BMW's Marketing Strategies: Achieving Business Objectives

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MARKETING MIX OF BMW
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MARKETING MIX OF BMW
Table of Contents
Introduction......................................................................................................................................1
Lo1: Explain the role of marketing and how it interrelates with the other functional units of an
organization (P1 & P2)....................................................................................................................1
LO2: Comparing ways in which organisations use elements of the marketing mix (7Ps) to
achieve overall business objectives (P3).........................................................................................4
LO3: Developing and evaluating a basic marketing plan. (P4).......................................................7
Vision and mission of BMW:......................................................................................................7
Objectives of the company:.........................................................................................................7
Marketing mix:............................................................................................................................8
Action plan:...............................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

MARKETING MIX OF BMW
Introduction
Marketing is considered as the most crucial tool in the modern business era, which tends to
involve a market place, demands of the consumer and various marketing strategies so that the
quality of the product can be increased. This made the organizations to think about the
importance of marketing strategies in order to drive the customer relationships. The main reason
is that awareness about the various marketing functions is increasing in order to discover more
opportunities and capture larger portions of the market. Based on this, the research shall focus on
the various aspects of marketing functions. Further, it will cover up the marketing essentials of
an organization, which belongs to the modern era of globalization. Initially, it will depict the
marketing functions, followed by a comparison between two companies and the marketing plan.
In this report, the case study of BMW will be considered, and comparison with Bentley will be
considered.
Lo1: Explain the role of marketing and how it interrelates with the other functional units
of an organization (P1 & P2)
Key roles and responsibilities
Marketing functions are defined as the roles of the business, which helps to identify, the
potentiality of a product for placing it in the market. Similarly, in BMW it is essential to make
marketing research, product planning, and development process of the product, sales and various
other functions, which shall determine the marketing function effectively. The marketing
functions help in increasing the responsibilities of the firm, which lead to better growth of the
company. In, BMW it can be observed that the marketing function consists of strategy
management, doing market research, supporting the sales and developing the product in an
effective manner (Armstrong et al. 2015). Thus, the marketing function of BMW has different
types of roles to play for promoting the growth of the organization. Therefore, the roles and
responsibilities of marketing functions in BMW are:
Setting marketing strategies

MARKETING MIX OF BMW
The major role is being played by the senior member of the marketing team. This helps in
increasing the specification of BMW in various markets. Further, with the strategy, new channels
of distributions can be opened, for reaching a wider market. For instance, the main strategy of
BMW is to understand the philosophy of the customers and identify their future needs in an
effective manner.
Market research
Researching in the market is a key responsibility, which helps in setting the market strategy with
the overall objective of the company. These are being used by BMW for entering a new sector or
develop any external opportunities for the company (Kozlenkova et al. 2015). For instance,
BMW can enter the markets of India after they conducted market research and found that the
needs of their product are growing at a tremendous rate. For instance, BMW is focusing more on
the satisfaction of the customers and fulfilling the needs of the customers.
Internal product development
The major responsibility of the marketing teams is to help in the development of new products so
that new products can be developed easily. For this, BMW sales team is making budgets and
creating promotional content so that visibility among the customer's increases. For instance, the
budget is being prepared by the finance so that the marketing team can help in buying items that
will develop the products (Mishra and Modi, 2016.). This major responsibility lies with the
accounts team to allocate the necessary funds to develop the products.
Supporting the sales team
Lastly, the main role of the marketing team of BMW is to create a co-operation between the sales
and the marketing team so that the sales team has greater leads to work with. These leads help in
increasing sales in an effective manner. For, instance, free time is provided to the sales persons
so that they can understand the needs of the customers and develop their skills to increase the
performance level (Ryazanova and Volchkova, 2017).
Significance of interrelationship
A strong connection between the marketing team and the other departments help them to
function in a proper manner and help BMW to grow in an effective manner. This is mainly

