Introduction to Marketing

This document provides an introduction to marketing and discusses the consumer decision-making process applicable to the automobile industry. It also applies Porter's five forces analysis to Toyota and explores the different segmentation, targeting, and positioning strategies used by the company. The document includes assessment questions and references for further reading.

Introduction to Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
Assessment Questions.....................................................................................................................3
Discuss about the consumer decision-making process applicable to automobile industry.........3
Apply porter’s five force of Toyota.............................................................................................5
Discuss about the Toyota and brands from companies...............................................................7
Explain a range of different segmentation, targeting and positioning strategies used by Toyota
.....................................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Marketing is based on the different activities performed by organization undertake to
promote their buying or selling of product as well as service. Marketing includes selling,
advertising and delivering the different products to potential consumers. This documentation will
discuss about the consumer decision-making process which applicable within automobile sector.
Furthermore, it will describe about the Porter’s five forces model that help to utilise
competitive advantage in global marketplace. However, this documentation will explain the
brands of automobile by using BCG, GE Matrix.
Assessment Questions
Discuss about the consumer decision-making process applicable to automobile industry
The consumer decision-making process is based on the method or technique by which
potential consumer become aware and identify all essential need or requirement. In Toyota,
enterprise manager have been collecting or gathering large amount of information relevant to the
consumers’ needs (Liu, Xiao and Song, 2019). As per understanding the consumer decision
making process which become consider as important to any kind of enterprise but in automotive
enterprise have a unique opportunity to optimize it.
The consumer decision-making behaviour is consider as complex procedure that involves
everything starting from recognition of problem during purchasing activities. Each and every
consumer have different needs in the daily basis so that it help them to achieve desirable goal or
objective. There are different kind of consumer decision-making process in which help them to
achieve its desirable goal or objective.
Need recognition- It is mainly occurred when potential consumer exactly identify the
specific need or requirement towards automotive industry. Potential client may feel like that they
are missing out something, but important to address specific issue or problem. Afterwards,
Toyota will help them to fill all kind of gaps (Zhang and et.al., 2019). Automotive industry are
able to determine when target market but starts with developing suitable needs, wants.
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Sometimes, it become easier for Toyota enterprise to increase advertisement opportunities in
global marketplace.
Information Search- It is important part of consumer decision process where they have
focused on search large amount of information which tends to change as continuously as
consumer requirement. Through this, it help for buyers to get more information about vehicles
and their automotive features which can easily satisfy their need or requirement. Large number
of information can be obtained through recommendation from different potential buyers who
have been experienced with quality of items.
At certain level, potential consumer have tends to assume all kind of risk management
and then prepare a list of features of Toyota brand. This can be done because many people do not
want to regret of their own buying decision. Information of automobile products can be
identified by different sources such as Advertisement, promotional campaigns and other
newspaper, magazine.
Evaluation of Alternatives- it is another important step that needs to be evaluating
different alternative regarding automotive items which are already available in market along with
product life cycle. Once, it has been identified by potential client whereas they can easily satisfy
their needs. Afterwards, it will start to seek out their best option within automotive products as
well as services (Zhang and et.al., 2019). Consumer will be evaluating the vehicles on the basis
of price, quality and other factors. Through this, client is also compared the price or review, then
selecting appropriate product which completely satisfied their parameters.
Purchase decision- In this phase, it has been analysed the consumer purchase decision of
Toyota, decided to make a better purchase decision (Zhang and et.al., 2019). It is one of the most
important stage where potential consumer has evaluated all kind of facts and arrived within
logical conclusion. Sometimes, it is influenced as different marketing campaign that always
support for consumer to establish personal experience.
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Apply porter’s five force of Toyota.
A five force analysis model is based on the combination of external factors with defining
the highest intensity within automotive industry environment. However, it has been described the
various issue or challenge affect Toyota as shown in the five force model.
Toyota Motor Corporation face the various kind of significant effect of external factors in
its automotive industry environment (Mwakawi and Kavale, 2019). It has been shown in five
forces analysis on the basis of porter’s model. These external factors are exerts forces on Toyota
and influence its strategic directions. Even with issue or challenges identified by using Porter’s
five force model.
Competitive Rivalry and competition with Toyota
Toyota is basically deal with strong force of competition. It is consider the important
component of five forces analysis which determine how enterprise affect with each other. In case
of Toyota, there are strong main contributors which influencing competitive rivalry in
automotive industry. Competitive threat of Toyota is consider as strong force where Toyota is
aggressive against each other (Githinji, Mbugua and Chege, 2019). Sometimes, company will
focus on compete with high level of enterprise and differentiating in cost or price and other fuel
efficiency, brand image, variables. However, even small auto mobile firms have tried to compete
with Toyota but they have been representing as comprehensive strategies to address its
competitive rivalry.
