Purpose Of Significance Of The
Strategic Plan Marketing Essay
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Strategic Marketing Planning process
describe each organisational functional area. Thinking of Marketing Plan is an
action document which shows marketing implementation, evaluation and control.
Strategic Marketing plan focus on a specific element of the marketing mix, such
as products development plan, a promotion plan, distribution plan or a pricing
plan. It is also important to realize that no matter what type of marketing
plan one is developing, a marketing plan is not the same as a business plan.
In the cold, real world of business,
marketers would have to admit that it is the competition which keeps them on
their toes. Everyone knows that marketing is about finding out what the
customer wants and then providing it, but it is the competition that stops a
company from being complacent. It is because of this that planning has become
so sophisticated and is seen as the life-blood of the organisation. NO PLANNING
- NO FUTURE!
Marketing
Strategic Plan of DELL Computers :
The Dell marketing strategy was
simple and basic. Cut out the middleman and sell the product cheaper. Offer
great customer service by giving the customer exactly what they want.
There you have it. That is how Dell
is about to become the largest company in the world selling computers. They did
it by building computers made to order for the customer. By handling all the
sales (retail) themselves. If you want a Dell computer you can only get it from
Dell. Their marketing strategy allowed them to pass the savings onto the
customer
They do exactly what everybody else
has to do.
Targeting: They have to know who is
buying computers and where online these people are going
Tracking: They have to track
advertising results and make adjustments
Relationships: They build
relationships with the people they advertise with .
The internet is a powerful force in
the business world for selling products. What makes it so powerful. Dell's
makes their commitment with customer value, to our team, to being direct, to
operating responsibly and, ultimately, to winning continues to differentiate us
from other companies.
Dell
Marketing Goals and Objectives:
The first definition states that
marketing consists of the strategies and tactics used to identify, create and
maintain satisfying relationships with customers that result in value for both
the customer and the marketer.
Marketing is essential for
organizational success. Â I believe that marketing is needed to inform
consumers of the products and the prices that an organization is offering.
Â
Target
Market of Dell:
Identify the Target Market because
its gives u clear picture where you are and how to achieve it. Target Markets
are Student, Educators, Designers, Scientist, Business people and Lay
customers. The system which we want to introduce it must be simple and easy.
Notebook is a small portable computer
compared to a desktop. That's where laptops gain prominence. Computer industry
have a dynamic business and high demand in personal users in home and business.
Its gives advantage for the business.
Situation
Analysis:
It's a Dell Product, In the Product
we determine Target Market here and analysing product features. The best way to
improve the Quality Product and for getting maximum success with this products.
Implementation of new goals and objectives that will help to create even more
success for the Dell Product.
Customer
Environment:
The target market of the iBook will
be segmented into three major categories.
1. Student
2. Professionals
3. Graphic Designers
External
Environment:
External factor are competitive
forces, Economic growth and organisation stability, Political and legal and
regulatory factor, technology change and culture trends. These all factor are
effective on an organisation when they want to launch any new product.
Some are external Environments are
Competitors
Customers
Governments
Local authorities
Suppliers, etc.
Internal
Environment:
Internal Environments are
Employees
Current performance levels
Finance
Production capabilities
Shareholders
Technology used
Competitive
Forces:
There are four major factors which
are Competitive
Product Brand
Total Budget
Product Class
4. Generic
Marketing
Strategy of Dell :
Marketing
Mix Element:
We try to attract the customer for
Apple and the strategy will be grow in Marketing Mix . It should be clear and
strategic combination of advertising, rebates, pricing strategies, new
offering, and innovative distribution.
In the process of planning,
promotion, and distribution of goods, ideas, and services to create exchanges
that satisfy individual and organizational goals, The second definition states
that marketing is the process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, services, organizations,
and events to create and maintain relationships that will satisfy individual
and organizational objectives.
Product:
Computer is a need satisfaction
offering of an organization. New product marketing strategy must follow a few
basic steps. you want to have a Dell marketing strategy or have some great new
product to market here is what I recommend. the absolute best in Internet
Marketing Strategy then you want proven, market tested knowledge telling you
what works.
