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BMW D

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Saima Binte Ikram
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45 views1 page

BMW D

Uploaded by

Saima Binte Ikram
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Douko Diarra

BMW Essay
01/31/2015
I. What are the pros and cons to BMW’s selective target marketing?
BMW, founded in 1916 by the German company Bayerische Motoren Werke AG,
Wasspecialized in aircraft-engine manufacturer and produced engines during World War
I and II. By the mid-20th, BMW started to manufacture motorcycle and automotive.
BMW, by adapting selective target marketing can have both some pros and cons.
One of the pros is that BMW provides its customers a variety of design, size, price, and
style choices depending on their demand and affordability. An example can be the
``upper conservatives.’’ Those consumers are more interested in electronic component.
So BMW created iDrive to allow to control windows, seats, airflow, and lights, a push
ignition, and night vision. Another pros can be that this selective target marketing allows
BMW to establish strong brand equity because consumers of each group have different
preferences such as comfort, luxury, and performance. BMW being able to offer all these
preferences make its consumers loyal to the brand. In term of costs, BMW selective
target marketing is beneficial. For instance, BMW can use mass marketing to market its
product because its target is specific and they all potential buyers and can be reach out all
at once. This mass marketing lower costs for BMW, which in turn can reduce prices and
gain higher margins.
Additionally, this selective target marketing has also some cons. One of the cons
can be about the affordability of cars. BMW cars are made for specific target and those
cars are only available for those consumers who can afford them. For instance, modern
mainstream group cannot afford to buy cars make for post-modern. So, it creates wants
for consumers that cannot afford to buy some specific cars. Also, identify selective target
marketing can be costly to BMW because they need to conduct research all the time to
determine potential new group of consumers. Furthermore, BMW can miss out a lot of
potential buyers by focusing on other groups. For example, there are people who like
BMW cars, but do not buy them because of the high maintenance price and gas. So, this
could be a potential loose of sales for BMW.
II. What has the firm done well over the years and where could it improve?
One of the things that BMW done well over the years was being able to identify
their consumer needs and created different type of cars to exceed their consumers
expectations. Also, BMW could make affordable cars to allow people of certain group to
buy them. Identifying its market segmentation helped them to cut their marketing costs
and established strong brand equity. Furthermore, BMW could create comfort and luxury
cars for consumers and stood above its competition Jaguar and Mercedes.
BMW could have extended its market to boarded market. There are several
countries such as Brazil or India where BMW could have brought its cars by focusing on
lower segment. It would have been expensive, but since the market is big in these
countries, BMW could have found many potential consumers and gain a lot of sales.
Furthermore, BMW could have improved its selective target. BMW cars are known for
its luxury and expensive prices and they are affordable for only certain group, which is
BMW most target market. If BMW could have come up with those same cars by cutting
prices and make them affordable for other groups, it could generate more sales and more
profits.

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