Strategy Of Mercedes Versus Bmw Across European countries Marketing Essay


What is marketing? Who really recognizes? In our age, almost all of the people have in their brain a different interpretation of the marketing. For me, marketing is a mean which pulls the strings of our own economy. The terminology of marketing has been borrowed from the military. We discuss protective marketing, offensive marketing, and guerrilla marketing. Often forgotten, however, is flanking, one of the very most powerful armed forces strategies.

As for the official meaning of the word, marketing is

Marketing is the procedure where companies create customer affinity for goods or services. It creates the strategy that underlies sales techniques, business communication, and business developments

Marketing is defined by the North american Marketing Association (AMA) as "the experience, set of corporations, and operations for creating, connecting, delivering, and exchanging offerings that have value for customers, clients, associates, and society most importantly.

The Chartered Institute of Marketing defines marketing as "the management process in charge of discovering, anticipating and satisfying customer requirements profitably.

Maybe there are hundreds different meanings of marketing however in the end they are all agreed so it was created to help the market and the consumers to fulfill their needs.


This project is to investigate and compare the marketing strategies of BMW and Mercedes-Benz. Both companies are renowned market market leaders in supplying cars. The pair has a brief history of providing innovative cars for days gone by century. Over the years with the improvement of technology BMW and Mercedes-Benz have met customer needs by producing the most motivating and well toned cars of their times. The BMW Group concentrates on selected premium sections in the auto market. Which means that they focus on providing a superior quality product and in exchange they can perform higher revenues per vehicle sold. On the other hand Mercedes-Benz which provide to the high quality segment of the marketplace have concreted their name ever sold as manufacturers of luxury cars, have exposed their entry doors to a range of more dynamic models focusing on the slightly young market. Mercedes's biggest rival has long been BMW. The two companies' marketing strategies mirrored each other in the 1990s. Thus in 1996, Mercedes agreed upon a deal to market its vehicles in Universal Pictures' The Lost World, but it was a long time behind BMW, which in 1995 made an arrangement to feature its vehicles in the James Relationship film Goldeneye.

More important was a huge shift by both companies in response to the go up of Japanese luxury vehicles such as Lexus and the Acura Star. Advertising messages provided an emphasis on value rather than luxury. Germany's two luxury leaders, Mercedes and BMW have rebounded with a reversal of marketing strategies that include new, lower-priced products.

THE Background OF BMW

Bayerische Motoren Werke AG (BMW), (wikipedia, 2010) or Bavarian Engine Works is a German automobile, motorcycle and engine motor creation company founded in the entire year of 1913 by Karl Rapp. To begin with, the company has produced aircraft engines from a former bicycle factory which was near Munich. It had been near to this seed when Gustav Otto built the aircraft company called Bayerische Flugzeugwerke AG and in 1922 these two organizations merged to BMW. The name of BMW means Bayerische Motoren Werke.

In their early years of BMW Company, it includes produced mainly aircraft engines, but also some motorbike engines. It had been not until 1928 when BMW bought an automobile manufacturing plant that BMW started out producing vehicles.

Moreover, throughout that period BMW bought the design and manufacturing privileges to the Isetta which was mend to be one of the most successful micro vehicles for the reason that years. It had been a time when cheap, brief distance transportation was needed and the 2-seater, with an economical engine, fit the requirements perfectly. Manufacturing protection under the law for the Isetta were sold to various development companies about the world and these included the British Railways works in Brighton, UK.

Today's 'Beemer's' have retained their prestigious reputation for quality and consistency. The company is taking steps to lessen the impact they and their electric motor cars have upon the environment so we can get to see more innovative and exciting trends from a company who have not only survived two world wars and an enormous depression, but thrived.


