Discuss about the International Market for Toyota Motors Corporate.
International marketing referred to the use of marketing activities integrated and synchronized across many country markets or international markets. The International is also known as global marketing involves and focus on global marketing strategies such as making marketing mix decisions in international boundaries. For our case, Toyota uses international marketing to establish manufacturing facilities globally and to integrate those strategies. The company will assess its performance of the business operation of its goods and services towards the customers internationally for a profit (Paliwoda, , 2013).
Toyota Motors Corporate is a multinational corporation that manufactures cars, Lorries, trucks, buses, and robots. The company is located in Japan, Toyota City. Toyota has set many factories across the globe, and it produces and assembles different types of vehicles for both local and international market (Kotler, 2013). Some of the biggest plants configured to assemble the vehicles include Japan, USA-Brazil, Canada, South Africa and the United Kingdom among other countries. The company has realized success in both local and global market because it makes products of high quality. The company keeps on improving their products hence effecting them leading to match with high demands in the industry. The company strives to increase the quality of their product. The development of such attitude is drawn by a single tag ‘’kaizen’’ which means constant improvement (Kleindl, 2007.).
Situational analysis of the company refers to the method collection that management of company applies to overview the internal and outside variables that concern capacity, customers and organization’s environment. For instance, many businesses such as the Toyota Motors uses situational analysis as market plan. The strategy creates the company’s guide to communicate the position of their products (Toyota Prius) and determine whether they meet the clients’ specifications per se. The company has employed different mechanisms to effect both production and distribution of automobile products. The firm has established a bold and long-term mutual relationship with their customers (Bradley, 2012). The management of the company evaluates the both macro-environment that influence their businesses hence disorienting the buyers’ behavior towards their products. Similarly, they consider and assess the small factors that may affect the company. The primary objective of the company conducting situational analysis measures the organizational position as well as product standpoint as far as Toyota Motors is concerned. In additional, the study may mean a lot in as much as the overall survival of the company within a given environment (Bouwman, 2015). Toyota Motors Company, through this analysis, is enabled to draw the line of opportunities and problems in the enterprise and in the market hence understand basic capabilities in the market.
Toyota Prius, a product of Toyota, have focused on research and development. The company has been known for its innovativeness culture. The company has introduced the product in the UK ahead of the competitors hence proven to be a most preferred choice. The company has broadly focused on basic research, forward-looking and leading-edge tech improvement and product development. A Large sum of money has been invested by Toyota to introduce the best market quality cars in the UK.
The most outstanding automotive product worldwide. The company has been among the top five automotive producers; the company also number one automotive product regarding value. The product value is closely linked to product recognition which translates Toyota’s the most recognizable Toyota Prius globally.
Toyota products especially Toyota Prius are competent to thrive in UK market since they are high quality cars. Toyota Prius became the most mass-produced quality car as well as most successful up-to-date. In the UK, Toyota Prius’ Competence in hybrid cars is a long-term competitive gain that its competitors face solid way to thrive in the market.
Toyota has reluctant to invest in separate cars tech. The Toyota has engaged in R&D focusing in contributing to the complete abolition of traffic losses, but the firm has no planning to familiarize completely free cars in the future. Toyota Motors lack tech advancement in manufacturing automotive cars hence giving their competitors advantage to pick in UK market.
The company has poor publicity because of large cars recalls. The rate at which Toyota Prius recalls is very high leading to great negative publicity. Furthermore, larger and frequent recalls adversely affect the company’ reputation resulting to low sales.
The company’s profit has been optimistic due to a gradual decrease of fuel which is expected in future. Nonetheless, Toyota Prius has gained an advantage over low fuel prices which have attracted many customers purchase Toyota Prius, particularly in the UK. Furthermore, Prius, the company has invested heavily in producing quality cars.
People in the UK have demanded autonomous vehicles. The company has estimated the market is hence making the company delay launching the first autonomous cars. Toyota has to quicken the process of development of autonomous cars tech and acquire the skills for it to remain relevant in the market.
The company’s revenues originate from the global market. The UK have recently splinted, and this has attributed to depreciating of Euro pound in foreign exchange. The company cannot control the fluctuation of currency exchange rates, therefore posing a threat. Moreover, the company’s profit is skewed significantly.
The government regulations of UK has been one of the primary threats affecting the marketing of nth Prius. Nonetheless, new rules or changing in existing legislation may also alter Toyota expenses in future.
The company has addressed different opportunities, and threats as the PESTEL analysis outlines to ensure the Toyota Prius command in UK automobile market.
In the UK the company has enjoyed massive stability hence creating an opportunity for Prius to have many customers. Furthermore, the free trade market involving the UK states have provided broad markets to sell the Toyota Prius. The UK government have also encouraged the eco-friendly products hence Toyota got the opportunity to improve its Prius products to gratify the need of environmental expectations.
The Prius depends on economic patterns. The company has the significant opportunity to grow its exports to UK market about failure of Euro pound. The rapid growth of developing economies present the opportunity for the Toyota to develop revenues on UK market.
The company has got the chance to give the high large number of products to satisfy the consumers’ up surging interest in hybrid and electric cars such as Prius.
The company has opportunity to develop its e-business capacities to utilize third e-business service providers for sales of Toyota Prius as well as its spares. The company has got the chance to improve its social media apps to boosts client engagement and loyalty.
Toyota can improve its sustainability performance through improvements in companies boosting effectiveness. Similarly, the company has advantages to provide more eco-friendly products, like Prius electric cars which higher fuel efficacy.
The company has been providing hybrid Prius cars that satisfy the regulations of laws of the environment as well as needs of the customers. Toyota has used the chance to offer safe and more reliable products to gratify the clients’ needs.
