INTRODUCTION

An increasingly complex structure would probably best describe the make up of

the automobile industry. As the time demands constant change, the automobile industry
players have innovated on all the aspects of their business, particularly in production, to cope
up with the demands of the steadily growing market worldwide (2003). Innovations take
place within the framework of the industry, and the continuous decentralization of
management structures and the strategy of diversification of output helped the industry in
fostering a strong front in the face of economic crises. With the evolution of cars come
sizeable changes in how the industry is run. In particular, Bavarian Motor Works (BMW), an
independent German company and manufacturer of automobiles and motorcycle sets a new
level of innovation of the BMW cars –the BMW 3 series. 

According to their Annual Report (2005), the 3 Series is BMW's best selling
automobile. Thus, almost 40% of all automobiles sold by the company in 2005 was comprises
of it.

On the other hand, the new BMW 3 Series Sedan sets the standards for its class.
From its stunning good looks to its state-of-the-art power plants, the new 3 Series Sedan is
100% BMW. The new transmission systems and sports-tuned suspension deliver unmatched
levels of agility, responsiveness and handling excellence. And inside the spacious cabin,
there's even more of the renowned BMW elegance and style. The new BMW 3 Series Sedan:
a new passion for driving.

MARKETING MIX (7P’S)

Product Development

The main products of the BMW are luxury automobiles and motorcycles, which
were distributed worldwide. These products will be available for the customers who want top-
quality and branded cars and those who wanted to fulfill their hobby (e.g. car collection). On
the other hand, the company also offered variety of products like the BMW 3 Series which
was an entry-level luxury car/compact executive car manufactured by BMW since May 1975.
It was modeled to their 2002 coupe, but added a more powerful 2.0 L 110 hp (82 kW) engine
and other performance augmentations. Actually, the 3 Series was the smallest car line
manufactured by BMW (exempting the BMW-owned MINI) before the release of the BMW 1
Series in 2004.
 The products are different in other competition in a way that the company
maximizes quality.  Through the use of demographics and psychographics, all needs and
demands of target market will be known by the company in order to provide the customers in
the utmost time. The products are available at the BMW outlets worldwide.  And other
consumers can avail the car products using the on-line marketing store, which provides all the
product lines by contacting the outlets near the location of the customers.

Distribution/Place

To be known in the market place, the product was distributed directly to its clients
and customers.  And to be known internationally, one of the strategies that BMW utilizes is
on high-powered engine vehicles and innovation of car series (i.e. BMW 1 series, BMW 3
series, motorcycles).  The company also find other car enhancements to be known globally.    

Price

One of the advantages of the company is when it comes to its pricing tactic.   In
order to be known into the market place, the company provides its target market with a
competitive cost that corresponds to their high quality products and services.  The company
gives the customer and client a price that is enough and matches the quality of their products.

Promotion

To promote the company and its product (BMW 3 series), the BMW uses video
advertisements, print advertisements and the concept of e-marketing. These promotion and
communication strategy tend to meet the consumers from different places everywhere,
especially those target markets or the consumers in the working place.  Moreover, since the
trend in the market place today is the usage of e-marketing, the company provided a website
that any client can access.  The use of the Internet is changing high-tech marketing overnight
while different industries have been trying to use it as part of their marketing strategy. It does
not only reconfigured the way different firms do business and the way the consumers buy
goods and services but it also become instrumental in transforming the value chain from
manufacturers to retailers to consumers, creating a new retail distribution channel (1999). E
marketing is a powerful tool used by different business organizations around the world. It is
defined as the process of achieving marketing objectives through the use of electronic
communications technology.  (2001) have provided a 5Ss’ mnemonic for how the internet can
be applied by all business firms for different e-marketing tactics.  These 5S’s are selling,
serve, speak, save and sizzle.

People

The world’s automotive industry particularly the BMW affects the society as a
whole. It employs millions of people directly, tens of millions indirectly. Its products have
transformed society; bringing undreamed-of levels of mobility, changing the ways people live
and work. The social value of the additional mobility that this industry brings involves the
value of the people being able to commute over longer distances easily, among many others.
For most of its existence the motor industry has been a model of social discipline and control
and it is not just that the auto sector offers a ‘pillar’ of something else. There are, on the other
hand, particular social issues to address in many developing countries, often those that are the
result of an undertone of religious faith. The automotive industry has the role to play in
helping develop the mobility of such countries and it can be achieved at an acceptable social
cost of the country is prepared to learn the necessary lessons from those who have traveled
this route before it, and to make the necessary investments.

Process

As stated, BMW uses several of marketing strategies to sell their car products (i.e.
through TV advertisement, billboards, tours, and internet/e-marketing).  E-marketing is also
known to be the online marketing strategy utilized by BMW whose objective is to be the best
company in their field.  Thus, the BMW created its own website (). The main objective of
utilizing e-marketing strategy is to keep in touch to different internet users to be able to attract
more clients and traveler’s. All in all, through the website, whether the user is a customer,
employee, stockholders, vendors, retailers or end customers, the true strength of e-marketing
is acceleration of the business portfolio.

