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Marketing mix of dell and
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Marketing mix of dell and apple
1. PROJECT REPORT ON MARKETING MIX
2. INTRODUCTION OF MARKETING MIX Marketing mix is a business
tool used in marketing and by marketing professionals. It is a set of
actions, tactics that a company uses to promote its brand or product
in the market. The term Marketing Mix was developed by Neil
Borden who first started using the phrase in 1949. “An executive is a
mixer of ingredients, who sometimes follows a recipe as he goes
along, sometimes adapts a recipe to the ingredients immediately
available, and sometimes experiments with or invents ingredients
no one else has tried." Definitions: According to Philip Kotler , “ A
marketing mix is the mixture of controllable marketing variables
that the firm uses to pursue the sought level of sales in the target
market.” According to Neil H. Borden,” The marketing mix is the set
of marketing tools that the firm uses to pursue its marketing
objectives in the target market.”
3. TARGET MARKET OF DELL Dell Currently Target Two Markets:
Large To Mid-size Business: 1. 36 to 50 year old 2. Upper Middle To
Lower Class Consumers, students, small home o!ice: 1. 18to 35
years old 2. Middle class
4. TYPES OF MARKETING MIX
5. MARKETING MIX OF DELL AND APPLE
6. Dell first logo from 1984 to 1989 Dell traces its origins to 1984,
when Michael Dell created PC's Limited while a student of the
University of Texas at Austin. The dorm-room headquartered
company sold IBM PC- compatible computers built from stock
components. Dell dropped out of school to focus full- time on his
fledgling business, a"er getting about $300,000 in expansion-capital
from his family. In 1985, the company produced the first computer of
its own design, the Turbo PC, which sold for $795. PC's Limited
advertised its systems in national computer magazines for sale
directly to consumers and custom assembled each ordered unit
according to a selection of options. The company grossed more than
$73 million in its first year of operation.
7. COMPANY BACKGROUND Name Industries served Geographic
areas served Headquarters Current CEO Revenue Profit Employees
Main Competitors Dell Inc. Computer hardware, Computer so"ware,
IT consulting, IT services Worldwide U.S. Michael Dell $ 63.07 billion
(2012) $ 3.49 billion (2012) 110,000 Apple Inc., Samsung Electronic
Co., Ltd., Lenovo Group Limited, Hewlett- Packard Company, Sony
Corporation, Fujitsu Limited and many others.
8. Vision statement : It’s the way we do business. It’s the way we
interact with community. It’s the way we interpret the world around
us- our customer 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.
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 . Financial
stability
9. MARKETING MIX OF DELL Product: Dell believes that, ‘Marketing
is not about providing products or services, it is essentially about
providing changing benefits to the changing needs and demands of
the customer’. Dell designs, develops, manufactures, markets, sells,
and supports a wide range of products that in many cases are
customized to individual customer requirements. A few examples of
products for individual and professional customers are Dell
Precision workstations, Dimension desktops, and Latitude
notebooks. Price: Pricing strategies usually change as the product
passes through its life cycle, because there is constrains on the
company’s freedom to price a product at di!erent stage. The main
objective of Dell is to produce the low price and profitable PC for the
customers. For the above reason Dell’s product pricing reflects the
a!ordability of the local consumers. Because Dell products are so
customizable , the price is largely dependent on the options and
services added to the product. Dell is undercutting competitors in
price to rapidly gain market share.
10. Place: Place is also known as channel, distribution, or
intermediary. It is the mechanism through which goods and/or
services are moved from the manufacturer / service provider to the
user or consumer. Dell has been able to a!ect the location strategy
aspect of its marketing campaign. As Dell’s products are always
available at the nearest dealer’s customers develop trust for the
“local Dell” thereby achieving the objective of gaining their trust in
Dell products and services, and forming a large and diversified
consumer base. Promotion: Another one of the 4 P’s is promotion.
This includes all the tools available to the marketer for ‘marketing
communication’. Dell in the past have not concentrated on extensive
marketing campaigns but these revolutionaries in 1999 when Dell
changed its tactics by engaging in extensive marketing campaigns.
Dell markets its products primarily by advertising on television and
the Internet, advertising in a variety of print media, and mailing or
emailing a broad range of direct marketing publications, such as
promotional materials, catalogs, and customer newsletters. Dell has
recently started promoting its products through retailers like Best
Buy, Staples, Wal-Mart, GOME, and Carrefour.
11. People: People refer to all people directly or indirectly involved
in the consumption of a service, example employees or other
consumers, Physical Evidence: Physical evidence that related to the
environment in which the service is delivered, and the tangibles that
help to communicate and perform the service, and Process: Process
is the delivery and operating systems of procedures, mechanisms
and flow of activities which services are consumed.
