Running Head: Understanding Target Markets Report 1 Understanding Target Markets Chad J. Don Professor Meraj Khan Market 571 July 31st. 2017 Understanding Target Markets Report 2 Bayerische Motoren Werke AG, also known as BMW is one of the most intelligent target marketing companies within the industry today. On the other hand, they do not target a wide enough market, but rather the luxury locomotive buyers. These individuals include the highest paid employees in the market and the average to higher income employees in the stable economies. The company has not been able to be in the top four international sellers, but it is still fighting to improve their market niche without affecting their quality (Bowles & Cooper, 2012). This paper analyzes the target marketing strategies at BMW. BMW has strategies that aim at beating the international market odds and gain some customers. An example is the German company alliance with a company that was not expected to alliance with BMW. The alliance yielded the BMW Roll Royce GmbH which enjoyed the better part of the automobile market between the UK and Germany (Smith, 2013). Understanding the market competencies and measuring the attractiveness of products is the main marketing strategy embraced by BMW currently. This means that Michael Porter competitive advantage strategy and Ansoff’s corporate strategy are used to expand and remain competitive in the international markets at BMW (Kumar, 2016). According to Khan and other researchers, BMW is company that has succeeded in luring a lucrative market to purchase their products through selling through movies. However, he thinks that use of James Bond movies which are full of fiction and exaggerating some BMW features in such movies is an issue of ethical concern since it is somehow deceptive to consumers (Khan, Mahmood, Lodhi, & Aftab, 2016). BMW is affected by international politics. Emerging markets, for instance Russia, China, India and others are affected by political and legal forces to points where consumption patterns change abruptly. BMW is dependent on the highest spenders, because their vehicles do not only provide the locomotion services, but also comes with expensive luxury. There is also some Understanding Target Markets Report 3 political forces in the motor industry where nations such as Japan impose higher taxes on imported vehicles to promote the market of the locally manufacture models. Economic factors that affect BMW include the purchase power of the consumers, and most consumers in the developing and underdeveloped cannot afford the prices quoted for BMW models. Secondly, the money markets affect the company since it sells globally, and has to embrace the local prices in every country they sell to (Bowles & Cooper, 2012). BMW is clearly a luxury, and has been created to serve the higher income individuals within international markets. As a result, the vehicles designed by this company promote social classism. This is a social problem globally. Technology is the most influential factor of the four. The company is always researching for more innovation with every brand they plan to launch. They have currently produced vehicles where the driver can pick calls through a wave of the hand over the GPS gadget, without touching it and can also pack the vehicle in constricted spaces without necessarily being inside the vehicle. With the next brand, the company will be looking to beat these inventions and come up with better technologies. Their consumers are pleased by more inventions and innovation because these are luxuries vehicles and super bikes (Bowles & Cooper, 2012). Understanding Target Markets Report 4 Economic Political Policies that might descelarate expenditure. Fluctuation of currency values Policies to increase importation duties to some of the company's markets. Consumers purchase power PEST Analysis Technology Social The invention of the I-car and elecrict cars are a threat to BMW's Market. The high luxury automobile products promote social classism. The high insistence on innovation demand higher level technology in production and products. Figure #1: BMW PEST analysis Currently, the company has specialized in high technology in both production and products. The production process has embraced robotics similar to what is happening in the better competitor’s production yard, General Motors. The company, however, has launched fewer brands compared to GM, and still holds a 2% market share of the world’s market. The best opportunity is the emerging markets where affordability is rising, and the demand of high quality and luxurious brands takes centre stage. They have an opportunity grow into the potential markets without compromising their quality. These opportunities into the emerging markets are current in nations such as Russia, Saudi Arabia and Japan, but they are future in nations such as South Africa, Nigeria, India, Kenya and the Latin Americas (Bowles & Cooper, 2012). The major threat includes the introduction of the electric cars. This poses a high technology requirement need. Apple is planning to invade the motor vehicle