The BMW Company’s Marketing Excellence

Cite this

Consumer-Buying Processes

Effective buying requires that consumers carefully consider their needs and how to meet them. Five steps comprise the consumer decision-making procedure: problem identification, information search, evaluating alternatives, purchasing decisions, and after-purchase action (Qazzafi, 2019). In the instance of an automobile, problem recognition occurs when individuals recognize their need for a convenient personal vehicle. After identifying a requirement, an individual begins gathering knowledge about the many types of automobiles accessible. Scholars classify customers’ data sets into four categories: personal, financial, public, and experiential (Qazzafi, 2019). BMW uses all the above categories to aid in the purchase decision-making process. First, 83-85% of its customers in the United States would unquestionably suggest their car to others (BMW Group, 2017). Second, promotional activities and the company’s official website are utilized to emphasize all of the company’s advantages. Third, from 2009 to 2010, BMW automobiles were ranked top in recognized customer satisfaction surveys, including ADAC and J.D. Power (BMW Group, 2017). Fourth, guests can take a test drive at BMW’s various outlets.

The consumer then assesses different proposals, comparing autos based on functions, fuel economy, design, and pricing. Additionally, current clients are cautious about the ecological impact of their automobiles. BMW addresses this challenge by drastically decreasing CO2 emissions in all new vehicles and researching alternative driving systems (BMW Group, 2017). By 2013, many will have the chance to buy an ecologically friendly BMW (BMW Group, 2017). The buying decision is made if the customer determines that a BMW qualifies to be their first choice. However, it is susceptible to being impacted by unforeseen occurrences. Customers may obtain information about a lower-priced competitor vehicle and decide to purchase it, or their own financial condition may deteriorate, forcing them to delay or cancel the purchase. While such events are outside the business’ control, their consequences can be reduced, for example, by offering the option to buy on credit.

Application of Data Analysis at BMW

Because of the pervasiveness of new technologies in business, services, and life in general, an emergent, data-driven economy has sprung up, encompassing many facets of human personality and company activity. Big data refers to a set of massive, complicated datasets from various sources that are challenging to analyze using typical data monitoring and processing software (Huang et al., 2017). At BMW, data analytics can play a crucial role in customer analysis. This process would entail collecting data on customers’ favorite cars to understand the level of demand. The company would also gather information on the buying trends, such as the time of the year most cars are bought and the specifics used during the consumer-buying process (Huang et al., 2017). With these details, BMW can capitalize on the models with higher demand and include the specific elements needed in cars, as observed through the purchase decisions’ analysis.

Target Marketing and Segmentation

BMW has segmented its market into various distinct groups in the case presented. BMW manufactures a comprehensive line of automobiles, including the 1, 3, 5, 6, 7, X, and M series, the Z4 Roadster, hybrids, and the BMWi (Kotler & Keller, 2016). BMW focuses on customers in the upper-middle-class or middle age demographics, knowing that such customers are likely to purchase and enjoy the products and services BMW delivers. BMW segments its market depending on demographic characteristics. The company could improve by providing cars within the common market price range and catering for even the average-income earners.

Situational analysis

PEST Analysis

  1. Political: Operating in different companies requires the company to adapt to the different political influences. Many political issues and conflicts have a direct impact on BMW’s operations. Political instability, such as what has been witnessed in Russia and Brazil, reduced BMW’s revenue due to reduced purchasing power (BMW Group, 2017). In addition, the company has to follow the government’s rules on waste disposal and business operation permits.
  2. Economic: As the global economy changes, the company has to adjust its operations. Competition with companies such as Toyota and Hyundai affects the company’s marketing strategies. Global economic crises, such as recessions and pandemics, limit the company’s operations. BMW Group (2017) reports that high tariffs set by the U.S. force the company to pay an extra 10% tariff for products manufactured in the U.S. Essentially, the company’s revenue is dependent on the prevailing economic states of the various countries within which it operates.
  3. Social-cultural: Operating in various settings requires sensitivity to the cultural practices of the communities. Before venturing into any market, BMW researches the people’s culture and social trends to determine its marketing strategies and products needed.
  4. Technology: changes in technology require the company to include the latest technological solutions to increase its competitiveness. BMW’s vehicles incorporate revolutionary technologies such as driverless vehicles, automated parking, as well as hybrid electric vehicles (BMW Group, 2017). These innovations have enabled the company to remain relevant in the market.

