Question

BMW’s sales slipped during the worldwide recession in 2008 and 2009. Is its segmentation strategy too selective? Why or why not?

Answer 1

No, the slip that happened during the economic recession cannot be taken as sufficient evidence of the segmentation strategy.

Explanation:

• According to the basic principles of economics, the decrease in disposal incomes also decreases the demand for normal and luxury goods.

• It is normal for BMW to experience a decrease in sales numbers during an economic downturn and so is for many other companies.

• Although, BMW should pay attention to how selective they get cause if market segmentation goes selective it can affect their growth.

Answer 2

The statement is right as BMW has a very selective segmentation strategy.  

Explanation:

• The reason is BMW uses the mono segment and goals to gain one customer at a time.

• Their portfolio shows that all the vehicles are of very high quality and price.

• They can not lower its price and make it cheap.

• This is the brand that shows luxury, success, and esteem.