Running head: AN UNDERSTANDING OF THE TARGET MARKETS 1
AN UNDERSTANDING OF THE TARGET MARKETS 2
BMW
Introduction
As the BMW Group (n.d.) highlighted, the origin of BMW trickles back Karl Rapp and Gustav Otto. In the year 1916, there was the merging of Flugmaschinenfabrik Gustav Otto Company to Bayerische Flugzeug-Werke (BFW) at government behest. Relatively, in the year 1917, the Rapp Motorenwerke had evolved to Bayerische Motoren Werke (BMW) GmbH before becoming an AG; Public Limited Company in the year 1918 (BMW Group, n.d.).
The Product Life Cycle
The Living Media (2017) highlighted that this cycle has four stages.
The Introduction Stage
The source observed that this is the most expensive stage of a company that seeks to introduce a new product and BMW is no exception. Before starting off this stage, it is worth determining the needs of the consumers to come up with a product that satisfies such desires. The Automotive Intelligence (2007) notified that in the efforts to ensure that there are no mistakes made in the introduction stage, BMW had even set a location; Engineering Centre (FIZ) in Munich which serves as a location for all people brought together for the purpose of developing a product, suppliers included. It is a requirement to determine the characteristics of the target market.
Demographic characteristics
Abougomahh (2005) stated that the demographic characteristics are the reflection of the elements such as the size of the population as well as its features. These characteristics of the population may stand for the age, marital status and the education of the particular target market (Abougomahh 2005). In manufacturing a vehicle, BMW must take cognizance of these aspects concerning the market they target. Nica (2013) informed that the BMW's i8 targeted the consumers who were mostly men and of the age of 35 years old. On the other hand, if targeting families, there would be a replication of the same in the design of a vehicle.
Psychographic Segmentation
Lamb, Hair, ad McDaniel, (2009) opined that these characteristics stand for the aspects touching on the personalities, motives and even the lifestyles of the consumers. It is worth highlighting that when it comes to BMW, there is the reflection of the same with regards to the designs of their products. Getting back to the BMW's i8 the same vehicle targets the individuals who are tech-savvy; not only like to enjoy the experience of driving but also express caution concerning the responsible driving (Nica, 2013).
The analysis of the psychographic and the demographic aspects help in the better understanding of the consumer needs and the replication of the same in the modeled designs of vehicles.
The Growth Stage
In this stage, one thing that stands out is that there is the aspect of the growth in the sales and the same on profits. The Living Better Media (2017) highlighted that the ...
Running head AN UNDERSTANDING OF THE TARGET MARKETS .docx
1. Running head: AN UNDERSTANDING OF THE TARGET
MARKETS 1
AN UNDERSTANDING OF THE TARGET MARKETS
2
BMW
Introduction
As the BMW Group (n.d.) highlighted, the origin of BMW
trickles back Karl Rapp and Gustav Otto. In the year 1916, there
was the merging of Flugmaschinenfabrik Gustav Otto Company
to Bayerische Flugzeug-Werke (BFW) at government behest.
Relatively, in the year 1917, the Rapp Motorenwerke had
evolved to Bayerische Motoren Werke (BMW) GmbH before
becoming an AG; Public Limited Company in the year 1918
(BMW Group, n.d.).
The Product Life Cycle
The Living Media (2017) highlighted that this cycle has four
stages.
The Introduction Stage
The source observed that this is the most expensive stage of a
company that seeks to introduce a new product and BMW is no
exception. Before starting off this stage, it is worth determining
the needs of the consumers to come up with a product that
satisfies such desires. The Automotive Intelligence (2007)
notified that in the efforts to ensure that there are no mistakes
made in the introduction stage, BMW had even set a location;
Engineering Centre (FIZ) in Munich which serves as a location
for all people brought together for the purpose of developing a
product, suppliers included. It is a requirement to determine the
characteristics of the target market.
Demographic characteristics
Abougomahh (2005) stated that the demographic characteristics
are the reflection of the elements such as the size of the
2. population as well as its features. These characteristics of the
population may stand for the age, marital status and the
education of the particular target market (Abougomahh 2005).
