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Introduction Of Bmw Company Marketing Essay

Paper Type: Free Essay Subject: Marketing
Wordcount: 4385 words Published: 1st Jan 2015

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BMW cluster, headquartered in Munich, Germany, is one of the mainly victorious multi kind finest motor manufacturers in the globe. BMW is a German motor; motorbike and appliance manufacturers founded in 1916 and have been widely trade since 1969. The company’s slogan in English is “The Ultimate Driving Machine” and Sheer Driving Pleasure”. The original German slogan is “fraud am Fahren,” which translates to “joy in Driving” in English. The corporation produce, and market, a pied choice of senior end active cars and motorcycles. It is also own and make the tiny product and is the parent business of Roll-Royce vehicle Cars. BMW is known for its performance and luxury vehicles. BMW has a global presence with group subsidiaries in 41 countries and over 3000 dealerships and local importers in over 100 countries. BMW is a progressive company with salad of 1.2 million automobile and 101,000 motorbikes in 2008 generating revenue of 53.2 billion euros. It has a combined global workforce of 100,000 employees. In addition to cars and motorcycle, BMW operates an aircraft engine division under the brand name of Rolls Royce. The BMW group also has a strong market position in the motorcycle sector and operates successfully in the area of financial services. The Company operates its own financing company, which offers financing for vehicles. Automobiles accounted for 78% of 2000 revenues; vehicle finance leasing, 18%; motorcycles, 3% and other,1%. UK is the third major souk and second main making base for the BMW group universal, and the only state where BMW group’s three brands – BMW, TINY and Roll-Royce vehicle Cars – are represent.

Q.1: what is marketing, and how does the concept of marketing affect your chosen organisation? Include arguments which highlight the organisation’s marketing process, and the costs and benefits of marketing.

What is marketing?

Marketing is an activity. Marketing activities and strategies result in making products available that satisfy customers while making profits for the companies that offer those products.

Marketing concept.

Marketing focuses on the satisfaction of customer needs, wants and requirement.

The philosophy of marketing needs to be owned by everyone from within the organisation.

Future needs have to be identified and anticipated.

There is normally a focus up on profit an ability, especially in the corporate sector. However, as public sector organisations and not-for-profit organisations adopt the concept of marketing, this need not always be the case

More recent definitions recognize the influence of marketing upon society.

Marketing process.

The marketing course aim to distribute enlarged success in company through better marketing tactic and marketing plan increase. A better marketing progression provide a number of benefits, with more free time, higher visibility, stronger worker skills sets, easier management, reduced duplication of effort, and increased individual and team rewards, and overall, less headaches. This process in turn creates a marketing organisation that’s more reliable, more responsible, with budget.

Under the marketing concept, BMW company find a way to discover unfulfilled customer needs and bring to market product that satisfy those needs. A model can be created to design the process using a targeted sequence of steps:

The customer and market is analysed to identify opportunities.

The market strategy is formulated to yield a value position.

Tactical decisions regarding marketing strategy are made

The marketing plan is implemented and the result is carefully monitored.

Benefits of marketing.

The key promote of promotion is that it enable company to exploit their budding and achieve the punter at the correct time. A right loom to promotion involve sympathetic the client and his/her require identify the genuine wants of the souk. It is forever vital to appreciate bazaar wants, quite than to effort to “power” persons to purchase yours goods and services because you reflect they are enhanced than something else accessible. If the purchaser doesn’t think you, you will not vend to them. It is as simple as that.

A good advertising approach is base on the spot on level of explore in to a market’s path and its key company. You have to spot precisely where your commerce strength fit into its souk, and how it will thrive inside it.

Q.2: What are micro and macro environment elements that influence marketing decision in your organisation?

Anlnternal and corporate analysis in terms of strength, weaknesses, opportunities and threats (SWOT) will assist in gaining an understanding of where BMW is currently in term of strength and where improvement is required with in the business and what outside environment threats it may face as well as what new opportunities are available to the company in the short and medium term.



Diverse ranges of products- BMW, MINI and Rolls-Royce

Strong cash flow position

Increase turnover and trading profits

Strong Balance Sheet

World’s leading Premium Quality Automobile Manufacturer

Brand Awareness

Human resources

Capabilities to turn resources into advantages

Perception of high prices

Customer disinterest

Environmental issues, pollutions

Buyer sophistication and knowledge

Substitute products or technologies



New products

Market shift to globalisation

Innovation & Alliances

Customers demand change to more comfortable and relevantly cheap cars

New Technologies in Automobiles

New & exiting competition

Volatility in Price of Fuel

New legislations

Consequences of the oil crisis

September 11th

Economic recession

Market shift to globalisation

Takeover bids

Far-East Automobile companies expansion

Extremely high competition for customers and resources

Macro environment.