The company requires understanding the business climate and environment. The understanding will eliminate any factor that might adversely affect the company. The factors that need an insight include political and regulatory backgrounds. The company must consider government regulations on the market and match them with their policies to enhance production, distribution, and sale the product (Panayides, 2015). The Toyota Company must adhere to the socio-cultural environment to enable them to understand the society patterns and fashions such as education and demographics. Toyota Company must apply technological evaluation to replace dull routine and suggest new methods which are cost-effective.
Toyota Company has implemented several strategies to overcome some problems and to reach to all parts of the world. The company has pinpointed the main issues linking to the Toyota management. Those critical issues identified include Lag in product planning, declining market share in the whole world, and expansion of the company at the international level. The problems have forced the company that bold front steps for the manufacturer to thrive in the global context.
The first stage that the company pinpointed includes Cross-Nation Space Strategy. The model is also known as a direct entry model. Toyota has to implement the approach by marketing its product in the home country and the whole world. The approach will aim at blanketing the nations of the world with Toyota Prius. Since the company started in the late 1930s, the company took a period of two decades before it integrated and set another plant. From then, the company has set other measures to ensure consistent success. The company assured use of high quality auto suppliers or partners which led improvement of the channel of distribution. The company also built stores for keeping their products for shipping. Toyota also housed and facilitated all employees and their families (Bradley, 2012).
Toyota has made a joint venture (partnership) with several car manufacturers. For instance, Toyota collaborated with one of the company from Thailand hence the name brand Toyota Motor Thailand. The strategy enabled the company to introduce its assembly plant in Thailand and other countries where they collaborated. The company also has expanded working with many countries in Europe and the United States. The company uses this expansion process to successfully carry out with opening many subsidiaries of Toyota which based in different parts of the world such as in Brazil. The development will result in the effectiveness of Toyota in many countries (Kotler, 2013). For instance, Toyota Do Brazil merged with Toyota of Argentina to export Toyota’s automobiles to America and later in Central America.
Toyota uses licensing strategy method to penetrate the international market. The company uses the model to run the foreign operation efficiently. Toyota in Japan get into consent and agree to permit the companies in another country to use the manufacturing, processing, symbol/trademark, or other skill given by the licensor. Toyota subsidiary companies are located in many countries where they assemble cars. The company has reaped several advantages such as opening the door to little risk production relationship (Ibeh, 2012).
Toyota marketing mix is closely related to a diverse set of approaches for the products lineups, place and supply, and promotion. Toyota’s marketing mix uses 4ps that reflecting the company’s methods for interacting with its target marketplace. Toyota market is diverse regarding customer taste and preferences and general as well as local market conditions. The 4Ps strategies have enabled Toyota to lead to global success in implementing the company’s marketing mix.
Toyota has a diverse set of goods. The model identifies company result for the consumers’ target. The company automobiles are the most known product. Lexus vehicle is famously known for been expensive products of Toyota. Similarly, Welcab series are made for old people and disabled people. Furthermore, the company manufactures yachts, engines, and spare parts for their automobiles as well as marine products. The use of this model has enabled the company cut the market-related risks and reaches wider through a varied product mix (Dominici, 2009).
The company has the largest and productive dealerships for distributing. However, the company has partners such as suppliers and retailers also take part in selling the Toyota’s products like accessories. The model marketing mix indicates Toyota must rely heavily on partners to market and sell their products to the target market (Rahmani & R, 2015).
The model entails techniques of marketing communications. The company uses activities such as personal selling, adverting, public relations, sales promotion, and direct selling. The company applies personal selling through partners/dealerships. The partners personally promote the items by reaching to the potential customers. Toyota also uses media to advertise their products. Several methods of advertising include TV, newspapers, and Internet. Public relation is another promotional model. The good example that company uses involve Toyota TogetherGreen and Meal Per Hour programs that help environmental initiative and donate food to Foodbank respectively. Promotion marketing mix shows clear that Toyota has a comprehensive approach for promoting the products as well the company (Goi, 2009).
The products vary regarding pricing depending on the product line and the product type. The company uses the market leading pricing strategy to determine to price based on market situations and the prices of their competitors. Similarly, Toyota uses values-based pricing strategy to set prices based on the real and perceived value of the product. The model has supported the company basically on market situations as well as consumers’ perception (Yun-sheng, 2010).
Marketing approach of the company varies regarding marketing needs in different geographic locations. The company’ marketing strategy aims at variation approach, as its goods from the competitors’ products. The company’s main competitors include Ford, Mitsubishi, Isuzu, Mazda, and Hino, are matching the same steps to acquire market share by using the same international strategy (Joshi, 2014). Thus the Toyota produces products to sell overseas hence work tirelessly to satisfy the clients by providing them with specific products that match customers’ specifications. The differentiation approach absorbed to Toyota supports it ion manufacturing items that vary from other similar companies’ products. The strategy helps the company to tag the price of its products as per their wish since their goods vary widely with competitors products.
Conclusion
The marketing strategies for any given company have a vital role to play in the effectiveness of the company. The international marketing should be carried out concerning the both micro and macro external influences. The products may vary in countries concerning quality depending on how the company supplies them. The pricing of the Toyota’s products also plays a significant role in the effective marketing strategy mix. The company should not tag prices at high rates since it will decrease the sales volume. Furthermore, the company should make a decision on its marketing by observing on the international market rather than concentrating only on the local market. Concerning much on global market means that, international customers will be satisfied and their needs met immediately. The performance reputation of the company has been pronounced. Similarly, in future, the company needs to adopt innovative marketing approaches to enable to have a significant number of customers and participate in the highly competitive market.
References
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