Pricing:
Pricing is a charge for
"something" of value. Computer have a big value at any stage of life.
Dell is currently the No. 2 computer maker worldwide, with 12 percent market
share. The short-term results of the price-cutting are apparent. Dell's opening
gambit in price began last year.
"Toward
the end of the year, I saw Dell step forward
to
really get aggressive in pricing,"
Analyst Toni Duboise said.
"Dell
is by far the first to pass on the benefits of lower component prices,
and
that is important in this heightened state of competition"
Distribution:
Companies have their channel members,
in the marketers some level of channel partnership is needed. e.g. marketers
successful without utilizing resellers to sell their product perhaps they still
need assistance with certain parts of the distribution process (e.g., Dell uses
parcel post shippers such as FedEx and UPS).
In Dell's have their transportation
system to be in order to service Dell's customer base.
Promotions:
Communicating information between
seller and potential buyer and/ or others in the channel in order to influence
attitude and behaviour.
This was an attempt to get market
consumers that needed personal computers.
When Dell launched their ads they
were reaching more for the consumers that were tired of getting poor customer
service and needed a dependable personal computer.
SWOT Analysis:
(http://www.oppapers.com/essays/Promotion-Strategy/149446)
Strengths:
Dell is the World's largest PC maker.
Profits for the 3 months to July 2005 were in excess of $1 billion US,
representing a growth of around 28%. For the last couple of years it has held
its position as market leader (it took it from rivals Hewlett-Packard). The
Dell brand is one of the best known and renowned computer brands in the World.
Dell cuts out the retailer and
supplies directly to the customers. So a customer selects a generic PC model,
and then adds items and upgrades until the PC is kitted out to the customer's
own specification. Components are made by suppliers, never by Dell. PC's are
assembled using relatively cheap labour. You can even keep track of your
delivery by contacting customer services, based in India. The finished goods
are then dropped off with the customer by courier. Dell has total command of
the supply chain.
Weaknesses
:
The company has such a huge range of
products and components from many suppliers from a plethora of countries, that
there is the occasional product recall that can cause Dell some embarrassment. In
2004 Dell had to recall 4.4 million laptop adapters because of a fear that they
could overheat, causing electric shocks or fires. Dell is a computer maker, not
a compute manufacturer.
Opportunities:
Dell remained the company's Chairman.
Despite founder Dell's massive success, new blood and a change in management
thinking could lead the company into a new, even more profitable period.
Dell is making and selling low-cost,
low-price computers to PC retailers in the United States. The PC's are
unbranded and should not be recognized as being Dell when the consumer makes a
purchase. Rebranding and rebranding for retailers, although a departure for
Dell, gives the company new market segments to attack with the associated
marketing Cost.
Threats:
The single biggest problem for Dell
is the competitive rivalry that exists in the PC market globally. As with all
profitable brands, retaliation from competitors and new entrants to the market
pose potential threats. Dell sources from Far Eastern nations where labour costs
remain low, but there is nothing stopping competitors doing the same - even
sourcing the same or similar components from the same or similar suppliers.
Remember, Dell is a PC maker, not a PC manufacturer.
Dell, being global in its marketing
and operations, is exposed to fluctuations in the World currency markets.
Although it is a very lean organization, orders do have to be placed some time
ahead due to their size or value. Changes in exchange rates could leave the
company exposed to potential loses in parts of its supply chain.
(http://www.marketingteacher.com/SWOT/dell_swot.htm)
Porter's
five forces model
The bargaining power of suppliers.
The bargaining power of buyers.
The threat of potential new entrants.
The threat of substitutes.
The extent of competitive rivalry.
The
bargaining power of suppliers:
Dell computer known for low cost and
best quality computer, laptop and server manufacturer in the industry. The key
of dell success is maintaining good relationship with the supplier of computer
hardware and software. Suppliers play have an important role in production of
good and services, better the raw material better the final product. These
attributes in the industry gives power to the supplier to enforce term and
conditions on manufacturers and charge high cost of raw material.
