Saturday, April 30, 2016

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.

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