Impact of Research and Development and Promotion on Sales Volumes of Toyota

Running head: PROFESSIONAL PROJECT
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1PROFESSIONAL PROJECT
Executive Summary
The research is aimed at identifying the impact of research and development and promotion on
the sales volumes of Toyota. The study had separately analyzed the impact of both the
independent variables on the dependent variable. Secondary data had been collected to conduct
the study and the result had shown that research and development had more significant impact
than advertisement on sales volumes. The research has concluded essential elements of both the
independent variable that are crucial in improving sales volumes.

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Table of Contents
1.0 Introduction................................................................................................................................4
1.1 Background of the study........................................................................................................4
1.2 Rationale of the study............................................................................................................5
1.3 Research aim..........................................................................................................................5
1.4 Research Hypothesis..............................................................................................................5
1.4 Research objectives...............................................................................................................5
1.5 Research Questions................................................................................................................6
2.0 Literature Review......................................................................................................................7
2.1 Involvement of cost in essential aspects for product research and development (R&D)......7
2.1.1 Theory for product R&D................................................................................................7
2.1.2 Product innovation..........................................................................................................8
2.2 Cost involvement in important aspects of advertisement....................................................10
2.2.1 Digital marketing..........................................................................................................10
2.2.2 Traditional marketing...................................................................................................10
2.3 Impact of product research and development on sales of an organization..........................10
2.3.1 Transparent information...............................................................................................10
2.3.2 Higher customer satisfaction........................................................................................11
2.3.3 Impact of research and development on generation of revenue.......................................11
2.3.3 Development of more patent products..........................................................................12

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2.4 Impact of advertisement on sales of a company..................................................................12
2.4.1 More knowledge on diverse effort................................................................................12
2.4.2 Ease in sharing feedbacks.............................................................................................12
2.4.3 Developing a distinctive brand.....................................................................................13
2.4.4 Impact of advertisements on generation of revenue.....................................................13
3.0 Research Methodology............................................................................................................14
3.1 Research Philosophy............................................................................................................14
3.2 Research Approach..............................................................................................................14
3.3 Research Purpose.................................................................................................................15
3.4 Data Collection Method.......................................................................................................15
3.5 Data Analysis Technique.....................................................................................................15
3.6 Sampling Technique............................................................................................................15
3.7 Research Ethics....................................................................................................................16
3.8 Research Limitation.............................................................................................................16
4.0 Findings and Analysis..............................................................................................................17
4.1 Quantitative analysis............................................................................................................17
5.0 Conclusion...............................................................................................................................23
5.1 Objective 1- To identify the factors researched by R&D department that can promote sales
of Toyota automobiles................................................................................................................23

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5.2 Objective 2- To investigate the advertisement aspects that can attract customers to
purchase Toyota automobiles....................................................................................................24
5.3 Recommendations................................................................................................................24
References and Bibliography.........................................................................................................25

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1.0 Introduction
1.1 Background of the study
This study will portray the impact of research and development in improving the sales
volumes of the organization named Toyota. As stated by Camisón & Villar-López, (2014),
innovation and creativity are essential for gaining competitive advantage and maintaining
sustainability of the industry. Toyota is the market leader in their segment due to their
operational efficiency, which has enabled them to increase their operational margin. It is also the
market leader in terms of sales volumes in the organization. As stated by Lee et al., (2015), most
of the global companies have changed their orientation form being product oriented to marketing
oriented. Globalization has made availability of information to different parts of the world so
effective use of promotional strategy is essential for gaining competitive advantage in the
market. Digital marketing plays an important for promotional success in today’s market and the
study will evaluate the influence of promotional strategies and innovation for improving the sales
volumes in Toyota.
1.2 Rationale of the study
The primary goal of any organization either is profit maximization, which is achieved by
either increasing the sales volumes, or decreasing the cost structure by increasing operational
efficiency. This study will focus on identifying the strategies required to improve the sales
volumes, which are effective use of innovation and promotion. Innovation is necessary for
catering to the present needs of the consumers and promotion is required for increasing brand
awareness and market penetration. This study will emphasize the impact of research and
development cost and promotional cost on the sales volumes of Toyota.