The Marketing Mix of Dell Inc.
THE MARKETING MIX OF DELL INC
Table of Contents
Competitive advantage and market superiority tends to be among the top of the list of priorities of any business or commercial entity nowadays. Proper consideration of the market and establishing a really viable marketing mix allows organisations to maximise their potential and realise their individual goals. However, the inherent problem in this assumption is that the rest of the companies working as a direct or indirect competitor also have the propensity to take on the same objectives of gaining the bulk of the market share and take over the top of the industry by being competitively superior. The processes and systems on which these companies employ will be the one who’ll make or break their performance in the market. Among those that have become monoliths in their respective industries is Dell Inc. The following discussions will be looking into the model used by the company in their operations. Specifically, a look on their marketing mix as well as their distribution scheme will be taken into account. The arguments and observations made in this paper are to be supported by books, articles and journals discussing the growth of Dell Inc and the importance of the marketing mix and distribution processes in a commercial organisation.
Dell Inc is among the contemporary organisations that has benefited from making sense of their business environment and create a business model distinctly their own. It is among the top companies in the computer-hardware industry along with its major competitors IBM and Hewlett-Packard. ( 2004) The company was noted by recent organisational literature as among forerunners in the context of B2B (business-to-business) transactions. (2004) It was also noted that the company is among those who employ a just-in-time (JIT) model in their inventory. (2004) This means that the company will only manufacture specific items in their product list once orders are placed through the internet and through other telecommunication means.
Traditionally, companies rely on marketing to provide information to their target market about their product and possibly attract the market that they are targeting. However, that may not suffice nowadays. Studies have indicated that “functional, process, and relationship benefits” are among the most significant elements needed for marketing superiority in these contemporary times. (1999) Basically, being competitively superior depends highly on how well a company manages its marketing mix. The marketing mix is the proverbial four Ps (product, price, place, and promotion) often pointed out in business lectures and organisational studies. In the context of Dell Inc, their product is predominantly computer-hardware with rather competitive prices as compared with the other top manufacturers and distributors in the industry. In terms of promotional endeavours, Dell Inc has been among the leaders in using contemporary marketing schemes. These promotional activities range from print ads, billboards, television advertisements, Internet advertisement, and even contemporary marketing techniques like sponsorships in professional sports and product placements in television and films. ( 2004) One distinct characteristic of the marketing mix of Dell is its place, or what it is normally referred to as the distribution channels of the company. This appears to be one of the distinguishing factors that put Dell among the top of the computer-hardware food-chain.
In the case of Dell Inc, the channel of distribution tends to significantly affect the company’s performance in terms of sales. As indicated earlier, the company uses a JIT inventory system. At this point, it is important to note that in using that type of inventory system, Dell Inc is able to reduce wastage and added cost of storing and moving products. (2003) In the same regard, this places added efficiency on the operations of the company given that both logistics and sales has been amalgamated into a unified operation. (1993)
Moreover, (2004) indicated that Dell Inc has chosen the internet and telephone lines as its main business channels. This places the company in direct contact with its customers. At a certain degree, this is one of the competitive advantages of Dell Inc as it is apparently designed to take on these marketing objectives. The use of the internet as one of its medium inevitably provides the company is a considerably wide range and variety of clients. (2003)
The discussion above has provided a detailed description of the marketing mix and channels of distribution of Dell. The discussions found out that the level of success currently enjoyed by the company is largely influenced by these areas. Specifically, the study even pushed it further by claiming that these elements are among the factors that contribute to the competitive advantage of the firm over the rest of the players in the market. Seeing the conditions involved in the external environment of Dell the use of such scheme permits effectiveness because it is clear who their customers are along with the fact that a huge demand for their products is perceptible from these customers. It must also be noted that such a system would not be practicable as it is if an effective level of control is accessible to the company. Based on the discussions above, the company is well aware on how to manage their market as well as the manner on which it could further acquire a greater market share through their channels of distribution.
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