Marketing Fundamentals: Segmentation, Targeting, Positioning and Marketing Mix for BMW

This report discusses the marketing fundamentals of segmentation, targeting, positioning and marketing mix for BMW. It explains how BMW uses these concepts to promote their luxury brand in the market. The report covers the process of segmentation, targeting and positioning, and also considers marketing mix strategies in relation to the company under consideration.

Marketing Fundamentals

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Segmentation-.............................................................................................................................3
Targeting –.................................................................................................................................4
Positioning –...............................................................................................................................5
Explain the Marketing mix in relation to the company.........................................................5
Conclusion.......................................................................................................................................8
References........................................................................................................................................8

INTRODUCTION
Marketing is the term used by the organization to promote business in the target market
with the aim of generating profit and long-term sustainability. They are all the separate
department in the company that develops a strategy that will make the business more efficient
and competitive in the market. The organization's managers have a desire to have a profitable
business in the market by expanding their offices across the other locations. It involves various
techniques to make the strategy more effective (Francis, M.H and et.al., 2012). In this report
taking into account the BMW brand, the luxury brand that deals in auto mobiles, it offers
services all over the world. The company's full name is Bayerische Motoren wekre,which is a
German multinational corporate manufacture for luxury vehicles and motorcycles. It was
founded in 1916 and is headquartered in Germany. The following report covers the process of
segmentation, targeting and positioning. It also consider marketing mix strategies in relation to
the company under consideration.
MAIN BODY
The marketing plays an crucial role in the business organisation by having effective
planning and taking use of several techniques involving digital marketing, social marketing and
other activities which helps in making business more effective. The business comprises of
numerous departments which is operated on the basis of their skills and expertise. In the current
era, the segmentation, targeting and positioning are core concept and broad framework which
summarizes and simplifies the procedure of market segmentation. Its marketing campaigns
would be generic, have little to no personalization, and overall would not be able to change at a
stage where most companies would cash in the most. In below the STP analysis is explained in
brief.
Segmentation-
This is a type of marketing that breaks down the customer segment or market based on
different categories like age, gender, location, income. This makes the marketing strategy easier
to categorize the business. It is the first step in the Stp Analysis, the main aim of which is to
create different sections related to a particular character and activity that the company chooses. It
is made up of various other sections listed below.

 Geographic segmentation - This type of segmentation includes different countries,
regions, states, and locations. These are all business activities decided based on regions
and locations and their trends.
 Demographic segmentation - It separates consumers by age, gender, education, level,
occupation and level, etc. These are all broken down by classifying them based on age
and various factors. All activities are customized by the company to share its target
market and consumers (Frith, K., 1986).
 Behavioural segmentation- This separates the marketplace and the users by classifying
them in terms of audience, their buying behaviour, trends and much more. All of the
points discussed are based on what you are buying and how you are buying.
 Psychographic segmentation- This is the final section of segmentation that takes into
account a lifestyle, hobbies, actions, opinions, and much more. The consumers are
classified on the basis of these points.
The BMW company is adapting a segment that divides the consumer according to age,
gender, trends, lifestyle and class and much more. The Services business units exclusively
include luxury, premium-level transport automation and the company does not have any budget
vehicles in its portfolio that are aimed at individuals and households with a minimal budget.
Targeting –
This section of marketing is aimed at the company's consumers based on the area that is
more profitable, the customers who are more interested in the company's products, and many
others. Targeting is done by analysing size and potential customers based on individual
consumers. All of this takes place with the involvement of research and development activities.
The first step involves the total size of the segment, which tells the company whether it will do
business or not. The second step is to check whether there are important marketers who set the
segments apart from others. It helps in analysing the opportunity for the business in a financial
perspective that profits should exceed that you can expect in order to win the marketing budget
that would be required to execute (Gentry, D.L. and Shawver, D.L., 1964). Finally, the company
should see that the market segment is accessible to the company. And whether the management
is able to visualize the marketing message. Ultimately, the targeting process is about identifying
the best chances of grabbing the user in the segmentation phase. Then management can optimize
the customer journey and create more relevant and engaging marketing campaigns. In order for

BMW to target premium consumers, the company is targeting premium consumers as they
represent themselves as luxury brands in the markets. The company operates as a recognized
brand in the market in which it offers its services worldwide. They are constantly updating their
technology, business, and models to attract consumers.
Positioning –
Finally, the STP analysis positions the final model that explains the state of the company in
order to place the company in the top rating. It takes into account the opportunity that will help
the company achieve the unfulfilled goals or desires in the target markets those goods can
complete. While the company was collecting data on which segments of targeted consumers
want. Businesses can use these sights to position the goods and develop unique sales products
that showcase the real content in real time. By leveraging the consumer segments' theory
business, product positioning can be completely revamped and the business campaign focused on
the most pressing issues faced by target customers (Hasfa, N.H and et.al., 2014). With segmented
and particularly targeted consumers, goods and services have a huge impact and help highlight
business content in a crowded marketplace. In terms of BMW, the company sees itself as a
luxurious product and targets a premium customer. It creates a business as a lifestyle of people
basically high class and rich people buy the products of this brand to show their class in the
market.
Explain the Marketing mix in relation to the company.
The marketing mix is a concept that is said to have been improved by academic Neil H.
Borden in such a way that the marketing mix was later a refined tactic, best suited with its
implemented permanent or semi-regulated structure as a structure for planning, executing,
Evaluating and redefining corporate marketing works activities. This is the strategy making
process to make the process or operations more effective to make the business more effective.
The further details are detailed below-
 Product- It refers to anything that is sold by the company for the amount. These
offerings are served by the companies who have a good will to understand the needs and
demands of consumers in order to meet their needs (Izan, M.A and et.al., 2015). No
matter what the company's position, the company's product will always be in the market.
It includes a wide variety of sources, packaging, quality, and features. Most often,
consumers buy the goods according to their needs and requirements, and follow the brand

