Toyota

Background

Technology takes part in the development of human being, especially information and technology. It creates globalization in almost every sector of economy, politics, education, and culture in almost every country. Technology makes information almost borderless and simplifies the customer source of information but on the other hand makes the market analysis grow more sophisticated and also creates the need of improvement in knowledge to understand the marketing model to cope with the dynamic improvement of technology.

Marketing as knowledge to describe “what-who-when-where-why-and how” to the market works describe in 3 main issue which is ;

1. Product management
2. Customer management
3. Brand management

That is all learnt by marketeers so corporates could generate the demand of production continually time after time and surviving in the market. The problem nowadays is when the company’s marketing slowly has less effect on customer due to a lack of trust or the obsolete company methods used in today’s shifting market, companies needs to be more ease and open to new, necessary information so it could be disseminated to their customers.

Social media and information portal, easily accessed by those who need current information and recommendations, is more preferrable to the consumer. A research said that 90% of customers are sure about recommendations his/her friend gave them and 70% of customers are sure about opinions on the internet. Somehow it is a phenomenon that less of consumers are convinced of company’s advertisements and shifted to another form of “advertisement” which is what we call recommendation by acquintances.

It is an opportunity for companies to take advantage of a community or group of loyal customers as an information pipeline to attract customers and prospected customers. It is what we know as word of mouth, which the dissemination of information is not massive but specified and spread in high speed thus making it unstoppable. To companies, above the line (ATL) advertising should not only be the main focus and main budget spent to market their product information and create the willingness to buy, companies also should convince the potential customer by developing the methods of effective below the line (BTL) advertising effective-efficient.

Community involvement in this BTL aactivity is one of the activations in horizontal marketing. How to do that is develop a company that has marketing orientation from a precious concept (main issue of marketing explained above) into new concept of horizontal marketing which contains;

1. Co Creation
2. Communitization
3. Character building

The point in communitization is explaining the relationship between the company and the consumers with a community between them. Godin Seth in his book “Tribal” concludes that successful companies have the support from the community.

It explains that consumers intend to be more connected with other costumers rather than with the company. Here is great oopportunity if companies understand what its consumers want and take the appropriate action by accomodating consumers in a community or enter the existing community and give the company’s influence there. A company needs to help consumers connect to their community so the influence has more power to persuade the following marketing effort. Fourier and Lee explain that consumers themselves would choose where they belong on the following type of connection :

1. Pools : here is where consumers are real brand fans and event hough they did not interact directly with other consumers in a community they would still be “brand evangelists” and strengthen brand power.
2. Webs : the consumer has one-on-one interraction, it is typically consumers who connect with each other on social media. They spread information and influence in one-on-one interaction but usually also affects other group members.
3. Hubs : A hub connection needs a leader, the trend setter and figure who brings another consumer (follower) into the network and these consumers will move around the leader and create a loyalty of brand.

We might agree that a community is developed not to serve the business but to serve their members which attracts loyal consumers. But this indirect relationship does not mean the company has no intention, the company needs to maintain in effective-efficient way so marketing effort will not be a waste but instead succeed slowly but sure, the company builds the building blocks of a consumer’s trust and loyalty, and the community has significant role in it.

Problem formulation

For the background has been explained before, authors have researched the question to be developed as mentioned below:

1. What are Toyota Owner Club’s strengths, weaknesses, opportunities, and threats in its current position ?
2. How Toyota explains the frame work and milestones in this community management process ?

Research objectives

This research is done pursuing the explanation of problem found and set objectives as shown below :

1. Identifying Toyota Owner Club has strength, weaknesses, oopportunity, and threat
2. Giving suggestion of current community management process has frame work and milestone

Research scope

Author has scope in this research are:

1. Research conducted while doing industrial training in PT Toyota-Astra Motors (Head Office, Jalan Yos Sudarso – Sunter II Jakarta 14330) in Marketing Division- Marketing Communication Departement, Event Section.
2. Information provided is infromation from author has observation, discussion, and primary and secondary data from industrial training period.
3. This research is not for profit and conducted as author has suggestion to the management, event section of PT Toyota-Astra Motors.

As the competition among autonomous driving businesses is getting intense, Toyota and Uber will try to catch up by deciding to partner in developing self-driving cars. They plan to use technology from both companies into Toyota’s Sienna minivans to be deployed across Uber’s ride-hailing network from 2021. Together, they aim to design and produce safe autonomous vehicles for the mass market. This deal benefits both Toyota and Uber, and will still likely benefit both companies even in their individual endeavors.

Their partnership profits Uber in many ways. Firstly, CEO Khrosrowshahi’s strategy of Uber developing autonomous vehicles through partnerships has successfully began to progress. Secondly, it brings revival to Uber’s self-driving business after a self-driving Uber SUV killed a pedestrian in Arizona back in March, which moved Uber to remove its robot cars from the road, lay off hundreds of test drives and closed its autonomous testing hub in Arizona. Lastly, Toyota’s investment raised the valuation of Uber by $4 billion from the deal Uber had with Alphabet Inc.

