Dell's Marketing Model In The United States
Dell should have made changes to its marketing model in the United States earlier as they had control over the market and there were other companies coming into the market doing something similar to them. Moreover, Dell (Damon Darlin, 2007) lost a lot of their market because their marketing model was superseded in a lot of countries as they wanted direct contact.
Some of the reasons why they should have changed their marketing model is because:
- Direct model approach: The customer cannot trust the product if they can’t see or touch (Morm Sambath, 2012) the product before they buy it. Moreover, consumers who want to purchase a laptop may not have the time …show more content…
However, prices will go up due to the rise in raw materials when there is a change in approach.
- High investments in R&D: Dell (Monypich Sou), might have to spend more on R&D to develop strong products for smartphones and tablet market as well as to learn new skills and capabilities in order to make more profit and compete with their competitors.
- Powerful Competition: As Dell changes its model, their competitors will come up with new ideas and methods to compete with them (Byrnes et al.,2006,27). For example: They will try to make even much powerful PCS that Dell’s ever made.
(3) Is Dell’s Japanese marketing model likely to be successful in the long run?
- Bad Quality: Quality was always important to the Japanese consumers of Dell.
The company is very price sensitive, the whole concept to build the computers online or via telephone for Dell was so that they could save their money.
• They didn’t have to store the computers in retail outlets or warehouses, they didn’t have to have customer services
• They didn’t have to have store locations
• They didn’t have to have inventory people or sales people or customer sales …show more content…
For example, if you don’t have an outlet or a location or a warehouse or a store where Japanese consumer can go and look at they won’t be happy. Therefore it’s not likely that it will work in the long run. However, there are a lot of measurement they could take in order to make it work in the long run such as changing their business model. In doing this Dell could open up a few retail shops, provide good customer services, increase their market segmentation and use a lot of research and development capital (Dell Computers, 2015).
(4) What marketing model should Dell use in China?
- As the market in China is large and growing rapidly, the particular model Dell is using now wouldn’t work in China. More importantly it’s not the way to make the market work as the Chinese consumers wouldn’t trust as they don’t have personal contact.
- The current model Dell is using now is similar to US when they were trying to develop the market, therefore it’s not likely that it will work in China when it’s not working in their home country, US (Ng et al., 2003).
- Given the growth in the china market, if Dell wants to enter the market early, they have to be sure when entering the market that they will become successful otherwise correcting the image and perception of the company will be a difficult task later