Marketing Principles Report: Toyota's Marketing Strategies Analysis

This report provides a comprehensive analysis of Toyota's marketing strategies, delving into various elements of the marketing process, including market analysis, target market identification, and marketing mix development. It evaluates the benefits and costs of a marketing orientation, examining how Toyota addresses consumer needs and gains a competitive advantage. The report also explores the macro and micro environmental factors influencing Toyota's marketing decisions, such as political, economic, social, and technological factors, as well as competitive forces and supplier relationships. Furthermore, it examines buying behavior and its impact on marketing activities, including segmentation, targeting, and positioning. The report also covers Toyota's product development, pricing, promotion, and distribution strategies, extending the marketing mix to provide a holistic view of the company's marketing efforts. Finally, it includes a conclusion that summarizes the key findings and insights from the analysis.

MARKETING PRINCIPLES

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Various elements of marketing process................................................................................3
1.2 Benefits and costs of marketing orientation..........................................................................4
Task 2...............................................................................................................................................5
2.1 Macro and Micro environmental factors that influence marketing decisions.......................5
2.2 Segmentation criteria............................................................................................................6
2.3 targeting strategy...................................................................................................................7
2.4 Buying behaviour affect marketing activities.......................................................................7
2.5 New positioning ...................................................................................................................8
TASK 3............................................................................................................................................8
3.1Product Development.............................................................................................................8
3.2Price strategy..........................................................................................................................9
3.3Promotional strategy..............................................................................................................9
3.4Distribution strategy.............................................................................................................10
3.5Extend marketing mix..........................................................................................................10
TASK 4..........................................................................................................................................11
ATTACHED IN PPT................................................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

Introduction
Marketing is one of the most important tool of modern business world. It is the way
through which companies are increasing their sales volume. Organizations are using
advertisement, promotional camps in order to attract consumers towards the brand. Car sellers
are using sophisticated marketing tools and techniques in order to make them loyal towards the
brands (Pike, 2015). Present report is based on Toyota which is the leading brand of automotive
industry. Assignment will discuss the various elements of marketing process. It will evaluate the
benefits and cost of marketing orientation with reference to Toyota. Macro and micro
environmental factors will be illustrated in this study. Furthermore, report will demonstrate
buying behaviour and its impact on marketing strategies. Report will explain the marketing mix
of large bank. In addition, it will describe difference between international marketing and
domestic marketing with reference to Vodafone (Stephen Neville, 2014).
Task 1
1.1 Various elements of marketing process
Marketing process is the systematic tool that assist in identifying marketing opportunities,
helps in selecting appropriate target market, development of marketing mix in order to
achieve the goal of entity. With the help of proper mar keting process firms can mnage their
marketing efforts significantly. Marketing is one of the essential function of business units,
without market the products companies can not accomplish their objectives. As per the
modern marketing concept, firms have to offer products and services as per consumers needs
and requirement. If entity is not able to meet with demand then it would not be able to
sustain in the market for longer duration (Andrée and Hansson, 2013). Toyota is
concentrating on customers and offers them attractive cars. Cited firm is using marketing
elements that are described as below:
 Market and environment analyses: It is the first phase in which organizations have to
research the situation. Toyota first do market research and collect relevant
information about internal and external situation. For analysing the environmental
condition cited firm uses PESTLE, SWOT, Porter’s five etc. models.
 Target market identification: Toyota is working in the automotive industry, there is
high completion (Baines, Fill and Page, 2013). For achieving goal of the entity it is
necessary to identify correct target market. Being a car manufacturer and seller cited

firm target all age group people and income level persons. It offers sports cars to
young customers and for old people it has vintage cars. London population is the
biggest target market of Toyota (Alizadeh and Serdaroglu, 2016).
 Setting of marketing objective: For running business in effective manner it is
necessary to set objectives so that directions of activities can be decided. By setting
goals cited firm will be able to make strategy that will support In gaining high profit
and organization will be able to sustain in the market for longer duration.
 Marketing mix: Toyota focuses on its consumers and offers them products as per
their needs. Its products satisfy needs of customers. It sets prices as per their budget
and competitors pricing. Promotional plan of the company is much more depended
upon demand of the products (Hollensen, 2015). Marketing mix involves 7'Ps
marketing, these are such as product, price, promotion, place, people, physical
evidence, process. By looking upon these factors company can design its marketing
mix and can gain success in the market.
 Reflection, control and feedback: It is another element of marketing process in which
management of cited firm make effective control over its staff members and
supervises their work closely. They take time to time feedback from the employees
so that necessary modifications can be made on time. That can help in improving
efficiency level. Apart from this it supports in satisfying the employees and they will
serve better to clients as well (Parente and Strausbaugh-Hutchinson, 2014).
 Formulation of strategies: Feedbacks of workers assist in formulating strategies so
that Toyota can accomplish its objective soon.
1.2 Benefits and costs of marketing orientation
Marketing concept is the business philosophy that helps in identifying needs of customers
and guide the management in such manner so that they can make sound business decision
and can satisfy people well. There are several types of concepts related to marketing such as
production, product, selling, marketing and societal marketing concept.
Production concept define that consumers prefer to buy the product which is available
and affordable by them. In this, companies focus on enhancing efficiency of production and
improving distribution so that goods and services can be available for all. Product concept
explains that people like to buy quality products with innovative features. So firms have to

