MARKETING MIX ON

APPLE VS DELLPresented by: Manzil Bhattarai

INTRODUCTION OF MARKETING MIX

Definitions:

According to Philip Kotler, “ A marketing mix is the mixture of controllable

marketing variables that the firm uses to pursue the sought level of sales in

the target market.”

According to Neil H. Borden,” The marketing mix is the set of marketing tools

that the firm uses to pursue its marketing objectives in the target market.”

TARGET MARKET OF DELLDell Currently Target Two Markets:

Large To Mid-size Business:

1. 36 to 50 year old

2. Upper Middle To Lower Class

Consumers, students, small home office:

1. 18to 35 years old

2. Middle class

TYPES OF MARKETING MIX

MARKETING MIX OF DELL AND

APPLE

Dell first logo from 1984 to 1989

Dell traces its origins to 1984

Michael Dell created PC's Limited while a student of the University of Texas at Austin.

Dell dropped out of school to focus full-time on his fledgling business

Getting about $300,000 in expansion-capital from his family.

In 1985, the company produced the first computer of its own design, the Turbo PC, which sold for $795.

PC's Limited advertised its systems in national computer magazines for sale directly to consumers and custom assembled each ordered unit according to a selection of options.

The company grossed more than $73 million in its first year of operation.

COMPANY BACKGROUND

Name

Industries served

Geographic areas served

Headquarters

Current CEO

Revenue

Profit

Employees

Main Competitors

Dell Inc.

Computer hardware, Computer software, IT consulting, IT services

Worldwide

U.S.

Michael Dell

$ 63.07 billion (2012)

$ 3.49 billion (2012)

110,000

Apple Inc., Samsung Electronic Co., Ltd., Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation, Fujitsu Limited and many others.

Vision statement :

It’s the way we do business. It’s the way we interact with community. It’s the way we interpret the world around us- our customer needs, the future of technology, and the global business climate. Whatever changes the future may bring our vision – Dell vision – will be our guiding force.So Dell needs full customer satisfaction. In order to become the most successful computer company, they need the newest technology and loyal customers.

Mission Statement :

Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of :. Highest quality .Leading technology .Competitive pricing.Individual and company accountability.Best-in- class service and support.Flexible customization capability. Financial stability

MARKETING MIX OF DELL Product:

• Dell believes that, ‘Marketing is not about providing products or services, it is essentially

about providing changing benefits to the changing needs and demands of the customer’.

• Dell designs, develops, manufactures, markets, sells, and supports a wide range of products

that in many cases are customized to individual customer requirements.

• A few examples of products for individual and professional customers are Dell Precision

workstations, Dimension desktops, and Latitude notebooks.

Price:

• Pricing strategies usually change as the product passes through its life cycle, because there

is constrains on the company’s freedom to price a product at different stage.

• The main objective of Dell is to produce the low price and profitable PC for the customers.

• For the above reason Dell’s product pricing reflects the affordability of the local consumers.

• Dell products are so customizable , the price is largely dependent on the options and

services added to the product.

• Dell is undercutting competitors in price to rapidly gain market share.

Place:• Place is also known as channel, distribution, or intermediary.• It is the mechanism through which goods and/or services are moved from the manufacturer

/ service provider to the user or consumer.• Dell has been able to affect the location strategy aspect of its marketing campaign.• As Dell’s products are always available at the nearest dealer’s customers develop trust for

the “local Dell” thereby achieving the objective of gaining their trust in Dell products and services, and forming a large and diversified consumer base.

Promotion:• This includes all the tools available to the marketer for ‘marketing communication’.• Dell in the past have not concentrated on extensive marketing• Dell markets its products primarily by advertising on television and the Internet, advertising

in a variety of print media, and mailing or emailing a broad range of direct marketing publications, such as promotional materials, catalogs, and customer newsletters.

• Dell has recently started promoting its products through retailers like Best Buy, Staples, Wal-Mart, GOME, and Carrefour.

• People:

People refer to all people directly or indirectly involved in the consumption of a service, example

employees or other consumers,

• Physical Evidence:

Physical evidence that related to the environment in which the service is delivered, and the

tangibles that help to communicate and perform the service, and

• Process:

Process is the delivery and operating systems of procedures, mechanisms and flow of activities

which services are consumed.

