Marketing Audit and Marketing Objectives - Essay Example

Marketing Audit and Marketing Objectives Number Department Table of Contents I. Introduction............................................................................................4 II. Goals, Strategy and Implementation ....................................................4 III. Micro-environment ................................................................................5 IV. Internal Environment..............................................................................5 a) The 7 Ps............................................................................................6 V. External environment.............................................................................7 (i) Stakeholders and Collaborators..................................................7 (ii) Competitors..................................................................................8 VI. Macro-environment.................................................................................8 (i) PESTLE Analysis ........................................................................8 (ii) SWOT Analysis ..........................................................................11 VII. Segmentation, Targeting and Positioning..............................................12 VIII. Objectives..............................................................................................12 IX. Conclusion..................................................................................................13 Abstract This marketing audit report analyses Dell Corporation’s internal and external marketing environment, goals, functioning, and the efficiency of the services for Laptop computer. It is an imperative investigation of the organizations marketing planning process in regard to the sale of its laptop computers. This marketing audit entails a detailed, structured, independent, and terminal evaluation of an organizational unit’s; marketing environment, goals, approaches, and processes, purposely to establish areas of defect and opportunities and suggesting an action plan to enhance the company’s performance in regard to marketing processes. I. Introduction In the recent past, Dell Corporation has enhanced their consumer base in the laptop computer brand. Indeed, the company implemented one of the best marketing initiatives in the face of high technological innovativeness in the early 21st century. Through its marketing campaigns, Dell focussed on developing a consumer base composed of younger population, who preferred portable laptop computers for their daily activities, such as studies. They specifically ensured that they captured students and younger adult population. However, in the campaigns aimed at the young consumers, Dell Computers knew the significance of communicating - at least indirectly, to parents who are usually called upon to help with purchasing the products for their sons and daughters (Proctor, 2000; Baker, & Hart, 2007). II. Goals, strategy formulation and implementation Dell strives to be the most flourishing corporation in the world known for producing the best laptop computers that meet and exceed the customer expectations in the UK market. The corporation’s marketing objectives and goals are premised upon providing the customers with laptops that have new and striking features such as webcam for video chats or conferencing (Linsenbach, 2007). These features are increasingly becoming popular, especially in the UK. With these features incorporation in its laptop brands, Dell aims to be seen making the life of the users more relaxed. The strategy was been apparently implemented in the Dell’s ‘Dude’ campaigns, which may continue to be the future trend in regard to appealing for the younger population (Proctor, 2000; Doyle, & Stern, 2006). The company’s targeting of the UK’s younger consumers with the laptop brands in the 1990s saw the original creation of Dell Computers "Dude." The promotions captured the ‘youthful’ and relaxed behaviour to promote the products among the younger consumers. According to Vanhamme et al (2012), while older adults’ behaviour was not portrayed in the Dell Dude, the fellow was somehow appealing to them. As a result, Serwer and Boorstin (2002), indicates that the Dell “Dude” appealed to the larger part of consumer base and prospects. III. The Micro environment According to Serwer and Boorstin (2002), Dell has initiated a number of responses to various aspects of the micro environment. It is arguable that the laptop computer market is currently witnessing the fastest growth in the computer sector. In its entire period of its expansion, this market segment, like any other, according to Linsebach (2007), has significantly transformed into the mix following changing trends among consumers. In an attempt to incorporate the various consumer demands in its laptop consumer products, Dell observes the market trends to help in the creation of new features (Saladow, 2012). Dell’s laptop computers have been essentially shaped by trends such as online video chats among laptop computer users in the United Kingdom market. IV. Internal environment The internal marketing audit for laptop computers involves issues such as Dell’s mission statement, objectives and goals, structure, business culture, internal systems, processes and their implementation (Shaw, 1994). Also important is product development and valuation; productivity and efficiency, promotions, and use of the sales team to fpromote the laptop brand (Serwer, & Boorstin, 2002). Internally Dell boasts the strength of having a strong market position. However, weaknesses such as lack of proper internal controls and product recalls continue to injure it reputation (Viardot, 2004). 