BMW's (OPPapers, 2010) marketplace are customers between your age groups of 25 and 45 who had been new to the blissful luxury car market, nevertheless without alienating their current customer bottom part. The customer basic of BMW was male in the age around 46 yrs. old, married without children, and had a median income of about $150, 000. Additionally, the Internet was utilized by 85% of customers before buying a BMW (Hespos, 2002). "Combining the ideas of producing a series of brief films and utilising the web in an advertising campaign, short films for the Internet was born with BMW Motion pictures" (Hespos, 2002). The blissful luxury automobile machine that has established a mark for itself in the luxury car segment using its high performance autos. BMW is a robust brand that is actually experienced by car fans worldwide as symbolic of performance, electric power and luxury, all blended into its electricity packed machines that are treat to watch, drive, and still have. That is why, it is actually known as the "Ultimate travelling Machine".

BMW's tighter feel and increased responsiveness gave individuals the sense they were in complete control, something no other brand of car offered. This handling advantage was greatly loved by sports vehicle aficionados and car buffs.


BMW has many different strategies of marketing. One of these strategies is the support of its dealer network. This succeeds only through a range of activities.

Dedicated Supplier Marketing Service which facilitates with all marketing requirements for example

Local advertising for product range

Support for local promotions

National promotions

Hire of promotional equipment for dealer events

Image collection which companies various images designed for dealers to work with when making their own marketing communications such as leaflets, invitations and direct mail.

Educational materials

Moreover, there is a Continuous Customer Contacts Program (CCCP) with the objective of increased customer loyalty and satisfaction.

BMW also targets a great selection of advertising. One thing that BMW adverts have as a common factor is that they target completely on the automobiles.

On Television set there are extensive branding campaigns and new car launches. Some Television places depict stereotypical corporate-cog professionals who squelch imagination and initiative. "Beware of the compromisers". They say things like, "Choose your battles", or "Is this notion really worth falling on your sword for?" Later, the recurring meaning throughout the marketing campaign comes in, "At BMW, ideas are everything".

Radio branding promotions (2002 was the first season that BMW used radio for nationwide advertising) also uses. It generally does not tend to be utilized at a national level, although can be utilized regionally.

As for the press, Color press is detailed, for example: Tatler, Vogue, lifestyle publications, motoring publications, broadsheet papers and tabloid papers weekend color supplements. Dark colored & white: nationwide press.

In addition to higher profile national advertising, retailers also run their own local campaigns through:

Local press


Bus advertisements

At the cinema, screens usually show short films. Other ways of advertising includes supply of sales books, brochures, direct marketing, price lists and point of sales materials. Finally, other methods BMW use to promote its brands and products

Product Placement

BMW Skill Car Collection


These and many others are the marketing strategies of BMW to be able to enhance its market talk about. For Mercedes-Benz.


The record of Daimler-Benz (Jiffynotes, 1996) started in the early 1880s and its founders were Carl Benz and Gottfried Daimler, whose individual companies made a fresh one in 1926. Except from both previous founders, an important body was an Austrian banker who called Emile Jellinek and in 1897 became a Daimler plank member. Emile Jellinek as a marketing expert offered a variety of useful advice and advised a car with an engine to leading. That kind of engine unit from then and until now is typically the most popular type of all the models of autos. After outlining a kind of racer that he wished to built, he guaranteed to purchase 36 of them, a sizable order at a time when few people even found an automobile. In return he asked that Daimler name the car after his daughter, Mercedes.

The car which created in the year of 1900 got its highest swiftness of only 30 a long way per hour. In those days it was one of the quickest vehicles on the road. But the Mercedes thought that it might go considerably faster from that and for this reason nine years later its manufacturers built a special Benz capable of reaching 141 kilometers per hour. During World Battle II, the company became associated with the Nazi routine. Hitler's airplane engines and military vehicles made specifically for the 3rd Reich. But it recovered quickly from the war and in the 1950s set up itself as a company of luxury sedans in Europe and America.


In the year of 1993, Rosemarie Totzauer said (Jiffynotes, 1996) as reported in Brandweek, that "Mercedes is succeeded to reintroduce itself and progress from a firm long defined specifically by its gas-guzzling luxury sedans and sports automobiles. The renewed Mercedes will give you a more complete, stylized line of vehicles with complicated and higher risk luxury portion. Mercedes-Benz, although attempted to think itself as a business known for value and a variety of vehicle concepts alternatively than for the prestige of the three-pointed legend. "

The slogans modified from the old "Engineered Like No Other Car on the planet. " created by McCaffrey and McCall, to a new one "Sacrifice Nothing, " which made a solid impression and accepted the company's modified marketing policy. The prospective market possessed broadened, and also had the Mercedes lines and models.

