BMW Marketing Strategy Analysis

This assignment delves into the comprehensive marketing strategy adopted by BMW. It examines key aspects such as market segmentation, target audience identification, positioning in the automotive landscape, and the brand's overall image cultivation. The analysis draws upon various academic sources, industry reports, and BMW's official communications to provide a holistic understanding of their strategic approach.

Running head: Consumer Psychology
Consumer Psychology

Consumer Psychology 1
"Explain the evolving nature of family structure, social classes & culture through the years
and their effects on buying behavior"
With the evolving centuries, the consumer behavior is shifting towards new edge of taste.
Development has taken place, and industries are evolving and trying to keep diversification in
their work so that requirements of all types of customers are fulfilled. Though with the starting of
this decade the customers have been regarded as the king pin of the market, which obliges the
market to satisfy the needs and preference of customers otherwise the companies will not sustain
their growth in the market (Dudovskiy 2016). The challenge which marketers now a day faces is
that, they need to understand the diversity of customers in the market and then offer quality
products and services according to their persuasion. Further, the taste of the customers in the
market also depends upon their major factors which are discussed below:
 Structure of Family: the basic structure of the family is divided into two types that are:
o Joint Family: it is a large family group which includes a married couple, their
parents, children, and other relatives (Van Doorn et. al., 2010).
o Nuclear Family: is a small family group comprising of a married couple and their
children.
The structure of family largely depends upon the choice of the customers to purchase branded
products in the market. it shall be taken into accounts that as comparatively there are more
numbers of members in a joint family than in nuclear family, so they less prefer branded
products especially cars such as BMW. BMW is one of the highly flourished expensive cars
which not achievable by all (Kaufmann, Panni, and Orphanidou 2012). Also, people living in a
joint family have more responsibilities and duties to follow resulting to which they postpone

Consumer Psychology 2
their luxurious expense on BMW cars. Whereas talking about the nuclear family, due to the
presence of less number of family members, there are a few duties which are to be fulfilled by
the head of the relation, therefore they easily save a part of their income to buy BMW car (BMW
12 2017).
Another factor which affects the decision making in this aspect is an influence of family
members to purchase a particular product. For instance, each member in the family influences or
gets influenced by other family member depending upon their relationship with them. Further
talking about relationships, family dynamics depends upon relationship dynamics (Darley,
Blankson, and Luethge 2010). The buying behavior in a family is determined by three unlined
influence:
o Wife dominance in decision making: this will result in purchase of more groceries,
food, home décor, jewels etc. Their decisions are more inclined towards purchasing such
products.
o Husband's dominance in the decision-making process: in this case, the family will
spend more on luxurious and reliable products such as BMW car, insurance etc.
o Joint Decision: family will postpone purchasing cars etc. and looking for short term
happiness like vacations etc. (Akar, and Topçu 2011).
Further, it shall be noted that in earlier time, the major segment of the society used to live in joint
families where decisions were taken by head of the society resulting in which they decide on
purchasing cars according to their taste. Mainly they used to prefer low-cost products which
provide more durability and less status upliftment. So it can be said with changing decade
consumers preference is more inclined towards buying BMW cars (De Mooij 2010).

Consumer Psychology 3
 Social Classes: Luxurious cars such a BMW are highly preferred in the market by richer
class of society. The car is mainly used as a status symbol by people to show off their
achievements. Social class in mainly divided into three sections of the society that are:
o Upper Class: the class due to which premium products are prevailing in the
market. They are the richer section of the society who purchases cars like BMW
to fulfill their status needs (Solomon, Russell-Bennett, and Previte 2012).
o Middle Class: these are middle-income level people who are majorly affected by
the decisions of the economic decisions taken by the government. Most they do
not prefer premium products, instead, they believe in buying durable products.
But they also purchase premium BMW cars due to their interest and dreams.
o Lower Class: these are the lower income level people of the society falling below
the poverty line, who are able to fulfill their basic needs only. This class does not
even dream of buying BMW cars (Hernández, Jiménez, and Martín 2010).
Further, it shall be noted, with the change in time more people are shifting in the middle income
and high-income level groups due to which sale of premium products like BMW cars is
increasing. Also in past, there used to be only two sections in society i.e. higher and lower
income people thus only higher income level people used to buy the product but with the
emergence of middle-level income, more consumers are inclined towards purchasing first-class
cars.
 Culture: it refers to the pattern which the society as a whole follows while purchasing a
particular product or service. Culture mainly comprises of all the factors prevailing in the
market which can affect the purchasing behavior of a person (Papasolomou, and Kitchen
2011). Further culture is divided into sub-cultures on the basis of which people take

Consumer Psychology 4
decision of purchasing luxurious products. Sub culture includes aspects like religion,
geographical variations, age, gender etc. which affects the decision making of an
individual.
Comparing the change in culture for purchasing BMW cars, it shall be observed that in earlier
time, only a particular section of the society (that is richer section) used to purchase such cars in
order to satisfy their prestige in the market. But with the emergence of times, more people get
involved in the race to maintain their status or reach to a higher position by obtaining such
products due to which the products are highly demanded in the market. Further, if one product is
obtained by a person in the society and becomes famous, then the whole society will initiate to
purchase the same product to fall in the same line of premium product users (Moiseieva 2013).
Thus, the fact shall be taken into consideration that the above-mentioned factors highly influence
the demand for branded products in the market. Also on comparing with the changing times,
more and more people are attracted by branded BMW cars.

