Fairfield School of Business: BMW International Marketing Report

This report provides a comprehensive analysis of BMW's international marketing strategies. It begins with an introduction to the company and its market position, followed by an examination of the key differences between global and local marketing approaches. The core of the report delves into the marketing mix, specifically how product, pricing, promotional, and distribution strategies are adapted across different international markets. The report further explores the domestic and global marketing approaches BMW can adopt, including ethnocentric, polycentric, and geocentric strategies, and evaluates their implications. It uses examples from other organizations to illustrate the diverse application of the marketing mix. Finally, the report concludes with recommendations for BMW, considering the competitive landscape and market potential.

Running head Marketing Mix 0
Marketing Mix

Marketing mix 1
Contents
Introduction......................................................................................................................................2
Difference between global and local marketing..............................................................................3
Marketing Mix.................................................................................................................................4
Product.........................................................................................................................................4
Pricing..........................................................................................................................................5
Promotional..................................................................................................................................5
Distribution..................................................................................................................................6
Domestic and global marketing approaches....................................................................................7
The implication of Marketing Approaches and recommendations..................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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Introduction
BMW is the leading manufacturer of automobile and Motorcycles Company in Germany.
They are famous for their luxury vehicles and their performance in the market. The report is
based on the marketing mix of the BMW group and analyzing the global and local marketing
strategies of the company. The elements of the marketing plan will be discussed for adopting the
same in international markets. Various approaches are adopted by the company in the domestic
and international market for analyzing the market potential. The overview of the local and global
market by investigating the product, price, place and distribution approaches in the market. The
adaptation of an effective marketing mix will impact the growth of the BMW group in
comparison with the competitors (Czinkota and Ronkainen, 2013. BMW group set different
marketing strategies for doing business in local and global markets. The competitors will impact
the marketing strategies of the company so it is important to consider the strategies adopted by
competitors to increase the sale in the international market.

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Difference between global and local marketing
BMW group produces outstanding and distinctive products. In the world, they always try
to achieve the maximum market share in the market of luxury cars. Because of the marketing
strategies, BMW group has created an excellent brand image globally. They had adopted the
strategies to satisfy the desires of the different local markets. The company has also adopted a
centralized and unifies brand strategy which can be adopted by a different country. The
marketing strategy system was adopted which is called a global branding and localized
marketing. The strategies are adopted by the BMW group in different markets of Europe,
American and Asian markets.
In order to achieve success, the company has adopted the strategies as multi-domestic and
global techniques by its transnational strategy to get both global efficiency and local
responsiveness (Bradley, 2005). BMW has adopted the different marketing mix to sell the
varieties of the car by socioeconomic segments, aggressively emphasizing on the segments
which are premium. In global market, to maximize the sales they select the premium marketing
mix and also consider the behavior of consumers. They respond to every unique value sensitively
and the purchasing behavior as it helps them in increasing the performance. As the consumers
who have a high standard of living, luxury, and performance are the most target customers of
BMW because they build these attributes in automobiles.
Globally BMW majorly concentrates on the premium segments and bring high-end brand
products to achieve success in the market. Strategy for influencing customers in the global
market is attractive and by setting a trend of products in series that enable them to focus on the
customers.
BMW represent their strategy of leadership by bringing innovation. They always keep the
innovative spirit to satisfy the request of the premium customers in the market. Company mainly
focuses on the CSR activities of the country for developing and successfully increasing the
market and majorly in science and engineering education and an eco-friendly environment.
BMW has its network in more than 120 countries around the world (Martin, 2009). For the
satisfaction of different local markets and their requirements, they had adopted a centralized and
unique strategy of the brand and enhancing the local marketing.

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When the products are been sold by a company in the local financial market, they deal
with the competitive and economic issues which make marketing more convenient for them. As
there is no language barrier due to the marketing in the local market and analyzing and
interpreting the local data is more easily and fast and also to get to know about the consumers
demand. Local marketing of BMW in Germany is very convenient for the group to know about
the customer preferences and perceptions about the product. Local marketing helps the group to
make the decisions and develop their marketing strategies which are more efficient and effective
in the market. The risk associated with marketing is very less when compared with global
marketing and also they need less financial resources for marketing in the local market (Kotler,
2010). In local marketing, the company has to deal in a single market and in global market
company has to deal with the different markets in different countries with different types of
customers and they have different tastes and preferences. For the promotion of cars in the
domestic market, the company can apply the same policies and strategies while in the global
market they have to apply different policies and strategies for the promotion of cars.
Marketing Mix
In international markets, the marketing mix adopted by the BMW group is different in
every market. BMW has developed the marketing mix strategies in order to achieve the desired
results in that market. By using the strategies BMW will be able to achieve the marketing
strategies. In order to get successful marketing strategies, managers must organize the varying
aspect of the marketing mix and have to identify the market segment to consider the efficient
market (Goi, 2009). The marketing mix adopted by the BMW in local and global markets is
different as they differ because of the different market conditions and customers.
Marketing Mix
Product
 Luxury segment
 High Quality products
 Excellent brand pull
 Good service
Price  Premium pricing
 Pricing helps create the “Want” feeling
 High cost of marketing to maintain brand
image

