C. Objectives and Issues
1. Statement of marketing
objective(s)
[1]Marketing
strategies have been assigned a great deal of significance by many contemporary
commercial organizations and BMW & series Model is no exception. It is
through marketing objectives that commercial firms are able to sensitize their
new products and innovative services to the needs of their customers. The
marketing strategy of the company is based on the principle of providing
leadership by ingenuity. BMW does not just serve any consumers; through
segmentation of premiums the company focuses on a certain premium pool of
clients and concentrates on them. In addition to this, the company is also very
committed to the process of emotional advertisement as a marketing strategy.
This attracts customers by influencing their emotions and consequently their
consumption patterns.
2. Issues that may hinder marketing
objectives
[2]The
main strategy of the company is its ability to concentrate on a single product
and offer the consumer with excellence and quality. Nevertheless, BMW has a
tendency to target a clientele pool that is inclined towards luxurious quality
products which are very effective. Packages of such qualities, especially in
the motor vehicle industries, do not come cheap. The BMW 7 Series Model is
therefore meant for the very economically ell off consumer; as a consequence,
the company is faced with challenges in regards to making its products
available to consumers of different social economic backgrounds.
D. Marketing Strategy
Recommendations
1. Positioning strategy
Then
BMW Company has over the years managed to portray itself as the producer of
superior, excellent quality and mechanically sophisticated products. Other than
the strategy of premium marketing by BMW, the company has instigated some
transformations in its position strategy. This has been achieved by the
conduction of a paradigm change from the company’s initial standing as ‘the ultimate driving machine’ to ‘sheer driving pleasure’[3].
This shift in position is aimed at enabling the company to progressively
transfer its focus from emphasizing the superiority of their products in terms
of performance, to the participation of its consumers as well as a special
thoughtfulness for the psychological needs of its clientele pool. Nevertheless,
and in spite of the position that BMW has created for itself in the market, it
faces stiff competition from other manufacturers such as Ranger Rover, Mercedes
and Ford.
2. Marketing mix strategy
[4]Marketing
mixes are usually disambiguated by an evaluation of the product in question,
the promotions done for it as well as its price and place. The marketing mix
applied by the BMW 7 Series Model has been one that puts greater focus on the
premium segments; this was necessary if the company was dedicated to making its
product accessible to individuals from the different socioeconomic walks of
life.
3. Product and branding strategy
There are a number of BMW series that are currently
available to consumers. The brand of a product is a very significant component
which determines how the product will perform in the market. The BMW brand is a
popular and well known trademark which has taken a number of years to
establish. By investing heavily in processes of advertising and promotion of
good public relations as well as activities depicting corporate social
responsibility, the BMW Company continues to achieve great success in the
global automobile industry.
Pricing and Distribution strategy
The
cost of BMW products is usually between £16,000 to above £60,000. The determinants of cost include factors such
as the size of the engine. More often that not the BMW company make use of a
pricing strategy referred to as the Competition-oriented pricing; this is
mostly due to the fact that the BMW is a big established company whose
expenditures are not quite as significant as they would be in smaller
manufacturing companies. [5]The
BMW Company has business operations in a number of regions in the world such as
the United States of America, Germany, The United Kingdom, China, Italy, Japan,
South Africa, Spain, France and Belgium. As already stated, the BMW group is an
international which is very sensitive to competition and utilizes the dynamics
of investigative studies, production and rigorous sales activities by a
globally distributed work force. The BMW business units are configured in a
manner which enables them to operate in an integrated model.
Marketing communications strategy
(push/pull)
The
BMW 7Series Model has been very committed in its inclination towards the
communication model which brings together the concepts of psychologically
arousing form of advertising and the above average quality of its products in
terms of performance. The communicative technique that has been applied by the
BMW Company is therefore that which appeals emotionally to the targeted market
segment and influences them to purchase the company’s products. [6]One
such example is the company’s move in the last half a decade of the 20th
century when the Z8 vehicle was depicted in a 1996 James Bond movie entitled Golden Eye.
E. Action Programs
1.
