Principles and Practices of Marketing: BMW Promotional Mix Report

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This report provides a comprehensive analysis of BMW's marketing strategies, focusing on its promotional mix and application of the AIDA model. The report begins with an introduction that briefly outlines BMW's business and revenue and then delves into a detailed examination of BMW's promotional mix, including advertising, public relations, sales promotion, events and experiences, personal selling, direct marketing, interactive marketing, and word-of-mouth marketing. Each element is explored with examples of how BMW utilizes these strategies to reach its target customers, build brand awareness, and drive sales. The report then transitions to Part 2, which explores the AIDA (Attention, Interest, Desire, Action) model as it relates to BMW's marketing efforts. The report concludes by emphasizing the importance of an integrated marketing approach for BMW's continued success in the competitive luxury vehicle market.
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PRINCIPLES AND
PRACTICES OF
MARKETING
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Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
Promotional mix of company ..........................................................................................................4
Advertising...................................................................................................................................4
Public relations and publicity ......................................................................................................5
Sales promotion- .........................................................................................................................5
Events and experiences-...............................................................................................................6
Personal selling ...........................................................................................................................6
Direct marketing .........................................................................................................................7
Interactive marketing ..................................................................................................................7
Word of mouth marketing- .........................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Marketing refers to the art of reaching to the end customers and influencing them in
manner to make purchase decisions. It refers to the activity of company which is undertaken to
promote the buying and selling of goods and services, it includes activities such as selling,
advertising and delivering goods to consumer and positioning by the means of letting its
customers known why the product and services are better than that of competitors (Marketings,
2019). BMW is German multinational company which manufactures luxury motorcycles and
vehicles with employees above 135000 as per the latest data and a revenue of Euro more than
104.210 Billion as per the latest statistics. Present report will brief with two task where the first
will relates with promotional mix and activity of BMW and second will brief with AIDA and
communication process of company.
MAIN BODY
TASK 1
Promotional mix of company
It is the integration of advertising, sales promotion, personal selling, direct marketing,
public relation and various other means. This is being used by the company to reach to company
goals that implies with increasing sales revenue and profitability of BMW. It includes
Advertising
It is the marketing communication that employs with openly sponsored, non personal
message and information to sell and promote product and services of BMW. This are the
message paid for by those where company sends them to influence and inform people and
customer who receives the same. It is the means of communication with users of goods and
services of BMW. It is the means of informing, persuading and act of reminding what company
offers to its potential customers. It helps in creating awareness of brand, its offering and ideas.
The company advertise in every regions where its has its business where they deliver the
message of high standard of quality be offered to customer and position themselves by the means
of products which implies with high standard of living, status and pride. It advertisement are
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being designed in manner to cater and serves with information which is required on the end of
premium segment being present for the target market of company. The brand signals serves with
memory triggers which is being effectively used in the advertisement of company which captures
with the means of attraction of customers (Liu-Thompkins, 2019s). The advertisement are simple
which communicates with message effectively of what is being required on the end of company.
Public relations and publicity
This relates with strategic process of communication that build with mutual relationship
between the company and public. In simple words it refers to maintaining and managing
communication between public and the enterprise itself. It is the promotional technique being
employed by the company which helps with deliberately maintaining the spread and release of
information between the company and public which might leads with affecting perception of
public in favourable and unfavourable means which affect the brand image of company. The
company issues various press release whereby it leads to sharing of various numerical data which
helps the public to evaluate the performance of company and serves with effective means of
making public relations (Abdillah, 2017). It is being done in the manner where everybody is
being speaking on the positive end about the company which leads the company to increase
customer brand loyalty and leads with customer retention to business and serves with effective
means of showcasing that its operations are being based upon the ethical grounds and helps in
building favourable brand image. Publicity refers to awareness and visibility. It is being referred
as movement of information from the source to general public which is being also by the means
of media.
