Marketing and Sales Management Report 2022

Running Head: MANAGEMENT 0
MARKETING AND SALES MANAGEMENT

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Table of Contents
Introduction................................................................................................................................2
Marketing and sales strategy adopted by Toyota.......................................................................2
Evolution of Toyota strategies with changing marketing situation and consumer behaviour...4
Strategies development and improvement.................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
In all stages of economic life, marketing occupied a significant position while expanding
through various significant activities. In addition, the modern marketing includes special
characteristics and emphasizes the need for integrated and well-coordinated marketing
programme with the aim to attract the maximum volume of customers (Jobber and Lancaster,
2015). With change in consumer behaviour and market conditions, contemporary marketing
recognizes the consumer’s supremacy in marketing and therefore, consumer becomes the
pivot of all corporate decisions.
This report highlights about marketing and sales strategies of Toyota in relation to nature and
change in business orientation such as prominence of electric cars and vehicles. Toyota
Motor Establishment is one of the leading automobile manufacturing created in 1937 and its
vehicle are sold in more than 170 nations and areas (global.toyota, 2018). One of the unique
parts of company marketing strategy is local customization as company did not alter its
automobiles to local needs; it tailors both products and operations as per the level of customer
sophistication in each nation. This strategy helps the company to lead out of Japan (i.e. into
overseas market) with maximising employee creativity considering development of new
technologies, new supply chains and ways of marketing (Jobber and Lancaster, 2015).
Marketing and sales strategy adopted by Toyota
With producing high quality vehicles at reasonable prices, Toyota has built its goodwill at
international level. Toyota production system is a “hard” innovation that enables the
organisation to keep improving the approach it manufacturers’ vehicle and the company has
mastered “soft” innovation that associates to organisation culture (Iudina et al, 2015). Toyota
marketing tactic prospers in closely connecting the brand with the greatest practices of
Japanese ways of undertaking things. The company has established the use of various market
orientation particularly selling and product concept as it involves straight participation in the
manufacturing undertakings of the product that the corporation trades in the marketplace.
Market orientation has led to the utilization of innovation, distinction, and branding tactics
with Toyota to be engaged in production of various car brands personalised near fulfilling the
changing requirements of its consumers such as electric car. Electrification is a major part of
once-a-century transformation taking place in the auto industry.

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For better understand the Toyota market orientation strategy, diffusion of innovation in
relation with marketing strategy for Toyota Prius has taken into consideration. With rising
demand and positive feedback for various Electronic Vehicles in the market, Toyota initiated
creating a hybrid electric vehicle called as Prius in various marketplace in Japan, US and also
in the European Union (Pinkse, Bohnsack and Kolk, 2014). Toyota was known to be aim
premium segment consumers by developing premium priced cars for the elite cluster of
consumers, however, the company marketing strategy changes with various factors in the
environment such as competition as Toyota was facing stiff competition from various firms
mainly Audi, Ford and many more. The company gave themselves a huge head start in
vehicle electrification with the Prius hybrid and building and mass producing this technology
had to have been perplexing, however it prepared the Prius one of the greatest and popular
hybrid by extreme.
Toyota home country of Japan is largely reliant on on outward resources for energy and
probably, management at Toyota are planning to reduce reliance upon foreign oil as a key
fuel source. In addition, electricity is predominately generated by fossil fuels and Japan is
also seeking to check for alternative energy sources (Chapman and Itaoka, 2018) and I think
they perceive hydrogen as their big rescuer, however, it has rare refuelling stations and
therefore, the company is planning to put their eggs typically into one basket and that is
electrolyte batteries. The company popularized the gas-electric hybrid with original Prius
and was among the first to commercially launch a fuel-cell vehicle. In addition, Toyota is
also now confronted with a higher than projected demand for vehicles that use batteries
irrespective of gasoline.
Toyota market direction is also lot different to Tesla as Tesla have an objective to sell electric
boxes on wheels, however, Toyota aims to be a mobility organisation, which are distinctly
different. The company knows that electric vehicle sales are growing quickly and at the
global EV landscape, barrier to adoption are reducing down. To speed up the sales, Toyota is
undertaking various strategies such as selling EV technology to Singulato where the cars
probably have a battery range of 250-300 km (cbinsights.com, 2019). The products signal
that the company want to do more to catch up – it seeks to leapfrog rivals that had an
important lead comprising General Motors, Volkswagen and others from various markets
(Greimel, 2019). Hence, Toyota entry into electric vehicle segment is a part of wider reset.
To strengthen its sales strategies, Toyota is also encouraging various suppliers to be in
partnership programme and is based on how many EVs the group project to eventually sell.

