Ch. 12-Services and Nonprofit Organization Marketing

                When it comes to the actual sales of BMW, services is essentially the primary factor of closing the deal, even though the car may look presentable it still needs the service of a salesman or BMW specialist to inform and emphasize the unique style and functions of a BMW for the buyer. One of the reasons BMW has been successful over the years is because they’ve mastered relationship marketing in services and internal marketing in services. As an entry level or level 1 BMW customer BMW waives the first 3 payments to show appreciation for choosing their products. When you become a level 2 customer, BMW makes you a part of their “ My BMW “ group and you are not only able to create your own BMW from the base model but on top of the first 3 payments being waived you will also get 1,000$ rebate at signing. At the top of the list are their level three customers who doesn’t only receive the benefits of a level 1 and level 2 customer but they also receive rate reductions, security deposit wavier and have the option to cancel their lease early and  BMW will make your last few payments. BMW also will be able to waive or reduce over mileage charges and wear & tear fees. However the customers aren’t the only people receiving these incentives from BMW, the employees receive benefits as well such as receiving the first chance at any new BMW product for the lowest price on top of receiving their standard discount. Also BMW has a great benefit plan that provides Pension, Career development such as constant meetings with BMW counselors to create a paradigm for your career and the road you want to go, Support with child care and care of dependents, Health and fitness provisions, Leisure activities. Such as having friends and family of employees attending these fun filled venues payed for by BMW and Temporary foreign assignments.

 

Ch. 11- Developing and Managing Products

When BMW launched the new i8 their intentions wasn’t primarily to replace obsolete items, but their objective was to have an impact on the electric car market (especially with up and coming competitors such as Telsa ) and still influence gas operated cars while maintaining the luxury title of the brand and enforcing their mission statement “ setting standards for the future today.” The idea generation behind the i8 came essentially from customers, research and development and competitors. BMW is known for its spacious vehicles and has received a significant amount of positive feedback from customers, therefore BMW increased the interior space of the vehicle without changing the exterior attraction. After research and development BMW designed the body of the car for its most efficient dynamic performance such as the lightweight chassis is made mainly from aluminum. The windshield, top, doors and fenders are made from polycarbonate glass making this car extremely lighter than usual, also the location of the battery pack in the energy tunnel gives the vehicle a low center of gravity, enhancing its dynamics. Surprisingly enough the brainstorming behind the i8 were flawless, leaving the only major issues for some consumers is just the price alone. BMW released a prototype in 2011 as an idea but the feedback were so influencing that they were forced to proceed with their plan which led them in July 2012 BMW i8 won the North American Concept Vehicle of the Year and the BMW i8 won the 2013 best production preview vehicle award which made an high demand of the BMW i8 leaving consumers on their toes. Pricing for the BMW i8 destined for the U.S. market starts at US$135,925 including destination and handling fees and before any other applicable incentives. Finally August 15^th 2015 the United States was introduced to the BMW i8.

Chapter 8 Segmenting and Targeting Markets

                Over the years BMW has branded themselves as a luxury car manufacturer that targets people typically in their late twenty’s or early thirties, as time went on other luxury car manufactures developed and for BMW to stay relevant they had to position themselves in a fashion that not only kept their existing audience interest but drew new members to their target market. BMW successfully positioned themselves by adding more variety to their collection without losing their overall brand but at the same time having a major influence on potential customers. BMW is the number one premium car manufacturer in the world and their mission statement is “ setting standards for the future today” which is essentially saying all their products have the best technology which is true, but not all tech savvy people live the same life style. So BMW took their marketing segments one step further and designed segments based on the lifestyle of the consumer, in three general groups they have diminutive and fast,

Spacious and relaxed, eco- friendly and non- car lovers

                The marketing segment diminutive and fast is an interesting approach because the collection is the beginners step entering the social class of BMW and is usually marketed to the younger section of BMW’s target market such as the early and mid 20s. Vehicles in this collection are mainly from the 3series and even some 4series models, which are the least expensive of BMW products and have the reputation of sport like features, which most young men and women look for. Being that most people in that age bracket and even some young adults are constantly on their phone BMW decided to market this collection through commercials on various phone apps such as music or movies which grabs the attention of the market BMW is trying to capture and training the up and coming audience to choose BMW.

                Now the spacious and relaxed collection is targeted towards the more experience BMW lovers who not only are more knowledgeable about BMW products but is capable and willing to purchase the products, because the price has gone up. The vehicles in this segment varies from 5, 6, 7 and even some X series models. The lifestyle for these vehicles are typically for people in their late 20s and early 30s who annual income starts around 70,000 a year, But also likes to travel via car or just likes the extra space to be cozy.

                Finally the eco-friendly and non car lovers is a smart approach because BMW has influenced a whole new market with the all electric BMW i3, in this day in age everything and everyone is about going green and saving the environment so this all electric car was one of the smartest ideas BMW has created to continue their dominance in the car industry, also BMW started to manufacture motorcycles which drew more intention to their brand because not all upper class people are into cars, some like motorcycles, boats and things of that nature. Even though these segments have a vague target because the audience can vary from all types of ages and lifestyles, BMW’s message behind this segment is they have something for everyone so become apart of their social class.