M RahmanMarketing Mix of Toyota (4Ps of Toyota)
This is a detailed analysis of the marketing mix of Toyota (4Ps of Toyota). It examines the effectiveness of the automaker’s marketing mix decisions and identifies the areas of improvement. Toyota Motor Corporation is a Japanese multinational company, headquartered in Toyota City, Japan.
Product strategies of Toyota
Toyota is a leading motor vehicle manufacturer in the world, and it is the first company to offer a hybrid car to consumers. It engages in a wide range of businesses such as automobile which include the manufacturing of vehicles, engines, car air-conditioning compressors, and car electronics.
Toyota has a wide variety of car models, and the cars are very reliable as well. Some of them are Corolla, Camry, Prius, Avalon, Corolla Hatchback etc. Venza, Rav4, Rav4 Hybrid, Highlander, Sequoia are some models on sale in the crossover and SUV range. Prius Prime, Corolla Hybrid, Camry Hybrid, Mirai etc. are some of the vehicles in the hybrid and fuel cell range.
Toyota also manufactures equipment for handling material and textile machinery. Under the category of materials handling equipment, it manufactures RAYMOND and AICHI products in addition to Toyota products.
In addition to the above, Toyota also provides financial services, warranties, and car services to its customers. Its approved used cars which accompany a 12-month warranty and 12-month roadside assistance, are getting popular as well.
Toyota has been a leading company for a long time in the manufacturing of both electric and hybrid vehicles. Its stylish hybrids are enjoyed by over 15 million drivers globally (Toyota, 2021). However, it should be mentioned that due to stalling problems, it had to recall 2.43 million of its hybrid vehicles worldwide, including 1.25 million in Japan, 807,000 in the US, 55,000 in the UK, and 3,000 in China (Sky UK, 2018).
Pricing strategies of Toyota
Toyota maintains a high quality for all its products. It takes the competition, location, and demand into account when pricing a product. The prices vary according to the model of a vehicle and the add-ons that have been added to a particular vehicle to make it more attractive to customers.
There is a general perception that Toyota vehicles are priced at an affordable rate. However, Trebilcock (2021) argues that some cars such as Toyota Yaris and Toyota Corolla are not the smallest cheap cars in the market.
Place/Distribution channels of Toyota
Exploring distribution channels is a key part in the marketing mix of Toyota (4Ps of Toyota). The automaker sells its products through retailers and authorized dealerships around the world. Customers can physically view the products and even test drive a vehicle before making a purchase decision. The company also sells its vehicles in showrooms and exhibitions.
Toyota also sells vehicle spare parts at its retail showrooms. The staff at showrooms provide customers with information on warranties and finance options for purchases.
Promotion strategies of Toyota
Toyota promotes its products on television, newspapers, billboards, and social media channels. It also uses ambassadors to promote the products. However, its advertising budget is costly. For instance, it spent around 4.3 billion U.S. dollars in advertising and sales promotion between April 2019 and March 2020 (Statista, 2021).
Toyota is the first ever mobility partner of the Olympic Movement. It also has a long-term partnership with AFL (Australian Football League). It often offers massive discounts on certain vehicles to increase sales. However, it needs to increase its social media presence.
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Last update: 21 September 2021
References:
Sky UK (2018) Toyota recalls 55,000 hybrids in UK over ‘stalling’ fault, available at: https://news.sky.com/story/more-than-55-000-hybrids-recalled-by-toyota-in-uk-11517888 (accessed 21 September 2021)
Statista (2021) Toyota Motor ad spend worldwide 2017-2020, available at: https://www.statista.com/statistics/286518/toyota-advertising-spending-worldwide/ (accessed 20 September 2021)
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Toyota (2021) Welcome to Toyota, available at: https://www.toyota.co.uk/ (accessed 19 September 2021)
Trebilcock, O. (2021) Should I buy a Toyota? Available at: https://www.which.co.uk/reviews/new-and-used-cars/article/popular-car-brands/should-i-buy-a-toyota-car-aVBZY0a8bosw (available at: 21 September 2021)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.
