Market Segmentationpsychology Narrative Essay Example

started advertising online with pop-ups and web links to related pages. In 2002, BMW began using the radio for national advertising for the first time, which helped local Dealerships run individual campaigns in their local press, on the radio, and with bus advertisements.

In addition to these methods, BMW also incorporates other promotional techniques. They associate the BMW brand with various films, TV plays, and documentaries. In these productions, the protagonists exclusively drive BMWs as the preferred cars. This arrangement benefits both the producers who want to feature specific car brands and the car manufacturers who desire increased publicity. Through this mutual agreement, BMW obtains global publicity that reaches millions of viewers while also employing subliminal communication techniques. An excellent example of this association is the integration of BMW cars in multiple 'James Bond' films from 1983, 1994, 1997, and 1999. For instance, in 'The World is not Enough,' James Bond showcased the new Z8 before its official launch, and in 'Austin Powers 3 - Goldmember,' the Mini Cooper was prominently featured.

BMW uses various methods to distribute their products. These include having upmarket dealer showrooms, sponsoring events such as Formula 1 and the Americas Cup to convey a sense of innovation and high performance. In terms of physical locations, BMW has four car manufacturing plants in the UK - Bracknell in Berkshire, Oxford Plant, Oxford Hams Hall Plant, and Goodwood in West Sussex. They also have financial services located in Hook - Hampshire and Swindon Pressings Ltd - Swindon and Wiltshire. In the UK, BMW has 156 franchised dealers for selling BMW cars and an additional 148 dealers for selling Minis. On a global scale, BMW

operates in 100 different countries with over 4,400 authorized dealers offering new and used cars, parts, and after-sales service products.

BMW uses segmentation to identify specific buying characteristics. To do this, it looks at the geographic, demographic, behavioral, socioeconomic, and beneficial characteristics of society. Geographically, BMW's main markets are Europe ; North America. These areas have a heavy industrial presence, making their residents financially able to buy high-end cars. In fact, these regions account for 64% of BMW sales. The target demographic for BMW consists of men and women aged 30 - 50 years old. Behaviorally, these individuals are image-conscious and value a clean modern look, as well as the reassurance of an established dealer network. The key benefits sought by this target market include exclusivity, performance, reliability, and quality.

BMW automobiles are particularly appealing to individuals with a socio-economic status of A, B, and C1 and salaries exceeding ?25,000. BMW implements a differentiated strategy by directing their focus towards specific automobile markets in order to cater to different segments within the industry. These include Sports Convertibles such as Z3, 3 series, and new Z4; Executive vehicles like 3 series and 5 series; Super Executive cars encompassing the 7 series; Touring / Estate options comprising the 3 series and 5 series; Grand Tourers exemplifying the Z5; Super sports models falling under the M series category; and lastly, off-road capable 4X4s including the X5.

BMW is known for its production of exclusive, high-performance, technologically advanced, and quality automobiles. The automotive market in which BMW operates is highly competitive with numerous other manufacturers producing cars that offer similar levels of quality, price, and image. Some key competitors BMW faces include

Mercedes, Jaguar, Audi, VW, Alfa Romeo, Lexus, Ford, Range Rover, Porsche , TVR , and Opel (Vauxhall in the UK).

Most manufacturers employ distinct strategies to create a wide variety of cars. However, these companies rely on different brand images to market their vehicles. For instance, Mercedes is known for producing luxurious, reliable, and high-quality cars, but lacks the performance aspect that BMW excels in. In contrast, Alfa Romeo is renowned for its stylish and high-performance breed of cars, but is considered unreliable. The positioning of these companies and their brands has been established over many years. BMW has successfully captured the public's attention in a positive manner, leading to consistent sales growth in international car markets. This success has enabled them to enter new markets and challenge the leaders, such as Range Rover and the BMW X5 (4X4).

In summary, BMW's strategies seem to be effective based on their continuous and growing market share, high profitability, and strengthening brand. It is advised that BMW proceed with caution when expanding into multiple markets to avoid weakening their brand image, which might result in future sales decline as the brand loses its prestige. Similar situations have occurred in the past with major manufacturers such as the Rover group during the late seventies and early eighties when they were partly nationalized and controlled the entire UK motor industry. However, it should be acknowledged that being a German company, BMW likely possesses superior organization compared to the British dinosaur of that era.