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 Innovation
 Separate pricing policies
Place
 Lean distribution model
 Dealers and showrooms get good
margins
 Good provision for spare parts
Promotion
 Innovative Advertising
 Pull strategy is more than push strategy
Product
The product in the marketing mix includes things to be sold. For any automobile industry
products are the essential and important segment to deal with in the market. BMW group, they
are very product oriented (Constantinides, 2006). Their main focus is on the products and
maintains the quality to develop and use the updated technology and equipment with the updated
features which are important to develop the brand products. In the international market, the
company adopts the policy that each product they manufacture will have to go through with the
life cycle process. They explore the market and use the best mix which is suited for the market
and the consumers. Before launching the product the market has been analyzed by the team to
know the marketing condition and the desires of the customers. When using the varieties of the
international market it is important to introduce the product in the market by using the product
policy according to the international market. Product standardization is done by the BMW group
to introduce the unchanged product. BMW Company introduces the same product in every
market but they customize the product according to the customers’ requirements.
Pricing
BMW Group has a pricing strategy according to the international market. The price of the
product depends on innovation, design, and quality. In the market, they have always been the
premium player for offering the luxury automobiles. The prices they set are the premium when
compared with their rivals of the automobile industry. The prices of BMW cars affected because
of many factors which can be engine size, versions, etc. The company introduces the product in
the international market with separate pricing policies on international markets as there is a

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difference in the cost of transportation, tariffs, and fluctuations in exchange rates (Sharaeva,
2013). The prices are set by the company after analyzing the different countries tariffs and
import duties. The company determines the cost of the product and full cost pricing is set by
considering all elements of costs in domestic markets and all the additional costs are considered
for setting the prices for international prices like taxes, tariffs, and transportation (Khan, 2014).
Promotional
Promotion is an important aspect for an organization to boost sales and creating a brand
image. It can be done by Public relations, direct marketing, sales promotions, and advertising.
BMW has adopted the advertising strategy for promoting cars. The advertising of cars in the
local and transnational markets is different. They use different slogans and advertisements in the
local and transnational markets according to the taste and understanding of the customers (Atwal
and Williams, 2017). They invest their big amount of money for advertising their cars in movies
e.g. "the world is not enough" movie in which James bond promoted the car and launch the new
car in the market. They use effective advertising techniques for promoting their cars in markets.
For entering into the American market, it was not an easy task for the BMW group. As the
competitor, the Japanese premium motorcar was not allowing them to enter into the market but
with the low- price revolution, BMW maintains and enhances the brand position by adopting the
advertising strategy (Johanson, 2013). Advertising is an efficient marketing strategy for
expansion in the international market.
Distribution
It is important to distribute the product in a place so that the buyer can buy the products.
In the world, BMW operates in almost 100 different countries with more than 4400 dealers who
are authorized to sell the products and services to the consumers. BMW company wants its
product to be efficient and dynamic in look. They more focus on product development and
innovation in technology (Cravens and Piercy, 2006). They use the latest technology and
manufacture the product by keeping the consumers in mind and their requirements. As the
manufacturing units of BMW is in Europe and the sale of luxury cars globally is highly

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dependent on the dealership system which is managed by international markets. The import and
export of products are based on the needs of customers.
The strategies adopted by the company to deliver the cars in different countries are
different as the policies and requirements of each country differ with each other. The channels
adopted by the company to distribute the product in the international market and domestic
markets need intermediaries like agents, merchants who are dealing in local and global markets.
Segmentation is done by the company to recognize the geographic, behavioral and demographic
characteristics of customers in international markets (Grein, 2000). The distribution channel
adopted by BMW is very simple they produce the cars send it to dealers and they transfer it to
the customers as per their requirements. Dealers in each country provide the after sales services
to the customers as it is important to take the feedback and provide the after-sale services. They
are also linked by doing the promotional activities in their country as per their culture and
without any barriers.
Domestic and global marketing approaches
BMW can adopt various international and global marketing approaches to enter a new
market. It is important to understand the marketing approaches of domestic and international
market. In order to maintain the position and profits, a company has to adopt the various

