Introduction
Advertising and promotional strategies are usually meant to communicate ideas about the products and services of a company to potential consumers. The main aim of this is to attract more customers and potential customers from the competitors’ side. Advertising and promotional strategies of a company reflect the rationale of the business such as brand recognition efforts, objectives, and market share growth. Therefore the advertising and promotional strategy determine the character of the company in the public image (Colley, 1984). Today, advertising and promotional strategies focus on achieving three main goals. The first is to stimulate sales and attract the customers of the competitors. The second goal is to correct and establish the image of the business. The third goal is to promote awareness of the business and the products they sell.
The promotional and advertising strategies in the automobile industry have changed over time. Each company strives to be at the top of the market supply chain. Consistent marketing policy assists these companies to have a niche of customers who are loyal to their products. This paper will discuss and compare the advertising and promotional strategies of BMW and Mercedes Automobile Company. The first section shall briefly outline the individual marketing policies for each company and the second section shall outline the possible market solution strategies for companies with similar products as BMW and Mercedes.
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Comparison and contrast the promotional strategies used by BMW and Mercedes
Financial considerations are usually the key to consumer investment in automobiles. Also, consumers are concerned with the quality that they receive for their money. A car that breaks down regularly not only costs money to repair but can cause severe inconvenience to its owner. For example in the United States, cars make statements regarding the owners’ status. Certain persons are interested in owning cars that cost a lot of money because they expect others to see them as being better in a higher social class. On the other hand, driving less expensive cars makes certain people view others as poor or of a lesser social class than if they drove expensive cars. For others, luxury is beyond what they are looking for, people want to invest money in what is useful and fit for the purpose for which they are bought. It is therefore clear that people buy cars for their own reasons and understanding these complex needs is key for any Automobile company.
BMW has attributed its success to a dynamic marketing policy to its consumers. The brand of the company is built on four core values, technology, quality, performance, and Exclusivity. These values have been maintained and improved from time to time. BMW was founded in 1916 and produces a range of sporty cars and motorcycles. The company also operates an aircraft engine division under the Rolls Royce brand. The company has manufacturing plants in countries such as Germany, the UK, the USA, Brazil, South Africa, Egypt, Malaysia just to name a few.
BMW has utilized online ads to sell its products. The company’s website is characterized by flashy slide images of its products, contacts of its suppliers, animations, and videos. All this appears in very appealing colors attracting the viewer to research more than the product and even purchase them. For the company, its brand is its marketing symbol. The company is clear about the customers that it targets. It has avoided having a high volume of middle-priced vehicles. It has established a distinctive brand in the global market. The company, however, experiments with new models while at the same time maintaining its brand. For instance, the company introduced a Sedan model in the first year, a station wagon, a convertible, and later a sports hatchback (Glowa, 2002). The company tries to rebrand its products through the inclusion of new features and fittings. The introduction of new models is primarily associated with an increase in sales. In other words, the company is constantly keeping up with the marketing scenario.
As one of the major competitors of BMW, the Mercedes-Benz from the DaimlerChrysler has from time immemorial relied on its brand name for sale. The model has also relied on its technological leadership, safety strategies, luxurious product range, and global presence. This model is unique and none compared to any other in the automobile industry. The model is classy and targets the well off in society. In 2000, the company sold over 1, 155,000 units of the model resulting in 43.7 Billion Euros revenue. The promotional and advertising strategies of the model are based on innovativeness and the power of the internet. Mercedes has changed its reliance on the brand name as a marketing strategy due to competition for other models like BMW.
The global marketing strategies of Mercedes-Benz are focused on the political regulations and domestic industrial policies in each country. Then the company formulates its marketing strategies in line with these regulations and policies. The company focuses on remaining profitable and enhancement of long-term values even in volatile circumstances. The strategies are based on the pillars of profitability, shaping the future, growth, and access to customers, and technological advancement. Also, the strategies have been formulated to focus on the safety of the customers in the auto market.
Annual Mercedes allocates 25 percent of its annual revenue to the marketing budget. The brand is focused on the energetic side of Mercedes, approachable and more fun. The luxury promotional and advertising strategy of Mercedes did not last for long. The company had to change this strategy and focus on safety rather than luxury. The company noted the change in consumer priorities. Recent global concerns on climate change have advocated against automobiles that cause environmental pollution. Mercedes focused on the production of eco-friendly, hybrid cars.
Mercedes can reach its customers through digital and social media. Social media avenues such as YouTube, Facebook, Instagram target the younger generation to invests in its products. The social media ads are usually accompanied by a content piece such as a video to create a viral response. Through the feedback from such platforms, the company can tell what the needs of its consumers and potential ones need. For instance, the Generation Benz campaign in 2010 targeted young people between the ages of 20 to 39. In the campaign buyer habits and preferences were identified, which helped to produce a customer profile for Mercedes.