The
bargaining power of buyers:
Consumers are the final user of the
products, performance of the companies totally depend upon the consumers. Dell
Bargaining power of consumers is more especially when they are huge in number
and consumers purchase in large quantity. Rivals firms offer discounts,
warranty and services to switch the consumer from one brand to another in same
industry.
The bargaining power of consumers is
also more when products are undifferentiated and widely available. In this case
consumer can ask for more discounts, extended warranty and services. As the
satisfaction level of consumer goes up more the intensity level of competition
increases. Firms should monitor the competitors strategies and also take care of
the consumer like and dislike by maintaining good relation by implementing CRM
processes in the Dell company.
The
threat of potential new entrants:
The new firms sometimes enter
industries with best quality of the products and substantial marketing resources.
The strategist's job, therefore, is to identify potential new firms entering
the market, to monitor the new rival firms strategies to counterattack as
needed and to capitalize on existing strengths and opportunities.
The
threat of substitutes :
Companies in other industry offer
products with similar features and functionality or even better act as
substitute for the products. For Instance, the producers of eyeglasses and
contact lenses are facing mounting competitive pressures from growing consumer
interest in laser surgery.
The firm face intense competition by
substitute products ,substitute product is better in quality and functionality,
end user grow more comfortable with using substitutes. The competitive strength
can be determined by
sales pattern, producers adding
capacity for more production, rise in profits.
The
extent of competitive rivalry:
Dell.com offer computers and laptops
of high quality at low prices as compared to the competitors . Rivalry among
competing firms is the most powerful of the five competitive forces. The
ongoing war between firms competing in the same industry for gaining customer
share to increase revenues and profits. The competition is more intense if firm
pursue strategies that gives competitive advantage over the strategies pursued
by rivals. charge higher prices and achieve higher profits.
BCG
Assessment :
Introduction
:
BCG Growth-Share Matrix is relative
market share and market growth. They often are pointers to healthiness of a
business (Kotler 2003; McDonald 2003).
In other words, products with greater
market share or within a fast growing market are expected to wield relatively
greater profit margins. The reverse is also true. Let's look at the following
components of the model:
Market
Growth
Market growth axis, correlates with
the product life cycle paradigm, and predicates the cash requirement a product
needs relative to the growth of that market. A fast growing market is generally
considered attractive, and pulls a lot of organisation's resources in an effort
to increase gains. A case in point is the technological market widely consider
by experts as a fast growing market, and tends to attract a lot of competition.
Therefore, a product life cycle and its associated market play a key role in
decision-making.
Cash
Cows
These products are said to have high
profitability, and require low investment for the fact that they are market
leaders in a low-growth market. The cash cows fund their own growth. They pay
the corporate dividend. They pay the corporate overhead.
They pay the corporate interest
charges. They supply the funds for R&D. They supply the investment resource
for other products. They justify the debt capacity for the whole company.
Stars
Stars are leaders in high growth
markets. They tend to/should generate large amounts of cash but also use a lot
of cash because of growth market conditions. For example, Apple Computer has a
large share in the rapidly growing market for portable digital music players.
Question
Marks
Question Marks have not achieved a
dominant market position, and hence do not generate much cash. They tend to use
a lot of cash because of growth market conditions. Consider Hewlett-Packard's
small share of the digital camera market, However, this is a rapidly growing
market.
Dogs
Dogs often have little future and are
big cash drainers on the company as they generate very little cash by virtue of
their low market share in a highly low growth market.
Conclusion:
Dell always give latest technology in
the computer industry in the low price , and they provide best technology at
customer price in the market or gives a big challenge to their competitors in
the different colour of laptops.
The product is always be very
user-friendly and have an excellent flow-up. It also give to the customers
technical support and customer service. Specially to the customers, Designers,
Business user, Professionals, and too many other users. It easy to available
every Computer Retail Sealers Shops so it is more common and demand they
capture a huge market in computers industries.
Finally I can say this the ethnology
of the computers provide us vales of living standards.
Task 2
Marketing
Environment:
Marketing Manager must analyses the
customer needs and chose the marketing strategy variables within the framework
of the marketing environment and how it is change?