work upon improving their quality of the goods in order to meet with demands of the
consumers. Selling is another concept which explains that customers will buy the product
when company undertakes selling at large scale and engaged in promotional efforts.
Marketing concept explains companies have to look upon needs of consumers and it should
target the right people. Marketing is the only way through which it can know about needs
and competitor position accordingly cited firm can make marketing strategies in order to
achieve its goal. Societal concept is another aspect that explains that firms have to deliver
such products t hat can be beneficial for consumer and social well being.
Business organizations can achieve its objective either through product orientation or
market orientation. In the product orientation companies think to manufacture goods as per
the needs of clients whereas in marketing they focus more on market the products in order to
attract customers (Allyson Dooley, Jones and Iverson, 2012). Benefits or marketing
orientation
 It supports Toyota to provides valuable products to buyers so that they like the goods
and be loyal towards the brand.
 With the help of marketing orientation Toyota can address needs of consumers and
can fulfil those (Armstrong and et.al, 2014). It assists in gaining completion
advantage to the cited firm. Maximum people will buy the products of the firm due to
effective market orientation thus profit of the company will be higher. That would
support in sustaining in the market for longer duration.
Cost of marketing orientation
Market research will require huge investment so that firm can know about needs of the
consumers. For sustaining in the market and providing quality services to users, organization
has to adopt advanced technologies so that it can satisfy consumers that is the cost for the
firm. The major disadvantage of these cost is that it can reduce the profitability of the firm.
Apart from this, company will have to modify its operation and will have to give training to
staff members again that is time consuming. On other hand it is beneficial because by this
efficiency level of the entity can get enhanced and it will be able to satisfy its consumer well.
By this way they will be loyal and will buy the products of the firm frequently.
 Toyota has to spend huge amount in market research, so that it can identify the needs
of consumers and accordingly it can offer them products and services. Apart from

this environment research explain the situation of external market so accordingly
cited firm has to modify its operations and has to adopt advanced technologies. It is
very costly thing and due to this profit of the entity can get down to great extent
(Askelson and et.al, 2015).
 In the marketing orientation cited firm offers products to consumers as per their
demands. But if their demand is high then prices also get higher. In such condition
people will not buy such costly products thus organization may have to face huge
loss.
 There are several types of consumers exist in the market, needs of everyone is
differed from each other. It may create deficiency situation for the Toyota (Pike,
2015).
Conclusion
From the discussion it can be concluded that market orientation is the beneficial tool, though some
cost are attached with it but it helps in satisfying people and raising standards of the entity.
Task 2
2.1 Macro and Micro environmental factors that influence marketing decisions
Every organization runs their business in the business environment and they have to look
upon macro and micro factors because these elements can influence the marketing decisions
to great extent.
Micro environmental factors
Porter's five forces are great tool that can help in identifying micro factors that influence
marking decisions.
 Bargaining power of Customers: This factor highly influence the marketing decision,
it is a string force. Clients are the assets of any company, if they are satisfied then
they will buy the products. It can help in increasing revenues of the organization to
great extent. Toyota treats its customers well and offer them products and services as
per their needs and demands (Stephen Neville, 2014). It increases their retention rate
by offering then excellent services.
 Bargaining power of Suppliers: It is weak force and impact to small extent. Toyota
has strong chain of suppliers and it has good relationship with its suppliers. They

provide raw material to cited firm on credit. Apart from this quality raw material
helps in manufacturing the excellent car model that can satisfy needs of customers
(Stephen Neville, 2014).
 Competitive rivalry: This is strong factor that influence the marketing decision of the
Toyota to great extent. BMW etc. are the biggest competitors and if they adopt new
marketing strategies then cited firm will have to modify its operations and will have
to formulate some better strategy that can help in gaining competitive advantage.
 Threat of substitute: It is another factor that influence marketing decision. It is
moderate force.
 Threat of new entrance: It is very weak because for entering into the auto motive
industry new firm will have to invest a lot that is not possible for small organization
so they can not influence the decision of Toyota to great extent.
 Employees: Cited firm hires skilled people those who can perform well in the
organization. It continuous motivates them by giving rewards and recognition.
Because they can influence marketing decision. If workers are skilled and motivated
then they will put their best efforts and will serve better services to clients as well
(Hollensen, 2015).
Macro environmental factors:
 Political factors: Government make amendments in policies, taxes etc. These affects
the overall working of automotive industry and indirectly Toyota gets affected too. It
has to modify its operations as per government norms that is why profit of the
company gets reduced if there are unfavourable legislation (Andrée and Hansson,
2013).
 Economic factor: It bis major element that influence the overall working of an entity
If there is high inflation, deflation or government increases exchange rate and interest
rates then it will reduce purchasing power of the consumers. So Toyota will have to
market its products by giving special discounts and attractive offers so that people
take interest and get attracted towards brand.
 Social factor: Trends, needs, tests, preferences of customers can get changed any
time. So it is necessary for Toyota to look upon their changing needs so that it can
sustain in the corporate market for longer duration. Cited firm has to change its

