Dell Computer Company E Marketing Strategy

Introduction

The objective of an e-Marketing Strategy is to create a sustainable competitive advantage and improve performance by capitalizing on technology and enterprise resources. The E-Marketing Strategy is essential to good business and a companies overall E-Business model. According to Wilder (1999), "Many companies are struggling with the most basic problem: What's the best E-business model? They're experimenting with different formulas. Some are incorporating E-business throughout the organization. Some are creating E-business subsidiaries, then spinning them off as separate online entities. Others are investing in or merging with Internet startups. Some are even moving their businesses entirely to the Web."

"E-marketing tools and processes allow firms to deliver on the marketing concept to individual consumers in ways that could rarely be achieved in the past. The Internet allows for mass customization, so individuals can now contact firms electronically over the Internet and receive responses tailored to their needs" ("What is E-Marketing?", 2003).

This paper will explore the e-Marketing strategy used by Dell Computer Company, evaluate the appropriateness of the Internet as a medium to market their products, and examine advertising and public relations alternatives.

Dell Computer Company

Dell is a global computer company that has become the company to benchmark in the computer industry. Michael Dell created Dell Computer in 1984 and the company essentially changed the way consumers purchase computers by eliminating the middleman and allowing customers to purchase equipment direct from the company. This has allowed them to have a closer relationship with their customers so they can understand their needs and constantly improve service.

Dell sells a variety of goods such as desktop and notebook computers, their own brand of televisions, handhelds, printers and various other electronics and accessories. Computer equipment arrives with a large color-coded diagram showing the customer exactly how to hook up equipment. The customer can also pay to have someone come to his or her home to set up the equipment leaving the computer ready to use. Dell also markets equipment such as servers and storage solutions to small and large businesses but their main customer is the home consumer.

Dell's target audience for their website is consumers around the world. Dell has done an effective job with their website by allowing the consumer to choose which country they are from on the companies home page. Once selected, the website appears entirely in that country's native language. If that country's first language is Spanish and second language is English, the website will appear in Spanish but also give an option to display the site in English.

Another important feature Dell provides its customers is the ability to customize his or computer. The customer can build his or her computer with a variety of memory, graphics, hard drive, operating system, and ROM/RAM configuration options among others. If the customer chooses conflicting components, an error message will appear and the customer has to make corrections before continuing the ordering process. If at any time the customer is confused on which options to choose, he or she can just pick up the phone and order the computer through a sales associate.

The customer also has the ability to order additional bundled software, which reduces the cost or ordering them individually. In addition, Dell advertises upgrades, discounts and free shipping specials daily on their website.

Once the customer order is complete, the customer signs on to the Dell website and see exactly what stage in the process is company at in building their computer. According to (Kalakota & Whinston, 1997), "The ability to track the complete transaction with an organization such as Dell Computer Corporation has been often cited as a source of competitive advantage for Dell. The consumer has the ability to track his/her order through the order processing stages through manufacturing, quality control, shipping, and finally even the shippers logistical system. As the intensity of competition on the Web rises, consumers will expect such value added exchanges with organizations with no barriers of time and place. As the sophistication and complexity of Web applications increase, access to relational databases will be essential hence it can only deemed prudent to integrate these into an organizations overall strategy."

Dell E-Marketing Effectiveness

Dell has mastered the ability to know who there customers are, unlike traditional indirect vendors. Dell uses this information to expand sales, retain customers, and provide the highest level of support and service.

Dell benefits the most from the direct relationship they have with their customers. They know what equipment the customer has purchased, how much the customer spent and where it was shipped. Dell in turn uses this information to offer additional services and products, coordinate technical support, maintenance, and assist the customer in planning for upgrades and computer replacements. These strategies support Dell's e-Marketing initiatives.

Dell has also used the Internet to create Premier.Dell.Com which is a customizable procurement website that provides support, configuration, ordering and tracking services to its business customers. This site also offers the following:

1. Customized, on-stop shopping

2. Detailed product information

3. Individualized user views and options

4. Simplified administration and reporting

5. Support

6. Simple navigation

7. Side-by-side product comparisons

8. Detailed product specifications and features

9. Options relevant to that particular organization along with negotiated prices

Dell's e-commerce approach includes Dell Ventures, which invests money into money into areas such as B2B and B2C e-commerce, e-consulting, wireless communications, Internet and server infrastructure. Dells e-commerce e-marketing strategies are a perfect accompaniment to their direct sales model.

Appropriateness of the Internet

Dell is an Internet infrastructure company and as such, e-commerce is essential to its business. This is evident in the sue of technology in Dells' relationships with its customers, the company's market message