marketing mix of dell and apple, project report on dell and apple, marketing mix of companies

1. PROJECT REPORT
ON
MARKETING MIX

2. INTRODUCTION OF
MARKETING MIX
Marketing mix is a business tool used in marketing and by marketing professionals. It is a set of
actions, tactics that a company uses to promote its brand or product in the market. The term
Marketing Mix was developed by Neil Borden who first started using the phrase in 1949. “An
executive is a mixer of ingredients, who sometimes follows a recipe as he goes along, sometimes
adapts a recipe to the ingredients immediately available, and sometimes experiments with or
invents ingredients no one else has tried."
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.”

3. TARGET MARKET OF DELL
Dell 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

4. TYPES OF MARKETING MIX

5. MARKETING MIX
OF
DELL AND APPLE

6. Dell first logo from 1984 to 1989
Dell traces its origins to 1984, when Michael Dell created PC's Limited while a student of
the University of Texas at Austin. The dorm-room headquartered company sold IBM PC-
compatible computers built from stock components. Dell dropped out of school to focus full-
time on his fledgling business, after 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.

7. 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.

8. 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

9. 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.
Because 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.

10. 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:
Another one of the 4 P’s is promotion. This includes all the tools available to the marketer for
‘marketing communication’.
Dell in the past have not concentrated on extensive marketing campaigns but these
revolutionaries in 1999 when Dell changed its tactics by engaging in extensive marketing
campaigns.
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.

11. 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.

12. 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.

13. 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.

14. 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

15. 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
Price:
• Peripheral products – including Printers, Storage devices, digital videos and cameras.
• 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.
• The Apple iPad is priced at a minimum of $499.
• The Apple Mac Book costs $999.
• The Apple Mac Book Pro is priced at $1199.
• The Apple Quick time Pro for Windows costs $29.99
• 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.

16. 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

17. People:
People refer to all people directly or indirectly involved in the consumption of a service, example employees or other
consumers like 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

18. 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.

19. 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 .

20. 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.

21. 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
• 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

22. 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

23. 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

24. 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 .