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approaches to understand the market. Ethnocentric approaches can be adopted by the company to
do marketing in own country to increase the sales and change the products according to local
customers preferences and taste. It also focuses on the value and ethics of the domestic country.
It benefits the company as it minimizes the risk of loss and increases the sales in domestic
market. Disadvantage of Ethnocentric approach is that it showcases the cultural short-sightedness
of the industry. For international marketing, a company can adopt the polycentric approach
where companies have to customize the marketing mix for meeting the customers taste,
preferences and needs for every international market in which products will be delivered. In the
domestic and international markets the Geocentric approach can be adapted to analyze the
preference and needs of the customers in all the global markets and after that can adopt a
standardized marketing mix for different countries (Avery and Bergesteiner, 2011). It helps in
making the efficient use of the resources by building the strong culture. The main disadvantage
of this approach is that company has to adopt the immigration policies of different countries and
it may put some limitations in implementation of business in other country. Audi adopted this
strategy by selling its luxury cars with the same features, branding & advertising themes in
worldwide. Strategic marketing and branding can be done in an effective manner to increase the
sale in local and international markets.
As we know BMW deals in luxury cars and their competitors like Mercedes-Benz, Audi,
and Jaguar. Each company wants to satisfy its customers by producing the most innovative and
developed cars with new technologies. BMW group focus on the selected premium segments in
the automobile industry (Leonidou, et al., 2013. BMW group are specialized in proving the high-
quality cars and in return they achieve high revenues. In compare, Mercedes Benz also deal in
luxury cars and have their doors open to a range
The marketing strategy adopted by BMW in the local market is they deal and assist in the
market by local advertising the range of products and also support the local promotions also by
advertising method. BMW hire promotional equipment for organizing the events in the local
market for promotion. The target market of BMW is for customer’s ages of 25 to 45. And they
promote the cars with the slogan "Ultimate driving machine". Mercedes Benz considers selling
the cars to white males and the customer who appeals for a luxury and safety but which are not
too expensive. For international marketing Mercedes Benz do the advertising campaign on the

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theme of sustainability. Like Mercedes Benz, BMW can also start advertising through some
innovative idea which attracts the customers of the international market.
The implication of Marketing Approaches and recommendations
In order to maximize the position in the worldwide market, the prices must be reduced to
maximize the profits of the company. The manufacturing costs can be reduced by the BMW
group and more focus should be on research and development as compared to competitor Audi
their future strategy is to finance more in the research and development department to make the
new regions of the automobile industry. Company can make collaboration with other major car
manufacturers to remain the leader in the automobile industry. They can widen the promotional
strategies to create a position in a new market. The implication of marketing approaches by
BMW will increase the profitability in business (Huang and Sarigöllü, 2014). The main
implication of the marketing approaches in the domestic and international markets will result in
meeting the customers’ needs by increasing the satisfaction level. When the target markets are
identified in local and globally then the focus can be made on the strategies for serving the
customers better from the competitors. BMW will adopt all the positive approaches to compete
with competitors like Audi, Mercedes-Benz and other luxury car dealers in the market.
Marketing approaches will help in product design and promotion of cars in the domestic
and global market by ensuring the customers to provide the customized cars in features and
advanced equipment's. Approaches and strategies of marketing make a focus on offering
products with innovation and by improving the product’s quality. Implications of approaches
will help in improving the performance of the company by increasing sales and profitability
(Lee, et al., 2015). When the strategies adopted are very well implemented that will help in
increasing production. Reducing costs will help in increasing the sales of BMW cars as their
competitors are also selling luxury cars on fewer prices which are affordable for middle-class
customers also.
Conclusion
In order to conclude the report, BMW group is a leading brand in luxury automobile in
the global and international market. It has been observed that the techniques of marketing mix
i.e. 4 P's product, pricing, promotion, and place distribution adopted by the company in the local

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and international markets are different as the customers’ needs and preferences are different in
different countries. The company provides customized cars to the customers as per their taste.
The company has various rivalries like Mercedes, Audi and many more who deals in luxury cars.
Every company is following its marketing strategy to improve their position in the market. BMW
Group is a well-known brand so they believe in maintaining the internal competence rather than
developing the product in large scale markets. BMW can make their future in many countries
like Asia, Russia and South America as in these countries have shown consistent growth in
value. For increasing the sale of cars as compared to competitors, the company should reduce the
prices of cars so they are affordable for middle-class people also as the competitors are offering
luxury cars at affordable prices so that the middle class can purchase the cars. To maximize the
position in the global market, the prices must be reduced to maximize the profits of the company.
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