Toyota is a motor manufacturing company that serves almost 0.35 million people globally. This company is unique as compared to other auto manufacturing companies because, although it has the same product development process as other automakers, its entire tier supply processes are different. Toyota Company has incorporated its tier procedures into the overall manufacturing and branding process. In addition, its joint venture with other auto manufacturing companies such as Mazda and Nissan has made the company gain a bigger market share as compared to other auto manufacturing companies (Liker p.14). This company always fights to upgrade not only its products in the market but also its employee’s welfare, which is the main pillar for its development. This paper will present some thoughts about marketing strategies used by Toyota, and future plans to improve its product delivery.
Toyota is a company proud of its good reputation in world markets because, Consumers of its products have always appraised its product innovations, correct management policies, and growth in profits. The company not only manufactures finished autos but also deals with auto accessories and spare parts. The main types of autos manufactured by Toyota include passenger vehicles, vans, sedans, SUVs, cars, and wagons (Alacra Para. 1). Examples of these vehicles include Toyota Tacoma, Tundra, 4runner, Rav4, land cruiser, corolla, Venza, Matrix, Camry, and highlander hybrid. The majority of Toyota brands have undergone many modifications to meet current demands. For example, the modification of the Toyota symbol and the launch of the new AA Toyota model car into the market have greatly contributed to the success of the company. Its product innovations made it topple GM in 2008, as the best auto company in terms of profits. Examples of Toyota’s future brands include Sienna hybrids and the Camry hybrid (Toyota p.1).
Struggle for improvement is the main Toyota’s aim whereby the company always ensures its product innovations meet market demands and fluctuations. To adapt to changing technologies Toyota has come up with new technologies such as the Fine-N, an auto technology that uses primarily a fuel cell. In addition, the company has future innovations such as CS and S roadster, which receive power from the hybrid synergy. Its engine technology also has greatly contributed to its increased market share, in that the company always fights to manufacture engines that minimize emissions at the same time reducing fuel usage. This has led to the company introducing the improved valves commonly called variable valves (VVT-I). In addition to product innovations, product safety in its products always takes precedence. To improve the safety of its products, the company has developed improved steering and braking systems in its autos that maximize driving safety. On the other hand, the introduction of computer simulations in some of Toyota’s new brands has ensured the safety of its auto’s users of all terrains (Toyota Para.1-3).
In the recent past, Toyota has been the world’s second auto manufacture, hence almost close to the world’s leading auto manufacture GMC. Its reputation not only comes from its products but also the affordable prices of its products. Toyota coins its pricing strategies in its extensive marketing strategies, which ensures all consumers receive products that meet their economical status. It has differentiated pricing strategies, which makes it better than other competing companies in the auto industry. The company works on the principle that more sales of its products depend on quality production, which minimizes production costs, within required time limits. The company ensures pricing strategies are used to maximize profits while ensuring efficiency and safety in its products. Its pricing strategies are sales-oriented, whereby profits are determined by simple formulae which depend on the manufacturing costs and selling price. To Toyota, product purchasers and the availability of the market are the main determinants of product prices. To ensure minimization of production costs, waste elimination takes precedence, which ensures the company always maintains its profit margins. The company uses the differentiation strategy to ensure customer satisfaction, hence gaining an enduring competitive advantage over other companies. In addition, another common strategy used by Toyota is the niche strategy, which ensures the company meets the demands of its customers from all economic backgrounds (Tracy Para.1-2). On the other hand, the company uses the penetration pricing strategy for some of its products, for example, the Toyota Prius, to ensure it receives acceptance among users (Gutsa Para. 1)
To meet its wide market demand, Toyotas uses many advertising strategies to familiarize its products among its users. To Toyota, good public rapport is the main factor, which determines its market segment, hence the Company uses both personal and direct selling options to promote the sale of its products. Due to continuous economic crises, the company has always fought to increase its market reach through market mix strategies. For example, due to the market mix strategy adopted by Toyota, its Prius has gained more consumer confidence than all other models, primarily because consumers view it as more economical (Gutsa Para1-2). The company uses wide media coverage to make sure that consumers always remain informed on new products, for example, posters, Television, Internet, and other electronic media. To promote well its products in global markets, Toyota always ensures its manufacturing process follows set standards, through continuous improvement of its production process. On the other hand, the company ensures its suppliers meet the set standards of its products no matter the manufacturing country and company (Kondrat Para. 8-10).
On the other hand, Toyota always aims to expand its international market share due to the popularity of its car brands internationally. This has made the company adopt international marketing strategies, which ensures the company’s products receive greater internal acceptance. Due to increased costs incurred during the importation of autos from the main branch in Japan, the company has worldwide branches, which the company uses for car assembly to meet regional demands (Greenberg Para.1-6).
Prediction of consumer behavior is another major factor of Toyota’s success, in that it helps the company to pre-determine consumer need variations. The company uses market segmentation strategies to determine and selects its markets. It uses market mix as the main measure in its marketing segmentation because through it the company is able to reach the wider market it serves, hence ensuring the satisfaction of its customers. The company ensures it meets its consumer’s demands through product innovations, which has really helped the company to meet the stiff competition it faces from other auto manufacturing companies for example Ford. Toyota always conducts frequently consumer surveys to determine the needs of its consumers, hence the continuous modifications of its autos in the changing global scenario. It conducts its consumer behavior using its human resource department, through introducing specific marketing enticements, which primarily depend on the market segment it wants to venture into. Considerations of both its customers’ interpersonal and intrapersonal characteristics play a central role in its market study and analysis. For example, research in the American market made Toyota introduce the Toyota Prius- Hybrid X, a fast and economical car, which has received wide acceptance among consumers. Customer reliability, value, price, and standards play a key role to Toyota in designing its autos. In addition, Toyota uses data from its sales and marketing to design autos that conform to market demand and standards. On the other hand, the company does collaborations with some higher learning institutions for example; Berkeley University and California University to experiment effectiveness of its products in meeting consumer demands (Simpson Para.1-6).
To improve on its marketing strategies it is important for Toyota to do a critical analysis of the market segment. Innovations should include an adaptation of current and hydrogen-powered autos. This is because these technologies are cleaner, efficient, and economical. The company should do adequate consumer research to ensure the company adopts correct marketing strategies, which will help the company to curb the presently existing completion.
In conclusion, for Toyota to shine in the auto world, the company should use potential customer lists, which will create new and effective dealership networks, hence broadening its market reach. In addition, sales monitoring will help the company to determine potential customers, hence structure its production strategies to meet customer needs. On the other hand, the company should price its products done via market comparisons with other auto companies, so that the company can set correct prices, which meet all potential customers’ economic status. Selling strategies adopted by the company should aim to meet set goals, which is possible through coining them with correct promotional strategies.
References
Alacra. Thomson financial business description, 2009. Web.
Greenberg, Paul. Toyota goes e-commerce alone, 2000. Web.
Gutsa, Nyash. Marketing mix in action: Toyota Prius, 2009. Web.
Kondrat, Alla. Production systems that made Toyota Successful, 2006. Web.
Liker, Jeffrey. The Toyota way: 14 management principles from the world’s greatest manufacture. New York: McGraw Hill, 2004. Print.
Simpson, Maryanne. Toyota announces R&D for standard current Prius, 2007. Web.
Toyota. Car review. 2009. Web.
Toyota. Technology, 2009. Web.
Tracy. Toyota marketing mix 4 P’s, 2008. Web.