Successful companies all over the world employ a unique target market approach strategy to achieve success and sustainability in the business world. With the current economic market being highly competitive, a company must ensure it meets the exact needs of the customers to stay relevant to its consumers. Dell, in particular, is a perfect example of one of many successful companies that have dominated the PC industry. As a 57 billion dollar industry, Dell Corporation's success has been primarily based on the unique nature of Dell Corporation to allow customers to customize their PC's according to their requirements (Lakshmi, 2018).
Dell Corporation uses a unique target market approach strategy that penetrates the market more directly. This strategy is based on the STP model of segmentation, targeting, and positioning. The company uses a direct sales approach strategy that allows it to understand and adapt faster to customer requirements (Lakshmi, 2018). Besides, the company's direct model business strategy provides unique features to customers, such as design flexibility, product variations, fast response times, and the latest technology (Lakshmi, 2018). Also, the company manufactures PCs only for consumers and not for inventory purposes. This target market approach strategy sets the company apart from its competitors in that it doesn't waste valuable resources in producing computers that will become obsolete in the future. Instead, the company communicates directly with its customers and, by doing so, gathers enough data to be able to produce long-lasting computers in the market. Also, this strategy helps the company to introduce new products and technologies that are appealing to its consumer base (Lakshmi, 2018).
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Dell Corporation has a particular target market since the company specializes in producing computer hardware. The company has centered all its operations on creating PCs that meet the requirements of both home PC users and large corporations. Technology inclined people like students, business people, executives, and professionals are part of Dell's consumer base (Bhasin et al., 2018). The company offers customized solutions to different customers. The company’s target market is based on geographical, demographic, and lifestyle characteristics. Geographically, Dell Corporation customizes its operations to get closer to its customers and, in turn, builds a large customer base. Over the years, Dell has established manufacturing units in emerging markets such as China, India, Ireland, and other developing countries (Bhasin et al., 2018). The aim has been to target small and medium businesses due to the rapid growth of this market sector. Demographic factors such as age, occupation, education, and income groups are also huge considerations in Dell's efforts to expand its target market. Dell targets users between the ages of 23-60 years. Occupationally, the target market is small and medium business professionals. In terms of education and income, Dell Corporation’s target market is both graduate and post-graduate professionals and middle-income individuals, respectively. In terms of lifestyle characteristics, Dell manufactures PC's to meet the needs of people who work from home and also traveling individuals.
Market segmentation has been a critical aspect of the success that Dell has achieved over the years. Through market segmentation, a company identifies specific segments of the market and divides consumers into two broad groups; existing and prospective customers (Camilleri, 2018). Dell uses psychographic segmentation by making use of customer's beliefs, motivations, and priorities to tailor specific products. Demographic segmentation helps Dell Corporation to focus its resources on manufacturing PCs in consideration of factors such as age, gender, and income. For example, when considering age, Dell makes PCs to meet the gaming needs of people aged between 15-30 years. The overall promotion strategy that Dell uses is aggressive advertisement campaigns to reach more people. The company incorporates the promotional mix in terms of public relations, advertising, sales promotions, and personal selling. In public relations, Dell distributes information and generates awareness about its brand to large audiences by use of third party companies. In advertising, Dell uses social media, media outlets, and print media to broadcast its products to a large number of prospective clients. In sales promotion, the company uses large retail outlets such as Best Buy and Staples to offer customers discounts to incentivize them to buy more products. In personal selling, Dell uses catalogs and customer newsletters to maintain their existing clients and also to reach prospective clients.
In conclusion, since its foundation in 1984, Dell has grown to become a multi-billion dollar industry. Part of its huge success is attributed to the unique customization feature of its brand. The company has made significant strides in estimating customer needs, forecasting demand, and providing low-cost PCs to customers. Dell has gained a competitive advantage over its competitors due to its brilliant direct selling strategy and also built-to-approach (BTO) strategy. All these factors have helped the company to grow exponentially, and now it is one of the leading PC brands in the world.
References
Bhasin, H., Sarkhel, A., & Asim. (2018, September 3). Marketing strategy of Dell - Dell marketing strategy. Retrieved from https://www.marketing91.com/marketing-strategy-dell/
Camilleri, M. A. (2018). Market segmentation, targeting, and positioning. In Travel marketing, tourism economics, and the airline product (pp. 69-83). Springer, Cham.
Lakshmi, S. (2018). Make To Order Strategy at Dell Corporation: A Case Study. To nurture thought leaders and practitioners through inventive education. 21.
