Integrated Marketing Communications And Marketing Strategies Of Toyota

Organizational Background

In present days marketing is essential for every organisation to trigger the sales volume for further growth. The companies are now focused on digital marketing to provide information with a view to new product launch, the specification of existing products to grab the attention of huge customers (Ottman, 2017). All the business organisations are using various promotional strategies such as word of mouth promotion, social media promotion to improve the overall financial position of the company. The company needs to research the whole market and also needs to recognise own ability before implementation of marketing strategies (Tuten and Solomon, 2017). Effective market research also helps management to gather data about the competitive market. This particular study mainly focused on the marketing practices of the Toyota Automobile. Identify the environment of Automobile industry also helps this organisation in improving its products leads to increase customer satisfaction as well as sales volume.        

Toyota is one of the largest automobile manufacturing companies all over the world. The headquarter of this company is in Aichi, Japan and more than three lakh sixty-nine thousand employees are currently working in this organisation. According to secondary data, it has been identified that in the financial year 2018, revenue of this company is $261 billion and the net income of the organisation is also high that means the current financial position is high enough to expand the business in other emerging market. Current the senior management is focusing on Hybrid electric cars due to the negative environmental impact of fueled vehicles (Toyota Motor Corporation, 2018). This organisation also used various marketing strategies through social media and digital media you improve the brand image more. The management of this organisation takes a long-term decision based on market research. Identify the market environment also provided this organization with huge competitive advantages in operating market (Olhager and Feldmann, 2018). The senior management of Toyota needs to take further marketing strategies according to fulfil the demand of customers, and that will help the organisation to improve its sales volume further leads to enhance financial profitability.

Marketing strategy is vital for all the business organisations to improve sales as well as increase organisational financial position (Ottman, 2017). Advancement of digital media also enhanced the overall marketing system so that company can use paid advertising, relationship marketing, word of mouth marketing, internet marketing, and diversity marketing, transactional marketing etc. to attract more customers toward the brand. Apart from that, use of 4P’s strategy, STP analyses also helps the company to enhance the overall company position effectively (Refer to Appendix-2).

Segmentation

This organisation also provides the right car in the right places. This company has segmented in various countries of the world. This organisation also made various car models for different customer segments such as based on income, lifestyle, and other requirements (Banerjee, 2017). Effective design of the vehicles also attracts all customer segments. The use of behavioural approach and identify the psychology of customers also helps this company to maintain a huge number of loyal customers. Apart from that, this organisation is now focusing on the hybrid electric card to fulfil the demand of customers that will create a less negative impact on the environment.

Evaluate the Application of Marketing strategies

Target

Based on Price, design and specification of cars it also targets the customers. Toyota also manufactured some high-performance car models for the high-income people, and it also produced economic class vehicles for the medium class people (Bitondo, 2017). Company launches high performance vehicles in high economy markets of developed countries and also launches the economy class vehicles for emerging countries. Not only personal cars or supercars but this organisation also produced the passenger cars and trucks, and it supplies its passenger vehicles in various public and private sectors of different countries.

Positioning

This Automotive organisation follows both low-cost strategy and differentiation strategy to gain more competitive advantages from operating market. The scope of this organisation is vast in the market for that reason the organisation has a variety of customers (Toyota Motor Corporation, 2018). It’s different types of vehicles such as SUV models; Sedan class general grabs the attention of many customers. Development of products is essential to maintain a good market position so that this company also spends a huge amount on research development works leads to increase in sales volume. According to research, it has been identified that both the brand power and brand value of Toyota is very high in comparison to other automobile organizations (Refer to Appendix- 1). So that, the brand position of this company is higher than other automobile companies.

4P Marketing Mix Strategies 

Use of an effective marketing mix strategy is important to increase the number of loyal customers as well as sales volume. Selection of proper price, place, product and promotion will also provide the organisation huge competitive advantages. The elements of Marketing mix strategy are described below (Refer to Appendix-3).

Product

Products are the main focus of all the organisations because the general public generally reviews the product quality before buying it (Khan, 2017). Due to the advancement of digital technology the product specification are easily available on the websites so that all the business organisation needs to provide their level best to grab the attention of more customers. High quality and performance vehicle can attach the customer psychologically with the rand, and good service generally helps to retain the customers. For that reason, management needs to take feedbacks from potential customers, and that helps the organisation in improving product quality according to customer requirements.

Price

Product price is another major factor for all business organisations in maintaining the sales volume efficiently. Most of the people want high-quality products in affordable rate so that proper pricing strategy according to demographic characteristics of people will provide the company huge advantages (Nagle and Müller, 2017). This organisation also needs to focus on both value-based pricing and market-based pricing strategies to maintain its profit merging efficiently. The organisation can use the value-based pricing for supercars and luxury cars and also can use market-based pricing to fulfil the demand of middle-class people. This strategy will increase the sales volume as well as the financial profitability of Toyota.

