Marketing Principles and Strategies: An Analysis of BMW's Practices

This report provides a comprehensive analysis of BMW's marketing principles and strategies. It begins with an introduction to marketing principles, focusing on the customer-centric approach and the 4Ps of marketing. The report then delves into the various elements of the marketing process, including evaluating opportunities, selecting target markets, and making marketing mix decisions. It examines the benefits and costs of marketing for BMW, emphasizing customer focus and demand-driven operations. Further, it explores the micro and macro environmental factors influencing BMW's marketing decisions, segmentation criteria for different markets, and targeting strategies. Buyer behavior's impact on marketing activities and proposing new product positioning are also discussed. The report investigates product development for competitive advantage, distribution strategies, pricing models, and promotional activities. Additional elements of the extended marketing mix and marketing mixes for different segments are analyzed. Finally, the report illustrates the differences in marketing products and services to businesses rather than consumers and how and why international marketing differs from domestic marketing, with Vodafone UK as a case study.

Marketing Principles

Table of Contents
INTRODUCTION....................................................................................................................3
TASK1......................................................................................................................................4
1.1Explain the various elements of the marketing process..................................................4
1.2The benefits and costs of a marketing for the BMW......................................................4
TASK2......................................................................................................................................5
2.1Macro and Micro environmental factors which influence marketing decisions of BMW
..............................................................................................................................................5
2.2Segmentation criteria to be used for products in different markets ...............................5
2.3.Targeting strategy for a selected product/service...........................................................6
2.4How buyer behaviour affects marketing activities in different buying situation............6
2.5Propose new positioning for as selected product/service................................................7
TASK3......................................................................................................................................7
3.1How products are developed to sustain competitive advantage .....................................7
3.2How distribution is arranged to provide customer convenience ....................................8
3.3How prices are set to reflect an organisation’s objectives and market conditions .........8
3.4How promotional activity is integrated to achieve marketing objectives.......................9
3.5Analysing the additional elements of the extended marketing mix ...............................9
TASK4....................................................................................................................................10
4.1Marketing mixes for two different segments in consumer markets .............................10
4.2.Illustrate differences in marketing products and services to businesses rather than
consumers for Vodafone UK.............................................................................................10
4.3How and why international marketing differs from domestic marketing in the case of
Vodafone UK.....................................................................................................................11
CONCLUSION.......................................................................................................................11
REFRENCES..........................................................................................................................13

INTRODUCTION
Marketing is the process of buying and selling of the goods from the buyer to the
consumers including the advertisements process,shipment and also provides the after sales
services. The marketing Principles are the customer based principles(Henley, Raffin and
Caemmerer, 2011). They are mainly concerned with the customers requirement and fulfil
their needs. Marketing principles are based on the 4P's of marketing. The 4P's are the
promotional tools for the for the marketing principles. BMW is an vehicle company deals in
providing various deluxe car services to their customers. The report is based on the BMW
marketing process and how they provide the satisfaction to their customer's.
TASK1
1.1Explain the various elements of the marketing process
Marketing is the process of exchange of the goods to the customer's and proving
them the after sales services. The marketing process consists the various steps which BMW
has to analyse for their organisation.
 Evaluating the marketing opportunities- This step aims at analysing the
current marketing situation and comparing it with the future trends. It
includes the evaluation of the internal and external market.
 Selecting the target market- This consists with the targeting a particular set of
group or people against the products offering.
 Marketing Strategy- Marketing strategy consists with the framing strategy
which are relevant to the targetted group selected.
 Marketing mix decision- At this stage the appropriate decisions for marketing
mix are chosen by the BMW(Deshpande and Rundle-Thiele,2011.). It
includes framing of the price policy setting up the distribution channel and
adopting various promotional tools.
 Implementation- This is the last step in which all the strategies framed are
implemented and the control over the working is done.
1.2The benefits and costs of a marketing for the BMW
Mostly the business organisation are based on the market approach and aims at
development of goods according to the customers wants and requirement. The market

oriented approach leads to provide certain benefits to the advantages to the BMW. The
certain advantages are:
Customer centric- It leads to focus on customer's on customer's wants and demands. The
BMW provides more attention towards their buyers and aims at providing them satisfaction
fully(Allyson Dooley, C. Jones and Iverson, 2012.).
Addressing Demand- BMW work is based on the customer's demand and work is performed
according to the customer's willingness.
Providing customer benefits- This process helps the BMW to maintains the stability in their
customers and helps in increasing the loyalty of the buyers towards the BMW.
Adapt to the change- They works with focusing on consumers wants aims at developing
more sustainability in products over the competitors which leads to their survival in
competitive world.
TASK2
2.1Macro and Micro environmental factors which influence marketing decisions of BMW
The environmental factors micro and macro have a great influence in the marketing
decisions for the BMW.
Micro factors:Micro factors are considered as the significant factors for the success of
BMW. The micro factors are:
Customers- Customers are the most important assets for any organisation. The BMW must
provides excellence services for their long term bounding.
Employees- The working staff in the BMW are well educated and have a depth knowledge
in the field(Nowak, Gellin, MacDonald and Butler 2015.)
Media- They are the key factors for the promotional activities in the BMW.
Macro Factors: Macro factors considered as the factors that determines the that and
opportunities in the BMW.
Economic Environment- They helps in identifying the consumers buying and selling
abilities.
Technological Environment- Generation of new methods and adaptation of new
technologies in the working.

