Marketing Essentials: BMW & Audi Marketing Analysis Report

This report delves into the marketing strategies of BMW, a German multinational automobile manufacturer, analyzing its marketing functions and their interrelation with other functional units within the organization. The report critically evaluates key marketing elements, such as research, strategy, planning, and tactics, and their interconnections. It also provides a comparative analysis of the marketing mix of BMW and its competitor, Audi, using the 7Ps of marketing (Product, Price, Place, Promotion, Process, People, and Physical Evidence). Furthermore, the report examines the roles and responsibilities of the marketing function, including gathering market information, planning, product design and development, customer support, and promotion, while also discussing the interrelation between the marketing department and other departments such as human resources, finance, and production. The study aims to provide a comprehensive understanding of the marketing strategies employed by these leading automotive companies.

Marketing Essentials (Unit 2)
Marketing
Essential

Table of Contents
INTRODUCTION...........................................................................................................................4
LO 1.................................................................................................................................................4
Explain the key roles and responsibility of marketing function and its interrelation with other
function units...............................................................................................................................4
Critically evaluate the key elements of marketing function and their interrelationship.............7
LO 2.................................................................................................................................................9
Compare marketing mix of BMW with Audi.............................................................................9
Evaluate different tactics used by business to achieve objectives............................................12
Tactics applied the use of 7Ps to achieve overall marketing objectives...................................12
CONCLUSION..............................................................................................................................14
References......................................................................................................................................16

INTRODUCTION
Marketing is the social process which individual and organization acquire needs and
wants with the help of creating and exchanging values with others. The marketing is the
crucial tool and techniques in the business organization. This help to promote product and
services at market place (Blythe and Martin, 2019). This involves understanding of market
place, needs and wants of customers, build strong public relations and provide the best
quality of services. The present report will be based on “BMW” company is German
multinational company which produces auto-mobiles. The study lays emphasis on the
different roles and responsibilities of marketing function and its interrelation with other
functional units of organization. Report will critically evaluate by the key elements of the
marketing function and their interrelation with functional departments of organization. Study
will compare by marketing mix of BMW with Audi auto-mobile manufacture company. It
will also design by marketing plan for company.
LO 1
Explain the key roles and responsibility of marketing function and its
interrelation with other function units.
Marketing function is the main role which helps company to identify potentially successful
products for the market place. It is the vital part of the company. Marketing function help to
promote product and services at marketplace. It is effective and valuable for the BMW and its
growth factor. This satisfies needs and wants of customers. Functions of marketing are as
follows:
Gathering and analysis market information:
It is very important function which helps to collect and analyses market information in
effective manner. As per the view of Kozlenkova and et.al., (2015), This function plays very
important role in BMW. In this marketing department collect more information which is
related to needs and wants of customers. After, that marketing manager of BMW analysis this
information and try to solve those in effective and better manner (Baker and Saren, 2016).
This marketing function is interrelating with research and development department of BMW
because R&D team collect market information by using various technologies. This relation is

significantly important for the company because with the help of this, correct information is
received in company and employees need to address those to increase profit.
Market planning:
Market planning is also one of the most important marketing functions which help to create
market planning as per requirements and analysis. In order to achieve goals and objectives of
BMW there is required to make market planning in better manner. For example: company has
market share in particular market. In this case they can increase this in order to achieve
objectives. For that, manager prepare market plan in respect of the level of production and
promotion efforts (Moorman and Day, 2016).
Product design and development:
Product design and development is important function of marketing of BMW in selling of
product. Product design and development plays important roles in BMW Company. In this,
roles of this function are to develop product and services as per needs of customer and their
requirements. Unattractive and weak design and development is not good for company. In
this role of this marketing function is to create the best design of product. Product design and
development function is related to the production and operation department of company
because this department take care of product design and development (Folinas and Fotiadis,
2017). This department keep cars in company for long time till that it is not sale.
Customer support services:
Customer support services are effective and valuable for the business. This function plays an
important role in BMW at the time of post purchasing of car. This includes various services
like technical, mechanical and maintenance services (Ramanathan, Subramanian and Parrott,
2017). Helping customers in those ways satisfies and help in today's competitive age.
Promotion:
Promotion means inform to customers about products of the company and also to inspire
them to purchase this product (Mena and Chabowski, 2015). This function plays an important

