BMW offers cooperative advertising initiatives to their regional dealerships as a rapid way to increase brand equity. Brands can provide store-level marketers with access to more sophisticated media placements by splitting some of the advertising expenses with their dealers. Dealers may expand their advertising presence across print and digital platforms thanks to these cooperative partnerships without having to pay astronomical charges on their own. Dealers are more likely to return and conduct business with the brand in the future if they feel the company is supporting them and assisting them in selling the products they have on the lot.
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Key Points Regarding BMW’s Digital Marketing Strategy
We must first emphasize that the web presence is not merely for product sales before we can analyze the BMW marketing approach. It serves as a “vehicle” to position the brand and elegantly accomplishes their objectives.
For many years, BMW has been regarded as one of the top manufacturers of premium and cutting-edge automobiles. The company is thought to be the top auto manufacturer in the world by a sizable number of people. Munich-based German automaker establishes itself as outstanding in both aesthetic and comfort control.
Business managers of the brand should comprehend the many components of the marketing mix and pinpoint the specific market segmentation in order to establish a well-organized and effective marketing strategy. In order to increase sales inside the premium market sector, BMW started the process of segmenting the market. To do this, it optimized the correct match between consumer purchasing behavior and the marketing mix.
BMW is fortunate in that we don’t face a significant naming difficulty for our vehicles. – Jim McDowell, BMW’s Vice President of Marketing
BMW’s marketing strategy is successful because it continuously defines premium brand identity while focusing on high-end categories on a worldwide basis. The automaker’s innovative and alluring product line successfully targets wealthy consumers and exemplifies the effectiveness of its international marketing approach.
BMW was able to go above and beyond its expected performance by delicately responding to the distinctive values and purchasing behavior. In order to precisely present, here are 6 excellent examples of BMW advertisements that have been published in recent years, along with the marketing strategies that went into each of them.
BMW’s marketing strategy
As a premium brand, BMW has traditionally employed a high-end marketing approach. They employ all marketing avenues, including print ads, TV commercials, and offline and online advertising. Let’s find out more about BMW’s marketing approach.
- Creative thinking and artistic methods are essential.
- proud ambassadors and presenters of cutting-edge technologies
- Content Promotion
- Guest stars are used in marketing campaigns
BMW’s marketing strategy includes segmentation, targeting, and positioning.
The premium car maker divides its selection into categories based on behavioral, psychographic, and demographic characteristics.
A typical BMW consumer is between the ages of 35 and 50, is doing well in his or her job, enjoys aspirational products, and places a high value on his or her own social standing. These folks look for advantages like supremacy, performance, dependability, and quality.
BMW aims to attract clients from upper class socioeconomic groups since they are the ones who can buy a BMW and will also value the work of art. As the leader in the world, BMW has established a reputation as a premium, technologically cutting-edge, high-performance, and exclusive automaker.
BMW’s Marketing Mix and Strategy (4Ps)
The marketing mix framework used by BMW’s marketing strategy to analyze the brand includes the 4Ps (Product, Price, Place, Promotion). There are numerous marketing tactics, such as pricing strategy, promotion planning, and product innovation. These commercial plans, which are based on the BMW marketing mix, aid in the brand’s commercial success.
BMW’s marketing strategy aids in the brand’s/competitive company’s positioning in the market and the accomplishment of its corporate goals & objectives.
a brand analysis of BMW’s branded home
A prime example of the branding tactic known as BRANDED HOUSE is BMW. This indicates that the buyer favors the parent brand before selecting a model.
HOUSE OF BRANDS is the antithesis of this brand approach. The majority of packaged goods include this. For instance, the most popular brand of laundry detergent is Tide. Customers look for it instead of P&G detergent.
Let’s hear from Jim McDowell, a former vice president of marketing at BMW who recently retired, as he explains the BMW product life cycle before we start this brand research.
“At BMW, we’re lucky that all of our products are current and competitive. How do you do it, then? Over time, you must introduce new models. To avoid updating an entire model range at the same time as another model range, you must methodically plan out the introductions over time.
By frequently releasing new models in each of its product lines, BMW’s aim is to keep its products in the introduction and growth stages. BMW prefers not to have any goods in the maturity or decline stages of the product life cycle.
McDowell explains, “Instead of coming up with a plan to deal with a deteriorating product, we would prefer to remove it from the market if it were to become deficient. We pride ourselves on being a forward-thinking, aggressive business, so we don’t believe having any declining items on the market enhances the reputation of our company. That is why we put so much effort into managing the growth component.
How does BMW promote its sales?
Offering temporary incentives to encourage potential consumers to commit to buying goods and services is known as sales promotion. Sales promotions are occasionally used by BMW Group as part of its marketing strategy. In order to sell specific vehicle models, the corporation runs sales promotions occasionally during specific seasons and in specific markets.
As part of its strategy for sales promotions, BMW Group also manages a number of customer loyalty programs in important areas. For instance, depending on the type of the vehicle, BMW in North America offers loyal customers a USD 500, USD 1,000, or USD 1,500 Loyalty Credit.
A more in-depth discussion of BMW’s marketing communications mix and strategy can be found in the BMW Group Report. Additionally, the research uses the BMW Group to demonstrate how the main analytical strategic frameworks for business studies—such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, and the McKinsey 7S Model—can be applied. The report also examines the leadership and organizational structure of the BMW Group and covers topics related to corporate social responsibility.
