This report analyzes the consumer behavior of Toyota Lexus in Singapore using SWOT and PESTEL analysis. It discusses the influence of personal, psychological, and social factors on consumer decision making and recommends effective marketing strategies to positively influence consumer behavior.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Running head: Marketing Consumer Behavior1 Marketing Consumer Behavior Student’s Name University Course Date
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Marketing Consumer Behavior2 Executive Summary This a report describing more about the consumer behavior in the marketplace. This document will outline the consumer behavior based on the Toyota Lexus in Singapore as the brand under consideration. The background of the organizations is discussed including the vision and mission, market share and market strategies in place. The influence of consumer behavior is explained in details, these factors include Personal, Psychological and Social factors. These are the main influence of consumer decision making towards all product. Consumer decision making is well elaborated using the viable example of Toyota Lexus. Finally, the organization is recommended to use effective marketing 4P's to influence positively the consumer behavior and also, have a strong competitive advantage in the marketplace.
Marketing Consumer Behavior3 Table of Contents Table of Contents.......................................................................................................................................3 Introduction...............................................................................................................................................3 Situation Analysis of the Company..........................................................................................................4 Company Background..........................................................................................................................5 Vision Statement....................................................................................................................................5 Mission Statement.................................................................................................................................5 Market Situation....................................................................................................................................6 SWOT Analysis......................................................................................................................................6 PESTEL Analysis..................................................................................................................................8 Target Market Description.......................................................................................................................9 Target Market Decision Making Process.................................................................................................9 Social Influence on Buying Behavior.....................................................................................................10 Psychological Influence on Buying Behavior.........................................................................................10 Personal factors influence Buying Behavior..........................................................................................11 Marketing Strategy Recommendation...................................................................................................11 Conclusion................................................................................................................................................12 References................................................................................................................................................13
Marketing Consumer Behavior4 Introduction Consumer behavior is a very important factor which every organization should analyze in the marketplace. Analyzing and examining consumer behavior will add and improve marketing advantage of the organization towards the business decisions, therefore, meaning this is a very vital concept to put under the study on marketing trends. However, consumer behavior can be described as, the purchasing decision which is made by individual, group or organization towards purchasing a service or product in the market (Hartmann, Apaolaza, & D’Souza, 2018). All these decisions are towards to fulfill the desired needs and wants of the product and service from a certain organization. Studying consumer behavior is very important for an organization since it will help the organization to identify new and potential opportunities in the marketplace which have not utilized. Also, this study of the consumer behavior will help the business to have a clear knowledge on how the potential consumer will behavior when new product or service is introduced in the market. For the organization to understand consumer behavior full, it should be able ready to identify and analyses the factors which affects the organization. These factors include personal, psychological and social factors. Consumer behavior model also is used to help the organization to achieve these objectives in the marketplace. This report will discuss more on consumer behavior towards a certain product in the market. Toyota Lexus is the product to be discussed in details using SWOT and PESTEL analysis in the consumer behavior. All this will be based in Singapore (Kamiura, 2018). Toyota Motors Manufacturing Company is the Business organization to be under consideration since is the main producer of Toyota Lexus in Singapore.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Marketing Consumer Behavior5 Situation Analysis of the Company This is the analysis which helps the organization to understand the consumer and the market in more details including their available products for the customer. Situation analysis in this report will provide company background information, mission and vision statement of the company and the market state inform of market share. Company Background Toyota Motors Company limited is the manufacturer of automobile products over the world. Is amongst the leading Companies in this industry of automobile manufacturer, therefore, having a large market share (Suga & Miyata, 2018). The company initially was founded in Japan in the year 1937 before it starts opening branches all over the world. The company's products are always superior in the market since the company is used to produce are well-designed vehicles with long-lasting engines. This factor makes the company to have a large and competitive share in the market. The second largest branch after Japan Toyota is located in the United Kingdom, all these branches of Toyota Company produces products for their own country and export the rest outside the country (Lee, Cartabiano, Hatake & Hokao, 2018). The company produces many brands which are trending in the market, including Toyota Lexus in Singapore. Vision Statement This is the statement which declares the organization's objectives and goals aiming to achieve and offer guidance towards the organization decision making. This statement displays a clear information of the organization inspiration to the short-term and long-term objectives which the organization desired to achieve (Bowen, 2018). The vision statement of Toyota Company is based from the origin country which is America, but later on the company expanded globally where the same vision is being used. The statement state that, "To be the most successful and
