Let us start the Dell Marketing Mix: Dell is known for constant innovation and providing quality products to its customers.
Also called placement or distribution, this is the process and methods used to bring the product or service to the consumer. In other words, it is how your product is bought and where it is bought. This movement could be through a combination of intermediaries such as distributors, wholesalers and retailers.
In addition, a newer method is the internet which itself is a marketplace now. Through the use of the right place, a company can increase sales and maintain these over a longer period of time.
In turn, this would mean a greater share of the market and increased revenues and profits. Correct placement is a vital activity that is focused on reaching the right target audience at the right time.
It focuses on where the business is located, where the target market is placed, how best to connect these two, how to store goods in the interim and how to eventually transport them.
A distribution channel can be defined as the activities and processes required to move a product from the producer to the consumer. Also included in the channel are the intermediaries that are involved in this movement in any capacity.
These intermediaries are third party companies that act as wholesalers, transporters, retailers and provide warehouse facilities. Types of Distribution Channels There are four main types of distribution channels.
Direct In this channel, the manufacturer directly provides the product to the consumer. In this instance, the business may own all elements of its distribution channel or sell through a specific retail location. Internet sales and one on one meetings are also ways to sell directly to the consumer.
One benefit of this method is that the company has complete control over the product, its image at all stages and the user experience. Indirect In this channel, a company will use an intermediary to sell a product to the consumer.
The company may sell to a wholesaler who further distributes to retail outlets. This may raise product costs since each intermediary will get their percentage of the profits. This channel may become necessary for large producers who sell through hundreds of small retailers.
Dual Distribution In this type of channel, a company may use a combination of direct and indirect selling. The product may be sold directly to a consumer, while in other cases it may be sold through intermediaries.
This type of channel may help reach more consumers but there may be the danger of channel conflict. The user experience may vary and an inconsistent image for the product and a related service may begin to take hold.
Reverse Channels The last, most non tradition channel allows for the consumer to send a product to the producer. This reverse flow is what distinguishes this method from the others. An example of this is when a consumer recycles and makes money from this activity. Types of Intermediaries Distribution channel intermediaries are middlemen who play a crucial role in the distribution process.
These middlemen facilitate the distribution process through their experience and expertise. There are four main types of intermediaries: Agents The agent is an independent entity who acts as an extension of the producer by representing them to the user.
An agent never actually gains ownership of the product and usually make money from commissions and fees paid for their services. Wholesalers Wholesalers are also independent entities.
But they actually purchase goods from a producer in bulk and store them in warehouses. These goods are then resold in smaller amounts at a profit.
Wholesalers seldom sell directly to an end user. Their customers are usually another intermediary such as a retailer.
Distributors Similar to wholesalers, distributors differ in one regard. A wholesaler may carry a variety of competition brands and product types. A distributor however, will only carry products from a single brand or company. A distributor may have a close relationship with the producer.
Retailers Wholesalers and distributors will sell the products that they have acquired to the retailer at a profit. Retailers will then stock the goods and sell them to the ultimate end user at a profit.Dell's Marketing Strategy.
4Ps, Just in time, Value chain.
Dell 4p's of the Marketing Mix COMPANY BACKGROUND [pic] [pic] Introduction of Dell Inc.
Dell Inc. is a multinational technology corporation that develops, manufactures, sells, and supports personal computer and other computer related-products. Dell Inc. based in Round Rock, Texas. services, Dell's team have always been careful in sustaining its marketing strategy of providing standard-based computing solutions (Official Website ).
Today Dell is the third largest computer manufacturer in the world. The marketing mix is most commonly executed through the 4 P’s of marketing: Price, Product, Promotion, and Place.
These have been extensively added to and expanded through additional P’s and even a 4C concept. Dell’s initial advertising strategy was around the products it sold, its features and predominantly the price, quite like its overall marketing strategy.
Perhaps, it suited the market demand then, which wanted functional, sufficiently feature rich but lower cost PCs.