MBA 5501 CSU Advanced Marketing The Consumer Buying Process for BMW Case Study

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ipybingb75

Business Finance

MBA 5501

Columbia Southern University

MBA

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Instructions

Case studies are an essential learning strategy in business classes because they provide an opportunity for you to critically analyze events that have taken place in real-life businesses. This develops your critical thinking and research skills as you research the competition and industry in which your business resides in order to formulate a recommendation for the challenges faced by the company.

For this unit, review the “Marketing Excellence: BMW” case study on pp. 273 (attached) of your textbook. This assignment will be comprised of two parts; one part will ask you to respond to questions, and the other will require you to complete a case analysis.

Part 1

Evaluate this case, and respond to each of the following questions using both theory and practical managerial thinking.

  • Examine and apply the consumer-buying process for BMW. Identify the steps and the application to BMW. How does this process assist the marketing team at BMW?
  • How could data analytics be used to research the consumer in order to ensure a strong understanding of overall business and marketing outcomes at BMW?
  • Within the case, several clearly different target markets are identified. What does BMW do well to target each of these groups, and what could it do better? Within your response, include the process of segmentation.

Your Part 1 response must be at least two pages in length. Follow APA Style when creating citations and references for this assignment. Note that you will submit Part 1 and Part 2 in one document.

Part 2

Complete a case analysis of BMW. This requires that you conduct research on BMW beyond the case study material in the textbook. In the case analysis, you will look at the situational analysis, problem, and alternatives, and you will provide a recommendation. Refer to the instructions below as you construct your analysis.

  • Situational Analysis
    • Discuss the external environment through the compilation of a PEST (political, economic, sociocultural, and technology) analysis.
    • Discuss the internal and external environment through the compilation of a SWOT (strengths, weaknesses, opportunities, and threats) analysis.
  • Problem
    • Identify at least one organizational problem that BMW is currently having or one in which you project it will have in the future. Base this upon your research and critical thinking.
  • Alternatives
    • Compile three or four potential marketing-related solutions to the problem above. Remember that these are potential alternatives; you will not select all of the alternatives to solve the problem.
  • Recommendation (Marketing Strategy)
    • Select one or two of the alternatives above to solve the problem that you identified in this case analysis.
    • Discuss your rationale for choosing these and not the others. Include supporting research that will increase the depth of your analysis.

In order to successfully complete Part 2 of this case study, you need to research and review other sources to provide you with the skills to research for the industries/competitors and find information for BMW.

Part 2 must be at least four pages in length. Follow APA Style when creating citations and references for this assignment. Support Part 2 with at least three sources outside of the textbook. As aforementioned, keep in mind that Part 1 and Part 2 will be submitted in one document.

