2016-01-23
Introduction 3
Views on the marketing of the company Toyota Motor Corporation 3
II. Changes in the organization’s orientation towards the marketplace 5
III. Mission and Vision of the Company Toyota Motor Corporation 6
IV. Barriers and Challenges in Choosing an Orientation towards the Marketplace 7
Conclusion 8
Toyota Motor Corporation and its Orientation Towards the Marketplace
Introduction
Nowadays, the company Toyota Motor Corporation is one of the largest automobile manufacturers in the world. Its history has started in the 1930s, when Toyoda Automatic Loom Works has entered the market. This company was engaged in the manufacture of textile machines. But now Toyota Motor Corporation is well-known as an automobile producer.
The conveyors of the company produce millions of cars annually. In addition to its main direction, this company deals with the rendering the certain financial services also. The company Toyota employs thousands of people around the world. Currently, the company produces such popular brands of automobiles as a Yaris, Auris, Avensis, Camry, Corolla, RAV4, Prado, Prius and some others. The Toyota Camry was the number one selling vehicle for many years (Sysko and Jaysinha, 2015). The company Toyota takes active participation in such sports as rally racing and Formula 1.
Currently, the global car market is characterized by uniformity and develops disproportionately. The automobile market has already passed the culmination point in its development. According to experts, the growth in global demand for automobiles will slow down in the next few years. Despite this, leaders in the production and consumption of cars are not particularly changed. They are as follows: the US, Japan, China, West Europe countries (Statista, 2014).
Views on the marketing of the company Toyota Motor Corporation
The marketing has been reviewed at the company Toyota motor Corporation several times. Let’s analyze factors which cause it. The company has worked exclusively for the domestic market until 1949. The end of the 1940s can be considered as a crisis for Toyota, because there were no any particular perspectives for the following development of the company. Thus, one can say, views on marketing were unclear and uncertain. The situation has been changed strongly in the 1950s. The market of Japan has been opened for foreign producers and it has caused changes in the marketing strategy of the company Toyota Motor Corporation. The management of Toyota has accepted the following directions of marketing activity as:
entering new markets of developed countries – the US, European countries and others;
the diversification of models of cars;
the opening the research and technical centers, not only in Japan, but also in other countries.
The US auto industry has impacted on the marketing strategy of the company Toyota Motor Corporation strongly. It should be noted, that the US automobile producers remain the biggest competitors for Toyota till today. The company's marketing strategy has focused on the rapid development of the Toyota in the 1970s. The company used all kinds of methods and tools for advertising and promotion of new car models abroad. For example, the specialist Ron (2007) wrote “Toyota's success is fueled by robust demand for its reliable, fuel-efficient models, including the Camry, Corolla, Yaris and gas – electric hybrid Prius”.
An important event in the company's development was the opening of the first plant in the United States. It happened in 1972.
Nowadays marketing is considered by the management system of the company as an important tool in its further development. It should be noted, that the company Toyota Motor Corporation starts to focus on the strategic marketing. Long-term objectives are in the first place in comparison with the tactical goals.
Changes in the organization’s orientation towards the marketplace
There are a lot of definitions of the marketing orientation. For example, the specialist Day suggested three common denominators:
“a set of beliefs that put the customer’s interest first;
the ability of the organization to generate, disseminate the superior information about customers and competitors;
the coordinated application of inter-functional resources to the creation of superior customer value” (Gounaris, Avlonitis and Papastathopoulou, 2004).
There are three major components of market orientation: “сustomer orientation, competitor focus, and cross-functional coordination” (Slater, Narver, 1994). All of them are long-term in vision and profit-driven.
Analyzing the company Toyota, one can say, that customer orientation is always in the first place. It is the heart of the market orientation of the company. In addition, the main principle of Toyota remains unchanged over the years: “Customer is on the first place”. Based on this global principle, a new strategy of customer service, both in the sales process and during the after-sales service, is implemented on the every new market, on which company enters. Such strategy is called «Personal & Premium». It consists in an individual approach to each client, and the highest quality of service at the dealer network of the company.