Political factors

Laws and regulations had affected the automobile industry as a whole.

These laws generally revolved around the environment norms that were to be fulfilled by any car industry. Thus the car manufacturers had to take care of the environmental issues during manufacturing of cars.

European Commission proposed binding rules to cut CO2 emission on new cars to 130 gms/km

According to which in 2005 BMW achieved only 40% of their emission target but today BMW groups with its efficient dynamics programme achieved a reduction of average fuel consumption and CO2 rating by 10.2% and has made a greatest progress in terms of efficiency of all car makers in the European automobile market in the year 2008. Extracting maximum driving pleasure from every drop of fuel; is the aim of BMW Efficient dynamics.

Moreover the introduction of congestion charging in London has also had an impact on vehicle usage costs for some motorists and affected the demand for the motor vehicle.

Economic Factors.

Economic factors relate to the exchange rates, economic growth globally and the business setting prevailing in the industry. Following are the economic factors which has affected the automobile industry.

Economic Downturn.

Increase in the cost of oil

Economic downturn.

The automobile industry is badly affected by the economic recession globally. Due to the recession the customers are trying to save more for their future security rather than spending on the luxury cars. Customers spending on the cars was increased by 4% during the year 2003-2007 but year 2008 proves to be very challenging for the motor industry in the UK and the lowest number of new car registration were recorded in the UK and the lowest number of car registration were recorded in the August 2008. Due to this downturn BMW earnings and dividends per share in the stock market also falls which affected the profitability of the company.

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Increase in the cost of Oil.

Rapid increase in the fuel prices is affecting the demand and the buying power of customer. According to BBC News which crude oil prices at 22 year high, motorists are paying out up to £1 a litre at the pumps. Moreover according to Automobile Association research showed that in June 2008, litre of unleaded petrol had achieved an average national price of 118.2 pence per litre, while diesel cost 131.6 pence per litre. He also claimed that the annual coast to the motorist of keeping a car worth between £13,000 and £20,000 on the road now stood at £4,112. The impact of this price hike on the drivers of the UK is 28 million cars are clear and it shows how the increase in oil price is affecting the car industry as a whole. In order to cope up with the present situation and existing demand for more fuel cars, BMW efficient dynamic programme which aims at reducing consumption is proved to be successful.

Social environment factors.

Social factors include the changes in cultures and demographics globally a part from change in the buying pattern and capacity of the customer. Increasing population also has an effect on the car industry. According to the Mintel data, UK population will reach 64 million people by 2013. The strongest growth will be witnessed among the age group 25-34, 45-54 and over 65 age groups. Out of these two age brackets, the 25-34 age groups will be a potential key age group for the used car market where the highest proportion of demand is accounted for by younger adults. The age group 45-54 is a key age group for new and used car demand. Moreover during recession consumers spending priorities also changes and they are doing cost cutting on many areas of their expenditure. But the purchase of a new or second hand car has been one of the few areas to show an increase as a spending priority in 2009. This may increase the demand for the cars in the near future and car industry including BMW will again get a positive response from the existing and new customers.

Technical environment Factors.

With every spin of time technology is also changing which also reflects the consumers buying patterns. Nowadays, people are more concerned with the new and latest technology. In order to cope up with the current demands, BMW efficient dynamic technology tries to stay one step ahead. BMW has launched an I Drive in its all new cars. BMW is also spending a huge amount of money on its research and development department in order to innovate latest techniques like BMW car 2-x communication in their AMULETT project with the aim of improving pedestrian safety and thus creating a more competitive image in the car market.

Legal Environment Factors.

Restrictions and strict pollution norms set up in European market and health and safety rules on all cars by (EURO NCAP) is affecting the whole motor industry. The European New Car Assessment Programme (Euro NCAP) is a European car safety, performance assessment programme. Euro NCAP publishes safety reports on new cars, and award ‘star ratings’ based on the performance of the vehicles in a variety of crash tests, including front, side and pole impact, and impact with pedestrians. The entire car manufacturing companies including BMW has to abide by these legal rules and regulations.

Environment Factors.

With the increasing effect of awareness of global warming and greenhouse effect, people are more diverted towards the use of more eco-friendly cars, hybrid and fuel cars. With the change in consumer taste and preferences the automotive industry has to be more focussed on the changing demand and patterns of the consumers. In order to cope up with the changing behaviour of the consumer, BMW is working on managing resources efficiently and eliminating or recycling all forms of waste wherever possible and thus moving to the hybrid cars. BMW group was the first car manufacturer in the world to create a vehicle Recycling Network.

Q.3: How does your chosen organisation pursue Segmentation, Targeting and Positioning activities? Propose new suggestions based on your findings.

BMW had worn three ladders to targeting which is advertising segmentation, target option, creation position. Let’s see how BMW use segmentation to spot exact trade description. To find additional information BMW at

Geographic segmentation.

