Marketing Essentials: A Case Study of BMW in the UK

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Marketing essentials: a case study of BMW
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Table of Contents
Introduction....................................................................................................................................3
LO1..................................................................................................................................................4
LO2..................................................................................................................................................8
LO3................................................................................................................................................15
Conclusion....................................................................................................................................22
Reference List..............................................................................................................................23
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Introduction
In the modern era of business developments the aspect of marketing has been
regarded as one of the indispensible factors. In order to generate greater revenues in
the business higher number of customers are attracted by the virtue of implementing
intriguing promotional methods. With the aid of efficient methods of marketing various
SMEs across the globe has been encouraged to look into unexplored territories and
attracted greater number of audiences to their products. By the virtue of effective
marketing policies various areas of functionality such as the performances of the sales,
reputation of the brand and the generation of the revenues are escalated. In the current
business environment the marketing has been kept in the utmost regard for the growth
and success of businesses. Businesses of different natures are supplemented to a
greater extent by effective marketing strategies by which they are attaining sustainability
and competitive edge. Marketing has been looked upon by different researches and
authors as one of the crucial procedures of managements by which the need of the
consumers are met in accordance (Bell et al., 2018). The demands of the customers are
also adhered with the aid of marketing which eventually helps the organization in
gathering significant margins of profit.
In the following report the 7P of the strategies of marketing have been highlighted by
which right business plans are concluded. Marketing and their different role in meeting
the goals of the business have also been showcased. A comparative study within two
business organization utilizing the 7P of marketing has been portrayed. In the final part
of the report a fundamental plan demonstrating marketing efficacy for the completion of
the overall assignment have been shown.
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LO1.
P1 Explain the key roles and responsibilities of the marketing function
Sustainability is on one the most after processes for every business organization in the
contemporary market. By developing a competitive edge the organization are trying to
achieve sustainability in the huge market. Studies from the past have shown that the
needs of the customers are satisfied with proper marketing by which adjustments are
made on the products. This increases the revenue generation program to a
considerable extent. The process of customer engagement is primarily concluded by
marketing within a business. Marketing also enhances the values of the product
involved by the virtue of which the sales processes are uplifted considerably (Noe et al.,
2017).
The most significant importance of the marketing procedure is that it boosts the growth
of the business and maximizes their brand and product promotion. Apart from it
marketing can serve the business with other important roles which have been
highlighted in the following
1. Description of the brand or the product: The department of marketing are
coped with the duty of enhancing the image of the brand along with elaborating
their product values. The presentation of the product is done in an intriguing
fashion to generate high level of interest amongst the customers. Greater interest
can affect the buying behaviour resulting in the growth of sales.
2. Understanding the customer requirements: With the intension of adhering to
the demands and the needs of the consumers, market researchers are carried
out by the marketing team. The changes in the buying patterns of the customers
are information to the production team by marketing heads. This helps in
adjustment and customization of the products as per the customer needs (Mishra
and Modi, 2016).
3. Increased margins of profit: Accelerated sales and promotion of the products
lead the business of a company to generate greater revenues. Large portion of
consumers are reached in accordance to accelerate the overall sales program.
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The department of marketing is also responsible for the creation of the search
engine optimization or the SEO. This helps in maintain efficacy in budgeting
strategies, boost the communication with the organization and accesses the level
of competition in the market. In the present era the process of strategic marketing
is considered are one of the vital tools for business growth and success.
P2 Explain how roles and responsibilities of marketing relate to the wider
organisational context
The functions of the marketing cannot be overlooked as they play a pivotal part in the
development of a particular business. The functions of marketing if executed on a
proper scale will comprehend numerous business processes with ease and efficacy and
eventually lead the business to profitability. Distribution, finances, channels for product
promotions, and management of the products are some of the crucial function provided
by the marketing methods. Marketing functions help in gathered knowledge of the
requirement of the customer. Appropriate execution of key marketing elements
outcomes as supplementary to the business with the purpose of meeting their business
goals and is considered as the utmost priority (Muller, 2017). Supremacy in the
marketing functions helps to satisfy the customers to a significant level by the virtue
impeccable transfer of services and goods. Observing the customers need instigates
the functions of marketing and it finishes by satisfying their expectations.
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Figure 1: The different marketing functions
(Source: Startuplakewood.com, 2019)
Function for planning: The function for market planning is comprehended to meet the
goals of the business in accordance. By the virtue of effective planning various
marketing activities, such as the standards for the production, promotion and
advertisement, presentation of the product are developed (Palmatier et al., 2016)
Functions of Exchange: This function is coped with the responsibilities of satisfying
the demands of the customers and ensures the supplies of goods. The procedure
involving the buying and the selling of the products are considered as the functions of
exchange.
Function of design and development of the product: The presentation of the
product along with innovative and attractive design is adhered by this function. In the
present era of business, the design of the products plays a pivotal part by which huge
number of customers is attracted.
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Function of distribution of the product: The storage and the transportation of the
goods manufactured by the company are maintained with the execution of this function.
By the function of transportation, the goods are sent out to numerous locations so that it
can reach out to the consumers. On the other hand, the function of storing incorporates
the idea of storage of the goods within the warehouse before they are dispatched to the
market (Nadarajah, and Pogány, 2016).
