Dell did something else other PC companies were not doing; strategically targeting only the customers they wanted. By defining their customer as a ‘knowledgeable PC user’ Dell made their task of providing a PC easier. Their customers did not need to go to a retail store to gain knowledge about their product. This enabled the ‘Direct Model’ for purchasing PC’s to work.
Dell further expanded its ability to meet customers needs by classify customers into specific categories. Customers were categorized into Relationship buyers, large businesses and institutions, and Transaction buyers, small business and home PC users. The Relational buyers made up a significantly larger portion of Dell’s business but also had different needs than Transaction buyers. Every relational buyer was assigned a representative who guided the business and institution through each stage of the buying experience. By integrating both Relational and Transaction buyers into their business system repeat purchases were quick and easy, purchasing history could be consulted, and follow up customer service was able to be more effective.
Dell’s business structure of “virtual integration” allowed it to excel in an incredibly competitive industry. It's competitiveness in the industry resulted from a highly efficient business model that sought out every opportunity to work more productively without compromising the quality of their product. Production efficiency lowered cost which in turn provided Dell with larger profit margins. As Porters Five Forces demonstrates, when bargaining power of buyers is high, the potential for price battles increases. Dell combated failing into the trap of a price battle by making a PC that was a better product than the competitors, yet near their competitor’s price. There costs were able to stay competitive while delivering an exceptional product because their business kept internal costs low, thus showing the effectiveness of “virtual integration.” Like Honda, Dell was able to provide a technologically superior product at a reasonable price. As well, Dell was able to evade a price war because its customers were aware of the technological value in a Dell PC.
Wednesday, June 29, 2011
dell computer inc. sales promotion personal selling
sales promotion is usually cheaper than advertising and easier to measure. sales promotion is usually targeted toward eaither of two distinctly different markert. consumer ales promotion is targeted to the ultimate consumer market. trade sales promotion is directed to members of the marketing chnnel, such as wholesalers, and retailers.
coupons and rebates, premiums are sales promotion.
they are all my company's sales promotion now.
pesonal selling is a purchase situation involving a personal, paid for communication between two people in an attempt to influence each other.
coupons and rebates, premiums are sales promotion.
Deals
they are all my company's sales promotion now.
pesonal selling is a purchase situation involving a personal, paid for communication between two people in an attempt to influence each other.
Wednesday, June 22, 2011
DELL COMPUTER INC. ADVERTISING AND PUBLIC RELATION
Throughout its history, Dell Corp. has been an innovator. This week, the company turned its attention to the world of advertising and PR and announced an innovation that is already sending shock waves through the marketing sector.
Dell announced that it would consolidate its $1.5 billion per year worldwide advertising and PR budget with a new agency the company itself is forming in partnership with WPP Group, one of the largest PR/ad companies in the world. Previously, Dell had spread its advertising and PR spending among 860 — 860! — Agencies around the world. In process, Dell had almost zero ability to track the efficiency and success of that spends. And as managers love to say, “If you can’t measure it, you can’t manage it.”
So in addition to working with one global company that will presumably provide Dell with excellent service, the two companies are developing an integrated analytics tool that will be open to both sides of the relationship and will provide Dell and WPP with the exact same information about the return on Dell’s marketing investment
Lark said this partnership eliminates that concern for Dell, because Dell will be working with a stable team that doesn’t have to worry about pitching or winning the business.
Dell expects two things to happen as a result of this partnership: 1) The outright poaching of talent from other agencies both within WPP and outside and 2) Pitching the services of the new agency to other businesses that don’t compete directly with Dell.
Obviously, not many businesses have the clout to do what Dell is doing. But every business has the clout — because it has budgeted to spend — to ask the right questions of agencies it hires. So while Dell is pioneering a model for Big Business, smaller businesses can feed off the Dell approach by asking the same key questions:
- What am I getting for my PR or advertising spending?
- How can we measure the success of the program and how will we adjust it based on the metrics?
- How can we be sure that the people who pitch us the business will stick around and actually work on it and do what they said they would do?
Sunday, June 19, 2011
retailing
Dell, which began selling in retail stores in late 2007, continues to expand the number of stores carrying its products. It has more than 28,000 locations, company officials said.
It will probably take a while for Dell to establish itself in stores and for retail sales to approach online sales, said Roger Kay, president of Endpoint Technologies Inc.