Demographic behavioural


Beneficial characteristics of society

Geographically, the major market BMW where they are action more than 65% of auction are Europe & North America and these district are both greatly industrialised locations which grades into tenant are monetarily position to procure high souk cars as they funds returns is added. The demographics of those who are bright to purchase a BMW are men and women aged 30-50 lifetime old. Behaviourally these folks have a winning picture in their brain facing trade cars. They also estimated to wish a faultless current look or activity look, and the sense fine factors of an recognized trader system. The benefits are required by these folks are dominance, act, dependability & excellence.

The figure that BMW gases manages realize over the year is to site its self is on the regulars mind is power. Routine, scientifically complex, value saloon manufacturer. The bazaar where BMW is location them is greatly bloodthirsty motivation being for the aggressive is the number of other vehicle manufacturer that construct cars of a parallel excellence, cost, and picture. The main manufacturer that BMW struggle with are as discussed before to name a few are Mercedes, jaguar, Audi, Ford, Range Rover, Porsche, and etc. most of these are azure hew manufacture use differentiate strategy to create that each of these company relies on dissimilar make imagery to retail their cars. E.g. jaguar is seen as a luxury, dependable and excellence manufacturer that BMW does except on the other give Alfa Romeo is famous for being fashionable and presentation type but untrustworthy car as per the investigate. The position of these company and their brand has been build up over numerous lifetime but BMW has dazed their blot winning the community in an optimistic way with the help of superior community relative and pioneering publicity agitation. This has led to rolling sales expansion throughout the global car market.

When we converse about Product Gratitude BMW is a directly known product forename that has a standing pro its old age habit of excellence. Also many of us see its symbol from a manufacturer; this brand appreciation allows BMW to readdress its wealth from pricey publicity campaign in a greatly bloodthirsty souk. The marketplace in which BMW operate has person seen as superior and reliable regulars.

Q.4: how does the extended marketing mix apply to yours chosen organisation? Analysis and give example?

The Marketing Mix.

Lets considered within the marketing mix can be put under four headings, often referred to as the four ‘P’s:





‘Mix’ is a vital word because every constituent of a diagram can’t be careful in separation. There is incomplete time and capital and decision in one area will probably have a crash away.


The generally central constituent in the selling is the company’s produce because this affords the positive desires required by patrons. For example a car that does not start in the Moring will be like by clients. Marketing manager expand their creation into brand that assist to make a single place in the brain of clients. The current models are:

BMW 3 Series – Sedan, vehicle, adaptable, Touring, dense.

BMW 5 Series – Sedan, Touring

BMW 6 Series – vehicle, adaptable

BMW 7 Series – Sedan

BMW Z4 – Roadster



BMW M – adaptable, vehicle

Each creation goes during what is known as a life cycle procedure. When explore what combine is best matched to the creation. We need to deem where in the life cycle sightsee goods lie which is revealed in the below shape and then depending choose if there is want to make transform in the produce and re-launch.


Although it is beautiful to have all the merchandise inside a collection at the acme of their sales at the similar time, this does make difficulty. BMW knows the meaning of creation sure that not all of its goods are at adulthood at once, as this might effect in the goods start to decline at the same time usually the life cycle has a exacting year when the car lunch and after sure years it on established level where the corporation has to get a little new in that series to dine where client can enjoy the creation to the fullest and with few kind in the car. For example BMW X5 launched at 2000 and then corporation lunched the senior or new description of X5 in 2006, for 3 series its 7 years lifecycle and for 7 years only for the 1st model lifecycle of three merchandise. These are the 3, 5 and 7 Series Saloons. This PLC scheme not only helps to ensure more steady profits, but also allow for the growth of substitute produce on a steady base. BMW has also been growing its selection of late and this can be seen by the company of some new product launch in the last few years. The above goods are all moderately established. Many of them have been creature affected for many years now with some redesigns and re-launches.

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2) Price.

BMW cost variety is from about £16,000 to £60,000 minus. There are many factor that can influence their car price such as mechanism size, vehicle activity account etc. let’s get an example of the price such as mechanism dimension has been used by BMW for the 3- series is opposition leaning price. Most of the investigate show that all other competitor such as VW, Audi, and Alfa Romeo etc. in the 3 Series manufacture price sore not so vital and create the main revenue is not as required as it would be for a lesser business.




Price from: £21,035


Price from £25,955


Price from £30,915


Price from £22,215

3) Placement.

BMW use better market dealership and significant for non merchant network countries they have four car developed vegetation in the UK. There are additional than 156 dealers in the UK who are franchise to retail BMW cars, moreover 148 dealers are franchised to sell Minis. Universal BMW work in more than 100 dissimilar countries with about 4,000 plus dealers which are authorised to retail both new and second-hand cars, parts and after sales service goods.

