Marketing message as the ultimate driving machine

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marketing message as “the ultimate driving machine”, which is now 40 years old. BMW’s marketing strategy can be summarized in the phrase ‘unpretentious exclusivity’. Paul Hanemann has been responsible for the BMW brand for years, and known as being ‘Mr. BMW’ in Germany, found a way to fill a psychological gap in the market as opposed to just a product gap. He expresses the difference he perceived between Mercedes and BMW like this: “If a businessman has made something of his life in Germany and wants to show his neighbor that he is someone to be reckoned with, his only choice is a Mercedes. If, however, he has made something of his life but feels no need to show off, then he buys a BMW.” BMW regularly undergoes research into their customer’s professions and hobbies. The information is used everywhere, from the design and development of the cars, through their premium pricing and all elements of the marketing mix. In the late 1990’s, BMW detected the attitudes and values of luxury-car buyers were changing, with more emphasis on family and vacation time. These new high-end consumers included baby boomers, the middle-aged who had started families, and successful professionals. Research showed these people would want more vehicle choices and more eye-catching designs to suit their changing lifestyles. Their future was at stake, but BMW made an ambitious gamble: they invested heavily on expanding its single, narrow product line into a whole spectrum of premium cars. It even MKTG 396v8 Assignment 2 February 2, 2018
acquired Rolls Royce and re-launched the Mini. BMW put their brand on everything, including sport- utility vehicles, convertibles, roadsters and, most recently, a compact car (Positioning & Target Consumers, 2008). BMW knows its target market extremely well. It does not try to compete in each segment of the car industry, but only targets the premium-priced cars. It also stays away from the high-volume market of middle-class vehicles and focuses firmly on the luxury sector. The Mini, for example, costs about $3,000 more than a Honda Civic, but is smaller. This targeting strategy has made BMW one of the world’s most profitable car makers, despite its relatively small size. Mark breakdown: - 6 marks for each brand positioning identification ( 2x 6 = 12 marks) - 12 marks for a relevant explanation Question 4 (36 marks) Give an overview of the pricing, marketing communications, and distribution strategies of each of the two brands. What would you keep or change in these three domains to better serve what you believe to be the target market (as per your answer to Question 1) of each of these two brands and to strengthen their competitive position in the market? Explain your answer.

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