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Online Retailing - Case Study Example

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Online Retailing

Dell Inc makes direct sales or direct marketing in the market place so as to keep up with the pace of the competitors. By these means, Dell ha managed to follow up the changes in the customer preferences and the change in technology and as a result, the company has managed also to build a long term customer firm relationship hence increasing customer confidence and satisfaction, consumer loyalty and client profitability in a price valuable way, Dell (1999). The success of Dell Corporation is based on successful research in market segmentation, positioning and other aspects of business success.
Successful segmentation has placed Dell Inc at an advantaged position with the opportunity to make moves towards every client in each segment and to enhance customer relationship. Market segmentation is the foundation of Dell marketing operations, and through these segmentations, the Dell Corporation establishes its positioning and changes its offers for every segment's client. Segmentation is significant constituent of virtual integration with clients, and the finer the segmentation the better it is for the company to predict the client needs and timing, Dell (1999). Coordination between suppliers and other aspects is enhanced by coordination of flow of strategic
This is the client relationship manageme...
in view of the fact that what the company does is an ideal example of direct marketing (Huff et al 2000). Through extensive research, Dell Inc was able to prepare this project. Through these connections, the market share has greatly increased and the major contributors to thus success are; Customer Relationship Management and Direct Marketing (online retailing).
Relationship Marketing
The operations of Dell are based op three important aspects of marketing and segmentation. This enables the execution of a relationship marketing strategy. They are; Small enterprises and Home customers, Larger corporate clients (Relationship Customers) and the public sector. It has been the tradition of Dell using the terminology 'relationship marketing' to define its segmentations (Huff et al 2000). For this reason, each segment is treated differently and customized to the specificity of their needs.
Marketing Communication
Dell Inc uses two main communication modes in its marketing strategy that is; the internet and calls. During operations, sales and telephone services are allocated to the representatives of the departments to individual relationship customers, while every sales representative is committed to on one client, Dell Computer Corporation Annual Report (2002). On record, employees worked extra hard to maintain Boeing's 140 000 personal computers. Their websites are customized to ensure faster and reliable communication between the company and customers in terms of placement of orders, and are on line 24 hour a day. The Information Technology department has improved other functions like support, accounting and planning module to assist clients.
Immediately after Dell adopted ...Show more


Dell Computer Corporation was established in 1984 by Michael Dell while attending the University of Texas. The vision of the company was to achieve greater heights by upgrading Personal Computers and selling them. Even as Dell was improving and selling Personal Computers, the management discovered that traditional manufacturer - retailer chain was not as productive as it ought to be…
Author : rwelch
Online Retailing Case Study essay example
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