Global Marketing Management Strategies for Lexus: An Essay Analysis

This essay provides an in-depth analysis of global marketing management strategies, focusing on the Lexus company. It explores the internal environment, standardization versus customization decisions within the marketing mix, and key marketing theories and models. The essay examines Lexus's pricing strategies, including market penetration and customization, and how they adapt to different global markets like the UK, USA, and Japan. It delves into the application of marketing theories like skimming and branding strategies, along with the role of marketing programs and communication. The essay also offers recommendations for Lexus, such as leveraging social media, performing risk assessments, and adjusting pricing to maintain a competitive edge. The conclusion emphasizes the importance of strategic marketing planning, effective communication, and customer satisfaction in the global marketplace.

Global marketing
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
ESSAY.............................................................................................................................................4
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
Online references...........................................................................................................................11

INTRODUCTION
Global marketing management is considered as key approach which helps in maintaining
marketing operations of an international business in a precise manner (Agarwal, Vaschilko, and
Loukoianova, 2018). In the recent times, due to increased competition, all major companies in
the international marketplace focus on marketing management to perform sales operations in
order to increase sales turnover and revenue (Global marketing management and its dimensions,
2022). In the global business marketing management, there is a key requirement of professional
and stable management in order to perform key operations related to marketing in a precise and
systematic manner. This project will include a brief analysis of internal environment and cover
its dimensions with a focus on global company. This essay will also create an in depth analysis
of standardisation and customisation decisions with relation to marketing mix. The project will
also cover key marketing theories and models which are helpful in increasing competitive
strength of business. In this essay example of Lexus company is taken into consideration which
is a multinational luxury car manufacturing company (Lexus car company information,
2022). The Lexus company is a major division of auto-mobile company Toyota. The company
was founded in the year 1989 and its headquarters are situated in Nagoya, Japan.
Illustration 1: Lexus company logo

MAIN BODY
ESSAY
The Lexus company is known for its world class luxury cars which are provided to
different customers. In the marketplace, the company is known for its value and customer service
approach. The main role of management of Lexus is to provide key assurance to major customers
on regular basis regarding the service. Another key objective of higher authorities of Lexus
company is to focus on deciding best prices for its cars in the international marketplace. The
pricing strategies play a major role in providing key solutions related to product demand and
supply (Pricing strategy of Lexus, 2022). It is also one of the major role of marketing
management and financial management of Lexus company to formulate affordable and
reasonable prices to customers. Lexus company identifies its competitors and their pricing
(Competitors of Lexus, 2022). After analysing the price of competitors, the company focus on
keeping the prices close to competitors in order to lead the marketplace (Couto, and Ferreira,
2017). The super high prices of Lexus products largely impact on its sales figures in a negative
manner. Marketing prices of other competitors like Audi, Jaguar, Mercedes and BMW impact
on pricing of Lexus.
The market situation is also one of the major factors which impact upon the pricing of
Lexus. It is major task of marketing management of a company to deliver best practices related
to pricing on the basis of market situation. Recently, due to COVID-19, the auto-mobile industry
has faced a major crisis. Therefore, management authorities of Lexus company developed a
pricing strategy on the basis of COVID-19 (Auto-mobile sector and COVID-19, 2022). The super
low prices were decided by company for its cars to attract customers in the COVID-19. Market
penetration is considered as key approach which is helpful in measuring how much a product or
service is being used by customers as compared to total estimated market for the service or
product (Deepak, and Jeyakumar, 2019). The Lexus company has made 6.7 million vehicles and
its employees are around 3,28,000. In the year 2022, the projected revenue of Lexus company is
USD 22.53 Billion which is a major figure (Lexus car company information, 2022). Lexus
company use the customised pricing strategy in order to dominate the marketplace. The price
related to products and services of Lexus are decided on the basis of contemporary business
environment.

The Lexus operates in the marketplace of United Kingdom with the help of professional
management practices. Company in United Kingdom has opened its branches in major cities and
provides global standard based cars to customers. The Lexus also take into consideration rules
and regulations developed by government in order to conduct legal and ethical business. The
company holds 23% share in the marketplace of United Kingdom and also follow marketing
theories and model to develop successful business opportunities. The company also operates in
USA by developing a key approach to dominate the marketplace. Lexus analyse marketing
situation of United States in order to achieve key targets. The company chose penetration pricing
by targeting the upper class of society. The company also decreases its prices if its competitors
set a decreased price for cars. The main car model of Lexus company is Lexus LS which is the
best selling and performance oriented car. In Japan also the company is operating with major
focus on different areas and field of marketing. The company is deciding its key prices with the
help of customisation pricing approach in all three countries (Yamazaki, 2018). Setting prices on
the basis of customisation approach helps a Lexus to operate in international marketplace in a
more effective manner. If the analysis of flagship car of Lexus LS6 us taken into consideration
then in United Kingdom, 12710 units were sold (Lexus LS sales units in United Kingdom market,
2022). The United States of America's marketplace in the year 2022 counted sales of 589 units
(Units sold of Lexus in USA, 2022). The most sold Lexus car is known as Lexus RX which
accounted for 101059 units which is a major figure (Lexus sales figures, 2022).

