I can't vouch for other parts of the world, but in New Zealand we must do things a little different. The BMW nonmenclature seems to have been throught the grinder in recent times... eg- my E46 318 is a 2.0L (go figure).
Lets come back to the badging, using the 318 as an example:
1. BMW NZ sells the standard 318i at about $US 37,000
2. You could go the upgraded 318i SE if you pay an extra $5,000. That gets you leather interior, foglamps, 7-spoke 16" wheels, parking sensor, auto-aircon & lots of other little things.
3. You can get the Motorsport kit upgrade, about another $4-5,000 on top of the SE price. They upgrade the suspension, put on the phat M 17" wheels & tires, front & rear spoiler, M steering wheel etc etc. They also delete the model badge, and put the ///M emblem instead.
It's still the SAME ENGINE as the basic 318i.
So should this car wear the ///M ??? Everyone knows its not an M3, M5, not pretenidng to either.