1. The Seven Ps a) Product: Dell is producing many types of laptop computers with different features such as colour and internal specifications in order to meet the unique consumer demands (Viardot, 2004). These widened product variety is a strength. It wins the corporation a stronger brand and more revenue. b) Price: Dell’s laptop computer products are low cost and affordable to more consumers in the UK market. The strategy may eat into the company’s profits and make its survival difficult especially during inflation. This is one of Dell’s weakness., as it would be hard for the company to stay competitive in inflation strikes c) Place: The marketing processes for Dell laptops are generally structured in line with geographical aspects of the UK in order to meet the unique customer needs in various parts of the country. The products exist across the world. This is Dell’s strength, as it would earn more customers. d) Promotion: Dell brand of laptop computers is synonymous across the world, especially among the younger student generation. By targeting the demographic, Dell’s strength is manifest in building a strong bond with the tech-savvy consumers. e) People: Dell uses company-run distribution centres in their laptop product distribution. It also liaises with retailers to reach the market. This is a weakness as the company is prompted to increase the distribution budgets. f) Physical evidence: Dell’s laptop computers are available at various stores run by the company across the world. With the company’s strength it aims to increase its physical presence and support centres across the world to enhance the market share. g) Processes: The Company relies upon their strength in innovation led by R&D to come create laptop computer products that not only meet but exceed customer expectations in Europe, especially in the UK. V. The external environment The audit on the external marketing processes will encompass issues related to political, economic, technological, infrastructure, consumer perspectives; size and the nature of the market as well as market rivals, distributors and suppliers (Serwer, & Boorstin, 2002; Arnold, 2009). (i) Stakeholders and collaborators Dell’s stakeholders include consumers, the workforce, suppliers, shareholders, political organizations, non-governmental bodies and the whole environment where company operates (Linsenbach, 2007). Dell’s collaborators include; Officeworks, EMC, and Walmart. Whereas Officeworks and EMC help with the product development, Walmart is perhaps the largest retailer of Dell’s computer products. (ii) Competitors The competitive nature of the laptop PC market across the world presents the main challenge to the corporation (Baker, & Hart, 2007). Currently the micro-environment has pitted giant companies known for best laptop computers such as Toshiba, Acer and HP. But in response, Dell has targeted the younger population and parents with its marketing campaigns to cash in on the two demographics (Lisenbach 2007). VI. Macro-environment In the macro-environment, Dell’s laptop computers face different challenges in different markets across the world. There are laws and political issues affecting Dell’s operations in a developed country like the UK (Doyle, & Stern, 2006). Issues related to health safety, prevention and or management of pollution, and promotional initiatives as well as labelling requirements impact on the corporation in various environments. Despite the challenges, Dell computers have been expecting a growth estimated at ten percent in the recent past (Serwer, & Boorstin, 2002). Door to door marketing campaigns should however be the strategy for capturing more consumers and enhancing the revenue base in the United Kingdom. (i) PESTLE Analysis a) Political: In this regard, Dell’s laptop brands face certain limitations in the market. Problems can come up in markets where there is political instability. b) Economic: the laptop computer sector expects exponential growth in the face of current technological revolution and globalization. However, this growth is shaped by the economic situation in a given country (Linsenbach, 2007). The situation impacts on the buying power of UK consumers and prospects. Variable inflation rates and the value of currency, for instance, can influence Dell’s profitability on the laptop computer business. In response, however, the corporation capitalizes on low-cost laptop computers to attract more UK customers and prospects and outplay their competitors. This marketing strategy has enabled the company to be a market leader, especially in Europe. Nonetheless, positioning a company as low-cost usually eats into the company’s profits and might hurt the corporation, especially if inflation spiralled out of control. c) Social: In the early 21st century, Dell tried to expand its business by designing laptop products for personal use in families and college students that are in need of portable computers (Andzulis, Panagopoulos, & Rapp, 2012). In doing so, the corporation built most of the striking features on the products. Dell targeted individual UK consumers through direct communication channels such as email promotions as well as advertising over the media (Vanhamme et al, 2012). Owing to the fact that the average demand for laptop computers is influenced by the educational level of the state, Dell has been concentrating its laptop computers in countries with higher literacy levels such as in the United Kingdom (Vanhamme et al, 2012). The rising inclination of children toward portable computers, especially in their studies is also viewed by the company as a significant opportunity. Currently, children already get acquainted with laptop computers when they are still young. d) Technological: Unlike most industries, the rapid technological innovation in the computer is at its highest (Lovelock, & Wirtz, 2007). Rapid Research and Development have resulted in constant innovation programs. These initiatives have resulted in shorter life cycles of products and quicker decline in the value of the products. This has led Dell into adopting better R&D programs aimed at improving the features of its laptop brands from time to time. The corporation hit the market with new innovations such as several of new laptop brands with features that would appeal to personal consumer segment, including high graphic viewing capability and sound cards and multicoloured laptops. Linsenbach (2007) indicates that the corporation also set up larger databases and consulting services to its UK consumers as a way of pulling the rag from under the feet of its primary competitors such as HP and IBM. According to Shaw (1994), Dell primarily depends on direct communication channels with its consumers in marketing initiatives so as to advance both its laptop products for personal and corporate use in the UK market. e) Legal: The United Kingdom still enforces laws that limit the technology market to safeguard national interests and local manufacturers. Such regulations often