IntroductionThe Toyota Corporation has a unique business philosophy, even in the hard times of the economy they stand up and out for their employees and their business processes. Toyota’s mission statement is “To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America” (Toyota.com, 2011).
They have exceeded in their mission to do this as well as in their vision to be the most successful and respected car company in America. In this document we will discussion in detail the business goals and objectives of the Toyota Corporation which fall under their philosophy also known as the “Toyota Way”. We will also explain our marketing objectives to meet the business goals and objectives of the company’s plan, a customer profile, as well as the tactical marketing strategies that we will use to implement the marketing plan. Business Goals & Objectives of Toyota
One of the most important principles of the Toyota way is that long-term goals should take precedence over short-term profits. Toyota believes that as long as they continue to invest in long-term research, development, and in their people that they will have met their business goal of maintaining their unique business philosophy. This is also why they make such a deep long-term commitment to the environment.
Their other objective is their single-minded focus on quality. The business goal of maintaining quality assurance and their commitment to quality is also strongly upheld. Employees’ of Toyota have the right to stop production in order to address a question of quality. “Toyota aims to achieve long-term, stable growth in harmony with the environment, the global economy, the local communities it serves, and its stakeholders Internal Environment” (Hiroshu, 2003).
Other goals identified for Toyota are as follows, “Achieve market supremacy by providing excellent service and innovative products for Toyota Customers; Deliver quality service and timely support by utilizing manpower resources and potential, capitalizing on technological advancement, and transparent management; Achieve corporate growth and ensure stability and profitability through efficient financial resource management, thereby benefiting customer, Toyota Family, and society; and, Promote professional growth by acknowledging performance and developing a culture of trust, mutual respect and harmony, thereby increasing team members’ morale” (Hikz, 2011).
The goals and objectives of the Toyota Corporation identify both quantitative and qualitative goals. The goals of the Toyota Corporation are also aligned with their mission statement as stated in the introduction of this document. Marketing Objectives
The Toyota Corporation stands strong on its economical and safe production of vehicles and protecting the environment, therefore we believe that the marketing objectives should fall in line with the business goals and objectives of the company’s plan as well. Toyota was the first car manufacturer to make the five Star Safety Systems standard on all automobiles. Consumers look for a safe and secure atmosphere for themselves and their passengers, and our first marketing objective will resemble this key point and make safety a key marketing objective.
“Two strategic themes underpin decades of Toyota advertising and marketing which are equate Toyota with quality, and create a visceral connection between the company and the car buyer” (Connelly, 2007). Our next objective will be to continue to focus on emphasizing the positive experiences of ownership and vehicle quality. The ownership experience has been targeted in many slogans by the Toyota Corporation and has been one of their business objectives since before 1980. Target Markets/Customer Profile
Toyota is known for selling long-lasting, family friendly cars, trucks, and SUV’s. The target market of Toyota is wide and vast as they have vehicles ranging from the sporty version of the Camry, the Solara, to the luxury sedans with their Lexus line, and even something for the blue-collar working man with the Tundra. In this particular session we will maintain focus on one particular vehicle product by Toyota, the Camry.
The target market for the Toyota Camry consists of individuals from 18-60 years of age with a yearly income of $30,000 to $55,000. According to JD Power, buyer demand for the 2007 Toyota Camry is medium with 26% of buyers over the age of 56 and 55% of the buyers is male. These are just the buyer demographics for this year, make, and model. The Toyota Camry newer models have increased female buyer demographics especially with the sporty Camry Solara. The purchase of used Toyota Camry’s is greater in the female demographic than that of the male.
Toyota’s primary target market however is the 16-21 year old market as the first sale is the most crucial. According to Art Spinella, vice president of CNW, states that “the chances of that person buying your brand again is almost seven times as great as it is getting someone else to come in and buy your brand” (Grimm, 2011). This is why Toyota among many other automakers are targeting the younger individuals also known as Gen Y as they make up for over 500,000 in new car purchases yearly and are able to purchase cars earlier in their lives. Tactical Marketing Strategies
“Tactical Marketing” is the execution of your marketing plan, such as generating leads, placing media, creating marketing tools, and implementing a follow-up system (Cavell, 2011). In other words, it’s the medium in which your message is delivered. For our implementation of the marketing plan for the Toyota Corporation we will use a variety of advertising mediums, promotions, and point of sale activities. These tactics are both cost effective and cost efficient and still communicates our message to our audience. We will also use new media tactics to implement the marketing plan. One of the most effective and affordable new media tactics is referral programs.
According to a May 2007 article in Forbes magazine, “referral programs are among the most effective and affordable marketing tactics. These programs leverage word-of-mouth principles to reward customers for bringing your business new customers” (Kokemuller, 2011). Another tactical marketing strategy we have found is the effectiveness of online marketing campaigns. According to research we completed in March of 2011 for Charlotte Russe, a mall-based clothing store, “online marketing campaigns allows the marketer to discover and keep track of target markets based on demographics and other segmentations” (Hopkins, 2011).
If we used online marketing as one of our marketing strategies we could monitor the effectiveness of the marketing campaign as well as document the results to allow us to find the most profitable marketing channels online. We will also use social media as a tactical marketing strategy. It is proven that Gen Y (generation y) or individuals between the ages of 16 and 21 are purchasing new vehicles versus used vehicles and they make up over 500,000 in new auto purchase every year.
Therefore, Toyota will need to adapt to this age group and begin marketing to them through the avenues and mediums that they use. One of the most effective and cost efficient mediums for social media marketing currently is the use of FaceBook Ads. Conclusion
In conclusion, Toyota’s target market should shift from an older age demographic to the younger age demographic. This will result in more profits and sales also. Toyota will have to identify the needs of these younger individuals to properly market to them, as well as find the marketing mediums that will most effectively communicate the Toyota message to this group.
The use of various marketing mediums will aid us in our tactical marketing strategy to ensure proper implementation of our marketing plan. The marketing objectives that we have drafted should also coincide with the business goals and objectives of Toyota. They should be SMART goals, which are specific, measurable, attainable, realistic, and timely. We believe that the tactical marketing strategies that we have identified for Toyota are proper for their purpose however just using tactical marketing strategies leaves us open to mediocrity.
qTherefore we will use the tactical marketing strategies defined herein along with a strategically marketing strategy. This in turn will ensure that we do not waste countless hours and thousands of dollars without a strategy in place. We understand that tactics cannot stand alone without strategy. Tactics are simply the way or method we will use to meet a goal or objective. Strategy is also needed because strategy is the planning and managing of those tactics.
ReferencesAbbott, R. (2011). Is your marketing strategic or tactical? Retrieved on July 11, 2011, from http://ezinearticles.com/?Is-Your-Marketing-Strategic-or-Tactical?&id=99423 Colorado Technical University Online. (2011). Mkt380-1103a-01: Applied marketing management: Phase 1 individual project. Retrieved on July 9, 2011, from https://campus.ctuonline.edu/pages/MainFrame.aspx?ContentFrame=/Home/Pages/Default.aspx Cavell, J. (2011). Strategic vs tactical marketing. Retrieved on July 11, 2011, from