Cultural environment- This is the change in culture trends, taste and preferences of the
buyers.
2.2Segmentation criteria to be used for products in different markets
BMW deals in the wide range of the products for build different products for fulling
the demand of the different people. BMW targets their different segments in the different
ways:
1. Geographic variable- BMW Can do their market segmentation on the basis of the
population, the size and the environment of the certain region.
2. Demographic variable- They can categorised their market segments on the basis of
sex, age , status, education and income level of the people.
3. Psycho-graphic variable- BMW can evaluate and do the market segmentation on the
basis of the the buyers lifestyle ,status ,class,Interest level, personality
4. Behaviour-able variable- The behaviour-able variable consists with divideation of the
market according to the the purchasing buyer of the purchasers and the customers
loyalty towards the company.
The segmentation in the different sectors helps in the targeting the particular sector of the
customers and emphasis on work according to it.
2.3.Targeting strategy for a selected product/service
Mostly the company provides the different products and services for their different
customers. Companies adopt different marketing strategies for gaining attraction towards
their customers. Mostly the organisation focus on adopting the large sale by framing a wide
marketing strategies for their company this helps in targeting all levels of customers and
leads to an expansion in the business
The BMW adopts the strategy of choosing certain group of people and targeting
some people from its overall customer's. This helps in focusing on the certain group wants
and requirements(Izvercianu, Seran and Buciuman, 2012, ). The strategies framing helps in
achieving the objectives effectively. They frame the luxury goods and targets the people
having the capabilities of buying the products having a ability of purchasing at higher prices.
They highlights more on the economic class group and deals in the goods at the higher rates
which provides them a huge amount of profits from the total sales.

2.4How buyer behaviour affects marketing activities in different buying situation
Consumers behaviour leads to an great impact in the market and also influence the
buying situations. Customer's are involved on the products and services based on the
tangible and intangible products. There are certain kinds of buying behaviours. They are:
Complex buying behaviour- In this type of behaviour consumers takes a lot of time in
thinking before the purchasing of the goods. As mostly these goods are concerned with the
precious or expensive in nature.
Variety seeking behaviour- This type of behaviour consist when the buyers are having
certain options for the single product. They check all the aspects of the products before
buying and evaluates the certain options.
Dissonance buying behaviour- When the customers are willing to buy the products but
having only few options for the particular product.
Habitual Buying behaviour- These consists the buying of the goods which are essential for
the daily requirements like milk ,rice etc.
2.5Propose new positioning for as selected product/service
The BMW Must focuses on the product positioning as it helps in generating the
locality towards the business. The product positioning is considers as the marketing
technique aims at renovating the present products in the best way to target the different
sectors of the people(Hershey and Wood 2011.). The company creates the message
regarding their products and provides the message related to the product to their customers.
They choose different mediums such as television, advertisements. The message contains the
overall information regarding the goods their quality level ,innovative thinking and the
creative ideas. The BMW recently advertise for their different car ranges targeting different
sectors. They promoted there certain product to gain attention of the people towards the
BMW. This helps in people getting aware about the different product line offerings by the
BMW. The appropriate and efficient positioning may leads to creates a higher level of sales
and creates the emotional support in the customers mind.

TASK3
3.1How products are developed to sustain competitive advantage
In today's from surviving in the competitive world the companies are adapting the
various methods and technologies up gradation in their working. BMW is competing with
Audi ,Mercedes Benz etc. Product innovation and development is considered as the vital
component in the competitive environment. Product development leads to be organised in
the two ways one for the market research evaluating and other one is related to the idea
generation innovate ideas creation BMW leads to developing in their core products and
develops certain new products for their buyers and for the growth of the business. It is most
essential function for the BMW to survive in the competition against their various
competitors(Jobber and Ellis-Chadwick 2012). BMW follows certain steps in the product
development.
Ida screening Development and implying various tests ,technical implementation and
initializing the product prizing and further performing various promotional activities for
product familiarization in the market.
3.2How distribution is arranged to provide customer convenience
BMW deals in selling of there own made products. BMW follows the certain
distribution channels for providing their goods ad services to their customers. They produce
their own goods and sells directly to there users without any channel they deals directly
sometimes through there certain outlets . The customer's buys directly goods from the BMW
showrooms without requiring any agent in between there purchasing they deals directly.
Sometimes the BMW collapse with the certain other companies and purchases some parts
from the different outsources and complicatedly collect tall the products for the formation of
the single product. The channel of distribution sometimes requires the agent or middlemen
for the buying of goods from the certain seller(Sheth and Sisodia,2015) .The dealing is
performed through certain agent for the purchasing of the goods the direct dealing is not
performed in this channel. BMW have certain outlets at different places leads to flexibility
for the customers to reach their stores.

