...Advertising and Promotion in Business Contents Introduction 1 Requirement 1 1 1.1 The communication process that applies to advertising and promotion: 1 1.2 The organisation of the advertising and promotions industry: 2 1.3 The regulating process of promotion: 3 1.4 Current trends in advertising and promotion including the impact of ICT in case of the advertising and promotion of BMW: 3 Requirement 2 4 2.1) The role of advertising in an integrated promotional strategy for a business or product decisions: 4 2.2) Branding and its use to strengthen a business or product: 4 2.3) The creative aspects of advertising strategy: 4 2.4) The ways of working with advertising agencies: 5 Requirement 3 5 3.1) The primary techniques of below-the-line promotion used by BMW: 5 3.2) other techniques used in below-the-line Promotion by BMW: 6 Requirement 4 6 4.1) An appropriate process for the formulation of a budget for an integrated promotional strategy: 6 4.2) The development of a promotional plan for BMW: 7 4.3) Plan for the integration of promotional techniques into the promotional strategy for BMW or its product: 7 4.4) Appropriate techniques for measuring campaign effectiveness of BMW: 8 Conclusion 9 Reference 10 Introduction Advertising and Promotion is the most common, popular and important word in any business arena. Advertising means one type of business communication which fulfills the public interaction...
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...Marketing strategy and pricing strategy of BMW Published: 23, March 2015 2. INTRODUCTION AND SCOPE OF THE PROJECT The topic that has been chosen for the project is related to the car industry i.e. to research the business strategies of BMW. BMW is the leading premium car manufacturer in the world. The report will look at the current business strategy that BMW adopts and also the future strategy of BMW Group. Business strategy has been defined by Johnson, Scholes & Whittington in their book "Exploring Corporate Strategy" as "a strategy that is concerned with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc." In this project, the author will research the marketing and pricing strategies of BMW Group. Also the markets BMW target and how BMW group as an automobile industry faced the recession period. The project will also look at the growing competition in the automobile industry and the major competitors for BMW Group. The marketing strategy of BMW Group will include their segmentation, target markets, marketing mix and by using SWOT analysis, the author will describe the advantages and benefits it is delivering to its customers and also its disadvantages. The pricing strategy of BMW will also be described. BMW adopts a differentiated strategy so the author will describe how it affects the...
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...Launching the BMW Z3 Roadster Introduction BMW Z3 is the 1st BMW car which is being manufactured in North America, a market which has contributed only 16% to BMW s revenues. At the same time, the American customer has found itself very difficult to relate itself to a foreign brand. Here lies the challenge for BMW and the marketing efforts behind the Z3 campaign are aimed at changing this perception of the American customer and ingrain BMS s brand image in the hearts of Americans. Phase1 which was not a run of the mill marketing campaign created a huge buzz and was deemed a huge success. The campaign revolved around the placement of the BMW Z3 in the James Bond Movie, GOLDENEYE as Bonds new car. Several other non-traditional elements such as being part of the Neiman Marcus Christmas Catalog, product appearance on the Jay Leno show, and launch at Central Park ensured an out-of-the-box prelaunch. The challenge now is to leverage the buzz and design Phase II marketing strategies which will convert the interest generated into revenues for BMW. Strategic Significance of the Launch The launch is especially significant for BMW because the success of the entire U.S. operations of BMW crucially hinged on it. Moreover, BMW hopes to position the BMW brand firmly in American culture and settle into the hearts and minds of the American public through the launch. It was also meant to promote the vehicle as a cultural icon in America. Further, the launch demonstrates that BMW is firmly committed...
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...BMW i3 Launching Strategy * BMW uses pre-announcement strategy three times in 2011, 2012, and 2013 consecutively before its launching date, 15 November 2013. The first pre-annnouncement date reveals the BMW’s intention to develop BMW-I as a goal on delivering sustainable mobility. One year later, they announce its i-prototype in London’s Park Lane. In 2013, four months before its launching date, they announced the BMW i3’s price. Source: http://www.plugincars.com/bmw-share-more-about-2014-i3-electric-car-127704.html Source: http://www.carmagazine.co.uk/car-news/industry-news/bmw/bmw-unveils-i3-edition-2012-explains-i-strategy/ Source: http://www.autoblog.com/2013/07/22/bmw-i3-to-start-at-41-350/ DATE | COUNTRIES | October-December 2013 | Germany | | Italy | | Spain | | Sweden | | Netherland | | French | | Switzerland | November 2013 | United Kingdom | May 2014 | United States | | Canada | April 2014 | South Korea | | Japan | September 2014 | Mexico | | Brazil | | China | October 2014 | Colombia | November 2014 | Australia | December | Singapore | | Latin America | | | LAUNCHING STRATEGIES Types | Activities | Sources | FANFARES | * The BMW launches a mobile and tablet campaign in order to create real-user experiences. It aims to build a mobile-centric platform which offers a deeper level of brand and content engagement. * Social Media Campaign through Facebook Fans Page, BMW Blog, Website * Broadcasting...