MARKETING MIX OF BMW
because of the fact that marketing function needs to be backed by all the departments of BMW
so that it performs well and to have a strong influence on the overall performance of the
company. For instance, if BMW wants to create a marketing plan, then they need support from
the financial department, HR department, sales team, and the production team. It can be noted
that the main function of the marketing team is to increase the profitability of the company when
all the departments tend to participate and co-operate with the marketing team (Kyriakopoulos et
al. 2016). Therefore, without a proper functioning process, it will be difficult for the marketing
department of BMW to function in an effective manner.
Roles with other departments
The functions of the marketing department with other departments of BMW are analyzed below:
Production department
The marketing works with the production department for:
 Researching adequately to understand the current and future needs of the
customers
 Setting deadlines for the production team so that BMW can enjoy a healthy
competitive advantage (Ryazanova and Volchkova, 2017)
 Lastly, to handle the volume of orders that is generated through intense
promotional activities
Finance department
The finance department is one of the most important departments for ensuring that there is a
stable flow of cash within the organization. For the marketing department, the finance
department approves the budget for conducting market research and making promotion for the
product (Hammody and Hussein, 2019). This shall help the marketing department to carry on the
marketing works without any problem.
Human resource department

MARKETING MIX OF BMW
HR department performs the most important function for the marketing department so that the
marketing department can have access to employees who have the potential to understand the
prospect of the market. It tends to help the department with the right set of employees through:
- Conduct market research for developing innovative ideas for product development
- Help in meeting the production target
- Creating a competent sales team
- Giving the required training to the marketing personnel
LO2: Comparing ways in which organisations use elements of the marketing mix (7Ps) to
achieve overall business objectives (P3)
The 7Ps of the marketing plan is essential to compare the market situation of the companies and
this marketing mix will help to reflect on the various issues that have been develop in the market
and can interrupt the products and services of the company. Here, the issues that are prevalent in
the premium automobile companies like Bentley and BMW has reflected a comparison has been
drawn over these issues in both of the companies. Thus, the 7p’s of the marketing mix has been
discussed here (Themba et al. 2016).
Product: Both the companies deal with the premium automobiles. BMW produces three brands
such as Rolls Royce, MINI and BMW. It has been seen that their products are accepted readily in
all over the world. The company also owns 13 research and development in all over the world,
which is work for the betterment of the products. The extra ordinary setting of the products has
made it one of the preferred cars in the premium segment. From the aspect of pickup, speed,
engine, reliability and safety – the BMW products are extraordinary.
On the other hand, Bentley is considered as one of the most preferred premium car companies of
the world. The company have introduced a number of models of their products such as
Mulsanne, Flying Spur, Continental, Bentayga and the heritage models (Chockalingam and
Isreal, 2016). The racing cars produced by the company are also in demand by the customers.
The company ahs their won service centres in the countries where they produce and sell their

MARKETING MIX OF BMW
products. According to the design, the cars produced by Bentley consist of the sedan design and
convertible coups.
Price: Both BMW and Bentley belong to the premium car segment and the pricing of their
products are considered not according to the affordability of the buyers but the features and the
services of the products. It is also can be said that the prices of the BMW cars depend on the
series of their introduction. Moreover, from the aspect of services and maintenance, BMW cars
are expensive than the other cars. However, in order to attract a large customer base, they have
introduced a less expensive series of cars.
On the contrary, Bentley does not compromise with the quality of the cars and it is evident that
Bentley cars are also expensive (Eneizan and Obaid, 2016). Not only the service and
maintenance of the cars are expensive, the price of the cars is also high in respect to the other
premium car segment. The pricing of the cars have started from around $180,000 and go up to
$300,000+. Moreover, the customization is also available according to the convenience of the
customers that also costs extra.
Place: BMW have their outlets in almost all developed and developing countries. It is seen that
the output units of the company can produce around 11,000 to 15,000 units of product in a year.
The spare parts of the products are also available in the countries and cities where the
manufacturing units are situated. Moreover, the company have also their dealership networks in
many countries (Gituma, 2017).
On the contrary, Bentley believes in the franchise network. The company sells their
manufactured products to the franchise who deals with the customers to provide them cars. In
china, Bentley has a good market share as the growing market economy can be found in the
country as well as the increased market demand for luxury cars.
Promotion: According to the market survey, in 2012 BMW has been acclaimed as the most
reputable company of the world. Amazing contents has been used by the company for their
television and audio-visual media and print media. In order to connect with the new generation,
they have also started to market their products through the social media (Valos et al. 2016).
According to the statements provided by the company, they require original and unique contents