3.3How prices are set to reflect an organisation’s objectives and market conditions
Pricing strategies consists of different types. The certain types of pricing strategies
that reflects the organisation objectives and market conditions are:
Penetration pricing- In this state the company keeps their initial prices low to make product
well settled in the market and gaining attention of people for the product.
Price skimming- In this condition the organisation keeps the price of the goods slightly high
to attain the goods image high and targeting the economically class group.
Premium pricing- This is a state where products are supplied at the higher price and
providing the high quality of goods against the high price.
Economy pricing- This is the state where both the price and product service offerings are at
low price.
The BMW chooses to adopt the premium and penetration pricing for familiarising with new
products and keeping their goods in a luxury range.
3.4How promotional activity is integrated to achieve marketing objectives
Promotion is the element that helps in getting product familiarised in the market
through different tools like advertisements, television,sales promotion. Companies have to
spend there certain amount in promotional activities for their products which helps ion
reaching information regarding their products to the consumers. Mostly companies adopt
tools like radio,online websites,magazines(Wang and Pizam 2011.). Some companies also
adopts the personal selling method for their products promotion. The BMW chooses to adopt
various strategies like the personal selling they advertise their products in the newspaper to
attract more people. There organise certain seminar to provide the information related to
their products and making people aware about their products by briefing them about the
advantages related to their commodities and there products uses for the people which
influence the users to buy the product and services in their life .
3.5Analysing the additional elements of the extended marketing mix
The main 4 P's of marketing mix are product ,place .price ,promotion. Further
extension to the marketing mix there are 3 more p's in the marketing mix
people,process,physical evidence

People- People working in the management and the employees working in the organisation
are responsible for marketing activities . They leads to influence the organisation culture
maintaining a relation between the customers and sellers.
Process- The process consists a method of doing something . The marketing activities
conducted through certain process which leads to effective in the organisation . The working
process must be evaluated effectively.
Physical evidence- It includes the various various services considering the delivery facility
providation , providing the different infrastructure facilities. The service must be properly
rendered and must be provided in a healthy way . The physical appearance also consists
with the the presentation of the stores in a neat and clean way and they must be well
maintained.
TASK4
4.1Marketing mixes for two different segments in consumer markets
The marketing mix consists with the product place price promotion, people,
process,physical evidence. Generally the organisations classifies their segments on the basis
the demographic ,geographical region etc. The Vodafone UK leads to its market
segmentation in the the demographic and psycho graphic level
Demographic variable psycho graphic variable
Product- They build up their products
according to the age relevant factors
They build up the products according to the
status and the earning capacity of then
people.
Place- They chose the places like the
commercial markets.
They chooses the places like malls certain
conferences
Price- Price are generally adopted at the
lower level
The price ratio is generally high
Promotion- The online sites and
advertisements are the personal tools
They adopt the personal selling methods.

4.2.Illustrate differences in marketing products and services to businesses rather than
consumers for Vodafone UK.
Different business organisation deals in different types of goods and attains different
types of customers. The b2b model consists with the transaction of business within the
another business activity. In which both the business parties are transited within other. The
whole seller purchase the goods from the online website and supply it to the final consumer
who comes to buy the product from them. The b2c model consists the transaction between
the business to the customer. The customer and the business are involved in theb2c models
Vodafone UK is an mobile networking services other company like airtel reliance are also
offering the same networking services to their customers. There are certain competition in
the different marketing factors for attain the segments for the customers.
4.3How and why international marketing differs from domestic marketing in the case of
Vodafone UK
There are certain differences between the international marketing and the domestic
marketing in the Vodafone UK. These are:
International marketing has a wider range of scope rather than the domestic market.
Moreover the profit margins for the international marketing are more high than the domestic
marketing. There is more innovation in the working as compare to the national marketing.
There is more technological innovation in the international marketing. The international
marketing also have to lead with a good political relational whereas the marketing does not
leads to an complicated issues(Principles of marketing, 2017 ). The international marketing
has a long great expansion in the business level as compare the domestic level business they
had less expansion scope.
CONCLUSION
From the above report it has been concluded that marketing is considered as the
essential element for the business operations. A product is to be promoted in the market at
the time of introduction so that more and more people would know about it. This is achieved
by marketing. BMW can enhance its sales by the proper use of marketing principles and
leads to encourage more people towards their products and services. They implemented
certain strategies and actions for their success and keeps a regulatory check control in their

working which leads to more users attraction and leads a great expansion in their business
and in results they leads to great success for the BMW.

REFRENCES
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Online
Principles of marketing. 2017. [Online]. Available through:
<https://en.wikiversity.org/wiki/Principles_of_marketing>. [ Accesed on
13may2017.]