MARKETING OF SERVICES6
Peterson (2011) defines marketing planning as the process by which companies outline comprehensive marketing efforts. It shows strategies and tactics the company use in marketing. It ensures better development of products and services that meet the targeted market needs. Good marketing planning helps the customer understand the goods and services of the company, why they are different or better than competing products or services (Peterson, 2011 p. 54).
Offerings are all the products and services a company or business provides to the customers. Offerings include elements that give additional value to the products of the enterprise. Such other benefits may include availability, convenient and free delivery, and quality of services (Peterson, 2011 p. 48). On the other hand, a brand is a set of perceptions and images that represent a company product or service. It enables the buyer to quickly, identify products and services offered by a corporation. It gives the platform offering different products by a company generating awareness of its product in the market.
Target market positioning is a process by which a company creates an image of its product in the minds of the targeted consumers. On the other hand, target market segmentation is the process by which company produces groups of markets within a large market to bring together users with similar needs and interests. The consumers get the first impression of the product through the positioning (Peterson, 2011 p. 58).
Competition in marketing is the rivalry among businesses selling homogenous products and services with the objective of making Profit, and increasing market share.
Peterson(2011) outlines the following ways by which consumers make purchasingdecisions
Economic the consumer wants to get maximum benefit at a minimum cost
Psychological when a consumer has a need and drive towards an individual product or service, they purchase the one they expect to give an experience that is more satisfying (Peterson, 2011 p. 76).
The sociological factors culture, social groups among other social amenities influences a personal purchasing decision.
Accordingto Peterson (2011), model of consumer behavior has five importantsteps:
Need recognition the consumer identifies that he needs a particular product or service.
Information search upon determining the need, the consumer embark in seeking information about the product (Peterson, 2011 p. 102).
Evaluation of alternatives once the consumer collects information about the product, he evaluates different options offered to him. This assessment helps in choosing the product that is best for him.
Purchase decision after evaluating different products and deciding the one appropriate to his needs, the consumer proceeds to buy the product. His decision depends on the information, value, features of the product and his financial capability (Peterson, 2011 p. 102).
Post-purchase behavior after purchasing the product, the consumer evaluates the adequacy with his original needs. He may feel satisfied or disappointed depending on whether the product met his needs and this will influence his future decision on whether to buy the product or not.
It creates the capacity to venture into unexploited segments.
There is a better focus on consumer requirements.
Ability to respond to consumer needs through a robust customer service.
Customers benefit from various product customization styles and design.
It helps to assess the value of diverse market segments.
It also helps in identifying prospective customers by targeting particular individuals or groups.
It ignores other groups of customers since car manufacturing is for only specified segments of the society.
It limits the prospect to venture into other areas.
Concentrating on one strategy inhibits the ability to apply another marketing strategy.
The approach provided a small locale of viable differentiation.
Thefirm has done well in advertising over years in reaching the targetcustomers. This move has made the U.S. sales to grow tremendouslyfrom 1500 units in 1974 to about 250,000 in 2009. However, it needsto change its tagline. This may help in further growth of the sales.
Yes,BMW’s segmentation strategy was too selective. The company hadalready identified and classified its customers depending on theirgeographical location, income status, customer loyalty, behaviors,and lifestyle. It involves identifying, defining and subdividing amarket with similar characteristics into particular segments withanalogous needs, wants, and demand features (The Boston Chapter ofthe BMW Car Club of America, 2016 p. 3).
Income level – this is classification based on the degree of revenue. The perception here is that BMW 730i target the wealthy upper conservatives who dislike sportier cars.
Lifecycle stage – grouping of consumers depend on the stage of life of the consumer.
Family size – the size of the household identifies this group.
Social class – includes a consumer group based on occupation. The BMW 730i targeted the working professionals who needed a car with exceptional performance.
Lifestyle – Involves classifying people depending on their beliefs, values, interests, and opinions. The target group for the car was traditional consumers who disliked sportier cars (The Boston Chapter of the BMW Car Club of America, 2016 p. 4).
Peterson,R.A., 2011. MarketingStrategy.Chichester: Wiley.
TheBoston Chapter of the BMW Car Club of America – Boston Chapter BMWCCA [online], 2016. [Online]. The Boston Chapter of the BMW Car Clubof America – Boston Chapter BMW CCA. Retrieved from:http://www.boston-bmwcca.org/