marketing decisions as per changing needs and preferences of clients (Parente and
Strausbaugh-Hutchinson, 2014).
 Technological factors: Online shopping, advanced technologies etc. can influence
mind of population. For making them loyal towards the brand cited firm always
adopts latest technologies so that it can sustain in the market and can gain
competitive advantage (Alizadeh and Serdaroglu, 2016). For instance Toyota earlier
was promoting its brand through TV advertisement but now it emphasis more on
social media marketing that has helped in increasing number of consumers of cited
firm.
 Legal factor: Toyota follows legal guidelines of government and perform its
operations as per employment, trade laws so that it can run its business smoothly.
 Environment factor: It is another main factor that impacts on the working
performance of the organization. If cars of Toyota are not eco-friendly and due to
fuel if surrounding is getting affected then people will be negative and that would
harm the overall working of the entity. Currently oil prices are getting changed and
oil reserve are getting down. So that affect the overall business of the Toyota that is
why cited firm fails to run its business well. Toyota has developed the market
research department so that it can identify the environmental factor and can work
upon it.
 Perceptual map shows the perception of consumers about the brand. They look upon
the variety of factors and choose to the products which can give them more benefit.


2.2 Segmentation criteria
Segmentation can be defined as divide the population into sub parts or segments. On the
bases of segmentation companies can offer products and services to the users. It is very
important tool and supports entity in reducing the risk and helps in increasing market
efficiency of entities. Toyota has segmented the market on the bases of income, age, buying
behaviour of customers. Market segmentation for products are as following:
Demographic variables: It includes segmentation on the bases of age, income, sex, race,
education etc. If customers of Toyota is younger and belongs to high income group then
cited firm offer them sports car whereas income level is low and person is poor then it offers
them other products (Pike, 2015). So as per the variable organization market its products.
Psychological variable: It is another type of segmentation which involves feeling, belief,
interest, lifestyle, social status etc. these all elements affect the buying behaviour of
customers. London population like to buy quality products rather than cheaper (Baines, Fill
and Page, 2013). Thus, company offers them cars as per their needs so that they feel satisfy
and be loyal towards the brand.
Behavioural variable: it is another type of variable which includes user status,
purchasing behaviour , occasion etc. On the bases of these elements cited firm offer products
and services to clients.
Toyota major focuses on demographic and psychological variables. It concentrates on
their income, status, education and age and accordingly offer them products and services. So
that people like the cars and they give positive feedback to others as well. Cited firm
provides them excellent after sales service so that they like the products and frequently buy it
(Askelson and et.al, 2015). This assists in maximizing the profit of entity to great extent.
2.3 targeting strategy
To target the potential buyers is the basic requirement of marketing. Once segmentation
is done by the corporation then they look upon the potential buyers of the company. There
are several types of targeting strategies such as undifferentiated, differentiated and
concentrated. In the niche strategy firms concentrate on particular group from the population
whereas in the differentiated strategies organizations emphases on several market segment.
Undifferentiated strategy is another type of targeting strategy in which entities concentrate

on whole market, they do not focus on particular group of people (Alizadeh and Serdaroglu,
2016).
Toyota is the big organization and it follows mass market strategy. It cars are for whole
market. Cited firm uses un-differentiated targeting strategy in which company emphasis on
all segments and offer them variety of products and services as per the needs. By focusing
on whole market cited firm can enhance their profit and can gain competitive advantage
(Parente and Strausbaugh-Hutchinson, 2014).
2.4 Buying behaviour affect marketing activities
To buy a car is the lengthy decision for customer, individual has to look upon variety of
factors such as income, uses, social condition etc. If person is having complex buying
behaviour then in then it can create huge trouble. Because consumers spend a lots of time to
analyses the products and then individual makes its final decision to buy it. They take advice
from close friends and families (Stephen Neville, 2014). It is necessary for the Toyota to
react according to behaviour of the consumers. If the person is having complex buying
behaviour then cited firm has to offer them quality products so that they turn their mind
immediately and buy it. Variety seeking behaviour is another type of buying attitude of the
people. Such type of clients does not get much involved because they have many options
(Askelson and et.al, 2015). It is necessary for the cited firm that to offer them attractive
discounts and services so that people can turn their mind and get ready for buying the car of
Toyota. It is not that taste of customer affect their buying behaviour, price of the cars also
influence the clients. So entity has to offer them products at affordable rates. By this way
sales volume and profit of the company will get increased.
There are several factors that affect the buying behaviour of an individual such as
perception, social class, culture, income, education, attitude of the person. People those who
belong from high income they can buy costly products easily. But lower income group
people can not afford it. Social class influence the people, Toyota always market its products
by looking upon the cultural aspect so that it does not harm any person and do not make
them negative. That is why people like its products and buy it.
2.5 New positioning
Positioning can be defined as marketing concept that helps in creating brand image and
promoting the products well. It is beneficial tool and supports in meeting with the