industry. With the creativity the company has shown in the electronics and software industry, all luxury vehicle Understanding Target Markets Report 5 producers have a reason to fear. The I-car to be launched will have controls done without having to use a windscreen to see the road outside. This increases the technology advancement threat to BMW in the near future (Bowles & Cooper, 2012). The target markets for BMW include the developed nations following the high purchase power and need for luxurious locomotives in such nations. However, the emerging markets are showing signs of optimism, with the company finding markets in places like Brazil and South Africa. The company is affected by international political and legal factors such as importation taxes, and economic factors such as the fluctuation of currency values in the destination markets. The company seems to increase the problem of classism and is very much affected by technology since they want to remain on top of luxurious locomotives market. The company will need to improve on their technologies before inventions such as the I-cars and the electric cars take the better share of the market. Understanding Target Markets Report 6 References Bowles, D., & Cooper, C. (2012). Case Studies for the High Engagement Culture: BMW Group and Whole Foods Market. The High Engagement Work Culture, 120-146. Keller, M. (2016). BMW: Entering the Automobile Market in Brazil. Khan, A. U., Mahmood, A., Lodhi, R. N., & Aftab, F. (2016). Influence of Product Placement on Consumer Behavior: The Mediating Roles of Consumer Recognition with Program Celebrity and Ethical Perceptions towards Product Placement that Leads to Consumer Purchase Intention. Journal of Business, 12(1), 168-184. Kumar, K. (2016). Strategic Management On BMW. Smith, D. J. (2003). Strategic alliances and competitive strategies in the European aerospace industry: the case of BMW Rolls-Royce GmbH. European Business Review, 15(4), 262276. Promotion & Product Report 1 Promotion & Product Life Cycle Chad J. Don MKT 571: Marketing Professor Meraj Khan August 7, 2017 Promotion & Product Report 2 Promotion & The Product Lifecycle Report A product life cycle explains the process a product takes within the market place (Plenert, CRC, Taylor and Francis, 2014). A product is developed in order to resolve a specific problem or to fulfill a specific want or need. At the introduction stage the product is registered with the relevant authorities. The company utilizes low prices in order to attract customers and the product is promoted through advertisement. Also, the product grows because the distribution channels are increased and improvements on the product. The product matures in the market by obtaining its own market share and competitive advantage. The company heightens product advertisement and is able to differentiate the product to suit various markets. Finally, the product usage starts to decline after it faces competition from other innovations and its market share is reduced by new entrants into the industry. A company can determine the effectiveness of a market strategy through the volume of sales it is able to increase after a marketing campaign. A successful marketing campaign should be able to increase sales. Additionally, a company can use the amount of income it is able to realize from the sale of the products. If the company is on the verge of making losses then the company’s marketing strategy is failing. If the company is using online platforms the company can track if the campaign succeeded by the reviews the company gets after the campaign (Powell, 2012). If the people are inspired to use the products then the promotion was a success. The company can use the newspaper as its print media. This is because it is the most popular form of print media. For example, if the company is dealing with detergent, a lucky shopper spotted in one of the malls would get instant prices. But the person must buy the detergent. The company can also utilize the online platform such as Instagram. Any user of the 2 Promotion & Product Report 3 detergent should post a short but creative video showing them interacting with the product. The person with the most liked video will be awarded a fully paid trip to the Bahamas. An integrated market plan is aimed at ensuring the company is able to brand its products. The various departments in the company have to share information that is aimed at developing the best mode of advertisement. The company analysis how well they can promote their product to the target market. The company should focus on the experience of the consumers and the products. Also, the company should be able to defend their products from those of the competitors. The company should bring its employees on board and other promotional agencies in order to create a powerful brand. The promotional model chosen should be able to reach different consumer segments. An advertising strategy takes into consideration the features of the product and the target market. The promotion strategy should be able to achieve an increase in overall performance of the