionDell Inc.s effort on promotion is not only profit-oriented or with the sole aim of boosting sales transactions, but also to make Dell a name that equals to quality product. Thus, Dell Inc.s promotion not only very successful in generating revenues, but also created a lasting impact and an established name in the IT market.PriceDell Inc.s price marketing and pricing decision has fulfilled the presumptuousness of a successful pricing strategy, which giving customers the most by charging them the least, this is one of the most important factors that attributes to Dell Inc. success.PlaceDell Inc.s place marketing gives its customers the most convenient andcomfortable ways to shop with Dells products. Dell Inc. caters for all kinds of shopping experiences that its customers demand for. In overall, Dell Inc.s marketing 4Ps has been very successful, and that there is a point that worth mentioning, its marketing 4Ps is a continuous effort and it continues to make a lasting impact for its company success.