Marketing environment can be
classified into two categories.
The direct marketing environment
which include customer, the company and the competitor and SOWT Analysis.
The external market environment which
is broader and consist of the: Pest Analysis.
Effect
of the Marketing Environment on Dell :
SWOT is analysing of your company
internally and externally. By focusing on the key factors affecting your
business, now and in the future, a SWOT analysis provides a clear basis for
examining your business performance and prospects. This briefing outlines is
Best-in-class service and support · Flexible customization capability ·
Superior corporate citizenship · Financial stability Objectives: · To achieve
market share of 14% by year 2002 worldwide. · Continue expansion of server and
storage products. · Continue to maintain low costs - decrease each year by 1%.
· Establish global brand recognition.
SWOT Analysis: Strengths. No
inventory buildup · Industry leading growth · Cost efficiency · Direct to
customer business model - latest technology · Customization · Internet sales
leadership - $5M worth of products everyday Weaknesses . Network-internet,
intranet and extranet · Strong potential market in Europe, China and India ·
Low costs and advanced technology· Growth in business, education and
government markets Threats ·
Technology -- Dell introduces the
latest relevant technology much more quickly than companies with slow-moving
indirect distribution channels. Dell turns over inventory every six days on
average, keeping related costs low. Superior Shareholder Value -- During the
last four quarters, the value of Dell common stock nearly doubled.
1.
Strengths:
Dell's controls its supply chain
which makes it easier to build a computer to a customer's specifications. Dells
dynamic organizational structure allows it to achieve diversified targets. By
allowing the components to directly become integrated in the manufacturing
process of Dell, it has been able to reduce middle channel costs. These
components, such as OEMs, CMs, logistics, system integrators, repair and
support companies, component suppliers, third party HW and SW suppliers and
distributors have become each of the company's manufacturing processes so that
ease of provision to the customers is possible. This reverse organizational
process structure differ from other industry leaders.
2.Weakness
:
Dell is at the mercy of its many
suppliers because it is a computer maker not a manufacturer. Within the
strengths lies Dell's weaknesses. Much of its strategies have to rely on the
capacity and capability of these manufacturing components. Continuous updates
and process improvement is required so that they can keep up with Dell's pace
of development.
3.Opportunities:
Dell has the opportunity to sell
directly to computer retailers. Having established an integrative and virtual
network, Dell has been able to achieve the high level of corporate outcome that
challenged most of the industry leaders. The established value web corporate
model have also allow Dell to have global wide access to customers and market.
Reaching any niche market in any continent is therefore not a problem for
Dell's marketers.
4.Threats:
Changes in world currencies can
affect production costs. As the costs of supplies increase so must the price of
the Computers. Due to the integration of components in Dell's organization
structure, Dell compete not only compete at the final product level but also at
the suppliers level. Third party software and software for example have great
competition for price and product categorization which could eventually affect
Dell's position in the market.
PEST
Analysis Introduction :
In analyzing the macro-environment,
it is important to identify the factors that might in turn affect a number of
vital variables that are likely to influence the organization's supply and
demand levels and its costs (Kotter and Schlesinger, 1991; Johnson and Scholes,
1993). The "radical and ongoing changes occurring in society create an uncertain
environment and have an impact on the function of the whole organization"
(Tsiakkiros, 2002). A number of checklists have been developed as ways of
cataloguing the vast number of possible issues that might affect an industry. A
PEST analysis is one of them that is merely a framework that categorizes
environmental influences as political, economic, social and technological
forces. The analysis examines the impact of each of these factors (and their
interplay with each other) on the business. The results can then be used to
take advantage of opportunities and to make contingency plans for threats when
preparing business and strategic plans (Byars, 1991; Cooper, 2000). Kotler
(1998) claims that PEST analysis is a useful strategic tool for understanding
market growth or decline, business position, potential and direction for
operations.
