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Marketing Management Assignment

Ali Ahmed Hulio

1947125
BSAF-6
Date: 24/10/2022
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Q1: What are the pros and cons to BMW’s selective target marketing? What has the
firm done well over the years and where could it improve?
Ans: When I see someone driving a BMW, I assume they are wealthy. BMW drivers are
categorized as wealthy, and it is these individuals that BMW seeks to attract. The most
successful pro, they will target those who are more likely to buy their product if they target
people with higher earnings. Customers with lower incomes are less likely to purchase BMW
vehicles due to the company's reputation as a luxury and brand. The problem of selective
marketing is that it does not advertise to people with lower incomes, thus they have nothing
to motivate them. A BMW commercial may persuade someone to buy a vehicle. Due to the
market's primary concentration on those with higher incomes, BMW may be less well-known
among those with lower incomes.
The BMW business has done a terrific job of enhancing its products over time. To
stay current with technology, they have installed a number of electrical systems into their
cars. Additionally, BMW has high-performance SUVs for bigger families and more
physically active people. I would advise BMW to create products for people with lower
incomes in order to access a whole new target market. Given that the majority of people are
from middle-class or lower socioeconomic backgrounds, BMW has a sizable untouched
market to pursue.

Q2: BMW’s sales slipped during the worldwide recession in 2008 and 2009. Is its
segmentation strategy too selective? Why or why not?
Ans: In my opinion, their strategy was not overly selective. During the time of the economic
recession, everyone was affected. As a consequence of this, it would be unreasonable to fault
BMW for the strategy that was ultimately responsible for the company's rise to the top of
their industry. In this context, I believe that their strategy might have been of some use to
them during worldwide recession. Due to the fact that they are extremely selective as far as
their target market is concerned, BMW only markets to the wealthy. As a consequence of
this, money spent on advertising is not always misspent.