product. The consumers targeted determine the mode of advertisement to be adopted (Shimp, and Andrews, 2014). For instance, if a company is selling headphones it can utilize the online platforms in order to reach the youth. Also, the strategy is influenced by the availability of funds in a company. An upcoming business with just enough capital cannot afford the television commercials. The company in coming up with an advertising company should incorporate the activities the company seeks to undertake. For example what kind of art the company will incorporate. Push and pull forces enable a company to promote its products effectively. The push strategy aims at making the products available to the market. The company develops a relationship with players in the distribution chain. The company ensures that its products are able 3 Promotion & Product Report 4 to get to the final consumer. The company partners with suppliers and outlets that will display its products for the consumers to buy ( Lamb, Hair, and McDaniel, 2012). The pull factors help the company advertise its products through various platforms so that clients develop knowledge about the products it is offering. By using the pull strategy the company is able to create demand for its products. In conclusion, a product life outlines the stages a product undergoes in the market. Additionally, the stages are aimed at making the product satisfy the needs of consumers. The stages include the introduction, growth, maturation and decline. At the first stages, the company tries to advertise its products in order to make products known to the market. The product starts to decline because of the introduction of other products by the competitors. More so technology advancement makes the product unpopular and thus the sales decline. 4 Promotion & Product Report 5 References Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning. Plenert, G., CRC Press., & Taylor & Francis (Londyn). (2014). Supply chain optimization through segmentation and analytics. Boca Raton: CRC Press/Taylor & Francis Group. Powell, G. R. (2012). Marketing calculator: Measuring and managing return on marketing investment. Singapore: John Wiley & Sons (Asia Shimp, T. A., & Andrews, J. C. (2014). Advertising, promotion, and other aspects of integrated marketing communications. Australia: Cengage Learning. 5 Running Head: Price and Channel Strategy Price and Place/Distribution of Apple Inc Chad J. Don MKT 571 Marketing Professor Meraj Khan August 14th, 2017 1 Price and Channel Strategy 2 Introduction In the recent past, Apple Inc. has made tremendous marketing efforts aimed at ensuring that the organization’s activities are aligned with the prevailing market conditions as well the consumer needs. It, therefore, becomes very critical to conduct an evaluation of .the company’s pricing distribution strategies. The utilization of effective channels as well as the ever growing portfolio has been very important in ensuring success of the company in the global market. These marketing elements have played a vibrant role in the understanding of how and why the company has been experiencing expansion in the different parts of the world. Distribution Strategies Apple Inc. greatly depends on a holistic distribution model (Heracleous, 2013). This model takes an advantage of the diversity in the available distribution channels. Consumers should always be able to access the services and products in any part of the world and during any period of the year. The channels and outlets that the company uses should be widespread so as to ensure that the entire distribution process is fruitful. Traditionally, Apple utilizes a very selective strategy in its distribution which ensures smooth supply of the goods and services to the end user. The company also provides specific retailers the power to take control over some marketing tools and strategies. In the distribution strategy of Apple Inc., it has availed its services and products in online stores, apple authorized stores, retailers, and offered fulfillment services. This is a strategy that has been very fruitful thus earning the company notable and big profits. Channels, Selective Apple Inc. employs the use of selective distribution models. These models have been very effective in the marketing of its products. The selective approach involves a certain degree of exclusivity that can restrict the company’s market reach and coverage. The company uses Price and Channel Strategy 3 online and non-online channels to distribute its products and services to its clients. It has been exploiting multi-channels that have been useful in increasing and improving overall sales for the company. The company has got more than 200 stores all over the United States of America (Chen & Ann, 2016). However, this is lower than other multinationals such as Coca-Cola. Nevertheless, these stores record more productive and effective per unit. It has been able to experience expansion in their retail sales per a single store which has played a major role in the expansion and promotion of the company’s revenues. Additionally, the company