Illustration 2: Lexus LS car

The marketing theories are considered as key approach which helps Lexus company to
develop at the marketplace. Skimming marketing strategy is considered as a major pricing
approach in which Lexus company prefer to set a high introductory price to attract buyers. In this
approach the company has a strong desire for the resources and product, so they can be bought
by customers (Donthu, Kumar, and Pandey, 2020). Skimming marketing strategy is also
considered as key approach which is beneficial in increasing sales of the product. Skimming
strategy includes gradual decreasing of price of a product in order to attract the major and next
layers of market. Lexus company selects best location in different countries in order to sell its
luxury cars and performs skimming there after to capture the marketplace (Gbadamosi, 2019).
The advertisement and promotion based prices of of Lexus are decided by its financial
management, marketing management and higher level authorities. The market penetration is also
a key approach which helps Lexus LS car to develop effective sales figures at the marketplace.
The marketing programme is considered as key approach which is helpful in developing
strength of a business (Marketing programme of Lexus, 2022). The Customisation pricing
approach which is followed by Lexus is helpful in providing benefits related to sales turnover
and revenue increase (Khosrow-Pour, 2019). The customisation of prices is the key need of
every company which is operating in the international and national marketplace. The target
market of Lexus company is upper segment class of society and the customisation is done
accordingly. In the marketing programme of Lexus there is an involvement of professionals and
experts. In the marketing programme, marketing communication is also a major approach which
is beneficial in providing effective solutions to a business. The international marketplace is
having stiff competition between companies, so there is a need of precise marketing development
programme. In the functioning of a business at the marketplace, it is essential to select best and
wise decisions. The pricing of competitors like Audi, Jaguar , BMW and Mercedes largely
impact on decision-making of the business. Dynamic nature of marketplace is also one of the
major approaches in decision-making of company. Another major factor which impact on
decision-making of the business firm includes demand and supply at the marketplace.
Lexus company must also focus on product life-cycle based approach in order to achieve
key objectives and goals. The company should focus on development of key measures which are
required to develop focus on life-cycle of its products (Explanation of product life-cycle, 2022).

The company is also providing good quality in its products and services to gain customer
satisfaction. The Lexus company's cars growth is a major stage in its product life-cycle which
helps in increasing business potential. The maturity of its products is long lasting and impacts on
its functioning (Kotler, and Keller, 2021). The decline stage is considered as a key element
which states about obsolete nature of its products and services with passage of time. Branding
strategies are also a major approach which should be selected by Lexus company to influence the
customers (Marketing strategy of Lexus, 2022). Branding is considered as key approach which is
beneficial for making the product more appealing. Lexus company provides logo on the rear and
front side on its every car as well as LS6 to provide effective services.
Illustration 3: Lexus car interior

The company can choose to develop a new logo for its cars in order increase their share
in international marketplace. In order to communicate with key customers, in the target markets
of the three countries, Lexus takes into account application of smartphones and emails. The
increase in information and technology is also one of the key approaches which helps Lexus to
promote and perform marketing of its products and services (Marinchak, Forrest, and Hoanca,
2018).. The company is also using internet to promote its products and to communicate with
customers who are present all over the world (Promotion by Lexus company, 2022). It is also
majorly important for Lexus to select best information and technology based tools and
techniques to perform key operations. The company should also take into consideration, ethical
issues and address them with the help of management.
The communication message for the key customers play an important role in the
development of a business (Communication message explained, 2022). It is important role of a
business to focus on analysing all major channels that are associated with communication
channels and develop best practices to deal with the same (Ratten, 2017). A business should also
focus on establishing focus on marketing channel's structure to develop adequate supply of its
products. The Lexus company should adopt key ways of performing business operations with the
assistance of strategic choices and frameworks in order to develop marketing communication.
The marketing approaches and techniques at Lexus should include key focus on developing the
strength and abilities in a company.
Being the marketing manager of Lexus company, it is essential to provide certain
recommendations and suggestions to company. The Lexus company should take more and more
assistance of social media and internet to perform key marketing operations. Customisation of
prices should be developed by management of Lexus according to the situation in dynamic
market (Schultz, , 2017) The company should perform a major risk assessment and analysis in
order to lead the competition. In order to gain competitive advantage in a short period of time
(Zaveri, and Amin, 2019). The prices of Lexus cars should be set low in order increase their
market share.