role in BMW for promoting cars at the marketplace and selecting the best promotional
activity. Those promotional activities are advertisement, social media, YouTube and sales
promotion. Those are very important and effective for the company. This marketing function
which is promotion of products is highly interrelated with finance department because it
properly allocates funds for advertising of product at market place (Hair Jr and et.al., 2015).
This is high important because with the help of this company provide prefect information to
customers.
Those are important functions of marketing in order to achieve goals and objectives of
company in the marketplace with addressing those functions. Inside BMW have various
functional units which are interrelated with other functional units. Those functional units are
marketing, human resource, finance, production and operation. These are as follows:
Marketing department interrelates with human resource team:
The Marketing department is an important section of BMW because this department
promotes and also try to satisfy needs of customers. This department is interrelated with
human resource section of the company. The HR department is developing accuracy and
productivity of any department and also help to provide training sessions. By this department
are able to gather experience and best employees by training them. In order to that marketing
department have strong team. Through, that both departments great interrelated (Saunders,
Barrington and Sridharan, 2015). This interrelation is important for the BMW are as follows:
 With the help of this interrelation, marketing department is gathering and attract right
skills and ability of peoples.
 This also important for marketing and branding of company.
 It is also important for more clarify the roles and responsibilities to employees in
effective manner (Harmeling and et.al., 2017).
Marketing department interrelates with finance department:
Money and finance is the main factor for each process of BMW. The finance department
allocate funds to marketing department in order to pay their marketing expenses, produce
commercial, packaging and design of product. This also support in various statistical

information about moderate price which customers expect. The finance department is
considering as a backbone of the company. Thus, through that both departments are
interrelating with each other in company which is BMW (Bai and Chang, 2015). There is
various significance of this interrelation which is as follows:
 It is more important for keeping on budget because this is responsibility of marketing
to manage significant amount of money for business.
 Fund is important for company in order to fulfill the needs and wants of customers
and company by promoting product.
Marketing department interrelates with production and operation team:
The production and operation team is highly keeping product for long and also safe from
damages. The marketing department gathers information about needs and wants of
customers. This section has also surveyed the quality, expenses and products with peoples
and customers. Hence, the marketing department is sharing this report with production
department in order to develop a product with reasonable prices. The marketing department is
supported to various things about peoples which are not like by the customers in their product
at the time of purchases. This helps to improve quality of product and services at
marketplace. Through, that both marketing and production department is interrelated with
each other in company and also in order to achieve goals and objectives of
company(Nicholas, 2018). Significance of this relationship is as follows:
 This relation is highly important for enhancing performance of the BMW.
 This is important for increase profit margin of company by addressing the needs and
wants of customers (Krush, Sohi and Sain, 2015).
Those are the interrelation between other functional departments with the marketing
department. This interrelation is highly important and effective for business and also for
satisfying customer needs.
Critically evaluate the key elements of marketing function and their
interrelationship.
There are various key elements of a company which has created various goals and objectives
of company by collecting such information from the marketplace. The key elements of the

marketing function are research, strategy, planning and tactics (Ingram and et.al., 2015). The
key roles and responsibilities of marketing function and its interrelation with other functional
units are as follows:
Research:
Research is good and important key element of the marketing function for successful market.
This help to gather and collect various information with marketplace for satisfying customer
needs. The research help to getting essential information regarding the all factor like logistics,
finance, raw material and other business process. This considers a crucial part of business and
its growth (Baker and Saren, 2016). The research is interlinked with R&D department. Like:
R&D department collect correct information related to the company than it is good for
company. Other hand, if R&D department is not collect correct information than it give
negative impact on company in addressing customers needs.
Strategy:
Strategy is key element of company which effective and best for company to build proper
schedule to achieve goals and objectives of company. It is the process which is help to judge
strength and weakness of product and company's business operations. This process is allowed
to company for produce strategy as per market research (Larson and Draper, 2015).
Planning:
Planning is other function which is considers after strategy planning and building. The market
department is responsible for financial, distribution and communication factors of business.
This is important for completely achieve objectives of company. The planning is related with
the finance department because this give proper funds for implementing planning at
marketplace. This can give negative and positive impact on the BMW Company. Like:
finance department is allocating funds for market planning without making proper budget. In
this case company suffers from loss. Other hand, funds are proper and on time are best for
company and its growth (Blythe and Martin, 2019).

