PROJECT REPORT

ON
MARKETING MIX

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.

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:
3. 18to 35 years old
4. Middle class

TYPES OF MARKETING MIX

MARKETING

MIX
OF

DELL

AND

APPLE

HISTORY OF DELL

Dell first logo from 1984 to 1989

Dell traces its origins to 1984, whenMichael DellcreatedPC's Limitedwhile a student of the
University of Texas at Austin. The dorm-room headquartered company soldIBM 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, theTurbo 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
companygrossedmore than $73million in its first year of operation.

COMPANY BACKGROUND
Name
Industries served

Dell Inc.
Computer hardware, Computer software, IT
consulting, IT services

Worldwide

Geographic areas served

U.S.

Headquarters

Michael Dell

Current CEO
Revenue
Profit
Employees
Main Competitors

$ 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.

Vision statement :
Its the way we do business. Its the way we interact with community. Its 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 :
Dells 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

MARKETING MIX OF DELL

Product:
Dell believes that, Marketing is not about providing products or services, it is essentially
about providing changingbenefitsto 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 strategiesusually change as the product passes through its life cycle, because there is
constrains on the companys 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 Dells 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 .

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 locationstrategyaspect of its marketing
campaign.
As Dells products are always available at the nearest dealers 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 Ps 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.

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.

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- Apples 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.

COMPANY BACKGROUND
Computer hardware, Computer
Apple Inc.

Name
Industries served
Geographic areas served
Headquarters
Current CEO
Revenue
Profit
Employees
Main Competitors

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.

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

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.

Apple service providers are certified technicians, who complete regular Apple
Plac
training and assessments, and offer repair services, and exclusive access to
e:
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.
Apple, Inc
Promotion
: 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 Apples professional
applications. A wide range of certification exams and courses offer innovative
learning opportunities for IT and creative professionals, educators, and service
techniciansdelivered
exclusively
by Apple
Certified
Trainers
. allowing visitors to
The
Apple Consultants Network
website
provides
a search
tool
locate nearby certified Mac product consultants in the U.S, Canada, and a number
of international locations

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

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.

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.
Apples direct competitors are Google ,
Samsung , HP .

TARGET MARKET OF APPLE

College and University Students:

These

students use Apple Inc. products such as iPads

,MacBooks ,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 iPads, iPhones, MacBooks 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 iPods 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: iPhones are useful to adults for their everyday

needs such as phone calls, map directions, internet
connection, documents and cameras.

SWOT ANALYSIS OF DELL

Brand name valued at $7.5 billion
Product customization
Environmental record
Competency in mergers and
acquisitions
Direct selling business model

Strength

opportunities

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
weaknesses Low differentiation

Threats

Growing demand for Smart phones

and tablets
Profit margin decline on hardware
products
Slowing growth rate of the laptops
market
Intense competition

SWOT ANALYSIS OF APPLE

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

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.

strength

weaknesses

opportuniti
es

threats

Rapid technological change

2013 tax increase
Rising pay levels
Android OS growth
Competitors move in online music
market
Price pressure from Samsung over
key

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 400500 dollars

Apple desktops and

laptops cost is more than
Dell .Apples lowest
pricing laptop ranges
from 900-1000 dollars

CONTD....
Basics
MARKETING

Operating
System

DELL

APPLE

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.

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 .