Uber totaled $891 million losses in the second quarter where the self-driving unit is a significant contributor. However, it can compensate its losses through this partnership. With combined technology, their goal of a safe autonomous vehicle is likely to happen. And with this success, profits from their self-driving business will surely compensate the losses Uber previously occurred.

Toyota also profits from this agreement through its transformation to a mobility company as they help provide a path for safe and secure expansion of mobility services like ride-sharing that includes Toyota vehicles and technologies. Its statement that it would not combine its research efforts with Uber may somewhat have a negative impact on the partnership’s progress in producing safe automated vehicles. But, Toyota benefits from the deal when they gain more information regarding self-driving technology as they work with Uber.

Together, they make a great teamwork. Uber’s autonomous driving system and Toyota’s commitment to safety and its renowned manufacturing skills is surely to bring a safe self-driving car. Uber have experienced many problems in this path: they had further setbacks in development and testing due to the crash in Arizona, and also has met difficulties with regulators and politicians concerning safety. But Toyota’s Guardian technology, which offers automated safety features, can cover Uber’s flaws.

Toyota may be less aggressive than some rivals on moving toward full-fledged autonomous driving but their investment in research and plans to begin testing self-driving cars in the future is a great move. They won’t be able to survive the competitive autonomous self-driving business if they continue to focus on partial autonomous systems. This partnership is a great start for them in their journey to produce fully developed self-driving cars.

Toyota’s decision to not combine its research efforts is also a good move since Uber has other partnerships like their partnership with Daimler AG, and a deal with Volvo which does not have the same level of intense labor as Toyota does. This could lead to misunderstandings or conflicts of interest, so it is best that they keep some plans to themselves. Their previous partnership on a car-leasing program for Uber drivers, where Toyota invested in Uber and which Uber decided to close its U.S. leasing business, is also a factor that can affect their relationship. This could mean distrust between the companies that can badly affect their current deal.

Overall, their partnership brings great opportunities to both companies. Toyota benefits from the agreement and Uber does, too. Their goal in producing the world’s safest self-driving cars on the Uber network is surely to become reality if they work together in covering each other’s flaws and leveraging their expertise.

Global Strategy – TOYOTA

Toyota Motor Corporation is one of the best leading vehicles manufacturing company in the world. It is ranked as the eighth largest company in the world and best second after GM in the category of motor vehicle production globally. Toyota Motor Corporation is a multinational company whose headquarters are in Japan. Kiichiro Toyoda established Toyota in 1937 when he started creating automobiles that were a spin-off from his fathers textile loom company. The company produces and sales a variety of vehicles ranging from passenger cars, trucks, personal cars and buses. Today, Toyota deals with various models and brands such as Carina, Lexus, Scion, Premio, Corolla and many others.

Toyota motor corporation company has a number of subsidiaries in the world. These subsidiaries help in marketing of Toyota vehicles and products within their respective countries. Toyota Motor Corporation manufactures vehicles in 27 countries globally and sales are made in more than 170 countries and regions. The focal point of the company is the automotive industry although it is involved in other sectors. One major involvement is in the finance segment and other industries such as information technology, E-business, biotechnology, Japanese prefabricated housing, building of robots and intelligent transport systems.

The success of Toyota Motor Corporation in production of vehicles has been in adoption of strong sales strategies. This is incorporated in the vision and value statement of the company whose efforts focuses on quality and positive feedbacks from ownership. Toyota motor corporate mission and values evolved from the company’s origin that is reflected in lean manufacturing and just in time production. The managerial values are instrumental in development and are collectively referred to as Toyota Way.

The Toyota Way incorporates production system of the company and has four components or philosophies.

These components include; first, long-term thinking as a means for making managerial decisions.

Secondly, an elaborate process for problem solving which helps in resolving of issues through application of appropriate measures.

Thirdly, addition of value to the company by developing its entire staff as a form of skill development. This is achieved through various programs as an asset to the company. The most important virtue of existence is creation of good relationship between the company and the people it serves.

Fourth, the recognition of the importance of solving root-problems that leads to organizational learning and development (Liker, 2003). The corporate vision of Toyota is to achieve long-term growth in harmony with stakeholders, local communities, environment and global economy.

Toyota Motor Corporation has five core values that express the company’s beliefs and values observed by all its subsidiary branches. Every Toyota team member is expected to use the values while executing their daily work and in the event of dealing with customers. These core values include challenge, improvement, respect, go and see and teamwork.

