Question

What are the pros and cons of BMW's selective target marketing? What has the firm done well over the years and where could it improve?

Answer 1

Answer to the Question :

Pros of BMW's selective target marketing:

1. Opportunity to exploit untapped and neglected segments

2. Better focus on customer needs and develop customized products

3. Heavy engineering and robust models

4. Extremely responsive service support.

5.However targeting advertising is usually more expensive. But this can result in a higher return on your marketing budget.

Cons of BMW's selective target marketing:

1. Limited profit options

2. Limited opportunities to grow due to highly selective marketing

3. Unavailability of service centers at many locations where there can be consumers of its Products

BMW's Excellent Strategies :

1.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. Which led to huge increase in sales.

2.BMW created the lower-priced 1 Series and X3 SUV to target the a group who are also family-focused and active but had previously avoided BMWs because of the premium cost.

3.Customers desired a variety of design, size, price, and style choices. As a result, the company intoduced
unique premium-priced cars such as SUVs, convertibles, roadsters, and less expensive compact cars, the 1 series.

As a result of Introduction of Series 1 Cars ,BMW needs to Improve it's Brand Value by Distinguishing between High end and Low end Cars.