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Marketing Management, VitalSource for Columbia Southern University ... https://print.vitalsource.com/print/9781323591512?brand=Bookshelf&f... Printed by: vclovato@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. 1 of 3 6/19/2020, 6:15 PM Marketing Management, VitalSource for Columbia Southern University ... https://print.vitalsource.com/print/9781323591512?brand=Bookshelf&f... Printed by: vclovato@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. 2 of 3 6/19/2020, 6:15 PM Marketing Management, VitalSource for Columbia Southern University ... https://print.vitalsource.com/print/9781323591512?brand=Bookshelf&f... Printed by: vclovato@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. 3 of 3 6/19/2020, 6:15 PM UNIT IV STUDY GUIDE Creating Strong Brands in a Global Competitive Marketplace Course Learning Outcomes for Unit IV Upon completion of this unit, students should be able to: 2. Synthesize the use of marketing research to predict global business outcomes. 2.1 Compile a SWOT (strengths, weaknesses, opportunities, and threats) analysis in order to research the internal and external environment of a company. 2.2 Analyze a PEST (political, economic, sociocultural, and technology) analysis in order to research the external environment of a company. 2.3 Examine how data analytics supports global marketing strategies. 3. Analyze the use of marketing strategies in the management of global customer brand equity. 3.1 Examine potential marketing strategy alternatives for a company. 3.2 Present marketing strategy recommendations for a company. 4. Compare the development of innovative new products on competitive product strategies. 4.1 Apply the consumer buying decision process to a new product. Course/Unit Learning Outcomes 2.1 2.2 2.3 3.1 3.2 4.1 Learning Activity Chapter 9, pp. 272–273 Unit IV Case Study Chapter 9, pp. 272–273 Unit IV Case Study Chapter 9, pp. 272–273 Unit IV Case Study Unit Lesson Chapter 8, pp. 217–229 Chapter 9, pp. 272–273 Unit IV Case Study Unit Lesson Chapter 8, pp. 217–229 Chapter 9, pp. 272–273 Unit IV Case Study Unit Lesson Chapter 9, pp. 272–273 Chapter 10, pp. 275–286 Chapter 11, pp. 299–315 Unit IV Case Study Required Unit Resources Chapter 8: Tapping into Global Markets, pp. 217–229 Chapter 9: Identifying Market Segments and Targets, pp. 272–273 Chapter 10: Crafting the Brand Positioning, pp. 275–286 Chapter 11: Creating Brand Equity, pp. 299–315 MBA 5501, Advanced Marketing 1 Unit Lesson UNIT x STUDY GUIDE Title In this unit, we discuss how brands connect or do not connect with customers. Think of a brand that you purchase frequently and one that you never purchase. What drives polar opposite reactions to these brands? Think about how acquaintances of yours have totally different reactions to these same brands. Why does this happen? At the core of these decisions is the segmentation process. Kotler and Keller (2016) define this process as dividing the population into sections or segments based on a defined set of criteria or characteristics. The criteria typically includes demographic, behavioral, psychographic, and geographic information. The first automobile commercial done by Audi compares its excellent performance to a professional competitive racing scenario. This might appeal to the consumer interested in a high-performance vehicle. Conversely, Honda takes an entirely different approach by basing the commercial on the theme from the popular movie Ferris Bueller’s Day Off and by appealing to the consumer who is interested in fun. The second segmentation criteria might be psychographic, which takes into account personality, values, and interests of the consumer. This looks into the inner workings of the consumers by understanding exactly what internally motivates them. An example of this might be cultural values, religious beliefs, political party alignment, or even a high work ethic. The third segmentation criteria uses the demographic aspects of the consumer. This might include income level, sex, age, family size, family life cycle, occupation, education level, social class, and even ethnicity. Watch the video Alden & Maine Go Out on a Date, which is a Coca-Cola commercial that demonstrates how Coca-Cola uses segmentation criteria to reach and resonate with a certain segment of the population (transcript for Alden & Maine Go Out on a Date video). Who is this segment? Why do you think this commercial effectively reaches that demographic? The final segmentation criteria is geographic, which suggests that the population is divided based on a region of the country, neighborhood, or even the size of the city. Think about preferences of people in different countries or even differences within the United States. Compare the South with the Midwest, and compare the East Coast with the West Coast. Segmentation allows a marketer to completely understand the population and, specifically, the consumers who are truly interested in the product or service. This strategic grouping of consumers will provide the company’s marketing team with a clear understanding of their customers’ respective needs. The idea of understanding the target market’s value proposition ties into solid segmentation practices. Once a marketer has segmented the market based on these four criteria, the marketer is now able to more clearly identify the target market of a company. Marketers use the knowledge gained from the segmentation process to define the target market. Kotler and Keller (2016) define the target market as a fairly homogeneous or similar group of customers to whom the company wishes to appeal. Marketing departments do not have an unlimited marketing budget; therefore, it makes economic sense to focus marketing efforts on those who are the most interested in the product or service. Many companies have multiple target markets and will choose to focus certain advertising campaigns toward certain groups during select times of the year. In other words, companies like Nike do not have a target market of everyone. Instead, they have one target market that is defined one way and another target market that is defined another way. For example, target market #1 might be 20- to 30-year-olds who have an interest in running competitively and who live in the Midwest. Target market #2 might be 60- to 70-year-olds who enjoy wearing Nike sportswear for everyday wear and who live in the Southwest. Nike might focus on target market #1 with a marketing campaign in quarter 1 and focus on target market #2 in quarter 3. The marketing content used in each campaign should reflect the target market’s age group and interests. Additionally, the media used should align with the media the target market tends to use. As a marketer is using segmentation and identifying the target market, it is important to understand the role of digital analytics in this process. Holistically, digital marketing requires a more quantitative and thoughtful approach to marketing strategies. Digital analytics suggests that a company is using this quantitative research toward understanding exactly who the target market is and how the company can improve the marketing experience. This is done by gathering, measuring, analyzing, and interpreting digital data of consumer MBA 5501, Advanced Marketing 2 behavior on websites, mobile applications, etc. Through examination of this behavior, marketers generate UNIT x STUDY GUIDE leads and create both digital and traditional marketing content to reach consumers. Title Differentiation is the process by which a marketer compares the offerings of their company with that of their competitors. This can be in the form of product or service quality, pricing strategies, distribution methods, communication strategies, marketing strategies, level of brand equity, or a host of other offerings as determined by the value proposition of the