Bargaining power of buyers/ consumers
The potential consumer of Toyota can directly affect the enterprise through revenue. This
type of force analysis shown the influence of buyers on enterprise. in today’s case, externally
factors are consider as main contributors to identify the bargaining power of consumers. Within
automotive sector, bargaining power of consumer is strong force. The low switching price means
potential client change from Toyota to another (Yamamoto, Milstead and LIoyd, 2019). In this
way, they can easily switch from one enterprise to another. This kind of situation is basically
happens when existing client purchase a new care or vehicle. Additionally, client of Toyota can
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select the best option while accessing all essential information about the product through
website. As per analysis Porter’s five force, it can be combined with the different external factors
which having a strong force. Sometimes, it ensure that product or service match with consumer
need or requirement.
Bargaining power of Supplier
In Toyota, barging power of supplier is weak force and primary aim is to influence
enterprise in term of growth and development. By using porter’s five for analysis, it reflects on
the interaction between enterprise and their particular suppliers. In context of Toyota, there are
certain factors in automobile industry which is always contribute as weak force of bargaining
supplier. There are limited population of supplier so that it will be created as moderate force
which may influence Toyota (Alavi and et.al., 2020). Another way, bargaining power is
comparatively higher when supplier become in fewer. There are high availability of supply that
can be used at time of manufacturing Toyota’s products weakens suppliers power. Nowadays,
majority of various suppliers in the automotive sector but they do not have integration as well as
ownership, control of different raw materials. Thus, part of Toyota five forces analysis and
highlighting the enterprise relative ease for addressing weak force in bargaining power of
supplier.
Threat of substitutes
The substitution affect of Toyota enterprise by competing within automobile products. By
using Five force analysis, it can be identified the significant impact of substitute item while
contributing to its moderate force. The switching cost or price is becoming consider as strong
force and moderate availability of substitutes. At that point, potential consumers are shifting
from Toyota to another firm (Yamamoto, Milstead and LIoyd, 2019). In this way, it can be
identified the substitutes of Toyota items used in public transportation. In different areas, it is
basically not readily available but convenient for different substitutes by using product as well as
service of Toyota.
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Threat of New Entrants
Threat of new entrants is becoming weak force and potentially competitors that threaten
Toyota’s enterprise. By using five force analysis, it has been identified the significant impact of
new entrant and always contributes towards weak force. At certain point, Toyota has faced the
issue or challenges of new entrants. It would be required to establish high cost for purpose of
growing enterprise and maintaining. The entry barriers are weakest and their effect of new
entrants on the organization such as Toyota (Yamamoto, Milstead and LIoyd, 2019). This kind
of force is significantly as competitors whereas they have a higher bargaining power of
consumers. At some point, five force analysis have been representing threat of new entrants
which help to maintain position of enterprise in marketplace.
Discuss about the Toyota and brands from companies
a. The GE Matrix
The GE Matrix is also known as GE enterprise which is basically include different kind
of parameters. It will support for Toyota to long term automotive industry attractiveness,
identifying both enterprise strength and competitive position (Chiu and Lin, 2019). 9 different
cells of GE are basically grouped together on the basis of low to high industry.
“Go Ahead”- under this phase, it would be proceed and help for automotive enterprise to
make a better decision. It has been acceptable and go ahead or take up more marketing
development. This will help for expanding the business in marketplace.
“Wait and Watch”- it is second part of GE matrix which is mainly indicating the current
business strategy (Lukmandono, Hidayat and Sari, 2019). Basically, automotive enterprise
involves fuel efficiency, engine and so on. These are basically exists within zone, providing the
signals for wait or watch. Afterwards, it will be promoting the advertisement technique.
“Stop”- it is consider as third zone which provide the signals to stop any type of
automotive items. Usually, Lexus automobile company have been manufacturing the different
items.
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Thus, it has concluded that GE matrix which allows them to choose appropriate criteria,
if they can feel with more appropriately to enterprise situation or condition.
b. The BCG Matrix
The Boston consulting group’s item as portfolio matrix which is mainly designed to help
with long term strategic planning. It is becoming consider as useful for growth opportunities by
identifying specific demand of vehicle in marketplace (Lukmandono, Hidayat and Sari, 2019).
The purpose of this design is helping Toyota in term of manufacturing unit and its product line.
BCG Matrix can be designed as tool or platform in product life cycle. Through this, Toyota can
utilise to decide whether they should be prioritise.
Market growth
Toyota Prius was launched in Japan which are basically made available to global world.
In 2003, company has been focused on the designed a new model because it is based on the
modern hybrid technology. That’s why, company will target the consumer through innovative
product as well as service (Lukmandono, Hidayat and Sari, 2019). This kind of innovation
always attracting more potential consumer so that Toyota made maximum profit out. Afterwards,
it will try to sell 1-million of hybrid cars in different areas. According to analysis, it has found
that 2000 of car sold was just 5,000 and then afterwards, it will be continuously increasing
rapidly. This will help for Toyota to gain more popularity while increasing profitability in global
marketplace.
As per survey, it has been clearly review that Toyota Prius was consider the best-selling
care in US with increase great margin.
Market share of Toyota Prius
As per identification of market share, Toyota Prius has established a strong position in
marketplace because of hybrid care innovation. The Prius has become massive 50% market
share. That’s why, Toyota has been sold their products three time as core vehicles in
marketplace. This is main reason for improving the current position of organization because of
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hybrid innovative car. Toyota has sold approximately 1,00,000 cars which comes up to market
share 53%.
