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Running head: MHRV 6451-14O-4V20-S2, AdvancedMarketing1Advanced MarketingColumbia Southern UniversityUnit II AssigmentBMW Case Study
MHRV 6451-14O-4V20-S2, AdvancedMarketing Unit IIEffective segmentation strategy helps BMW win in the marketBMW segmentation can be viewed as the foundation for the success of the marketingeffort, helping the company in wining significant share in the luxury car market. In 2017, BMWranked second in the world’s luxury car manufacturer, after Mercedes with 2.09 million carssold. This is because they are able to effectively target different customer segments at the sametime. But more important is the depth of their understanding of STP (Segmentation - Targeting -Positioning). The process is conducted as follow:Market segmentation, or segmentation, is the first step in this process, so simplyunderstand that the company is grouping consumers in the market based on similarities in needs,desires or some criteria. about personality, demographics, etc. After this step, the marketers willprobably see more clearly the differences between demand groups and where the companyshould deploy. Or rather, segmentation is where the company begin to create the value thecustomers need because it now knows what type of customers will need.[ CITATION GAR \l1033 ]Targeting: The days of mass marketing are over, but now brands are focusing more ontheir target audience. If the market has a customer groups, there will be certain needs to meet butsuch a perfect product does not exist. How well a specific product the company creates will onlycover one or a few market segments. So, the company will need to choose which segment will bethe target market. This is the selection of the target market.[ CITATION GAR \l 1033 ]Product positioninghere is about giving, communicating about products, inculcating inconsumers' minds about unique, distinct and outstanding values compared to competitors anddifferences in each segment. different. The company can even offer customized versions for eachtarget segment, if possible.Unlike most companies in the market, BMW recognizes a very simple truth that manypeople confuse that segments are not a group of people but a set of characteristics that describe agroup of people.BMW is well known for its famous 3-car series BMW 3 series, BMW 5 series and BMW7 series. And with each car model, the target customer naturally will also be different then.
MHRV 6451-14O-4V20-S2, AdvancedMarketing Unit IIWith the BMW 3 series, the segment is aimed at people in their 30s and 40s, a youngspecialist working at a private company. Despite not having achieved many great achievements,there are still many ambitions. This line has a reasonable price but has a sports car design, a sleekappearance while the interior is more focused on the proper function of the classic Germanmodel.