BMW segmentation, targeting and positioning can be specified as the base of the

marketing efforts of the company. BMW, as well as, any other business entity has
to divide population into different categories according to a set of certain criteria
and develop products and services that are particularly attractive to this specific
group. This marketing process is known as segmentation, targeting and
positioning. Segmentation, targeting and positioning is important because
businesses cannot offer products and services that are attractive to all members
of population in an equal manner. Segmentation implies dividing potential
customers into different groups according to certain criteria such as age, social
class, lifestyle etc. Segmentation can be divided into four types: demographic,
behavioral, and psycho-graphic.
Segmentation stage is followed by targeting and this stage is associated with
selection of specific group(s) as a target customer segment. Positioning is the last
stage in segmentation, targeting and positioning and this stage involves selection
of the marketing mix that is relevant to the chosen target customer segment in
the best possible manner.
BMW Group uses mono-segment type of positioning and accordingly, the
company makes an appeal to a single customer segment. In other words, BMW
Group product portfolio only comprises expensive vehicles at a premium level
and the company does not have budget vehicles in its portfolio to target
individuals and households with a smaller budget.

Segmenting and Targeting Markets

BMW uses three steps for targeting which are market segmentation, target
choice and product positioning. When using segmentation, BMW finds
information by looking at geographic, demographic, behavioural,
socioeconomic, beneficial characteristics of society which helps them to
target the market more effectively. The demographics of people who are
able to purchase a BMW are men and women aged 30-50 years old.
Behaviourally, these people have a successful image in their mind before
buying a car. Geographically, the main markets for BMW where they are
doing more than 65% of sales are Europe and North America because
these areas are both heavily industrialized locations which means that
residents arefinancially positioned to by their cars.
Type of Segmentation
segmentation criteria BMW Group target segment

BMW MINI Rolls-Royce

Region Domestic/international Domestic/international Domestic/international

Geog-raphic Density Urban/rural Urban Urban

Age 20-65 25-45 40+

Gender Males & Females Males & Females Males & Females

Bachelor StageNewly
MarriedCouples
Full Nest I
Full Nest II
Full Nest III
Full Nest IIFull Nest IIIEmpty
Empty Nest I
Nest I
Bachelor StageNewly
Empty Nest II Empty Nest II
MarriedCouples
Solitary Survivor I Full Nest I Solitary Survivor I
Solitary Survivor II Solitary Survivor II
Life-cycle stage

Income High High High

Professionals &
Demog-raphic Occupa-tion Professionals & executives executives Professionals & executives

Degree of ‘Hard core loyals”Soft ‘Soft core

loyalty core loyals”Switchers’ loyals”Switchers’ ‘Hard core loyals’

ReliabilitySense of
ReliabilitySense of ReliabilitySense of achievementExpression of
Benefits sought achievementSpeed achievementSpeed high status

Persona-lity Determined and ambitious Easygoing Determined and ambitious

non-usersregular users,ex- potential users, first-time

Behavi-oral User status users users first-time users regular users
 Social class Middle classUpper class Middle class Upper class

Psychographic Lifestyle[1] AspirerSucceeder ExplorerReformer Resigned