Explain a range of different segmentation, targeting and positioning strategies used by Toyota
Segmentation- segmentation is a marketing strategy in which organisation divide it customer
into different groups on the basis of their similar characteristics. Segmentation help organizations
in determining which segmentation of market they are willing to and they are capable to serve
and fulfill their requirements. Segmentation is mainly then on the basis of psychographic,
behavioral, demographic and Geographic characteristics (Dolnicar, Grün and Leisch, 2018).
Psychographic elements include element like personality and emotions that are linked to
purchase choices and include elements like Lifestyle, hobbies, risk aversion, personality and
leadership traits. Demographic segmentation includes customers on the basis of their age,
gender, income, education, ethnicity, marital status and occupation. Segmentation strategy of
Toyota Motors is based on demographic Geographic and psychographic segmentation strategies.
This means that customers of Toyota Motors are profiled on the basis of these segmentation
characteristics.
Targeting- Targeting is concerned with activity of determining and selecting a market segment
that organisation wants to cater by providing required products and services. Targeting is based
on certain elements that are size of market segment, visible difference in market segment,
anticipated profit from a market segment and accessibility to market segment. Size of market
segment is very important because a market segment having small size would not give desired
benefits to organisation. Along with size of market segment with size of market segment
anticipated profits also require to be high because generating profit is ultimate objective of
organization (Camilleri, 2018). Accessibility to market segment is concerned with ability and
possibility of Toyota Motors to connect with its target market segment without any difficulty.
This means that customers can easily access to organisation and by its product because without
accessibility Toyota will not be able to sell its products and services in its target market segment.
These are some of the factors that affect targeting decisions of organisation. On the basis of these
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elements Toyota motor uses a differentiated targeting strategy. Differentiated targeting strategy
is one in which different market segment are targeted by organisation and Toyota Motors offer
specific product for specified target market. Providing different product is aimed at ensuring
customer satisfaction with products and services of Toyota. In addition to this promotional and
marketing decisions of Toyota Motors also are based on their target segments. This means that
promotional strategies that are adopted by organisation are created on the basis of market
segment that they are targeting.
Positioning- Positioning it concerned with how products of an organisation are perceived by its
customers. In its overall marketing positioning plays a very important role and Toyota has
adopted a value based and user benefit positioning for its product (DIXIT, 2020). User based
positioning strategy is one in which organizations highlight function benefits of the product of
they are offering to their market segments. This positioning strategy allows organisation to
communicate what are the benefits that they provide to their customers that are different from
their competitors.
CONCLUSION
From above discussion, it has concluded that Marketing plays important role in the
automobile industry that may support for performing different activities. By using marketing
approach, it has been undertaken to promote their different kinds of product as well as service.
In this report, it has been described about the consumer decision-making process which
applicable within automobile sector. Furthermore, it can be identified the Porter’s five forces
model that can help for achieving the competitive advantage in global marketplace. However, it
can use different BCG, GE Matrix in order to gain more competitive advantage.
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REFERENCES
Book and Journals
Alavi, A. and et.al., 2020. Analysing competitive advantage of Iranian automotive industry using
Porter's diamond model, case study: Iranian car manufacturers. International Journal of
Business and Systems Research. 14(3). pp.298-313.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Chiu, C.C. and Lin, K.S., 2019, July. Rule-Based BCG Matrix for Product Portfolio Analysis.
In International Conference on Software Engineering, Artificial Intelligence, Networking
and Parallel/Distributed Computing (pp. 17-32). Springer, Cham.
DIXIT, P., 2020. Segmentation, Targeting & Positioning-Principles of Marketing.
Dolnicar, S., Grün, B. and Leisch, F., 2018. Market segmentation analysis: Understanding it,
doing it, and making it useful (p. 324). Springer Nature.
Githinji, M.N., Mbugua, D. and Chege, P.M., 2019. Application of Marketing Mix Strategies and
the Effect on Market Performance of Motor Vehicle Dealers in Kenya.
Liu, A., Xiao, Y. and Song, W., 2019. A fuzzy three-stage multi-attribute decision-making
approach based on customer needs for sustainable supplier selection. Journal of Cleaner
Production. 239. p.118043.
Lukmandono, M.B., Hidayat, M.J. and Sari, K.T.D., 2019 Determination of Digital Marketing
Strategies by using SWOT and BCG Approaches to Improve Company Competitiveness.
Mwakawi, M.E. and Kavale, S., 2019 INFLUENCE OF COMPETITIVE STRATEGY ON
COMPETITIVE ADVANTAGE IN TOYOTA KENYA.
Yamamoto, K., Milstead, M. and LIoyd, R., 2019. A Review of the Development of Lean
Manufacturing and Related Lean Practices: The Case of Toyota Production System and
Managerial Thinking. International Management Review. 15(2). pp.21-90.
Zhang, X. and et.al., 2019. A new customization model for enterprises based on improved
framework of customer to business: A case study in automobile industry. Advances in
Mechanical Engineering. 11(3). p.1687814019833882.
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