Assignment 3 Promotional Strategies 1

Promotional and

Advertising

StrategiesAssignment 3

6/5/2014

By Regina Fernanders

Strayer University

Contemporary Business

Promotional and Advertising Strategies What Consumers Crave

In this paper, I am going to discuss the promotional

strategies used for the newest model of two commonly compared

luxury vehicles: BMW and Mercedes Benz. For the sake of full

disclosure, I am a proud owner of a BMW. But, I have committed

to impartiality during my research. At any rate, the purpose of

this essay is to discuss the strategies used to promote each

product and not to discuss the actual performance of each

vehicle.

Allow me to introduce the newest model of Mercedes Benz: the

all-new 2015 C-Class. The first thing that I noticed was that

the body of the vehicle was not particularly impressive. It

didn’t vary much from the previous model or even the one before

that. This could be indicative of a strong clientele base -

loyal supporters of Mercedes Benz vehicles. Mercedes Benz is a

well-known, trusted luxury car brand. Similar models have proven

successful in the past. The 2015 C-Class appeals to current

Mercedes Benz owners and people who have seen, and liked what

they saw, in previous Mercedes Benz models. Perhaps, even

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envious people who want what a higher level employee drives into

their special, reserved parking spot every morning. In this case,

I think what Mercedes Benz is trying to say is “if it’s not

broken, why fix it?”

Allow me to introduce the newest model of BMW: The BMW i8.

This model is curvaceous and has a sleek design. It has spoilers

in the back and even butterfly doors that swing open upwards and

outwards. The first thing that I thought was “Wow. That’s

cool!” The design itself is obviously intended to appeal to a

younger base. The lights, bells, and whistles on the car seem

better fit for a movie star or celebrity than for a media mogul

or corporate lawyer.

All in all, the body of the BMW seemed a lot more

revolutionary and futuristic. The design is meant to appeal to a

younger audience. I would go as far as to say to appeal to an

older upper class trying to recapture younger years. The design

of the Mercedes Benz is meant to appeal to a loyal base. It is a

car for older, long-time established people who perhaps already

own a previous model of Mercedes Benz. At any rate, the body of

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the new BMW is much more aesthetically pleasing than the Mercedes

Benz 2015 C-Class.

Let us examine the names that the developers chose to market

each vehicle. The sedans come in 4 classes: CLA-Class, C-Class,

E-Class, and S-Class. The idea is simple. This further enforces

my theory that Mercedes Benz markets to loyal supporters of

Mercedes Benz. A current owner of a Mercedes Benz would know by

now exactly what time of model or class he or she wants. He

might have a sedan and realize that he now wants a coupe. He

might have an older C-Class and love it, so he would go just for

the upgrade. He would trade in his 2005 C-Class for the brand

new 2015 C-Class. I imagine that Mercedes Benz will expect him

for another upgrade in 10 years when the 2025 C-Class is

revealed.

BMW is a bit more dynamic with their choice of names.

Generally, they use a combination of numbers and capital letters.

It is impossible not to see the beauty in the advertising

technique that they used with their newest model – the BMW i8.

The lower case “i” before the 8 alludes to widely popular apple

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products like the iPad and the iPhone. It has become a trend in

pop culture and millennial circles to use the lower case “i”

randomly. iSing, iDance, and iVote, for example. By using the

lower case “i,” BMW hopes that they will catch the attention of a

younger base. This promotional technique goes along well with

the contemporary design of the vehicle and the futuristic

features.

The 2015 C-Class of Mercedes Benz is marketed as a luxury

car. Luxury implies wealth. Luxury implies an affinity towards

the finer things in life. I expect a luxury car to be

comfortable, to drive smoothly, and to go around curves

effortlessly without making everyone in the car lean to one side.

The 2015 C-Class uses aluminum hybrid construction, meaning that

almost half of it body layer is made of aluminum to make it much

lighter in weight. (Hybrid, December 2013) Less weight will help

the new Mercedes Benz model to handle a curve practically the

same way as a straight stretch of road. Luxury implies

indulgence, perhaps even excess. Mercedes Benz is obviously

advertising to the upper middle class. The advertisement is

meant to reach out to affluent people who have the means to live 4 | P a g e

luxuriously. This comes as no surprise given the price tag

attached to most Mercedes Benzes.

