Fairfield School of Business: International Marketing Report on BMW

This report delves into BMW's international marketing strategies, examining the key arguments in the global versus local marketing debate and how product, pricing, promotion, and distribution differ across various international contexts. It analyzes different international marketing approaches, compares home and international orientations, and evaluates BMW's market entry strategies. The report covers topics such as global strategies, multinational approaches, and transnational strategies. It provides a comprehensive overview of how BMW adapts its marketing mix to succeed in global markets, including an examination of its product offerings, pricing strategies, promotional activities, and distribution channels. The report concludes with recommendations for BMW to enhance its international marketing efforts, including suggestions for business expansion, product line diversification, and pricing adjustments to increase its customer base and market share in the global automotive industry.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 3............................................................................................................................................9
P5. An overview of the key arguments in the global vs local debate.....................................9
P6. Investigation of product, pricing, promotional and distribution approach differs in a
variety of international contexts...........................................................................................11
TASK 4..........................................................................................................................................12
P7. Analysis of different international marketing approaches.............................................12
P8. Comparison between home and international orientation..............................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
International marketing is described as the performance of business activities that are
designed by the management department of the company to plan, price, promote and direct the
flow of an organisation's products and services to customers in more than one country for a
profit. Global marketing is important for overseas opportunities to increase the market share and
customer base (Akgün, Keskin and Ayar, 2014). This assignment is related to BMW which was
founded in 1916 by Camillo Castogolioni, Franz Josef Popp and Karl Rapp. This firm
headquartered in Munich, Bavaria. It deal in auto-mobile sector and manufacture various
products such as cars, motorcycles and engines. This report will discussed about understanding
of marketing contribution to business strategies in a global context and evaluate the entry to a
selection of global market along with key success factor. Further will discussed about the
elements of marketing plan can be adapted or standardised across international market.
Understanding of organisation and evaluation of international marketing efforts such as
multinational, global, transnational and meta national will be described.
TASK 1
1