In manufacturing a vehicle, BMW must take cognizance of these
aspects concerning the market they target. Nica (2013) informed
that the BMW's i8 targeted the consumers who were mostly men
and of the age of 35 years old. On the other hand, if targeting
families, there would be a replication of the same in the design
of a vehicle.
Psychographic Segmentation
Lamb, Hair, ad McDaniel, (2009) opined that these
characteristics stand for the aspects touching on the
personalities, motives and even the lifestyles of the consumers.
It is worth highlighting that when it comes to BMW, there is the
reflection of the same with regards to the designs of their
products. Getting back to the BMW's i8 the same vehicle targets
the individuals who are tech-savvy; not only like to enjoy the
experience of driving but also express caution concerning the
responsible driving (Nica, 2013).
The analysis of the psychographic and the demographic aspects
help in the better understanding of the consumer needs and the
replication of the same in the modeled designs of vehicles.
The Growth Stage
In this stage, one thing that stands out is that there is the aspect
of the growth in the sales and the same on profits. The Living
Better Media (2017) highlighted that the reason behind this
growth is the ability of the company in question to consider
economies of scale in production resulting in the profit margins.
In the case of BMW, Stark (2016) highlighted that in less than a
decade, there was the doubling of the sales posted by BMW.
Maturity Stage
In this stage, there is the establishment of the product, and the
company in question aims at the maintenance of the created
3. market share (Living Better Media, 2017). Kaser (2013)
highlighted that there are no strategies for all stages of the
product cycle on the part of BMW and the firm had eliminated
the maturity stage in their product cycle.
Decline Stage
In this stage, one thing that stands out is the shrink in the
market of the product as a result of the market saturation owing
to an increase in competition. With the decline in sales and
relatively in profits, the choice that BMW has for this stage is
the removal of the product from the market (Kaser 2013).
Product and Promotion
It is worth highlighting that BMW is a globally known
company. In most case, consumers have a softer spot for the
widely known firms and their products. However, to ensure that
there is the replication of the desire of association in the sales
and profit margins, there is the need to ensure a personal touch
with the consumers. The best mode of promotion would be the
direct marketing. This technique would entail the marketing of
the BMW product through visual, audio and print medias that
the consumer has a direct contact with such as the radios,
televisions, and newspapers. It would also be crucial to use
other methods such as the emails and personal messages to the
existing customers.
Positioning Strategy
The strategy shall be in such a manner that it touches on at least
one aspect of the target market in such a manner that it upholds
differentiation from the other offerings in the market. One
aspect is the use of the family while making adverts for the
newly introduced BMW products, as family is an important
element of societies.
Public Relations
There shall be the offering of customer service at BMW the
4. importance it deserves. Relatively, the addressing of the
complaints shall be prompt and at the convenience of the
consumer. The measure of how successful the method is would
be through the reflection in the sales and profit margins.
References
Abougomaah, N. H. (2005). Marketing: Arab and foreign
perspectives. Al-Horria: Arab Administrative Development
Organization
Automotive Intelligence, (2007). "BMW: Product
Development." Retrieved from http://www.autointell-
news.com/european_companies/BMW/bmw-engineering/fiz.htm.
Accessed on 26/6/2017
BMW Group. "Establishment of BMW." Retrieved from
https://www.bmwgroup.com/en/company.html. Accessed on
26/6/2017
Kaser, K., & South-Western Cengage Learning.
(2013). Advertising & sales promotion. Mason, OH: South-
Western Cengage Learning
Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2009). Essentials
of marketing. Mason, Ohio: South-Western
Living Better Media, (2017). "Product Life Cycle Stages."
Retrieved from http://productlifecyclestages.com/. Accessed on
26/6/2017
Nica G., (2013). "BMW's i8 Now has a Target Demographic."
Retrieved from https://www.autoevolution.com/news/bmws-i8-
now-has-a-target-demographic-64839.html. Accessed on
26/6/2017
Stark, J. (2016). Product lifecycle management: Volume 2.
