MKG701 - Marketing Management: A Case Study of Toyota RAV4

This case study explores the marketing management strategies employed by Toyota for its RAV4 model. It analyzes the macro-environmental factors influencing RAV4's business, including economic, political, social, and technological aspects. The assignment also discusses the product life cycle of RAV4, highlighting the improvements and adaptations made across different generations to meet customer needs and competitive pressures. Furthermore, it examines market segmentation strategies and their potential to enhance RAV4's marketing and advertising effectiveness. Finally, the study delves into the consumer decision-making process and the various factors, such as cultural, social, personal, and psychological influences, that impact RAV4's sales and market position. The analysis emphasizes the importance of understanding these factors to develop effective marketing strategies and maintain a competitive edge. Desklib offers a wealth of resources, including similar solved assignments and past papers, to support students in their academic endeavors.

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Marketing management
QUESTION ONE
Macro –environment forces are external and uncontrollable agents which affects the strategies
and the power of making decision in an organization (Armstrong et al, 2015 p.78). The macro
environment involves the forces that leads to creation of opportunism and stops threats to an
enterprise. Such factors include
1. Economic environment
This referred to as the factors of economic such as economic system and policies,
economy nature of the country, cycles of the trade, level and income distribution which affects
the business working. For example, some of the policies laid in Australia influenced the RAV4
business in a positive way. Australia also had a well economic background which also favored
the growth of the RAV4 business (Armstrong et al, 2015 p.78).
2. Political environment
This type of macro-environments forces it cause great effect to the organization
processes.PE may involve; the ideology of government politics and center state relation. Such a
factor may influence the business both positively and negatively. For example in case of the
political instability the business is negatively influenced and vice versa. During the establishment
of RAV4 the country was politically stable which influenced the growth of RAV4.
3. Social environment
This factor they influences the organization culturally and socially. For example the
social environment affecting the company it is said to be beyond the curb and monitor of the

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organization. Such factors include people altitude and religion.RAV4 was introduced in country
that people shared common social origin and religion.in Australia 90% of the people at that time
were Japanese.
4. Technological environment
Due to the fast advances made in technology organization faced number of challenges.
The RAV4 invested on the technology whereby they evaluated and analyzed the changes in
modes of the RAV4 time in time. This has made it possible for the company to withstand
negative forces generated by other organization.
QUESTION 2
Product life cycle (PLC)
PLC is said to cycle through which product passes from the point of introduction to
withdrawal or eventual demise.
RAV4 can be described as product lifecycle. Toyota RAV4 was initially developed by
automobile manufacturer Toyota in Japan which was the first compact of SUV (sports utility
vehicle). The designing of the vehicle was geared by customer needs for a vehicle which had
number of benefits of SUVs such cargo room increase, visibility and four-wheel drive advantage
(Gille, 2010 p.1049-1064). By observing the growth and development of the various generation
of RAV4 it can be clearly be concluded that RAV4 is a product lifecycle. Comparing the first
generation of the RAV4 with the other types of generation such as third ,fourth and fifth
generation a certain cycle is observed where the organization adds some advantages to the newly
generation. Referring to the previous generation (fifth generation) and comparing it to that first

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generation a great’s improvement is noted .the latest generation of RAV4 is more reliably with
improved stability and the speed. Such cycle should be implemented in business to favor the
need of the customers. The RAV4 organization initiated such cycle to be able to absorb the
pressure initiated by other vehicle companies (Aizikovitsh-Udi, 2010 p.55).
QUESTION 3
Market segmentation is the process that divides business market or the broad consumer
into group of consumers on basis of shared characteristics.in segmenting the market the
researchers observes common characteristics which includes shared needs ,similarity in lifestyles
are even similarity of demographic profiles. The overall process of segmentation aims in
identifying high yields segments as the segments are said to be most profitable hence great
growth potential. There are various ways of attaining the segmentation such as business to
business seller (B2B) where they segmentation of market is done it varied types of business.
Another method includes the business to consumer (Gille, 2010 p.1049-1064).
The process of using the segmentation commence before the products arrive in the
market the qualities and the features to meet the customers' requirement are developed. Offer
may commence with skills such as cloths creating and after defines the broad focus. Market
segmentation also influences marketing and advertising (Lee & Carter, 2011 p.27). for example
when manufacturing nutritional supplements one may take products targeted towards men,
children or women which will take different ways to reach these diverse groups. The customer
has the characteristic of the market target for segmentation compaign.this is because the
segments introduce should basically favor the customers as they influence the growth of business
directly.

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Relating to RAV4 organization segmentation will improve the marketing advertising of
the RAV4. This effect on the positive growth of the business.it also influence and make easier in
the accessibility of the products by the customers.
QUESTION 4
Consumer decision making process involves choice making by decision identification,
information gathering and assessing resolution by use of step by step decision-making process it
aids one to make the thoughtful decision by use of relevant information. The process of decision
making involves several steps which include; decision identification, information gathering,
identification of alternatives, evidence weighing, making choice on alternatives, action taking
and decision and consequences review (Lee & Carter, 2011 p.27).
In decision making some various factors influences the purchasing of the products. They include;
Cultural factors-They include the culture of the consumers, subculture, and social class and they
inherited values and decision process. Some cultural practices may favor the commodity
available in marketing while others lower the market to some products.
Social factors-They include the aspiration groups, reference groups, and member groups. They
influence the purchasing of commodities giving an approach to social demand of the people.

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Personal factors-They involve variables such as occupations, lifestyle, personality, and self-
concepts. The personal factors, for example, lifestyle and occupation favors and affects the
product purchasing either positively or negatively.
Psychological factors-These include motivation, perception, belief, and altitudes
Relating the influence of various factors to the RAV4 organization, the above factors can
be said it either affects the business either positively or negatively. For example, personal factors
such as occupation and the lifestyle have facilitated to the growth of the organization as when the
economy is uplifted by jobs they tend to jump into luxurious life such us buying of vehicles.
Also, some cultural factors in some communities count vehicles as the form of earth and
economic stability hence it has also in a way facilitated to good markets of the v RAV4 business
organization (Kirk S.F, 2015 p.107-117).

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References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Pg78 Marketing: an introduction.
Pearson Education.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Kirk, S.F., Penney, T.L. and McHugh, T.L., 2010. Characterizing the obesogenic environment:
the state of the evidence with directions for future research. Obesity Reviews, 11(2), pp.109-117.
Lee, K. and Carter, S., 2011. Global marketing management. Strategic Direction, 27(1).
Gammeltoft, P., Barnard, H. and Madhok, A., 2010. Emerging multinationals, emerging theory:
Macro-and micro-level perspectives.
Gille, Z., 2010. Actor networks, modes of production, and waste regimes: reassembling the
macro-social. Environment and Planning A, 42(5), pp.1049-1064.
Aizikovitsh-Udi, E. and עינב אייזיקוביץ-עודי,2010 . Pg 55 .Developing Critical Thinking Through
Probability Models, Intuitive Judgments and Desicion-making Under Uncertainty. Ben Gurion
University of the Negev.
Park, G.J., 2014. A Desicion-Making System with Dual Stages for Rehabilitation Method
Considering the Transportation Management on Expressways (Doctoral dissertation, Doctoral
Thesis, Chung Ang University, Seoul, Korea).