BMW Marketing Communications Mix

BMW Group uses a range of elements of the marketing communication mix such as print and media advertising, sales promotions, events and experiences, public relations and direct marketing in an integrated manner in order to communicate its marketing message to the representatives of the target customer segment. BMW Group marketing message is focused on high level of digitalization of BMW Group vehicles and their advanced set of features and capabilities. As it is illustrated in figure below, in 2014 BMW Group invested USD 291.4 million in advertising, which is a small increase compared to the previous periods.

BMW Group advertising spending

Advertising

BMW Group uses print and media advertising extensively to communicate its marketing message to the members of its target customer segment. The choice of specific print and media platforms for advertisements are guided by interests of the target customer segment. At the same time, BMW is increasingly shifting into mobile media as effective advertising platforms. In 2015, BMW started advertising in WeChat a popular messaging app in China with around 550m monthly users[1]

Viral marketing can be defined as a type of marketing that is relies on spreading the marketing message amongst members of existing group. At present, viral marketing is effectively used by major car manufacturers such as Volkswagen, Toyota and Honda, but potential benefits of viral marketing have not been yet fully realised by BMW strategic marketing team.

Engagement in viral marketing can provide BMW the advantages of spreading the marketing message in a cost-effective manner. Moreover, viral marketing is associated with highly effective customer targeting and the spread of the marketing message in the global scale.

However, BMW marketing team need to be aware of disadvantages associated with viral marketing as well. To be more specific, these disadvantages include lack of control tools over viral marketing effects on people, and high levels of vulnerability to manipulation and spamming.

Sales Promotion

Sales promotion involves offering short-term incentives for potential customers to commit to the purchase of products and services. BMW Group applies sales promotions as a part of its marketing strategy in an occasional manner. Specifically, the company offers occasional seasonal sales promotion campaigns, as well as, sales promotions in certain markets to sell certain models of vehicles.

BMW Group also runs various customer loyalty programs in major markets as part of its sales promotions strategy. For example, in North America, BMW offers repeat purchasers a USD500, USD1,000 or USD1,500 Loyalty Credit depending on the model of the vehicle.[2]

BMW Group Report contains more detailed discussion of BMW marketing communications mix and marketing strategy. The report also illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on BMW Group. Moreover, the report contains analysis of BMW Group’s leadership and organizational structure and discusses the issues of corporate social responsibility.

[1] The Economist (2015) Available at: http://www.economist.com/news/business/21662543-people-spend-more-time-social-media-advertisers-are-following-them-brand-new-game

[2] Loyalty Waiver (2016) BMW Group, Available at: http://www.bmwusa.com/standard/content/loyaltywaiver.aspx