MKT-315
guerline4
presentationonmarketingplananalysis3.pptxPresentation on Marketing Plan Analysis By GUERLINE P. JOSEPH
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PRESENTATION Summary
The presentation recognizes the importance of marketing in organizations
It is based on marketing plan research
It essentially highlights the findings of the research
The areas researched are:
Customer segments and target markets
Characteristics of the target markets
product differentiation and positioning
consumer buying behavior model
product mix
The presentation is based on the market plan research that was conducted. The research was justified because of the importance of marketing in the organization’s success. Marketing focuses on convincing, persuading, educating and informing potential consumers about a specific product so that they may continue using it or may begin using it. The marketing plan presentation will focus on customer segments, targets, consumer behavior, price, product and product differentiation among others
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PRESENTATION Summary- continued
The presentation will also focus on:
Product lines
Service processes
Physical evidence of service
Roles of company employees in service delivery.
In order to gain an in-depth understanding of the organization’s marketing plan, information on product mix, product differentiation, service processes and product line among others was gathered. The information helps to understand why an organization adopts specific marketing strategy.
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Company Background
The organization under focus is Toyota Inc
It is in automotive industry
It is headquartered in Japan
It has subsidiaries in different regions such as America, and Europe .
It makes vehicles for all market segments, from low income to high income
The market is segmented regionally and social economically
The organization is an automotive company that makes vehicles for all social classes. The organization, which is headquartered in Japan has branches in different continents where it produces vehicles for the regional markets.
The organization makes vehicles for the low income, the middle income and the high income. As such, the market is segmented both regionally and social economically.
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Company Background continued
Vision
Achieving long-term, stable growth in harmony with the environment, the global economy, the local communities it serves, and its stakeholders
Mission
Seeks to create a more prosperous society through automotive manufacturing
Toyota is one of the leading organization’s in the automotive industry, It has market across the word. The strategy adopted by the organization such as lean manufacturing which focuses on increasing efficiency and eliminating wastage and cost is based on its vision of which focuses on sustainable growth, serving communities and stakeholders.
The organization’s vision is to be achieved by following the mission of creating a prosperous society through automotive engineering. In this case, the organization makes its products with the focus of ensuring prosperous society; however, at organizational level, it has to gain stable long term growth in a sustainable environment.
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Company Background continued
Marketing Objectives
To continue satisfying customers with high quality but low cost products
To continue building strong brand image among customers
Toyota Inc. has different marketing objectives for the different markets; the marketing objective in the American market is different from the marketing objective in the African market. Anyhow at the global scale, the organization’s marketing team aim at continuing to satisfy customers with low cost and high quality products,. In this case, the organization's marketing emphasize the quality of the products based on the market needs and the cost of the product. Furthermore, the marketing team aims at continuing to build strong brand amidst competition.
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Consumer Behavior
Is the action taken by consumer before buying the product
It is how consumers buy the product
In motor vehicle sector customers:
Identify the need
Identify the solution to the need and available options
Evaluate the options
At Toyota, efficiency and availability of spare parts make its vehicles preferable
Customers for any product manifest some behavior before eventually buying a product; for example, customers must first identify the need, then identify what can solve the need, and conduct a research on the available products that can solve the need. In the motor vehicle industry, customers identify the need of buying the vehicle such as such as for official use or personal use. They then evaluate the available options of solving the need after conducting a research. Toyota vehicles are preferred because of efficiency, and availability of spare parts
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Consumer Behavior -continued
Customer segments and target markets
Market segmentation is dividing the market into uniform groups (Andaleeb, 2016).
Toyota’s market is segmented based on
level of customer’s income
Geographical location
Target market is market more profitable to the organization.
Toyota’s target market is :
Younger adults aged between 25 and 40
Toyota's market segmentation is based on the customers’ level of income. The company produces products for low-income earners, middle-income earners, and high-income earners. That ensures that all the market segments are satisfied effectively.
Toyota’s target market is the younger adults aged between 25 and 40. Most of such people are in the stage of buying a car for the first time in their life. Since Toyota charges low prices for their vehicles, such people constitute the largest market of the company.
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Consumer Behavior -continued
Characteristics of the target markets
Toyota’s target market is the younger adults
They are within the low or middle-income categories
They are literate
The target market’s lifestyle choices include efficiency of vehicles an cost
The target market of a company affects the company’s pricing decisions. One of the characteristics of the target market that should be considered includes the customer demographics. That includes the age, level of income, age, and level of education. Toyota’s target market is the younger adults. Such people are more likely to be in the low or middle-income categories. Therefore, the pricing of the product should be low. Toyota has produced vehicles that are cheaper, and they have various capacities to appeal to a person’s lifestyle. They have big cars for families and small cars for individual people who just want a means of transport.
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Consumer Behavior -continued
Product Differentiation and Brand Positioning
Toyota differentiates its products through:
Pricing strategy
Product efficiency and
Product reliability (Liz, 2018)
It positions the brand as being:
Affordable
Reliable
Fuel efficient
Toyota differentiates its products from other automakers through its pricing strategy. That is promoted by the company’s brand positioning which is the production of affordable and reliable vehicles. Toyota produces affordable vehicles for all its market segments. It serves the low income, middle income, and high-income earners with affordable products. The company also produces quality and reliable products. Toyota vehicles are well known for their fuel efficiency and the availability of their spare parts. That shows that the company has positioned its brand as affordable, reliable, and efficient. That has helped the company in its continuous growth making it the largest car manufacturer globally in terms of the number of sales and market capitalization.
