1. M3 MARKETING PLAN
BMW
Doug Livengood
MKTG 201: Principles of Marketing
Professor A. Freed
Term Date- Fall 2010 Late Start

2. A. Brief Company
Background
 BMW or Bayerische Motoren Werke was founded in
Germany in 1908 as a stock corporation that built aircraft
engines
 Currently has markets in over 150 countries and averages $50
billion in revenue every year
 Mission Statement: “With the three brands, BMW, MINI
and Rolls-Royce Motor Cars, the BMW Group has its
sights set firmly on the premium sector of the
international automobile market. From research and
development to sales and marketing, BMW Group is
committed to the very highest in quality for all its
products and services.”

3. B. Product Description
 High performance sports car with a very powerful engine and superior
handling
 Fastest car made by BMW
 Powered by 4.0 Liter V8 with 414 horsepower
 Can reach 60 mph in 4.1 seconds
 Marketing Opportunity Strategy: Product Development
 BMW offers “BMW Individual”, same market, same product just
changed to meet customer needs
C. The Marketing Concept
 Implement Marketing Concept through:
 Customizable Cars
 Quality as a top priority
 12 year warranty on body work and 2 year warranty on BMW parts
regardless of mileage
 All authorized BMW dealers have professionally trained mechanics

4. D. SWOT Analysis
Strengths: Weaknesses:
Long Product History (22 years) High Maintenance Costs
Can be sold for large amounts High price tag might lose
of money customers
Opportunities: Threats:
Competitive in the racing world Lots of Competition
E. Product Mix: BMW makes cars, SUVs and Motorcycles
II. Product Description
A.

5. B. Product Uses, Features and Benefits
 Uses: The BMW M3 is a street legal car that has all
the characteristics of race/track car
 Feature: Benefit:
 414 horsepower engine fun to drive
 16 loudspeakers excellent sound quality
 M Drive System allows you to adjust how the car
drives
 Onboard Navigation easier to find directions
 Voice Command safer driving rather than using
cell phone
C. Product Type: The M3 is a good because it is
tangible
D. Product Class: The M3 is a specialty good
because it is a high end, expensive luxury sports car
and people would be willing to search for it.

6. E. Product Line
 The M3 is a part of the BMW M product line
 The M series includes top end high performance
luxury cars that are made to be fast, have good
handling, and lots of horsepower
 The BMW M line includes the M3 convertible, M3
coupe, M3 sedan, M6 convertible, M6 coupe, X5
M, and the X6 M

7. F. Product Life Cycle
 The BMW M3 is a part of the broad generic group of
luxury and high performance cars
 Luxury and high performance cars are in the
Maturity stage of the product life cycle there is:
 Intense competition
 Lower prices
 “New and Improved” Products
G. Branding Pyramid:
 Brand insistent/ brand loyal product
 Recognized as one of the best sports cars out there
 People would be willing to search for this specific car
H. New Product?
 No the M3 has been around for over 20 years

8. III. Target Market for Product
A. Segments
B. PSSP Needs:
 Personal- fun to drive and self esteem- very nice
expensive car
C. Other Consumer Buyer Behavior?
Empty Nesters- high income, kids moved out
Social Class- high class

9. D. Target Market Strategy
 BMW uses a single-segment marketing strategy
 They make high end cars for high class customers
E. Positioning
 High Performance Sports Car
 Has not been repositioned still has same position since it was
first produced in the early 1990’s
IV. Product Pricing
A. Retail prices at four different locations:
1. Baron BMW in Merriam, Kansas- $70, 975
2. Faulkner BMW in Lancaster, Pa- $74,575
3. Apple BMW in York, Pa- $59,275
4. Torrances BMW in Los Angeles, California- $78,505

10. B. Pricing Objectives of the Company
 Sales Oriented- aimed at delivering profit growth
and build foundation of BMW’s brands and business
C. Price Increase
 In 2007, BMW came out with a new M3 body style
which jumped the price from $48,900 in 2006 to
$55,400 in 2007
V. Product Placement and Distribution
A. BMW uses indirect distribution channels, they use
middlemen to reach the final consumer
B. BMW moves their products from the
producer/manufacturer to the retailer who then sells the
product to the final consumer

11. C. Product Readily Available?
 Yes the M3 can be found at almost any BMW dealership and
can actually be custom ordered online
 The M3 would be in the Maturity stage so its price has not
changed much since it became available and is reasonable for
the target market
VI. Product Promotion
A. Videos- video
Target Market: people with high income
Hold Attention: Yes
Features/Benefits: fast/ fun
Take Action: Yes
Magazine Articles
Target Market: Car enthusiasts
Hold Attention: Yes
Feature/ Benefits: Handling/ fun
Take Action: No