Marketing Consumer Behavior6 respected car company in America”. Finally, the company is the success and respected globally including Asia, Singapore. Mission Statement A mission statement is a statement which provides a short-term goal of the organization. This statement describes the general purpose of the organization through the identification of goals and operations of the organization (Engel, 2018). Other fundamental matters are discussed by this statement is the primary product, service, and customer of the organization, including the market share. Toyota mission statement states, “To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America”. Customer in Singapore enjoys the same advantage as the company as stated in the mission statement, high- valued and satisfying products. Market Situation This is how the market environment have impacts on the Company performance. The company have a strong influence on the market since in its industry of automobile, is amongst the companies which own largest market share. This is enough evidence that the company has strong marketing strategies for the product and the market. The company's strategy is, to produce quality brands like Lexus which are satisfying the customer needs. This strategy is achieved by the company by producing high architect and innovative product with a unique strong engine in the market (Visser, Schoormans & Vogtländer, 2018). Toyota Lexus is not the only brand in the market concern car vehicles, many are existing from other companies like Daimler-Benz. Toyota Lexus from Toyota faces stiff competition in the market but finally, it remains more competitive because of its quality.
Marketing Consumer Behavior7 The market situation is analyzed and evaluated successfully using SWOT and PESTEL Analysis tools. SWOT Analysis The SWOT analysis helps to identify and understand the organization product’s Strength and Weakness in the market, and Opportunity and Threat behind it in the marketplace performance. SWOT analysis affects the internal performance of the organization. The following points are SWOT analysis details of Toyota Lexus brand in Singapore as product and as the whole organization (Groening, Sarkis & Zhu, 2018). Strengths -Toyota Lexus is a strong brand in the market, therefore, improving the image of the organization. -The local and global chain of supply is strong. This improves the availability of the product in the market. -This brand displays strong innovation ability of the organization in the market. These strengths of the Toyota Lexus enhances it to have a strong competitive advantage in the market locally Singapore and globally. Weakness -The brand only is focused on one category of the vehicle, which is cars. -The organization culture and structure is weak in the market. -The brand is only focused on the high economic class customers.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Marketing Consumer Behavior8 The weakness of the brand should be minimized and maximize the strengths since this will enable the brand to penetrate in the market and win large market share. Opportunities Both opportunities and threats are focused on the external trends of the product in the market. The opportunities include: -Toyota Lexus is growing as the way the market opportunities grows. -Fuel efficient for an automobile is increasing demand towards the brand. -Increasing vehicle interest in electronics which are advanced in technology. Threats The main threat of the brand is from competitors. These threats include: -Low-cost competitors which are progressively growing in the market. -Competitors are innovative and creative in the market. This tool of SWOT analysis it will make the management of Toyota Lexus being able to make flexible decisions making toward solving a problem. PESTEL Analysis PESTEL is another tool of analysis which is used by Toyota to analyze the market. These are political, economic, social, technological and legal factors influencing the market (Moses & Ambrose, 2018). Political factors. These are factors which affect the product due to the political condition of the country. Toyota Lexus is favorably influenced since is the treading car in the country.
Marketing Consumer Behavior9 Economic factors. These are factors like the exchange rate of currency, inflation, economic factor in the industry like tax rates. Social factors. The consumer influence of the brand is increasing in the industry since the target customer is experiencing positive altitudes and believes towards the brand. Technological factors. The brand is highly affected by the current creativity and innovation in the market. The brands are highly designed and developed according to the new technology. Environmental factors. These are natural environmental catalyst surrounding the consumer. For example, environment pollution and droughts affects consumer behavior in the market. These factors always affects the consumer decision, for example, if the geographical landscape is not good to enhance smooth movement of the Toyota Lexus in the area, the buyer will not buy the brand. Legal factors.The government regulation and policies influence the brand in the market. The industry standards are cumulative and favorable in the market of Toyota Lexus. Target Market Description This is the market segment which the brand is aiming to capture in the market. Target market helps the product in the market to trend since is the specific section held in the market about the product (Cavusgil, Deligonul, Kardes & Cavusgil, 2018). The brands have influenced all categories of individuals in the market regardless of the following factors: demographic, Behavior, Psychological and geographic. Considering all these factors in the market, Toyota Lexus is a successful brand to achieve all the target market.