MARKETING MIX OF BMW
for their advertisements, as they know that their target customers do not care for affordability,
rather they accept exclusivity.
On the contrary, Bentley believes that ethical marketing is more effective for their target
customers instead of the extravagant marketing like the other automobile companies. Some
innovative promotional schemes have been used by the company to reach and impress their
target consumers. To reach their target customers, the company use audio-visual and print media.
Engineering marketing techniques has been used by the company to make their products visible
in the international market.
People: In order to manufacture and market their products, BMW depends on the qualified
engineers and marketing executives. In order to work for the BMW, it is needed that the
organization should check the educational qualification and work experience of the candidate. A
team system has been followed in all the manufacturing and service centres of the company
(Khan, 2015). On the other hand, it is also can be stated that some specialists have been
appointed by the company to supervise the service and the manufacturing process.
Bentley, on the other hand, has been acclaimed as one of the top employers of the world and the
employee retention rate in the company is much lower to luxury automobile company. From the
system engineer to the front line employees in the store, should have the experience of previous
working in order to work for a Bentley store.
Process: As the company works according to the dealership process, the general rules and
regulation of the dealership authorities are required to be followed. It is can be stated that it is the
responsibility of the dealers to sell and deliver the products to the customers (Goldring, 2015).
On the contrary, Bentley has been developed franchise segments and the third party usage has
been approved by them. The third party sellers or the franchise can use the logo, brand name and
other features of the company. It is also can be stated that the company also provide the service
and manufacturing of the products through these third parties or the franchise that forward these
products and services to the consumer end.
Physical evidence:

MARKETING MIX OF BMW
Both of the company have their physical stores in all over the world. In almost all the developed
and the developing countries, Bentley and BMW have their physical stores. It is also can be
stated that a number of employees work in the stores of these companies. They have their own
manufacturing units and service centres also in the countries where they have their stores. In
those manufacturing units and services centres, a number of employees work (Goldring, 2015).
All of the objectives of the organization have been set according to the situational analysis of the
company and the marketing mix that has been evaluated and stated above. It can also be stated
that in order to achieve the objectives of the business, the evaluation of the marketing mix would
be helpful. Examination of the marketing mix would assess the issues and factors that are present
in the business and affecting the business from a negative aspect (Ho, 2015). Moreover, as the
issues have been reflected in this study, it will be beneficial for the companies to evaluate them
and find the right way to deal with them and mitigate them.
LO3: Developing and evaluating a basic marketing plan. (P4)
A basic marketing plan should include the basic information about the company, their products,
services, and the way they deal with their customers. In case of the premium automobile
company, BMW, the basic marketing plan has been developed in order to understand the goals,
the objectives, and the planning of the company to achieve those objectives and goals.
Vision and mission of BMW: The vision of the company is becoming the most successful
premium manufacturing companies in the automobile industry of the world.
The mission statement of the company states that the company is the leading company is one of
the leading providers of premium products and the premium services that are necessary for the
individual mobility (Loveland et al. 2015).
Objectives of the company: The Company have their specified objectives that have helped
them to expand their business worldwide and meet their demands of the customers.
 To improve brand awareness among the employees and the customers
 To attract new customers and retain them into the company
 To generate new leads in the business

