1. Identify and discuss the main macro-environmental forces at play in this case study and how these may be addressed with the strengths and weaknesses of the RAV4?
2. What is the product lifecycle? Explain where you believe the Toyota Rav 4 is in the product lifecycle stage in Australia and identify what would be a relevant marketing mix for the product at that stage.
3. What is a market segmentation and why is target marketing important? Describe a person who has the characteristics of the target market for this campaign. How in your opinion might the older loyal customers of RAV4 respond to the new positioning campaign?
4. Explain the consumer-decision making process and what would be the key factors influencing a purchase in this product category. Provide recommendations for Toyota at each stage of the decision-making process.
Analysing the macro environment in an organization has become very important in the current situation (Shtal Bondarenko and Yarkovyi 2017). Depending on the macro environment of the company, the entire function gets influenced. If the macro environment of the company named Toyota is being analysed it will be identified that the technological environment of the company is being developed after the introduction of globalization. With the increasing rate of technological development in the car manufacturing industry, various software and hardware have been introduced in the market. By using the modern technology the Rav4 as increased its popularity in the market. However, it has been mentioned in this study that due to the rapid development of technology in the car manufacturing industry, large number of competitors have increased in the internal market. As its result, the market threats has increased. On the other hand, it has been highlighted in the study that due to introduction of modern technology, the demand for efficient employees has increased in the organization. The major strength of RAV4 is it can easily grab the attention of the customers who loves adventure. On the other hand, the major weakness of RAV4 is very expensive. As its result, most of the people are not being able to experience the product. Social status of the people in Australia is in moderate position, therefore, in the Australian market it can be considered as the major weakness of RAV4. Depending on the political situation of the country the product development practice gets influenced (Kasim and Dzakiria 2016). If the political situation in Australia is being analysed this can be said that political situation of this country is in the favourable condition for RAV4.
The term product lifestyle is being considered one of the essential concept in the business industry (McAuliffe 2015). The product lifecycle describes different stages in which the product goes through from one of the stage when the product was first assumed of until it finally is being detached from the national and international market. It has been also identified that it is not compulsory that all the products will reach in the final stage. The products which do not reach the final stage, grow and raise its popularity in the market and stay in the market for a long period (Holzbaur Ross and Rothrock 2016). Therefore this can be said that the life cycle of a product depends on the growth, its maturity and declination. If the Australian market is being analysed, it can be said that the marketing strategy and marketing mix of an organization get influenced by this practice. In the study, it has been identified that the company named Toyota has launched RAV4 in the Australian market. Toyota is ruling the Australian market from last 20 years. Therefore, various number of vehicles in the armlet have been introduced by the company. As its result, RAV4 is suffering from identity crisis. Due to this reason it has lost its challenging spirit and has loosed a large amount of market share. Therefore this can be assumed that RAV4 is in the final stage of product life cycle in the Australian market. In order to deal with the situation, the company needs to focus on recreating the position of the product in the market. It may bring the changes in its pricing policies.
Market segment is being considered as the process in which the company gets the chance to divide the potential customers into the groups (Cross Belich and Rudelius 2015). Depending on various characteristics and interests of customers the market segment is being analysed. In the process of market segmentation analysis, the market strategies are being developed depending on the market segment. Therefore this can be said that depending on the similar, needs, lifestyle, personality and interests the market segment is being developed. On the other hand identifying the target market is very important in the case of developing the effective marketing communication strategies. This is the process in which individuals share their needs and characteristics that the organization serves. Depending on the features and usefulness of the products the company sets its target market (Armstrong et al. 2014). In the campaign the company named Toyota has introduced RAV4 by adding creative technology and style. Therefore this us clear the company has targeted the people who are fond of technology. Mostly the young stars, who love adventurous trips are being targeted through this campaign. Through different advertising and historic campaigns the company will be able to grab the attention of its old loyal customers. On the other hand, by maintaining the old activities the company has decided to bring the recreating practices so that it will retail customers. Toyota has also decided to develop the effective emotional communication with the customers. As its result, the company will be able to fulfil the demands of the customers.
The customer decision making process is being described in five steps. Information search, need recognition, alternatives evaluation, post-purchase behaviour and purchase are the five steps in the customer decision making process (Zhang, Zhao and Gupta 2018). By following these steps the organization gets the chance for understanding and communicating with the customers effectively (Liu et al. 2016). In this study, it has been identified that the company has adopted advertising and campaigning strategy in order to develop the healthy relationship with the customers, due to the increasing price and competition in the market, RAV4 has started losing its position in the Australian market. Therefore, in this situation, it has become be very important for the company to develop its customers’ relationship. In the case of SUV segment, it has become very important to understand if the existing car and style is value for money or not. Therefore, this can be suggested that the company needs to focus on bringing the changes in its practices. In the introduction and search stage it needs to focus on research and development process for analysing which car is ruling the SUV market. Recognition is another important stage in which Toyota can add more value in its product for grabbing the customers’ attention. Post-purchase and purchase behaviour get influenced by emotional influences. Therefore by introducing the ads which will get connected with the customers’ emotion can bring the changes in its sales revenue. Alternative evaluation is the process in which the company creates the backup plan, which helps it in the case of dealing the negative situations.
Reference list
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson Australia.
Cross, J.C., Belich, T.J. and Rudelius, W., 2015. How marketing managers use market segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.
Holzbaur, E., Ross, J. and Rothrock, T., 2016. Epro Product Life Cycle: Guidance For A Successful Management Phase. Value in Health, 19(3), p.A109.
Kasim, A. and Dzakiria, H., 2016. Exploring the Effects of Macro-Environment on the Predisposition to Adopt Strategic Orientation among Small Medium Size Hotel Entrepreneurs. International Journal of Economics and Financial Issues, 6(7S).
Liu, J., Dai, R., Wei, X.D. and Li, Y., 2016. Information revelation and customer decision-making process of repeat-bidding name-your-own-price auction. Decision Support Systems, 90, pp.46-55.
McAuliffe, R.E., 2015. Product Life Cycle. Wiley Encyclopedia of Management, pp.1-1.
Shtal, T.V., Bondarenko, L.M. and Yarkovyi, O.E., 2017. The Features of Analysis of the Macro Environment of Enterprise in the External Markets. Business-Inform, 5(472), pp.103-108.
Zhang, H., Zhao, L. and Gupta, S., 2018. The role of online product recommendations on customer decision making and loyalty in social shopping communities. International Journal of Information Management, 38(1), pp.150-166.
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