HISTORY OF APPLE

1976: Steve jobs and Stephen Wozniak found the Apple Computer Company. 1977: Apple introduced- first personal computer designed for mass market. 1981: IBM introduces the PC- Apple’s first form of competition. 1984: The original MAC is put on market $2495. 1985: Steve jobs resigns from Apple. 1986 to 1990: Apple endures near financial crises as sales steadily decrease. 1991: First power book ship- Apple becomes standard bearer in portable market. 1997: Steve jobs return to Apple as interim CEO. 1998: IMAC hits market $1299. 1999: Airport debuts on I- book- sets off an industry-wide wifi craze. 2000: Steve jobs become CEO. 2000: Present- Apple continues to release new products and updates to previous products. 2011: Steve jobs dies.

COMPANY BACKGROUND

Name

Industries served

Geographic areas served

Headquarters

Current CEO

Revenue

Profit

Employees

Main Competitors

Apple Inc.

Computer hardware, Computer software,

Consumer electronics, Digital distribution

Worldwide

U.S.

Tim Cook

$ 156.508 billion (2012)

$ 41.733 billion (2012)

72,800 (2012)

Samsung Electronics Co., Ltd., Amazon.com,

Inc., International Business Machines

Corporation, Cisco Systems, Inc., Google

Inc., Microsoft Corporation, Dell Inc., LG

Electronics, Lenovo Group Limited, Hewlett-

Packard Company, Sony Corporation and

many others.

Vision statement:

Man is the creator of change in this world. As such he should be above systems and

structures, and not subordinate to them.

Mission statement:

Apple is committed to bringing the best personal computing, portable digital music

and mobile communication experience to students, educators, creative

professionals, businesses, government agencies, and consumers through its

innovative hardware, software, peripherals, services, and Internet offerings.

Apple designs Macs, the best personal computers in the world, along with OS X,

iWork and professional software. Apple leads the digital music revolution with its

iPods and iTunes online store. Apple has reinvented the mobile phones with its

revolutionary iPhone and App store, and is defining the future of mobile media and

computing devices with iPad

MARKETING MIX OF APPLE

Product:

• Portable Computers – including Mac products such as Mac Book Pro, iMac,

• Accessories – including Magic Mouse, Keyboard, Led Cinema Display.

• Wi - fi Based Stations - including Airport Express, Airport Extreme, Time Capsule.

• Developer – including Developer Connection, Mac Program, iPhone Program

• iPod – including iPod Shuffle, iPod Nano , iPod Classic.

• iTunes – including movies, TV shows, audio books, games

• Peripheral products – including Printers, Storage devices, digital videos and cameras.

Price:

• Apple is a premium brand computer that does not attempt to compete on price.

• The company has reduced prices after some initial product launches.

• It uses skimming and premium pricing strategies.

e.g. Apples iPad pricing strategy includes the flexibility to lower the prices if consumer response dictates such action. This would be consistent with a similar $200 price cut on the iPhone in 2007.

Place:

Apple service providers are certified technicians, who complete regular Apple

training and assessments, and offer repair services, and exclusive access to

genuine Apple parts.

They are located in Asia/Pacific, Africa, the Middle East Europe and Latin

America.

Apple has over 200 retail stores worldwide including the US, UK and Canada.

Apple recently opened a new retail store in Shanghai China

Promotion:

Apple, Inc offers special discounts on refurbished Macintosh computers, iPod

Nanas, and the 8GB iPod Touch.

In each case a 1 year warranty is included on the all products.

Apple, Inc authorized Training Centers are located throughout the U.S. each

provides instruction in Mac systems, Mac OS X, and Apple’s professional

applications.

A wide range of certification exams and courses offer innovative learning

opportunities for IT and creative professionals, educators, and service

technicians delivered exclusively by Apple Certified Trainers.

The Apple Consultants Network website provides a search tool allowing

visitors to locate nearby certified Mac product consultants in the U.S, Canada,

and a number of international locations

People:

People refer to all people directly or indirectly involved in the consumption of a

service, example employees or other consumers

Stephen P. Jobs is the Chief Executive Officer of the Executive Board at Apple,

Inc.

Non Executive Board Directors include William V. Campbell, Millard S. Drexler,

Albert Gore and Author D. Levinson.

Key Senior Management team members include Timothy D. Cook, (COO),

Jonathan Ivey, (Industrial Design), Ronald B Johnson (Retail), Robert Mansfield Mac

Hardware Engineering), Mark Paper master (Devices Hardware Engineering),

Some certified Apple service providers offer additional services beyond repairs

and parts such as such as data transfer, data recovery, upgrade services, and onsite

deployment and installation.