has partnered with a retailers who work with the stores so as to increase the sales level. Dynamic/Static Pricing Strategies Apple Inc. exploits a static pricing strategy (Chen & Ann, 2016). This is because the company’s main focus is on the delivery and production of premium products that are sold at similar prices in every market. Unlike other similar companies, Apple has standardized its prices for some products in various foreign stores. This implies that the company is focused on the premium clients. This pricing is done in an effort to influence the middle and lower class individuals. The pricing strategy includes the breaking down of the prices and the discounts offered to consumers. This strategy has put the company in the frontline in the market due to its effectiveness. Daily Pricing, Promotion Pricing Apple Inc. utilizes a premium pricing strategy which shows that the marketing elements of the company are very essential in its pricing strategies (Chen & Ann, 2016). This premium pricing approach focuses on maintaining high-end replication of the company and its products offerings. This strategy also works to attract and targets a smaller marker share which includes Price and Channel Strategy 4 the middle and upper social classes in the society. The premium pricing strategy used by Apple Inc. has helped the company in maintaining higher revenues and profits from its operations. Practically, the company does not provide any discounts through the sales direct channels. The discounting has been effected in the furnished products only. Moreover, the company maintains the reseller pricing at a stable level despite the many legislations and policies that have illegalized the setting of dealer pricing by companies. In some cases, the company has worked to ensure that the prices of the products and services are maintained at a reasonable level through implementing lower dealer margins, zero discounting and ensuring that the terms the reseller pricing are consistent with the products they offer (Khan, Alam, & Alam, 2015). Additionally, Apple Inc. has got very exclusive online and retail stores that are very attractive to the consumers. Conclusion On a conclusive note, it is crystal clear that Apple Inc. has put in place very efficient and effective strategies in its placing and pricing. These strategies have been implemented with the aim of enhancing the marketing of its products. The company has been able to effectively manage the stabilization of the retail prices. Therefore, the integration of the various channels as well as the ever growing portfolio has aided the company in ensuring successful existence and operations in this very competitive market. 5 Price and Channel Strategy References Chen, C. M., & Ann, B. Y. (2016). Efficiencies vs. importance-performance analysis for the leading smartphone brands of Apple, Samsung and HTC. Total Quality Management & Business Excellence, 27(3-4), 227-249. Heracleous, L. (2013). Quantum strategy at Apple Inc. Organizational Dynamics, 42(2), 92-99. Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), 955-961. Running Head: Brand Stategy Report pg. 1 Brand Strategy Chad J. Don MKT 571 Professor Meraj Khan August 21st, 2017 Brand Stategy Report pg. 2 Introduction Apple Inc. is one of the best performing multinationals. The company enjoys a very effective branding strategy which has kept it in the forefront. The brand has evolved and still remains to be one most consistent in the industry. This effective branding strategy remain a tool in ensuring exception consumer experiences. The objective of this report is to address the 5 elements of situational analysis within the Apple company. 1. Situational Analysis for Apple Inc. Mission Apple's vision explanation and mission statement are provide the baseline of the company’s wealth as a standout among the most important business’s in today’s business world. The Apple company was founded in 1976 in Cupertino, California. Apple Inc. has manage to expand into an image of advancement and polish in outline which are have a direct relationship to both the company’s mission and vision statements, thus, allowing Apple to keep motivating the company workers to provided assistance and add to its competitive advantage. Apple’s mission statement is the following:; “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.” (O'Grady, 2009). Vision The vision statement of Apple Inc. is very well written & detailed and reflects the company’s far-reaching method in guaranteeing product development and company growth. For example, the companys vision statement counts numerous important emphases, like, the emphasis on development, which directly corresponds with Apple's fast advancement system. 