Price
Price is the amount that the customer is willing to pay for a given product or service and this is important as it determines the company’s profit and survival in the market. The price of BMW’s one Series is important to the company as it is set at the higher end of the market spectrum. The starting price of the car at the lower end is not too cheap therefore; it is not affordable by everyone except people on middle income or above. The starting price ranges from £17,000 to £29,000, which is highly priced than its main competitors in the market for example VW Golf and Ford Focus. The cost of the lower end of the BMW One Series is more expensive than the top of the range Ford Focus that is £13,900. The price elasticity of the car will affect the demand and the sales of it so a price that compliments the rest of the marketing mix is more likely to be more of a success.
Product
Product is an item that satisfies the needs and wants of the consumer. BMW cars are seen as a tangible product as they are highly produced around the World. This is seen as the most important element of the marketing mix as the product provides the requirements required by the consumers. For example the consumer will not like a car that doesn’t work in the morning. BMW’s marketing mangers develop their products that work well as part of the market segment for example BMW 3 series can be found as a Coupe, Convertible, Touring and Compact car. But the BMW Z4 which can only be brought, as a Roadster work well as they both hit different markets.
Each of BMWs Products has to go through the Product Life Cycle Process. To show where best the product is suited and the depending on the result BMW will have to decide if there is a nee to make changes to the Product or if they have to Re-launch the car again. For example BMW up 2008 only had the BMW X1 X3 X5 as their main 4X4 vehicles for sales but in the last quarter of 2008 BMW choose to launch the New BMW X6 due to the decline sales in the Previous Vehicles in that market. The same happened with the BMW one Series as BMW where not in the market for hatchbacks so they launched the one series in 2004 to compete with rivals Volkswagen and Ford.
Promotion
Promotion is used by BMW of a Method of communication to provide information to different parties about the Product. Since 1979 BMW has used the same company for advertising WCRS. The agency as made television adverts for branding campaigns and new car launches, Regional publications and Magazines, outdoor campaigns and brochures. Over the years BMW as used a number of slogans to go with their Promotions e.g. “a Luxury car that provides an exhilarating driving experience”, the smart choice and currently BMW is using the Ultimate driving Machine as the main slogan and was used in the advertising of the one Series as seen below.
Also a number of the BMW vehicles have featured in a number of different movies such as ‘James bond 007’ years 1983, 1994, 1997 and 1999 in the making of ‘The World is Not Enough’. They were also used in Austin Powers 3.
Place
Product placement is a business practice based on mutuality. Having its cars placed in a variety of films, television plays and documentaries benefits BMW in many ways. It reaches a wide section of the public quite often on a worldwide scale. With repeats, this can even become an audience of several millions as BMW vehicles are seen as luxury good so it is important they place their products in the correct areas where potential customers would buy this type of vehicle. And other various strategies such as intensive, selective and exclusive distribution can help BMW now and in the future as this complements the other aspects of the Marketing Mix.
