International Study Centre
CW: Can the Marketing mix model assist BMW to improve sales performance efficiently
Tutor’s name: Boidurjo Mukhopadhyay (Rick)
Course name: Business and Management
Class name: 3PMan I4
Student number: 21205935
Candidate number: 113318
Name: Wang Binfeng (Will)
Model name: Marketing mix
The essay title
How did Marketing Mix Model Help BMW to improve Sales performance efficiently.
Marketing mix is a dominant concept in modern marketing. It’s an integrated marketing tool which consists of all the possible components of marketing programs (price, service, distribution, promotion, process etc.) that can influence the demand of its product in the targeted market. The most popular categorization of marketing mix is to classify all elements into four, which is well known as 4Ps (McCarthy 1960): product, price, place and promotion. Product refers to tangible and in tangible products. Price is how much customers have to pay to obtain the product. Promotion serves as a communication channel between company and consumer. Place includes the activities company make to supply products to consumers. Moreover it can be defined as 7 Ps, with 3 additions as process, people and physical evidence (Booms and Bitner, 1980) which makes this model more appropriate in the market of services.
I’m going to further analyze marketing mix model with the example of BMW Company (Bayerische Motoron Worke Aktiengesellschaft) as how this model helps and fits in to enhance the firm’s competitive edge. BMW is one of the German big 3 luxury automakers, produces and markets a varied range of higher end sporty cars and motorcycles, a parent firm with Rolls- Royce and produces Mini cars as well. It rated number one in the 2012 Supplier Relationship Index, which makes it representative in automobile and motorcycle industry. This essay will deliver the answer of how marketing mix model works and been efficiently assisting the sales performance of this firm.
My position for this essay is that marketing mix model can assist BMW Company to improve sales performance efficiently. Four factors contribute to BMW’s sales performance: quality product; setting price with the byer’s persecution; good accessibility; and promoting as well as communicating with consumer which adding purchase incentives. These factors share a good correlation with marketing mix model which the 4P in particular instead of 7P as it’s not mainly the focus in the market of services.
Marketing mix model is a general powerful concept and makes marking much easier to tackle with customer expectations. It separates marketing from other company activities. Moreover, the variety of components in marketing mix deems to change a firm’s competitive position (Gronroos, 1994). Components of marketing mix are defined base on two criteria: it should contains a mixture of ingredients or elements which make up marketing, and the model should contains the forces tackle with marketing operation which a company’s marketing manager should adjust base on firm’s understanding of the programs that assist the company performance or goals(Borden, 1964). Thus, it makes marketing mix flexible in terms of components choices. However, all the importance of Ps should be justified and varied according to nature of product and product life cycle as well. Moreover components of marketing mix (4Ps) blend with each other. Also, a successful marketing strategy will provide the focus and direction for a firm in the long term. As a high profile brand, promotion is emphasized and desensitizes the weight to price. It’s the way how a firm achieves its goals.
Detailed analysis of Marketing mix 4P with evidence of sales changes (Graph below shows sales volume changes from 1998 to 2006)
What did they do to regain the market share and boosted sales?
It refers to physical products or the…