While competitors sold pre-configured and assembled PCs in retail stores, Dell offered something new and attractive to the customers by providing the option to pick desirable features and that too at a discounted price.
Indirect In this channel, a company will use an intermediary to sell a product to the consumer. Dell is known for constant innovation and providing quality products to its customers.
This is especially so because the internet allows sellers and buyers to interact in real time. Cars may be an example of this type of strategy. Promotion Management — More targeted and relevant promotional activities may be possible with more clear and consistent marketing messages.
Product, price and promotion may have the following impacts on the distribution strategy: What are competitors doing? It also offers bonus products and waiving off shipping charges for certain products. Its product awareness was created as it reached mass public in a cost effective way.
There are Dell exclusive stores in major cities across India that allows customers to view the products and purchase. Another important contributing factor was the unique distribution strategy employed by the company. Another useful aspect of this model was the information available regarding customers and their needs and requirements.
Dell became a strong direct seller, by using mail-order systems before the spread of the internet. Some key questions to ask in finalizing these three areas include: Payment Options — Retailers may create payment plans and options for customers allowing easier purchases.
It distributes brochure to public through newspapers, e. Retailers will then stock the goods and sell them to the ultimate end user at a profit.
This type of channel may help reach more consumers but there may be the danger of channel conflict. Pricing needs to stay consistent, so the company will have to reduce its profit margin to give a cut to the intermediary. These intermediaries are third party companies that act as wholesalers, transporters, retailers and provide warehouse facilities.
The pricing also varies based on the hardware chosen and the operating system version selected. A distributor however, will only carry products from a single brand or company. Disposable goods or those of everyday use do not require too many special channels. There may be a need to foster stronger relationships with a retailer that sells in a knowledgeable and discerning urban market with high competition.
As a result of this, sales went from 6 million dollars in to 70 million in Dual Distribution In this type of channel, a company may use a combination of direct and indirect selling.
A delicate or perishable product will need special arrangements while sturdy or durable products will not require such delicate handling. Intensive Distribution — This strategy may be used to distribute lower prices products that may be impulse purchases.
Types of Distribution Channels There are four main types of distribution channels.
What is the access available to the right distribution channels? Where do users seek to purchase the product? Selective Distribution — In this strategy, a product may be sold at a selective number or outlets.
Their customers are usually another intermediary such as a retailer. Analyze the customer and understand their needs Discuss and finalize channel objectives Work out distribution tasks and processes.
In turn, this would mean a greater share of the market and increased revenues and profits. Share 43 Shares The last element of the marketing mix is the place. In addition, a newer method is the internet which itself is a marketplace now.Dell's Marketing Strategy. 4Ps, Just in time, Value chain.
Viewing Dell Inc from the perspective of marketing 4Ps in terms of price, one conclusion can be drawn, buying Dell’s 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. Marketing mix of Dell analysis.
Print Reference this. Disclaimer: There are various criticisms to the four Ps approach of the marketing mix.
In the case of the Dell consumer business, a 7Ps approach (Booms and Bitner), as People or services and Process also play a vital role in the company’s marketing mix.
as People or services and. What are the 'Four Ps' The four Ps are the categories involved in the marketing of a good or service, and they include product, price, place and promotion. Often referred to. Dell is one of the leading Consumer durable brand. The marketing mix of dell talks about the way in which dell has improvised to gain a competitive mi-centre.com designs, develops, manufactures, markets, sells, and supports a wide range of products that in many cases are customized to individual customer requirements.
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