MARKETING MIX OF BMW
 To increase the traffic of the showroom
 To develop the customer base, both in the qualitative and quantitative ways
 To obtain deeper and grave knowledge regarding the needs and demands of the emerging
customer base of the company
 To maintain social and ecological sustainability in the company, especially reducing
carbon emission
 To take entire responsibility of the products
All of the objectives should be mitigated by the company in order to expand their business on a
large-scale and maintain their positive reputation in the global business market. The marketing
mix, thus, will be helpful to reflect on the issues that can oppose the initiative of the company to
meet their objectives in business.
Marketing mix:
Product: It is the most important part of the marketing mix. It is the reason that the company can
develop their business, attract the potential customers, and retain the existing customers. Dealing
in the premium automobile segment, the company have produced a number of models according
to the needs and demands of their customers. The 1 Series is the smallest series of the company
that has been designed for nuclear families (Durand, 2019). The full-size flagship
executive sedan segment of the cars has seven series. The company have introduced the
first hydrogen fuelled internal combustion engines that can be driven by the liquid hydrogen. It is
also can be stated that the X3 SAV (F25), X5 (E53), BMW i3 are some of the most popular
range of the premium products manufactured by the company. Among these models, BMW i3 is
fully automatic and to has been launched by the company in 2014. Apart from sedan, the designs
of the cars are also consisted 3 doors and 5 doors hatchback, coupe and convertible, Gran Coupe,
Hybrid sports car and Compact Crossover SUV/Sports Activity Vehicle.
Price: The mentioned company, BMW specifically target the premium customers who can
afford the expensive premium cars produced by the company. The target market of the company
is the people that can not only afford the products but also demand exclusivity in return to their
money. Thus, in regards to the price of the products, the company follows the differentiation
strategy. For market their 3 series products, the company have followed, the orientation based

MARKETING MIX OF BMW
pricing (Njegomir and Rihter-Demko, 2018). On the contrary, they have followed the value
based pricing mostly as the customers are buying their products for their brand position in the
automobile market and their worldwide reputation.
By analyzing the external pricing of the company, it has been seen that $90,000 is the maximum
price of the large 7series sedan produced by the company. In some special occasion, the
company offer discounted price for their products. It is evident that the company have offered
$1,500 dollar credit and reduced interest rate to the buyers for 36 months.
Promotion: Television commercials, print commercial along with the social media have been the
main tools of the company. This will make their customers informed about the products and the
services of the company. Apart from the audio-visual, print and social media promotion, the
company have used other promotional activities such as public relation, e marketing and
celebrity endorsement (Kamugisha, 2017). In order to endorse the brand to worldwide, in
different films, the cars produced by the company has been used. The promotional campaigns
used by the company are stated as sleek and unique.
Place: As the company follows the distribution pattern of manufacturer- dealers-consumers, they
have provided dealerships to the dealers from all over the world. It is also can be stated that in
almost all the developed and developing countries of the world have the showroom of BMW.
Moreover, the company have their flagship stores in the different countries of the UK and the
USA. The head quarter of the company is situated in Munich, Germany. Moreover, the
worldwide subsidiaries of the company are consisted of the countries such as Canada, China,
Brazil, Egypt, Japan, Mexico and India.
People: The Company follows the hierarchy structure and the apex body is leading party of this
structure. It has been followed by the president, vice president, secretary, directors, office
managers and other ground level staffs (Amyx et al. 2015). According to the rule of the
company, they only recruit the people that are experienced and adequate to handle the premium
customers.
Process: Manufacturer  Dealers  Consumers – this rule has been followed by the company
in order to ensure the proper products and services to their customers. It is seen that the
manufacturers work for promotion, negotiation, handling financial issues and payments. The

MARKETING MIX OF BMW
physical possessions have been ensured by the dealers such as warehousing, ordering and
transporting.
Physical evidence: Apart from their flagship stores, the company have their physical stores in the
various countries of the world. Not only serving the consumers with over the counter service, but
also the manufacturing unit and service units of the country has also been developed in the
developed and developing countries of the world.
Action plan:
Objectives Tasks Success criteria Time frame Resource
To improve
brand awareness
among the
employees and
the customers
Engaging
customers and
SEO search option
To connect with
customers on
social media and
in person, to
become the
foremost name in
SEO search option
3 weeks Social media
executive and
software engineer
To increase the
traffic of the
showroom
To increase the
number of
consumers that
will go to the
showroom
To attract more
customers in the
showroom than the
current traffic
12 weeks Front line
executives
To maintain
social and
ecological
sustainability in
the company,
especially
reducing carbon
emission
To reduce the level
of carbon
emissions
Restricting the use
of the fossil fuel
and use substitutes
such as liquid
hydrogen and
electric connection
104 weeks Engineers