Those are important tactics which are important for company’s growth and increased profit at
marketplace in effective manner.
LO 2
Compare marketing mix of BMW with Audi.
Marketing mix of company is help to address important elements of marketing which are
product, price, place, promotion, process, peoples and physical evidence (7P's of marketing,
2017). With the help of marketing mix company is able to build new strategy as per market
analysis and also compare with other organization like Audi (Egger, Volkmann and Schoder,
2018). The Audi is other successful auto-mobile manufacture company and competitor of
BMW. The compression between both marketing mix with 7P's of marketing are as follows:
Basis BMW Audi
Product BMW is the group which is mainly
focused on manufacture of luxury four
and two-wheelers vehicles (Malhotra,
2015). Their some products are based
on personalized to customers while
majority of products and services. The
BMW offers motorcycle like sports,
roadster, and adventure.
Audi hold the best image in luxury
brand because its products are one
of best and attractive. The company
has offer the different products in
the market. Their cars are involving
best technology by change in
effective manner (Shiu, 2017). The
products of company are SUV and
sports cars.
Price BMW is sales premium brand car and
that follows premium pricing strategy.
The premium pricing strategy use by
company to charge higher price than
their competitor products. This pricing
strategy support companies image at
market place. The pricing strategy of
company has the major effect on its
marketing tools. This appeal to
premium customer segment (Atwal and
The company also use premium
pricing strategy to cash its brand.
The pricing strategy of Audi is
based on the competition pricing.
The company is provided the high
quality of product and services to
customer on premium pricing
strategy (Kapoor and Kulshrestha,
2015).

Williams, 2017).
Place BMW is the high global brand which
operates in more than 150 countries. Its
distribution channel is massive dealer
network across the world. That is help
to sales products in various countries
and places. The cars are directly sold to
the customers by showroom. There
showrooms are located in the urban
cities and also at prime location (Shiu,
Bonacina and Binninger, 2017). The
main distribution features are good
provision for spare parts, model of lean
distribution etc.
The distribution and place policy of
Audi in marketing mix best.
Company has their own production
facilities. The company has their
exclusive network of dealership and
also after sale services (Pike, 2015).
Their distribution channel is
“producer to distributor to
wholesaler to dealer to customers”.
Promotion Promotion policy is the best for BMW
to promote products and services at
marketplace. In manner to achieve
goals and objectives of customers. This
process is very difficult part of these
products.
Their promotional slogan is “Sheer
Driving Pleasure”. Its selling expenses
are including sales, marketing and
advertising expenses. The company is
including various ways to promote
product and services at market place
such as traditional and digital channels.
Manager uses video marketing, print
marketing and also with the help of
famous celebrities (Gosline, Lee and
The promotional activity of four
rings which are overlapping. That is
creating brand image in customer’s
mind. The company use for
promotion products like TV, print
media, internet marketing and so on.
Their best brand image is giving
message to high profile to people
(Da Silva and Mazzon, 2016). The
company has their promotional line
which is “progress through
technology”.

Urban, 2017).
Process Process is very important part of the
company. The company take care of
their products which are always
available at stores. The company is
also providing online delivery process,
where customers also placed order of
their product and received by staff at
computer screen. The online process is
effective and best for company and
customers. The company is providing
both online and traditional process of
purchasing to customers. The company
should look towards innovation and
creativity to improve its process (Pike,
2016).
The Audi sales their product by
showroom to customers. In their
product manufacturing process, they
use high quality of technology. With
the help of this customers are highly
satisfied in effective manner with
their luxury brand products
(Tomczak, Reinecke and Kuss,
2018).
Peoples There are various people and
employees who are working in
different sectors and departments.
Company has people working under
sales, marketing, research and
customers services departments for
provide well and best services to
customers. The employees and peoples
of suppliers team is play an important
role to improve quality of product and
services (Tomczak, Reinecke and
Kuss, 2018).
The company has eligible
employees and peoples who are
managed all problems which are
creating in company. Their
customers support team is full
trained and best which are give
better customers services to them
both post and after sales services
(Pettinga, Angelov and Bateman,
2015).
Physical
evidence
BMW sales its products in a distinct Audi logo is best physical evidence
which is provided by company at