12. HISTORY OF APPLE -1976: Steve jobs and Stephen Wozniak
found the Apple Computer Company. -1977: Apple introduced- first
personal computer designed for mass market. -1981: IBM introduces
the PC- Apple’s first form of competition. -1984: The original MAC is
put on market $2495. -1985: Steve jobs resigns from Apple. -1986 to
1990: Apple endures near financial crises as sales steadily decrease.
-1991: First power book ship- Apple becomes standard bearer in
portable market. -1997: Steve jobs return to Apple as interim CEO.
-1998: IMAC hits market $1299. -1999: Airport debuts on I- book- sets
o! an industry-wide wifi craze. -2000: Steve jobs become CEO. -2000:
Present- Apple continues to release new products and updates to
previous products. -2011: Steve jobs dies.
13. COMPANY BACKGROUND Name Industries served Geographic
areas served Headquarters Current CEO Revenue Profit Employees
Main Competitors Apple Inc. Computer hardware, Computer
so!ware, Consumer electronics, Digital distribution Worldwide U.S.
Tim Cook $ 156.508 billion (2012) $ 41.733 billion (2012) 72,800
(2012) Samsung Electronics Co., Ltd., Amazon.com, Inc.,
International Business Machines Corporation, Cisco Systems, Inc.,
Google Inc., Microso! Corporation, Dell Inc., LG Electronics, Lenovo
Group Limited, Hewlett-Packard Company, Sony Corporation and
many others.
14. Vision statement: Man is the creator of change in this world. As
such he should be above systems and structures, and not
subordinate to them. Mission statement: Apple is committed to
bringing the best personal computing, portable digital music and
mobile communication experience to students, educators, creative
professionals, businesses, government agencies, and consumers
through its innovative hardware, so!ware, peripherals, services, and
Internet o"erings. Apple designs Macs, the best personal computers
in the world, along with OS X, iWork and professional so!ware.
Apple leads the digital music revolution with its iPods and iTunes
online store. Apple has reinvented the mobile phones with its
revolutionary iPhone and App store, and is defining the future of
mobile media and computing devices with iPad
15. MARKETING MIX OF APPLE Product: • Portable Computers –
including Mac products such as Mac Book Pro, iMac, • Accessories –
including Magic Mouse, Keyboard, Led Cinema Display. • Wi - fi
Based Stations - including Airport Express, Airport Extreme, Time
Capsule. • Developer – including Developer Connection, Mac
Program, iPhone Program • iPod – including iPod Shu"le, iPod Nano
, iPod Classic. • iTunes – including movies, TV shows, audio books,
games Price: • Peripheral products – including Printers, Storage
devices, digital videos and cameras. • Apple is a premium brand
computer that does not attempt to compete on price. The company
has reduced prices a!er some initial product launches. It uses
skimming and premium pricing strategies. • The Apple iPad is priced
at a minimum of $499. • The Apple Mac Book costs $999. • The Apple
Mac Book Pro is priced at $1199. • The Apple Quick time Pro for
Windows costs $29.99 • Apples iPad pricing strategy includes the
flexibility to lower the prices if consumer response dictates such
action. This would be consistent with a similar $200 price cut on the
iPhone in 2007.
16. Place: Apple service providers are certified technicians, who
complete regular Apple training and assessments, and o!er repair
services, and exclusive access to genuine Apple parts. They are
located in Asia/Pacific, Africa, the Middle East Europe and Latin
America. Apple has over 200 retail stores worldwide including the
US, UK and Canada. Apple recently opened a new retail store in
Shanghai China. Promotion : Apple, Inc o!ers special discounts on
refurbished Macintosh computers, iPod Nanas, and the 8GB iPod
Touch. In each case a 1 year warranty is included on the all products.
Apple, Inc authorized Training Centers are located throughout the
U.S. each provides instruction in Mac systems, Mac OS X, and Apple’s
professional applications. A wide range of certification exams and
courses o!er innovative learning opportunities for IT and creative
professionals, educators, and service technicians—delivered
exclusively by Apple Certified Trainers. The Apple Consultants
Network website provides a search tool allowing visitors to locate
nearby certified Mac product consultants in the U.S, Canada, and a
number of international locations
17. People: People refer to all people directly or indirectly involved
in the consumption of a service, example employees or other
consumers like Stephen P. Jobs is the Chief Executive O!icer of the
Executive Board at Apple, Inc. Non Executive Board Directors include
William V. Campbell, Millard S. Drexler, Albert Gore and Author D.