5. Understanding Target Markets Grading Guide
MKT/571 Version 9
2
Individual Assignment: Understanding Target MarketsWeek 2
Grading Guide
Week 2 Feedback
Content
Met
Partially Met
Not Met
Comments:
Student creates the research section of his/her marketing plan
and includes at least 3 elements of the research list of topics
provided here:
Research List of Topics
Primary Research
Secondary Research
Consumer Analysis
Customer Profile
Continuous Consumer Monitoring & Research
Environmental Scanning
Identify Market, Economic, Technological, Regulatory, Legal,
Social, and Ecological Forces
Current Opportunities
Potential Future Opportunities
Current Threats
Potential Future Threat
Any diagram(s) provided (not required) are in APA format and
includes discussion providing insight and clarity.
x
There are at least 3 elements of the research list. Good SWOT
analysis.
6. Student develops the first two parts of the Target Market
section, which includes an overview of the demographics (age,
income, family members, and birthdays) and psychographics
(activities, interests, and opinions) analysis.
x
Demographics and psychographics characteristics are not
clearly stated. More detailed information regarding the
demographics and psychographics parameter would
strengthened the paper.
Student explains the insights he/she has gained from his/her
inspection and analysis of the demographic and psychographic
information he/she has found.
x
The insights are clearly stated. Well done.
The Research section is a minimum of 700 words in length.
x
The paper is 827 words in length.
Total Available
Total Earned
3.5
3.3
7. Writing Guidelines
Met
Partially Met
Not Met
Comments:
The paper—including tables and graphs, headings, title page,
and reference page—is consistent with APA formatting
guidelines and meets course-level requirements.
x
Few errors. Review the APA format to cite the references
correctly.
Intellectual property is recognized with in-text citations and a
reference page.
x
Done.
Paragraph and sentence transitions are present, logical, and
maintain the flow throughout the paper.
x
Done
Sentences are complete, clear, and concise.
x
Done.
Rules of grammar and usage are followed including spelling and
punctuation.
x
8. Done.
Total Available
Total Earned
1.5
1.4
Assignment Total
#
5
4.7
Additional comments:
Very good job. Read my comments within the paper. Paper
demonstrates an understanding of the concepts. Additional
specific details about the analysis of the demographics and
psychographic information and technological environment as
well, would have strengthened your paper. Keep the good effort.
1
3
9. Understanding Target Market
BMW Company
BMW is a company based in Germany, and it was established in
1916 to make military aircraft. Later it switched to building
automobiles dealing with multiple brands BMW, Rover, Rolls-
Royce, and Mini. BMW acquired these additional brands
beginning as early as 1994 until the present time. The company
is still outstanding on the sale of high-class cars. The company
promotes a culture of top performance and teamwork, which
makes it be highly ranked. The company has set up two main
goals: one of them is to remain profitable, and secondly, it’s to
raise the long-term value of BMW. The company has focused on
making it collaborations stable between its three brands. Also,
it employs employees who can enhance the spirit of teamwork
and ready to take risks. It is also planning on how they can
make universal engines that can be used by different car
models. (Kasi, 2010)
Regarding customer analysis, the target group of its
products is the young audience. Different car models have
different clients. The BMW targets people of 20-65 years of
age, MINI targets people aged 25-45 years finally Rolls Royce
targets individuals who are 40 years and above. Regarding
gender, these automobiles target both male and females. These
cars are associated with people who have a high income that is
professionals and executives. By geographic, these cars are sold
both locally and internationally and mostly in the urban areas.
(Dudovskiy, 2016)
SWOT Analysis
This company has various strengths. One of them is that its
cars are classic, comfortable and less fuel consumption. The
cars are additionally safe because of the technology involved;
this makes them more durable. They are also environmentally
friendly. Out of this, they have a strong reputation that makes
them be known all over the world. This particular company has
successfully maintained its corporate social responsibility, and
10. also it has a high recognition in China; this attracts them more
customers, which help them achieve their targeted sales.
On the other end, the companies still have some
weaknesses. One of them is that their cars are very costly which
may imply that the customers may be few. It has a high-cost
structure that in a way may make the brand name to be weaker
in some market segments. Brand portfolio diversification is also
a weakness to the company. The company also has some
opportunities including, plans for expansion, increase the price
of fuel.
Despite the BMW Company performing at its best, it still
faces stiff competition from other companies that make classic
cars, for example, Mercedes-Benz, Acura, and Lexus among
others. This acts as a threat to BMW Company, but hard work
and dedication are enough to ensure that it out does the
competition. The decrease in prices of fuel, the rise in the price
of raw materials and rise in euro exchange rate all pose a threat
to the company.
