MOD003507 - Marketing Principles and Practices: BMW Report

This report provides a comprehensive analysis of BMW's marketing strategies, focusing on the application of marketing principles and practices. It begins with an introduction to marketing's significance for both profit and non-profit organizations, emphasizing core principles and practices. The main body of the report delves into the 7 Ps of marketing (Product, Price, Place, Promotion, People, Process, and Physical Evidence), detailing BMW's effective utilization of each element. Furthermore, the report explores the AIDA model (Attention, Interest, Desire, Action) in the context of BMW's marketing campaigns, illustrating how the company attracts and engages customers. The report concludes with a summary of the key findings, highlighting BMW's strategic approach to marketing and its ability to adapt to the dynamic market environment. The analysis also touches upon communication models and their importance in reaching target audiences, providing a holistic view of BMW's marketing success.

Principle and Practices of
Marketing

Table of Contents
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
Task1................................................................................................................................................1
TASK 2............................................................................................................................................4
AIDA model................................................................................................................................4
Communication Model...............................................................................................................6
Conclusion.......................................................................................................................................6
REFERECES...................................................................................................................................8

Introduction
Marketing is one of the critical functions for both type of business organization profit as
well as non-profit. The responsibilities of marketing areas is broad and include a wide variety of
activities that includes marketing research, promotion, customer retentions, research and
development. Most of these marketing functions are surrounded around core marketing
principles and practices (Chaffey and Ellis-Chadwick, 2019).
BMW, is one of the leading multinational company that in engaged in providing service
related to auto-mobile. They are particularly involved in producing luxurious vehicles as well as
motor-cycle and take proper care in customizing their services. This project covers diverse
aspects of marketing principles and practices. This includes getting a proper understanding of
marketing environment by detail knowledge of marketing mix. Along with this, AIDA model
and pull and push strategy is emphasized in order to enhance the communication process. This
will enable the company to develop an effective decisions in order to be successful in long term.
Main Body
Task1
There are wide variety of principles and practices that are utilized by almost every
marketing teams worldwide in order to be able to devise powerful strategies that include
marketing mix, customer retention and promotional mix. First, it is must to understand marketing
mix that include 7 P's of marketing. It can be understand in detail below.
 Product: This mainly states the product or service offering that are designed by a
particular company in order to address the needs of the customer that they can offer. For
doing this, it is must for the company to be able to differentiate it's offerings specially
from their immediate competitors that includes Audi, Volvo and Nissan Motor
(Convissar, 2015). Along with this, it is even important to determine the product they can
add and utilize the latest technology that mainly include social media, website, email and
latest intelligence tools.
 Price: This mainly states that the buyer is willing to pay in order to satisfy the needs of
their specific product and services. For doing this, marketing managers have to undertake
detailed research and accordingly align their activities that includes manufacturing,
1

marketing and distribution in order to provide reliable price will adhering to the cost of
the product. This is mainly calculated by knowing their customer and quality they seek
while indulging in purchase design and can be also referred as value based pricing.
 Place: It is even important to indulge in sale of their offering by determining and defining
the place for it's distribution. Basic product that are essential for the survival are readily
available in many stores in almost all the local regions where the customers is located but
the luxurious products are only available in limited stores (Eiseman, 2018). Along with
this, it even need to consider mode of stores that is either physical or digital or even both
that is most feasible as well as effective for them in order to realize their defined
objectives.
 Promotion: This mainly states the tool that manager use in order to create and enhance
the visible for their brand. This even requires a thorough marketing research in order to
know the latest tools that are most effective in running their activities. Along with this,
joint marketing campaigns are also used that is known as promotional mix. These tools
mainly include sale promotion, personal selling and public relations. Their campaigns
even include detailed information of all the other P's to widen the reach of their target
audience. It is important for the marketers to determine the right medium of
communications.
 People: People for the organization mainly refers to all the people that are part of their
journey. They mainly includes the employee's and the customers. This is due to the fact,
that employee are considered as a company's valuable assets that are on a constantly
enhancing their efforts in order to maximize their customer's satisfaction (French and
Gordon, 2019). This will be fruitful for them to retain as well as enhance their customer
base in order to boost their profitability.
 Process: Process mainly represent the flow of activities in order to provide product to
their customer's. This is done in order to enrich the experience of their valuable
customers. It needs to be done by constantly monitoring the performance of each of their
task force and take appropriate measures in order to eliminate the issues faced while
addressing the customers needs.
 Physical evidence: This can be referred as a physical place where the actual interaction
between the customer's and the staff takes place. This can include a variety of tangible
2