2 Brand Stategy Report pg. 3 Similarly, the vision statement determines honesty, which is an essential part of the company’s way to deal with item development and progression (O'Grady, 2009). Strategic objectives and Values Apple Inc. brand strategy aims at accomplishing its mission to maintain the products value. The company focuses on designing and producing the best quality of their products. Apple Inc. is very much involved in their supplies since the company works closely with the suppliers in assisting them to make unique products. The company also engages the suppliers at a personalized level to ensure that policies and standards of the company are maintained and observed both at the domestic and global level. The company enhances customer loyalty through improved customer support through its designed stores where customers can relax and enjoy their wide spread of products (Lüsted, 2012). 2. Strengths/Weaknesses Strengths Apple Inc. has got a significant brand image for its electronic products. The organization has got very strong and effective ethical values. This is one of the notable strengths of the company which has made it overpower its opponents. Additionally, the company has invested in hi-tech which keeps it at the forefront. Also, the company has got very effective marketing strategies which have kept its performance in the global market at its best. Apple Inc. has got very skilled and energetic workforce which is a great asset for the company (Lüsted, 2012). The organization has got a very effective management and staff who are well trained and equipped to meet the consumer needs and ensure a friendly environment in an effort to maintain its good brand image. Another strength is the large customer base which keeps it very competitive in the industry. Weaknesses 3 Brand Stategy Report pg. 4 One of the weaknesses is that the company has limited use of outside software. This means that no software programs from other products apart from Apple products that can be uploaded in an Apple product. Another weakness is that Apple Inc. products are not compatible with other carriers. This causes a lot of inconveniences to the users. Notably, counterfeit products and software usage are a weakness to the company. Recently, the number of counterfeit products have being on an increase thus posing a potental threat the company’s image (Lamb, Hair, & McDaniel, 2012). 3. Competitor's Strengths/Weaknesses Strengths One of the strengths of the competitors is that their products are compatible with other products. For instance, Samsung has got products whose parts and software programs are compatible with any other electronic. Also, competitors have come up with locally and cheap spare parts unlike Apple’s which are very expensive to acquire. Weaknesses One of the weaknesses of the competitors is the lack of continuous innovations. Another notable weakness from the competitors is the poor marketing strategies. Also, a failure to invest in technology and young talents is a weakness witnessed in Apple’s competitors. 4. Market Segments Initially, Apple Inc. considered a socio-economic segmentation base in the consumer market. This was mainly because it was concerned with the capture of the social business class so as to maintain social value. However, in the recent past, the company has been expanding its client base to the middle and lower class people. This has been achieved through designing cheap but quality products which are affordable by any member of the society (Lamb, Hair, & McDaniel, 2012).There are Apple Inc. products that are currently trading at very low prices. 4 Brand Stategy Report pg. 5 Besides, Apple Inc. has segmented its market by considering the need for geographic and demographic aspects of their locations. 5. Maintaining Brand Image Apple Inc. has introduced customer loyalty reward programs that are aimed at maintaining the image brand. Additionally, the company continues to produce quality products despite the ever changing market conditions and needs (Lamb, Hair, & McDaniel, 2012).This has greatly aided in maintaining its brand image. Technology also continues to play a vital part in maintaining the company’s brand image, whereby all the products are hitech. The online stores also continue to play a significant role in ensuring that the brand image of the company is maintained. Conclusion On a conclusive note, the company appreciates the importance of branding, placing, promotion. These strategies has kept the company competitive among its biggest competitors. Additionally, Apple Inc. has invested in innovation as part of its branding strategy thus conquering the industry in a unique manner. Technology remains an important part of the branding strategies of Apple Inc. 5 Brand Stategy Report pg. 6 References Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning. Lüsted, M. A. (2012). Apple: The company and its visionary founder, Steve Jobs. Minneapolis, MN: ABDO Pub. O'Grady, J. D. (2009). Apple Inc. Westport, Conn: Greenwood Press. 