AN ANALYSIS ON THE
EFFECTIVENESS OF THE PROMOTIONAL MIX THAT IS BEING USED BY MERCEDEZ-BENZ AND
BMW IN MARKETING THEIR LUXURIOUS CARS
By
ABSTRACT
Mercedes-Benz and BMW are most famous and well-known luxurious cars. The purpose of this study is to identify the promotional tools that they use and to measure the effectiveness of their print advertisements in informing, persuading and inducing their respective target markets to purchase their product. The characteristics of the target markets were identify using demographic variable such as age, occupation and monthly income. Various tests, such as the recall and recognition tests, attitude test and inquiry test were used together with the Lavidge and Stainer (L&S) model to measure the effectiveness of their advertisements in moving customers through the stage of cognitive, effective and conative response. Some 100 Mercedes-Benz and BMW owners in the Klang Valley were approached using the snowball sampling methods and data collected from them using person-administered interview were analyzed using the SPSS statistical software. Meanwhile, other primary data was collected from executive interviews with managers of Cycle & Carriage Bintang Berhad and Auto Bavaria. Meanwhile, secondary data was collected through marketing related journals, reference books, newspaper, magazines, brochures, and Internet. From data analysis and interpretation, it is found that Mercedes-Benz and BMW both usually use advertising, personal selling, publicity and sponsorship marketing. Meanwhile, some form of sales promotion is only used occasionally to promote their products. Also, Mercedes-Benz’ target market are mainly businessmen and working professional with a monthly income of less than RM15,000 and whose age is above 40 years old, while, BMW’s customers are mainly businessmen and working professional but whose age is between 31 to 50 years old and has a monthly income of between RM10,000 to RM 25,000. both print advertising are effective as they achieved similar high response levels from cognitive to conative among their respective target markets. Based on such conclusion, it is recommended that both companies should retain the use of print media to advertise their products and also look into other media, especially in the case of Mercedes-Benz, which only advertises in print media. In addition, both companies should consider using direct mail to build a long-term relationship with their customers.
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Bachelor of Arts (Hons) In Marketing
August 2001
Number 1