It is the marketing activities that provide extra value or incentive to the sales force, distributors, or the ultimate consumer and can stimulate immediate sales. (Frances B. & Stephen P. ,2005) It is frequently used in what is a highly competitive market. Also, nearly 70% interviewees are interested to the car’s brand promotion activities, it shows the car’s brand promotion activity such as gift and prize is playing an important role to stimulate customers’ response to the referable car brand.
Price promotions and are popular used by car brands. Skoda and BMW favor using product-based promotions which are aimed primarily at loading up the customer by offering bigger offers. They seldom use money-based promotion which relates to price cutting in order to avoid the image of their brand being cheapened. Direct marketing is a term used to refer to all media activities that generate a series of communications and responses with an existing or potential customer (Chris, 2002).
According to figure 9, 90% of the interviewees prefer drawing prize by e-mail, because of the convenience of the internet which offers the fastest response among other ways of drawing prize. Therefore, both Skoda and BMW have offered some kind of direct response mechanism (text or mail through internet and mobile phone) to encourage direct response and communication between them and consumers. In recent year, BMW has invested a huge amount of capital in direct marketing section in order to boost up its brand position in the UK market and stimulate future sales.
For example, BMW keep their customers’ personal details when they purchase BMW’s product. Then afterward, in occasion of advertise new products or activities, BMW will send an e-mails, texts and cards to their customers. Simple personal details need to fill in after purchasing BMW’s products such as name, birth date, address and email address. Customer database would be created under the system and build a good relationship between the company and customer and help to target customersMarshall and Cook (1992) found that event sponsorship (e.
g. World cup) is the most popular form of public relations activity undertaken by organization (Chris, 2002). Sponsorship is one of the most effective communication ways to communicate with the public. It is indeed an indirect promotion for the brand image which is surely being aware after the sponsor activities. Both Skoda and BMW has been using sponsorship strategy in recent year to reach wider targets audiences. The most popular sponsorship in the automotive industry is racing activities.
For example, Skoda has signed a contract to sponsor the Tour de France since 2004(23412). Similar to Skoda, BMW has also had a contract with the famous Formula 1 racing and they even registered as one team to take part in the well-known racing game. Moreover, BMW seem to be fiercely in competing with other brands, currently, BMW is the biggest sponsor of the PGA championship (The European Tour’s flagship golf tournament) and one of the main sponsors of the Olympics 2012 in London.
Personal selling defined as an interpersonal communication tool which involves face to face activities undertaken by individuals, in order to inform, persuade or remind an individual or group to take appropriate action. (Fill, 2002). The main business partners with Skoda and BMW should be retailers and organisations. They are the middleman who buys cars from BMW and Skoda and sell them in their garages or showroom and thus public can purchase.