Marketing Management Strategies of Toyota

This paper analyzes the marketing management strategies of Toyota, including STP strategy, marketing mix, and contemporary issues affecting marketing. It also discusses the nature of marketing and marketing management in Toyota.

Running head: Marketing management

Marketing management
Table of Contents
Introduction.................................................................................................................................................3
Nature of marketing and marketing management in Toyota........................................................................4
STP (Segmentation, targeting and positioning) strategy of Toyota.............................................................4
Segmentation...........................................................................................................................................5
Target market..........................................................................................................................................5
Positioning strategy.................................................................................................................................6
Marketing mix for Toyota...........................................................................................................................7
Contemporary issues that might affect marketing........................................................................................9
Recommendations.....................................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................11

Marketing management
Introduction
In today’s era, Toyota Corporation is growing and maximizing its effectiveness and
outputs. This paper main aims to identify and analyze the unique and dynamic marketing
strategies to stay in the competitive market. Toyota is a biggest leader in automotive industry
who is offering innovative vehicles to the customers across the world. The problems and issues
that managers face are always a hot topic in the business of Toyota. The challenges faced by the
organization are also explained in the task briefly. The marketing mix strategy, segmentation,
positioning and targeting strategies also have been presented in the task. More detail of the task
has been elucidated below.
Toyota is a Japanese multinational automotive manufacturer which is incorporated in
1937 with its headquartered is situated in Aichi, Japan. The company’s structure comprised
approx 364,445 workers globally (Toyota, 2018). It is the sixth biggest company measured by
revenue in the world. The company is using its guiding rules and principles to manufacture
reliable sustainable development and vehicles of community by engaging and employing
innovative and high quality products and services (Takeuchi, 2008). It is noted that Toyota is one
for the customer satisfaction in the majority of European countries and has developed an
effective and excellent reputation and bran position across Europe for customer services and
reliability (Toyota, 2018).
In today’s modern world, the company is growing quickly in various countries across the
world. It is one of the biggest and leading companies to promote and improve the mass market
adoption of hybrid vehicles around the globe. It is also a biggest market leader in hydrogen fuel
cell vehicles. The main aim of the firm is to be a market leader in automotive industry. The
company is selling various types of vehicles such as Toyota innova, Toyota fortuner, Toyota
corolla Altis, Toyota Yaris, and Toyota platinum Etios. The company uses Just-in-time
production process to manufacture and sell its products in the marketplace (Monden, 2011).

Marketing management
Nature of marketing and marketing management in Toyota
It is stated that marketing management may be defined as a process of developing and
improving the strategies and planning for product or service, advertisement, sales and promotion
to reach the potential and effective target audience (Buckley & Horn, 2009). Marketing is a
significant and unique concept that is used by the organizations to examine and analyze the
requirements and needs of their key target audience and then make effective and dynamic
decisions to satisfy those needs and requirements in an effective way than the rivalries.
Marketing management plays a vital role in encouraging and improving the mission and business
of the company. Marketing department is managed and controlled by the company to promote
the automotive products in the international market. Various marketing strategies such as
marketing mix, STP strategy, pestle analysis, SWOT analysis and porter five forces analysis are
used by the company to increase and enhance the sale of automotive products globally.
Marketing department at Toyota conducts a survey and research to analyze and identify the
needs, preferences and choices of the consumers regards to automotive products (Drucker,
2012).
The main motive of the marketing manager is to maximize profitability and revenue for
the business by selling several vehicles to the consumers in the competitive market. The
marketing manager ensures the optimum and effective use of resources available within the
company. The Marketing department has to conduct various exchange functions and research
functions. This department works to attain desired marketing goals and objectives globally. The
marketing manager is responsible effective planning, organizing, directing and controlling the
marketing activities and actions. No company can survive and attain its long term mission and
vision without using dynamic and excellent marketing strategies. The marketing department
keeps an eye on the performance, effectiveness, plans and strategies of the competitors to stand
against the rivalries globally (Amasaka, 2007).
STP (Segmentation, targeting and positioning) strategy of Toyota
It is stated that STP strategy plays an empirical role in each and every company to gain
competitive benefits in the global market. The STP strategy for Toyota has been discussed
below.