The BMW i8 is marketed as a sports car. Advertising a

sports car implies speed. The BMW i8 is marketed towards someone

who is risky, perhaps someone who likes danger and intends to

race the car. The type of car that kids flock to at a car show

or that will turn heads in a parking lot. A sports car is flashy

and impressive. Promoting the BMW i8 as a sports car is a good

way to appeal to younger or middle-aged men who enjoy displaying

the fact that they are well-off to the public.

I think it is worth noting the color displayed in the online

advertisements of each vehicle. The concept of color psychology

is well known in the advertising community. Color psychology is

also an important doctrine in the culinary and art fields. The

2015 C-Class is showcased in a metallic silver; the BMW i8 in

metallic black. Thought there are many constants, the consensus

is that color psychology is very subjective. Colors can engender

different emotions for different people. The reason behind the

variation of emotional response to colors is association. You

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feel whatever the collection of emotions has been that you

associate with that color. At an earlier time more so than

nowadays, silver was used as currency. The silver on the 2015 C-

Class in the Mercedes Benz advertisement alludes to money and to

wealth. It is a luxury car, after all. Mercedes Benz wants the

potential buyer to think, “I am wealthy, and therefore I should

drive this silver Mercedes Benz.” On the other hand, silver is

awfully close to grey. Grey is a symbol of neutrality. “Some

other gray traits are: security, reliability, intelligence,

staid, modesty, dignity, maturity, solidness, conservativeness,

practicality…” (Sakura, June 2003) Silver is a shiny,

spectacular grey. It says ‘though I am getting older, I am

established and I’ve still got my edge!” Using a silver model in

the advertisement goes hand in hand with Mercedes Benz’s

promotional strategy of appealing to the woman who already owns

an older model Mercedes Benz. The black on the BMW i8 is edgier.

Black is a powerful color. It is mysterious. Most importantly

for this advertisement, black symbolizes night and therefore the

nightlife. Using a black model in the advertisement enhances the

promotional strategy to appeal to younger buyers. I am sure that

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discussion of the promotional strategy yielded the suggestion of

a bolder color like blue or red. This proposal may have been

feasible in North America. But, I stand with the marketing team

in using black in the model to appeal to more potential buyers

internationally.

Accurate marketing information can help gain an advantage

over competitors. Data with demographics and purchasing patterns

will help determine how to market an automobile. For example, if

we have information about when people buy cars, then we will know

when to release a new series. Often, there are trends in

purchasing patterns that you wouldn’t think of. Maybe there is a

spike in automobile purchases in September as students go to

school, or in winter when people are less inclined to walk or

take public transportation. We have already established that the

Mercedes Benz promotional strategy is towards loyal customers of

Mercedes Benz. A good marketing strategy to gain advantage over

other competitors would be to highlight the reliability of

Mercedes Benz vehicles. I would recommend that Mercedes Benz

start a marketing campaign in the summer preparing for the back-

to-school fall season. If we assume that the audience already 7 | P a g e

owns a Mercedes Benz, we could exploit the idea that if the car

has worked well for you, then it would be a great car for you

children or grandchildren. Perhaps find a way to showcase

previous models that would be more affordable now. Highlight the

fact that they still sell previous models. This will help in the

short run. Mercedes Benz could even show in the commercial a

previous model, (preferably of a different series) with the 2015

C-Class. Marketing Mercedes Benz as the go-to, reliable first

car will give it an advantage over competitors in the long term.

Highlighting that they sell previous models in commercials

and initiating the marketing campaign in the summer will help

Mercedes Benz establish a brand as the go-to first car in the

short term and the long term.

The effectiveness of seasonal marketing is evident in

commercials. Commercials for allergy medications pop up

everywhere during the spring and you can’t watch anything on

television without seeing a commercial for toys as Christmas

approaches. An article written by Sonja Radas and Steven Shugan

in the Journal of Marketing Research explains further:

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Virtually every product in every industry in every country

is seasonal. Seasonality transcends products such as toys,

snow shovels, and Christmas trees. Seasonality dictates

business strategy in highly seasonal businesses such as

accounting services, advertising, airlines, amusement parks,

beauty salons, restaurants, car rentals, cinemas,

communications, construction materials, education, public

utilities, employment agencies, financial services, and

lodging. In Tokyo, vending machines dispense only cold

drinks in April and hot drinks in October. (Radas, Shugan

1998)

BMW could convince a celebrity that is sure to win an award

to drive the BMW i8 to the awards show. For example, pay Jane

Superstar to drive the BMW i8 to the Academy Awards assuming that

she is going to win one. You could then market it as “a winner.”

