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Running Head: BMW CASE STUDY1Unit IV Case Study - BMWSandra JenkinsColumbia Southern UniversityMBA 5501 – Advanced MarketingDr. Jon CrispinDecember 1st, 2020
BMW CASE STUDY2HistoryBayerische Motoren Werke AG, or BMW for short, is a German automobile manufacturer known world-wide for selling luxury vehicles and motorcycles. Founded in 1916, BMW originally manufactured aircrafts and airplane engines. In 1928, the company acquired the Fahrzeugfabrik Eisenach (Vehicle Factory of Eisenach) and it is then that the organization diversified into car manufacturing. Fahrzeugfabrik Eisenach built the Austin 7 for the British car manufacturer Austin and the first BMW was a rebranded Austin 7 called the BMW Dixi and was produced between 1927 and 1929. The first motorcycle, the BMW R 32, was produced in 1923.Figure 1. BMW Dixi. Retrieved from Figure 2. BMW R 32. Retrieved from .com/en/classic-heart/classic-heart-pool/classic-heart/BMW- R32.htmlBMW soon started expanding its line of cars with a focus on sports cars and luxury vehicles which is what it still focuses on today. So how did BMW manage to develop one of the most esteemed automobile brands of our times? The following case study aims to shed some light on the marketing strategies the world’s leading manufacturer of premium automobiles utilizes to remain one of the top players in its field.
BMW CASE STUDY3Part IThe Buying Decision Process at BMWKotler & Keller (2016) describe the consumer buying process as the following five stages: 1.Problem Recognition– this is the point in the purchasing process when the consumer identifies the need or the desire to purchase a new vehicle. While a marketer does not create the actual need, marketers can promote the desire for a specific product. By effectively marketing the BMW brand, BMW can create the desire to own a BMW. 2.Information Search– in this stage of the process, the consumer will research information on cars to narrow down which vehicles will suit their specific needs. This information is usually retrieved from various sources such as word of mouth, advertising, reviews from individuals or consumer organizations like J.D. Power or consumerreports.org , from various websites like auto manufacturers and car dealerships, and last but not least, consumers may seek out dealerships to experience a vehicle first-hand by examining the car in person and test-driving it. This step helps the consumer to narrow down their choices of suitable vehicles. BMW consistently gets high ratings from consumer organizations and BMW customers alike. An approximate 85% of all BMW owners in the United States would recommend the brand to a friend (BMW Group, 2012).3.Evaluation of Alternatives– during this stage, the consumer compares the suitable choices based on factors such as design, fuel efficiency, performance, and price. More recently, manyconsumers are also searching for vehicles that leave a lesser carbon footprint, such as electricor hybrid vehicles. BMW offers a variety of vehicles that speak to a range of consumers by