assets that includes furniture and layout. This may be two forms that is evidence that the
real service was performed in reality and it acts as a evidence that their particular brand
exists in the market (Gbadamosi, 2019).
It can be now be explained how BMW make effective utilization of their 7 P's in detail
below:
 Product: BMW is mainly indulged in providing luxurious products that includes
manufacturing, development and sales of engine that mainly includes vehicles consisting
of cars as well as motor cycles. Their main three brands of BMW groups includes Rolls
Royce, BMW and Mini. For doing their business operations company mainly undergoes
differentiation strategy and offers premium range of their luxurious vehicles that are
highly efficient and reliable by utilizing the latest technology (Hyndman and
Athanasopoulos, 2018). They is made the one of the leading auto-mobile industry by
utilizing higher level of integration as well as digitalization in developing their vehicles.
 Price: Pricing is one of the vital P of marketing that mainly states the value exchange
undertaken by the company. Being a luxurious brand BMW charges a high price of their
customized product and services. Still their pricing strategy is different that is highly
dependant on their customers and the economic conditions of a particular regions in
which they operate in. The companies high end model is more expensive in few regions
where the assembling plant is located at a much larger distances.
 Place: The place is highly dependant of the nature of business and the size of the
company. Currently, BMW is scattered and catered to a wide variety of customer's
throughout the world. They are done this, by develop their various stores in many
markets.
 Promotion: BMW world wide famous company more than half of century. The company
have low promotional activities as the company feel the name is enough to make an
impression in the mind of people. The company spent very less investments in its any
advertisement campaign as BMW is known for luxury car making company thus they
believe in creating in product feature as they offer superior craftsmanship that can not be
matched by many renowned companies in the industry (Chamat, 2016).
 People: BMW believes the success of the company lies in the hands of its employees.
Company offer safe and attractive job opportunities for personal development and
3

growth. Company offer wages more than above as they believe their employees deliver
best in class and exceptional performance (Robertson, 2017). Company also believe in
employee satisfaction are the key reason for such success. Company constantly making
effort to develop skills among their employee and promote them according to their
strength that work as investment for the company for future.
 Processes: The company value its customers the most by offering exceptional automotive
which have best in class design, quality and experience to the. The company's production
process follows into four stages (Kubacki and et. al., 2015). From Press shop; where the
car's high-tech material are made. BMW use most advance technologies worldwide. In
second stage, Body shop; where car's assembly take place. Company use high level of
automation in car for spot welding.
 Physical evidence: It is linked to BMW is that when any individual think of car brand
they automatically think of luxury. This is the reason why BMW has make an impression
of their cars as deluxe and made with precision. The brand is known for its elegance and
luxuriousness. They believe in quality in its vehicle with different customizable features.
TASK 2
AIDA model
The model is used in marketing which describes the customer's which goes through
process from purchasing of product. The model is reviewed and modified from time to time in
marketing. The model was developed by American business man E. St. Elmo in 1898.
The model is based on four stage, which describe below in context to BMW:
 Attract Attention: According to model product must attract the consumer's attention. This
is done through advertisements to catch the attention of people towards product. In
BMW, company use online source to sale their products. Due to global pandemic
4