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Product or Service
Product Mix
Product mix is set of all the products a company offers to its customers
Toyota offers a full line of cars
The products include: family cars, sports cars, minivans, trucks, and light commercial vehicles
It substantial product width
The product length includes several models in its product line eg, Corolla, Tundra, Scion, Prius,
The product mix shows the product assortment or the set of all the products that a company offers to its customers. The product mix is explained using the product width, product depth, and product length. The product width shows the number of products in a product mix. The product length indicates the number of total products in a product mix. Lastly, the product depth shows the number of variants in a product line. Toyota offers a full line of cars. They provide family cars, sports cars, minivans, trucks, and light commercial vehicles. The company’s product mix includes various types of cars such as coupes, sedans, hybrids, vans, SUVs, and trucks. That indicates that the car manufacturer has a substantial product width. The product length of Toyota includes several models in its product line such as Corolla, Tundra, Scion, Prius, Lexus, Camry, Avalon, among others. The product depth of Toyota can be explained through the various models of the different types of cars. For instance, the Toyota Corolla has models such as Fielder, Axion, Allion, and Spacio.
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Product or Service – continued
Product line
A product line is a group of related products marketed under a single brand name
Toyota has various product lines, they include Hino, Lexus, Ranz, Daihatsu, and Toyota
Other product line includes electric vehicles, cars, buses, and pleasure boats.
The car's product line include SUVs and crossovers, luxury-type vehicles, and pick-up trucks
A product line is a group of related products that are all marketed under a single brand name that is sold by the same company. Toyota has various product lines. Toyota sells its vehicles under five brands which are Hino, Lexus, Ranz, Daihatsu, and Toyota. The company's product line includes electric vehicles, cars, buses, and pleasure boats. The vehicles that fall under the product line electric vehicles include hybrid electric vehicles, plug-in hybrids, hydrogen fuel-cell vehicles, and all-electric vehicles. The vehicles under the car's product line include SUVs and crossovers, luxury-type vehicles, and pick-up trucks.
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Product or Service – continued
Service processes.
To increase sales, Toyota implemented localization of markets, which:
Ensures operations in all major operating regions.
Reduces the costs of operations
Increases its productivity
It has company-owned vehicle showrooms
It trains employees
Toyota has expanded globally. To increase its sales, the company implemented localization of markets. That ensures that the company has operations in all its major operating regions. That reduces the costs of operations and increases its productivity. The company has company-owned vehicle showrooms where the customers may go to purchase new vehicles. The company also trains its employees to equip them with the necessary skills and knowledge to promote the success of the company. That describes why the company provides quality services to all its customers.
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Product or Service – continued
Physical evidence of service
The physical evidence of services include:
The exterior and interior designs of its vehicles
The different features fitted in the vehicles.
billing statements and
the showrooms
The ambiance is made up of the decor, music, and lighting..
The physical evidence indicates the environment in which a service is delivered and where the firm and the customer interact and any commodities that facilitate the performance of the commodities. On the other hand, the service scape indicates the physical facility the service is produced and/or delivered. For Toyota, the physical evidence of its services includes the exterior and interior designs of its vehicles. It also includes the different features that have been fitted in the vehicles. When interacting with the customers, the physical evidence entails the billing statements and the showrooms. In this case, the service scape may be described as the showrooms where the vehicles are sold and the manufacturing plants where the vehicles are assembled. The ambiance is made up of the decor, music, and lighting. Therefore, in this case, the specific features of a vehicle make up with the ambiance of the company.
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Product or Service – continued
Roles of company employees
Employees promote productivity through:
Assembling of the vehicles,
Marketing and sales of the vehicles,
Innovation
The employees at Toyota are essential in service delivery. The company has trained its employees to promote the productivity of the company. The company has employed over 300,00 employees who work in different departments. Thus, the employees help in the assembling of the vehicles, marketing and sales of the vehicles, innovation among other roles. Teamwork and collaboration among various employees as well as training and development of employees have increased the productivity and effectiveness of the company.
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Price
Pricing objectives
Objectives focus on providing affordable products to its target customers
It uses value-based pricing for its luxury vehicles (Hoque, et al., 2013)
charges low prices to gain a bigger market share
The company’s pricing objectives include the provision of affordable products to its target customers. The company also uses value-based pricing for its luxury vehicles. The company’s price objectives are sales-oriented.. It operates on the economies of sales by making very little profits and a lot of sales.
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Price- continued
current company pricing strategies
It uses :
Market-oriented pricing strategies by comparing prices of competitors
Value-based pricing strategies for luxury vehicles.
The company has two pricing strategies. It used market-oriented pricing strategies and value-based pricing strategies. The market-based pricing strategy entails identifying the prices of the company’s competitors. That enables them to make their products cheaper thus, making them more affordable to its target market. The company uses value-based pricing strategies for its luxury vehicles. However, they are still affordable compared to other car manufacturers’ luxury vehicles.
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Price- continued
Pricing tactics
To stimulate short term demand, it uses tactics such as:
Issuance of discounts
Allows credit payments for some of its vehicles at low-interest rates.
The company uses several pricing tactics to increase its short-term demand. One of the pricing tactics that is used is the issuance of discounts. That enables the customers to buy the vehicles at a cheaper price thus increasing the company’s sales. The company also allows credit payments for some of its vehicles at low-interest rates. That ensures that a customer can buy a car and pay in installments. That increases the company’s short-term demand.
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References
Andaleeb, S. S. (2016). Market segmentation, targeting, and positioning. In Strategic Marketing Management in Asia. Emerald Group Publishing Limited.
Hoque, I., Faruque, M. O., Shahid, E. M., Pasha, S. H. A., and Rahman, S. O. (2013). Analysis of Toyota’s marketing strategy in the UK market. European Journal of Business and Management, 5(20), 1-7.
Li, Z. (2018). Business Network Positioning Analysis of Toyota. American Journal of Industrial and Business Management, 8(07), 1693.
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