Consumer behaviour1 Executive summary Consumer behavior is the study of individuals, groups and organizations and the activities linked with the acquisition, usage, and disposal of the goods and services comprising customerâs emotional, mental and behavioral reactions which lead these activities. This report includes consumer behavior concerning the BMW brand. The marketing practices of BMW have been analyzed in the form of adequate marketing strategies and the way it affects the consumer behavior. The significance of digital marketing has been described along with the effectiveness of the digital marketing practices of BMW.
Consumer behaviour2 Contents Executive summary...............................................................................................................................1 Introduction...........................................................................................................................................3 Significance of developing adequate marketing strategies and the effect of the marketing strategies of BMW on consumer behavior.................................................................................................................3 Significance of advancing adequate marketing strategies..................................................................3 Effect of the marketing strategies of BMW.......................................................................................3 The importance of digital marketing in todayâs environment and the effectiveness of digital marketing practices of BMW.................................................................................................................................4 Conclusion.............................................................................................................................................5 References.............................................................................................................................................6
Consumer behaviour3 Introduction This report defines the marketing practices of BMW. BMW was established in 1916 and having headquarter at Munich, Bavaria. The company produces motorcycles and cars. BMW is identified as Luxury automobile company. It employs over one million employees in more than 40 nations. The company has subsidiaries worldwide along with the manufacturing plants in the nations like the UK, Germany, USA, China, Brazil, Egypt, and South Africa. BMW is an innovation leader and sets a trend in production technology. The marketing practices of BMW comprise the segmentation, target markets, marketing mix, and SWOT analysis. The marketing practices of BMW are shifting towards digitalization and resource- efficient production. Significance of developing adequate marketing strategies and the effect of the marketing strategies of BMW on consumer behavior Significance of advancing adequate marketing strategies An adequate marketing strategy serves as a critical roadmap for the whole business. It comprises several aspects which should be deliberated by the organization all the time. The most significant considerations to be taken into account by the organizations are shareholder value, reputational risk, and impact of digital technology (Zeugner-Roth, Žabkar, and Diamantopoulos, 2015). The effective marketing strategy takes into account the expectations of the customers along with the detailed analysis of the operations of the company which enables an organization to view business from the viewpoint of a client (Mandel, Rucker, Levav, and Galinsky, 2017). Effect of the marketing strategies of BMW The success of BMW relies on the effectiveness of marketing and advertising strategy adopted. The company has adopted a marketing campaign in order to target its customers. The company focuses on the customers to tell that the pleasure given by BMW in driving is not given by any other car brand. Segmentation, targeting, and positioning define the marketing strategy of BMW. Segmentation:BMW targets to its customers by making use of segmentation. Geographically, the company aims to target the areas which are more industrialized such as North America, Europe, other parts of Asia and Africa such as South Africa and China.
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Consumer behaviour4 BMW has noticed 70% of its sale to be taken place in North America and Europe (Ferguson, Lau, and Phau, 2016). Targeting:BMW targets to the persons who are in the age of 25-40 as such people have a settled life and prosperous image. The people belonging to this age group are professed to have a clean modern look along with the good feel factor (Trocchia, Saine, and Luckett, 2015). BMW concentrates on being labeled as âluxury carâ and âan international carâ, therefore the company does not view to target specific ethnicity or nationality. BMW is having an aim to target customers who have an income of 25,000 pounds and more. Positioning:BMW has positioned itself in terms of performance, quality, uniqueness, technologically advanced creator worldwide. Most of the people have confronted to have âa feeling of safetyâ while using BMW. It has assisted the company to position itself ahead of the competitors in terms of customer satisfaction (Hofacker, Malthouse, and Sultan, 2016). The importance of digital marketing in todayâs environment and the effectiveness of digital marketing practices of BMW Digital marketing has become an effective way to approach new clients. It is an efficient platform to acquire new clients and interact with old ones. Digital marketing is helpful in enhancing the visibility of the organization. Where traditional marketing restricts scope and customer reach, digital marketing makes possible several online channels by which an organization can promote business digitally. Digital marketing is significant as it offers equal opportunities to every kind of business. The small and medium level organizations are offered equal opportunities as MNCs (Murphy, and Dweck, 2016). The most significant ability of digital marketing is to engage several customers without making use of call center services. It has been observed that the conversions linked with digital marketing are likely to rank higher than other means of marketing and communications. Other than the conversion rates, digital marketing also ensures great revenues. Better revenue generation helps small and medium-sized enterprises to use digital marketing strategies. Digital marketing in todayâs business environment has been proved successful by catering to mobile customers (De Mooij, 2019).
Consumer behaviour5 BMW is pulling away from its traditional advertising strategy and making use of digital marketing to drive luxury customers. The company makes use of social media sites to connect with customers from Facebook to YouTube and Twitter. All social media sites provide larger customers to associate and communicate with. BMW maintains its accounts on a regular basis to engage with the customers. For instance, BMW is having various accounts on Facebook and all of these are devoted to the specific product. The company has even different account for every nation. Facebook is the largest social media platform along with the greatest number of followers. The company is having almost 20 million followers. BMW shares advertising and promotional content on its Facebook page. On the other side, excellent features of Twitter such as real-time marketing and customer engagement can be used to grasp specific customer segments (Godey, et al. 2016). Add on, BMW makes use of YouTube to share promotional videos along with the videos of new models. It promotes products in a better way and appeals to customers. Conclusion The marketing strategies of BMW are effective enough in influencing consumer behavior. It focuses on the powerful brand image. It has been proved from the marketing strategies that BMW focuses on the core values are innovation, technology, quality, performance, reliability and customer satisfaction. The marketing strategy identifies the potential of the organization along with inspiring growth. The strength of the company lies in making the best use of every opportunity.
Consumer behaviour6 References De Mooij, M., 2019.Consumer behavior and culture: Consequences for global marketing and advertising. SAGE Pu Ferguson, G., Lau, K.C. and Phau, I., 2016. Brand personality as a direct cause of brand extension success: does self-monitoring matter?.Journal of Consumer Marketing,33(5), pp.343-353. Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R. and Singh, R., 2016. Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior.Journal of business research,69(12), pp.5833-5841. Hofacker, C.F., Malthouse, E.C. and Sultan, F., 2016. Big data and consumer behavior: Imminent opportunities.Journal of Consumer Marketing,33(2), pp.89-97. Mandel, N., Rucker, D.D., Levav, J. and Galinsky, A.D., 2017. The compensatory consumer behavior model: How self-discrepancies drive consumer behavior.Journal of Consumer Psychology,27(1), pp.133-146. Murphy, M.C. and Dweck, C.S., 2016. Mindsets shape consumer behavior.Journal of Consumer Psychology,26(1), pp.127-136. Trocchia, P.J., Saine, R.Q. and Luckett, M.G., 2015. Ive Wanted A BMW Since I Was A Kid: An Exploratory Analysis Of The Aspirational Brand.Journal of Applied Business Research (JABR),31(1), pp.331-344. Zeugner-Roth, K.P., Žabkar, V. and Diamantopoulos, A., 2015. Consumer ethnocentrism, national identity, and consumer cosmopolitanism as drivers of consumer behavior: A social identity theory perspective.Journal of international marketing,23(2), pp.25-54.