target market. Marketers look to differentiate or demonstrate how the product/service offering is different than that of the competitors. The video Value Added Branding Double A Paper shows how a marketer for Double A Paper attempted to differentiate something as simple as paper (transcript for Value Added Branding - Double A Paper video). When viewing the video above, think about this from the standpoint of a business that needs to buy large quantities of paper in order to run their business. The video clearly demonstrates how Double A Paper looks to differentiate their product offerings in the market. The marketer in this video states that if the company does not differentiate based upon the product or the quality, it becomes a low-pricing battle (Marketing Magazine, 2010). Another important area of concern for a marketer is that of the competitive advantage, which suggests that a company is better than its competitors in certain areas. For instance, Walmart has a competitive advantage with respect to pricing because it offers some of the lowest price offerings relative to its competitors. On the other hand, Nordstrom does not have a competitive advantage with respect to pricing because it has a highpricing strategy. It does, however, have a competitive advantage with respect to its product or service offerings because it provides the consumer with high-quality products and a high service level. Another example is Apple, which certainly has a competitive advantage with products or services but does not have a competitive advantage with its pricing strategies. Disney World has a competitive advantage with its unique product or service offerings at its parks, but it does not have a competitive advantage with respect to its pricing model. Through this discussion, we realize that a company can have a competitive advantage in one area and not in another and still be a highly successful company. Positioning is yet another important concept involved with effectively reaching the target market. According to Kotler and Keller (2016), positioning is how the consumers think about the brand. Marketers use market research to understand how their brand is currently perceived and follow that with marketing to reach those consumers and/or modify the perception of the brand. The video Airline Launches Disco Inspired Safety Video shows how Air New Zealand used positioning to its advantage (transcript for video Airline Launches Disco Inspired Safety Video). This airline clearly had an idea of how they wanted their airline to be perceived by customers flying on their planes. What is your perception of this airline? Maybe words such as fun, exciting, creative, or innovative come to mind. While this was the intent of this in-flight instructional video, this was eventually removed because consumers thought this airline was not necessarily taking flying safety seriously. At the end of the day, marketers are always looking to create a high level of brand equity. In Unit III, we discussed the advantages of creating long-term loyalty relationships through the brand. Kotler and Keller (2016) define brand equity as the preference of a brand over another by the customer. This brand loyalty can be as simple as a buying preference or as complex as an advocate that actually helps market the brand to other consumers. Advantages of a company maintaining this high level of brand equity are detailed in the graphic below. MBA 5501, Advanced Marketing 3 UNIT x STUDY GUIDE Title Think about how a company should look to differentiate its product or service while offering to maintain a competitive advantage that leads to this brand equity. As the world continues to become more global in nature, the need arises for companies to not only understand the consumers within their country but also understand the consumers in other countries. This involves developing an understanding of the differences in buying practices among these foreign consumers. Several factors influencing these buying decisions in each country are culture and religious beliefs, the political arena, enforced laws, technological advancements, educational levels, and economic stature of the country. While marketers cannot control these external factors, understanding and working with them will enable companies to remain competitive within a continuously changing global marketplace. The video What Fast Food Is Like Around the World demonstrates how our popular fast-food restaurants change their food offerings in different countries in order to adapt to different palates (transcript for What Fast Food Is Like Around the World video). While each of these fast-food restaurants are looking to maintain a certain brand identity, understanding and adhering to customer preferences in each country is of the utmost importance. This can be the difference between a profitable global expansion and a complete failure. Disney is a great example of an organization that initially attempted to bring westernized ideas to foreign countries. The company brought an alcohol-free policy to France, not understanding that French citizens have a deep-rooted cultural practice to drink a glass of wine with their meals. With this realization, Disney quickly changed its way of doing things in their park in France (Bricker, n.d.). Global companies understand that people in different countries have different taste preferences. The Kraft Foods company provides an excellent example of this with its famous Oreo cookies, which has unique modifications to the product itself as well as how it is packaged. For instance, in the United States, consumers shop in large stores and are comfortable purchasing larger, 18-ounce packages of cookies. Alternatively, smaller packaging formats are made available in some countries to include kiosks in Brazil, self-service convenience stores in China, and street vendors in Venezuela. Stores in these countries do not have the shelf space, and consumers do not have the pantry space in their homes to accommodate the larger package sizes. Additionally, the actual Oreo cookie product is modified in some countries. These adjustments include a lightly sweetened version in China and a milk chocolate version in Venezuela because people in those countries tend to prefer a less chocolatey flavor. Another area of adjustment is in the presentation of MBA 5501, Advanced Marketing 4 marketing campaigns in different countries. For example, in China, Kraft advertises onGUIDE television UNIT xheavily STUDY because television is considered more credible. In Venezuela, outdoor marketing Titleis more effective because people are constantly on the go. Kraft Foods understands the various customer needs in different countries and works hard to fulfill these needs. Ultimately, this should lead to a higher level of brand equity and reaching a competitive advantage in more areas that are important to the consumer. References Bricker, T. (n.d.). Guide to drinking at Disneyland Paris. Retrieved from https://www.disneytouristblog.com/disneyland-paris-bars-guide/ Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Boston, MA: Pearson. Marketing Magazine. (2010, January 28). Value added branding - Double A Paper [Video file]. Retrieved from https://youtu.be/8j0fq74ACFI The Telegraph. (2011, March 28). Airline launches disco inspired safety video [Video file]. Retrieved from http://www.youtube.com/watch?v=RWhHpjZfTik Suggested Unit Resources You are encouraged to read the rest of Chapter 9 (pp. 245–271) for more information on segmentation and target market identification. The chapter can provide you with a better understanding of the consumer and value proposition. You are also encouraged to read the rest of Chapter 11 (pp. 316–333), which provides additional insight on brand management and brand equity. MBA 5501, Advanced Marketing 5
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Attached.

