Table of Contents
1.1 Marketing (communication) mix.
1.2 Standardisation and adaption of the marketing mix.
What is standardization?.
What is adaption?.
1.3 Features of standardization and adoption-related to the marketing mix.
1.4 Advantages and disadvantages of standardization and adaption in terms of marketing perspectives
1.5 How Dell is following both standardization and adaption in its marketing mix.
1.6 Summary of the standardization and adaption strategies applied by Dell Inc.
An organization which operates in the international marketplace needs to give extra concentration on two particular issues: the internationalization process, and the marketing communication mix (Kotler et al., 2012). The marketing communication mix must be standards and adapted with suitable internationalization process theories to gain organizational success in the global market (Palmer, 2010).
This report has analyzed these two issues -marketing communication mix and internationalization processes- based on a particular global company called Dell Inc. The first part of this report has analyzed Dell’s marketing mix and its standardization and adaptation across the global marketplaces. The second part of the report has analyzed several internationalization process theories and defined the best-described theory for Dell Inc.
Dell Inc, one of the global leading technology brand, established by an American guy called “Michael” in 1984. Dell manufactures, sells, supports, and repairs computers and related technology products and services customizing according to customer needs and expectations. Dell is operating in most of the countries across the world with above 100,000 dedicated and devoted workforces. Dell’s key products are desktop and laptop computers, software, data storage devices, network switches, computer peripherals, printers, MP3 players, HDTV, and other electronic devices (Dell Inc, 2014).
Dell Inc attracts different kinds of customer segments including individual consumers, educational institutions, governments, all sizes of businesses including large, medium, and small. Dell Inc has segmented its global market into three different geographic regions: US, EU, and Asia. The main competitors of Dell are Sony, Samsung, Lenovo, HP, LG, Microsoft, and IBM. The key strategy of Dell Inc is to make sure of standards and customized products and services as consumers demand via effective and efficient manufacturing and supply chain management. In addition, it does extra care of its quality, leading technologies, customization flexibility, financial stability, accountability, competitive prices, corporate citizenship, excellent support, and services to gain customer attraction (Dell Inc, 2014).
1.1 Marketing (communication) mix
Marketing mix an important term in the marketing of an international organization, where it is an operational and tactical part of marketing plans. The definition of the marketing mix is about putting the right products and services in the rights places at the right time at the right prices (Kotler et al., 2012). It is known as 4Ps or 7Ps. 4Ps mean products, prices, places, and promotions, where 7Ps add three more issues- people, process, and physical evidence (Palmer, 2010). The marketing mix is described in the following diagram:
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Figure: Marketing (communication) mix Source: Adopted from Palmer (2010)
1.2 Standardisation and adaption of the marketing mix
What is standardization?
Standardization is the process of following methods and components of business and customers as requirements maintaining several contexts. In the case of an organization marketing, standardization is the practices and implementations of business methods and equipment which are accepted uniformly over the globe. Business organizations use these terms in their production and administration procedures, and in scoring particular variable assessment (Palmer, 2010). An example can be ISO standards followed by Dell in its business operations.
What is adaption?
Adaption is the process of setting up a business organization in a particular environment to improve its performance. A company can adapt itself in a new business environment or both national and international marketplaces bringing required changes in its activities and strategies and adapting products and services to the target markets (Kotler et al., 2012). For example, Dell has been able to adapt itself in worldwide marketplaces providing customized products and services as customer requirements.