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...Advertising Plan Prepared By Christopher Reynolds For Professor J. Tripp San Francisco State University August 13, 2007 Brand Performance Product Description Mercedes-Benz is a luxury automotive manufacturer located in Munich, Germany. The oldest of all German manufacturers, they were founded by Karl Benz in 1871. They distribute their cars to dealers all around the world, but have a particularly high demand in North America, specifically America. Sales (in Millions) SALES Mercedes Benz 2005 $21.0 2006 $29.0 2007 $39.0 Geographic Distribution • • Dealerships located in downtown San Francisco and in Colma. Majority of buyers reside in affluent areas within San Francisco. Pricing Strategy • Pricing strategy is a reflection of the quality and luxury of automobile as well as the brand itself: top of the market. Advertising Expenditures (in Millions) ADVERTISING EXP. Mercedes-Benz 2005 $1.5.0 2006 $1.8 2007 $2.3 Competitive Trends Two Major Competitors • Major competitors are BMW and Audi for the San Francisco market. Competitive Sales (in Millions)/Share of Market Mercedes Benz BMW Audi Industry Total % Change 2005 S.O.M. 2006 S.O.M. 2007 S.O.M. $21.00 37.50% $29.00 36.71% $39.00 35.45% $23.00 41.07% $31.00 39.24% $45.00 40.91% $12.00 21.43% $19.00 24.05% $26.00 23.64% $56.00 100.00% $79.00 100.00% $110.00 100.00% n/a 30.00% 28.21% Competitive Product Line • Product line for both competitors consists of automobiles designed with German...
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...Kingdom and United States of America. 4 1) BMW i8 target market in UK and US: 4 2) The key messages of BMW 5 3) An examination of the marketing communications tools and media used 8 Advertising: 9 Sales promotion 11 Direct marketing & personal selling 11 Public relations 11 4) Similarities and differences of the marketing communications in UK and US. 11 5) How the communication activities are helping BMW 13 The key challenges of practicing IMC of BMW: 14 1) The key issues impacting upon BMW’s IMC: 14 2) Measurement of level of IMC evident: 16 Recommendations on further use of the tools/media 18 Conclusion 19 References 20 Appendices 26 Appendix 1: Planning and Implementing of IMC 26 Appendix 2: Factor impacts on customer’s purchasing in UK 27 Appendix 3: Factor impacts on customer’s purchasing 27 Appendix 4: Levels of IMC 28 Appendix 5: Four pillars of IMC 28 Introduction This paper provide an overview about the integrated marketing communication of BMW Corporation for the BMW i8 model in the United Kingdom and the United Stated. In those markets, the BMW i8 is considered as the first car that revolutionized in utilization and release values of a sport car. The purpose of the paper is to give information about the strategies of BMW in order to announce the BMW i8 to customers by using marketing communication methods and media and then analyse how BMW Corporation applied integrated marketing communication...
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...BMW Case Study A. The BMW customization program “Dream It.Build It.Drive It.” for X3 series compact SUV model had driven sales across North America. Joseph Wierda, BMW product manager was contemplating using the same marketing strategy to drive sales across all BMW product lines. He was particularly interested in using this customization strategy for flagship brand X5 and a new model X4 launching in 2015. The major marketing challenges to implement this customized program were as below: * Regional and Global Manufacturing Strategy: In North America compared to Europe, customers wanted immediate delivery. Purchase of a car was a major decision and that meant there was a high emotional value attached to the purchase. Customers wanted to experience thrill and excitement attached to car purchase. To solve the problem of immediate delivery for North America and to maintain customer interest during the sales process, BMW team made significant adjustments at the plant, in BMW’s supply chain and IT systems. For X3 series, they even shifted their assembly line from Austria to South Carolina to reduce delivery time across continents. BMW‘s plant in South Carolina manufactured six different models including X5 and X4. For other models which are not manufactured in North America immediate delivery in few weeks would be difficult to achieve. As models manufactured outside North America meant increased shipping time between continents. So, the concept of “Dream It.Build It...