“It may take them years to turn [retail stores] into something that works for them,” he said. “They’ll struggle at it until they prevail.”
Dell is scheduled to report its first quarter earnings May 28. Its profits declined 48 percent during the last quarter. During fiscal 2009, which ended Jan. 30, the company posted $2.47 billion in net income on $61.1 billion in revenue.
Dell’s U.S. revenue declined 3 percent, while international revenue increased 4 percent during fiscal 2009. The company attributes the domestic decline to its commercial business combined with the global recession during the second half of the year, according to a company filing with the U.S. Securities and Exchange Commission.
With help from retail store sales, the company’s consumer revenue increased 5 percent during fiscal 2009 compared with fiscal 2008, the filing shows.
Dell is continuing its online ways.
Company officials have said they want to increase profits by expanding beyond hardware sales. Dell is also selling management tools, services and software, and the Web is a highly profitable way of doing that.
For example, in January, the company launched the Dell Download Store, a Web site designed for customers to download software from 12 publishers, such as Intuit Inc. and McAfee Inc. The e-commerce site is expected to eventually include music, movies and games.
The 2008 numbers highlight the importance that online business will continue to play at Dell, said Rob Enderle, principal analyst for the California-based Enderle Group.
“At the end of the day,” he said, Dell “will always be better online.”
Top 10 U.S. online retailers
2008
1. Amazon.com Inc. — $19.2 billion
2. Staples Inc. — $7.7 billion
3. Dell Inc. — $4.8 billion
3. Office Depot Inc. — $4.8 billion
5. Apple Inc. — $3.6 billion
6. OfficeMax Inc. — $3.1 billion
7. Sears Holding Corp. — $2.7 billion
8. CDW Corp. — $2.6 billion
9. Newegg.com — $2.1 billion
10. Best Buy — $2 billion
2007
1. Amazon.com Inc. — $14.8 billion
2. Staples Inc. — $5.6 billion
3. Office Depot Inc. — $4.9 billion
4. Dell Inc. — $4.2 billion
5. HP Home & Home Office Store (Hewlett-Packard Co.) — $3.4 billion
6. OfficeMax Inc. — $3.2 billion
7. Apple Inc. — $2.7 billion
8. Sears Holding Corp. — $2.6 billion
9. CDW Corp. — $2.4 billion
10. Newegg.com — $1.9 billion
SOURCE: Internet Retailer
1. Amazon.com Inc. — $19.2 billion
2. Staples Inc. — $7.7 billion
3. Dell Inc. — $4.8 billion
3. Office Depot Inc. — $4.8 billion
5. Apple Inc. — $3.6 billion
6. OfficeMax Inc. — $3.1 billion
7. Sears Holding Corp. — $2.7 billion
8. CDW Corp. — $2.6 billion
9. Newegg.com — $2.1 billion
10. Best Buy — $2 billion
2007
1. Amazon.com Inc. — $14.8 billion
2. Staples Inc. — $5.6 billion
3. Office Depot Inc. — $4.9 billion
4. Dell Inc. — $4.2 billion
5. HP Home & Home Office Store (Hewlett-Packard Co.) — $3.4 billion
6. OfficeMax Inc. — $3.2 billion
7. Apple Inc. — $2.7 billion
8. Sears Holding Corp. — $2.6 billion
9. CDW Corp. — $2.4 billion
10. Newegg.com — $1.9 billion
SOURCE: Internet Retailer
Thursday, June 16, 2011
consumer decision making
Percentage Market Share Grabbed in the growth years 1996 to 2000
Vendor | Home-DT | Home-LT | Commercial-DT | Commercial-LT | Servers | MarketGrabbed | %Grabbed |
Dell | $1,274.82 | $438.91 | $7,532.24 | $3,355.98 | $1,888.20 | $ 14,490.15 | 94.1% |
Compaq | $1,921.67 | $741.98 | ($220.98) | ($173.08) | $2,002.75 | $ 4,272.34 | 27.7% |
HP | $3,163.63 | $246.90 | $42.53 | $476.81 | $193.71 | $ 4,123.58 | 26.8% |
Gateway | $1,858.67 | $149.92 | ($525.99) | $482.43 | $46.72 | $ 2,011.75 | 13.1% |
Sony | ($42.60) | $492.69 | $102.24 | $819.03 | $0.00 | $ 1,371.36 | 8.9% |
IBM | ($1,079.34) | $54.96 | ($206.32) | $970.38 | $646.49 | $ 386.17 | 2.5% |
Fujitsu | $0.00 | $34.24 | $0.00 | $19.04 | $0.00 | $ 53.28 | 0.3% |
| $0.00 | $0.00 | $0.00 | ($364.11) | $2.18 | $ (361.93) | -2.4% |
Toshiba | ($281.21) | ($268.01) | $73.53 | ($1,032.00) | $34.97 | $ (1,472.72) | -9.6% |
NEC | ($3,308.49) | ($14.11) | ($1,068.95) | ($603.99) | ($50.08) | $ (5,045.62) | -32.8% |
Total Market | $1,963.62 | $1,813.94 | $3,031.13 | $2,964.27 | $5,624.61 | $ 15,397.57 | 100.0% |
Sample Firms | $3,507.15 | $1,877.48 | $5,728.30 | $3,950.49 | $4,764.94 | $ 19,828.36 | 128.8% |
DT – Desktop; LT – Laptop (Portable)
The table gives you the values for each vendor the difference between its revenues in 2000 and 1996
