Dell Computers' target market strategy and product positioning

Marketing Research

Dell Computers: Target Market

Dell Computers is among the computer companies that offer its customers great discounts particularly on online purchase. Analysing this strategy of Dell, the following is seen as the largest groups of customers targeted by Dell Computers which will provide the company with the highest number of sales.

Professionals in the Working Sector

It is a fact these days that most of the jobs we perform require the use of computers. Specifically in jobs that are bound in an office environment, computers are almost always the common tool in completing a task. The widespread use of the Internet also makes a computer indispensable especially during the need for information. Professionals in the working sector are always bound to a need for information. Aside from their profession's need to utilize a computer, a computer is also very useful in spending their leisure time.

Homes

As computers these days are becoming a necessity, it is a good target market for Dell Computers to reach the homes of many families. Having a computer at home can be useful to anyone in a family; to children who might need to do their school works using a computer, to parents who might need to bring their office works at home, and to any member of the family who just wants to browse diverse information from the Internet.

Servers

Servers are used as the main source of information which links other computer clients to form a network. It plays the role of a host between computers. Generally, a server responds to every need of computers within the network.

Monitors monitor is a device that provides the main display of data and information to computer users.

Product-Market Grid

Notebooks

Desktops

Servers

Monitors

Professionals

Homes

Schools

Market Analysis

Among the major competitors of Dell Computers include IBM, Compaq, and Hewlett Packard. All of these companies compete for quality computer products. However, there is one advantage that gives Dell Computers an edge to customers and clients. That is, Dell offers affordable prices of their products. One solution that works to this market strategy of Dell is through online purchasing of Dell's products. Obviously, online sales lessen Dell Computers with costs to establish stores at many locations as well as operation costs. From such savings that Dell makes is advantageous to customers as the prices of Dell products proportionally lowers. As stated by Michael Dell, chairman and CEO of Dell,

The Dell advantage is based on direct relationships, low cost, speed to market and e-commerce expertise as much as it is on Internet hardware, appliances and customers services and support."