CONCLUSION
From the above stated essay it can be concluded that in the era of stiff competition
between companies in the global marketplace it is essential to choose best strategy. The essay
concludes key importance of marketing strategies and planning which are supportive in
increasing revenue of a company. This essay concludes the key importance of business
management which helps in increasing potential of the company. The customisation based
pricing strategy is one of the most suitable strategies which will help the business to grow more
and satisfy key customers. This essay concludes significance of marketing channels and their
structure which play a major role in communicating with customers. In order to increase the
reputation and goodwill of company, it is essential to focus on key parameters of business
development by adopting professional strategies. The Communication tools is also one of the
important business tool which helps a business to develop key approach in communicating with
customers. The company must develop focused approach in decision making which is helpful in
increasing its competitive strength. Marketing programme is considered as key and major
approach which is developed with the help of strategic and planning frameworks. The
communication theory is helpful in passing crucial information related to a business to key
customers. The company also prefer to take advice of marketing and financial management in
order to formulate key decisions. The pricing strategies are essential to be formulated according
to marketplace situation and also key factors will be analysed with the help of professional
approach. This project also concludes that marketing management of a company should develop
expertise professional approach in order to maintain key development based targets of the
company.

REFERENCES
Books and Journals
Agarwal, J., Vaschilko, T. and Loukoianova, E., 2018. A thematic exploration of the changing
trends in political risk and global marketing scholarship in the last three decades (1986–2015):
Implications and future research. In Emerging Issues in Global Marketing (pp. 15-59). Springer,
Cham.
Couto, M. and Ferreira, J.J., 2017. Brand management as an internationalization strategy for
SME: A multiple case study. Journal of Global Marketing, 30(3), pp.192-206.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Donthu, N., Kumar, S. and Pandey, N., 2020. A retrospective evaluation of marketing
intelligence and planning: 1983–2019. Marketing Intelligence & Planning.
Gbadamosi, A., 2019. Contemporary issues in marketing: Principles and practice. Sage.
Khosrow-Pour, D.B.A. ed., 2019. Breaking Down Language and Cultural Barriers Through
Contemporary Global Marketing Strategies. IGI Global.
Kotler, P. and Keller, K., 2021. Marketing Management (15th global edition). Pearson Education
Limited.
Marinchak, C.M., Forrest, E. and Hoanca, B., 2018. Artificial intelligence: Redefining marketing
management and the customer experience. International Journal of E-Entrepreneurship and
Innovation (IJEEI), 8(2), pp.14-24.
Ratten, V., 2017. Gender entrepreneurship and global marketing. Journal of Global
Marketing, 30(3), pp.114-121.
Schultz, D.E., 2017. International marketing communication as the global marketing change
agent. Strategic International Marketing: An Advanced Perspective, p.117.
Yamazaki, K., 2018. Japanese Global Strategy: Overseas Operations and Global Marketing.
Springer.
Zaveri, B.N. and Amin, P.D., 2019. Global Marketing Strategy in Digital Era: Global Online
Presence. In Breaking Down Language and Cultural Barriers Through Contemporary Global
Marketing Strategies (pp. 103-112). IGI Global.
Online references
Lexus car company information, 2022[Online]Available through:<https://www.lexus.com/>
Market share of Lexus and its revenue, 2022[Online]Available
through:<https://www.statista.com/outlook/mmo/passenger-cars/lexus/worldwide>
Marketing strategy of Lexus, 2022[Online]Available
through:<https://www.mbaskool.com/marketing-mix/products/16836-lexus.html>
Lexus LS sales units in United Kingdom market, 2022[Online]Available
through:<https://media.lexus.co.uk/wp-content/uploads/sites/3/pdf/Lexus-Sales-Report-
February-2022.pdf>

Units sold of Lexus in USA, 2022[Online]Available through:<https://carfigures.com/us-market-
brand/lexus/ls>
Lexus sales figures, 2022[Online]Available
through:<https://www.motortrend.com/features/best-selling-luxury-vehicles-2020/>
Global marketing management and its dimensions, 2022[Online]Available
through:<https://study.com/academy/lesson/global-marketing-management-planning-
organization.html>
Competitors of Lexus, 2022[Online]Available
through:<https://www.91wheels.com/cars/qna/what-are-the-top-competitors-of-lexus-es/7720>
Communication message explained, 2022[Online]Available
through:<https://thebusinessprofessor.com/communications-negotiations/communications-what-
is-a-message>
Promotion by Lexus company, 2022[Online] Available
through:<https://www.lexus.com.sg/en/promotions.html>
Explanation of product life-cycle, 2022[Online]Available through:<https://www.twi-
global.com/technical-knowledge/faqs/what-is-a-product-life-cycle>
Marketing programme of Lexus, 2022[Online]Available
through:<https://www.mbaskool.com/marketing-mix/products/16836-lexus.html>
Auto-mobile sector and COVID-19, 2022[Online]Available
through:<https://www2.deloitte.com/global/en/pages/about-deloitte/articles/covid-19/
understanding-covid-19-s-impact-on-the-automotive-sector.html>
Pricing strategy of Lexus, 2022[Online]Available
through:<https://www.clublexus.com/forums/car-chat/159303-lexus-pricing-strategy.html>