This week lectures focused on the place (distribution) part of the marketing mix.
The first though that popped up in my mind was the brand, Dell. Dell is doing so well in their supply chain management that they are able to be the world’s third largest supplier of personal computers.
Dell has an effective distribution strategy that they can perform business-to-business transactions as well as business-to-consumer transactions that boost up their sales in this highly competitive market. In selecting specific channel to secure and expand its business, Dell took into consideration the product factors that particularly focuses on the need to customize and exclusivity. They thus allow the customers to mix and match the parts online their PCs.
However, the modern strategy failed to address the market factors of customer expectations that they would want to have physical outlets to create a sense of security in their products. The importance of integration of the online and offline marketing strategy was well notified in Ben Bartlett’s blog post. He criticized Dell’s strategy of only focus on developing strong web presence and failed to fulfill customers’ expectations. In addition to that, he reflected the limitations of online business and revealed the fact that 92% of internet searchers end up purchasing offline.
To be honest, what Ben said is very true and that Dell has started to open up showrooms in certain selected places to remain competitive in business. With their current effective marketing channel, they still strive to expand its business both sales and models. In this way, they can facilitate the purchase decisions of their customers that contribute to their overall success. Now, the customers have the choice of either ordering and customizing their PCs online or to make a purchase at the store with standard specifications of their PCs. This in return secures Dell’s competitive advantage of having an excellent distribution channel.