Moreover, as also, Fara Warner had written in Brandweek in 1994, "Mercedes is known as an exclusive luxury car for white males which tried out to broaden its charm with value prices and services. "


Mercedes Benz marketing strategy (ExampleEssays, 2002) was in first place based on the safety, luxury, and high quality engineering of its autos, however the increase of competition in the luxury car industry, changing consumer behaviour about the Mercedes Benz brand. So to stay on the market, Mercedes forced to change its strategy. Now, their online marketing strategy is more life style oriented and is focused more on conserving fun loving and energetic aspect of Mercedes Benz. The growth of its marketplace it is directly linked to the progression of Mercedes Benz's online marketing strategy, which now includes people twenty five to forty-five years of age as well as its initial targets. In order to provide superior customer value to its marketplace Mercedes Benz has achieved more competitive prices, increased marketing communications, maintained option of consumers, and continued its excellent customer support.

The online marketing strategy of Mercedes-Benz is in short supply of the same as BMW. More specifically, Mercedes spends a large amount for advertising campaigns.

Mercedes-Benz launches a global advertising campaign on the theme of sustainability.

Moreover, four different print advertising will be put in every large-circulation newspapers in Germany, running in parallel with a TV commercial and a web campaign. The sustainability advertising campaign will be prolonged in middle-2008 to include additional vehicles and advancements related to Mercedes-Benz' activities that are blended under the heading 'True Blue Solutions'.

Dr. Klaus Maier, Exec Vice Chief executive of Mercedes said that "Inside our advertising campaign on sustainability we promote innovative solutions for environmentally reasonable mobility including the BLUETEC emission treatment system, which Mercedes-Benz offers to its customers as the world's cleanest diesel. "

Mercedes' new advertising campaign focuses on protection over luxury. This isn't surprising since the financial meltdown has reversed consumer priorities. It's now frowned after to brag about buying the most luxurious car. Instead typically the most popular guy is the one who provides the most worthy of for as little money as possible spent on a fresh car.

Mercedes-Benz is now allocating 50% of its UK marketing budget to digital multimedia, relating to its VP for brand marketing communications, Anders Sundt Jensen. The dynamics of the united kingdom market and the advanced consumer patterns in the united kingdom meant the motor vehicle brand was already allocating half of its budget to digital, well before other Western european territories where in fact the company was definately not allocating even 40%. The main factor to the company's success online was the creation of specialist know-how within the company. "We don't have normal marketers just doing online advertisings, or just placing our TV advertising online, " Anders Sundt Jensen said. "We have a whole department, for example, at our head office in Germany just doing digital marketing. "

Also, one of the marketing strategies of Mercedes-Benz adopted is to start out promoting a few of its autos on IPhone and Facebook.

Another marketing action than offered a step forward to Mercedes-Benz is the campaign of a series of green automobiles». Mercedes-Benz brings to the marketplace hybrid automobiles that are environmental friendly.

To summarize, the key that makes Mercedes-Benz a robust competitor on the market is the below

Delightful customer care

Retail network ready for the future

Efficient, integrated procedures and systems

Sales and Marketing MBC

Product Price Place Promotion People Processes

Perfectly positioned brand and effective marketing

Fascinating products

Motivated, experienced employees

Effective market penetration


Undoubtedly, BMW and Mercedes-Benz were, are and continually be two whoppers. Their marketing strategies are a comparable. Their promotional initiatives, the TV and radio places and the costumer's services are alike. The difference between them and the key reason why they are both special is their target market and their market position, what they want their customers to remember about them.

BMW focuses to young customers aged 25 to 45 and it encourages the slogan Ultimate driving machine». It appeals to those who want to contain the sense these were in complete control.

On the other side, Mercedes-Benz is right now considered as a special luxury car for white guys, but now makes a decision to broaden its appeal with value prices and services. It mostly attracts those who love luxury and safe vehicles but not too expensive.

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