SWOT Analysis

  1. Strengths: BMW has benefited largely from its various operation strengths, such as having a variety of products from which consumers can choose. This has allowed the company to reach all categories of customers (Kotler & Keller, 2016). It has also invested largely in research and technology, offering high-quality vehicles and enhancing its competitiveness. Operating in various geographical locations has given the company stable revenue growth and promoted global partnerships.
  2. Weaknesses: Every company has some weak points in its production and operating methods. BMW has failed by having cars targeting the middle class and having relatively high-price ranges in comparison to its competitors (Qazzafi, 2019). Many young people are likely to buy from other companies since they cannot afford BMW’s products.
  3. Opportunities: BMW has an opportunity to increase its relevance in the market and reach a wider customer base. This can be done by changing its target market and focusing on products that will meet all lifestyle and generational needs (Kotler & Keller, 2016). This strategy will grow the company’s market and increase its revenue. As the demand for autonomous cars is expected to rise in the near future, the company has an opportunity to expand its operations and generate higher revenues.
  4. Threats: Stiff competition in the automotive sector is a major threat to the company. Companies such as Toyota and Hyundai are rising fast in the industry, seeking to take over some of BMW’s markets (BMW Group, 2017). To maintain its position, the company has to provide better services and innovate, or else it may be thrown out of the market. In addition, different governments globally have developed new regulations that increase the automotive companies operating costs. This poses a potential threat because the company has to adhere to the set rules or be barred from operating in certain countries. Through its investments in the MINI and Rolls Royce brands, BMW has concentrated its trade in the luxury and ultra-premium sectors (Kotler & Keller, 2016). If market forces have an influence on these categories, it will have a detrimental impact on a major portion of BMW’s current product offers.

Problem Identification

BMW’s premium vehicles have kept very high standards for the automobile sector that the company is now having difficulties developing new ideas and technologies for its global market. Technological developments are key to the marketing mix as clients today desire better quality than what their competitors can deliver (Pauwels et al., 2018). Due to this development challenge, project management issues have arisen, as each project now demands modification to strategize it in accordance with the inventive wants of clients.

In addition, BMW’s plan to introduce new technologies and guarantee regular innovation has created many problems for the corporation itself. Alternative products necessitate a company’s transition away from its primary production unit and into alternative options that may increase the company’s supporter base (Kotler & Keller, 2016). BMW’s target market is those seeking high-quality autonomous vehicles, mostly comprised of high-income earners (Pauwels et al., 2018). Additionally, BMW aims to assist entrepreneurs worldwide in becoming a part of its distribution network, which has been quite difficult on a global scale.


After emphasizing the main issues that BMW has to solve to maintain its market share and brand, below are the solutions that BMW could employ to facilitate an easy confrontation with the problems identified in the globalized world. While none of the ideas are certain to resolve the dilemma of such a large and global automobile company, they may prove beneficial in easing its execution of international policies and plans in developing markets. First, the company should invest in more research through big data analytics to identify gaps in the market and realign its manufacturing process accordingly. Big data will enable the company to understand where it is failing to meet customer needs and what should be done (Huang et al., 2017). Second, the company should now shift its focus from the upper class to middle and low-income earners. This strategy will enable it to reach a wider market and diversify its income. Third, BMW should invest in the production of many different car models, and lastly, it should venture into developing countries since there is a potential market due to high population growth.


From the four solutions outlined above, two could be most beneficial for BMW’s strategic market. One, the use of big data in market analysis through the identification of consumer trends cannot be undervalued. According to Huang et al. (2017), the future of business depends on how well companies will utilize big data analytics. The company can only adjust its processes after a clear picture of the market. Traditional data analysis methods have fallen short of their ability to evaluate large volumes of data. Being a global company and one of the top-rated automobile companies, BMW has a lot of data to analyze, which cannot be done without AI and Big Data techniques. Two, the company should apply its technological tools to develop new products for its target markets. Pauwels et al. (2018) argue that the continuous development of new products in the automobile industry is crucial to maintaining market relevance. Essentially, the company can solve its main problems and increase its customer base by capitalizing on available technologies and investing in new product designs.


BMW Group. (2017). BMW Group Investor Presentation.

Huang, S. C., McIntosh, S., Sobolevsky, S., & Hung, P. C. (2017). Big data analytics and business intelligence in industry. Information Systems Frontiers, 19(6), 1229-1232.

Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson.

Pauwels, K., Silva-Risso, J., Srinivasan, S., & Hanssens, D. (2018). New products, sales promotions, and firm value: The case of the automobile industry. Long-Term Impact of Marketing, 68(4) 287-324.

Qazzafi, S. H. E. I. K. H. (2019). Consumer buying decision process toward products. International Journal of Scientific Research and Engineering Development, 2(5), 130-134.

Cite this paper

Select style


BusinessEssay. (2023, March 2). The BMW Company's Marketing Excellence. Retrieved from


BusinessEssay. (2023, March 2). The BMW Company's Marketing Excellence.

Work Cited

"The BMW Company's Marketing Excellence." BusinessEssay, 2 Mar. 2023,


BusinessEssay. (2023) 'The BMW Company's Marketing Excellence'. 2 March.


BusinessEssay. 2023. "The BMW Company's Marketing Excellence." March 2, 2023.

1. BusinessEssay. "The BMW Company's Marketing Excellence." March 2, 2023.


BusinessEssay. "The BMW Company's Marketing Excellence." March 2, 2023.