BMW’s sales slipped during the worldwide recession in 2008 and 2009. Is its segmentation strategy too selective? Why or why not?
Answers
Answered by
4
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.
Answered by
1
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.
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