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Toyota also claimed that company is planning to sell 5.5 million electrified cars yearly
around the world by 2025 (Mukherjee, 2019).
Evolution of Toyota strategies with changing marketing
situation and consumer behaviour
The market for electric vehicle is reaching a tipping point and this makes Toyota alter its
strategies towards development and production of new electric and hybrid vehicles. Indeed,
2017 was a milestone year for electric vehicle as international sales for battery EVs and plug-
in hybrid vehicles surpassed one million units for the first time (deloitte.com, 2019). This
changing market scenario and consumer behaviour resulting in growing demand from
customers, supplemented by constant innovation and investment in technology embracing
Toyota to begin to accelerate EV deployment. Hence, with cost of ownership not extended in
acting as a barrier to buying and EVs will endure being a viable selection for any new
automobile shopper. More than 14 million electrified vehicles sold by Toyota globally and
company have gathered broad knowledge regarding the production, development and sale of
both HEVs and their associated core gears (global.toyota, 2019).
Toyota is the most leading Japanese automobile company and with manufacturing various
models of electric cars, the company has appeared in the eyes of many buyers globally. To
boost its manufacturing of EVs, the company is undertaking various policy and strategies
shift such as forming battery plant in China by 2021, capable of producing nearly 100, 000
batteries annually (nikkei.com, 2019). Toyota's Prius, which debuted in 1997, ranks as one of
the domain's most extensively sold hybrid vehicles. It is also expected that share of EVs
vehicle in total automotive marketing will begin to grow rapidly reaching ten per cent by
2024 (deloitte.com, 2019).
Toyota Motor Corporation anticipates in the next decade population will gear up for sales of
electrified cars, including four groups: hybrid electric vehicles, plug-in hybrid electric
vehicles, battery electric vehicles and fuel cell electric vehicles. The company publicised its
EV plan is rolling faster than anticipated and all vehicles of Toyota will be having of EV
versions by 2025 (Maikaew, 2019). At present, consumers are interested in how much money
they will save with switching to EVs and with this, a major concern of these consumers also
related to availability of charging stations and charging time in comparison with the
simplicity of filling fuel at normal petrol or gas station. Most of automobile manufacturer

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including Toyota is utilizing map functionality within their creative digital units and share the
benefits with the most audience most interested in electric vehicles and have with yearly
income levels around $125, 000 or greater.
Strategies development and improvement
From the time when Toyota introduced the Prius, the world's first mass-produced hybrid
electric vehicle (HEV), in 1997, the corporation has become a pioneer of electrified vehicle
growth and thus contribute to society will fulfil of customer needs and reducing
environmental concerns. Their strategy can be effectively be developed and improved with
more investment in Research and development division and work together through
collaboration with other automobiles. However, Toyota is already doing great in this
direction like BYD and Toyota has been collaborated to further developed BEVs (battery
electric vehicles) to increase its footprints into the Chinese market and with this extensive
adoption, the company is also aiming to contribute towards environmental improvement
(global.toyota, 2019).
In addition, Toyota should actively ensure development of new generation of batteries and
plans to market these by 2021 and as publicised here before, Toyota is also studying a
partnership with Panasonic to develop battery assembly plant with the plan to market the
batteries together (news18.com, 2017). Moreover, the company should develop a system that
benefits in leading to battery reuse and recycling with plan to promote the increase of
charging station networks via collaboration with regulatory and government bodies and other
energy associates. Anticipating in advance is also an important process for any
manufacturers. It is important for Toyota to project the demands in 2030 and accordingly
invest now in design, research, plants, innovation and human resource. Receiving these
projections incorrect, even at an early phase, could cost Toyota a significant loss.