Marketing Consumer Behavior10 Demographic factors This includes factors like age, sex, income and education of the consumer. The customers having age 25 years and above is a grown up and can purchase anything including Toyota Lexus only if is able. The price of Toyota Lexus is influenced by the customer’s income level, who belong in the range of $5,000 and above are able to purchase, since the brand is somehow expensive. Male is the favorable gender by the brand design, therefore, decision making of purchasing this brand is based specifically on men only. All this is based on the Singapore population. Psychographic factors These are factors which segmented the market using customer’s life style, personality and any other related factors. Consumer with high class economy and the personality traits are of good perception of the brands always purchase the brand in Singapore. This brand is focusing people with stable life style in Singapore. Behavioral factor This factor targets the consumer behavior of purchasing power. The brands targets the customer who are loyal in buying other types of vehicle brands in Singapore. These are people who have a strong purchasing decision when it comes to the expensive products in the market. Geographic factor The target consumers of Toyota Lexus was based on the geographic location. Is important to consider this when launching a new product in the market. In Singapore Toyota Lexus aims the consumers who used to live in towns and other urban areas and not in the rural areas.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Marketing Consumer Behavior11 Target Market Decision Making Process Toyota Lexus is highly affected by the decision and behavior of customers in the market. The following are decision making processes towards the brand in the market (Smith, 2018). Steps include: 1.Need for recognition. Need is the factor which first triggers the consumer buying decision. What is the need for purchasing this Toyota Lexus brand? 2.Gather of information. This step helps the individual to gather information related and required to buy the brand of Toyota Lexus. This information can be found from personal, commercial and public sources. 3.Evaluate and analyze collected information. This helps the potential customer to have several alternatives towards the brand. This enabled the customer to have several tastes, needs, and pocket. 4.Purchase the product.After the customer is contented with alternative choice finally, the customer purchases the brand (Toyota Lexus). 5.Post-purchase evaluation.This occurs after the product is purchased. This enables the customer to evaluate whether the brand is useful and it fulfills the customer’s needs. Is the customer comfortable in using this Toyota Lexus in his life? Social Influence on Buying Behavior Social factors like family decisions always affect the buying behavior of the potential customer. Family decision. For example, once an individual is deciding to buy a Toyota Lexus for family usage, he/she must involve all family member in this decision. Due to the different decision idea from each individual, finally, the family can agree to purchase or not because of their reasons (Zahid, Ali, Ahmad & Amin, 2018).
Marketing Consumer Behavior12 Social classhas affected consumer behavior. If the product negatively affects the individual social culture, the means decision making towards buying the product will be hard (Motyka & Andrzejewski, 2018). Psychological Influence on Buying Behavior Perception. This is an external feel of the consumer towards a certain brand. If the consumer has a bad perception of the product obviously he will not buy it and vice versa. This aspect affects more decision making toward purchasing the product (Puccinelli, Grewal & Avnet, 2018). Motivation.Is the customer has been motivated by the brand in one or the other? If the brand motivates the customer to buy it aiming to fulfill the need, this will be a good motivation. Therefore, this will encourage the consumer to make a strong decision towards purchasing that product (Principato, 2018). Personal factors influence Buying Behavior Personality.This is the internal influence of an individual towards the interest of the product. The trait of each customer is different from the other, therefore, affecting the buying behavior. If the personal characters of the individual like the product automatically, this improve the decision-making process in purchasing the product (Trotta, 2018). Age.This is a very crucial aspect influencing the consumer behavior. Age bracket limits the decision making of the individuals towards certain products. For example, a child of age 5 to 10 is not able to buy Toyota Lexus using his own money even if he likes the brand.
