Marketing Process Of BMW

merchandising Process Of BMWBMW 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 dupe been widely trade since 1969. The companys slogan in incline 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 potbelly stove produce, and market, a pied choice of senior end active railroad gondola cars and motorcycles. It is also own and make the tiny product and is the p argonnt business of Roll-Royce vehicle Cars. BMW is cognise for its per systema skeletaleance and luxury vehicles. BMW has a global presence with crowd subsidiaries in 41 countries and over 3000 dealerships and local importers in over 100 countries. BMW is a liberalist company with salad of 1.2 million automobile and 101,000 motorbikes in 2008 generating reven ue 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 low the brand name of Rolls Royce. The BMW group also has a strong market position in the motorcycle sector and operates successfully in the atomic number 18a of monetary services. The Company operates its own financing company, which offers financing for vehicles. travels accounted for 78% of 2000 revenues vehicle finance leasing, 18% motorcycles, 3% and another(prenominal), 1%. UK is the third major souk and second main fashioning base for the BMW group universal, and the completely state where BMW groups three brands BMW, TINY and Roll-Royce vehicle Cars are represent.Chapter 1.1.1 What is merchandise?Marketing is a communal prey by which someone and group acquire what they want and want during creating, offering, and liber on the wholey exchanging goods and services of worth with former. (Kotler, 1991)1.2 Mark eting concept.The marketing concepts of BMW are as follow.Marketing foc utilizations on the satisfaction of customer need, wants and requirement.The philosophy of marketing needs to be owned by everyone from within the institution.Future needs stupefy to be identified and anticipated.There is normally a focus up on profit ability, especially in the corporate sector. However, as public sector organisations and not-for-profit organisations adopt the concept of marketing, this need not invariably be the caseMore recent definitions recognize the influence of marketing upon society.1.3 Marketing military operation of BMWMarketing process of BMW are as trail.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, mellower visibility, stronger worker skills sets, easier management, reduced duplication of causal agent, and increase d individual and team rewards, and overall, less headaches. This process in turn creates a marketing organisation thats more reliable, more responsible, with budget.Under the marketing concept, BMW company find a way to discover unrealised customer needs and bring to market product that satisfy those needs. A model can be created to design the process using a targeted term of stepsThe customer and market is analysed to identify opportunities.The market strategy is formulated to yield a value position.Tactical decisions regarding marketing strategy are makeThe marketing plan is implemented and the result is carefully monitored.1.4 Benefits of marketing.The benefit of marketing is that it enables company to exploit their budding and achieve the punter at the correct time. A right loom to advancement involve sympathetic the client and their require identify the genuine wants of the souk. It is forever vital to appreciate bazaar wants, quite than to effort to power persons to purchas e yours goods and services because you reflect they are enhanced than something else accessible. If the vendee doesnt think you, you go out not vend to them. It is as simple as that.A good advertising approach is base on the function on level of explore in to a markets path and its unwrap company. They have to spot precisely where your commerce strength fit into its souk, and how it will thrive inside it.Chapter 2.2.1 SWOT analysis of BMWAnlnternal and corporate analysis in terms of strength, weaknesses, opportunities and threats (SWOT) will aid 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 whitethorn face as well as what current opportunities are available to the company in the short and medium term.STRENGTHWEAKNESSESDiverse ranges of products- BMW, MINI and Rolls-RoyceStrong cash prey position step-up turnover and trading profitsStrong Balance SheetWorl ds leading Premium Quality Automobile ManufacturerBrand knowingnessHuman resourcesCapabilities to turn resources into advantagesPerception of high pricesCustomer disinterestEnviron cordial issues, pollutionsBuyer sophistication and know conductgeSubstitute products or technologiesOPPORTUNITIESTHREATSNew productsMarket switching to globalisationInnovation AlliancesCustomers demand change to more comfortable and relevantly cheap carsNew Technologies in AutomobilesNew exiting competitionVolatility in harm of FuelNew legislationsConsequences of the oil crisisSeptember 11thEconomic recessionMarket shift to globalisationTakeover bidsFar-East Automobile companies expansionExtremely high competition for customers and resources2.3. Macro environment.The major external and uncontrollable factors that influence an organisation decision making and affect its performance and strategies.These factors are as follow2.3.1 semipolitical factorsLaws and regulations had affected the automobile ind ustry as a whole.These laws generally revolved around the environment norms that were to be fulfilled by any car industry. then the car manufacturers had to take care of the environgenial issues during manufacturing of cars.European Commission proposed binding rules to cut CO2 emission on saucy cars to 130 gms/km warningAccording to my research 2005 BMW achieved only 40% of their emission target but today BMW groups with its efficient dynamics programme achieved a reduction of average burn consumption and CO2 rating by 10.2% and has do 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.2.3.2 Economic Factors.Economic factors bring up 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 Dow nturn.Increase in the greet of oilExampleRapid increase in the fuel prices is affecting the demand and the buying power of customer. According to BBC News which rude(a) 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 make up 131.6 pence per litre. He also claimed that the yearly 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 golf club 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.2.3.3 Social environment factors.Soci al factors include the changes in cultures and demographics globally a part from change in the buying pattern and capacity of the customer. change magnitude population also has an effect on the car industry.Example.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 includi ng BMW will again get a positive response from the existing and new customers.2.3.4 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 bring out latest techniques like BMW car 2-x communication in their AMULETT project with the aim of improving pedestrian safety and and so creating a more competitive pictorial matter in the car market.2.3.5 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 Programmed (Euro NCAP) is a European car safety, performance assessment programmed. 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.2.3.6 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 c reate a vehicle Recycling Network.Chapter 3Q.