Marketing management
Segmentation
Segmentation is a process of identifying and measuring the customers with unique and
similar traits, features and analyzes them after considering the various variables which makes
them different from the competitors (Schilling, 2010). There are ample of benefits of
segmentation include differentiation, tailored marketing mix, opportunities and target market
selection. Segmentation at Toyota on the basis of three variables that include following:
Behavioral Psychographic Demographic
 Benefit sought
 Consumer behavior
 Usage
 beliefs and perception
 Purchase occasion
 Lifestyle
 personality
 profile
 Socio-economic
 Income level
Sometimes, segmentation is also done by the company on the basis of geographic. In geographic
segmentation, Toyota focuses on the location and places to attract maximum number of
customers globally (Muller, 2009). In the above table, it is cleared that segmentation strategy is
essential to understand different customer groups and customer profiling in the global market.
For Toyota Innova the company can target its upper and middle class people in the international
market. The market segmentation in automobile vehicle industry is done on the basis of price and
size. Sedan, Hatchback, Hybrid segment and SUV are the included in the segmentation of
Toyota (Buckley & Horn, 2009).
Target market
It has been analyzed that target market plays a significant and major role in each and
every company to meet the long term requirements, desires and needs of the customers globally.
The main target market of the firm includes businessmen, young executives and urban families.
By identifying and analyzing the potential and unique target market, the company has been able
to earn maximum revenue and returns in the international market (Xu, Yang, Li, Ouyang & Hua,
2012). It has been analyzed that Toyota uses differentiated targeting strategy for selling and
manufacturing its Innova product as per the customers segments and enhance the customer
satisfaction. Apart from this, the potential customers of the company are people who maintain

Marketing management
high and middle income level in the international market. These people generally work in the
field of business and usually move to work with their business partners. Along with this, they are
further having the trips with family in the weekend. In today’s competitive world, people are
willing to invest a large sum of money to buy themselves a personal car like Innova
(Chowdhury, 2014).
Positioning strategy
It is reported from the various studies that value based and user benefit positioning
approaches are being used by the firm for showcasing the functional advantages of the rendering
of the organization. Toyota is one of the biggest corporations in the setting of car assembly
facility in the market. From past to now, the company always get high market share and
profitability in the cheap automotive industry across the globe. However , to further improve and
enhance the market share and sale of Innova car, the firm is comparing its products from the
competitors. It has been measured that the company has stepped into the branded and luxury care
segment in the global market. The firm focuses the prices of the competitors to compete with
rivalries widely. Toyota also creates a difference by supporting consumers can test their products
at the stores or showroom (Hitt, Ireland & Hoskisson, 2012).
The positioning strategy of the company aimed at Innova car manufacturers and some
other vehicles in the competitive market. In today’s globalization world, the organization uses a
differentiation strategy to operate and manage business activities globally. This strategy further
focuses on the distinguishing effective and unique point of difference to minimize competition
and reach a new market segments. Recently, the company developed and improved a marketing
campaign to attract cost conscious customers by reducing the prices of Innova cars. To position
automotive products, the company also focuses on the environmental factors in the competitive
market. Moreover, the company is committed to exceeding customer demand and expectations
for style, service, value, environmental responsibility and performance. Thus, the firm provides
several cars with fashionable look and resolution to ample of environmental issues too (Osono,
Shimizu, Takeuchi & Dorton, 2008).

