The motor vehicle industry has got many companies which are very competitive. In this industry we have dominant companies such as General motors of United States, and Toyota Motors.
Toyota Motors Corporation is a Japanese company that has been doing very well in the motor vehicle industry. They have outperformed other established companies like general motors and Lang lover motors. Toyota Motors has been improving on its performance over the past targeting customers within Japan, America, and China. Toyota Motors has been applying different marketing strategies to attract its customers to Japan, America, and China. But the same strategies applied in America have worked in China.
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Toyota Motors is a Japanese company that produces both small and large vehicles. It has been performing very well over the past even outperforming dominant companies within the motor vehicle industry.
In addressing the United States market Toyota motors had spent more resources, than it does within Japan. This is so because in America there is stiff competition from well-established companies like general motors. Toyota has applied different marketing strategies in Japan like advertising its vehicles by use of magazines and television, while in America it has used celebrities and role models on top of television and magazine. Also Toyota has marketed it vehicles in Japan by identifying its market segments and serving them appropriately, while plotting an invasion sequence in targeting United States customers. To address the Japanese market Toyota Motors corporation has applied strategies like sourcing abroad and being customer oriented while applying different marketing strategies in America like forming of strategies alliances between major international companies in the united states to capture the Americans. Also Toyota Motor has lowered its prices to attract the American market.
Toyota motors is a Japanese company that is competing with other Automotive companies like General motors and Ford of united states, Volvo, Mercedes and Volkswagen of European and Nissan and Honda of Japanese within the automotive industry.
Automotive is a very competitive industry that requires competence, regular improvements and innovations. Toyota Motors Corporation has been struggling with the market for its motor vehicles in China. Toyota’s original approach was to market their motor vehicles in China in the same manner as they do in Japan. However, there has been a change in strategy. Toyota has decided to try the marketing approach used in the United States.
Toyota Motors has employed different marketing strategies in Japan and in the United States. Since Japan is the producer of Toyota vehicles it has to employ more intensive strategies when dealing with the United States, since in America we have very strong automotive companies like General motors and ford. Toyota Motors advertises its vehicles in Japan by use of magazine and Television. But in the United States Toyota motors advertises its vehicles by use of extra more efforts. Apart from using magazines and television in advertisements role models and celebrities are used in its advertisement. Toyota Motors has been creating awareness of the vehicles it produces to Americans by the use of role models and celebrities. In order for Toyota motors to outperform general motor, ford and other European countries within United States it has spent more money in the sales promotion.
Toyota has successfully sold its vehicles within Japan by discovering new market segments. Toyota has known the needs of various groups of people, and then it has produced the vehicles with the attributes and characteristics of those groups. Toyota Motors has produced various types of cars meeting the needs of the Japanese market, for example, sports cars and saloon cars have been produced serving Japanese market. Toyota Motors has plotted an invasion sequence in targeting the United States market. They first planned and gained a foothold in the American market, by first introducing small cars into the market. They later increased the number of cars, and then they introduced bigger cars and they eventually introduced luxury cars. Toyota motors used this as a launching pad for successive invasions. Toyota motors served the American market with all types of cars they demanded, and competing favorably with general motors. The Americans also came to realize that Japanese cars had a higher quality and they are economical in fuel consumption (Kotler P., 1989).
Toyota Motors Corporation has been customer oriented in serving the Japanese market. They have served customers to their satisfaction. They ago ahead to asking what Japanese customer want, and what type of car they want, which features they prefer most in their cars. Therefore Toyota has promoted customers satisfaction within Japan. For Toyota to venture to the United States market it has formed strategic alliances between major international companies in the United States in order to capture the American market. For example Toyota formed strategic alliances with Ford Company that assisted it reach the American market with ease. By the formation of these alliances with American companies Toyota motors has been able to serve more customers (Kotler P., 1989).
For Toyota motors to serve the Japanese market properly it has been sourcing abroad. Some features like styling have been done abroad to meet the need of the Japanese market, most of their styling is done in Italy. Like wise for Toyota Motors to fulfill the requirements of the Americans it has been lowering the prices of its vehicles. Since Toyota Motors Corporation wants to serve all its customers within the United States it has lowered its prices, so that most Americans can afford to buy their vehicles. Through lowering their prices Toyota has increased its volume of sales. The market share of Toyota within American customers has been increasing (Kotler P., 1989).