Nowadays the company Toyota Motor Corporation continues to develop its model car range of Toyota and Lexus, which best corresponds to the needs of the majority of consumers in different countries. The next feature of marketing orientation of the company is focusing on the segment of off-road vehicles, as well as the premium segment. Toyota develops a range of services for the automotive aftermarket as a part of a new strategy to ensure an individual approach to each client, and the highest quality service.
More attention is given to such points, as:
development of loyalty programs for customers,
reducing the cost of owning a car,
attracting owners of post-warranty Toyota and Lexus vehicles to the official dealerships,
development of forms of constant communication with customers to get feedback from them
studying the additional needs of the customers.
Not only customer orientation creates superior customer value of Toyota. It should be noted, that “the so-called Toyota Production System” is a great advantage of the company. It has been implemented since the company has started to enter new markets (Fujimoto, 2012). According to the specialist Rooney (2005), “Toyota Production System provides the operating philosophy and improvement tools to the business”. It can be considered as a kind of the interfunctional coordination, when every employee from different departments recognizes his role and works effectively.
Mission and Vision of the Company Toyota Motor Corporation
As we know, Japan differs from other cultures rather strongly. It influences on the company Toyota also. For example, the company pays great attention to the unity of the staff and stable long-term relationship with each employee. As a result, the company trains employees inside and can generate effective staff, that is interested in the growth of the company as well as in meeting the needs of customers.
The current mission of the company Toyota includes the following principles:
the company is responsible for every car, that is sold to customers;
great attention is paid to the training staff in order to correspond to the interests of its demanding customers.
The corporate culture of the company helps to generate employees which can:
think about the nature of the company and their role in it;
understand that the work is not only a way of earning money, but also a way to contribute to the public welfare (Liker, Hoseus, 2008, 15).
As we can see, the current market orientation of Toyota has already formed the high level customer confidence. The last one is the main reason for success of the company Toyota Motor Corporation.
Barriers and Challenges in Choosing an Orientation towards the Marketplace
There are a lot challenges and barriers can appear on the way to the stable development of the company Toyota and using its market orientation. For example, a period of 2008-2009 was not very successful for Toyota. The company has started working with losses for the first time since 1950. At the same time, the several scandals, which are associated with the reliability of the cars, have been all over the world. According to the results of 2009. Marketing strategy has not helped to change the situation with the fall of the company's turnover.
Nowadays, the marketing orientation of the company Toyota should be ready for challenges through the achieving the following tasks:
increasing the number of contacts of potential buyers due to falling of demand in financial crisis conditions;
formation of demand at potential buyers of Toyota cars;
a reminder of the existence of specialized salons for those who have already turned to its services;
informing existing and potential consumers about promotions and offered discounts at the car showroom;
improving the image of the car showroom in opinion of consumers;
attracting the maximum number of consumers at the car showroom, regardless of their preferences of the models and car brands.
Factory location in a seismically active area in Japan is a serious barrier to the stable operation of the company Toyota. It is the biggest weakness of the company, that can impact on its activity adversely.
Some changes in the target audience can influence the sales volume of the company. For example, the main consumers of Toyota vehicles were concentrated on the American market. But now, the company reorients to the European market as more perspective one. In this case, the company focuses on the European competitors more. This element of market orientation becomes more important.
Thus, as a part of the marketing strategy of the company in the long term, the market of the European countries is in the first place to further sales of cars.
Conclusion
In conclusion one can say, that the company Toyota Motor Corporation is considered “as a symbol of manufacturing and leadership excellence in the business world” over the years (Piotrowski and Guyette, 2010, 89). The company Toyota Motor Corporation achieves significant success due to effective strategic planning in marketing as well as in other business processes.
The strategy “just in time” allows the company to take a significant market share and become a serious competitor for the US car manufacturers.
The heart of the market orientation of the company is customer focus. It has not changed since the end of the 1940s. It should be noted, that the main principles of the market orientation are clearly reflected in the company's mission. It largely contributes the company’s growth.
References
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