Chap. 8 - Segmenting and Target Markets

In 2000, BMW suggested new cars to redesign there product line. These new cars are reflecting off customer taste and behavior. The chief executive says "Taste is changing. Customers are slicing the market into more focused pieces. BMW regularly does research on there customers occupations and hobbies. In the 1990's, they sensed different people were buying luxury cars. These new customers included aging baby boomers, yuppies who had started families, and liberal minded wealthy professionals. Research was shown that these people wanted more choice and more eye-catching design for there changing lifestyles. Bmw is very clear with there target markets, they target premium priced cars that don't compete with other parts of the auto industry. They focus more on the luxury rather than high volume, middle-of-road vehicles. This is what makes Bmw one of the most profitable automobile makers. Sometimes Bmw will begin to see that they are selling more to outside of there target market, it usually can be a good thing. The Bmw Z3 had a target market of men and women over the age of 40, people who are thinking about the car they wanted all there life. But, now the car became sort of a toy for wealthy people in there twenty's. It wouldn't be a problem for Bmw to start selling to more wealthy people. But, the marketers would have to have kind of an idea of who is buying there product, so they can deal with there wants and needs for future sales.