The total market row gives you the growth in the market for each segment between 1996 and 2000
i.e. the total market grew by approximately $15 billion in the 5 year period 1996 to 2000
The %Grabbed column indicates the percentage of the total market grabbed by each firm in those 5 years
Dell and Gateway were the only two major competitors who were solely direct. Dell had an outside sales force that courted the large and mid-size businesses; it’s primary markets. All consumer and small business sales were handled by internal phone sales and also, after 1995, the Internet. The second half of the 1990’s witnessed the triumph of the direct model. By 2001, Dell was selling more than $50 million per day through its website (more than 50% of its $31 billion per year) and delivering more than 50% of technical support over the web. Dell held less than 5 days worth of inventory. It received payment from customers before it paid its suppliers, providing a negative cash conversion cycle of 8 days and helping to give it a 12% cost advantage over rivals. Since 1999 Dell also had held the #1 rank in customer satisfaction as it aggressively used the information it captured through the direct-customer contact model to segment its customer base and closely align its products, technical resources, support and service to those segments. Dell displaced Compaq to become the #1 US PC vendor in 2001.
dell inc. are very consious about their customer needs. they try to not lose their loyal customer. my family are dell customer and we are satisfy about their services .
Wednesday, June 15, 2011
dell computer inc. global vision
Its the way we do business. It's the way we interact with the
community. It's the way we interpret the world us around -- our
customers needs, the future of technology, and the global businessclimate. Whatever changes the future may bring our vision -- DellVision -- will be our guiding force.
So Dell needs full customer satisfaction. In order to become the
most successful computer company, they need the newest
technology and loyal customers.
most successful computer company, they need the newest
technology and loyal customers.
. It’s the way we interact with the community. It’s the way we
interpret the world around us– our customers needs, the future of
technology, and the global business climate. Whatever changes the
future may bring our vision — Dell Vision — will be our guiding
- force.
So Dell needs full customer satisfaction. In order to become the
most successful computer company, they need the newest
technology and loyal customers
Sunday, June 12, 2011
dell marketing environment
Listen. Learn. Deliver. That's what we're about.
For more than 26 years, Dell has empowered countries, communities, customers and people everywhere to use technology to realize their dreams. Customers trust us to deliver technology solutions that help them do and achieve more, whether they’re at home, work, school or anywhere in their world.2.2.1. Reliability, Service and Support:
The company has differentiate its offerings from competitors by offering fast, reliable, and trustworthy customer services across the world that are available within 48 hours after lodging a complaint or problem with computer. This has helped Dell to enjoy unique value in the eyes of customer as no other company provides such type of services.
these really helps dell customer to find solution when they are in problem. i like their this friendly marketing environment.
Wednesday, June 8, 2011
DELL COMPUTER INC. Ethics and Social Responsibilities.
Each year we strive to be better — to create technology that can change the world, and technology that makes a positive difference in the lives of our customers. It’s our commitment to being a responsible corporation. In fiscal year 2010, we continued our corporate responsibility work to guide us in better understanding — and balancing — our needs as a business and our role in improving the lives of those around

A greener world is important to our customers. That means it’s important to Dell. Green is not about limitation or sacrifice; it’s about possibility. We strive to make sure that people and companies don’t have to compromise on cost, performance or reliability. That’s why we are finding ways to help make “being green” easy.