Pattern of allocation for BMW is shown below in the drawing which followed by the business

Producer >>>>>Dealers>>>>>>Customers

4) Promotion.

BMW has forever focused completely on their cars with same promotion business, WCRS being the worn since 1979. A broad variety of publicity is used by this organization such as TV for branding campaign and new carriage launches, the press with sensationalist weekend dye addition, regional publication and magazines, outside campaign, sales fiction, fliers etc. publicity Campaigns/Slogans used by the corporation in the past BMW organization is the ‘James Bond’ film from 1983,1994,1997 and 1999.

The four C’S:

Customer solution:

BMW strives hard to find out what their customer need are and works hard to wards fulfilling them. They believe that it is important to satisfy customer needs to keep customers happy and satisfied.

customer cost

BMW also realizes that all the costs taken to design their cars are also to be included in the cost of the car. They have retailers selling their cars in different regions/countries at different prices based on the acceptable customer cost for that region.


BMW does not have online purchase system but due to the high price of their products but they have online drive test appointment system for the 7 series using which doesn’t need to go to the store to test drive car, hence making it more convenient.


BMW has 24hours hotline number to help in communication with the company exclusively for certain model customers. They have a website for online communication. They believe in listening to customers when they are “with” you.

Q.5: Identify different types of buyer behaviours and how they apply to your chosen organisation?

Customer trade performance is the production of how person or domestic customers behave or the choice creation on business any merchandise or services. Customer trade activities is a significant part of promotion, which studies the reason of why, when where, what and how the customers are behave on their trade decision. customer purchaser actions depends on dissimilar types of marketing (product place, price, promotion, physical evidence, public, purchase) and other stimulus ( Economic, Technological, Political and Cultural) these factors in fluencies the customer black box to make response for creation choice about selecting goods, brand option, price etc.

Cultural, social, individual and mental these four factors have great power on customer buyer performance. Person wants, insight, values, performance erudite from culture, relations other institution. Social factor consists of a person’s orientation collection relations, friend’s organisations. Private factor is incorporated age of lifecycle, financial circumstances, vocation, qualities and other individual kind power buyer choice course. Different mental factors like inspiration, perception, attitude, conviction have pressure on customer export conclusion.

Q.6: How does the extended marketing mix apply to different marketing segments? Compare consumer vs. business markets, and International vs. domestic markets.



Each client has identical worth and represent a small % of proceeds

There are a minute figure of big clientele that description for a large % of proceeds

Sales are completed distantly, the producer doesn’t assemble the client

Sales are completed myself, the producer gets to know the purchaser

Goods are the equal for all clients. The service ingredient is low

Goods are adapted for unlike clients. Service is very valued

purchase are made for private use picture is imperative for its own sake

Purchases are completed for others to use icon is imperative where it adds value to clientele

The buy occasion is not theme to loving and arbitration

The acquire occasion is conduct capably and includes tender and arbitration

The swap is one of deal. There is no long time view (monetary services vary)

The switch is habitually one of tactical aim. There is the latent for long term worth

The buyer is usually the consumer

The buyer is usually an integrator some down the provide series the consumer

Domestic market and international market.



Domestic marketing is the production, promotion, distribution and sales of goods and services in a local market

International market is the production, promotion, distribution, and sale of goods and services in a global market.

Domestic marketing is less risky and easier to conduct

International marketing is more risky and more complex

Domestic marketing requires lesser financial resources

International marketing requires huge financial resources

Domestic marketing deals with only a single market

International marketing deal with several different countries markets.

Domestic market deal only with the laws and regulations of one country

International marketing is more challenging and requires more commitment form the company because of the uncertainty and different in laws and regulations in the global market.

Domestic marketing deals only with one set of consumers

International marketing deals with different types of consumers with different rates and tastes

Domestic marketing, the company can have the same policies and strategies

International marketing requires different strategies in the promotion of their products


It has taken a lot of referencing and researching for me to write this report and I have learnt a lot from this report, I started off with very little knowledge about this topic and worked my way through the assignment and I would conclude that BMW is a very powerful name in the automobile industry due to its reputation of providing high quality products and services. BMW and person actor has yearly shown burly monetary results and has reserved its market shares. This become of curiosity to study more greatly, in direct to find the factor last a unbeaten concern and burly product. Scrutiny the progress of BMW through the past five years. Not only are the monetary account taken into reflection that BMW is the most flourishing vehicle producer in top sector. BMW is a well known and greatly cherished brand and has high miscellany in the merchandise range. BMW possesses high inner aptitude and the corporation develop a big part of the car by themselves. The rising market in South East Asia, Russia Eastern Europe and South America has shown obvious swelling growth. Produce, transport and raw fabric outlay have both dampened margins and affected the export power of customers like as lofty oil price.


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