Purpose Of Significance Of The Strategic Plan Marketing Essay

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.   I believe that marketing is needed to inform consumers of the products and the prices that an organization is offering.  

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.

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