Desktops, notebooks, printers, hand helds, MP3 players, televisions, and projectors can all be found online. Their virtual catalog is available twenty-four hours a day, seven days a week. and, many of their products are fully customizable, right online. They also highlight special offers, such as free shipping on Dimension desktops or a free printer with purchase. Just as in their direct mail catalog, Dell is trying to appeal to a wide target audience, including everyone from an individual to a global organization.
Dell Products, Life Cycle Position and Pricing Strategies:
There are four primary phases in the product life cycle that a product progress through, in sequence: introduction, growth, maturity, and decline. In the introduction phase, product branding is established, while pricing may be low build market share, or it may be high to recover development costs. Promotion is geared towards early adopters and builds product awareness.
The growth stage is where the organization looks to build their brand preference. Pricing remains stable as increased demand is realized. Promotion begins to expand to a broader audience.
The maturity phase, of the product life cycle, is the stage where strong growth in sales begins to decrease. Competition becomes intense, which typically lowers pricing. Promotional efforts focus on differentiating the organization's product from competitors.
Finally, the decline phase is the last of the product life cycle. Sales begins to decline and the organization usually looks to revitalize the product with new features, or by finding new niche markets, reduce the product costs and continue to offer it to their loyal customer base, or discontinue the product altogether.
Computers and computer peripherals are the lifeblood of Dell Computers. For this reason, they are also the primary thrust of their marketing efforts. Dell's computers are in the maturity phase of the product life cycle. They are under intense competition from direct to consumer manufacturers, such as Gateway. For...
As far as regional sales are concerned, U.S. business sales comprise the most sales (Annual Report, p. 58). This is not surprising because Dell's home country is the U.S. The other markets represent emerging markets and represent excellent chances for growth in the future. However, they are not yet established. Dell established its core business in the U.S. before it began to branch out into other markets. These secondary
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