Two (2) ways in which a company within the Automobile group could use marketing information to differentiate itself in the marketplace to gain an advantage over its competitors.
From the above analysis of the promotional and advertising of Mercedes and BMW, it is clear that marketing plays a major role in influencing consumer buying behavior. The first recommendation to a company with a similar product is the investment in Internet advertising and promotion. In this century the primary source of information for consumers on the internet. A wide range of information exists that may mislead a potential customer. The company can, therefore, invest in a website that produces factual information. The website should be accompanied with images and content videos for the consumers. Social media is another way of investing in Internet advertising and promotion. This works especially if the company is targeting young persons. Both BMW and Mercedes use social media as a way to conduct market research and sell their products.
Another strategy is through the introduction of new models into the market. Consumers are attracted by what is classy and trendy. New technologically enhanced models will attract more consumers to invest in the product. New Models such as the hybrid range of cars that contribute to environmental conservation are being embraced globally.
Determine the most effective advertising medium for a company in the selected product category.
Technology has been the primary marketing strategy for BMW. The company has made maximum use of the internet by ensuring all its consumers and potential ones have access to information for the different products. Through the web-based advertisement, the consumers can conduct their own initial research and make a final decision on the purchase. It is, therefore, convenient for shoppers since BMW adds a link to films that showcase their products. Another advertisement strategy is the use of films to advertise their work. Famous films such as the James Bond movies have a variety of BMW products; the films mostly target male consumers who fancy sporty automobiles. This strategy has distinguished BMW from its competitors and attracted more consumers. BMWFilms.com is a good example of blurring the lines between entertainment and advertising. The site combines Hollywood’s intense car chase scenes and Internet video to deliver a new spin on product showcasing.
The introduction of new models and products is another advertising and promotional strategy for Mercedes. When a new product is introduced, the price is usually lowered to attract more customers. The size and styling of the vehicle have also influenced its marketing strategies. The main vision for Mercedes Benz has always been understanding the needs of its consumers since sometimes the consumer is interested in more than just having a car that will enable them to move from one point to another. Their focus is ensuring that the consumer himself will be a marketing tool for them for instance convince his friends to buy the vehicle. It is for this reason that Mercedes-Benz looks beyond its brand name to appeal to the younger generation through the remodeling of its vehicle. The prices are also very subsidized to allow not only the well established but the young and people from different social classes.
Two (2) uses for consumer-oriented promotions that could assist a company in both the short and long term for the product group that you selected. Provide a rationale for your response.
Every company is supposed to tailor-make its products to suit the needs of consumers. One way of a consumer-oriented promotion is through the conduction of market research. Market research help identifies consumers with financial needs and preferences. It is especially helpful in the introduction of new models. For example, in 2010, the Generation Benz campaign by Mercedes conducted on social media identified consumer preferences and demographics (Mas Bambang et al., 2012). Another strategy is through market segmentation. This is when the company targets a particular age of consumers of its products. Generation Benz targeted young people between 20 and 39.
Analysis of the strategic manner in which Mercedes has made its pricing decisions by using one or more of the four (4) pricing objectives. Suggest two (2) actions that other companies within the same product group may take in or differentiate themselves and gain a competitive advantage. Provide a rationale for your response
Mercedes-Benz used a combination of price and product along with the social and digital plan. Through creativity and use ofthe the media, the company was able to reach young consumers. Mercedez was able to reach a target of,800 since the product appealed to the younger generation and this was a success since they were the targeted consumers (Learning, 2010).
The most effective advertising medium for a BMW. Support your response with two (2) examples of the effectiveness of the chosen medium.
The most effective medium for BMW is through the use of BMW films. The model is showcased in different films which display the flexibility, speed of the different BMW models. For example in the film Hire, the prowess of the driver together with the flexibility of the car is shown in every episode. In the movie, one can see the variety of BMW cars that are chase cars. Such movies are usually targeted to the male and young audience. Short films in the BMW website found on social media sites such as Facebook, Tube have contributed effectively to its advertisement strategies (Abraham & Leonard, 1990).
References.
Mas Bambang B, Muhammad M. B. A. & Hooi L W (2012). Hybrid Strategy: A New Strategy for Competitive Advantage. International Journal of Business and Management; Vol. 7, No. 20.
Glowa, T (2002). White Paper: Advertising Process Models. Tim Glowa Foundation.
Colley, R. H., (1984). Defining Advertising Goals for Measured Advertising Results. Association for National Advertisers, New York, NY
Learning, D. A. (2010). Hybrid Strategy: Sustainable competitive advantage.
Abraham, M & Leonard L (1990). Getting the Most out of Advertising and
Promotion”, Harvard Business Review, May – June.

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