The Marketing Strategies In The Toyota Company Essay
The Marketing Strategies In The Toyota Company
Toyota Company for the past many years have been known for its quality products and reliability. But the very creativity of Toyota in its businesses and projects which touches every aspect of life was hardly seen by the people. It is when the company tried to create an image for themselves showcasing their eco-friendly activities like participation in motor sports and also practiced corporate philanthropic acts. Toyota managed to develop great principles and philosophies which helped in the manufacturing of the various exclusive models of the Toyota Production System. Toyota’s success of the tools and the technologies is due to the following 4 P’s model which they follow very rigidly.
Philosophy à The company philosophy states that they have to drive the market by satisfying the stakeholders of the company who are customers, society at large, community and its associates.
Process à Following the right kind of process will yield better results in the short term and long term improvement process.
People and Partners à More skilled and confident people who have the zeal to learn and grow in the company help and value the organization success.
Problem Solving à Organizational learning and experiences take place only if there is a control mechanism for solving the problems and the issues.
Continuous improvement is still a better option which has been opted for. Toyota designs its strategies based on the concept of breaking down the jobs to develop specific work assignments which would be provided to the respective audience who will have the effectiveness in performing the task. Training processes needs to be sharpened by Toyota to meet up to its expectations. Toyota believes in developing the people by its rigorous and continuous problem solving mechanism which is in place.
Toyota since 2003 has been considered as the world’s second carmaker lagging behind GMC. With the attractive designs in its technology, Toyota has been regarded as the best among the auto consumers across the globe. It has made the reputation and brand not only for its attractive designs in the vehicles but because of its affordable prices, branding process and the marketing techniques that have been followed.
It has been successful in being different from other automakers because of the differential pricing mechanism. The segmentation and the targeting measures have been streamlined in way that each customer’s needs and wants have been effectively satisfied. Toyota uses a strong definition to describe its business entity by marketing its business line as being fuel efficient, environmentally friendly and having better quality products and also it marketed as being a funny and entertaining in terms of its promotional campaigns.
Although Toyota gained enough revenue because of this unique selling proposition, still the masses considered it as only a fun company. Hence it decided to start up a new brand named Lexus targeting the luxury car market which it thought of marketing as a separate company with no relation to Toyota. This project was successful because of it better customer support services and a strong distribution network.
Despite all the innovativeness shown, Toyota faced a crunch and a problem in their Demographic segmentation with reference to the age factor. It targeted an average age to be 47 as compared to the industry average to be 45 and hence choose to design a marketing campaign for the youth segment to influence them in buying Toyota products. Thus it started manufacturing and designing sports utility and youthful models to target the younger youth segment.
To make this youth project a success it promoted its products on youth oriented media like MTV, sports channels; highlighting its brand philosophy on the websites in a flamboyant and a loud manner and by sponsoring various live programs. They were so practical and disciplined in their marketing tactics that they followed the concept of no negotiation in their prices and also providing no pressure on the customers to force their buying there by encouraging vehicle customization for its customers to enforce their purchase decision.
The success of Toyota is regarded for its ability to identify the newer growth opportunities thereby achieving greater market development and product development thus capturing them in a timely phased manner. It also concentrated on downsizing wherever required so as to minimize on the resources which did not produce results.
The unique characteristics of Toyota’s marketing strategies is that it has kept aside the traditional marketing tactics like surveys or focus groups or case studies but has adopted techniques like participating in parties, clubs, art galleries :thus helping in creating a balanced rapport with the youth.
Toyota felt that the marketers shouldn’t use marketing gimmicks to attract the customers but to devise strategies which convey the messages in a straightforward, authentic and undemanding manner. Publicizing their product range in music CDs was another plus point for the company. Websites were the point of grievance handling and a focal point for providing feedback and suggestions in an interactive manner.
Toyota thus has created a niche for themselves because of its economies of scale, global brand name and highly equipped and skilled engineers, all of which have been contributed in the best manner to showcase the company positively.
Cina, M. (2002). “Toyota Uses Unique Marketing Strategy For Scion.” Retrieved on April 4, 2008, from Popular Mechanics Web site: http://www.popularmechanics.com/automotive/new_cars/1270196.html
Liker, J. Et al (2005). “The Toyota Way Fieldbook” 1st Ed, New York: McGraw Hill.
Wittens, S. Et al (2006). “Toyota: Developing Strategies for Growth” Retrieved on April 4, 2008, from Life in Motion Web site: http://lifeinmotion.wordpress.com/2006/12/23/%E2%80%9Ctoyota-developing-strategies-for-growth%E2%80%9D/