Toyota Motors has also ensured that its customer satisfaction index is high and keeps rising within its Japanese customers. Toyota has also ensured that its service satisfaction index is also high within its Japanese customers, by ensuring that customer satisfaction index is high Toyota motors has been able to fulfill the demand of Japanese. By so doing it will be difficult for any other competitor to serve this market. Service satisfaction index is a good and preferable attribute to most customers, therefore by Toyota addressing this within the Japanese, it is serving them adequately. Toyota Motors has ventured the American market by addressing specific customers. Through specialization in services needed by specific customers Toyota motors has been able to serve the American market (Kotler P., 1989).
Toyota Motors Corporation has developed a better product line within Japan. Toyota motors has fulfilled the needs of its customers in Japan by developing a better product line by investing heavily in designing better small cars perfect in performance, quality styling features. To address the United States market Toyota Motors Corporation has been designing cars that meet the Americans standards. Toyota Motors has designed cars that recognize people of different income classes within America. Toyota has been able to capture the American market by producing vehicles meeting the needs of various classes of people within America. The rich people and middle class within America have been able to afford the vehicles produced by Toyota Motors Corporation.
In Japan Toyota Motors corporation has been using market structured sales force to promote its sales. Toyota Motors Corporation has a sales force that serves different market. Toyota Motors has been able to serve its customers well because it has a sales force that targets different markets within Japan. Toyota Motors Corporation has been improving its sales within united stated by offering its employees with a higher salary. Toyota employees in America earn a higher salary than those doing similar job in Japan. It has been done like so, to motivate the sales team in America, to sell more vehicles and also counter the influence of established motor vehicle companies like general motors.
Toyota motors give a 3 year warranties to its customers Japan. When customers are given warranties they believe the quality of the vehicles produce by Toyota Motors Corporation are of a superior quality. In addressing the America market Toyota motors has given them warranties and more other extra services. More sales promotion tools have been employed to address the American market. A free drive test is offered to customers in the United States by Toyota Motors that is aimed at stimulating buying within its customers.
The China market is more receptive to the strategies employed in the United States because Toyota motors has spent more resources to address the American market. In addressing the American market, all necessary important options have been exploited while dealing with Americans. If the same strategies are applied in china then Toyota motors will improve its sales.
By applying similar featured like those employed while addressing the united state in China, for example, the use of celebrities and role models, in their advertisements. Toyota motors will be able to attract the attention of the Chinese people. If other features like plotting an invasion sequence is applied while approaching the Chinese market as it was in the American market then Toyota motors will successfully sale its vehicles in china because this feature are addressing the real needs than one will be expecting within the automotive industry. The invasion sequence is likely to be appreciated in china because the most agent need is fulfilled before fulfilling other requirements (Kotler P., 1989).
Also the marketing strategy that is applied in United States can be applied in China because America has got people form all parts of the world. Since Toyota motors has fulfilled the needs of the people of United States then it can serve Chinese people without any problem.
Likewise for Toyota motors to serve American well, it has to compete favorably with market leaders within the automotive industry, like general motors. By competing successfully with American companies then similar strategies can be applied in becoming successful in china.
Toyota Motors has taken good marketing strategies that have enabled it to compete favorably within the automotive industry. To serve the Japanese, China and United States market, different marketing strategies have been successfully applied.
Toyota motors has applied good marketing strategies like plotting an invasion sequence, using celebrities in advertisement , lowering prices and specializing in some services in addressing the united states market. Similarly perfect market strategies have been applied to address the Japanese market like use of media to advertise, by discovering new market segments, being customer oriented and by outsourcing abroad. These are admirable marketing strategies that Toyota motors has applied in America, Japan and china and they should by applied globally to promote the sales of Toyota motors company.
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on Marketing research Toyota motors
Market analysis in the Marketing strategy of Toyota – Volatility in oil prices, currency exchange rate, increasing the bargaining power of customers and suppliers, rising labour costs, rising infrastructure costs, and government regulations are some of the factors affecting the operation of the companies in the automotive market.
The company has been expanding its markets over the last few decades. To ensure that it successfully enters into new markets, Toyota Motor Company has come up with a number of strategies. Improved marketing communication is one of the main strategies that the company has come up with to reach its target audience.
Toyota Motor Company used the media as their main communication strategy. This was in the print, visual and audio avenues. It also used direct mail method to send memos to its clients. The company also advertised the car during business conferences.
Brand equity in the strategy of Toyota- Toyota motor corporation is the world’s 6 th most valuable brand and is ranked 10 th in the list of global 2000 companies as per the Forbes Magazine. The automotive brand has been valued at $ 177 billion on the basis of market capitalization (May 2016 data).
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