Toyota Company is one of the leading motor vehicle manufacturers in the world, considering that most of its products are found all over the world. The manner in which the management does its marketing is segmenting the customers depending on value. This type of division of customers implies that the marketing team does research which entails finding out the type of vehicles that are required by the people depending on external factors like economic power, geographical conditions, and general preference. For instance, in developing countries, the company has specialized in producing vehicles that are cheaper and efficient in terms of consuming fuel and the cost of maintenance (Rowland).
The approach is also societal oriented in the sense that the management does not only think about the benefits that the company can get in terms of making high profits but also ensure that the needs of the customers are met before anything else. The company has achieved this through various activities that are indicative of social responsibility, like helping in cases where both natural and artificial disasters take place. For instance, the company has partnered with the Red Cross by offering the Toyota Land Cruiser vehicle to serve as ambulances and vehicles for carrying relief material to areas that are very remote (Rowland). Such areas require hardy vehicles, and this particular brand is one of the best for using to access these regions. The societal approach also brings in the issue of using various social media platforms to interact with their customers, especially in cases where the company was forced to recall some of its vehicles as a result of serious fault issues with the braking system. As all these happen, the management also focuses on ensuring that the employees have a comfortable working environment which would enable them to serve the clients in a proper manner (Rowland).
Toyota Marketing Strategy
The marketing mix incorporated by the company is one which reflects on strategies of the organization which guides the way it interacts with the market that it targets. Considering that it is one of the leading companies in terms of manufacturing vehicles, the target market is one which is diverse considering that the marketing teams take into consideration local and regional conditions of the markets. The target market of the business is one that takes into consideration various characteristics in vehicles. The first is concerned with durability, where most customers want vehicles that are durable. Secondly, the company targets people who want vehicles that have resale values that are relatively high (Rowland). For instance, in developing countries, many people acquire second-hand cars, and sellers would always go for automobiles that can easily resell. Thirdly, the target market of the company is one where the issue of maintaining a car is of great concern. That is the primary reason as to why most spare parts from Toyota are very cheap, and at the same time readily available for customers. Fourthly, most Toyota clients have developed a sense of conserving the environment, and as such, they have also come up with the need for using cars that are eco-friendly. Toyota as a company took that into consideration before other companies and developed a brand that implements green technology.
Toyota Corporation is one of the best-placed brands in the market, and people have developed a liking for the brand. Socially, most people, especially in the developing countries consider Toyota as a symbol of higher status within society (Rowland). For instance, models like the Prado and Lexus are vehicles that place their owners at a higher level within the social ladder. Demographically, the management of the company is aware of the fact that people have different preferences regarding vehicle models, and at times it goes deeper into age and gender coming in as a determining factor. For instance, many women prefer cars that are smaller and fuel efficient, while males prefer four-wheelers that are relatively bigger. It is for that reason a woman would go for a Toyota Vitz model, while a man would prefer having the Toyota Noah or Voxy considering that it is bigger.
The case is almost the same when looking at the roles of family and working women, considering that the company is aware that different family roles determine the kind of vehicle that one would want to own. It is for that matter the company has vehicle models that are meant for families that are large, while there are those that are meant for families that are relatively smaller. Finally, there is also the issue of ethnicity where the company recognizes the fact that ethnicity determines the preference of vehicles. It is for that reason in the United States, most adverts from Toyota based on the target customers. There are advertisements meant for the African American, the Native Americans, and the Hispanics.
All the successes that the company has achieved does not imply that it has never faced any problems, considering that there was a time when it had to recall more than one million hybrid cars as they had technological issues. Their breaking systems were not safe, but the organization dealt with the issue in the smoothest of manners, considering that it did not lose much with regards to its market share (Gayle).
Toyota Ethnic Market
As a company, Toyota recognizes that people from different ethnicities have varying preferences in terms of car models. It is for that major reason the organization has different advertisements that are meant to target one ethnic group. For instance, in the United States, the Toyota Camry model is one that many people consider as being boring, but the manner in which it is advertised depicts that it is not boring. Since many African Americans prefer loud music in their cars and the advert depicts a manner driving it with loud music. The essence, in this case, is to make the car loveable by people from certain ethnic groups (Deegan). Toyota can do more to make people love specific vehicles using targeted marketing, where they send emails and letter to a selected group while explaining the benefits of owning the same. At the same time, the marketers can also get feedback from people regarding the drawbacks of a given model, and what the company needs to do to make it better. The same can then be incorporated into future models so that people can develop a liking for them (Deegan).
Despite Toyota Corporation having the status of being one of the leading car manufacturing companies in the world, it faces stiff competition from other organizations that make vehicles. The three major ones include Nissan, Honda, and Ford. The main reason as to why they offer the most competition is the fact that they produce vehicles that are almost of the same specifications as those that Toyota produces, and the pricing is also almost similar (Warwick).
One of the main reasons as to why the company has maintained a competitive edge over its rival companies is the fact that it has vehicle designs that are better in terms of being more conservative, as opposed to the European manufacturers who have had designs that are progressive. Evidently, most of these competitor companies often copy the designs that are developed by Toyota. For instance, the design of the Honda Fit is more or less the same as that of the Toyota Vitz model that was created many years before its Honda counterpart. Besides that, the brand position of Toyota within the market is better-placed that those belonging to its competitors in most regions, especially in the developing countries (Warwick).
For instance, Toyota boasts a market share of more than 40% in Sub-Saharan Africa, where the remaining percentage is shared among the other brands. Low prices of vehicles are not the only reason for this, as the Toyota came up with a strategy where its motor vehicle spare parts are also easy to find and are relatively cheaper than those of other brands. Despite this positioning, the company can still do more in terms of ensuring that they offer quality after-sell services to customers, in addition to making most of its spare parts cheap (Warwick).
Toyota Web Presence
The presence of the company on the web is very strong, as that is one of the major tools that have made the brand to develop immensely. The website of the company is one that is very interactive, as it allows for people to view the latest vehicle designs that are in line for production, while also viewing some of the models that they can purchase. It offers a capability of ordering vehicles online, besides also buying spare parts. Considering that there are many distributors of its products all over the world, the website directs one to purchase outlets depending on their locations, or where they would prefer to have the same goods delivered. The best part of it is that the website is effective when dealing with the cycle of the buyer decision, as one can navigate through various products before making a decision. It has a provision where one can also give their feedback without necessarily being a potential customer.
Deegan, Kevin. "Toyota Targets Ethnic Groups With New Advertisements. Will Other Companies Follow?." Pitt Business Review. N.p., 2017. Web. 6 Mar. 2019.
Gayle, Jack. "Toyota Recalls 1 Million Hybrid Cars Over Technical Problem." Phys.org. N.p., 2018. Web. 6 Mar. 2019.
Rowland, Christine. "Toyota'S Marketing Mix (4Ps) Analysis - Panmore Institute." Panmore Institute. N.p., 2017. Web. 6 Mar. 2019.
Warwick, Ben. "Toyota Vs Competition | Balise Toyota Of Warwick." Balise Toyota of Warwick. N.p., 2018. Web. 6 Mar. 2019.
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