IMC
[7]IMC
refers to integrated marketing communications strategy. The four aspects of IMC
are public relations, promotion of products through sales, utilization of the
various advertising techniques and straight forward marketing endeavors. The
BMW Company has indicated tendencies towards applying an integrated form of
marketing communication in which all four mentioned elements are usually
applied. While general advertising is very effective in terms of increasing the
impact of the company’s brands, direct marketing aids in establishing an
interactive association the company’s clientele pool. Sales promotion and public
relations are also beneficial for both the company and its customers.
2. Message design, content, and
structure
The
BMW 7 Series Models is very appealing. Its structure includes newly designed headlights;
a center speaker which is extensive and better insulated for audio comfort and
better designed instrument and control displays.
3. Promotion mix tools
For
a number of years now, since 1979 to be precise, the BMW Company has made use
of the same company, WRCS, for the marketing and promotion of the company’s
products. The WRCS makes use of a multiplicity of promotion and advertisement
techniques such as brochures, television broadcasts, tabloids, magazines and
external sales crusades. The slogan adopted for the advertising of the BMW 7
Series Model is ‘Designed for Peace of
Mind, Not Just Peace and Quiet’.
F. Budgets
[8]The
planning strategies as well as business operations in the BMW Company are self-financing;
it therefore manages its expenditure by use of the proceeds accrued from its
business operations. The company’s budget for every year is consequently
determined by the proceeds accrued in the previous year. The financial
department which is in charge of monetary issues in the BMW Company usually
constructs budget structures for investments on twelve years duration.
G. Controls
1. Metrics needed to monitor
marketing plan progress
[9]A
number of metrics may be employed in measuring the progress of the market plan.
The most commonly utilized structures of controls include instruments of
customer relationship management, predictions of expected sales and marketing
operations management. Many times the control metrics may sometimes be tied to
the company’s inventory or supply chain processes. The valuation of BMW’s
brands is also a very important aspect of its marketing management procedures.
Work Cited
Bernhard
Fleischmann Sonja Ferber and Peter Henrich: Strategic
Planning of BMW’s Global
Production
Network. Interfaces, Vol. 36, No. 3 (2006) pp. 194–208
BMW Group,
Retrieved on 17th August 2012 from
Huizhong Bei: Marketing
Management. University of Bradford module Assignment. (n.d) pp. 10-
16
Park
Young-ryeol, German Automaker Targets Premium Segment Only
and Succeeds, The
Korea Times Business Focus (2011) Paragraph 1-16
Susan
K. Jones: Creative Strategy in Integrated Marketing
Communications.
(n.d) pp. 2-8
[1] Park
Young-ryeol, German Automaker Targets Premium Segment Only
and Succeeds, The Korea
Times Business Focus (2011) Paragraph 3
[2] Park
Young-ryeol, German Automaker Targets Premium Segment Only
and Succeeds, The Korea
Times Business Focus (2011) Paragraph 6
[3] Park
Young-ryeol, German Automaker Targets Premium Segment Only
and Succeeds, The Korea
Times Business Focus (2011) Paragraph 16
[4] Park
Young-ryeol, German Automaker Targets Premium Segment Only
and Succeeds, The Korea
Times Business Focus (2011) Paragraph 5
[5]
Bernhard
Fleischmann Sonja Ferber and Peter Henrich: Strategic
Planning of BMW’s Global Production Network. Interfaces, Vol. 36, No. 3
(2006) pp. 199
[6] Park
Young-ryeol, German Automaker Targets Premium Segment Only
and Succeeds, The Korea
Times Business Focus (2011) Paragraph
[7] Susan
K. Jones: Creative Strategy in Integrated Marketing
Communications.
(n.d) pp. 2
[8]
Bernhard
Fleischmann Sonja Ferber and Peter Henrich: Strategic
Planning of BMW’s Global Production Network. Interfaces, Vol. 36, No. 3
(2006) pp. 201
[9] Huizhong Bei: Marketing
Management. University of Bradford module Assignment. (n.d) pp. 10-16
No comments:
Post a Comment