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...profitability, due to their high level of sales, and the low level of expenditure needed to maintain the sales levels. The 7 series however is a model in decline in terms of its lifecycle. It is found at the ultimate destination of all products, a ‘dog’. The production does have market share, but its desirability is waning and its performance relative to its competitors is not what it once was. The market for the 7 series however, is still performing well. This means that BMW should, and will review the model with a view to re-launch in the near future. The above products are all fairly settled. Many of them have been being manufactured for many years now with several re-designs and re-launches. BMW has however recently begun expanding its portfolio, and the result of this is some new star and problem children. One of these stars is the X5. The X5 is a new market area for BMW. The 4x4 market can be extremely profitable, especially the ‘On road’ 4x4 products. This market is very large and growing, and BMW have made an attempt to get a slice of the cake with the X5. The Z3 and Z8 are very similar products. They are both small sports cars, differing in the Boston Matrix in terms of market share and price. The Z3 is a star, but the Z8 could be described as a problem child. More affordably priced than the Z8, and with a larger share of the growing market, the Z3 is a product beginning to mature and generate a...
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...BMW MARKETING INNOVATION Since the competition started to imitate BMW’s advertising messages of outstanding quality, BMW decided to come up with a unique way of reaching its target audience. The company did so by hiring Fallon Worldwide, and advertisement agency based in Minneapolis, MN, to come up with a new campaign. Fallon developed the concept “The Hire” series. Fallon's responsibility also included the way in which these movies were to be delivered to BMW's target audience. It was also questionable whether the campaign should be the same throughout the world, or if it should be localized to adapt to language and consumer taste differences. In order to attract highly recognized directors, as well as actors, BMW was willing to spend a large amount of money. In addition to coming up with a unique advertising campaign, BMW also wanted to change their image. One of the goals was to make BMW look, not only cool, but likeable, which the brand needs to do to combat negative perceptions some people have based on old associations with the 80’s style yuppie arrogance. Company Profile BMW (Bayerische Motoren Werke Aktiengesellschaft) was founded in 1916 and has been publicly traded since 1969. The company produces, and markets, a varied range of higher end sporty cars and motorcycles. BMW has also manufactured the first passenger car running on hydrogen ready for common use, although the production figures are limited by the lack of a respective filling station net. In...
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...Final Project Marketing Plan BMW has always been premium brand oriented company. It manufactures three brands in BMW, MINI, and Rolls-Royce. These brands occupy various high end market segments from small car to luxury premium car. This leads to BMW become the only both premium car and motorcycle manufacture. Each brand within BMW has its own clear brand image. Its products have rich product connotation in aesthetic and dynamic design, dynamic performance, technical content, and overall quality. Thus, it can provide customer with practical value. Build on this basis, BMW can expect higher margin and continuing to maintain profitable growth and ensure its independent status. SWOT OF BMW The SWOT analysis is a sum up of the external and internal analysis. Moreover, the SWOT analysis will be used to manipulate the strategic findings in order to identify which areas are of particular interest for the BMW Group. This covers both the identification of the best opportunities and the biggest threats to the organization. The SWOT analysis will put things into perspective by identifying, which threats and opportunities should be dealt with right now and which should be a concern for the organization in the future. (http://pure.au.dk/portal-asb-student/files/10730/Valuation_of_BMW.pdf) The internal factors to...
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...COOPER: MARKETING STRATEGY, DIGITAL MARKETING, BRAND & ETHICS 10.2478/cris-2013-0005 MINI COOPER: MARKETING STRATEGY, DIGITAL MARKETING, BRAND & ETHICS MARIIA MOISEIEVA The report is designed to examine, analyse, and evaluate where appropriately the current Mini Cooper’s marketing strategy, its digital marketing initiative, branding, and the importance of ethical values in Mini Cooper as well as other organisations. That is important for understanding of the practical applications of marketing is achieved by applying theory to them. It is determined that Mini’s marketing strategy has shifted in terms of targeting and brand positioning. As previously it was an affordable iconic British car, now it has become a cool luxury car dominantly for a young segment. Its international marketing strategy is differentiated in a way that a brand is built up on the historical iconic image of Mini for the UK and associated market, but it is not associated with any values in the past for the US customers. Overall, Mini’s marketing strategy is considered to be innovative, creative, and sometimes ‘silly’, which is of great value for its young energetic target audience. Digital marketing initiative also corresponds to the latest IT and social trends worldwide by ‘digitalising’ marketing initiatives and active social networking with the consumers. Brand is a core competence and ‘everything’ for Mini. Marketing is centered on its brand, not vice versa. An analysis of the Mini’s strategy shows that...