PEST Analysis
The external environment also has a great impact on the
business. For example, the legal-political environment, which
entails the rules and regulations of the country, determines the
operation of the company. On the automobile industries, the
government is stringent especially on issues related to the
environment, foreign policy and also taxes. The BMW Company
for this case made a decision to make pollution badges
compulsory. Economic environment determines the purchasing
power of the customers. In some financial situations, the
customers may be in a position to buy the cars and in some
cases, they may not be able. When the purchasing power of
potential customers declines, the rate of exchange goes down.
(Bhasin, 2016 )
On the technological environment, the company has
employed a high level of technology, which makes them remain
among one of the best automobile company in the world. Apart
from that, it is still carrying out research to ensure that it has
11. the most recent technology. (Kasi, 2010)
Conclusion
BMW Group is competitive, and leader in many ways and
they are looking to better not only their design but what they
offer customers and the mobility industry; by showing
innovative direction, investment and an edge of technology not
only in the build of the vehicle but also in what is offered to
their customers. BMW is not afraid to diverse sophisticated and
will always focus on delivering the best customer service and
use this as a driver to success. In conclusion, it is clear that
BMW Company is a leading company in the automobile
industry. Being a company dealing with high-class cars, most of
the consumers are those that value comfort and luxury, which
attracts a lot of young audiences. BMW is faced with various
weaknesses and threats, but it is doing its best to prevent being
overtaken and the strengths which motivate BMW to keep
pressing on. The external environment also plays a role in the
company operation, but the company is trying to
cope adequately with this environment. Mostly it has focused on
implementing a high level of technology.
References
Bhasin, H. (2016 ). Marketing strategy of BMW. Strategic
Marketing Articles, 30-36.
Dudovskiy, J. (2016). BMW Segmentation, Targeting, and
Positioning. Research Methodology.
Kasi. (2010). Marketing Plan of BMW. Dream: WordPress.
PRICING STRATEGIES 2
Purpose of Assignment
This assignment is designed to help students analyze and
understand how price setting and go to market (distribution) are
interrelated and affects the profitability and growth of the
business. It has been designed to be a short overview on
12. purpose: the concepts of pricing and distribution are complex
and a general understanding is what should be absorbed in one
week of study.
Assignment Steps
Construct a minimum 700-word plan for setting price and a
distribution model (place/distribution) in Microsoft® Word.
This plan should address at least three elements (from the Price
and Place/Distribution list below) of the Price and
Place/Distribution section of the marketing plan.
· Price and Place/Distribution:
· Distribution Strategies
· Channels, Mass, Selective, Exclusive
· Positioning within channels
· Dynamic/Static Pricing Strategies
· Channel tactics (Pricing)
· Daily pricing, promotion pricing, List pricing
Note: Charts/graphs/tables do not count toward the word count.
The plan will be a continuation of your global or multi-regional
business you chose in Week 1. This will be incorporated into
your overall marketing plan for Week 6.
Price and Channel Strategy
· How one goes to market and the influences of the channel
(channel power, strength of channel, speed of channel, etc.)
affects the pricing strategy of the product or service. In Week 4
your pricing and distribution strategy will be incorporated into
the marketing plan.
Cite a minimum of three peer-reviewed references.
Format your assignment consistent with APA guidelines
Grading Guide
Content
Met
Partially Met
Not Met
Comments:
13. Student’s plan for setting price and a distribution model
(place/distribution) addresses at least three elements from the
Price and Place/Distribution list provided here:
Price and Place/Distribution:
Distribution Strategies
Channels, Mass, Selective, Exclusive
Positioning within channels
Dynamic/Static Pricing Strategies
Channel tactics (Pricing)
Daily pricing, promotion pricing, List pricing
The plan is a minimum of 700 words in length. Note:
Charts/graphs/tables do not count toward the word count.
Total Available
Total Earned
7
#/7
Writing Guidelines
Met
14. Partially Met
Not Met
Comments:
The paper—including tables and graphs, headings, title page,
and reference page—is consistent with APA formatting
guidelines and meets course-level requirements.
Intellectual property is recognized with in-text citations and a
reference page.
Paragraph and sentence transitions are present, logical, and
maintain the flow throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed including spelling and
punctuation.
Total Available