Initially, BMW had no real idea to whom the films would appeal. BMW executives knew they would have everyone from high school students to 7-Series owners as viewers. BMW’s guess was that their central tendency would have been 25-year olds, with a median income of $100,000. BMW and Fallon research indicated that many were tech-savvy, and had fast, reliable access to the web. Most important, 85% of buyers had researched the vehicle on the web before stepping into a showroom.
Characteristics of the typical BMW Target Audience
Societal values are changing rapidly. Society will increasingly take its cue from Generation X'ers and dot-comers rather than the baby boomers who have dominated its thinking for most of four decades. Associated with that demographic shift will be a return to the appreciation of self-reliance and cooperation. Self-reliance because the traditional safety platforms such as Social Security and pensions will no longer exist, and cooperation because it involves group action that, in turn, is the optimal strategy for the use of scarce resources. Family issues such as long-term health care, day care, and anti-drug campaigns will remain dominant issues up until the end of the decade.
Generation X and dot-com will have major effects in the future. This 30-something Generation X cohort will be recognized for its entrepreneurial instinct since its members are starting businesses at unprecedented rates. They are economically conservative, begin saving at an earlier age, and seek the shallow information skimmed from a CNN or a USA Today rather than absorb in-depth reporting.
Members of the dot-com generation, now entering their 20s, are proving to be even more business-oriented. Twice as many say they would prefer to own a business rather than be a top executive. By a factor of 5 to 1, they would rather own a business than hold a key position in politics or government.
In summary, the corporate and business culture of the baby boomers is a mismatch for these advancing generations that thrive on challenge and opportunity. It is more than cash that they want. They understand the need for lifelong learning because that is the way life has always been for them. In addition, as both customers and employees, they will demand even more advanced telecommunications and net-based transactions. Consumerism is still growing rapidly. Because consumers will increasingly have access to and information about pricing, services, delivery time, and customer satisfaction through the internet, the consumer marketing battle will see a halt in the decline of prices and a counter-prevailing shift to service improvement and salesmanship.
In the end, however, fixed pricing will fall out of favor as goods and services are sold through online auctioning. The proponents of the need for improved customer service will be proved right. To quote the report, "as prices fall to commodity levels and online stores can list virtually every product and brand in their industry without significant overhead, service is the only field left in which marketers can compete effectively."
Lorraine Ketch, the director of planning in charge of Levi's trendy Silvertab line explained, "This audience hates marketing that's in your face. It eyeballs it a mile away, chews it up and spits it out."
As expected, branded items with dominant reputations will remain powerful and in demand.
http://www3.interscience.wiley.com:8100/legacy/college/kotabe/0471230626/text_cases/bmw.doc
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