Principles of Marketing

Aman Ahmad Urfi

Faizan Shahid

Daniyal Ali

Hamdan Amjad

Sikander Hayat
 PROMOTION(Q13)

TOYOTA:

Toyota’s promotion strategy covers all the tactics of marketing communications. This element of
the marketing mix pertains to how the firm communicates with the target market. Toyota uses
the following promotion activities, arranged according to significance:

Personal selling

Advertising

Public relations

Sales promotion

Direct selling

Toyota uses personal selling through dealerships’ sales personnel, who personally promote
products to potential buyers. The company also uses advertising on various media, such as TV,
newspapers, and websites. In addition, the firm promotes its products through public relations,
such as the Toyota TogetherGreen program that supports environmental initiatives, and the Meal
Per Hour program that donates food to Food Bank. These public relations activities create a
positive brand image for Toyota. On the other hand, infrequent sales promotion is used through
special deals. Also, the company sometimes uses direct selling for corporate clients. This part of
Toyota’s marketing mix indicates that the company has a comprehensive strategy for promoting
its business and products.

HONDA:

Honda used an innovative marketing campaign to change the way customers perceived
motorbikes. The slogan used was "You meet the nicest people on a Honda”, this campaign
showcased that Honda motorcycles were made for the common man. The campaign was
successful and increased Honda’s sales 90,000 motorcycles in 1963 alone. The promotional
strategy in the marketing mix of Honda is to be aggressive. Honda uses TV advertisements to a
large extent. Honda has released ads with different themes to attract customers. The adds focus
on Honda’s innovation and superior engineering such as the cog advertisement released in 2003.
Honda also released an advertisement showcasing the Honda founders dream of producing high
quality cars. Honda has a lot of promotion done through motorsports like Motorcycle Grand Prix,
Superbike racing and others in which the company participates or supplies engines. Honda
portrays that it builds cars which win such tournaments. Honda advertises in print media and
participates in road shows to showcase its products. Hence, this concludes the marketing mix of
Honda
 PLACEMENT(Q14)

TOYOTA

Dealerships are Toyota’s main places for distributing its products. This element of the marketing
mix determines the venues where customers can access the firm’s products. The following are
the main places in Toyota’s distribution strategy:

 Dealerships
 Retailers

Toyota dealerships are where most sales transactions occur. However, some retailers like auto
supply stores also sell the company’s products, such as spare parts and accessories. This part of
the marketing mix shows that Toyota relies heavily on dealerships to sell its products to the
target market.

HONDA

Honda has a robust sales network. Prior to 2006 Honda had three sales channels. These were
Honda Verno, Honda Clio and Honda Primo. Honda Verno sold established and products of
sporty nature. Honda Clio sold traditional Honda products and Honda Primo sold Kei car i.e.
small cars. All three were discontinued in 2006 and Honda Cars dealerships were established.
Honda sells genuine company accessories through Honda Access a retail chain. Customers can
also buy used cars directly from Honda through Honda Auto Terrace. To sell kei cars Honda
established Honda Auto Terrace in 2912. Honda Cars has strong sales and distribution networks
in the markets in which it operates. In India the network includes 309 authorised dealership
facilities in 197 cities.

Honda sells automobiles through a network of 740 retail dealers in Japan; 1,310 dealers in the
US; 1,580 dealers in Asia (excluding Japan); and 1,150 dealers in Europe as of 2014. As of 2014
Honda motorbikes had 6,900 outlets in Japan. Honda sells motorbikes using independent dealers
in US and Europe and Asia with 1,040 dealers in US, 14,070 dealers in Asia and 1,400 dealers in
Europe.
 SUGGESTIONS(Q15)

At the core, comes the customer value. Where comes what the customer is actually buying? So if
the customer tends to purchase a Toyota Car for example Toyota Corolla. The at the “Actual
product” level it is decided based upon the features of the car e.g. Dynamic Radar Cruise
Control, Automatic High Beams, Lane Departure Alert, Steering Assist, Pre-Collision System,
pedestrian Detection. Toyota and Honda Cars come under the specialty products.

In fact, every Honda is front-wheel drive. An all-wheel drive system is offered on some models
like its Ridgeline pickup truck and all of its SUVs. All-wheel drive is an option on the Honda
HR-V, CR-V and its largest crossover, the seven-passenger Pilot, which offers three rows of
seats. Toyota also offers consumers more models than Honda. Like other auto giants such as
Ford and General Motors, Toyota is what is known as a full-line manufacturer. It competes in the
vast majority of vehicle classes, including full-size trucks. For 2019 Toyota offers 18 nameplates
including a long list of sedans, two pickups, eight hybrid models and six different SUVs.

Toyota and Honda compete head to head in many vehicle classes, but not all. Toyota offers more
models than Honda, so it’s not always a fair comparison when it comes to price. To help you
calculate which models are cheaper we’ve listed every Toyota and every Honda model along
with its base price, not including the unavoidable destination fee, which is usually about $900 on
most models.

Data shows that Toyotas and Hondas are among the least expensive cars to keep on the road
when it comes to maintenance costs over the first 10 years of their lives. But Toyota does have a
slight advantage over Honda. In their first 10 years on the road, the average Honda costs its
owner $7,200 in maintenance, which is lower than every other brand except for Lexus at $7,000
and Toyota at $5,500. Remember, Toyota owns Lexus. This is especially relevant to the shoppers
of certified pre-owned and used models. All new Hondas are also covered by a 3-Year/36,000-
Mile Limited Warranty. But Honda’s powertrain warranty is shorter than Toyotas and only
covers the vehicle’s engine and transmission for 5-Years or 60,000-Miles.

Honda is one of the largest manufacturers of automobiles and motorcycles in the world. It
is a Japanese multinational company which operates in North America, Asia and Europe.
Honda is also known for the manufacture of aircrafts and power equipment. Since 1959
Honda has been the largest manufacturer of motorcycles. It is also the largest
manufacturer of internal combustion engines in the world. Honda is also actively involved in
advanced research such as robotics.
 WHICH FIRM IS BETTER?(Q16)

Both the firms are very close competitors to each other who are fighting head to head over the
profitability and growth. However, after deeply analysing both the firms we have figured out that
despite being very similar to one another they are still different on the inside depending on their
marketing tactics and main objectives.

We believe Toyota to be a leading firm when compared with Honda. The reason for this is:

1) Marketing Offerings: Toyota has a wide variety of automobiles available to each and every
type of marketing segment.

2) Production methods: Toyota is famous for being not only effecting but also efficient in the
production texhbiques. Toyota uses Just in time (JIT) AND TQM techniquess far more efficently
that helps in reducing the overhead costs for the business than Honda in comparison.

3) Availability: Toyota maintenance factories and assisting mechanics are available all over the
place in each country. In Pakistan before 1990 Honda users had difficulties in replacing the
shocks as they werent available in Pakistani Market until 1990s. Furthermore, parts are cheap as
compared to Honda.

4) Reliability and Durability: Autmoibiles produced by Toyota are much more reliable than
Honda as it is much more durable in long term.

Toyota Motor Corporation’s marketing mix (4Ps) reflects the firm’s strategies for interacting
with its target market. As one of the leading firms in the global automotive industry, Toyota’s
target market is diverse in terms of consumer preferences and regional and local market
conditions. As such, the company’s marketing mix is tailored to address these variations.
Founded in 1937, Toyota has grown from a local business to a leading global player in the
automotive industry. The firm now has operations in all regional markets, except Mongolia and
some parts of the Middle East and Africa. Toyota’s continuing global success highlights the
firm’s effectiveness in developing and implementing its marketing mix.