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Conclusion
Ultimately, the widespread implementation of social media technologies, Internet technology
and e-commerce, the consumer has undoubtedly become the driving force behind
contemporary corporate strategies. Competitive analysis is also an important component of
business orientation. It is important for companies to gather relevant information in the
business environment via market research and implement in advance to attain competitive
edge. This is what done by Toyota to embrace upon demand of electric cars in the market.
The company into EV market segment through its first electric hybrid car known as Toyota
Prius and later on, with collaboration and partnership with various organisation in the market,
the company plans to supply its electric vehicle in present and future with strengthening the
market and sales strategies. From future perspective and considering various environmental
factors, Toyota requires to adjust their strategies and put new entrant with barriers to come
into electric vehicle market. The competition between EV manufacturers to bring the latest in
car technology will probably consider similar patterns, however, Toyota can differentiate it
with various means.

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References
cbinsights.com. (2019) The Race For The Electric Car. [ONLINE] Available from:
https://www.cbinsights.com/research/report/electric-car-race/ [Accessed 11/11/2019].
Chapman, A.J. and Itaoka, K. (2018) Energy transition to a future low-carbon energy society
in Japan's liberalizing electricity market: Precedents, policies and factors of successful
transition. Renewable and Sustainable Energy Reviews, 81(1), pp.2019-2027.
deloitte.com. (2019) New market. New entrants. New challenges. [ONLINE] Available from:
https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/manufacturing/deloitte-uk-
battery-electric-vehicles.pdf [Accessed 11/11/2019].
global.toyota. (2018) Worldwide Operations. [ONLINE] Available from:
https://global.toyota/en/detail/5286101 [Accessed 11/11/2019].
global.toyota. (2019) BYD, Toyota Agree to Establish Joint Company for Battery Electric
Vehicle Research and Development. [ONLINE] Available from:
https://global.toyota/en/newsroom/corporate/30565932.html [Accessed 11/11/2019].
Greimel, H. (2019) Can Toyota catch up in battery-electric game?. [ONLINE] Available
from: https://www.autonews.com/sales/can-toyota-catch-battery-electric-game [Accessed
11/11/2019].
Iudina, S.V., Garifullina, M.S. and Serikova, N.V. (2015) Trends in development of corporate
organizational and managerial innovations in Russia and the principles of lean production.
Mediterranean Journal of Social Sciences, 6(3), p.492.
Jobber, D. and Lancaster, G. (2015) Selling and sales management. Harlow: Pearson.
Maikaew, P. (2019) Toyota anticipates decade of electric cars. [ONLINE] Available from:
https://www.bangkokpost.com/business/1792504/toyota-anticipates-decade-of-electric-cars
[Accessed 11/11/2019].
Mukherjee, S. (2019) Toyota, Suzuki plan early launch of battery EVs in India. [ONLINE]
Available from: https://m.economictimes.com/industry/auto/auto-news/toyota-suzuki-plan-
early-launch-of-battery-evs-in-india/articleshow/71714364.cms [Accessed 11/11/2019].
news18.com. (2017) Toyota and Panasonic Considering Partnership to Develop Batteries
for Electric Vehicles. [ONLINE] Available from:

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https://www.news18.com/news/auto/toyota-and-panasonic-considering-partnership-to-
develop-batteries-for-electric-vehicles-1602985.html [Accessed 11/11/2019].
nikkei.com. (2019) Toyota to build battery plant in China, eyeing hybrid policy shift.
[ONLINE] Available from: https://asia.nikkei.com/Spotlight/Electric-cars-in-China/Toyota-
to-build-battery-plant-in-China-eyeing-hybrid-policy-shift [Accessed 11/11/2019].
Pinkse, J., Bohnsack, R. and Kolk, A. (2014) The role of public and private protection in
disruptive innovation: The automotive industry and the emergence of low‐emission vehicles.
Journal of Product Innovation Management, 31(1), pp.43-60.