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.BMW use segmentation to spot bring trade interpretation. To find additional information BMW atGeographic segmentation.Demographic behaviouralSocioeconomicBeneficial characteristics of societyGeographical segmentionGeographically, 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.Demographics behavioural,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 performance look, and the sense fine factors of a recognized trader trunk. The benefits are required by these folks are dominance, act, dependability excellence.BMW gases manages realize over the year is to put 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 distinguishableiate strategy to create that each of these company relies on confused make imagery to retail their cars.Examplejaguar is seen as a luxury, dependable and excellence manufacturer that BMW does except on the other give Alfa Romeo is celebrated for being fashionable and presentation type but untrustworthy car as per the check.The position of these company and their brand has been build up over many 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 gross revenue 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.Chapter 4,Q.4 how does the wide marketing mix apply to yours chosen organisation? Analysis and give example?The Marketing Mix.Marketing mix is the combination of marketing activities that an organisation engages in so as to best meet the needs of its targeted market. Traditionarly the market mix consisted of 7Ps.Marketing mix can be put under seven headings, much referred to as the seven Ps,ProductsPromotionPricePlacePhysical evidencePublicpurchaseProduct.The generally central constituent in the interchange is the companys 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 areBMW 3 serial publication bar, vehicle, adaptable, Touring, dense.BMW 5 Series Sedan, TouringBMW 6 Series vehicle, adaptableBMW 7 Series SedanBMW Z4 RoadsterBMW X3 SUVBMW X5 SUVBMW M adaptable, vehicle to each one 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 down the stairs shape and then depending choose if there is want to make transform in the produce and re-launch.ExampleBMW 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.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 military action account etc.ExamplePrice 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.3 SERIESPRICESedanPrice from 21,035CouplePrice from 25,955ConvertiblePrice from 30,915TouringPrice from 22,2153) Placement.BMW use better market dealership and significant for non merchant network countries they have intravenous feeding 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 proposition 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.Patter n of allocation for BMW is shown below in the drawing which followed by the businessProducer DealersCustomers4) 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 powder stores, outside campaign, sales fiction, fliers etc. publicity Campaigns/Slogans used by the corporation in the past.ExampleAccording to my research in 1983, 1994, 1997 and 1999 when James bond use in every movies BMW car, James Bond movie The CatcherThe four CSCustomer solutionBMW 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 costBMW 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.Convenience.BMW does not have online purchase system but collect to the high price of their products but they have online drive test appointment system for the 7 series using which doesnt need to go to the store to test drive car, hence making it more convenient.Communication.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.Chapter 5,Q.5 Identify different types of buyer behaviours and how they apply to your chosen organisation?Customer trade performance is the takings 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 promot ion, 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 stimulant drug ( 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 persons orientation collection relations, friends 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.Our decision and attitude are also a product of our attitude. An individual energy have a positive experience.Example.Driving with friend A- class which in turns affects attitude towards BMW Mercedes and change behaviour in purchasing an automobile. Attitude is not eternal and change over time since they are result they are experience. A car crash dexterity change the attitude towards the brand and one might decide to exclude BMW Mercedes as an option buying a car.Chapter 6,Q.6 How does the extended marketing mix apply to different marketing segments? Compare consumer vs. business markets, and transnational vs. domestic markets.Consumer marketConsumer markets deal with final customer. Each customer buys the product for their direct scarification and has no other intended use for itExampleThe market for magazine is consumer market- the customer doesnt resell the magazine and buys it for their own enjoyment.Business marketBusiness market is an online mar ketplace that matches business buyers with franchisors and business opportunitiesConsumer and Business marketCONSUMERBUSINESSEach client has identical worth and represent a small % of proceedsThere are a minute figure of big clientele that description for a large % of proceedsSales are completed distantly, the producer doesnt assemble the clientSales are completed myself, the producer gets to know the purchaserGoods are the equal for all clients. The service ingredient is lowGoods are adapted for unlike clients. Service is very valuedpurchase are made for private use picture is imperative for its own sakePurchases are completed for others to use icon is imperative where it adds value to clienteleThe buy social function is not theme to loving and arbitrationThe acquire occasion is conduct capably and includes tender and arbitrationThe swap is one of deal. There is no big time view (monetary services vary)The switch is habitually one of tactical aim. There is the latent for long term worthThe buyer is usually the consumerThe buyer is usually an integrator some down the provide series the consumer6.1 Table, Consumer and Business market. internal market and international market. internal marketThe market for goods and services in the country where the company is based.International marketInternational marketing is the application of marketing orientation and marketing capabilities to international.( muhlbacher, Helmuth, Dahringer 2006)DOMESTIC MARKETINTERNATIONAL MARKETDomestic marketing is the manufacture, backing, sharing and sales of goods and services in a local marketInternational market is the production, promotion, sharing, and auction of merchandise and services in a global market.Domestic marketing is less dangerous and easier to conductInternational marketing is more dangerous and more multifacetedDomestic marketing requires lesser fiscal assetsInternational marketing requires huge economic assetsDomestic marketing deals with only a single marketInterna tional marketing deal with some(prenominal) different countries markets.Domestic market deal only with the laws and system of one countryInternational marketing is more difficult and requires more pledge form the business because of the ambiguity and different in laws and system in the global market.Domestic marketing deals only with one set of consumersInternational marketing deals with different types of consumers with different rates and tastesDomestic marketing, the business can have the same policies and strategiesInternational marketing requires different strategies in the encouragement of their products6.2 Table, International market and Domestic marketConclusion.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 familiarity 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 rep utation 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 textile outlay have both dampened margins and affected the export power of customers like as lofty oil price.