Evaluate Marketing, Management & Planning in Toyota: Segmentation, Targeting, Positioning, Marketing channels-Delivering Marketing Value (Coursework Sample)

Name of the student:
Title: UGB246 Marketing Management & Planning-Toyota
Supervisor;
Subject: Marketing
Date of submission:
1.0 Introduction
1.1 Purpose of the report
This report intends to examine marketing techniques and models that are used in motor manufacturing and specifically the automotive manufacturing company known as Toyota. How the company manages its marketing planning as well as pricing will be examined. Upon close examination of the company’s operations, relevant recommendations will be made. This report also intends to merge the practice of the Toyota Company in marketing of its products with the relevant theory. This report will also focus on the competition that the company faces from its peer companies. It will examine the company’s competitors and the strategies it employs to survive in a competitive industry. The paper will also try to look at different theoretical approach that the company has/can use to improve its operations.
1.2 The brand
The history of Toyota dates back in 1933. The company concerned itself with the manufacture of the locomotives under the leadership of the founder’s son Kiichiro Toyoda. The company manufactured its first vehicles in 1935, The A1 passenger car as well as the G1. Ever since, the company has grown tremendously. It has manufactured different designs of cars and more to that Toyota has become the world’s largest motor seller. In 2008, Toyota was declared the number one selling motor selling company in the world. A part fro selling vehicle, the company offers other services such as leases of vehicles and offering insurance services to its customers.
2.0 Competition
The concentration of the market share in the industry is low. The motor manufacturer industry is considered to have a low level of concentration. There are four automakers who dominates the industry and who account for only one-third of the world revenue.(NKOMO, T,2013).
Toyota faces stiff competition from in car market. The competition increases day in day out with most of it coming from China, South Korea as well as Eastern Europe. The competition coming from the Volkswagen group and the General Motors cannot be underestimated. These two companies have intensified their competition than ever. (MENGHANI, J, 2014).
However, the company has come up with strategies to deal with this kind of competition which there is nothing much that can be done. The company has found innovative ways of curbing competition from its rivals. One of them is by regular introduction of new products, reducing product prices, increasing market segmentation and investing in innovation. For instance the introduction of the Yaris which is highly affordable and reducing the cost of acquisition of the older types of Toyota is one of the strategies employed by the company.
Competition is largely intensified by quality and features of products. Other factors that contributes to rivalry in this industry are pricing, the time taken to innovate a product and the fuel economy. Toyota seems to emerge triumphant in this kind of competition putting into consideration that it is the world’s most selling automotive company.
2.1 Costumers of Toyota
Toyota has recently targeted the urban street youth by manufacturing by launching the Aygo. This vehicle is a convertible with unique features intended to be youth inclined. The vehicle captures dance and DJ culture. ( Friesner, T,2014,)
Toyota has a worldwide presence with its customers coming from diversified locations. The company has grown to be a huge multilateral corporation. It has expanded its market to the rest of the world and has recently displaced the General motors from its top position of the most selling automotive company in the world. As at 2008, Toyota had emerged position one in the list.
2.2 Segmentation, Targeting, Positioning
The concept of segmentation was first established by Smith in 1957. This method involves and i grouping targeted consumers according to their needs. The objective of segmentation is to identify and group people whose needs can be met by a single product. This helps by order to concentrating marketing efforts of a company or firm.( BLYTHE, J 2005pg 75). A segment must be measurable, accessible, substantial, congruent and stable.
It is a matter of fact that Toyota intends to attract a completely new type of customer with matrix. Its focus is to satisfy the tastes of customers who embrace a youthful and a trendy lifestyle. While doing this, the company is keen to be practical and reliable. The segmentation has been done in four segments of the targeted customers. These segments includes Motivated Students, Aspiring Singles, Active Intellectuals and Domestic Achievers.( Benoit ,E .(undated)
Targeting involves selecting which segments accompany want to aim as opposed to Segmentation which essentially concerns itself with separating up the market. Thus, targeting is about the realities of engaging in business within the market. The two are clearly closely linked, since the. Toyota Company has applied these concepts in doing its marketing as stated above. It is important that a company do segmentation as it becomes easy for a company like Toyota to pinpoint the most promising and profitable segments and thus the company ends up achieving its goals.
Finally positioning involves the relationship of one brand with another. Positioning usually aims at the like segments. It is more about the perception or the positioning of the brand in the costumers mind in relation to other brands.
Toyota is the largest automotive company in the world. It is the largest manufacturing industry in terms of volume, capital as well as the capacity of employees it engages. It also records the largest annual turnover. Hundreds of companies have jumped over to grab their own provision in this industry. Toyota recorded revenues of $202, 864000 in the year 2007 (Yahoo Finance, 2007). This was an increment of 13.28 percent higher than the sales recorded in the year 2006. The company recorded profit of $189, 64000 that year. Its sales are made in more than one hundred and seventy whereby it records more than 5.5 million vehicles per Annam.( Toyota
In 2014, Toyota recorded sales of 175,178 units. This was up 12.2 percent compared to the previous sales. The total division sales for the year amounted to 2,062,382. This was 5.1 percent increment.
3.0 Evaluation of market prices
This involves the process of assessing the market prices of the products a firm is engaging in. Evaluation of prices calls for evaluation of even the prices of rival companies. Toyota slashed the prices if its Toyota corolla as a means of attracting more customers. It could not have possibly arrived at this decision of it was not aware of the competitors prices of the like products of other firms manufacturing the same products as Toyota. In such a case, Toyota would need to know the existing prices as set by its peer companies.
3.1 Products and Services
The company offers wide range of products. It offers leasing, credit and other products. Leasing products includes Toyota leasing, Toyota rent Toyota rent plus and Toyota forklift leasing. Credit products include Toyota Kredit, Toyota Genio, Toyota Vario and Toyota Forklift Kredit. Other products are insurance offered to Toyota cars.
Toyota has continued to add customer value not only by offering them quality automotive but also other personalized services which has helped in building customer value.
3.2 Pricing
Pricing is one of the key things that a marketer must do. It is not only necessary for profit making but also to determine the quantity of products that will be offered for sale. (BLYTHE, J 2005pg 169).
One of the strategies thought to be effective for pricing was set by classical economists who thought that the price would be set by rules of demand and supply. For instance, Toyota would decide to set low prices for those cars whose demand is low in view of increasing sales.
There is the cost based pricing which is not customer oriented. This method of pricing may be suitable for Toyota for profit purposes. The cost of manufacturing the Product curated and overhead costs distributed such that cost of in research and development Costs are included during pricing. A fixed percentage of the profit is also added. While this method may be profitable for Toyota, it would scare away customers.
There is also the Mark-up pricing which is identical to cost based pricing. The only different is on usage. This method of pricing is mostly used by retailers. Normally, a retailer will acquire stock and add a fixed percentage of the buying price in order to arrive at a profitable selling price. This method would not work well for Toyota as the firm company concerns itself with manufacturing of products as opposed to retail.
3.3 Customer-based pricing methods
Even though this methods of pricing do not mean selling products in the lowest prices possible, this methods takes into account customers needs. They include customary pricing and demand pricing. Again these methods should not be the best for Toyota; they should only be utilized to clear off non moving product, to curb competition or to promote certain products. We not that promotion is one of the marketing strategies as presented in Kotler’s theory.
3.4 Marketing channels-Delivering marketing value
For instance, Toyota has embraced technology in all aspects of its operation. Customers are able to administer leasing and credit contracts by use of the application found in the company’s website from any part of the word. This tool is called my Account. This tool is has been designed to provide clients with relevant information concerning contracts that has been concluded. They can also access payment det...