Political
politics base on government
regulations and legal issues determining the conditions under which companies
have to operate. In this field, the computer industry has to face certain
restraints. Problems can arise in countries where political stability is not
guaranteed, no matter whether companies operate production facilities or if
they do business with that country through exports. Such policies often hinder
foreign companies from entering into these markets. The only possibility to do
business in those countries is to establish partnerships with local companies,
where they are additionally forced to accept minority shares and to provide
money and technological know-how. However, the computer industry sees great
potential in those countries which loose their restrictions.4 This is
especially true for China which has opened for many industries since its
accession to the WTO in 2001.
Economic
:
In the computer industry expects says
the growth will be approximately ten percent over from the next years. This
growth is influenced by the economic situation in a specific country, having an
impact on the purchasing power of potential customers. And changing inflation
the profitability of a company.
Social
:
The national demand for computers is
dependent on the educational level prevailing in a specific country. The higher
the educational standard, the higher is the demand. Furthermore, computers get
more and more involved in daily life. Today, children already get familiar with
the use of this.
Technology:
Technology is the one of the major
part of computer industry.management (Capron and Glazer, 1987; Johnson and
Scholes, 1993; Jan, 2002), as part of the organization and the industry part of
the model as it is used for the creation of competitive advantage. However,
technology external to the industry can also be captures and used, and this
again can be influenced by government support and encouragement and those firms
which might be affected in this way should be alert to the possibility.
Equally, new technology could provide a useful input, in both manufacturing and
service industries, but in turn its purchase will require funding and possibly
employee training before it can be used.
Technology is vital for competitive
advantage, and is a major driver of globalization. Consider the following
points:
Does technology allow for products
and services to be made more cheaply and to a better standard of quality.
Do make innovative products and
services such as Internet banking, new generation mobile telephones.
How is distribution changed by new
technologies e.g. books via the
Internet, flight tickets, auctions.
Does technology offer companies a new
way to communicate with consumers e.g. banners, Customer Relationship
Management (CRM).
Dell
with in the three years:
Dell disclosed that in 2010 part of
the strategic plan to increase investment in China this year February 26 news
recently, Dell's global consumer business, vice president of sales and
marketing Michael, part of the strategic plan, including increasing investment
in the Chinese market and introduce more new products, strong expansion in
China's 4-6 cities, and will launch a Tablet PC but DELL LATITUDE D610 SERIES
battery to release e-readers.
The future, Dell will launch smart
phones, navigation FUJITSU FPCBP80 battery, tablet computers and a range of
products to satisfy users of the Internet and mobile performance requirements.
But Dell will not be singled out for e-books, but will launch the device, the
integration of e-book functionality. If Dell launched a five-inch tablet PCs,
it will integrate e-books.
Dell's sales channels in China,
Dell's vice president of global consumer business, general manager of Greater
China,
"Mr.
Yang Chao said that the current Dell channel construction has been developed
from scratch, entered the initial stage."
we've already got one powerhouse
lined up in support. According to PC World, Neeraj Srivastava, director of
technology policy at Dell, has stated that the company "intends to
integrate white space radios into future Dell products." As for what
"products" actually means? We could see the modules in anything from
laptops to notebooks to "any other devices that provide wireless network
access." Sadly, he wouldn't say when the technology would be added, but
we'll go out on a limb and suggest sometime after the impending digital TV
transition.
The other future invention is "a
family of tablets." the Mini 5 has some features that the iPad doesn't have,
namely a built-in camera and it can make phone calls. So much for the iPad
being an extra-large iPhone.
One point we can't compare yet is
price, as Dell hasn't specified any figures yet except that it will
be "competitive." Dell come up with some definite information
fast if they really want to stay competitive.
Dell always support the quality. Now
if I had a choice here's my desires in up coming three years Dells gives us :
At least 1 USB port
Wireless connection
2g or more memory.
At least an Atom processor.
80g harddrive or greater
Around 8.5"x11" or greater
Decent battery life (and
REPLACEABLE!)
I'm investigating screens too. It
seems to me, the screen would wear out quickly. But I've heard that some people
who has earlier tablets, have had no problems of wear-outs (Think of Wal-mart's
CC/Debit card scanners with the write-on screen)
I hope Dell is developed to take
advantage of these special computers.