Sales promotion-
This refers with the strategy of marketing where the company products are being
promoted with short terms initiative that are being highly attractive which helps in stimulation of
demand for goods and as a result leads with increase in sale revenue and profitability margins of
company. This strategy is being used by the company when BMW is introducing with its new
luxury vehicles (Akram, 2018). This leads with stimulating demand in particular goods and
services, increases with awareness of brand and helps in generating of new leads with retention
of existing client base and engagement of customers. BMW applies sales promotion as part of its
strategy of marketing in a manner which is occasional. The company offers with occasional
seasonal sales campaigns of sales in certain markets to sell different modes of vehicles. This can
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be in ways of where its offers various loyalty schemes to customer who are being loyal by
offering them various support services and offering of various flash sales. The company can lead
to issues of various discount to its loyal customers which leads with customer retention and
serves with means of effective retention of customers. The advantage of this is it leads with
creating differentiation from that of its competitors and leads with the customers to create the
reason for buying its goods and services.
Events and experiences-
The company is also organising with various events which helps with means of getting
the customer attraction and generating of awareness amongst the public which leads with
building of brand loyalty. This relates with live event being organised by the company which
helps with creation of memorable impact on the consumers. Experience marketing can be stated
as the strategy that is being used in person events to promote and sell luxury vehicle to premium
customers. This relates with creating experience of customer with the increase in customer
optimisation value. By this it helps with in bringing into knowledge to the customer about the
new trends being opted by the company in its goods and services which leads with generating of
positive brand image. It helps with means to customer of having the experience of the company
product which will leads to make the purchasing decision more effectively and efficiently. The
company implies with various organising various events of corporate social responsibility which
leads with better financial performances, easy growth of the company operations, leads with
greater ability to retain and attract the talented staff which helps with effective promotional tactic
being adopted by the company to reach to the end customers.
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Personal selling
It refers to the tactic of promotion being adopted by BMW whereby its uses its sales
force, employees/ staff to sell its goods after meeting face to face with its potential customers.
The highly qualified individual are being recruited with means to do personal selling and be at
front face of company. They promote the product of the company with their skill, capabilities ,
appearance, attitude and with high specialised knowledge of the goods and services which they
are being going to market to potential customers.
The employees of the company aims to encourage and inform the customers to buy or
event at least experience the same. This in simple words can be ascertained with sales
representative of company meeting with the potential customer for the purpose of transacting
and executing sale (Sari,2018). The staff member promote the product by building relationship
with customer which leads with answering of queries of customer and providing solution which
is in terms of communicating benefits of company product and is also by means of providing
customer support services. This is being used in vehicles relatively of prices which are high and
with features that are being highly complex in nature used for personal selling.
Direct marketing
It consist of any marketing of BMW that relies and depends upon the communication
which is being direct and distribution to customers who are individual, rather than by using the
third party. It is by means of emails, mass media, social media platforms and by various other
means. The company leads sending various email which provides with detailed information
about company luxury vehicles as a result build up with various means where the customer can
access to varied information which serves with means of making decisions related wit purchase.
It is the marketing which helps in building direct relationship with the customers. It leads with
personalising offers and letters to maintain an immediate connection and link with customers and
increases with personal connection with the business (Briandana , Doktoralina and Sukmajati,
2018). This helps with effective targeting where the business can send message which are
specific to particular premium group of customers and which leads with assessment of buying
behaviour of customers. This leads with reaching to the end customers with personal touch
where mails, newsletters which serves with means of effective direct marketing can be addressed
to specific individual and include various details of orders that happened in the past which leads
with retention of customers.
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Interactive marketing
This refers to marketing which is also known as event driven and trigger based marketing
which uses two ways communication channels that allows the consumers to connect with
company through direct means. This sis type of promotional tool used by company that changes
and reacts based upon action of individual prospect and customers. It states that ability to
respond to the action of prospect and customers leads to more of effectiveness as compared with
that of normal marketing which is direct in nature. It is an extension to marketing which is direct
into technologies of media that allows with two ways of communication between BMW and its
customers (Allegranzi and Pittet, 2017). This is different from online marketing which leads with
drawing customers with more relevancy and keeping them interested with smart interaction. This
is being used by the company in ways of organising of contest in terms of giveaways and
organising of various social media contest and others.
Word of mouth marketing-
This leads with the marketing and promotional strategy of BMW where the interest of the
customers towards its goods and services is being reflected and highlighted in dialogues which
are daily. It is being termed as free advertising triggered by the experiences of the customers and
eventually goes beyond anything of what they have expected. In layman language it is being
termed as process which actively encourages and influences with organic word of mouth
discussion and communication about the company, its resources, events and various others. This
is passing of favourable information about the performance of company which is in form of story
telling which could be by means of friends , families, peers, and others which leads with spread
of positive brand image. This leads with building of brand image in favourable term.