company face this situation (Kumar, 2017). BMW through its YouTube ad introduced
sensational clip of their different model and their sleek design. Company recently in the
year 2020, introduced EMW Plug-in Hybrid range. Where the advertisement begins with
car that drive through barren forest at night. The product from BMW is catchy as it offer
both petrol engine and electric motor that's why is named as hybrid (Campaign. 2020).
 Maintain Interest: After catching the interests of the viewers using different techniques of
advertisements, it is the next responsibility of the brand keep their customers or potential
customers interested. Break in promotional activities often damage the chain of
excitement among the viewers (Nosalska and Mazurek, 2019). At BMW, however they
don't believe in continuity in the ad campaign as they think this might bore the viewers
and decrease the brand image. Instead they like to take break in their promotion and put
full effort to promote their product with new way with new product.
 Create Desire: Through interest company seek to create desire for their their product
among its consumers. Then it is the responsibility of the sales department of the company
to peruse its clients to buy their product. However this part is heavily depend on the
advertisement. The stronger the advertisement message the more good will be the sells.
At BMW, company believe quick but catchy promotional plan that should have sure
impact in the mind of the viewers. As the company do not believe in long, boring and
continuous seen of their ad that drive customer irritated instead of feel impressed from
effort. Recently the global marketing strategy of BMW represent their leadership through
innovation. BMW continuously sought innovational spirit in order to satisfy the premium
marketing demands (Yuying, Quingrun, 2018). As mentioned earlier, increase in demand
of clean energy and environmental consciousness among people forced company to
concur market with proper business strategies while shifting paradigms of environmental
demands of the society.
 Taking Action: This stage of the model says that company need to take action as soon as
the feel that customer's desire to buy the product aroused. Thus this need to be transferred
into action before it is too late. Since the company is dealing with automotive, thus it is
impossible to turn customer's desire into actual sell (Parker and Fleming, 2020). As this
need physical availability of both parties in order to involve in the whole process.
5

The model is effective while creating any marketing content. The model's funnel define
the all its components used as it is believed that brand awareness is increase through advertising
and marketing of the production. The concept of the model worked as explanatory approach as
this model help in reflecting how promotional and communicational policies are working while
investing in advertisement. Analysts, through this model address the above mentioned four goals
to its customers and potential customers in the direction of funnel; from first stage to to final
actionable stage (Pink and et. al., 2015). At BMW, company can use this model before planning
to promote its products. Company can get benefit out of it by analysing its customers, identify
their needs which can used as tool to attract them, arouse interest and finally drive their
customers into actionable one. The ultimate goal of the model is to satisfy the customer through
this funnel. However, customers satisfaction is not solely depend on the promotional activities
but also largely depend on the product itself and this what BMW Group feel the most. Hence, in
regard of this, this model is useful in order to effectively create awareness among the individual
in terms of promoting suitable products and services to company. For this, company leads to
create effective campaign before some months to launch their products, promote awards, stylists,
qualifications and so on that was reinforced by the effective campaign in order to target their
customer groups. It also leads to implement the direct mailing and effective campaign in order to
provide free consultation and also useful in order to have effective to support for their work
which is beneficial to company in terms of offering products in market.
Communication Model
Berlo’s Model of Communication
communication is an important term for an organisation as the firm is a body of various
individual performing and Working together for single goals. Communication is the way of
giving and receiving of thoughts and ideas between two or more individuals. This
communication is essential to maintain relation, providing guidance, allotting work and
communicating with customers in order to solve issues and problems relating with product and
services.
This model is based upon the four factors of communication that is source, message,
channel and receiver. These elements are connected which put the speak at the top of
communitarian process as it is the only one who are liable for the entire communication held by
6

