Personal
selling and sales management is a major factor for BMW because buying a car isn’t
like buying toothpaste, with cars a person has to analyze all aspects to be
sure this car is for them and being this will be a large purchase they will
most likely be keeping their car for a long period of time. However on the
other hand when a person buys toothpaste they just grab whichever one seems the
best because it’s cheap and will be replaced soon. BMW focuses more on the
selling process than sales management, why have a person trying to persuade
their customer about BMW cars when the car itself can show the customer why
they should buy. Over the years BMW has improved their brand name to a point
where constant advertising isn’t necessary, for example not often you will see
a BMW commercial, especially compared to how often you see other car company commercials.
BMW created that luxury social class therefore when it comes to prospecting BMW
will just post some information on their social media site or website and the
word would spread from there. Secondly BMW has a strong concern for their
customer wants and needs that is why they are constantly upgrading the
technological system and body structure of their cars to obtain maximum comfort
and easy driving so the driver and passengers can feel the “BMW lifestyle”,
also a customer can go to BMW and click “My BMW” and choose all the features BMW
provides for its cars and modify them in the order that fits them the best. I
commend BMW for increasing their brand status to where it is and having that
luxury social class, it also benefits them because when it comes to sales there
is no negotiating its either you have the money/credit to buy or you don’t.
Thursday, March 31, 2016
Tuesday, March 22, 2016
Ch. 16 - Advertising, Public Relations and Sales Promotion
There are numerous type of advertising in marketing but one
of the major types of advertising BMW displays is product advertising. Their
focus on product advertising is so strong that it distracts the positive programs
BMW has such as “Corporate Giving “where in 2014 BMW gave away 36 million
dollars; 47% to education, 35% to the community and 18% to the arts, needless
to say their product advertising was a success because when you hear BMW the
first thing that comes to mind is nothing else but luxury vehicles. One of BMW’s
primary focus in product advertising is competitive advertising, BMW has
convinced and still is convincing consumers that BMW is the way to go if you
have the urge for luxury which is evident due to 1,905,234 sales in 2015. Even
though there are other luxury cars, the BMW brand is not just luxury, but also
high class, fashion and to be part of the elite. Another strategy BMW displays
is pioneering advertising with their constant upgrades. In society today
everything we use has some type of technology which increases regularly, BMW not
only keeps its vehicles up to date with top of the line car technology but also
futuristic technology that other cars don’t have which makes consumers not only
get the urge to want BMW products but makes them feel as if they need their
products to drive in the most efficient way.
Thursday, March 17, 2016
Ch. 14 - Marketing Channels and Retailing
Originally BMW launched
in Munich, Germany; after a few successful years they were able to open several
production &research shops and headquarters globally to reach and
understand each target market better.
However marketing channels still were extremely important because
in most states (if not all) buying a car straight from the manufacture is
illegal, so what good is all of their production & research shops if they
can’t directly distribute to the consumer? In fact this decision to open global
production & research shops was a smart one because they can manipulate some
of the factors in marketing channels to their favor. For example
forming & place utility, being located in the area where
they are distributing their product every day is a constant reminder of what people
in the area like and don’t like which gives BMW the upper hand to shift their
form strictly to that area and the same for others, rather than having a general
liking of form and distributing it to different parts of the world because how
people like and drive their cars in china is different from how people like and
drive their cars in the us. These global locations decrease time utility
tremendously because instead of distributing from Germany to different parts of
the word, BMW just launched factories in different parts of the world which
where they can be made in that area and get to the consumer faster. With the
high end brand BMW doesn’t have to concern themselves with exchange utility because
even after numerous owners and time in the market BMW still holds its value
compared to other vehicles in that situation, Such as a 2010 BMW would still be
higher priced than a 2010 Audi.
One of the best things of BMW marketing channels is directly
to wholesalers such as car dealerships, So it’s only 3 transactions in getting the
product to the consumer, BMW-Dealer-Consumer.
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