12. B. Company’s Main Promotional Goal
 The sports car category which includes the M3 is in the
maturity stage of its product life cycle so the main
promotional goal of BMW is to remind, persuade and inform
C. Promotional Mix
Advertising: BMW advertises the M3 in Magazines and on
their website
Personal Selling: My BMW, register online to receive special
promotions and get emails about about servicing your BMW
Sales Promotion: When you service your car at BMW, they
register your name and send you ads in the mail with
discounts and promotions
Public Relations:
 BMW uses engines in their new cars that are hybrids which
use electric energy combined with gas to promote being green
 Uses website to show new products and press releases
 BMW offers special events such as the M track day

13. D. Opinion Leader
 Tommy Milner
 Races for BMW in an M3
E. Pull Strategy
 BMW spends most of their money on advertising and sales
promotion to the consumers in order to create demand
VII. Product Evaluation
A. Technology can help to market the M3 for little cost by
releasing videos to sites such as you tube and they can create
groups on social networking sites such as Facebook to gain
consumer interest for free
B. BMW could put hit counters on their website and videos
to determine how effective their marketing is
 Audi a similar car company to BMW, uses basically the
same marketing methods as BMW, promoting mostly
through there website and having features such as My Audi

14. C. Lifetime Value of a Customer Theory
 Develop new and interesting products every year
 Newsletters and Sales promotions in mail
 Offers full coverage on parts for the first 50,000 of a new car
 Every few years BMW comes out with a new M3 which will
keep customers interested in product and have them come
back to buy the new one
D. In five years? Yes the M3 will be around in 5 years
because it has great customer loyalty and is well
established in the marketplace, has been around for
over 20 years already
E. Museum of Losers? No the M3 has a great sales history
and has been around a long time
F. Great car but very expensive, the average person cannot
afford to drive this car

15.  Works cited Marketing Plan
 Apple BMW. "Apple BMW - Showroom - 2010 BMW M3." Apple BMW - Apple BMW of York, PA
sells new & used BMW's in York, Lancaster, Hanover, Harrisburg & Baltimore. N.p., n.d. Web. 30
Nov. 2010. <http://www.applebmwofyork.com>
 Audi.com. " Audi of America > Home." Audi of America > Home. N.p., n.d. Web. 30 Nov. 2010.
<http://audi.com>.
 Baron BMW. "New BMW Inventory - Baron BMW - Merriam Used Cars, New Car BMW
Dealer, Auto Sales and Service in Merriam, Kansas." Baron BMW - Merriam Used Cars, New Car
BMW Dealer, Auto Sales and Service in Merriam, Kansas. N.p., n.d. Web. 30 Nov. 2010.
<http://www.baronbmw.com/search/New+M3%20Series%20Coupe+tM>.
 "BMW Group." BMW Group. N.p., n.d. Web. 17 Oct. 2010. <http://www.bmwgroup.com/e
/nav/index.html?../0_0_www_bmwgroup_com/home/home.html&source=overview>.
 "BMW M3 Sedan : Overview." BMW automobiles - website of the BMW AG. N.p., n.d. Web. 17
Oct. 2010. http://www.bmw.com /com/en/newvehicles/mseries/m3sedan/2007/introduction.html.
 Cars.com. "2011 BMW M3 Summary." New & Used Cars for Sale, Auto Dealers, Car Reviews and
Car Finance Advice. N.p., n.d. Web. 30 Nov. 2010. <http://www.cars.com/bmw/m3>
 Faulkner BMW. "BMW M3." Faulkner BMW New Inventory. N.p., n.d. Web. 21 Nov. 2010.
<http://www.faulknerbmw.com/new-inventory/BMW-M3>.
 Ivy Thesis. "Report on BMW's Strategy." Ivy Thesis. N.p., n.d. Web. 22 Nov. 2010.
<http://ivythesis.typepad.com/term_paper_topics/2009/09/report-on-bmws-strategy-1.html>.
 KBB.com. "Reviews - Kelley Blue Book." New Cars, Used Cars, Blue Book Values & Car Prices -
Kelley Blue Book. N.p., n.d. Web. 30 Nov. 2010. <http://www.kbb.com/recommended-cars/luxury-
and-high_performance>.
 Perreault, William D., Joseph P. Cannon, and E. Jerome McCarthy. Essentials of Marketing: a
Marketing Strategy Planning Approach. 12th ed. New York: McGraw-Hill/Irwin, 2010. Print.
 TomMilner.com . TomMilner.com . N.p., n.d. Web. 30 Nov. 2010. <http://www.tommymilner.com>