Integrated Communications, Integrated Marketing Communications and Corporate Reputation: Evidences From Dell Computer Corporations
Integrated Communications, Integrated Marketing Communications and Corporate Reputation: Evidences From Dell Computer Corporations
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D.M.N.S.W. Dissanayake
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D.M.N.S.W.Dissanayake
Department of Commerce and Financial Management,
Faculty of Commerce and Management Studies,
University of Kelaniya, Sri Lanka
ABSTRACT
Particularly, this case study provides a qualitative assessment of facts with regards to the
marketing efforts of Dell Incorporation (hereafter Dell, Inc.). More precisely the case encounters
aspects with regards to the integrative marketing communication of the desired company. The
report discuss about the integrated marketing communication and the impact it has on corporate
reputation. Moreover a detailed analysis has been given how the Dell, Inc. is practicing integrated
marketing communication at present. The potential to develop an integrative approach with
regards to communication has also being given. Finally the report discusses how integrated
marketing communications practices can be introduced or improved to the company operations.
The implication of the integrated marketing communication with the perspective of finance has
also been illustrated in the report.
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INTRODUCTION:
The Dell, Inc. was formed by Michael Dell in 1984 as PC’s Limited. At the time of the first stock offering took
place the company changed the name as the Dell Computer Corporation in June 1998. The company was able to
commence their business dealings across country boundaries in 1989. The company was able to go outside of
the United States to Europe, and the company was able to achieve $50 million of sales turnover. Adding to that
the concept of segmentation was initiated in 1993 while integrating a consumer concentrated approach. At the
core of the business the company was initiated build-to-order1 strategy. Through this strategy customers were
able to order directly, and their orders were routed by means of a credit check and soon after directly to the
manufacturing. Finally the orders were then built, tested and eventually shipped to the customer. Adding to that
the consumers were able to receive the order 5-7 days after the order was taken place.
These strategies were able to reap rich harvest to the company. At the very first beginning the company took
steps to reduce the middle man. This strategy was basically formed in order to reduce cost. By implementing
this strategy the company was able to pass the benefit to the consumer while reducing the cost of the product.
By identifying the customer need the company was able to position their value proposition in a sound manner.
Further Dell practiced just-in-time manufacturing as well. Finally they achieved impressive results and gained a
competitive advantage.
Moreover, the company’s product portfolio is diverse. The company has implemented various categories for the
each segment of the market. Those are, for home, for small home and office, for small and medium business, for
education, government and healthcare and for large enterprises. Sub categories have applied for each main
segment. These strategies are vital for the company’s success.
The company has developed their grassroots across the globe. In almost every country the product is available
for consumers. Mainly, the company operates in countries like, US, Canada, Mexico, Brazil, France, Germany,
Italy, India, China, Japan, Malaysia and Australia.
1
Customization of products
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The concept of IMC is increasingly accepted by many firms due to number of advantages. The mass media
advertising was considered as viable at past. But the techniques considers as ineffective since the high cost
involved and the unpredictable target audience. Today, firms use precisely targeted promotional techniques such
as direct mail, cable TV, the internet, etc. today almost all companies seek for effective implementation of
information technology in promotional aspects. These new initiatives of information technology have foster
buyers and sellers to share and to promote an effective customer relationship management.
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Followings are some of them. Personality audit Identity audit (acid test), SH analysis, Identity Mix Audit (with
a detail com- audit), CSR audit, Sevequal (service gap audit for gives image/communication/behavioral gaps),
Brand audit and Image research. The notion of personality audit defines the extent of a person may interact with
other people, (kdvi.com, 2012).
The identity audit is used to detect segregation of duties violations, (oracle.com). When determining strengths
and weaknesses of a desired brand, brand audit is vital. It requires mind mapping which is an organic technique
in deciding the correct position of the organization, (Brand, 2004).
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Source: Christensen, L. T., Fırat, A. F., & Torp, S. (2008). Emerald article: The Organization of Integrated
Communications: Toward Flexible Integration. European Journal of Marketing.
Adding to above illustrations, the notion of corporate level marketing is also another important aspect to
enhance the potential of developing integrated communications, (John & Stephen, 2006). One of the key
attributes of developing the corporate level marketing is to concern with the multiple exchange relationships
among networks and stakeholder groups. Further another important dimension in this regard is temporal
dimension with regards to relationships, (John & Stephen, 2006).
Ability to integrate communication is powerful competency and it will be fundamental in building /altering the
reputation of an organization. The absence of ‘integration; could result in obvious confusion on the reputation.
The potential to IC will depend on areas factors such as, Availability of a corporate brand, Drivers supporting a
corporate brand, Stakeholder expectation diversity, Current context of image (clarity vs. Confusion),
Communication expertise and Structural context (marketing structure/Degree of centralization etc.). Following
illustration provides an analysis of the potential of implementing integrated communication with reference to
the above factors mentioned.
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factor to survival and for corporate brand. Dell has ensured the reliability of the products offered. The products
are trustworthy for consumers of Dell.
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relevant business processes can be restructured effectively. Some of the research and development initiatives are
vital for this task. The marketing function of the company can be restructured via effective research and
development initiatives. This will lead to further increase the company’s effectiveness and eventually to
operating and gross profit margins. Moreover to protect profitability challenges of the company acquisition and
continually supply chain adjustments are vital. These initiatives have also been suggested by (Macomber, 2012).
Though the company’s customer satisfaction rates are improving, Cass, (2007), it should be stated that above
strategies could be implemented to enhance integrated communications in the company.
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