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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