Marketing management
Marketing mix for Toyota
It is stated that marketing mix (8Ps) reflects the company’s strategies or approaches for
interacting and communicating with its target audience in the market. As one of the biggest
companies in the international automotive industry, Toyota target market is quite different and
diverse in terms of preferences, choices and needs of the customers. By using marketing mix
strategy, the firm has been able to capture entire target audience in the global market. The
marketing mix (8Ps) for Toyota has been discussed below.
Product strategy: The company provides their key target audience with intangible and
intangible automotive products ranging from the various cars to warranties. A product of
excellent quality is generally self marketed and this is what makes company’s vehicles so
attractive and desirable. The company has nineteen car models that are further divided into
various categories. It is stated that the company has diverse set of automotive products. This
factor of the marketing mix analyzes and measures organizational outcomes for the key target
audience (Graham, 2008). The products such as Lexus, automobile, Marine automobiles,
Engines, and Toyota automobiles are covered in the company’s product line. It is noted that
Toyota Innova cars are the most significant and well known in the product mix. The product mix
strategy helps in identifying and minimizing the risks and challenges of the market. The firm also
renders vehicle parts like gears and other parts. As far as intangible parts such as financial
services, road assistance, care services, warranties and extended warranties are also provided by
the company internationally. The company has put together the hybrid product line to manage
and deal with the maximized prices of gas. Thus, the product mix strategy is essential to beat the
rivalries in the international market (Panmore, 2017).
Place/distribution strategy: It is analyzed that dealerships are the main and unique places for
distributing automotive products in the global market. The place strategy determines and
analyzes the venues where the key target audience may access the company’s automotive
products. The dealerships and retailers are main and effective places to distribute its products
widely. The employees are highly skilled and potential with not only sales but also automotive
product’s information, order taking, data collection and finance insurance. It is analyzed that
Toyota focuses on the pull strategy to make Innova cars attractive and effective. Along with this,

Marketing management
the firm has sales representative going from door to door in Japan. The dealer tries to reduce
supply chain costs to maximize returns and revenue (Bhasin, 2018).
Pricing strategy: It is seen that prices of Innova cars are dependent on the models and product
type. This factor of marketing mix analyzes and identifies how the company sets the prices of its
automotive products. Toyota uses value based and market oriented pricing strategy capture
various customers across the world. Toyota implements the market oriented pricing approach to
analyze and identify the prices based on the cost of the rivalries and market situations. The firm
analyzes and identifies the choices, preferences and expectations of the customers to determine
appropriate prices of the products globally (Panmore, 2017)
Promotion strategy: It has been found that company’s promotion strategy covers all the
strategies and tactics of marketing cooperation and communications (Mangold & Faulds, 2009).
Toyota uses ample of promotional and advertisement strategy to promote its Innova cars in the
competitive market. It uses advertising, personal selling, sales promotion, public relations and
direct selling. It is stated Toyota uses personal selling through dealerships who personally
encourage automotive products to dynamic and potential customers. The organization also uses
advertising on various social media channels such as websites, facebook, TV and newspapers
(Bhasin, 2018).
People strategy: Toyota is keen to empower its employees in the production line and service.
This has made its workforce to become unique and creative and customer friendly. With
dynamic and effective workforce, the company has been able to make a dynamic image in the
global market. The management at Toyota has set the essential supportive structure and policies
that have witnessed to have the right and unique people to drive a business forward. An effective
and dynamic management team is maintained by the company to run the business activities and
operations smoothly.
Process: It is stated that the company hates favors and waste the lean manufacturing process.
The firm remains opposed to ideas and people that waste time, resources and material. Toyota
uses innovative and dynamic management process to conduct business functions effectively and
efficiently (Prowriters, 2018).