color packaging are identifiable on the
retail shelves. There color and design
make unique and different from other
product. It is also has online websites
which is user-friendly and also allow to
customers view its product is high
quality image product and services
(Kozlenkova and et.al., 2015).
marketplace. Their design makes the
best quality of product and services
at marketplace (Cudny and Horňák,
2016).
Evaluate different tactics used by business to achieve objectives.
There are different tactics which are used by BMW to achieve objectives and goals of
company at marketplace. The proper marketing planning help to achieve objectives of BMW.
For that, company make marketing mix which is effective and valuable in terms of company
growth in manner. Product of company satisfies demands of customers.
Pricing strategy is the best tactics which is applied by company to attract premium customers
towards brand and its products. For achieve objectives of company, they can set lower price
in the beginning. With the help of this, every customer able to purchase this brand car (Hair
Jr and et.al., 2015).
Other hand, promotional activity is also the best tactic which is played an important role in
the organization. With the help of these tactics, company is able to give little information to
customer and also help to attract customers towards company. Promotional activity is giving
the best impression on customers mind (Rowley, 2016).
Further more, process of company is included the various product and services to company.
That is the best strategy to achieve objectives of company. In this tactic, manager of company
is give the best customers services. With the help of this, customers are satisfied with
company’s services and attract more towards them (Folinas and Fotiadis, 2017).
People of company like management team, employees, production department and marketing
team. People of company is give the best services and also with the best aspects to customers

because management team is important base of company. They are give services to customers
and manage all the things for company (Blythe and Martin, 2019).
Tactics applied the use of 7Ps to achieve overall marketing objectives.
Summary:
The strategic marking plan is summary of market as well as future requirements. This shows
the budget, mission, vision, controlling and reviewing.
Vision:
 To be a most successful manufacturer on industry.
Mission:
 To be world’s leading provider of premium products.
Objectives:
 To increased 20% sales till the end of 2020.
 To increase investment rate by 10% on research and development department.
 To innovate different services for customers till the end of 2020.
Market analysis by using PEST and SWOT analysis PEST analysis: Political: BMW is affected by the common political laws which influence by lots of
regulations. Like political stability is affect to BMW group in two ways this can affect
customer ability to purchase directly. Other hand, this invested in various countries
which is highly risky. Economic: global economy is affect to company performance, valuation and profits. Social: all countries have their own culture difference by this company faced
problems. The company has manufacture all over world. In this company have to do
heavy research and location plant. Technological: in this industry have high level of competition. There is only the way
of compete with others which is innovation in car and add new features.
 SWOT analysis:
Strength
 It well-known brand globally.
 Highly skilled labour.
Weakness
 It is well-known company with high
status branding.
 Customer needs
Opportunity Threats

 Innovation and alliances.
 New technology.  Rising fuel price.
 Chinese manufacture.
STP analysis:
 Segment: The segment for BMW will base on age group between 25 and 40 years.
 Target: Target to youngsters who love travel with their personal ride.
 Position: The position of company will be the good and higher because of youngsters
loved travel with luxury car.
7P’s of marketing Product: the company sell products like cars and sport bikes. To extend their
business, company should introduce new product which is line with the latest trends.
Other hand, in existing product company should provide warranties, credit and
helpline services. Price: company use premium pricing strategy. In order to achieve goals of marketing,
they should provide discount, coupons and allowances to attract customers. Place: In that company should open its showroom and giving ads on social media.
This can aid to increase the selling of products by social media ads (Baker, 2016). Promotion: BMW manager should collect information through customers and start
sending them on E-mail and SMS. Peoples: the company should provide the best training to their employees and peoples
for give the best customers services. Process: they should use computer across handle various process for increasing
efficiency and delivery on time.
 Physical evidence: BMW should collect feedback from customers related to
packaging and after than improve this in effective manner.
Those are tactics which are help to achieve overall marketing objectives company.
Budget
Expenses Amount in pound
Advertising expenses 150
TV and print media 100
Raw material 300
Transportation 50
Total 600

Controlling:
The controlling is important and effective aspects which are help to measures the
performance and growth of company at market place in effective manner. For that company
is use feedback from customers. This is also the best way of addressing needs of customers.
By this company manager is collect records of mistakes and try to solve them. By this
customers are happy and by seeing those changes per their needs and wants.
CONCLUSION
From the above study it had been concluded that the marketing has very important part of the
company. This helped to promote product and services at market place by promoting those
with the help of promotional activities and design. The report had been covered by various
functions of marketing and its roles and responsibilities in company. The various marketing
function such as market planning, customers support services, product packaging and
development and most important gathering and collect best information from market. Those
have given best marketing function because that had help to address requirements of
customers. It had been also concluded that the marketing department has interrelated with
other functional unit to promote best and effective roles and responsibilities of company.
Human resources department has interrelated with marketing unit in order to trained
employees and build best marketing team. Report had also compared by the marketing mix of
company in order to build strategy to achieve goals and objectives of company. Marketing
mix of company included the product, place, price, promotion, process, peoples and physical
evidence.

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