Introduction
Started in 1937, Toyota Motor Company (TMC) has its headquarters in Toyota City, Japan. The company is one of the biggest companies in the automotive industry. It has been at the forefront of car manufacturing for a long time (Rapp, 2006). Over the last forty years, the company has strived to redefine leadership in the car industry by constantly pushing the boundaries of quality, best practices, marketing and corporate responsibility. Toyota has succeeded in the global market through savvy business decisions and effective marketing communications. The last five years have been tumultuous for car manufacturers. This has been occasioned by skyrocketing fuel prices as well as growing concerns about the environment (Rapp, 2006). To counter this, Toyota has shifted is attention to diversifying its hybrid-electric motor vehicles and expanding the small-car portfolio. This underlines the success of the communication strategy of marketing. That is one of the strategies the company uses. This paper examines how Toyota Motor Company employs marketing communication and the marketing mix.
Toyota uses a superior form of marketing communication. On the company website, for example, there are pictures of the current leading models such as the 2014 Toyota Tundra, 2014 Corolla and the Toyota Camry. In addition, the website has six categories namely operations, environment, philanthropy, diversity, news and careers. The news section is the most relevant to marketing. It provides news on the newest models in terms of features, price, offers and discounts on particular models. Sales promotion is the most important component of the website because Toyota showcases new vehicles using flashy slides to draw attention.
Toyota’s effective marketing strategies may be analyzed through the essential marketing mix components such as sales promotion, advertising, public relations, direct marketing and personal selling. Advertising is a way of communicating the brand value. In terms of advertising, Toyota advertises through Ad Age. The company spent $3.31 billion in advertising in 2012 while it increased that figure to $3.99 billion in March 2013. Consumers need to be targeted using communications that notify them of features, changes, and improvements of vehicles. Toyota does this by devoting a significant amount of resources. The advertising is mainly founded on the strength that Toyota vehicles are very reliable and durable. The advertising is usually done in form of video commercials which are relayed through television or the internet. The strength of the Toyota brand provides necessary traction for the company’s different advertisements.
Promotion is a crucial element of the marketing mix for Toyota. Toyota performs promotion through big public displays in term of billboards, sponsoring major games such as the Olympics and the NBA and video advertisements such as in TV and online (social media, website etc). Bold statements such as: “The car in front is always a Toyota,” are justified and underline the success of the company in promotion.
In terms of price, Toyota produces high quality vehicles at competitive prices. This is why many people prefer Toyota vehicles because they get value for their money. Toyota employs tactful pricing strategies. The company differentiates its prices from its competitors by employing a different pricing set-up. This is achieved by pricing cars meant for different regions differently. For example, a Toyota Land Cruiser may cost 20,000 Euros less in the USA that in France despite being the same product. The company adapts the price range to suit the expectations of the customer (Toyota, 2014). Waste elimination enables pricing to go low. The Toyota Production System (TPS) is a method where lean production is employed to lower production costs and eventual car prices.
In terms of place, Toyota has a global presence, with over 50 manufacturing businesses in more than 27 countries around the world. Most of these plants are solely owned but there are some which are owned through partnerships. Through its automotive dealer promotion, the company sells products throughout the world. Each national headquarter of the company takes charge of promotional activities. The presence in different countries gives Toyota a good base for selling its products.
In terms of product, the company has a wide range of vehicles which suit customer needs. Today, the company manufactures buses, trucks, cars and robots. Is it associated with car models such as Lexus, Toyota, Corolla, Daihatsu and Hino. One car model that almost encapsulates the campaign of energy-saving and environmental concerns is the Toyota Prius. This brand continues to be favored in most parts of the world. Brands like the Toyota Camry and Avensis are equally popular in Asia and Europe (Toyota, 2011).
Conclusion
Toyota has been at the forefront of car manufacturing for a long period of time. This has been contributed to by the company’s superior marketing communications, promotions and the 4Ps of marketing” Price, Product, Promotion and Place. In terms of price, the company uses a special pricing strategy where prices differ with regions and customer expectations. Product is achieved through a diverse range of reliable vehicles which the customer can choose from. Toyota has a strong global presence and this improves the company’s international sales. Overall, the company continues to be the second-largest car manufacturer in the world.
References
Rapp, W. V. (2000). Automobiles: Toyota Motor Corporation Gaining and Sustaining Long-term Advantage through Information Technology. Columbia Project, 2(3), 1-96.
Toyota. (2011). Toyota’s 21 St Century Diversity Strategy a Comprehensive Program for Minority Participation in Toyota Today and Tomorrow. Toyota Diversity, 2(5), 1-10.
Toyota. (2014, February 4). Toyota Cars, Trucks, SUVs & Hybrids | Toyota Official Site.. Toyota Cars, Trucks, SUVs & Hybrids | Toyota Official Site.. Retrieved March 8, 2014, from http://www.toyota.com/
