Report: Marketing Strategies of Toyota and Volkswagen, with Innovation

This report provides a comprehensive analysis of the marketing strategies employed by Toyota and Volkswagen, two leading companies in the automotive industry. The report begins with an introduction to marketing principles, emphasizing the importance of understanding customer needs. It then delves into a comparative study of Toyota and Volkswagen's marketing approaches, focusing on their product offerings, distribution strategies, pricing models, and promotional activities, aligning these with the 4Ps of the marketing mix. The report also examines their Segmentation, Targeting, and Positioning (STP) strategies. Furthermore, the report proposes innovative ideas to enhance Toyota's marketing effectiveness, particularly focusing on the implementation of a Customer Relationship Management (CRM) model. The CRM strategy is detailed step-by-step, emphasizing customer prioritization, employee communication, and continuous evaluation for improved marketing outcomes. The conclusion highlights the importance of adapting marketing strategies to meet evolving customer expectations and market dynamics.

INTRODUCTION TO
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Marketing Strategies implemented by Toyota and Volkswagen. ..........................................1
TASK 2............................................................................................................................................4
A innovative idea that could be applied to improve the marketing approaches of Toyota....4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is the most essential function of business. It is activity that is associated with
buying and selling of product or services. It includes advertising, promoting and selling of
product in the market (Sargeant and MACQUILLIN, 2016). It is the process of getting customers
interested in company's product and services. The main intention of marketing is to know as well
as understand the customers so that there expectations can be fulfil. There are totally five
concepts of marketing that includes production, product, selling, marketing and societal concept.
In this present report, Toyota company will be chosen for assessment. Company was founded 28
August by Kiichiro Toyota. The headquarters are located in Toyota, Aichi and Japan. This
present report will critically measure the company's current strategy of marketing. Further, this
assessment will also provide new or innovative idea that company would be interested in
applying to improve its marketing strategy and approaches.
TASK 1
Marketing Strategies implemented by Toyota and Volkswagen.
Background of Company and its Market Place
The automotive industry is a broad range of companies involved in the design,
development, manufacturing, marketing as well as selling of motor vehicles. In terms of revenue,
it is one of the most significant industry which is 9% and £2.75 million in 2017 (Toyota Report.
2017). The origin of Toyota lies in Japan weaving industry when Kiichiro Toyota invented the
world's first automotive loom. Toyota is one of the biggest auto-mobile manufacturer of
company. The recognized names of company is Toyota Jidosha KK that is usually shortened to
Toyota. It us public limited company that was founded in 1937. Its headquarters are located in
Toyota, Aichi and Japan. Takeshi Uchiyamada is the present chairman of Toyota and Akio
Toyoda is the current president of company. The main product of company are automobiles,
Luxury and Commercial vehicles and engines. Banking, financing and leasing are the services
provided by Toyota (Armstrong, 2015). In sales of hybrid electric vehicles, Toyota is the world
largest leader in the market. Addition to this, in hydrogen fuel-cell vehicles, Toyota is also
leading in the world. The total revenue of company in 2017 was $1264.1 billion and it is 14th
largest company by revenue. The total number of employee currently working in Toyota are
369,124.
Marketing Strategies implemented by Toyota and Honda.
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Marketing strategies are the most important action for all the business. It provides
company an edge over its competitors. It helps in developing goods and services with the best
profit making potential. It also helps company to identify there target market and to set
measurable goals (Sales of Volkswagen, 2017). The marketing strategy of Toyota is incredible as
there strategies reflect there mission and vision. The mission of Toyota is that will lead the
manner to the mobility in the future enriching lives around the world with the safest and most
responsible ways of moving people. They will meet there challenges goals by engaging the
passion and talent of people. On the other hand, the mission of Toyota is to create a vehicle that
are popular with the customers. The mission and vision are very clear and the marketing
strategies that are used by Toyota is 4P's of marketing mix. They are continuously achieving
success by the effectiveness in implementing the best marketing mix strategy. 4P's of marketing
identifies its strategies for its place, pricing, product and promotion.
Product- Toyota is dealing in diverse range of products and all the products they are
manufacturing are able to satisfying the needs and expectations of company. Product elements of
marketing ix analysis the output of company for the target customers. The product line of
company are automobiles, Lexus, Welcab series, marine products, spare parts and accessories
and engines. The automobiles are one of the most popular product and the luxury product is
Lexus. Company manufactures engines, spare parts, yachts and other accessories for marine as
well as automobiles (Totten and Cross, 2015). This shows that Toyota is dealing in wide range of
products and by this strategy they are able to reach to larger market as well wide range of
product also reduces the several risks or market. Where as the product of Volkswagen is totally
different as they offer or manufacture more luxurious products like, seating capacity, size,
engines and other features are more extraordinary as compare to Toyota.
Place/Distribution- The main place of Toyota for distributing its products is dealerships.
By giving dealerships to other companies, the product of company is able to reach to large
number of people and can cover huge area of the market. Retailers and dealerships are the two
main strategies of distributing products to large number of people. The major sales of company is
cover by these two channels of distribution. But the place elements of Volkswagen is quite been
vast than Toyota as it has its showrooms in Germany, Mexico, China, USA, Indonesia, Russia,
Portugal, Spain, Poland and in so many countries.
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Price- The pricing strategies of Toyota is very attractive and it is differed from another
