Consumers are no longer directed to their web site to place an order. Obviously, Dell has had to change its "contact” with consumers. What effect do you believe this type of change in their direct marketing mantra is having on Dell's business?

Dell(r) Computers has begun setting up kiosks demonstrating their products in regional malls across the country. They are also selling their computers in Wal-Mart stores, Best Buy, and other U.S. retailers. Dell will soon be selling through retailers in China. Consumers are no longer directed to their web site to place an order. Obviously, Dell has had to change its "contact” with consumers. What effect do you believe this type of change in their direct marketing mantra is having on Dell's business? Must other direct marketers make the change?

Direct marketing is an interactive marketing system that uses one of more media to affect a measurable response or transaction at any location. Direct marketing, especially electronic marketing is showing explosive growth. Direct marketers plan campaigns by deciding on objectives, target markets and prospects, offers, and prices. This is followed by testing and establishing measures to determine the campaign's success. Major channels for direct marketing include face-to-face selling, direct mail, catalog marketing, telemarketing, interactive TV, Web sites, and mobile devices. Interactive marketing provides marketers with opportunities for much greater interaction and individualization through well-designed Web sites as well as online ads and promotions.

Dell Company is well known for its innovations in supply chain management and electronic commerce, particularly its direct sales model and delivering individual PCs configured to customer specifications. It provides high quality and reliable product in the affordable price than others. They have even won awards for their customer service. Because of its lean supply chain management system and lowered costs through its direct distribution model it got competitive advantage. It helps to establish direct relationships between customers Dell relied solely on their online store to sell their computers. This helped Dell to become an industry leader for many decades. They did not use retailers like many other companies did. But later, this offended their sales radically. Dell is suffering from a decline in PC shipments while its share in the server market has also reportedly decline.

Dell is considering changing itself by doing variety of market shifts. Customer retail channels grew as Dell's direct sells declined. Its business environment has become highly competitive because of the changes in social, political, and economic trends. Substitute products are another serious threat that is new players are evolving in the market with the popularity of tablet PCs and smart phones. 

Customers' preferences and choices are changing along with the growth of new brands. Dell realized that key competitive advantages, which include a lean supply chain management system and lowered costs through its direct distribution model, need to be reinvented so that they can offer value added services to customer. Thus, the direct model might be unsuitable for future growth as organizations devise new strategies to lower down their costs and pass the benefits to the customers. Dell should develop distribution channel such that dell could go along the change of environment and the change in customer preferences.

References

Kotler, P., & Keller, K. (2012).Marketing Management.Pearson Prentice Hall: Upper Saddle River, New Jersey