Levinson. Key Senior Management team members include Timothy
D. Cook, (COO), Jonathan Ivey, (Industrial Design), Ronald B
Johnson (Retail), Robert Mansfield Mac Hardware Engineering),
Mark Paper master (Devices Hardware Engineering), Some certified
Apple service providers o!er additional services beyond repairs and
parts such as such as data transfer, data recovery, upgrade services,
and onsite deployment and installation. Physical Evidence: The
Apple logo has evolved from its original depiction of Sir Isaac
Newton under a tree to the memorable rainbow apple to the
present blue Apple with a bite taken out. Process: Apple converts
new customers and secures their loyalty through a corporate
emphasis on customer service. Apple seeks to attract its target
market through bold public relations events (such as the MacWord
Expo) as well as advertising imagery which borrows from
contemporary modern art. Apple has expanded its distribution
channels in recent years including the addition of WalMart
18. COMPETITORS ANALYSIS OF DELL The Competitors of dell
include Hewlett-Packard , Compaq ,Gateway AND Lenovo. An
indirect competitors is found in the form of a strengthening core of
vendors that provide parts to-do-it yourself users and small
business that build and upgrade custom computers for home users
and for small o!ice & home o!ice users.
19. COMPETITORS ANALYSIS OF APPLE In addition, apple
competes with Microso" in many areas of the personal computers
so"ware industry. Apple top three hardware competitors are dell,
Hewlett-Packard and IBM. Apple’s direct competitors are Google ,
Samsung , HP .
20. TARGET MARKET OF APPLE • College and University Students:
These students use Apple Inc. products such as iPad’s ,MacBook’s
,iPhone etc to quickly record notes. These notes are kept organized
in their devices. • Business People : Apple targeted the business
people also. All Apple devices such as iPad’s, iPhone’s, MacBook’s
etc, have a business quality that is very useful. In addition, sending
documents is easy and organized. • Teenagers: Teenagers are
considered one of Apple Inc. target markets. Teenagers use iPod’s
for many reasons. Some of the reasons are to socialize with friends,
listen to music. There are so many gaming apps that appeal to them.
• Adults:iPhone’s are useful to adults for their everyday needs such
as phone calls, map directions, internet connection, documents and
cameras.
21. SWOT ANALYSIS OF DELL • Growing demand for Smart phones
and tablets • Profit margin decline on hardware products • Slowing
growth rate of the laptops market • Intense competition • Expand
services and enterprise solutions businesses • Obtain more patents
through acquisitions • Strengthen their presence in emerging
markets • Commodity (computer hardware) products • Poor
customer services • Low investments in R&D • Weak patents portfolio
• Too few retail locations • Low di!erentiation • Brand name valued
at $7.5 billion • Product customization • Environmental record •
Competency in mergers and acquisitions • Direct selling business
model Strength weaknesses Threatsopportunities
22. SWOT ANALYSIS OF APPLE • Rapid technological change • 2013
tax increase • Rising pay levels • Android OS growth • Competitors
move in online music market • Price pressure from Samsung over
key • high demand • Emergence of the new provider of application
processors. • Obtaining patents through acquisitions • strong growth
of mobile advertising • growth of tablets & laptop • high price •
Incompatibility with di!erent OS. • Decreasing market share. •
Further changes in management • Defects of new products • Long
term gross margin decline. • Customer loyalty combined with
expanding closed ecosystem. • Apple is leading innovator in mobile
device technology. • Strong financial performance. • Brand
reputation • retail stores • Strong marketing and advertising teams
strength weaknesses threatsopportunities
23. COMPARISON OF DELL AND APPLE BASICS DELL APPLE
PRODUCT Dell o!ers customizable desktop and laptop computers
allowing pricing to be dependent upon components included Apple
on the other hand has multiple base choices and few upgrades
within these choices to expand their variety PRICING STRATEGIES
Dell desktops and laptops cost is less than the apple . Dell lowest
start o! at about 400- 500 dollars Apple desktops and laptops cost is
more than Dell .Apple’s lowest pricing laptop ranges from 900-1000
dollars
24. CONT’D.... Basics DELL APPLE MARKETING Dell was the first
computer to provide direct marketing to their customers . Dell
recently expanded their sales locations to include WALMART and
BESTBUY Apple handles the task of placing its products in the
market by o!ering those products worldwide. This is accomplished
through online stores, retail stores, direct sales, third parties.
Operating System Dell use windows operating system of Microso"
and also use open source Linux based operating system in
computers. Apple use its own proprietory Mac operating system in
computers .
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