How does BMW Millennial brand promotion work?
Every great campaign begins with an understanding of who its target audience is and how to best communicate with them. The Road to Coachella campaign by BMW is a fantastic illustration of this.
Millennials were the target audience for BMW’s Road to Coachella campaign, and what better place to reach them than at Coachella, the widely anticipated music and arts event. In order to be at the forefront of pop culture, BMW essentially injected themselves into the conversations among millennials. This gives BMW the chance to interact with and appeal to its target market for their new product, BMWi.
Celebrities including Paris Hilton and Dorothy Wang were invited to ride in the BMWi, which was designed and covered by BMW with occasion-specific artwork in the spirit of honoring art. BMW created an integrated ecosystem by executing a social media campaign since it recognized that millennials spend a lot of time online. This makes sure that discussions regarding both BMW and Coachella are ongoing and present from before to after the festival.
BMW was able to stay at the top of the thoughts of their target audience to appear relevant and trendy to them given that millennials are the most engaged on social media and involved in the Coachella scene. The outcomes of audience comprehension are self-evident:
Observation for brands:
In order to have a thorough grasp of your target audience, it is crucial to study as much as you can about them. Your marketing approach will be driven by this understanding to be in the right place at the right time. Keep in mind that crafting ads that resonate is essential to developing a true, sincere connection with your audience.
What kind of advertising does BMW employ?
According to the BCG Matrix, the automotive division of the BMW Group is a shining star due to its significant market position in the premium market sector and rapid model growth. Its financial services and motorcycling businesses are regarded as being under investigation.
BMW’s 3, 5, and 7 series sedan and touring models are its stars because they account for the majority of the company’s sales.
BMW’s use of direct marketing
BMW is no stranger to utilizing cutting-edge technology to attract clients who value luxury. To reach the brand’s desired demographic groups, carefully planned television and radio spots are combined with targeted internet ads, email campaigns, and a fully functional website. BMW has added an older technique to the mix by distributing a number of glossy photo-adorned direct mail postcards to consumers’ homes. These postcards cut through the typical marketing clutter to capture potential buyers in a calm, personal moment since they are made of a durable, practically indestructible substance.
Television and radio shows are regarded as entertainment, and viewers and listeners naturally use the downtime while commercials play to complete quick tasks or divert their attention elsewhere in order to avoid missing any of their programming. Similar to this, sidebar online advertising vanishes into the background, and spam filters prevent many marketing communications from effectively reaching the target customer. On the other hand, direct mail postcards like BMW’s penetrate consumer attention and support other marketing initiatives through a tangible object, making an impression on their own while also enhancing the message of brushed-off spots in other media.
Courtney Albert, a management consultant at Parker Avery Group in Atlanta, provided her perspective on the campaign’s strategy in an essay for Luxury Daily. Here are a few of our favorite passages from it:
Instead of sending them to the main BWM Web site or relying on them to find the closest location, the printed mailer can be used locally to drive traffic to specific dealerships.
“A consumer typically has to engage with a promotion or campaign more than once.”
Another advantage that direct mail provides to advertisers is that BMW uses both sides of their postcards to emphasize various features of their BMW 3 Series cars. Double-sided postcards are able to display two quite diverse feature sets in one imprint, but the extent of what is contained in an advertisement is typically limited to a single theme for the sake of cohesiveness. BMW’s postcard campaign is a case study in effective and targeted advertising, including photo collages, marketing language, and individualized calls to action that direct customers to a nearby dealership.
Leading the pack in consumer interest is difficult, even for a luxury brand like BMW. Their creative approach to promoting the characteristics of their BMW 3 Series may be seen in their use of direct mail postcard campaigns to contact buyers. BMW’s sturdy direct mail postcards capture consumers’ attention with glances from unexpected locations, even days after they first arrive, serving as a covert reminder of the beauty and grace of their product. BMW continues to pioneer luxury vehicle advertising, which is not surprising given their thoughtful direct mail marketing strategies.
How does BMW divide up their clientele?
Geographic and demographic segmentation are used mostly by BMW. The business uses demographic market segmentation, allowing customers to choose products depending on their needs. Income, age, and gender are further broken down into the demographic segment.
Whom does BMW intend to market to?
BMW is quite specific about who it is aiming at. It doesn’t try to compete in all areas of the auto business; it solely targets high-end vehicles. It bypasses the high-volume market for mid-range vehicles and only concentrates on the luxury segment.
How devoted are BMW clients?
The study, now in its second year, determines if an owner purchased the same brand after trading in an old car for a new one using data from the Power Information Network. The proportion of car owners who stick with the same brand when they trade in or buy their next car determines customer loyalty.
With a 48% loyalty rate, Lexus continues to lead the pack among premium brands. Following in order are BMW (45.1%), Porsche (44.9%), Audi (43.4%), and Mercedes-Benz (47.8%).
With a 60.5% loyalty rate, Subaru ranks first overall in the automobile sector, first among mass market brands, and first among mass market brands. Honda comes in second (60.3%), Toyota is third (57.3%), RAM is fourth (57.3%), and Ford is fifth (54.3%).
Calculations for the 2020 U.S. Automotive Brand Loyalty Study are based on trade-in data from June 2019 to May 2020 and cover all model years.