6 Marketing Plan Outline and Timeline MKT/571 Version 10 University of Phoenix Material Marketing Plan Outline and Timeline Marketing Plan You are expected to develop a marketing plan, according to the outline below, for a product or service of your choosing. The product or service must be identified by the end of Week 1. The product or service you select is used to develop the assignments for Weeks 2 through Week 6. References must be included for each section. There are no defined standards for the length of the marketing plan; however, your plan must disclose complete marketing strategies and provide reliable and valid references and data supporting the strategies to convince the target audience. The plan must be written in plain language that would be easily understood by stakeholders. Marketing Plan Outline Your final marketing plan must consist of the following sections. Refer to the timeline for due dates for each section and subsection. Assignments may include modifications to these lists. Please use lists provided in assignments only. • Executive Summary: o o o o • Situational Analysis: o o o o o o o o • Vision, Mission, Strategic objectives, Values Internal Analysis Strengths/Weaknesses Capability/Capacity Competitor’s Strengths/Weaknesses Technological Competency Product or Service Analysis Market Segments Research o o o o o o o o o o o • Strategic Objectives Products or Services Resources Needed Projected Outcomes Primary Research Secondary Research Consumer Analysis Customer Profile Continuous Consumer Monitoring & Research Environmental Scanning Identify Market, Economic, Technological, Regulatory, Legal, Social, and Ecological Forces Current Opportunities Potential Future Opportunities Current Threats Potential Future Threat Target Market(s): Copyright © 2017 by University of Phoenix. All rights reserved. 1 Marketing Plan Outline and Timeline MKT/571 Version 10 o o o o o • Demographics Psychographics Ethical Issues Legal Issues Social Issues Product, Place/Distribution, Promotion, and Price Strategies: o o o o o o o o o o o o o o o o o Product Descriptions and Product/Service Mix Strategies Product/Service Determinants Creating a Brand Image Maintaining Brand Image Branding Concerns Distribution Strategies Channels, Mass, Selective, Exclusive Promotion/Integrated Marketing Communication Advertising Strategy/Objectives Push and Pull Media Strategy Advertising Execution Sales Promotion Direct Marketing Public Relations/Strategies Positioning Dynamic/Static Pricing Strategies Marketing Plan Timeline Week 1: Marketing Plan Topic • Consider your company and product or service selection in Week 1. You may select an existing type of product or service or a new product or service but it must be global or multi-regional. Once you have selected your product or service, you must define the size and type of company that provides the product or service (available from annual reports). This need not be elaborate but must include total number of employees, production volume, distribution methods, and so forth. Company and product or service selection is a critical part of this project. You must ensure your proposed company can implement the marketing methods discussed in the text. • Key to creating an effective marketing plan is the ability to analyze the environment in which the product or service will be offered. The Week 1 assignment allows you to begin to understand various reports and how they can be used in your marketing plan. Week 2: Understanding Target Markets • To develop effective relationship marketing, a company must first understand its targeted consumers’ buying influences and behaviors. In Week 2, create the Research section of your plan. In addition, create the first two parts of the Target Market section, which includes performing the demographics and psychographics analysis. Week 3: Promotion and the product life cycle • All products/services go through a life cycle of NPI (new product introduction), growth, maturity and decline. These various stages affect the marketing strategy and promotional efforts. In Week 3, you will incorporate a promotion strategy that addresses at least three areas of the product life Copyright © 2017 by University of Phoenix. All rights reserved. 2 Marketing Plan Outline and Timeline MKT/571 Version 10 cycle. Week 4: Price and Channel Strategy • How one goes to market and the influences of the channel (channel power, strength of channel, speed of channel, etc.) affects the pricing strategy of the product or service. In Week 4 your pricing and distribution strategy will be incorporated into the marketing plan. Week 5: Marketing Communication and Brand Strategy • Brand strategy and the communication of the brand is essential to understanding the various phases of a product or service (viz a viz the life cycle). Brand recognition is based in the marketing communication efforts of the firm. When you hear or see the word Coke, you immediately know it is Coca Cola. When you see five interlocking rings of different colors you know that is the symbol for the Olympics. In Week 5, you will develop a brand and communication strategy for your product. Week 6: Executive Summary, Legal, Social and Ethical Issues, Final Plan • Review your final plan. Does the plan effectively analyze market strategies? Are the social, ethical, and legal considerations valid and accounted for? What is the relationship among quality, price, satisfaction, and perceived value within the plan? Copyright © 2017 by University of Phoenix. All rights reserved. 3 
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