1 . In this chapter we have discussed the important concepts of targeting, segmenting, and positioning. In groups of three or four, identify where Dell's brand is positioned In the minds of your classmates. For over a quarter of a century, Dell's successful model has been documented in countless articles and books.

Quite simply, Dell has been a symbol of efficient distribution and customer service. However, this tremendous reputation has suffered in recent years as Dell has lost ground to competitors like HP and Acer. Before we examIne what has gone wrong, let's take a look at the origins of Dell's success.

From the outset, Michael Dell's vision recognized a market with different kinds of potential users-the business sector, non-business organizations such as schools and other institutions, as well as the growing segment of PC users in homes--each with different needs and resources. Choosing to focus more on the business and institutional segments, Dell envisioned a then-unheard-of combination of service features for PC customers: highquality products, lowest cost, ease in ordering and receiving products, live interaction with expert technical assistance for building a PC "the way you like it," superfast deliveri es, and after-the-sale communications to ensure product perfonnance and to keep users infonned about upgrades to enhance their PCs.

The market response was overwhelming, resulting in Dell's dominant position as industry leader. Dell 's 344 Part rv: .Mamglng Marketing unique vision for integrating all stages of marketingdevelopment of the product and related services, pricing, selling to consumers directly via telephone or the internet, delivering directly to customers from efficient manufacturing plants, and promotional messages for product awareness and use-were unmatched by competitors that struggled to copy Dell's way of doing business.