Toyota Motor Corporation commonly known simply as Toyota and abbreviated as TMC, is multinational corporation headquartered in Japan. TMC is the world’s largest automobile manufacturer by sales and production. Toyota's marketing efforts have focused on emphasizing the positive experiences of ownership and vehicle quality.1
Toyota has been enjoying much success in the automotive industry. The roots for Toyota’s current success lies in it’s low production costs, maintaining high quality, producing a lot of different automobile types, and a very competitive price setting and high profit margins. Toyota Motor Corporation has become one of the world's greatest companies because of the Toyota Production System (TPS). Toyota introduced the first hybrid electric-gasoline car “The Prius”.
Dealer received many orders before the second generation Prius was just hit showrooms & the car even available. The Prius was an environmentally friendly car that helps to reducing energy consumption, gas & smog emission rates.2
Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and services based on qualities of those products such as price or function.3 Or we can say a group of consumers who respond in a similar way to given set of marketing stimuli. Consumers differ in their wants, resources, locations, buying attitudes and buying practices. Consequently, Company use market segmentation to divide the total market. Some criteria like gender, price & interest do little to inform marketers.
Toyota has products to different price points from lower cost scions to mid priced camrys to the luxury lexus. Designing these different products means listening to different customers, one of the marketing segmentation dues. Toyota also markets the scion at music events and will have showrooms where young people feel comfortable hanging out. Thus Toyota was able to attract different type of customers in a different way.4
Social marketing is the systematic application of marketing, along with other concepts and techniques, to achieve specific behavioral goals for a social good.5 The social marketing concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors, in a way that preserves or enhances the consumer’s and the society’s well-being. It is a possible conflicts between consumer short-run wants and consumer long-run welfare.
The societal marketing concept holds that marketing strategy should deliver value to consumers in a way that maintains or improves both the consumer’s and society’s well being. The purpose of social marketing concept is to maintain society’s long-term interests. The societal marketing concept calls upon marketers to balance company profits, consumer wants and society’s interests in setting there marketing strategies. Toyota builds the car mono-specs at the factory and let customers at dealerships choose from many customization elements.
Toyotas president Fujio Cho sees environmental performance as essential to the future of cars. Introducing such leading edge products present marketing challenges for example, the marketing messages must educate consumers that the prius doesn’t need to be plugged in as an electric car does. The marketing messages must also communicate the value of fuel efficiency not just for fuel savings for customers but for the environment as well.
Toyota’s marketing strategy for the lexus line focuses on perfection. Toyota markets lexus globally and understands that each country defined perfection differently. In some country luxurys mean comfort, size and dependability. Again in some country luxury means attention to detail and brand heritage. Therefore although the core of lexus marketing is similar, the advertising varies by countries.6
Marketing Challenges is part of Business Exchange.7 Major trends and forces are changing the marketing landscape and challenging marketing strategy. There are four major developments, such as, sustainability, the growth in not-for-profit marketing, the electronic market place and globalization. Sustainable marketing moves on from concerns with ethics in business and the need for business to behave with social responsibility as entities separable from sustainability. More forward-looking companies, however, readily accept their responsibilities to the world around them. They view socially responsible actions as an opportunity to do well by doing good. Marketing
has been mostly known as for-profit business sector. But nowadays it has become a major part of the strategies of many non-for-profit organizations. Marketing can help non-profit organizations to attract membership and support. The technology has created exciting new ways to learn about track customers, and to create products and services tailored to individual customer needs. It also helping companies to distribute products more efficiently and effectively, and to communicate with customers in large groups.
Globalization influences the marketing environment in two ways. Firstly, in the continued growth in the proportion of a country’s trade that is traded internationally. Secondly, in the disquiet many people feel about globalization. These days almost every company is touched in some way by global competition. Though more than any other auto manufacturer, Toyota has built its name on quality, it also faces marketing challenge. Introducing such leading edge products present marketing challenges for example, the marketing messages must educate consumers. The marketing messages must also communicate the value of the concept.8
Making and using a marketing strategy has a strong positive impact on profitability.9 The marketing strategy focuses on markets and customers. It is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.10 It determines the choice of target market segments, positioning, marketing mix, and allocation of resources.
The marketing mix is an important part of the marketing strategy. The marketing mix, which follows from your marketing strategy, is how you achieve that 'unique selling proposition' and deliver benefits to your customers. It is the set of controllable tactical marketing tools- product, price, place and promotion- that the firm blends to produce the response it wants in the target market.11 Product means the totality of ‘goods and services’ that the company offers the target market. Beside producing variety types of cars Toyota must provide better service.
They should give attention in the quality of cars, design and features with warranties. What consumers pay to get the product is called price. Some consumer can afford expensive cars, some can not. If Toyota list price, it would better for consumers. Consumer also expect for discounts. Toyota can sell there car’s by installments setting the time of payment. Promoting is an important part of marketing mix tools. It means activities that communicate the product or service and its merits to target customers and persuade them to buy.
If there are no proper communication with consumers, product wouldn’t be well known to them. Toyota have to advertise there products. By it there publicity will increase. Place includes company activities that make the product available to target customers. Toyota should make their product available in the consumers where they can buy and test drive and make their choice freely.
After Toyota’s case study I come to know Toyota is focusing in every sections. They think about consumer needs and wants, also the environment and ofcourse about there profits and publicity. Toyota has present them as a successful and one of worlds leading company.
1.http://en.wikipedia.org/wiki/Toyota#Marketing 2.http://www.nyenrode.nl/businesstopics/sustainability/Pages/KeytoToyota%27ssuccess.aspx 3.http://en.wikipedia.org/wiki/Market_segmentation 4.Kotler, Armstrong, Wong & Saunders (1996), Principles of Marketing, 5th ed., chapter 1, p. 14 & 47. 5.http://www.energy-behave.net/pdf/Social_marketing_concept.pdf
6.Kotler, Armstrong, Wong & Saunders (1996), Principles of Marketing, 5th ed., chapter 1, p. 19 7.https://lms.arabou.edu.sa/fall11/elibrary/businessandmanagement.php 8.Kotler, Armstrong, Wong & Saunders (1996), Principles of Marketing, 5th ed., chapter 1, p. 30-36
11.Kotler, Armstrong, Wong & Saunders (1996), Principles of Marketing, 5th ed., chapter 1, p. 49-51