Marketing Consumer Behavior13 Marketing Strategy Recommendation The company should have a strong and viable marketing strategies since these strategies will influence the consumer behavior positively and gain competitive benefits in the market. These include 4P's of marketing (Ang & Rusli, 2018). Price.The price of the brand should be reasonable and affordable to all able and willing consumer in the marketplace. Product. The brand must be of high quality compared to that of a competitor. This will help to satisfy the customer needs accordingly. Place. The locations of the organization in the marketplace should be in a strategic position. This will help the customers to access the products from the organization easily. Also, the organization must provide enough information about the product, therefore, attracting more potential customers. Promotion.The organization brand must have an effective means of creating awareness of the product to the market so more to the potential consumers. This can be done through active advertisement and promotional programs like launching a new product in the market. The organization is recommended to use 4P's in the market effectively. When these P's (price, product, place, and promotion) are utilized according to the organization objective, the business will influence the buying decisions of both existing and potential customers in the market (Maison, 2018).
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Marketing Consumer Behavior14 Conclusion In summary, the above report has provided more information on how consumer behavior influences the buying decision towards the product. This theory was based on the Toyota Lexus as the brand in Singapore using Toyota Motors Limited Company. Is very important for the organization to study and evaluate well the consumer behavior in the market before making any decision towards a new product or the existing product in the market. The organization should be aware of the factors which influence the brand's decision from the consumer side.
Marketing Consumer Behavior15 References Ang, C., & Rusli, H. (2018). The Impact of Marketing Mix 4Ps and Consumer Behavior toward Purchase Decision of Adidas Products.iBuss Management,6(2). Bowen, S. A. (2018). Mission and Vision.The International Encyclopedia of Strategic Communication, 1-9. Cavusgil, S. T., Deligonul, S., Kardes, I., & Cavusgil, E. (2018). Middle-Class Consumers in Emerging Markets: Conceptualization, Propositions, and Implications for International Marketers.Journal of International Marketing, 567-782 Engel, M. L. (2018). Crafting the ideal mission statement for your organization.Leader to Leader,2018(87), 7-12. Groening, C., Sarkis, J., & Zhu, Q. (2018). Green marketing consumer-level theory review: A compendium of applied theories and further research directions.Journal of Cleaner Production,172, 1848-1866. Hartmann, P., Apaolaza, V., & D’Souza, C. (2018). The role of psychological empowerment in climate-protective consumer behaviour: An extension of the value-belief-norm framework.European Journal of Marketing,52(1/2), 392-417. Kamiura, S. (2018).U.S. Patent Application No. 29/601,096. Lee, E. Y., Cartabiano, I. R., Hatake, H., & Hokao, H. (2018).U.S. Patent Application No. 29/561,387.
Marketing Consumer Behavior16 Maison, D. (2018). Qualitative Marketing Research:Understanding Consumer Behaviour, pp. 56-59. Moses, S., & Ambrose, C. (2018). A Study on Impact of Marketing Strategies on Consumer Behaviour towards FMCG sector with reference to Nestle India Ltd and Britannia Industries Ltd.Sumedha Journal of Management,7(2), 190-198. Motyka, S., & Andrzejewski, S. A. (2018). Effect of Affect on Consumer Behaviour:A Meta-Analytic Integration,pp. 67-90. Principato, L. (2018). Factors and Behaviours Affecting Food Waste at Consumption Level: The Household Food Waste Journey Model. InFood Waste at Consumer Level, pp. 15-34. Puccinelli, N., Grewal, D., & Avnet, T. (2018). Effect of Affect on Consumer Behaviour:A Meta-Analytic Integration,pp. 567-590. Smith, W. A. (2018). Social marketing: Beyond the nostalgia. InSocial Marketing, pp. 21- 28. Suga, K., & Miyata, S. (2018).U.S. Patent Application No. 29/587,315. Trotta, G. (2018). Factors affecting energy-saving behaviours and energy efficiency investments in British households.Energy Policy,114, 529-539. Visser, M., Schoormans, J., & Vogtländer, J. (2018). Consumer buying behaviour of sustainable vacuum cleaners-Consequences for design and marketing.Journal of Cleaner Production,195, 664-673.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Marketing Consumer Behavior17 Zahid, M. M., Ali, B., Ahmad, M. S., & Amin, N. (2018). Factors affecting purchase intention and social media publicity of green products: The mediating role of concern for consequences.Corporate Social Responsibility and Environmental Management,25(3), 225-236.