MKT600 Principles of Marketing

Running head: PRINCIPLES OF MARKETING
Principles of marketing
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1PRINCIPLES OF MARKETING
Executive summary
The aim of this report is to discuss about the targeted customer segments of Toyota. Different
variables are being used in identifying the customer profiles for them. In addition, this report also
identified the marketing mix elements of Toyota and evaluated their key gap areas. A few
recommended steps are discussed in this report for each of these elements, which will help
Toyota in enhancing their business potentiality.

2PRINCIPLES OF MARKETING
Table of Contents
Identification of the target markets..................................................................................................3
Demographic segmentation.........................................................................................................3
Geographic segmentation............................................................................................................3
Psychographic segmentation.......................................................................................................3
Positioning strategies.......................................................................................................................4
Evaluation of the extended marketing mix......................................................................................5
Product.........................................................................................................................................5
Price.............................................................................................................................................6
Promotion....................................................................................................................................7
Place.............................................................................................................................................8
People..........................................................................................................................................9
Process.........................................................................................................................................9
Physical evidence.........................................................................................................................9
Partnerships................................................................................................................................10
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

3PRINCIPLES OF MARKETING
Identification of the target markets
Demographic segmentation
In terms of demographic segmentation, the target customers for Toyota are the age
groups between 30 and 55. This age comprises of corporate professionals and business personnel
who are having the purchasing power of having the Toyota cars. In addition, both the males and
female customers are being targeted for their cars (Sandy, Gosling & Durant, 2013). In terms of
the income level, customers from having middle and higher income levels are being targeted due
to the reason that Toyota is having both mass market affordable cars as well as premium cars.
Geographic segmentation
In terms of the geographic segmentation, customers from the tier I and II regions and
countries are being targeted. This is due to the reasons that Toyota is having huge market
penetration across large number of countries across the world (Liu et al., 2013). In addition, their
dealerships are having present in urban as well as rural locations. Thus, customers from these
locations will be targeted.
Psychographic segmentation
In terms of the psychographic segmentation, customers with having requirement for the
feature laden cars will be targeted. This is due to the reason that Toyota offers good number of
technologies and features in their cars across different price ranges (Tsai et al., 2015). In
addition, the customers having the requirement for safety and price effectiveness will also be
targeted due to the fact that Toyota cars are known for their reliability and safety features. In
addition, the lower cost of maintenance also helps in targeting the customers.