 
Physical Evidence

            The BMW works on a scale so awesome and has an influence so vast that it is often
difficult to see. The level and diversity of technologies that it must deploy are increasing,
which imposes both new investment burdens and new uncertainties and risks. Roughly a
million new cars and trucks are built around the world each week – they are easily the most
complex products of their kind to be mass-produced in such volumes. The industry uses
manufacturing technology that is the cutting edge of science. But still, the potential for
developing coordination skills, intellectual capabilities and emotional sensitivities through
electronic technologies remain far from fully exploited. There are numerous additional near-
term technological opportunities to adapt the automobile to changing energy availability. The
possibilities suggest that BMW technology is unexpectedly robust and provides a powerful
defense against energy starvation even if the real price of oil climbs steadily during the next
couple of decades.

           

Marketing Mix Recommendations

From the discussion, BMW is subject to numerous technical directives and

regulations, as well as legislation of a more legal nature. The legislation covers areas such as
competition law, intellectual property law, consumer protection and taxation, and emissions
(air quality and fuels). When the auto parts industry reached full development, accelerated
technological efforts were made to create a web of local suppliers that would make it possible
to meet the growing legal requirements for the national integration of production.

Other than the vehicles themselves, and the roads and fuel needed to run them; the
business is intricately tied to the manufacture of a wide range of components and the
extraction of precious raw materials. Indirectly, it brings people road congestion, too many
fatalities and a wave of other environmental troubles. The effect to the BMW are that they
needed to establish R&D centres to take advantage of research infrastructure and human
capital, so that they can develop vehicle products locally to satisfy the requirements of the
environmental and safety regulations more effectively.

 
Business Products

(1982) observed that the automotive industry has been depended upon by other
industrial sectors to provide them with means with which to optimise their investment capital
because of the transfer of its technology, which basically means that the manufacturing and
materials handling processes that revolve around mass auto production will be, in the future,
far removed from their original use through consulting engineering firms that undertake to
design and equip factories. The tendency for car manufacturers like BMW, then, will be to
focus on competition that would become more rigorous, giving special attention to profit-
gaining activities and concentrating also on arranging for financial, marketing and industrial
cooperation among car makers.

            The growing pressures of the global economy, as an example the 1998 ‘merger-of-
equals’ by the old Chrysler Corporation with German automaker Daimler-Benz, could result
in the profound consolidation of car manufacturer giants. In 2003, a prominent industry
insider has predicted that it would all just boil down to three to four auto giants within 10
years ( 1995). Last year, a survey of auto executives revealed that 51% of them believe that
the world will witness major consolidations in the field, up from 35% during the 2004 survey
of the same issue. The greatest area for growth according to (2003) is to be found in the
emerging auto markets of Asia and Eastern Europe. At the same time, the targets market
volume is still to be found in Western Europe, Japan and North America (2005). To that end,
perhaps the rest of the world should hold its breath in the anticipation of what might transpire
in this industry where innovation is first and foremost, the competitive edge.

 
International Marketing

BMW has several core competencies, which they could utilize to further gain advantage over
their competitors, and if possible, overtake General Motors in its market leadership in the
automotive industry. One core competency of the company is their brand management. The
strength of their automotive marketing has been such that their brand is known even in the
parts of the world where cars are not the common medium of transportation. Another core
competency is their supply chain management, which links to their ability to maintain a
steady stream of raw materials coming in for production because of their long-term good
standing with their steel, glass, plastic and other raw materials supplier. Their highly
coordinated logistics system handled by outsourced firms also form part of their core
competencies, leading to excellent inventory management and always on schedule production
activities. Another marked advantage is their ability at the moving assembly line. Being the
pioneer of such mass production system, they were able to get ahead of the competitors
manufacturing processes-wise and were also able to save on costs and time. Yet another
advantage is BMW’s focusing on its product development technology under a single product-
information-management program through standardising and incorporating them. If
sustainable development is to achieve its potential, it must be integrated into the planning and
measurement systems of business enterprises. And for that to happen, the concept must be
articulated in terms that are familiar to business leaders. Many observers believe that more
stakeholders -- investors, consumers, nongovernmental organisations and others -- will insist
that companies to take environmental and social costs as seriously as they take purely
financial costs. In addition, investors are expected to increasingly seek out sustainable
companies and avoid firms with poor environmental performance, judging the sustainable
companies as better risks over the long term. Likewise, consumers are expected to search for
products that perform well environmentally. In addition, the e-marketing procedures
employed by BMW will possibly boost their advantage in international market since they
have the capabilities to innovate branded cars (e.g. BMW 3 series).