Marketing Approaches Used by Bmw

Marketing Approaches Used by Bmw

Marketing approaches used by BMW

1. Brand/product differentiation strategy

This marketing approach implies to concentrates on those attributes of products that are unique and not found in rival products to fascinate the target market. Brand or product differentiation acts as a competitive advantage to the firm. The research conducted in niche marketing strategy can result in modification of product to perk upon differentiation, but this not termed as differentiation. Brand or product differentiation can be defined as the process of delineating differences between products / services that can be physical or non – physical. The differentiation could be quality, functional features, sales promotion activities of manufacturer, difference in design of model, difference in location and timings availability (Kotler, et. al 2006). The main objectives of this strategy are to create value to buyers and to develop a position that customer can view as real difference. The concept of unique selling proposition is derived from brand differentiation strategy.

The outcome of this strategy can move the product from price factor to non -price factor like promotion variables, distribution strategy, products traits.

The advantage of this strategy is that differentiation not only acts as a source of competitive advantage but also reduces the intensity of competition in the market. As the product becomes unique in the minds of customer, they are no longer comparable with rival products.

The following unique selling propositions are used by BMW to differentiate its series 7 (F01)

? This product has long wheel base of 3210 mm .

? This model has 6 speed automatic transmissions with dynamic drive control.

? This premium car best traits include telecommunication and navigation system, Bluetooth, 4 zone automatic air conditioning, multi- channel audio system, DAB double tuner, USB port, DVD entertainment system, luxury seating, 80 GB hard disc, iphone integration, heads-up display, ceramic controls and adaptive steering.

? The BMW 7 series includes safety equipment's like ten airbags, adaptive break lights, extra bright light, adaptive bi- xenon headlights, integral active steering, and adaptive cruise control with stop and go feature.

The Company makes every endeavour to differentiate its every product from its rival products by vividly specifying traits of the products. The company communicates its brand differentiation through tagline affixed with its logo "The Ultimate Driving Machine". This tagline resembles quality and experience.

The company has successfully wiped out any gaps between brand identity and brand image (the difference between what company wants to be in the eye of customers and what customer perceives it to be). The brand identity of luxury premium car is perceived as luxury premium car. However, this strategy have created brand different from its rival products but failed to attract middle level society customers. One of the marketing objective of targeting potential premium car fans, and inexperienced users can be accomplished through differentiating brand and or product from those of rival brand and or products.

2. Product development

The product development strategy implies either completely new product or adding features to existing product. The new product development goes through several stages as brief below:(Ulrich, 2004)

Idea generation

Idea screening

Concept development and testing

Business analysis

Beta testing and market testing

Technical implementation

Commercialisation

New product pricing

One of the other marketing approaches followed by BMW is product development where the company comes up with innovative ideas. Before launching new BMW model or range of models, the company follow these steps to ensure its feasibility. BMW being leader in premium car industry, follows the proactive process in which BMW identifies the changes in the market trend and fashion and captures upon new opportunities before they actually occurs. The company ignores reactive strategy where resources are allocated after the problem is identified. New product development at BMW is an on-going process where every division of the company is striving for opportunities and