Recent Marketing and Operational Activities

Analyzing CDW Corporation

Prepared for
Professor Johnson St. Cloud State University MKTG 404 Distribution Management

Prepared by
Joseph Winch

November 7, 2011

MKTG 404: Analyzing CDW Corp Marketing and Operational Activities

Contents

Introduction ...........................................................................................................................

Realizing Market Trends to Deliver Advanced Solutions .......................................................

Empowering the Voice of the Consumer ...............................................................................

Investing in Human Capital to become The People Who Get It ............................................

Conclusion ..............................................................................................................................

Personal Thoughts .................................................................................................................

Works Cited ............................................................................................................................

MKTG 404: Analyzing CDW Corp Marketing and Operational Activities

Introduction
CDW Corporation is a technology services and solutions provider that focuses on small to large businesses, government and educational sectors. They are currently ranked by Forbes as the 38th largest privately held company, employing more than 6,300 employees ranging from specialized account managers to expert technical engineers. CDW has continually embraced changes in industry needs by expanding from retail computer sales into offering fully-integrated technology solutions and consulting service provider (CDW).

Recognizing Market Trends to Deliver Advanced Solutions

The daily operations of the government, educational providers, and businesses have changed dramatically since the introduction of computers and other advanced technologies. One technology that CDW is considered an expert in is virtualization. Simply stated, virtualization allows the same computer workload to function with virtual machines, over fewer servers. It is designed to improve technology utilization and allow for reduced size and cost of data-centers (Kotsovinos). By remaining nimble and flexible to changes in technology such as virtualization, CDW has risen to become a trusted source for technology solutions and expertise. For example, in recent market research CDW discovered that server virtualization technology is beginning to mature with more than 90 percent of businesses [are] implementing this new technology at some level (ComputerUser). This proves that businesses are adapting to the changes in technology; increasing the need for high efficiency computing and virtualization technology that CDW provides.

Recognizing and understanding trends in the industry is only one of CDWs market tactics; where they really shine is their execution of solution delivery. One of their biggest achievements

MKTG 404: Analyzing CDW Corp Marketing and Operational Activities

was presented in front 111 million people at the 2011 NFL Super Bowl, the Dallas Cowboys Stadium. CDW counted on their execution capabilities and strategic partnerships with Cisco, HP, Microsoft and major wireless carriers to implement what is now considered the most technologically advanced stadium in the world (Bajarin). They were able to assist the Dallas Cowboys owner, Jerry Jones, in reducing 616 servers across three data-centers down to only 16 servers in one central, fully-scalable data-center. The stadium now serves as a centerpiece for CDW business-to-business marketing as they are featured on the Dallas Cowboys website with a testimonial video and explanation of the benefits CDW provided in the area of technology (DallasCowboys.com).

Empowering the Voice of the Consumer

As technology trends continue to change in the market, as does the methods in which companies gather information about the customers in the markets they serve. Social communities, like Twitter and Facebook, have emerged as an important source of unfiltered and honest feedback from consumers. CDW monitors these broader communities to mine data and allows them to directly interact with their customer base (Nedelka).

In addition to using the public facing online communities to dig for consumer information, CDW has had a six-year relationship with the vendor Communispace; fostering an invite-only online community, specifically targeted at capturing the voice of the consumer (CRM Magazine). The Communispace community acts as a multi-faceted business tool that aids in market segmentation, targeting, research and customer relationship management. The communities allow for members to share thoughts on a variety of topics involving their buying habits, spending plans and business challenges (CRM Magazine).

MKTG 404: Analyzing CDW Corp Marketing and Operational Activities

CDWs online community involvement has attracted positive attention in recent years. Along with American Express and Dell, CDW was one of three winners to attain the 2010 Forrester Research Voice of the Customer Award (O'Brien). CDW has been tailoring this program since the initiation in 1999, to create an award-winning customer loyalty program that includes a network of over one-million customers. The program includes relevant business touch-points, aligned communication, interactive collaboration, strategic action and proven results of success through maintaining relationships and increased sales figures (D'Antonio). CDW utilizes their customer community to gain an advantage over the competition by offering further insight into the industries they serve and successfully match technology solutions to essential business needs.

Investing in Human Capital to become The People Who Get It

The technology industry is a fast-cycle market in which competitive advantages are not sustainable forever. Technologies change, resulting in the needs of consumers to change, driving the need for CDW to keep an attentive ear to the pulse of the industry. CDWs perfect picture of success is having the most knowledge and responsive experts in the industry and to accomplish that goal, they realized continual training and investment in their human capital was required; thus the creation of a development and training program called Sales Management Capability (SalesandMarketing.com). The program is designed to strengthen the sales force by offering structured training sessions focusing on customer experience, customer analysis, performance metrics, competency and leadership (SalesandMarketing.com).

CDW noticed that their sales and account management program was going to become a success and started to involve the account managers in collaboration with their Communispace online customer network. Clients in the community network are segmented into seven categories, sales

MKTG 404: Analyzing CDW Corp Marketing and Operational Activities

account managers are assigned to each client in the category and remain the point-person to maintain relationships and serve the needs revealed by the community (CRM Magazine). Immersing the account managers in the culture of the online community allows CDW to have a clearer understanding of what is needed in the industry. Account managers regularly survey the distribution channel members so they are able to act knowledgeably in response to questions and feedback. Personalizing service by offering veteran sales professional allows CDW to retain the image of expert power and preserve channel relationships.