2

3

4

5

6

7

TASK 3
P5. An overview of the key arguments in the global vs local debate
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Basis Global marketing Local marketing
Meaning It refers to the activities of
production, promotion,
distribution, advertisement and
selling products an services
across the geographical
boundaries of the nation.
It refers to marketing of the
goods and services within the
geographical boundaries of the
country (Richter and et. al.,
2016).
Payment mode In international market, the
organisations and customers
use online transactions like
Paytm, net banking as a mode
of payment.
In local market, cash payment
like hard cash and cheques are
used.
Risk factor In this market, there are high
risk related to hacking data and
information of the company.
There are less risk in
comparison to international
market.
Accessibility Before purchasing and buying
the products by the consumers
in international market, they
can not be touched and seen by
them.
In it, the goods an products can
be touched and seen by the
customer before purchasing
them.
Availability of services This market trade the goods
and services 24/7 hours,.
This market trade the goods
and products only during the
time of day.
Aims The goal of this market is
provide satisfaction by
providing better quality
product according to the
customers.
The major aim of this market
is to sell the products and
services (Samaha, Beck and
Palmatier, 2014).
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Profit maximization This market has high chance to
earn profit because it operate
the business internationally
and various countries.
There are less chance because
it operate the business within a
nation (Skarmeas, Zeriti and
Baltas, 2016).
Market share International market has more
market share because the
business operate globally.
It has limited market share
because the organisation
operate their business within a
region.
Business operation In this market, the business
operation can be more than
one nation and region.
In this market, the business
operation is within one
country.
Research In global market, there are
deep research is required
beachside the business is
operate in various country so
the knowledge about the
country, its culture, taste and
preferences and others are
need to know.
In this market, there is no and
less research is required.
Expansion In this market, the expansion
of the business is more
because the products and
services are provided to the
different customers of several
nations in comparison to local
market.
There are low level of
expansion because the goods
an d services are provided with
in the country (Souchon and et.
al., 2016).
P6. Investigation of product, pricing, promotional and distribution approach differs in a variety
of international contexts
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Factors UK International market
Product Product basically refers to the
process of converting raw
material in to finished good.
BMW offers various products
like cars, motorcycles and
others (Surugiu, and Surugiu,
2015).
In international market as per
the demand of its customers,
the organisation produces
electric and hybrid motor
vehicle. For example, BMW
i8.
Price In its pricing strategy the
company use premium pricing
as they have high brand
awareness in that place. The
pricing has been clear to attract
niche markets of auto mobiles.
At international level the
company adopt domestic
pricing on its entry level
vehicles for the newer markets.
For example, in India and
Brazil, it offer a competitive
price for its smaller models
Promotion The company mostly use
social media that consist
Instagram, Social media,
Twitter and others. The
management department of the
company think that its is
important way to connect with
the customers and provide
information about the products
and services that are provided
by the company.
In iternational amrket they use
TV, Radio, newspaper,
internet, social media and
others as a promotional tools
and create awareness about the
products and services that are
manufactured by the company
(Tiago and Veríssimo, 2014).
Distribution To distribute its products in
UK market, the management
department of the company
has 156 dealers tart are
Inn international market,
across the world BMW group
opertaes in huyndred republics
with over 400 brokers who are
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licensed to trade and wholesale
BMW models and there care
148 dealers licensed to trade
MINI Cooper.
contracted to trade brand new
and second-hand auto-mobiles.
TASK 4
P7. Analysis of different international marketing approaches
It is important for the organisations to decide their marketing strategies according their
business and capabilities so that they can build a good brand images at market place, generate
profit and achieve growth and success in market. Different strategies are as following:
Global strategy- In this strategy, the management department of the company use
uniform and same strategy in across the world so that there world be no discrimination within the
country and among the customers on the basis of territory (Vellas, 2016). For example, BMW
use same promotional stra6tegies whereas it operate its business in a specific country or
internationally. This strategy is beneficial for improving the effectiveness of the products and
services and helpful to get competitive advantages in market.
Multinational- It is a type of strategy in which an organisation has different branches in
more than one nation and every identity works accordingly. There are no proper rules and
regulations of the parents firm is followed by them. This strategy help the organisation focused
on adapting their products and services to each and individual local market.
Transactional strategy- This strategy is complex in nature and the organisation does not
considered any nation like their home and conduct business according to external environment.
This strategy help in make balance the desire for efficiency with the need to adjust to local
preferences within different countries.
P8. Comparison between home and international orientation
In home orientation, the organisations considered only similarities between the market
where they are operating their business and the market in which they are going. If the firms
getting success in the existing market then the management deportment of the company think
that they can get success in external market also in future country. It know that the both nations
have common market characteristics and business environment where they are running their
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business (Akgün, Keskin and Ayar, 2014). This approach thinks that if the goods and services
which are offered by the organisation to customers are high quality and it is not possible to the
competitors that they can negatively affect the images and reputation of the company.
Global orientation considered the assumption that there are similarities and differences
between the international and local market. There are various difference between those that
would considered the organisation to design strategies accordingly over others (Ambos and
Håkanson, 2014).
Conclusion and recommendation- The recommendations and conclusion is as following:
 BMW must have try to expand its business in those countries and nations where it is not
operating and running its business and business operations.
 This company must manufacture a product line such as trucks, pickups, buses, light and
heavy vehicles so that it can gain competitive advantages and make enhancement in its
profitability and economic condition of the firm.
 The organisation should make change in its pricing strategies according to its customers
so that it can increase the consumer base and sales of the products and services which are
produced by the company.
CONCLUSION
From the above information it can be conclude that it is important for the local companies
to expand their business at international level so that they can enhance their profitability and
customers base when they operating their business globally. In Auto-mobile industry customer
are choosy regarding the products and they prefer those products who are made by using latest
technology and abaled with new and latest technologies. It is also important for the company that
when they expanding their business at international market, they should also use marketing and
promotional strategies so that they can easily provide the information about the product and
services of the company and attract more customer towards the product of the firm and generate
revenue.
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REFERENCES
Books & Journals
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Jean, R. J. B. and et. al., 2016. Assessing endogeneity issues in international marketing research.
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Richter, N. F. and et. al., 2016. A critical look at the use of SEM in international business
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Samaha, S. A., Beck, J. T. and Palmatier, R. W., 2014. The role of culture in international
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Skarmeas, D., Zeriti, A. and Baltas, G., 2016. Relationship value: Drivers and outcomes in
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Souchon, A. L. and et. al., 2016. Spontaneity and international marketing performance.
International Marketing Review. 33(5). pp.671-690.
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Surugiu, M. R. and Surugiu, C., 2015. International trade, globalization and economic
interdependence between European countries: implications for businesses and marketing
framework. Procedia Economics and Finance. 32. pp.131-138.
Tiago, M. T. P. M. B. and Veríssimo, J. M. C., 2014. Digital marketing and social media: Why
bother?. Business horizons. 57(6). pp.703-708.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
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Online
BMW Group. 2019. [Online]. Available Through:
<https://www.crunchbase.com/organization/bmw#section-overview>.
Marketing mix of BMW. 2019. [Online]. Available Through:
<https://www.marketing91.com/marketing-mix-bmw/>.
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