Marketing Approach

Marketing approaches used by BMW

1. Brand/product differentiation strategy

This marketing approach implies to concentrates on those attributes of products that are unique and not found in rival products to fascinate the target market. Brand or product differentiation acts as a competitive advantage to the firm. The research conducted in niche marketing strategy can result in modification of product to perk upon differentiation, but this not termed as differentiation. Brand or product differentiation can be defined as the process of delineating differences between products / services that can be physical or non – physical. The differentiation could be quality, functional features, sales promotion activities of manufacturer, difference in design of model, difference in location and timings availability (Kotler, et. al 2006). The main objectives of this strategy are to create value to buyers and to develop a position that customer can view as real difference. The concept of unique selling proposition is derived from brand differentiation strategy.

The outcome of this strategy can move the product from price factor to non -price factor like promotion variables, distribution strategy, products traits.

The advantage of this strategy is that differentiation not only acts as a source of competitive advantage but also reduces the intensity of competition in the market. As the product becomes unique in the minds of customer, they are no longer comparable with rival products.

The following unique selling propositions are used by BMW to differentiate its series 7 (F01)

* This product has long wheel base of 3210 mm .

* This model has 6 speed automatic transmissions with dynamic drive control.

* This premium car best traits include telecommunication and navigation system, Bluetooth, 4 zone automatic air conditioning, multi- channel audio system, DAB double tuner, USB port, DVD entertainment system, luxury seating, 80 GB hard disc, iphone...