Marketing Strategies and Digital Marketing Effectiveness: A BMW Report

This report provides an in-depth analysis of BMW's marketing practices and their influence on consumer behavior. It begins with an executive summary and an introduction to BMW, highlighting its position as a luxury automobile company. The report then explores the significance of developing adequate marketing strategies and how BMW's specific strategies, including segmentation, targeting, and positioning, affect consumer choices. It further examines the importance of digital marketing in the current business environment and assesses the effectiveness of BMW's digital marketing practices, including its use of social media platforms like Facebook and YouTube. The report concludes by summarizing the key findings and emphasizing the impact of BMW's marketing strategies on its brand image and consumer engagement.

Consumer Behavior

Consumer behaviour 1
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
customer’s 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 behaviour 2
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 today’s environment and the effectiveness of digital marketing
practices of BMW.................................................................................................................................4
Conclusion.............................................................................................................................................5
References.............................................................................................................................................6

Consumer behaviour 3
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.

Consumer behaviour 4
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 “luxury car” and “an international car”,
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 ‘a
feeling of safety’ 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 today’s 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 today’s
business environment has been proved successful by catering to mobile customers (De Mooij,
2019).

Consumer behaviour 5
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 behaviour 6
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.