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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