This research study will highlight the important aspect for higher sales of an organization through their effective research & development and advertisement regarding their products or services. Laws et al. (2013) highlighted that innovation is the main objective of research and development department. So, in order to identify the leaps in market participation and creating strong marketing campaigns to make new product designs is important for R&D so that the synergy with the manufacturing department can be obtained. On the other hand, Malik et al. (2014) stated that advertisement is directly observed by buyers and it generates awareness and information regarding a certain products or brand of an organization. Monfared (2015) moreover highlighted that there are several other brands, who are selling similar kind of products and this in such cases, there are more challenges as in such cases an organization persuades them to buy their products. Seher et al. (2012) there are several aspects on which management often emphasize more to develop a research or to formulate an advertisement that helps to develop brand loyalty among their customers. This research will also focus on the factors researched by R&D department and advertisement aspects that can attract customers to purchase Toyota automobiles.
Every organization aims to earn more profit not only by selling their signature products but also by improving their products or services according to the demand of the customers. Taspinar et al. (2012) stated that in case of automobile industry, the main challenge is that people do not buy cars often and hence they intends to invest on the most perfect and efficient automobile. Monfared (2015) furthermore stated that. It is the liability of the management and the marketing team to convince people to but their formulated automobile through advertisement that define their requirement. Thus, lot of investment is made on R&D departments for finding ways to develop technology that address the user’s requirement and effective content of the advertisement so that buyers can purchase from their organization. Thus, this research aims for finding the impact of the cost invested in the Research & development and advertisement department on the sales of the automobile for the organization Toyota.
This research emphasizes on the impact on the sales of automobiles due to effectiveness of Research & Development team and advertising department. This research study will also analyze the revenue outcome in case of Toyota.
Toyota is a Japanese multinational automotive manufacturer and has employed more than 365,000 personnel and is considered as fifth largest automotive industry by annual revenue (Toyota Central R&D Labs, 2017). Toyota Motor Corporation’s investment for advertisement in the United States in the year 2016 was 2 billion U.S.Dollars which is higher than the amount invested in 2015 that is 1.8 billion U.S.Dollar (Statistic, 2017).
Image: Advertising spending of Toyota Motor Corporation’s
(Source: Statistic, 2017)
Toyota also initiated many advertisement campaigns since 1933 in order to attract more people for purchasing their products. They have launched prewar campaigns, public contests, trade exhibition or formulating commercial songs (Toyota – R&D spending, 2017). Moreover, in their R&D department of Toyota also works with technology development that produces less emission to the environment and incorporate new technology like automation so that they can retain their valuable customers. They have also invested million of Japanese Yen for R&D and has already invested 1037500 million Japanese Yen in 2017 and 1055600 million Japanese Yen for 2016 (Toyota – R&D spending, 2017).
Image: Expenses of Toyota’s research and development (R&D)
(Source: Toyota – R&D spending, 2017)
In the year 2017, Toyota have won the “2017 Environment Minister’s Award for Global Warming Prevention Activity”, “R&D Review of Toyota CRDL” and “67th Outstanding Technical Paper Award” (Toyota Central R&D Labs, 2017) that proves that their R&D innovation and strategies are effective.
Zi’ang (2013) stated that in order to develop new vehicles and technology the research & development department focuses on aspects that can protect environment when the problem of climate issue and global warming is considered a big issue. Automobile industry researched on visualization of lubricating oil in engine cylinder, free piston engine, incorporation of noble metal sintering suppression and developing energy and power efficient fuel.
Pu and He (2015) depict that every organization intends to offer safe products so that no adversity can be raised. In recent times, safe technology like innovative air bags, break functions in a car, formulating human body FE model and high reliability technology in power devices. Monfared (2015) also highlights that automobile technology can incorporate automation like self-driving cars and drones.
Seher et al. (2012) argued that not every individual do the research prior purchasing automobile. In such cases, they are driven by the content of the advertisement and align their requirement with the products that they are advertising.
In recent times, people spend more time in social media. Thus, a organization can provide information through Facebook, Twitter, YouTube, Google+ so that new initiatives and future plans can be broadcasted through these media and customers can get knowledgeable regarding their products (Lamba, 2014).
Advertising products can be obtained through promotional campaign or free trail activities especially in automobile industry. Malik et al. (2014) stated that in order to gain trust from the customers, it is important to give them a chance to use the products. Many organizations use the concept of giving free samples so that they can advertise their brand through practical incidences.
Research philosophy highlights the source from where the ideas of the research can be gathered. Mackey and Gass (2015) stated that there are three different kinds of philosophy used in the research- realism, interpretivism and realism philosophy. Large sample data are taken in positivism philosophy so that in-depth analysis can be done; while, small data are taken in realism philosophy which helps to gather the social belief related to the research topic. Lastly, the combination of the realism and positivism philosophy refers to interpretivism philosophy. This research study will follow positivism philosophy so that precise concept can be obtained on the impact of R&D and advertisement on the automobile sales of Toyota.