various sources and channels. The description and effectiveness of this model are described
below:
 Source: it defines the communication process through the speaker or sender of the ideas
and thoughts delivering to the receiver. The sender will provide information or message
by communicating in an attractive way by use of skills, knowledge and attitude (Slack
and Brandon-Jones, 2018). Managers of BMW are the source of communicating who
make promotion of new products through offline and online methods into quite attractive
way which results in attracting customers that shown through, social media likes,
comments and feedbacks.
 Message: under this element, the information or content presents into a way of message
by building it with the help on impressive works and thoughts. Social media handling
team of BMW or freelancers provide an attractive content to describe and sell their
product into digital market so that people will take initiative and show interests in go
through with content by generating traffic that will result in effectiveness into
productivity and profitability.
 Channel: it basically shows the path or way through the message or communication will
deliver to the receiver. In social media platforms, channels could be enormous in number
that are YouTube, Facebook, Instagram, websites and many others. Through these
channel, the team of BMW makes the content posted with the use of websites, articles
that will gain customer attraction by welcoming traffic into the websites so that message
will reach to more number of people (Torabinejad, Fouad and Shabahang, 2020). It gain
160,635 likes on Instagram, and 2,681,780 followers on Facebook, this shows
effectiveness of the company in attracting number of people.
 Receiver: The receiver are the one who get the information, message and content in the
form of ideas and thoughts of the sender. The receiver known as the destination of the
communication process, as it is the main purpose of indulging into communication to
reach necessary content reach to the customers. The receiver of Team of BMW are the
followers on every social media handling through which they get each and every insights
of companies product so that, purpose of the company get fulfil.
7

This model of Communication is helpful in understanding the process of communication
that depicts significance in the context of company. There should be evaluation of the every
channel and message of content.
Conclusion
Therefore, by considering the preceding discussion it is being analysed that marketing is
critical function which is useful in order to earn more and more profitability for company and
also useful in achieving effective competitive advantage. For this, marketing is the wide process
that leads to undertake suitable research, design and development of product and customer
services. In regard of this, the report describes several strategies of promotional mix in order to
promote and advertise their suitable products within the market area. Furthermore, it leads to
discuss and evaluate the effective of marketing with the help of suitable models like AIDA and
Berlo’s communication model which is useful in order to evaluate the effectiveness of marketing
to promote the products of company.
8

9

REFERECES
Books and Journals
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
Convissar, R.A., 2015. Principles and Practice of Laser Dentistry-E-Book. Elsevier Health
Sciences.
Eiseman, D., 2018. Marketing Sustainable Tourism: Principles and Practice. In Tourism
Planning and Destination Marketing. Emerald Publishing Limited.
French, J. and Gordon, R., 2019. Strategic social marketing: for behaviour and social change.
Sage.
Gbadamosi, A., 2019. Contemporary issues in marketing: Principles and practice. Sage.
Hyndman, R.J. and Athanasopoulos, G., 2018. Forecasting: principles and practice. Otexts.
Kubacki, K and et. al., 2015. A systematic review assessing the extent of social marketing
principle use in interventions targeting children (2000-2014). Young Consumers.
Kumar, V., 2017. Integrating theory and practice in marketing.
Nosalska, K. and Mazurek, G., 2019. Marketing principles for Industry 4.0—a conceptual
framework. Engineering Management in Production and Services, 11(3), pp.9-20.
Parker, E. and Fleming, M.L., 2020. Health promotion: Principles and practice in the Australian
context. Routledge.
Pink, S and et. al., 2015. Digital ethnography: Principles and practice. Sage.
Robertson, M., 2017. Sustainability principles and practice. Taylor & Francis.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Torabinejad, M., Fouad, A. and Shabahang, S., 2020. Endodontics e-book: Principles and
practice. Elsevier Health Sciences.
Online
Campaign. 2020. [online] Available through:<https://BMW "Discover the BMW Plug-in Hybrid
range" by FCB Inferno >
Chamat. R., 2016. [online] Available through:<The secretes of BMW's marketing success.
https://www.8ways.ch/en/digital-news/secrets-bmws-marketing-success>
Yuying. A., Quingrun. R., 2018. Global marketing strategy for BMW. [online] Available
through:<https://globalmarketingprofessor.com/global-marketing-strategy-of-bmw/>
10