Dell 1998 Annual Report Download - page 6

SALES AND MARKETING
The Company's customers range from large corporations, government agencies and
medical and educational institutions to small businesses and individuals. In
general, the Company uses similar sales and marketing approaches across all
customer groups, as demand levels for each customer group are principally driven
by similar changes in market prices and overall general economic conditions.
Within each region, the Company has divided its sales and marketing forces among
the various customer groups to better meet each customer group's specific needs.
No single customer accounted for more than 10% of the Company's consolidated net
revenues during any of the last three fiscal years.
Relationship Customers
The Company has established a broad range of business based on continuing
relationships with large corporations, governmental, medical and educational
institutions and small-to-medium businesses. The Company maintains a field sales
force throughout the world to call on business and institutional customers and
prospects. The Company develops direct sales marketing programs and services
specifically geared to these relationship customers. For large customers,
dedicated account teams, consisting of sales, customer service and technical
support representatives, form long-term customer relationships to provide each
customer with a single source of assistance on various issues, including
technology needs assessment; system configuration; order placement; lifecycle
cost management; technology transition planning; installation assistance and
project management; and detailed product, service and financial reporting. For
customers with in-house maintenance organizations, the Company offers a variety
of programs, including specialized computer training programs, a repair parts
assistance program and other customized programs to provide access to the
Company's technical support team. Customized product delivery and service
programs are available on a worldwide basis. See "Item 1 -- Business -- Service
and Support."
For multinational corporate customers, the Company offers several programs
designed to provide global capability, support and coordination. Through these
programs, the Company can provide single points of contact and accountability
with global account specialists, special global pricing, consistent service and
support programs across global regions and access to central purchasing
facilities.
The Company also maintains specific sales and marketing programs targeted at
federal, state and local governmental agencies. The Company maintains account
teams (consisting of sales representatives, K12 and higher education sales
representatives, health care sales representatives and technical support
representatives) dedicated to specific governmental markets. The Company holds a
U.S. General Services Administration Schedule contract, through which it sells
to U.S. federal governmental agencies.
Transactional Customers
The Company has established a significant base of business among small-to-medium
businesses and individuals. The Company markets its products and services to
these customers by advertising in trade and general business publications and by
mailing a broad range of direct marketing
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publications, such as promotional pieces, catalogs and customer newsletters. The
Company believes these customers value its ability to provide reliable,
custom-built computer systems at competitive prices, knowledgeable sales
assistance, post-sale support and on-site service offerings.
Internet Customers
Continuing from fiscal year 1998, an increasing portion of the Company's
business is being conducted via the Internet. Through the Company's World Wide
Web site at www.dell.com, customers and potential customers can access a wide
range of information about the Company's product offerings, can configure and
purchase systems on-line and can access volumes of support and technical
information. As of March 31, 1999, the Company was receiving in excess of two
million visits per week to www.dell.com, where it maintains 44 country-specific
sites.
The Company also utilizes the Internet to enhance the direct relationships with
its customers. The Company designs and implements custom Internet sites, called
Premier Pages, for various corporate and institutional customers, allowing these
customers to simplify and accelerate procurement and support processes. Through
these custom sites, the Company offers the customer paperless purchase orders,
approved product configurations, global pricing, real-time order tracking,
purchasing history and account team information. The Company currently provides
more than 15,000 Premier Pages. The Company also provides an on-line "virtual
account executive" for its small business customers. And, for all customers, the
Company provides a spare-parts ordering system and a "virtual help desk"
featuring natural-language search capabilities and direct access to more than
50,000 pages of technical-support data.