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Social media marketing
This refers to promotion and marketing of BMW luxury motor vehicle on various social
media platforms such as Facebook, Instagram, You tube, Twitter and various other which helps
in reaching to large number of customer base. It is being believed that majority of time is being
devoted by the customers on such platforms which leads with generating of awareness of
company products in minds of target customers. It is the use of websites to promote with services
and products of company (Eberl, 2019). It includes activities like posting of text, images, video ,
audio and others which leads with deriving of customer engagement and satisfaction and leads a
company to get valuable insights about the needs and wants of customers through various
analytics. It helps in getting audiences looking at the brand even when they are not thinking
about the company product and services.
PART 2
AIDA theory
This is the model which is being uses in the marketing of BMW which determines with
series of steps that its being experienced by customers when they goes with the process of
purchasing the product and services of company. It helps in connecting and establishing
relationship between buyer and seller in concern with the offerings of BMW. These is being
based upon the four stage which that attract parties who are looking for company offerings.
Attracting attention – It states that product must be attracting to individuals . This could be done
with means of proper advertising material which serves with means of eye-catching in regards
with offerings of BMW. This is being concerned with creating brand affiliation and awareness7
about the company goods and services. This leads with considering how to attract the attention of
customers which leads company to target the customers with further steps. It is being required by
the company that not assume that customers are aware of offerings. The best approach which can
be used in grabbing the attention of customer is by having creative disruption by breaking down
of patterns which are being existing by delivering highly creative message. This is being done by
company by placement of advertisement in unexpected location and situation which is being
referred as guerrilla marketing. It can be by means of personalisation where intense message is
used for effective targeting.
Generating Interest- After the awareness is being generated about the BMW luxury vehicles, the
next step implies with working on increasing the interest level of customers. This leads with the
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complex part of business. The company needs to ensure that information related with
advertisement should be easily broken upon and easy to read with various interesting illustration
and subheadings (Prathapan, Sajin Sahadevan and Zakkariya, 2018). This can be by focusing that
what is being most relevant for the target audience and communicating the most important
message which needs to be communicated to the audience.
Creating of Desire – This step of the model relates with creating of desire on the end of
customer. After the interest of consumer is being generated the goal of company is to make
desire of customer while moving their mindset from I like it to I want it. The company needs to
ensure that and helps in making its customer realise about why they need the goods and services
of company. The aim lies with presenting information along with benefits of buying offerings.
The company needs to make ensure that its vehicle can be used in various situation which are
being highly creative where it leads with conveying the audience the value of the vehicles
manufactured by company and why they need it in their life.
Implementing action – The final step relates with ultimate goal to drive the receiver of
marketing campaign of BMW to purchase the offering and initiates with action. It states that
advertisement of company should end up calling with an action. It leads with getting the
statement with immediate response for customers. It states that good advertising should lead with
sense of urgency which will help the consumer in motivating and taking actions with immediate
effects. This can be by means whereby company can use loyalty schemes, offering of heavy
discount which leads with customer to make their purchasing decision in effective manner and
helps the company as well with increasing of sales revenue of company (Fortenberry and
McGoldrick, 2020).
The communication Model
The communication model in the company results in sender and receiver .
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It states that Sender is the company wanting to target the group of customers for making
the purchase decision and the receiver is the group of consumer itself. There are certain features
which needs to be known about the sender and receiver before the process of communication
begins which implies with financial power, demographics and other compatibility. The sender
who in the above case is BMW should ensure with who is the target audience fro the same which
serves with company to decide upon with its segmentation, targeting and positioning of company
The next step relates with Encoding where the message needs to be bundled in right
format by the company to send the message which is being appropriate to the receiver that is the
customer of company. In this advertisement plays an important role where creative and
innovative ad agency encodes with message in effective way(Kim,2019) This depends on type of
media platform being used by the company whereby the focus of message needs to be same.
The third step in the communication process relates with message decision where there
are several ways which can be opted by company in delivering its message to end customers.
