Marketing Management in Toyota Motors
Introduction to Toyota Motors
Toyota Motors is a global automotive
manufacturing giant that is based in Japan.
The company incorporated its operations in
1937. In 2019, Toyota was ranked as the
tenth-largest international business
organization in terms of its revenue. It is
playing a major role to promote the mass
adaptation of hybrid automobiles. It is
offering a very versatile range of vehicles
and other products including hybrid electric
cars, all-electric cars, pickup trucks, buses,
boats, luxury vehicles, motorsports, spare
parts, etc. Toyota is also involved in some
non-automotive businesses e.g. aerospace,
agricultural biotechnology, robotics, etc.
However, these businesses are operated in
a limited scope. Toyota has been running a
very successful marketing strategy for a
prolonged period. Here, the various facets
of its marketing operations will be discussed
in detail.
Marketing Environment Analysis
The holistic marketing environment analysis of
Toyota motors will be conducted using three
frameworks i.e. PESTLE, SWOT and Porter’s Five
Forces Model:
PESTLE:
• Political environment is quite favorable for
Toyota motors as it operates majorly in markets
that have less political tensions. Governments
also favor the fuel efficient products.
• Economically there seems certain threats as
many economies are deterioration especially in
developing countries that may cause fall in
demand.
• Socially, there is greater focus on hybrid and
electric vehicles. However, increasing wealth
gap can be a threat.
• Technologically the environment for Toyota
Motors is very volatile and need continuous
upgrades and innovation in its products.
• Environmentally, Toyota is already playing
efficient role through its fuel efficient vehicles.
However, decreasing world’s oil reserves can
exert further pressure in future.
Porter’s Five Forces Analysis:
• Lower threat of new entrants in automotive
industry
• Fierce competitive rivalry
• Greater bargaining power of Toyota’s customers
• Suppliers have low bargaining power
• Threat of substitution is moderate
Market Segmentation and Brand
Positioning
For market segmentation, Toyota considers a
variety of factors including geographic,
demographic, and psychographic factors. It
implements differentiated targeting for its
different offerings. For its cars (excluding luxury
cars), its major target is people belonging to
the higher middle class.
Toyota positions its brand as something that
generates greater value for its customers at
given prices. It emphasizes the functional and
value-added benefits for the users
Competitive Analysis
The competition in the automotive market is
limited but fierce. This fierce competition also
leads to shrinking profits and resulted in no
growth in 2016. The major competitors of
Toyota are Honda, General Motors, Nissan, and
Ford Motors. Toyota deals with them through
the competitive advantage that it has in
developing world-class products at the lowest
possible prices and the hybrid technology in
which it masters
Toyota Marketing Mix
Following is the marketing mix of Toyota
Motors:
Products:
Both tangible and intangible products are
being offered by Toyota i.e. automobiles and
warranties. The variety of products offered by
Toyota can be divided into the following
categories (Anon., 2020):
Passenger vehicles
Hybrid cars
Commercial vehicles
SUVs and 4WDs
The intangibles include:
Warranties and extended warranties
Financial services
Road assistance
Place:
Toyota’s vehicles are distributed through its
dealerships and the sales are made through
one-to-one dealing with sales staff and the
customer. In some countries, Toyota also works
through sales representatives who travel to the
targeted customers’ doorsteps to market the
products and services.
Pricing:
The selling price is ascertained by first
considering the required profit margin of a
product. To account for the production costs,
Toyota uses the same formula in a slightly
different manner i.e. selling price – costs must
be equal to the required profit. The company
pays special attention to waste elimination to
further minimize the extra costs. Promotion:
The media that is used for Toyota’s promotion
include television, newspapers, flyers, social
media, billboards, etc. Direct marketing is also
used by Toyota’s dealers.
Recommendations
Considering the marketing environment and
Toyota’s performance, the following
recommendations can be made:
• Considering the deteriorating economies amid
the recent crises, Toyota should develop some
more affordable vehicles.
• It should focus its advertisement on the green
vehicles and fuel efficiency of its products
because, despite its worth adopting innovations,
it has not captured the market up to the point it
deserves.
• Toyota should also work for its suppliers’
efficiency as the prices of raw materials are
rising that would affect the selling prices off the
company eventually.
CONCLUSION
Toyota has always played efficiently to stay ahead of the
competition. Its focus on the research and development
and commercializing the latest innovative technologies
is its key strength. This can be utilized effectively for the
sustainable growth of the company in the future. Its
marketing plans must also align with its new
developments to bring it the success that the company
truly deserves.
REFERENCES
Anon., 2019. Automobile Market Share Worldwide|
Statista. [Online]
Available at:
https://www.statista.com/statistics/316786/global-
market-share-of-the-leading-automakers/
[Accessed May 2020].
Anon., 2020. New Cars, Trucks, SUVs and Hybrids |
Toyota Official Site. [Online]
Available at: https://www.toyota.com/
[Accessed May 2020].
References
Anon., 2019. Automobile Market Share Worldwide| Statista. [Online]
Available at: https://www.statista.com/statistics/316786/global-market-share-of-the-leading-
automakers/
[Accessed May 2020].
Anon., 2020. New Cars, Trucks, SUVs and Hybrids | Toyota Official Site. [Online]
Available at: https://www.toyota.com/
[Accessed May 2020].
Gul, M. J. F. B. Q. J. M. a. J. M., 2012. Brand image and brand loyalty.. Abasyn Journal of Social
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Tan, J. C. W. C. C. C. M. a. C. B., 2012.. PESTLE Analysis on Toyota Hybrid Vehicles. J]. Academia
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