limit Dell’s incursion into such economies. In response, Dell does business in the United Kingdom where stiff regulations are in place by partnering with local companies (Vanhamme et al, 2012). Nonetheless, in such scenario the computer manufacturer is forced to take minority shares but provide the resources and technological skills needed (Linsenbach, 2007). But with globalisation quickly taking shape, Vanhamme et al (2012) argue that trade barriers continue to reduce and new markets are opening, allowing the expansion of liberal trade. f) Environmental: Dell has been a leading company in the computer industry that uses green energy (Aaker, 2008). The company also recycles its products and properly integrates sustainable energy policies into its corporate culture. The corporation sources an estimated 35 percent of its energy use from renewable energy and about 20 percent globally (Wilson, & Gilligan, 2012). This is a fairly good performance, especially in the current world where the threat of global warming is real and is already taking the toll (McDonald, 2007). (ii) SWOT Analysis Strengths: Dell is among the top largest makers of Laptop computers. Its products are synonymous in the market, perhaps due to direct business relationships with UK consumers and wide distribution networks in the country. The company boasts a powerful R&D that is responsive to changing market trends in the technology industry. Weaknesses: The Company relies on several suppliers of its Laptop computer components. Dell is also unable to diversify supply because it is mainly an assembly company and not a manufacturer. Additionally, Dell laptops are custom-built, thus may not appeal to the general population as other brands. Opportunities: By diversifying its products and marketing strategies, Dell has great opportunities to cash in on the changing market trends and technology revolution. Threats: Currently, there is stiff competition in the market for Laptop computers. Fairly giant players such as Toshiba, HP and Acer may shrink Dell’s market share and revenue. Customers may choose other brands as opposed to Dell’s customised laptop computer brands, especially for UK consumers who want to use the laptop computer for several purposes (Gurau, & Ranchhod, 2005). VII. Segmentation, Targeting and Positioning Segmentation: Dell strategy targets the younger population segment composed mainly of college students. They also capture the older generation (parents) because they are more likely to be called in to help with the purchase of the products for their sons and daughters. Positioning: Dell strives to position itself as the most trusted partner in the provision of affordable Laptop computers. The company’s strategy of making Dell Laptops “local” by placing the products in the markets aims to appeal to UK customers who want a “local” product. Targeting: The Company evaluates the effectiveness of Laptop computers to various market segments and produces products that are customized for them. For instance, the brands targeted at the student consumer base have specific features that would appeal to the user. VIII. Objectives Dell’s marketing mix should cover the various goals that the corporation has put in place so as to attain a competitive advantage over the rivals in the market. Firstly, the corporation should strive to change its technologies to match the current technological revolution in order to benefit from varying consumer trends (Serwer, & Boorstin, 2002). Secondly, Dell should continue to provide affordable and profitable laptop PCs for the users in order to beat their market rivals whose laptop PCs remain expensive. The pricing should be well calculated to avoid shrinking profits. Thirdly, as Dell’s laptop PC products are always easy to access at the nearest outlets, the corporation should focus on more distribution channels in order to build a stronger brand within the market (Lovelock, & Wirtz, 2007). This is especially true among UK consumers who want the “accessible” Dell for their computing needs. By so doing, Dell will experience the rapid growth of a large consumer base that is composed of different demographics (Viardot, 2004). Finally, by using different media channels to marketing its laptop computers including the television, print media, and the Internet as well as through retailers, Dell’s main objectives of achieving rapid and substantial expansion of its market share to greater heights will not only be achieved but guaranteed. IX. Conclusion In general, Dell’s marketing audit and objectives reveal they engage in innovativeness both internally and in the external environment to fend off competition from significant rivals in the laptop computer market such as HP. Dell has maintained its direct marketing initiatives, which are targeted at the consumers in the UK but has also strived to enhance its new partnerships in media advertising, usually in liaison with its retailers. In doing so, the corporation has embarked on initiatives that give its market rivals a run for their money, with price being the determining factor, especially in legendary stores such as Walmart. In the recent past, Dells promotional initiatives have shifted from laptop product features and adaptability to ‘affordability’ of the products, however the corporation should consider both issues in its journey to expanding its market share and securing sustainable profitability in the laptop computer micro environment. References Aaker, D. A. 2008. 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Marketing plans: how to prepare them, how to use them, 6th Edition. Oxford: Butterworth-Heinemann Ltd. Proctor, T. 2000. Strategic Marketing: An Introduction. London: Routledge. Saladow, K. 2012. Making Social a Sales Outlet. Response, 20(11), pp28-32. Serwer, A., & Boorstin, J. 2002. Dell Does Domination. Fortune, 145(2), pp70-75. Shaw, V. 1994. The marketing strategies of British and German Companies. European Journal of Marketing, 28(7), p30. Vanhamme et al. 2012. To Do Well by Doing Good: Improving Corporate Image Through Cause-Related Marketing. Journal of Business Ethics, 109(3), pp259-274. Viardot, E. 2004. Successful Marketing Strategy for High-Tech Firms. London: Artech House. Wilson, R.M.S., & Gilligan, C. 2012. Strategic Marketing Management: The Marketing Series. London: Routledge. Appendices Fig 1 A marketing audit diagram Read More