Dell wants to help our customers do and achieve more. That’s why we are committed to being a place where our team members can combine their varied experiences and creativity to achieve innovative solutions for a diverse customer marketplace.
A greener world is important to our customers. That means it’s important to Dell. Green is not about limitation or sacrifice; it’s about possibility. We strive to make sure that people and companies don’t have to compromise on cost, performance or reliability. That’s why we are finding ways to help make “being green” easy.
Dell wants to help our customers do and achieve more. That’s why we are committed to being a place where our team members can combine their varied experiences and creativity to achieve innovative solutions for a diverse customer marketplace.
DELL COMPUTER INC strategic planning for competitive advantage.
With technology growing at amazing paces, many of the computer companies have fallen behind and even out of the industry since the development of the computer. Only the strongest companies have been able to be profitable and efficient. Dell Inc. is one of the few corporations to be able to remain at the top of the market.
Dell began as the vision of Michael Dell. The company began in 1984 with a simple business concept to build computers to order and to sell directly to customers. Dell has a history of achieving double-digit increases in annual sales. To maintain this growth, Dell is faced with many challenges in maintaining its distinctive capabilities and using objective analysis to ascertain its strengths, weaknesses, opportunities, and threats.
Dell's vision is to work closely with our development partners to provide 100% perceived availability to the application environment. "Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of: highest quality, leading technology, competitive pricing, financial stability, and individual and company accountability. From the nine essential components of a mission statement, Dells mission statement includes: products or services, markets, technology, and concern for survival, growth, and profitability. The most important value to Dell is to satisfy their customers and the second most important value is to be profitable. Dell has three distinctive capabilities which consist of: 1) selling products directly to consumers which eliminates the markups of resellers 2) build products as they are order, which eliminates overstocked products and 3) having the ability to respond quickly to customers who experience problems with their products.
With the power of direct and Dell's team of talented people, we are able to provide customers with superb value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use
A strategic plan aligns an organization's goals, values and activities, to create a sustainable competitive advantage. It focuses on the long-range goals of the business and defines how the goals will be reached. Strategic plans include the definition of missions, visions and objectives, which provide the basic direction and
focus of the organization.
Key drivers in developing a strategic plan.
To summarize, based on the above trends in the industry, the next generation laptop platform that must carry Dells laptop business in the future should have the following features: It should be cheaper, smaller, faster, and lighter, with a better overall performance. The strategic plan of Dell Company would be focus in the above discussion.
Monday, June 6, 2011
Brief history of DELL COMPUTER INC.
Based in Round rock, Texas, Dell is one of the largest company employing more than a lakh people worldwide. It was founded by Michael Dell, in 1984, when he was still a student at the University of Texas at Austin. it was named as PC's Limited . He was one of the first entrepreneurs of the belief that by selling personal computer-systems directly to customers, their needs can be better understood and most effective computing solutions can be provided.
In 1985, the company produced its first indigenous design - the "Turbo PC". PC's Limited advertised the systems in national computer-magazines for sale directly to consumers, and custom-assembled each ordered unit according to a selection of options. Buyers were offered lower retail prices and greater convenience. Though it was not the first company to use this model, PC's Limited became one of the first to succeed with it. The company grossed more than $73 million in its first year.
The company changed its name to "Dell Computer Corporation" in 1988. Customer became the driving force for the company. In 1996, Dell became one of the pioneers of the internet sales, earning close to $1 million per day. As of 2000, sales had reached close to $50 million per day.
Dell products are now also sold in Wal-Mart, Staples, and other retail outlets.

In 1985, the company produced its first indigenous design - the "Turbo PC". PC's Limited advertised the systems in national computer-magazines for sale directly to consumers, and custom-assembled each ordered unit according to a selection of options. Buyers were offered lower retail prices and greater convenience. Though it was not the first company to use this model, PC's Limited became one of the first to succeed with it. The company grossed more than $73 million in its first year.
The company changed its name to "Dell Computer Corporation" in 1988. Customer became the driving force for the company. In 1996, Dell became one of the pioneers of the internet sales, earning close to $1 million per day. As of 2000, sales had reached close to $50 million per day.
Dell products are now also sold in Wal-Mart, Staples, and other retail outlets.
Dell Mission Statement:
"Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of:
- Highest quality
- Leading technology
- Competitive pricing
- Individual and company accountability
- Best-in-class service and support
- Flexible customization capability
- Superior corporate citizenship
- Financial stability"
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