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...Individual Assignment Case 1 Question Number 1 Answer Pros to BMW The pros of selecting target marketing is • BMW created the lower-priced 1 Series and X3 SUV to target the “modern mainstream,” a group who are also family-focused and active but had previously avoided BMWs because of the premium cost. • The 1 Series reached this group with its lower price point, sporty design, and aspiration to own a luxury brand. The X3 also hit home with its smaller, less consumers expensive SUV design. BMW introduced convertibles and roadsters to target “post-moderns,” a high-income group that continues to attract attention with more showy, flamboyant cars. BMW’s 6 Series, a flashier version of the high-end 7 Series, also targeted this group. • It helps to identify and asses the relative worth of different market segments and selecting one or more segments in which to compete. • It helps to easily identify the potential customers by targeting into specific groups or individuals. • BMW uses a wide range of advertising tactics to reach each of its target markets but has kept the tagline “The Ultimate Driving Machine” for over 35 years. During that time, U.S. sales of BMW vehicles have grown from 15,000 units in 1974 to approximately 250,000 in 2009. Cons to BMW The Cons of Selecting target segmentation • It was too selective strategy and were not able to see other marketing strategy • The strategy was not flexible and gave options . • The area of competitive differentiation...
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...MINI was born in 1959 in United Kingdom and became an independent brand of BMW group in 1994 by SIR Alec Issigonis (BMW Group, 2009) At the beginning it was an affordable iconic British car, now it has become a cool luxury car dominantly for a young segment. Its international marketing strategy is differentiated in a way that a brand is built up on the historical iconic image of Mini for the UK and associated market, but it is not associated with any values in the past for the US customers. Overall, Mini’s marketing strategy is considered to be innovative, creative, and sometimes “silly”, which is of great value for its young energetic target audience. Mini focused on group of young generation – up to thirty five years old, well-educated and wealthy background. Those people that want to be different and willing to pay a big amount of money to show their status and images. Mini has used “un-traditional” way to advertise its products. Only $20 million was spent on traditional media in 2012 such as television, compared to $80 million spent by its competitors Fiat. Under direction of BMW group, beside TV and Magazine advertising, an extensive amount around @20.7 million euro was spent on E-marketing to bring people awareness about the product. As it is a technology world today, the Yo ungers would prefer accessing the internet to search for wanted information, rather than sitting at home and watch television. In addition, customers can access and see the cars in a fancy...
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...Launching the BMW Z3 Roadster January 1996 marked the beginning of Phase II of BMW of North America Inc.’s Z3 roadster introduction. Phase I had centered on the placement of the new $28,750 two-seat convertible in the James Bond hit movie, GoldenEye, which premiered several months earlier. While not yet critically evaluated, results of the “out-of-the-box” pre-launch campaign appeared very positive: word-ofmouth concerning the Z3 and the James Bond cross-promotion were favorable, and product orders far exceeded BMW’s initial expectations. The challenge now was to design a marketing program that would sustain product excitement until dealer product availability beginning in March. Phase II planning had to be undertaken within the context of other important events in the BMW product family: (1) the April launch of the redesigned 5-Series; and (2) the company’s role as “official international automotive sponsor” of the 1996 Atlanta Summer Games, which would begin in earnest with the Olympic Torch Relay 5-Series event in June. While these other elements of the BMW product family clearly impacted the Z3, the marketing approach and ultimate results for the Z3 would influence the whole BMW operation in the United States. Dr. Helmut Panke, Chairman and CEO of BMW (U.S.) Holding Corp. since 1993, noted that the Z3 was destined to be “the first BMW not made by mythical little creatures in the Bavarian woods. This car will be made in Spartanburg, South Carolina. Some people think BMW means German-made...
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...The BMW Group – one of Germany’s largest industrial companies – is one of the most successful car and motorcycle manufacturers in the world.With BMW, MINI and Rolls-Royce, the BMW Group owns three of the strongest premium brands in the automobile industry. The company formulated their Strategy Number ONE, which aligns the BMW Group with two targets: to be profitable and to enhance long-term value in times of change. And this applies to technological, structural as well as cultural aspects of our company. Since 2007, they have been implementing various initiatives in keeping with the strategy’s four pillars: Growth, Shaping the Future, Profitability and Access to Technologies and Customers. The four pillars of strategy number one: 1.Growth BMW adopted the view of “customers service=growth driver” as the underlying principle to grow its market. In 2008, the company had accumulated more than 14 million BMW automobiles on the road,which in recognized as 14 million potential service customers. For this reason,BMW launched global initiatives to systematically exploit to huge sales potential of the service and part business,enabling the organization to reach out entirely new group of customers. As result,customer focus became the heart of all of BMW’s sales and marketing activities. BMW focused on developing its growth market by continuously pursuing targeted regional expansion strategy particularly in parts of Asia. 2. Shaping the Future BMW’s future primarily...
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