Running Head: ADVANCED MARKETING CASE STUDY

Advanced Marketing Case Study
Instructor’s Name
Student’s Name
Institutional Affiliation
Date

1

ADVANCED MARKETING CASE STUDY
PART 1
Examine and apply the consumer-buying process for BMW. Identify the steps and the
application to BMW. How does this process assist the marketing team at BMW?
As a marketer, you need to realize that the consumer doesn’t just buy the product at
random. Instead, there are several steps that most customers go through before deciding
whether to make the actual purchase or not. The step involves six main stages that are
common in most of the consumers’ buying habits. To start with, the consumer recognizes that
there is a problem and thus a need to buy a particular product to solve the said problem. For
instance, in the BMW case study, different consumers have different problems that need to be
addressed. The company responds by introducing different brands that favor consumers’
tastes.
The second step of the process involves information search. This comes after the
consumers have identified the need, and therefore they work towards getting the best choices
that would satisfy their needs. This step involves searching for the best prices to acquire the
product. At BMW, the company is conscious that the consumers are sensitive to price, and
therefore the company sells different brands at different rates. Further, consumers evaluate
the alternatives available before making the final purchase decision (Monga, et al., 2012).
From the case study, the company is aware that there are other brands like jaguar and
Mercedes that are equally competitive, and thus it responds by adding some electronic
features to its brands. Consequently, the consumers are responsive to the Idrive feature,
which enhances comfort and attracts them to BMW’s brands.
The fourth step involves the consumer making the purchase decision. Here, the
consumer decides whether to make the actual purchase order or not. This is based on the
results of the first three stages. The business should respond by giving the customers as much
information as possible concerning their brands and brand security. The fifth stage is the

2

ADVANCED MARKETING CASE STUDY
actual purchase stage. This comes after the consumer has identified the problem, searched
about the product, evaluating the alternatives, and finally makes a purchase decision. The
company can respond to this by avoiding complex buying processes and steps (Monga, et al.,
2012). The final stage of the buying process of the consumer is the repurchase decision. This
stage exclusively depends on the performance of the product already purchased. For instance,
from the case study, BMW nurtures their customers by investing in research for better brands
and segmenting their markets. That way, different market segments have different brands that
support their needs. Consequently, the company retains most of their customers, which is the
primary goal of the company.
How could data analytics be used to research the consumer in order to ensure a strong
understanding of overall business and marketing outcomes at BMW?
Data analytics has made a significant contribution to overall business performance. A
company that invests in data analytics is always a leader in the related field. For instance, in
the case study, BMW can adopt a data analytics technique to reach out to more customers and
also promote product satisfaction for their brands. The primary goal of data analytics is to
identify the company's target market and thus improve their marketing experience. This can
be carried out in various steps.
The first st...

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