1.3 Features of standardization and adoption-related to the marketing mix
|Marketing mix||Standardization features||Adaption features|
|Products||It improves product mobility and reduced stock cost and supports organizations in planning, controlling research, and development.|
|It enables organizations to adapt to customers’ changing behaviors and requirements such as expectations, beliefs, lifestyles, etc. It also creates technological differences with the required standard.|
|Price||It supports business strategies to fix and control the prices of products and services with improved uniformity.||It supports business in volatile economic circumstances maintaining exchange rate and market demand. It also supports maintaining legal and political issues making a difference in the product life cycle.|
|Place||It supports businesses to transfer experiences, knowledge, and efficiencies.|
|It helps businesses to realize the market size and its requirements and to make differences in intermediaries and product life cycles in different places as required.|
|It helps businesses to make economic scale relating to synergetic effects and to make worldwide uniformity.|
|It supports organizations to maintain legal and political issues, to provide competitive practices, and in the fluctuation of the exchange rate and market demand.|
|Source: Kotler et al. (2012)|
1.4 Advantages and disadvantages of standardization and adaption in terms of marketing perspectives
|Advantages||It supports organizations in reducing cost overall operational costs by reducing inventory levels, maintenance, and installation costs. In addition, it gives the economy of scale in supply chain management. Besides, it improves the management and design process in the required customizations. Finally, it helps the organization to improve business performance by improving the application of gained knowledge and experiences in operations.||It supports organizations to increase their market share in different cultural circumstances. In addition, it makes the products and services more exclusive and personal meeting customer requirements.|
|Disadvantages||It affects brand uniqueness which may decrease customer retention and loyalty. In addition, it can be the cause of lower responsiveness, which forces organizations to find out new customers and market segments. Finally, it gives a hard time for businesses to define customer demand in different nations and cultural circumstances.|
|It takes time and a big amount of money to adapt products and services within a particular environment. In addition, businesses have to put extra efforts into research and development in planning, controlling, and development process.|
|Source: Palmer (2010)|
1.5 How Dell is following both standardization and adaption in its marketing mix
|Dell’s marketing mix||Standardisations||Adaptions|
|Dell Inc has developed a standard database to support suppliers in evolving features for industry benefits. In addition, it makes sure of standards products and services with its power edge servers, fiber channel storage for back-up, a dynamic website providing minimum time for download, and Dell’s internal metrics. Moreover, it provides customized products and services as customer demands, considering competitive marketplaces.||Dell manufactures its products in several geographic areas meeting the consumer’s demand and expectations. For instance, it manufactures products in Asia for Asian customers, in the US for American consumers and in the UK for British consumers. On the other hand, the quality and ingredients of the product vary in different regions of the global market.|
|Price||Dell’s standardization of database supports its suppliers to reduce product prices. In addition, Dell’s product prices are comparably lower than its competitors due to direct marketing channels through build-to-order approaches, and retailer mark-up approach, which reduces inventory costs significantly.||Dell Inc continues its research and analysis on currency values, monetary, and fiscals policies of different nations to define the prices of its products based on customer buying power, currency values, and customer income levels in different countries and geographic areas.|
|Place||Dell Inc has been able to provide samples and pragmatic stages in several geographic regions. In addition, it is providing the same uniforms and logo entire the global market. Dell is operating in most of the nations across the globe following the same name, brand, and logo.||Dell Inc has been able to adapt is activities in different geographic areas across the world. It has emerged its markets whenever it has found out an opportunity from the labor market, governments, suppliers, and customers over the world market.|
|Promotion||Dell has enabled to achieve excellent promotional standardization through its effective analysis and evaluation relating to each geographic region. In addition, its dynamic website is providing available products and services information which has increased its online selling opportunities. It is also offering its products and services promotions through viral marketing campaigns, social media, and conventional marketing.||Dell has been participating in several social and national events sponsoring that events like cricket, football, national, and international trade fairs. These activities have promoted many consumers improving their market share and customer retention level in different cultures and nations.|
1.6 Summary of the standardization and adaption strategies applied by Dell Inc
According to an analysis of Dell’s business, it is applying both standardizations and adaption policies in its business operation effectively and efficiently. In addition, Dell is adding several methods and strategies to follow standardizations and adoptions procedures. I believe mixed methods of standardization and adaption strategies can give expected success to Dell.
In addition, Dell has applied unique strategies of mixed standardization and adaption policies which have enabled Dell to attract global consumers increasing retention level. In a word, Dell’s personal policies have given its competitive advantages and improved customer loyalty.
Furthermore, most of the global technology consumers expect to customize products and services. Dell has been able to meet this customer requirement following standardizations and adopting consumers’ demand and expectations. Therefore, Dell has again improved market share in the global market.
However, Dell needs to be more creative and innovative in its product designs to survive in the competitive global market. In addition, it should give more concentration on its product quality, product prices, availability, and customer services mainly after-sales services mainly in developing countries like China, India, Africa, etc.
In summary, it is fair enough to disclose that Dell’s marketing communication mix has standardized and adapted appropriately in the international markets following the suitable internationalization processed theories in business activities. Therefore, it has gained competitive advantages with improved market share and customer loyalty.
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