company. The prices of the products of Toyota is wide and it depends on the line of the products
and the type of product. Company utilized combination of price strategies are market oriented
and value based pricing. In order to ascertain price that is based on conditions of market and
rivalry prices are the strategies used by Toyota. Even so, company used value based pricing
strategies on the product which perceived actual worth or value. But the pricing strategy of
Volkswagen is quite different as they followed premium price strategy.
Promotion- The promotion strategy of Toyota is incredible and it covers all the
communication tactics of marketing. They use five types of activities to promote there products
like personal selling, advertising, public relations, sales promotion and direct selling. There
selection of promotional tools are very effective as customers are highly attracted towards the
products of company. This strategy also shows that Toyota use comprehensive strategy in order
to promote there product in the company. But the Volkswagen has always been forceful with its
ad campaigns. Volkswagen has 360 other brands not only parent company but all cars separately.
The quality of promotion of Volkswagen is very high as compare to Toyota.
Toyota is leading in the world only because of there effectiveness and attractiveness of
the strategy as there are many companies who are following the strategy of Toyota. Volkswagen
is the one of the biggest competitor of Toyota. The strategy they are following is somewhat is
different from the strategy of Toyota. They are making strategies as these provides a sense of
direction as well as outlines the measurable goals (Shaw, 2016). They also measure there success
by making strategies so that they will able to lead in the world. Segmentation, Targeting and
Positioning (STP) is the strategy of Volkswagen. Since, Volkswagen is operating in 12
independent brands. Both of the companies used different strategies as there mission and vision
are differed.
Segmentation- In order to cater the needs and wants of customer in emerging as well as
existing market, they use the strategy of group mix like demographic, geographic, psycho
graphic segmentations (Companies Earning, 2016). But Toyota used to target its audience only
on income basis.
Targeting- Volkswagen use various types of strategy for targeting in order to offer the
particular or specific product to the particular segments of consumers of several bunches of
brands. But Toyota target its specific customers which is a higher class income group.
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Positioning- This is the most important stage as it assist company to understand or to
identify where the product of organisation is standing in the mind of potential customer's as well
as reputation in-front of them (Asche, 2014). Premium segments are the majority of its brands,
Thus, company used value-based positioning in order to develop inspirational and emotional
connect with the consumers. But Toyota does not follow value-based positioning as they use to
position of differentiation techniques.
TASK 2
A innovative idea that could be applied to improve the marketing approaches of Toyota.
Toyota is using 4P's of strategy and it is very important to improve the by creating some
innovative ideas so that company can achieve more success in the market. The strategy is the
best only if it is able to satisfy the needs and wants of customers in precise manner. It is very
essential to bring some improvement in customer relationship of company.
It is true that one of the company can survive for long time if there is healthy and
effective relationship with customer's. Strategies, plans and all other approaches of company is
useless if it is not aligned with the customer desire and expectation. Thus, the best path to
achieve success is to make the customers happy and satisfied with the products and services
company they are offering. All the approaches of marketing will be improved if company posses
a good customer relationship. On the other hand, an innovative approach in order to make the
best relationship with the customer is Customer Relationship Management (CRM) model. This is
very essential model for running a successful business (Camerer and Yoon, 2015). Company can
easily generate higher revenue if there customers are satisfied with them. CRM makes a good
sense of business. Thus, in order to improve the marketing approaches,
Toyota will develop a CRM strategy by following the steps which are as under-
Set a destination- It is important that before implementing CRM that it can able to
achieve the goal of company. This is the first step before implementing CRM is to identify those
goals and objectives. After identifying the goals, next step is to plan its path to reach the end
goals. The main goal of Toyota is to increase the market share by 15%.
Prioritize the Customers- Customer are the key feature of CRM model. Customers are
the backbone of a business as without them company is nothing (Customer Relationship
Management Model, 2017). It is noticed that company's usually treat all customer equal, it is
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good but company must be willing to consumers based on how profitable they are. For example-
customers who return frequently at the showroom. Loyal customer should be given more value.
Communicate with Employee's- CRM model is designed to handle huge amount of
information as well as to assist easy and effective communication between various groups within
organisation. Thus, it is very essential that in every step of strategic process, all employees must
be involved. Company can get many ideas and solution to improve the approaches of marketing
of Toyota.
Stagger the Changes- CRM model also describes that if company is not working in the
manner it should. They should go for changes as soon as possible to minimize the losses. It is not
so a big task to implement new CRM policies, so staff should be keep in kind that changes is not
so big thing (Proctor, 2014).
Start Tracking customers before first contact- This is also the best feature of CRM that
it can able to capture information at each and every stage of clients journey. In today's era,
customers put there reviews on social media which provide adequate and efficient information
that what customers want in the future.
Evaluate and improve- It is very important that what tool or technique or anything
company is using should be measured and improved (Möller and Parvinen, 2015). It is not
possible that if company can able to account for every contingencies occur in business by
ignoring CRM. But if company is using than it is also crucial to evaluate the success. CRM
cannot alone able to reach the goals until and unless it is aligned with business strategies.
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Illustration 1: Customer Relationship Management Model
(Source: Customer Relationship Management Model, 2017)