The purpose of mission of Toyota Motor Corporation is to participate fully in people’s lifestyles, economy and society through automotive manufacturing. This is achieved through development of strategies that focus on the future of automobile industry with a view of positioning its company. Toyota Motor Corporation values all its stakeholders such as customers, employees, local communities, business partners and shareholders (Herbig, 1995). Toyota values the importance of incorporating strategies that lead to proper relationship with all its stakeholders.

Toyota Motor Corporation relates well with its stakeholders through maintenance of sincerity in its actions, consideration of environmental initiatives and acting in spirit of good faith. A major development was the fact of revising its corporate social responsibility policy to enhance a close link with its stakeholders. Toyota balances its operations with customers by addressing their diversifying needs through application of quality first policy. Toyota Motor Corporation relates properly with local communities with an objective of being a good corporate citizen. Good relationship with employees is one of the most important components that aim at sharing Toyota Way in the entire world.

The existence of good relation between employees and Toyota Motor Company is to develop human resources and respect diversity within the organization. Shareholders are the other stakeholders of Toyota Motor Company. The relations with shareholders aim at realizing stable growth by enhancing corporate value through establishment of long-term stable growth.

Improvement of corporate value does not only benefit shareholders but will lead to greater understanding of the company. The most three financial strategies observed by Toyota include stability, growth, and efficiency (Walltsen, 1998). A balanced pursuit of the three priorities enables the company to achieve steady and sustainable growth in the long-run. One priority of Toyota management policy is to distribute its profits to shareholders. This aims at reinforcing corporate structures that leads to development of production and sales business. Another group of stakeholders in Toyota Motor Company is business partners. Toyota relates to its business partners by undertaking fair and open business activities that relates to development of law language. Toyota Motor Corporation works hard towards realization of mutual benefits for purpose of building mutual trust. Through cooperation with business partners, dealers and suppliers, Toyota contributes to sustainability of society development. A proper mechanism of communication with suppliers is developed to create a strong bond between suppliers and the entity.

Toyota’s strategy

The domestic and global Toyota strategies are developed in a way that increases sales and meets the demands of many customers. There are certain strategies considered by Toyota relating to the organization as a corporate. The domestic strategies include first, increase in competitive strength through application of technological advancements.

Second, cost reduction efforts achieved through production of hybrid vehicles that meet the demands of users. The company has strategized to manufacture vehicles that are efficient in fuel consumption, emit limited amounts of carbon dioxide and are easily recoverable.

Third, Toyota Motor Company is working hard towards expansion of value chain with an objective of becoming total mobility service provider.

Fourthly, the company has strategies that lead to increased efforts on financial services and information communication systems (Herbig, 1995). This is achieved through discontinuation and integration of older models. Global strategies include marketing, pricing, and promotion that contribute a big percentage in development of Toyota Motor Corporation.  Offensive marketing strategies are established to promote sales of environmentally friendly vehicles. This helps to establish a strong relationship between customers and the company to beat global competition. Toyota’s global strategy incorporates three main elements that include stepping beyond harmonious growth to become one of the best world leaders.

A second element incorporated in marketing strategy includes sharing of prosperity with employees to create a strong relationship.

Finally, the marketing strategy aims to benefit the entire society through technological advancement and sales of value added products. Through its subsidiary companies in different countries, Toyota ensures that the needs of customers are met adequately.

The marketing mix of 4p’s is one major strategy developed by Toyota and has helped it to survive in global markets. The marketing mix in this aspect refers to product, price, place and promotion that have helped the company to reach the entire market. Toyota produces a variety of vehicles that meet the demands of the end users which is a corresponding mark on product. The prices of the vehicles are affordable making it possible to meet demands of customers. Toyota uses place as an element of marketing mix and a feature of distribution that helps the company to meet global demand of its product. Promotional strategies have been developed by the management at Toyota to reach several regions in the world. The level of applying both domestic and global strategies has led to improvement in provision of quality products and services (Walltsen, 1998).

Certain changes in business environment and at Toyota Company have resulted to some positive or negative effects. One major changes adopted by the company is application of modern technology in production. Change in technology is one critical area that relates to dissemination and preparation of relevant information in business values. Another change in business environment has been the use of e-sales in marketing which is an aspect of globalization. This in its capacity has affected positively in various areas such as transportation, removal of trade barriers, warehousing and communication. Consumers are in a position to purchase their model of Toyota cars via the internet without movement from one place to another. The influence of key market players at Toyota Motor Corporation has helped it to raise competition that is a relevant requirement in business environment.
Five Porter’s forces analysis

Porter’s five forces are designed to evaluate the competitive forces within Toyota Motor Corporation. These forces include threats of new entrants, threat of substitute products, and threat of established rivals, bargaining power of buyers and bargaining power of suppliers. Toyota Motor Corporation clearly understands the dynamics of its structure for effective competition in the market. There are a number of other vehicle manufacturing companies that pose threat of entry but Toyota has developed strong strategies that outweigh challenges of new entrants. In the case of substitute products, