Quote:
Originally Posted by chuck92103
A lot of what BMW does is physchological marketing.
Say you are a watch manufacturer and want to sell a bunch of watches for $500 retail. How do you do that?
You make two more watches. one that sells for $300, and one that sells for $800.
Consumers are ignorant to the fact that they subconsciously do not want to buy the entry level $300 watch. So they look at the $500 watch and and compare it to the $800 watch and justify in their minds that the $500 is the better deal.
In the end, the watch maker achieved his goal of selling $500 watches buy pushing the consumer to the most profitable product.
In the case of BMW, several things come into play.
1. The M3 exists to sell more 3 series. Customers will compare the 325, 335, and M3 and will choose the 335.
2. They may compare the 1, 3 and 5 series and buy the 3 series yet again.
3. In the case of the X1,X3, X5, the consumers will opt for the X3.
BMW's goal with the X1 is to expand X3 sales. So that is the point of the X1.
The majority of 3 series buyers purchased a 3 series for this very reason. That is why I laugh when people say the 5 is too big, more expensive, etc. These are 3 series owners who played right into the hands of BMW.
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I'm reading a book right now (fairly new) precisely about this marketing trick. like when you are offered a house, you are given a stupid option, and 2 similar options. You are likely to pick between 2 options of course, but the key is you WILL pick. If you just given silly choice and good choice, you may pass it up.
All car models are variation on this theme. In Europe noone really goes for the big cars, the 3 series is a perfectly normal car for every day life - just check E90 owners here for example - all from Europe have 320s or 325s, very few people opt for the mega expensive 335 that costs in some countries in north where I live, some 100000 euros.