There are various challenges occur while implementing new policies and strategies
within organisation. The major challenge occurs is it costly affair and it cannot be successfully
implement if company has poor communication network and lack of leadership. On the other
hand, the best possible outcome by using CRM is it improve as well as develop a good
understanding among the employees of company that result in good customer service (Sojka,
2016). It also build customer loyalty and reduces consumer agitation.
RECOMMENDATIONS
There are many ways to improve marketing strategies of Toyota are as follows-
 Strategies should be aligned- Marketing is not one-size fits all. It is very important that
marketing strategies should be aligned with business strategies. If both the strategies are
aligned than both Toyota can able to reach the desired goals and objectives.
 Use CRM model- This is also one the best way to lead in the market. Toyota should use
CRM model so that they can build effective relationship with employees and able to build
a loyal customer (Krishna and Schwarz, 2014).
 Key Performance Indicator (KPI)- Thi is also one of the best tool to judge the
performance of company. Thus, Toyota should use KPI to identify or understand what
they are doing. It will also help to make improvements and bring productivity in work.
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These figure shows that how the sales of company is increases by using CRM model within
organisation. Thus, company should use CRM model to build loyal customer and increase sales
productivity.
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Illustration 2: Sales of Volkswagen
(Source: Sales of Volkswagen, 2017)

CONCLUSION
The above report concluded that marketing is the most essential function of business. It is
activity that is associated with buying and selling of product or services. This report also
illustrated the companies position in the market and brief overview of company. Various
marketing strategies of organisation was also included like CRM in this assignment. Addition to
this, recommendations are also provided in this assignment to improve the marketing
approaches.
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Illustration 3: Companies Earning
(Source: Companies Earning, 2016)
The above figure shows that how Toyota earning is increasing day by day as
compare to other companies. This results is only because customers are more
attracted towards the product of Toyota as compare to other.

REFERENCES
Books and Journals:
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Asche, F., 2014. GUEST EDITOR'S INTRODUCTION: ENHANCING MARKETING AND
PRODUCTION PERFORMANCE OF AQUACULTURE—SPECIAL SESSION OF
WORLD AQUACULTURE 2013. Aquaculture Economics & Management. 18(2). pp.97-
100.]
Camerer, C. and Yoon, C., 2015. Introduction to the journal of marketing research special issue
on neuroscience and marketing. Journal of Marketing Research. 52(4). pp.423-426.
Krishna, A. and Schwarz, N., 2014. Sensory marketing, embodiment, and grounded cognition: A
review and introduction. Journal of consumer psychology. 24(2). pp.159-168.
Möller, K. and Parvinen, P., 2015. An impact-oriented implementation approach in business
marketing research: Introduction to the Special Issue on “Implementing Strategies and
Theories of B2B Marketing and Sales Management”. Industrial Marketing
Management.45. pp.3-11.
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.
Sargeant, A. and MACQUILLIN, I., 2016. Marketing for nonprofit organisations. In The
Marketing Book (pp. 555-576). Routledge.
Shaw, S., 2016. Airline marketing and management. Routledge.
Sojka, J.Z., 2016. Use of in-class experiential learning to promote student engagement.
In Celebrating America’s pastimes: Baseball, hot dogs, apple pie and marketing? (pp.
285-286). Springer, Cham.
Totten, J.W. and Cross, J.N., 2015. Students’ Perceptions of the Importance of the Introduction
to Marketing Course & Topics in Meeting Their Career Objectives. In Proceedings of the
1991 Academy of Marketing Science (AMS) Annual Conference (pp. 193-197). Springer,
Cham.
Online:
Companies Earning. 2016. [Online]. Accessed through:
<https://www.salesforce.com/in/customer-success-stories/toyota/ >.
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