There are two kinds of research purpose- inductive and deductive research philosophies. Taylor et al. (2015) stated that in inductive philosophy, the literature review and the data collection is obtained first to get a new direction of the research and new questions can be formed. However, deductive philosophy refers to the process of addressing al the research objectives and questions based on the literature review and data collection. In this research study, deductive research purpose will be followed (Brinkmann, 2014).
The research purpose shows the way to answer all the research questions obtained in the research. Flick (2015) stated that here are two kind of research purpose- exploratory and descriptive purposes. In exploratory purpose, new aspect based on the research topic is emphasized; however, in descriptive research purpose, answers are described based on the data analysis method and aligned with the outcome of the literature review. In this research study descriptive research purpose will be utilized.
Primary and secondary data collections are the two form of data collection method. Panneerselvam (2014) stated that data are collected directly from the research respondents refer to the primary data collection. On the other hand, data collected from sources like websites, research papers and peer journal articles is the secondary data collection method. This research study focuses on a single organization and hence primary research will be conducted for attaining accurate answers. Both employees of Toyota and managers of the same company will be considered for getting response on the research questions accurately.
Quantitative and Qualitative methods are two different type of data analysis method. The data analysis method based on numerical calculations is known as quantitative data analysis method; while, the analysis of theoretical data is known as qualitative analysis method (Smith, 2015). In this research quantitative data analysis method will be used. The regression analysis method will be used in order to find the relationship between three research variable that are “Research and Development”, “advertisement” and “sales”. Two regression analysis will be carries out first between “research & development and sales” and “Advertisement and sale” for obtaining accurate research outcome.
Liamputtong (2013) stated that the process of selecting research respondents refers to the sampling technique. In probability sampling technique, there is equal chance of getting selected for the research; however, in non-probability sampling technique not all participants in the research get equal chance for getting selected. In this research study both the probability and non-probability will be considered. Employees are selected based on probability sampling technique and managers are selected based on non-probability sampling technique.
Total of 103 research respondents are taken into considered in which 100 are Toyota employees and the remaining 3 are managers from R&D department and advertising department.
Chapter 4: Conclusion
Primary data collection is selected for the further research and the employees from Toyota are selected for participating in the research. A positive response is expected from the research that is there is a relationship between all the three research variables. Positivism philosophy, deductive approach and descriptive purpose are selected to accomplish the entire research study. The expected outcome of the research thus will state that ‘there is a positive impact of cost invested in research & development for boosting sales’ and ‘there is a positive impact of cost invested in advertisement for boosting sales’.
Reference List
Brinkmann, S. (2014). Interview. In Encyclopedia of Critical Psychology (pp. 1008-1010). Springer New York.
Flick, U. (2015). Introducing research methodology: A beginner’s guide to doing a research project. Sage.
Lamba, B. (2014). Social Networking Sites (SNS): A New Tool of Advertisement. Asian Journal of Research in Marketing, 3(5), 204-212.
Laws, S., Harper, C., Jones, N., & Marcus, R. (2013). Research for development: A practical guide. Sage.
Liamputtong, P. (2013). Qualitative research methods.
Mackey, A., & Gass, S. M. (2015). Second language research: Methodology and design. Routledge.
Malik, M. E., Ghafoor, M. M., & Iqbal, H. K. (2014). The Impact of Advertisement and Consumer Perception on Consumer Buying Behavior. International Review of Social Sciences and Humanities, 6(2), 55-64.
Monfared, N. A. (2015). Impact of advertisement on brand loyalty using structural equation modeling approach. European Online Journal of Natural and Social Sciences, 4(1 (s)), 47.
Panneerselvam, R. (2014). Research methodology. PHI Learning Pvt. Ltd..
PU, T. C., & HE, J. (2015). The Dynamic Design in Graphic Advertisement. Packaging Engineering, 36(6), 45-49.
Seher, T., Arshad, M., Ellahi, S., & Shahid, M. (2012). Impact of colors on advertisement and packaging on buying behavior. Management Science Letters, 2(6), 2085-2096.
Smith, J. A. (Ed.). (2015). Qualitative psychology: A practical guide to research methods. Sage.
Statistic. (2017). Toyota’s advertising spending in the U.S. 2016 |. Statista. Retrieved 20 December 2017, from https://www.statista.com/statistics/261539/toyotas-advertising-spending-in-the-us/
Taspinar, M., Naskali, A. T., Eren, G., & Kurt, M. (2012, May). The importance of customized advertisement delivery using 3D tracking and facial recognition. In Digital Information and Communication Technology and it’s Applications (DICTAP), 2012 Second International Conference on (pp. 520-524). IEEE.
Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons.
Toyota – R&D spending 2017 | Statistic. (2017). Statista. Retrieved 20 December 2017, from https://www.statista.com/statistics/279648/research-and-development-spending-at-toyota/
Toyota Central R&D Labs., Inc.. (2017). Tytlabs.com. Retrieved 20 December 2017, from https://www.tytlabs.com/
Zi’ang, T. (2013). The Importance of Advertising Slogan in Successful Advertisement. In Education Teaching Forum (Vol. 40, pp. 174-175).
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