expectation of buyers. It assists in promoting consumers good will and enhance loyalty of
users. There are many competitors brand of Toyota such as BMW etc. those which offer
same quality products. Positioning explain the point of view of customers towards the
products and services of organization (Pike, 2015). Segmentation and positioning are
interrelated parts. Toyota creates message for the consumers and try to establish the
positioning of products through several mediums. Cited firm uses attractive punch lines,
symbols, etc. in order to attract people towards the brand. It assists in promoting the brand
significantly and can help in increasing number of buyers of the car.
Toyota targets the consumers by offering attractive offers such as cash discounts etc. It
makes connection with them through online mediums and inform them about it. This helps
in attracting more people and making connection with them. It is beneficial strategy and
process through which cited firm gain competitive advantage. Automotive industry is very
vast and there are many competitors such as BMW, Audi etc. People like to buy such cars
which can meet with their requirements. For that Toyota produce cars environmental
friendly with attractive features. Apart from this, it sends therm email updates so that people
keep attached with the company. It makes them loyal and they give positive feedback to
otters. By this way cited firm can achieve its target and can gain competitive advantage.
Toyota gives replacement, warranty and after sales service to its cars. That gain attention of
consumers and they get positive towards the brand. It increases level of interest of customers
and they make mind to purchase car of Toyota (Andrée and Hansson, 2013). Perceptual
technique or map is the tool that helps to identify the perception of consumers and
identifying the competitors position. Accordingly, company can modify its products and
serve and can satisfy its consumers well.
TASK 3
3.1Product Development
Marketing mix can be defined as factors that can help in influencing the mind of
consumers in order to make them positive towards the brand. It is very important and help in
identifying needs of consumers and providing them products as per their desires. HSBC carry out
their business activities under various major different segments these are retail management,
private banking, wealth management, global marketing, investment banking and commercial
banking. Their products or services are offered in these segment to attain their objectives in

effective manner. HSBC bank offers saving account, insurance, FD, credit cards, loans etc.
various products to its consumers. It offers loan to customers at lower interest rates and credit
card provides by the bank is having unique features that are differed from other financial
institutes. They deliver those product which are in differentiation in which there are different
variety of products are made available or sold in various different countries. Thus, HSBC
delivers a wide ranges of banking services at all level from business to personal level to
corporate banking. For instance, the personal banking are in touch with the clients in direct
manner and it assure that their banking services are made available to each person who are in
need. Furthermore, HSBC corporate banking level that are majorly involves the relationship
among the various other banks (Hollensen, 2015). They looked at the corporate deposits, cash
management, corporate finance and payment etc. Furthermore, in the treasury department of
money market, derivatives and foreign exchanges are the main currencies that are generally
needs to be taken care off. Therefore, HSBC ensure that they deliver a best banking services
under which they sell to the smaller as well as medium sized enterprises such as phone banking,
multi branch banking and doorstep banking etc. Along with that, they provide a wide ranges of
banking products or services such ATM, Credit Card, merchant banking services, advisory and
consultancy services, personal , vehicle loan etc. Furthermore, gives facilities to open accounting
are saving, current account etc.
3.2 Distribution strategy
HSBC carry out their banking services and offer products at wider area. It has a wide
ranges of operation base in the North America, Europe, Africa, Asia and South America etc.
Thus, it able them to make a huge customer base and they also able in setting up the its banking
services in various different areas as possible. They always try to offer a best services to its
current and potential customers in most effective manner (Challagalla, Murtha and Jaworski,
2014). The HSBC try to satisfy its customer in most effective manner. They opened a large
number of ATM in various different places so, the people can able to use services at anywhere
they want. They can easily swipe its card whenever they required. It gives benefits as that the
ATM option facilitate them to withdraw money anytime they so, there is no need to carry out the
cash in the pocket anytime. They can effectively used the ATM card to deposit and withdraw
money anytime they want. The another strategy used by the HSBC Under which they provide its