that suits their wants and requirements by offering good quality and reasonable cost. For
BMW automobiles, the company provides the goods on the basis of customer
requirements by adapting a modern technology of the company.
 Price- This type of marketing model has been established by the company based on a
calculation by taking the assessed cost into account as the value consisting of raw
material costs and freight costs incurred in the manufacture of the goods, including
margins. The company sets the value for factors such as customers as well as wholesalers
or retailers. All of this is important to the business, they need to figure out the cost based
on each angle, how to determine customer income and so much more. For BMW
automobiles, they set the prices at the premium level because it is a top brand that is a
luxury brand. They serve the services for premium consumers (Rangkut, N.S and et.al.,
2010). They have a premium pricing policy that includes setting high prices for the items.
This planning must ensure that the product or merchandise itself is of high quality or
retains a luxury label.
 Place- This determines the location where the company provides its services and plans to
expand its business in the target market even though the company is selling its goods in
the crowded market. This concept requires the set of components that are a targeted
audience that plays a role in the corporate supply chain. Testing is always a good thought,
an ecommerce site would work better than a physical pop-up branch so the mix of the
two would be appropriate for the business. To make a profit, the manager had to have a
clear idea of the target consumers (Shaw, K., 2018) when organizing and making a profit.
In order to generate continuous revenue, the company must be based and distributed in a
location that is both brand-appropriate and accessible to business. BMW is a recognized
brand on the market.
 Promotion –It means raising awareness in the market through various techniques such as
advertising, newspapers, social media and many more. Advertising strategies work on
several levels, they increase brand awareness, increase sales and generate income. The
basic advertising method for marketing falls into two categories which are traditional and
digital. Traditionally referring to print media, broadcasting, direct mail and many others,
and digital advertising includes email marketing, social media marketing, etc. To promote
BMW cars, the company advertises its services through the use of its websites and digital

marketing methods Product through the social websites Instagram, Facebook and many
more. The company usually provides the details and services through their websites and
emails.
 Physical evidence –This element of the marketing mix focuses on including physical
evidence to prove the existence of the brand along with proof of purchase. It consists of
aspects such as the company logo, labels and the packaging of products. The
organization's established stores also serve as physical evidence. In the context of BMW
automobiles, the organization is focused on providing physical evidence to its customers
by offering safe and security products in their cars when they purchase, and by including
the organization's tags (Visser, M. and Schroeders, S., 2021). In addition, the
organization offers post-purchase receipts made up of the organization logo and names to
improve their identification. This allows the company to expand its branding reach in
relation to customers and achieve indirect marketing that enables it to increase the
company's brand awareness.
 People – Not only do customer service factors play an important role in transforming
sales, they also provide guidance to customers with regards to referrals. The organization
can effectively gain these referrals from people who are loyal to their brand. In
connection with BMW Automobiles, the company has an effective and institutional
recruitment and recruitment process. This enables the company to select not only
qualified workers but also qualified workers who will help the company to achieve its
corporate goals (Vlasova, V.M., 2011). The company employs over 110,000 highly
qualified employees who positively present the brand image of their organization in order
to optimally market their actions.
 Process – These tag mix factors focus on the overall activity of delivering goods and
offers to users in an institutional manner in order to maximize their effectiveness and
trustworthiness. The procedures must take into account facts ascribed to the company,
such as a sustainable environment. In the context of BMW automobiles, the institution
concentrates on offering its goods and offers in proper style through its well-organized
and effective structure of goods delivery and showing the services that are most likely to
be purchased by customers based on their priorities and tastes. In addition, the company
concentrates its goods through sustainable practices in order to strengthen its brand image

in the market, which also helps in creating brand awareness (Wan Fadillah, W.A and
et.al., 2010).
Conclusion
From the above it is concluded that the marketing strategy plays a appropriate role in
business it makes the business more effective all though it spreads awareness of the brand in
public or in the market by increasing the productivity of the company.
References
Books and Journals
Francis, M.H and et.al., 2012. Fundamentals of Entrepreneurship ETR300: Hellynna Jantriline
Nursery.
Frith, K., 1986. Fundamentals of Copy and Layout. Book, Albert C. and C. Dennis Schick.
Chicago: Crain Books, 1984. $14.95.
Gentry, D.L. and Shawver, D.L., 1964. Fundamentals of Managerial Marketing: A First Course.
Simmons-Boardman Publishing Corporation.
Hasfa, N.H and et.al., 2014. ENT300 Fundamentals of Enterpreneurship Business Plan: Bae-Bee
Store/Nur Hakiimah Binti Hasfa [et. al].
Izan, M.A and et.al., 2015. Fundamentals of Entrepreneurship (ENT300): Heaven Sea Cafe.
Rangkut, N.S and et.al., 2010. Fundamentals of Entrepreneurship Ent300: Glee Go-Kart.
Shaw, K., 2018. 8 Promotion: Marketing. Fundamentals of Marketing, p.141.
Visser, M. and Schroeders, S., 2021. Customer acquisition: sales and pricing. In Digital
Marketing Fundamentals (pp. 346-387). Routledge.
Vlasova, V.M., 2011. Fundamentals of entrepreneurial activity. Marketing.
Wan Fadillah, W.A and et.al., 2010. Fundamentals of entrepreneurship (ENT300): case study on
Borneo Chicken.