This can be both the means online as well as offline. The important thing here is being concerned
with reaching to large number of customer where more the prospect to the company more will be
the chance of company to get the conversion out of it. The proper message helps in connecting
effectively with the customers, helps in building with proper brand image and helps in getting the
boost of sales revenue for the company. This message can be in varied form such as introduction
of new products, generating of awareness, various customer retention where it need to be tailored
with mode of media to be used, target audience and objective of message.
The next step relates with decoding which is not in hand of sender and in hands of
receiver that implies with customers of BMW. The company can do encoding in the best interest
but it all depends upon the individual who is on receiver to make with the purchasing decision of
offering of company. Thus if company fails to encode the message in effective manner, than it
might result in company failing with effective marketing strategy where there is being high
possibility that the receiver who is actually the customer may take in consideration with goods
being offered by the competitor (Tawafak,2020).
The next implies with receiver who will make the purchasing decision, the company
needs to ensure that its message is being tailored accordingly with the objective which is in
respect of that will lead with increase in sale revenue and profitability margin of company. They
are the one who can make and break the business whereby the company needs to ensure that its
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activities are being directed in the manner which leads with serving satisfaction and implies with
retention of customers.
The last step which implies with communication process leads with getting feedback whereby if
there are any flaws and errors can leads with improvement which leads with business success of
company. To increase with awareness, it leads with getting awareness which in builds brand
loyalty.
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CONCLUSION
From the above report its is being concluded that for any company to expand and
diversify its business operation, it requires huge amount of planning to make the promotion of
business offering in effective manner. The report has briefed with various types of promotional
strategy being adopted by the company to reach to target audience more prominently. It leads
with understanding of promotional tactics such as advertising, sales promotion, personal selling,
social media marketing, effective word of mouth, by means of direct marketing, public relations
or publicity, events and experiencing and various other. It has lastly briefed with two theories
that is AIDA and communication process theory.
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REFERENCES
Books and Journals
Liu-Thompkins, Y., 2019. A decade of online advertising research: What we learned and what
we need to know. Journal of advertising. 48(1). pp.1-13.
Akram, U., and et.al., 2018. How website quality affects online impulse buying: Moderating
effects of sales promotion and credit card use. Asia Pacific Journal of Marketing and
Logistics.
Abdillah, F., 2017. Efektivitas Marketing Public Relation dalam Membangun Citra Merek
Perusahaan Jasa Telekomunikasi. Jurnal Ecodemica: Jurnal Ekonomi, Manajemen, dan
Bisnis. 1(1). pp.1-9.
Prathapan, M., Sajin Sahadevan, D. and Zakkariya, K.A., 2018. Effectiveness of digital
marketing: Tourism websites comparative analytics based on AIDA
model. International Journal of Innovative Research & Studies. 8(4). pp.262-273.\
Fortenberry, J.L. and McGoldrick, P.J., 2020. Do Billboard Advertisements Drive Customer
Retention?: Expanding the “AIDA” Model to “AIDAR”. Journal of Advertising
Research. 60(2). pp.135-147.
Tawafak, R.M., and et.,al., 2020. Framework design of university communication model
(UCOM) to enhance continuous intentions in teaching and e-learning
process. Education and Information Technologies.25(2). pp.817-843.
Kim, S., 2019. The process model of corporate social responsibility (CSR) communication: CSR
communication and its relationship with consumers’ CSR knowledge, trust, and
corporate reputation perception. Journal of business ethics.154(4). pp.1143-1159.
Allegranzi, B. and Pittet, D., 2017. Promotion Strategy. Hand hygiene: a handbook for medical
professionals. 9. p.230.
Sari, I., and et.al., 2018. Application model of k-means clustering: insights into promotion
strategy of vocational high school. International Journal of Engineering &
Technology. 7(2.27). pp.182-187.
Eberl, M., and et.al., 2019. Football as a Health Promotion Strategy: Systematic Review of
Football Intervention Studies. Deutsches Aerzteblatt International.116(43).
Briandana, R., Doktoralina, C.M. and Sukmajati, D., 2018. Promotion analysis of marine
tourism in Indonesia: A case study.
Online
Marketing , 2019[Online]. Available through<https://www.ama.org/the-definition-of-marketing-
what-is-marketing/>
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