Marketing 16th Edition by William Pride,Ferrell

تمرين 16

computers initially touched off a flurry of customer interest and then sparked a price war with Hewlett-Packard as the two fought for market share. However, when Apple, Nokia, and others began marketing new-generation cell phones with built-in computer capabilities and multiple entertainment functions, customers found those offerings more appealing than the kind of stand-alone handhelds that Dell offered.
Second, Dell was caught in the crossfire of incense com-petition. At the start of its consumer electronics initiative, the company introduced the Dell Digital Jukebox and the Dell Music Store, putting it on a competitive collision course with Apple's popular iPods and iTunes store. In the end, Apple had so much momentum that Dell discontinued its own brand of music players and has been reselling products made by Samsung and other manufacturers. This allows Dell to satisfy customer demand for certain consumer electronics items but without the expense of researching, developing, manufacturing, and marketing the products under the Dell name.
Although Dell is not looking to pioneer revolutionary new lines for early adopters, today the company is expanding into proven markets by introducing products that align with consumer demand. For instance, Dell formed a mobile device division to create products such as mobile phones and other portable devices. After two years of research, Dell entered into an agreement with AT T to carry its Mini 3 Smart Phone that uses Google's Android software. Since the inception of the first smartphone in 1992 by IBM, smartphones became commonplace during the 2000s and have proven to be a source of lucrative growth. By remaining innovative in its product designs, Dell continues to be a major player in the computer industry. Moving away from its traditional policy of only selling directly to customers, Dell began distributing its brand of computers, monitors, printers, and accessories through Walmart, Staples office supply stores, and other retailers around the world.
The company is also shining up its brand by improving customer service, an especially important step as PC sales grow more slowly throughout the industry and competitors dig in to defend market share. Dell's relentless cost cutting hurt its ability to handle technical questions and complaints, which in turn hurt customer satisfaction scores. Dell is rebuilding relationships by increasing its service budget and encouraging customers to have their say. 'By listening to our customers, that is actually the most perfect form of marketing you could have," says Dell's chief marketing officer?'
1. Why would Dell not pioneer revolutionary new products for innovators and early adopters the way its competitor Apple does?
2 In what stage of the product life cycle do personal computers appear to be? How does this explain Dell's attempt to expand into consumer electronics?
3 How far can Dell widen its product mix without hurting the company's credibility? For example, what might be the impact of new products such as Dell motorcycles or Dell frozen pastries?