This self-portrayed and well established image of expertise has driven CDWs most recent advertising campaign, rightly deemed as The People Who Get It (AllBusiness). A trademark was filed for The People Who Get It on August 31, 2010 and has since launched a YouTube channel featuring humorous commercials related to CDW possessing the expertise, to provide the right technology needs to the right consumers (Trademarkia). Similar advertising campaigns that support comparable slogans appeared in the PGA Tour. The endorsement contract with the PGA Tour is scheduled to continue through the 2012 season (Sports Business Daily).

Conclusion
CDW started in the retail computer space and has grown to become a top player in the fast-cycle market of information technology services and solutions; and these solutions constantly change and continue to increase in complexity. CDW has consistently proven to respond nimbly to these changes with both grace and agility. Since the introduction of Communispace, CDW has placed extremely knowledge sales staff directly in the hands of their consumers. This has caused as increase in customer lifetime value year after year (CRM Magazine). All marketing and

MKTG 404: Analyzing CDW Corp Marketing and Operational Activities

operational activities are encompassed by the company mantra, everything revolves around the customer (Sales and Marketing Management).

Personal Thoughts
Through my research I discovered copious amounts of information that I did not know about CDW Corporation. Many businesses fail to realize that industries that they operate in have a natural speed or cycle that they move. CDW has kept a watchful eye on the industry, the pace at which it moves and how they can effectively respond to changes in the environment. They are an intelligent technology company, and in The Information Age, everyone needs a little help understanding what new technologies are and how we can use them to make our lives easier; CDW provides that understanding.

CDWs online communities include over a million customers and business partners that continually offer opinions and feedback that drive business decisions, increase sales and improve overall satisfaction. Not many other companies can say that they are able to tap into the minds of the consumer quite like the ability of CDW. Supporting this online community is a host of skilled and dedicated account managers that focus directly on a particular type of consumer, providing a superior service experience that I havent seen before in business-to-business relations.

Overall I think CDW is an extremely innovative and knowledgeable company with a lot of potential to succeed; so long as they continue to push for high achievement and remain immersed in the minds of their consumers.

MKTG 404: Analyzing CDW Corp Marketing and Operational Activities

Works Cited
"About CDW - Who We Are." CDW. Web. 14 Sept. 2011. <http://www.cdw.com/content/about/who-weare.asp>. "CASE STUDY: CDW." Sales and Marketing Management 1 Aug. 2009: ProQuest. Web. 02 Nov. 2011. (as found in ABI/INFORM Research) "Case Study: How CDW Trains Sales Managers for Success." SalesAndMarketing.com. Sales and Marketing Management, 30 July 2010. Web. 01 Oct. 2011. <http://www.salesandmarketing.com/article/casestudy-how-cdw-trains-sales-managers-success>. "CDW Launches People Who Get IT[TM] Integrated Branding Campaign." AllBusiness. D & B Company, 24 Jan. 2011. Web. 03 Nov. 2011. <http://www.allbusiness.com/company-activitiesmanagement/product-management-branding/15461511-1.html>. "CDW Study: Market Is Virtualization Friendly, Yet Concerns Remain." ComputerUser. 15 July 2010. Web. 15 Oct. 2011. <http://www.computeruser.com/articles/cdw-study-market-is-virtualization-friendlyyet-concerns-remain.html>. "Everything Is Bigger In Texas: Even IT Projects." DallasCowboys.com - Official Site of the Dallas Cowboys. Jan. 2011. Web. 02 Nov. 2011. <http://www.dallascowboys.com/cdw/>. PEOPLE WHO GET IT. - Reviews & Brand Information - CDW LLC Vernon Hills, IL - Serial Number: 85119456." Trademarkia.com. Trademarkia, 31 Aug. 2010. Web. 01 Nov. 2011. <http://www.trademarkia.com/people-who-get-it-85119456.html>. "The 2010 CRM Elite." CRM Magazine 14.8 (2010): 45-49. Web. 02 Nov. 2011. (as found in Business Source Premier) Bajarin, Tim. "A Very High-Tech Super Bowl." PCMag.com. PC Magazine, 04 Feb. 2011. Web. 15 Oct. 2011. <http://www.pcmag.com/article2/0,2817,2379330,00.asp#fbid=WbSQKHpK9Yj>. D'Antonio, Mila. "Reporter's Notebook: CDW Formalizes Its VOC Program." 1 to 1 Media. Peppers and Rogers Group, 4 July 2011. Web. 06 Nov. 2011. <http://www.1to1media.com/view.aspx?DocID=32984>. Kotsovinos, Evangelos. "Virtualization: Blessing Or Curse?." Communications Of The ACM 54.1 (2011): 6165. Web. 02 Nov. 2011. (as found in Business Source Premier) Nedelka, Jeremy. " Reporter's Notebook: Listening to Social Consumers." 1 to 1 Media. Peppers and Rogers Group, 22 Dec. 2009. Web. 06 Nov. 2011. <http://www.1to1media.com/View.aspx?docid=32095>. O'Brien, Kaitlin. "Best Practices: Using Voice of the Customer to Create Customer Experience Success." 1 to 1 Media. Peppers and Rogers Group, 12 July 2010. Web. 02 Nov. 2011. <http://www.1to1media.com/view.aspx?DocID=32432>. Show, John. "CDW To Feature PGA Tour Exec In New Series Of Golf-Themed Ads." Sports Business Daily. 06 Apr. 2009. Web. 15 Oct. 2011. <http://www.sportsbusinessdaily.com/Daily/Issues/2009/04/Issue138/Sponsorships-Advertising-Marketing/CDW-To-Feature-PGA-Tour-Exec-In-New-Series-Of-GolfThemed-Ads.aspx?hl=PGA%20Tour&sc=0>.