Monday, January 28, 2013

BMW 7 SERIES MODEL


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