They could use footage of the celebrity stepping out of the BMW

i8 in a commercial and pictures in an advertising campaign. This

would advance their promotional strategy. Not only will Jane

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Superstar appeal to all of her fans, it would appeal to anyone

who envies her fame, fortune and flashiness. The added bonus is

the subtle undertone of pushing that if you drive this car, then

you will be the best at what you do and make waves in your field.

This campaign will gain BMW an advantage over its competitors

because it acknowledges that celebrities drive other brands, but

implies that celebrities who drive BMWs are better - winners, if

you will.

In the short term, they should put the BMW i8 in every car

show that they can. Highlight the features and everything that

makes the BMW i8 unique. Efforts should be made to get the BMW

i8 on every red carpet event. Make sure celebrities and well

known people are driving the BMW i8. There should definitely be

an iPhone application where you can explore the interior of the

BMW i8. Maybe even a game where you can drive the BMW i8. And,

of course a mechanism by which you can experiment with different

colors and ultimately purchase the automobile. The advertising

strategy is directed towards a young audience, so the BMW i8

should be ubiquitous in social media, automobile blogs, magazines

and other medium. The BMW i8 currently has a presence on 10 | P a g e

Facebook, Instagram, Twitter, Foursquare, and YouTube. In the

long run, BMW will have to adjust to constantly evolving trends.

If BMW seeks to remain relevant to a younger audience, they will

have to keep changing. They will have to keep up with what is

“cool” in pop culture and they will have to rapidly adapt to

changes in social media and in the online environment.

This model has proven successful for other companies.

Porsche, a comparable brand in the automobile industry, launched

a social media campaign in 2013. Fans were asked to design the

ultimate car and then they posted pictures up on Facebook. The

original post resulted in nearly 16,000 likes and 1,200 comments.

Using social media gives customers the opportunity to actively

engage with the brand. (Edgecomb, October 2013)

Pricing for the Mercedes Benz 2015 C-Class has not yet been

announced, but the previous model costs around $45,000. Pricing

for the BMW i8 starts are $135,000. Mercedes Benz decided price

based on other sedans in the market. They seek to meet

competition. Companies within this same product can highlight

value by stressing all of the additional features that you get

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with the 2015 C-Class at no additional cost. Or, they can

actively compare the price of their newest automobile to that of

comparable brands.

BMW is obviously going for prestige. A high price tag sends

a message that the BMW i8 is a very high-end sports car. When

competing for prestige, the price is set higher than normal to

create an illusion that you are getting something more than what

you already see. A competitor would have to highlight actual

features and performance to prove value. A competitor would have

to earn the prestige associated with the high price.

Works Cited

2015 Mercedes-Benz C-Class Price. (2013, December 03). Retrieved from http://hybridrock2015.com/2015-mercedes-benz-c-class-price/

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All-new 2015 C-Class. (2013, December 16). Retrieved from http://www.mbusa.com/mercedes/future/model/model-All_New_2015_C_Class

BMW i8. (2014). Retrieved from http://www.bmw.com/com/en/newvehicles/i/i8/2014/showroom/index.html

Edgecombe, C. (2013, October). [Impact Branding and Design].

Retrieved from http://www.impactbnd.com/blog/5-brands-

effectively-implementing-social-media-crowdsourcing

Radas, S., & Shugan, S. (1998). Seasonal marketing and timing newproduct introductions. Journal of Marketing Research, Retrieved from http://business.highbeam.com/138014/article-1G1-21077014/seasonal-marketing-and-timing-new-product-introductions

Riley, J. (2012, September). [Tutor2U Blog]. Retrieved from http://www.tutor2u.net/business/marketing/pricing_strategy_other.asp

Sakura. (2003, June 22). What Colors Mean: An In-depth Look At Color Symbolism. Retrieved from http://www.sailorastera.com/articles/3.html

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