At the first part of my assignment I am going to introduce a company which I will be talking about. The company is the BMW automotive manufacturer and one of the leading designers of luxury and luxury sport vehicles.
This company has been founded in 1916. As a result of the war, the small company enjoyed rapid growth. In these days the company already has large plan for expansion. Just about two months before the end of the First World War- Bayersche Motoren Werke GmbH was converted into a stock corporation with a share capital of 12 million Reichsmarks. Just after the war, the company turned its attention to rail vehicle brakes and built-in engines, following the production ban on aircraft engines. During Second World War BMW was co-operating with different countries and was supplying car parts. The designs for the first post-war BMW motorcycle were ready by summer 1947. Later on in 1970s BMW developed from a national company of European significance into an international brand of global standing. During years BMW has opened many car and motorcycle plants over whole world, emphasising its status as a global player. In 1994 in order to expand rapidly and gain a presence in market segments in which it had not previously been involved, BMW purchased the British-based Rover Group, with the active brands Rover, Land Lover, MINI and MG. In addition to modernising the plant, the task for the next few years was to rejuvenate the product lines. The brands BMW, MINI and Rolls-Royce Motor Cars, the BMW Group has been focusing systematically on selected premium segments in the international car market since 2000. Over the subsequent years, the model range in the premium segment of the lower midsize class has been extended by the BMW 6 series. [ (BMW, 2005) ]
“The company aims to generate profitable growth and above-average returns by focusing on the premium segments of the international automobile markets. With this in mind, a wide-ranging product and market offensive was initiated in 2001, which has resulted in the BMW Group expanding its product range considerably and strengthening its worldwide market position. The company’s brand is extremely strong and is associated with high performance, engineering excellence and innovation. Indeed, the BMW brand is often cited as one of the ‘best’ in the world, and the company continues to launch a stream of innovative products as part of its battle with German peer Mercedes to be the world’s largest luxury car maker.” [ (Jones & Clements, 2007/8) ]
In my report I am aiming to show the BMW market, especially concentrating about market segmentation and targeting. I’ll start with the definition;
“Target marketing is directing a company’s marketing effort towards servicing one or more groups of customers sharing common needs or characteristics.” [ (Kotler, Armstrong, Wong, & Saunders, 2008) ]
Every organisation realise that they cannot appeal to all buyers in the marketplace at least not to all of the in the same way. Buyers can differ in one or many ways, such as: wants, resources, locations, buying attitudes and buying prices. By market segmentation organisations divide large markets into small specifies segments which can be reached more effectively with products and services to match their unique needs. The BMW knows about this very well, they have specified their market segment and produce goods and services to meet this particular market segment needs and expectations.
There is many ways to segment the market, such as:
* Geographic segmentation: region, country size, city size, density, climate * Demographic segmentation: age, gender, family size, family life cycle, income, occupation, education, religion, race, nationality * Psychographic: social class, lifestyle, personality
* Behaviour segmentation :purchase occasion, benefits sought, user status, usage rate, loyalty status, readiness state, attitude towards product
The BMW segmentation...
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