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LO2.
P3 Compare the ways in which different organisations apply the marketing mix to
the marketing planning process to achieve business objectives
Case study
Various organisations are using various strategies, which opportune those in capturing
the market share through setting targets within themselves for achieving the desired
organisational objectives. These are necessary for those organisations to structure a
business plan that applies to their business prospectus. There are presences of various
techniques that are involved in setting achievable targets in terms of price, place,
products, promotions, people, physical evidence and process (Atwal and Williams,
2017). To make a comparative study it is required to have two companies, which will be
effective in reflecting a clear overview of the strategic insights that has been enacted
and adapted by both the concerned organisations. The two automobile companies
BMW and Mercedes have been considered in this aspect. Both the brands are selling
high-end cars and are in operations in UK. In the following section, the strategies that
has been adapted by the two automobile brands has been analysed for assessing the
effectiveness of their strategies in a proficient manner.
Comparative study of 7P marketing mix
In an ever emerging marketplace where growth of luxury car is something which is
necessary to be manifested. The marketing mix reflects the appropriate strategy that is
to be enforced by the two concerned companies BMW and Mercedes. The way both the
companies follows 7P’s of marketing mix has been provided below:
Marketing
elements
BMW Mercedes
Product The business prospectus of BMW has
been divided into three main
categories, which comprises of
Mercedes Company
presently produces a broad
range of advanced and
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motorcycles, cars and finance. In
2017, apart from Rolls Royce in all
other segments, the brand acquired
higher sales. At present, BMW is
focused on electrification. In the
previous year, the brand delivered
over 100,000 cars having electrified
drive trains to customers (Lee et al.,
2015). The brand has increased its
sales target for the year 2019 moving
it to nearly 150,000 vehicles. The
brand is strategizing to have over half
a million Minis and BMWs traversing
on the roads by the end of year 2020.
luxury trucks, cars, coaches
and buses in their
manufacturing facilities
based throughout the UK.
In parallel to BMW, the
brand has successful in
introduction of numerous
innovations which
contributed in establishing
the brand image of today.
Place BMW has a global presence having
operations in over 150 countries.
However, UK has been one of the
most preferred places for BMW due to
availability of highly skilled labours
working for the brand in all areas
ranging for machinery to customer
helpline staffs.
Mercedes sells their
products through
specifically two marketing
channels. The first is selling
directly to customers
through online website. The
second is selling to
wholesalers who afterwards
sell to various retailers who
located all over UK
(Balasudarsun et al., 2018).
These eventually sell to
customers. Mercedes Benz
has their products supplied
for sale on over 500
retailers throughout the UK.
The brand follows an
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intensive marketing
strategy where it tends to
infuse their products on as
many number of retailers as
possible. This ensures that
Mercedes cars are
available to consumers
easily in various parts of
UK.
Price BMW has been a premium brand in
UK marketplaces, which follows
premium-pricing strategy. This
strategy of the Company supports
their premium brand image. BMW
needs to invest in technology and
bring a wide range of SUVs, cars and
small MINI cars in UK market. These
cars have to attractive in look as well
as loaded with technological
innovations. In UK, most of the cars
by BMW are priced in the range of
$40,000 and $100,000. The Rolls
Royce cars are priced higher than
average BMW cars at above
$300,000.
Mercedes-Benz
manufactures various types
of full sixed sedans,
convertibles, sports sedans
and coupes. In UK
marketplace the brand has
numerous car models at
present ranging from
€24,500 to €900,000. The
brand is leaving no stone in
unturned condition for
tapping premium segments
in UK market. The company
has a broad price structure
outside UK, ranging from
€27,000 to €90,000,
depending on the cars’
model.
Promotions There is no doubt that having such a Mercedes Benz marketing
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good technology and top of mind
brand positioning, Promotions and
marketing has now been a critical
aspect of every vehicle brand’s sales
strategy. BMW’s selling expenditure
comprises of marketing, sales and
advertising expenses (Gummerus et
al., 2017). In 2017, total selling
expenditure of BMW almost touched
6.2 Billion Euros, which was at nearly
6 Billion in the previous year. BMW
uses numerous channels for
promoting its brand image and
products, which includes traditional as
well as digital channels. The strong
image of BMW as a global player and
a luxury brand also performs a key
role in marketing the brand. The
brand’s famous slogan Driving
Pleasure indicates the distinctive
experience that BMW has
successfully created for their
customers. BMW has promisingly built
a distinctive image as a vehicle brand
featuring on Fortune world’s most
admired companies listing at 19th
position again in 2018 and has been
on top among the vehicle brands.
strategy is focused on
safety, luxury and precision
engineering of cars where
competition has propelled
to fiddle with its product for
adapting the varying
consumer attitudes.
Mercedes’ marketing
strategy concentrates
extensively on presentation
of more energetic,
approachable and fun
loving aspects of Mercedes
Benz. In UK, their
marketing strategy can be a
connected to their
expanded market presence.
Mercedes Benz over the
years has felt it crucial to
expand their market, which
include younger consumers
(Shah, 2018). Another
marketing strategy
introduced in UK by
Mercedes Benz is their
utmost decision to slice
prices and thereby make
the product more affordable
to middle class customers.
Process In UK, the brand sells cars, Mercedes Benz makes
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