Physical Evidence:

The Apple logo has evolved from its original depiction of Sir Isaac Newton under a tree

to the memorable rainbow apple to the present blue Apple with a bite taken out.

Process:• Apple converts new customers and secures their loyalty through a corporate emphasis

on customer service.

• Apple seeks to attract its target market through bold public relations events (such as the

MacWord Expo) as well as advertising imagery which borrows from contemporary

modern art.

• Apple has expanded its distribution channels in recent years including the addition of

WalMart

COMPETITORS ANALYSIS OF DELL

The Competitors of dell include Hewlett-Packard , Compaq ,Gateway AND Lenovo.

An indirect competitors is found in the form of a strengthening core of vendors that

provide parts to-do-it yourself users and small business that build and upgrade custom

computers for home users and for small office & home office users.

COMPETITORS ANALYSIS OF APPLE

In addition, apple competes with Microsoft in many areas of the personal

computers software industry.

Apple top three hardware competitors are dell, Hewlett-Packard and IBM.

Apple’s direct competitors are Google , Samsung , HP .

TARGET MARKET OF APPLE

College and University Students: These students use Apple Inc. products such as iPad’s ,MacBook’s ,iPhone etc to quickly record notes. These notes are kept organized in their devices.

Business People : Apple targeted the business people also. All Apple devices such as iPad’s, iPhone’s, MacBook’s etc, have a business quality that is very useful. In addition, sending documents is easy and organized.

Teenagers: Teenagers are considered one of Apple Inc. target markets. Teenagers use iPod’s for many reasons. Some of the reasons are to socialize with friends, listen to music. There are so many gaming apps that appeal to them.

Adults: iPhone’s are useful to adults for their everyday needs such as phone calls, map directions, internet connection, documents and cameras.

SWOT ANALYSIS OF DELL

• Growing demand for Smart phones and tablets

• Profit margin decline on hardware products

• Slowing growth rate of the laptops market

• Intense competition

• Expand services and enterprise solutions businesses

• Obtain more patents through acquisitions

• Strengthen their presence in emerging markets

• Tablet market growth

• Commodity (computer hardware) products

• Poor customer services

• Low investments in R&D

• Weak patents portfolio

• Too few retail locations

• Low differentiation

• Brand name valued at $7.5 billion

• Product customization

• Environmental record

• Competency in mergers and acquisitions

• Direct selling business model Strength weaknesses

Threatsopportunities

SWOT ANALYSIS OF APPLE

• Rapid technological change

• 2013 tax increase

• Rising pay levels

• Android OS growth

• Competitors move in online music market

• Price pressure from Samsung over key

• high demand

• Emergence of the new provider of application processors.

• Obtaining patents through acquisitions

• strong growth of mobile advertising

• growth of tablets & laptop

• high price

• Incompatibility with different OS.

• Decreasing market share.

• Further changes in management

• Defects of new products

• Long term gross margin decline.

• Customer loyalty combined with expanding closed ecosystem.

• Apple is leading innovator in mobile device technology.

• Strong financial performance.

• Brand reputation

• retail stores

• Strong marketing and advertising teams

strength weaknesses

threatsopportunities

COMPARISON OF DELL AND APPLE

BASICS DELL APPLE

PRODUCT Dell offers customizable

desktop and laptop

computers allowing pricing

to be dependent upon

components included

Apple on the other hand has

multiple base choices and

few upgrades within these

choices to expand their

variety

PRICING

STRATEGIES

Dell desktops and laptops

cost is less than the apple .

Dell lowest start off at

about 400-500 dollars

Apple desktops and laptops

cost is more than Dell

.Apple’s lowest pricing

laptop ranges from 900-1000

dollars

CONT’D....

Basics DELL APPLE

MARKETING Dell was the first computer

to provide direct marketing

to their customers . Dell

recently expanded their

sales locations to include

WALMART and BESTBUY

Apple handles the task of

placing its products in the

market by offering those

products worldwide. This is

accomplished through

online stores, retail stores,

direct sales, third parties.

Operating System Dell use windows operating

system of Microsoft and also

use open source Linux based

operating system in

computers.

Apple use its own

proprietory Mac operating

system in computers .