Consumer Psychology 5
"Identify a consumer profile highlighting the most likely consumers that will buy your
product example, and briefly discuss the promotional efforts that would effectively support
the marketing of this product."
The BMW Company is itself identified as a luxury brand in the market which is only preferred
by people having higher income level. Further, the sale of cars of BMW is not only limited to the
income level of people but various other factors also define the consumer profile of person
purchasing BMW car in the market. Further, the demographic profile of a respondent who
prefers purchasing a BMW car is discussed below:
 Age: it shall be noted that two groups of people in the society mainly prefer to buy luxury
BMW brand in the market, these are middle age people (25-35) and people who have
attained saturation (45-55). The first age group of people is highly active and need to live
a luxurious life due to which they buy this product at a tender age only (De Mooij 2010).
Further another group of people symbolizes that they buy such products after attainment
of satiety in the market. This group of people have lived their lives and earned well, and
now they prefer to spend on themselves resulting in which they buy this particular
product.
 Income Level/social status: as it has been noticed that BMW is a brand which is known
for its prestige and it increases the status symbol of people, thus higher income level
people only purchase this product. Due to having high prices of cars, the product is
affordable by the only richer section of the society. Further middle-income people can
also buy this product in order to motivate their self-esteem and become a part of the
richer section of the society (Moiseieva 2013).

Consumer Psychology 6
 Dream: also this product is preferred and purchased by people who have interest in
luxurious cars and have a dream to buy one of such car. The car is one of those
passionate products, which is dreamt by many people in the society. Also, BMW cars are
efficient in use as well as they have well-designed models which attract the interest of
many. Thus, people under this section also prefer buying BMW cars.
 Gender: Gender wise it has been noticed that comparatively more males prefer buying
this product than females (Frank 2012).
 Marital Status: more of married people prefer to buy branded BMW cars in the market.
The reasons can be varied like; in adolescence, males prefer sports cars whereas after
marriage they shift their interests to luxurious cars. Another reason can be that now they
prefer conformable and a big car according to their family needs. Also, married people
tend to earn more and are settled as well. Another factor which shall be considered is that
the age group discussed above includes majorly married people that are, people under the
age of 25-35 usually get married. Also considering the other age group of 45-55 aged
people; they are also married people only (Darley, Blankson, and Luethge 2010). Thus it
can be said that married people are more interest in buying BMW cars.
 Societal Influence: it depends upon the taste of society in which a person is living. For
instance, people in particular society believes in reducing population by excluding the use
of cars for traveling, then, in that case, less people will prefer BMW cars. Whereas
country in which BMW headquarters in place will tend to have high sales of the
particular product.
 Culture prevailing in the market: culture is also one of the major factors which decide
the sale of premium BMW cars in the market. As if family member do not prefer

Consumer Psychology 7
purchasing the particular product or there is less prevalence of luxurious cars in the
market. Then fewer people will prefer this product (Chattopadhyay, Shivani, and
Krishnan 2010). On the same hand, if there is high competition between brands in the
market and promotion tool is majorly used then; more people will buy the premium
BMW branded cars.
Thus, it shall be noted that a settled consumer having a rich or high profile and standard of living
mostly prefer to buy such branded BMW car. Also, a consumer having big dreams or interest in
cars also becomes a customer of BMW.
It is known to all that the company expands its business by targeting the particular segment of
the market in order to promote the sale of their product (Bhasin 2017). Further, the promotional
tools used by the company to assist the customers to purchase their products are discussed
below:
 Collaboration and sales promotion: the company BMW initiated the promotion of their
cars by collaborating with various profound companies providing spare product and raw
material of cars. As the company purchased their raw material from those particular
companies, resulting to which to provide in return benefits, the other companies
collaborated with BMW in the process of promotion. The customer links with the
companies with which BMW collaborated also became their customers' resulting to
which the sales of the company increased. The company BMW also initiated dealership
of their branded cars. Dealers also assist the company in reducing their burden to increase
sales. Also, the name of the company BMW is advertised more in the market as more

Consumer Psychology 8
companies are connected with the main company that s BMW and all of them focuses on
selling their cars (BMW Group 2017).
 Promotion through Advertisement campaigns: the advertisement is the most important
aspect of sale and promotion of the product. As advertisements help the company to
promote their product through digital as well as physical ways. Also, the tagline of the
company that is "The ultimate driving Machine" gained success in the market. These are
some of the techniques which attract the interest of the customers in the market and
initiating them to buy the product (BMW Group 2017). The advertisement process of
BMW is highly efficient as it provides details and specifications of the products and its
unique feature etc. they also provide advertisement under the name of renowned
personalities and actor so that trust on the product is made and sales are increased.
 Public Relation: The Company BMW initiates to maintain a long term relationship with
their customers resulting to which repetitive sales are made.
 Sponsorships: the company majorly takes help of sponsorship to advertise their product
in the perfect target market. Such as in football matches, car racing etc. these are some of
the areas where company sponsors their product (Frank 2012).
Concluding the above statement, it shall be noted that the company BMW adequately uses their
target market and promote their product initiating an increase in the sale of their company.

Consumer Psychology 9
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Consumer Psychology 10
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