Dell Adopts Multi-Channel Marketing Strategy, Essay Example

Comparison Organization Structures

The organizational structure of a business can provide the public and investors a snap-shot of how the company functions. The Dell organization specializes in computers and technology while the Target Corporation specializes in retail. The operations and functions of both companies fit into the giant conglomerates however, they have different ways of delivering their marketing, advertising and the way the hire their employees.  Dell has the years of experience in the IT business to function anywhere in the world including new developing countries. However, in contrast Target Corporation has limitations on where they can open retailed stores because computers have priority over clothing (Minten, Randrianarison & Swinnen, 2009). Dell is customer based on existing and new computers nationwide versus Targets customer based in rural and urban neighborhoods. Targets customer based in retail rely on coupons, sales, and new retail products while Dell uses their year round PC marketing to bring customers to their virtual website and purchase PC in the stores.

Business Structure

Dell business structure is the design and development, manufacturing, sales and marketing of computer systems and services all around the world. Dell specializes in the sale of PC’s to consumers and businesses while providing new technology that connects to the world. Dell is one the largest multinational companies in the world and the reputation of bring new technology to governments, businesses and consumers. Michael Dell is the CEO of Dell with a stellar executive leadership team, Board of Directors and corporate governance bylaws. The Board of Directors have the traditional responsibility of Audits, Compensation, Strategic Direction and Finance committee (Deepankar, 2012). Dell runs it corporation and business operations top to bottom while setting yearly goals published in their sustainability reports.

Marketing Channels

Dells marketing channels Dell is a multi-channel approach that reaches consumers across the globe. Both Dell and Target concentrate on direct marketing efforts but the difference is Dell is moving away from direct marketing to distribution of products via business or marketing channel partners (Boonnoon, 2014). Dell has remained faithful to their original marketing strategy of catering to customers directly through massive advertising, store front advertising and social networking avenues. However, Dell has felt the need to change their marketing strategy business driven channels while Target stays focused on direct marketing efforts.

Dell has moved to a global marketing strategy which their channels has grown to reach as many purchasers not just in the metro areas but expanding to remote locations. The personal computer market is spreading to the Pacific region of the world which Dell is positioning themselves for increased PC sales (Asthana, 2012). In addition, Dell has change marketing strategies to buy using local computer resellers to reach an establish base of customers.

The best example is the Dell computer marketing in India. Dell found a niche in marketing in India by purchasing PCs from local Resellers or System Integrators (SIs) that fit their geographical goals(Channel Times,2015). In contrast, Target marketing channels are spreading strategically the value of their Target brand. They try to deliver a message of price, quality, availability and customer service as qualities compared to other department stores. Target marketing channels are in-store marketing that provides reminders at every corner of the store. This strategy markets to the customer immediately in the moment which is called “Real Time Marketing”. Dell uses some the same marketing channels such as promotions, marketing packaging, television and social networking. However, Target differs in the approach because they market the quality of the Target product versus Dell markets based on the name and reputation of Dell products.

Finance

Dell financial services function as a way for them to promote them future finance strategy. Dell primary goals for finance is acquisition in different parts of the world. Dell provides financing to small businesses and middle market companies such as purchasing CIT Finance company in Canada (Dell, 2012). They have shifted there global targets to gaining more financial partners in Europe and in Canada. Dell believes the key to successful financial portfolios is finding the best business partners that have experience with the financial industry. In contrast, Target financial strategy is based on innovative product delivery that brings repeat customers to the store. They believe the financial reputation of Target makes sure the stock remains impressive for stockholders and potential investors.

Human Resources

Dell human resources is driven by the computer industry that has millions of IT jobs that are available each year. Dell human resources dedicates a large percentage of employee training to ensure they can keep up with the new technology of the future. Dell uses the employee job boards such as Dice.com, college graduates specializing in technology and spending time attracting the best talent in the industry with above average benefit packages. In contrast, Target human resources relies on seasonal retail workers that are seeking limited hours but only during the business seasons. Target has full time management team that runs the store but their retail employees enjoy the flexibility of Targets scheduling and hours (Target Corporation, 2015). There are other similarities such as how they both have quality operations but driven by different products which computers and retail products.

Geographic

Target does not have any geographical competition to the strategic locations of Target. Target has began there geographical growth in the South and Northeast regions to compete with Wal-Mart stores. Target is starting to growth in double digits in the urban areas which may be the first retailer to dominate the urban markets (Target Strategic Report, 2005). In contrast, Dell in a worldwide organization that is geographical located in United States, England, Europe, Middle East and Africa. Dell has partnered with Esri to embark on a strategic geographical growth plan locally, regionally, nationally and globally (Dell, 2015). Dell has a larger number of countries that has access to their products while Target is growing but they have a United States presence that is competitive with the top retailers in the nation. Target has done an excellent job of targeting their urban customers with pricing, location, marketing and strong advertising to the needs of their customers. Dell has targeted both United States and International markets to strengthen their market shares of computer industry.

References

Asthana. P. (2012). Personal computer companies; Dell vice president, enterprise strategy and marketing to address investors at pacific crest future of enterprise IT conference. (2012). Marketing Weekly News, 408. Retrieved from http://search.proquest.com/docview/929828190?accountid=34899

Channel Times. (2015).Dell adopts multi-channel marketing strategy. Retrieved from http://www.channeltimes.com/story/dell-adopts-multi-channel-marketing-strategy/

Boonnoon, J. (2014, Mar 20). Dell to change marketing strategy in May. The Nation Retrieved from http://search.proquest.com/docview/1508826673?accountid=34899

Dell. (2011). Dell to acquire dell financial services Canada from CIT group. (2011). Professional Services Close – Up, Retrieved from http://search.proquest.com/docview/863505299?accountid=34899

Deepankar, N. (2012).Dell company presentation. Retrieved from http://www.slideshare.net/deepankarn/presentation1-final-15068509

Minten, B., Randranarison, L., Swinnen, J. (2009).Global retail chains and poor farmers: Evidence from Madagascar. Science Direct, Vol.37, Issue 11, pgs.1728-1741

Target Corporation. (2015).Sustainable Living. Retrieved from https://corporate.target.com/corporate-responsibility/sustainability/sustainable-living

Target Strategic Report. (2005).Sage Group Revolutionizing corporate strategy. Retrieved from http://economics-files.pomona.edu/jlikens/SeniorSeminars/sagegroup2005/Reports/Targetreport.pdf