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.

Chapter 6 Consumer Decision Making

“We set future standards today” is the main slogan for BMW and that sentence alone attracts consumers to their product because who doesn’t want to be a trendsetter in society, but it’s not just a sentence that made BMW master their effect on consumer decision making; it is the brand of BMW and how they run their organization as a whole. Let’s start with the first steps of purchasing a product which is need and want, every time you see a BMW product it is always displayed in the best lighting and atmospheres while performing its top features, which makes the consumer automatically want it because it seems to be the elite of cars. It is easy to show a consumer why he/she should want something but to prove why they need it is the real work which as always BMW completed by showing their consumers the intricate design that enhances aerodynamics, ventilation and efficiency which in other words means you are driving with the wind. Besides the look of the vehicle BMW has proven to their consumers a comfortable commute in their vehicles with spacious seating and back seat reclining so one person can nap or just relax while catching up on some office work. Technology is a major factor in society today so by providing the most updated software it combines a consumer needs and wants because consumers need the software to be compatible with current devices but also wanting the newest software as a luxury to get things done faster with less work, such as voice commands and hand gestures for demands or the self-parking. When you think of BMW you think luxury, presentable, expensive, and when you look up BMW typically you’ll find feedback such as being the best of the best and driven by the best which is intense stimuli on your internal and external research. However this high end brand BMW created also formed a culture and refined to an upper class social class where consumers of all ages are striving for.

Chapter 5 Developing A Global Vison

From originating in Munich, Germany to successfully launching 23 production shops in 13 different companies, 12 research and development plants in 5 countries, it is clear that BMW has realized the importance of globalization. However realizing the importance and considering the risk of globalization are two major factors that are extremely relative. BMW had to figure which country can rationalize their currency the best, has a large market for cars and maintain the “high End “brand they created. In fact BMW found USA to be the most competent country to meet all criteria, starting with the ratio of 1$ to .91Euro  which is great compared to other countries where 1 currency varies form .60 euro and below, also USA has the 2^nd largest car market in the world so BMW will definitely get their money worth. The USA is one of top viewed countries on the internet which exposes BMW to other countries and will create a higher demand. In addition, the USA was a smart decision to open shop in because even though BMW can manufacture their cars in less developed countries to profit more; they will be losing integrity of the brand due to lack of professional and expertise in skill with assembling luxury vehicles, rather than a more developed country like the USA.