Place

Use of dealership is the main place of Toyota for distributing its products (Hult and Ketchen, 2017). It generally indicates the places where the customer can better access the organisational products. The retailers and the dealers are the main distribution places of Toyota. This organisation also offers the dealership in high economy places to increase product sales for more financial profits. Some retailers also sales genuine parts and accessories that are urgent for effective service.

STP Analysis of Toyota

Promotion

Promotion refers to the publicity of products to grab the attention of more customers. Effective promotion is urgent for a new product launch and helps the company to compete with other rival organisations (Srijumpa, 2017). The improvement of technology also changes the trend of promotion so that the organisations are now focused on digital media promotion, social media promotion rather than word of mouth promotional strategy. Social media also helps Toyota to promote their product globally, and it also provides the customer product review. Product review about a specific product generally provides the customer psychological support and that also increase the chances of product selling.

Environmental analysis is vital for Toyota because it generally helps managers in identifying the current organisational strength and weakness (Fozer et al., 2017). Apart from that, the external environment analysis also indicates various factors such as social factors, legal factors, political factors, economic factors etc. can influence the overall operation of an organisation.

Internal environment analysis mainly signifies the strength and weakness of the organisation leads to more effective marketing leads to enhance the financial performance of the organisation.

Strength The high brand image is one of the vital strength of an organisation. The financial position of this organisation is good enough to implement new changes in the organisation (Dangelico and Vocalelli, 2017). At the same time, strong research development team also helps this organisation to make innovative products leads to an increase in sales volume. Proper supply chain and availability of resources are also the major strength of Toyota.

Weakness Hierarchical organisation structure and lack of proper communication are one of the major strength of this company. Poor organisational culture generally reduces employee satisfaction so that it can hamper the overall operation of this company leads to reduce sales and profitability (Barron, Pereda and Stacey, 2017). The product recalls and lack of proper time management are another major weakness of this company.

Opportunities The overall financial position of Toyota is good for that reason this company can easily expand its business in other emerging market. Expand in other organisation will increase organisational profitability further. Recruitment of efficient and experienced employee will help to make successful organisational change for effective operation and services. The introduction of the hybrid electric vehicle can attract the customer in future, and it also helps to reduce the level of pollution level leads to grab the attention of more customers.

Threats Increase the price of fuels can reduce the organisational sales volume. Apart from that, the entrance of other organisation with a quality product and affordable rate can attract loyal customers of Toyota (Dangelico and Vocalelli, 2017). Changes in currency rate can hamper the overall profitability of this organisation.

External analysis generally indicates some environmental factors that can influence the overall organisational performance. PESTLE analysis helps management in identifying those factors effectively.

Factors	Description
Political Factors	There are different political factors such as the poor relationship between the countries and countries fiscal policy generally increases the overall expenses of an organisation lead to a huge financial loss (Racz et al., 2018). For example, the poor relation between Japan and China also affect Toyota negatively, and it also has reduced the revenue of Toyota.   In the financial year 2014, political battle with Australia also hampers the business of Toyota.
Economic Factors	Various economic factors such as inflation rate change the rate of the currency, the macroeconomic climate of the host country can reduce the overall sales and profitability of the organisation (Fozer et al., 2017). For example, the high inflation rate in India in the financial year 2014 also declines the 9 per cent sales of this organisation. At the same time, tax rate, labour cost also influences the overall financial profitability.
Social Factors	The global technological improvement also changed the trends and buying behaviours of customers. The car selection of the young generation and the older generation are very different (Racz et al., 2018). The people are now focusing on electric cars due to the high fuel price. For that reason Toyota needs to research the whole market carefully before takes any organisational decision to develop its product for huge customer response.
Technological Factors	Technology is important for the automotive industry and the use of unique technology is essential for this organisation to grab the attention of more customers (Ehsani et al., 2018). At the same time experienced technical staffs are also required to manage the day to day operation proficiently. Toyota is using world-class technology in its cars so that it will provide the company with huge upcoming opportunities. Apart from that advance IT technology also helps the managers of Toyota to manage the overall operations effectively.
Legal Factors	Al the business organisation needs to follow the rules and regulations of the government to avoid legal obligations (Fozer et al., 2017). Different regulations such as labour act, environmental policies, safety policies etc. can hamper the overall organisational operation so that management needs to focus on this factor to continue its operation globally.
Environmental Factors	Environment and pollution are one of the burning issues are recent days, and the organisation needs to reduce the emission of carbon particles (Racz et al., 2018). Toyota also has taken the challenges of zero carbon emission by 2050. The focus in Hybrid vehicles and electric vehicles will provide the organisation huge advantages in maintaining environmental policies.

Conclusion 

From the above study, it has been recognised that marketing is essential for all the business organisation in improving the number of product sales as well as financial position. The senior management of Toyota needs to evaluate its internal and external environment before strategic implementation. Selection of different strategies such as Product, Pricing and Promotional strategy will increase the number of loyal customers. At the same time identification of current strength and weakness of this organisation helps management to identify the upcoming opportunities and threats of Toyota.

References 

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