Marketing management
Physical evidence: When a business deal is made then physical evidence must be collected in a
hassle free manner. The company has maintained a tangible and effective presence and unique
dealership with its new and old customers as well. It helps in making automotive products
effective and attractive for selling in the global market (Kotler, 2011).
Partnerships: The company maintains good and strong relationship with its various partners,
dealers and front line executives to enhance and improve the customer satisfaction in the
competitive market (Prowriters, 2018).
Branding and positioning also play an imperial role to analyze the policies and plans of
the competitors globally. Under branding strategy, the company plans to attain desired objectives
and goals by evaluating the various strategies and approaches. The competitiors of Toyota
include Honda motors, Ford Motor Company. Nissan motors, and Mitsubishi motors. Branding
and positioning will help to minimize competition amongst competitors widely as it also helps in
boosting revenue and outcomes in the competitive market. SWOT analysis, pestle analysis and
porter five analysis are done by the firm to analyze and determine the challenges and threats of
the market (Cooper & Edgett, 2008).
Contemporary issues that might affect marketing
After the various studies, it has been elucidated that Toyota is facing ample of issues and
challenges in today’s modern world. These issues include environment, sustainability, CSR,
technology, social media and society issues. The company’s largest issues is its damaged brand
image and financial position caused by sudden acceleration recalls in the market. Aging lineup of
boring vehicles also hampers the reputation and image of the firm adversely (Sifyfinance, 2018).
Due to faulty vehicles, the company is falling loyalty, trust and confidence of the workers in the
international market. Aside this, the firm faces ample of environmental issues such as climate
change, resource depletion, habitat loss, and water scarcity. These issues or challenges destroy
the reputation of Toyota company in the international market. In addition, ample of social media
issues such as lacking strategy, inconsistent effort and too much automation also are being faced
by the company in today’s globalization world (Marucheck, Greis, Mena & Cai, 2011).
Moreover, the company is unable to use innovative and advanced technology due to
vehicle recall issues. One of the significant issues that dealt by the company is information

Marketing management
technology. The another issue that Toyota face is that demand fluctuates so rapidly thus, the
company does not have any specific tool or method to estimate demand fluctuation. Mechanical
issues are also entertained by the company while running the business at international level (Flint
and Flint, 2010). CSR and sustainability play a fundamental role in Toyota to attain maximum
success and growth in the international market. Thus, various corporate structure and risk
management issue may affect the target and brand image of Toyota in the competitive market.
Due to vehicles recalls, the company could fail to provide effective and dynamic working
conditions and pay to the workforce at the workplace. It also may affect the human rights and
interest of the workers globally. All these issues put direct impact on the marketing strategies and
profitability of Toyota (Liker & Ogden, 2011).
Recommendations
The recommendations for success and progress of Toyota have been elaborated below.
 It is recommended that Toyota shall focus on the business and corporate level strategies
to strive with rivalries internationally. The firm should also focus on the diversification
strategy to distinguish its Innova vehicles from the rivalries globally.
 Toyota should improve and enhance the quality of current production system plant and
must identify the significant distribution channels to promote automotive products
effectively.
 Along with this, the firm must focus on the quality, features and prices of the products to
attract and retain wide range of customers internationally.
 The employees and service system must be improved to enhance and encourage
reputation with consumers in a large extent.
 The company further must pay attention to the environment, to encourage the
development and improvement of the environmentally friendly products. Aside this, the
firm needs to join participate in various social activities and actions. This will help to
increase market share in the competitive market.
 Toyota must constantly hold exhibition and display products widely. The firm can invite
a wide range of celebrities to promote and improve the new products and services.

Marketing management
 Aside this, the firm must set up some other showroom and stores so that the customers
can direct test and examine the company’s products and services. This also helps the
shorten the distance between the firm and company.
 Physical evidence shall be given by the company to the customers to make a good
presence internationally. The firm should appoint potential, skilled and qualified
employees to resolve and handle the complaints, issues and queries of the customers.
Branding and positioning strategies also have been explained in the task. Various issues
such as social, technology, CSR, and environmental issues are being entertained by the
company while conducting business actions in a large extent.
 SWOT analysis shall be done to identify and measure the strengths and weaknesses of the
firm and analyze growth opportunities and threats of the market.
Conclusion
It is concluded from the above mentioned study that Toyota still a one of the biggest and
well known brands in automotive industry. It is stated that marketing management is necessary
to promote products and minimize the challenges and threats of the market. The above analysis
indicates that how the company uses marketing strategies to grow and survive its business
globally. In addition, Toyota uses STP strategies to improve and promote Innova vehicles in the
competitive market. At the end, some suggestions have been given to make a strong and
effective brand position in near future.

Marketing management
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Marketing management
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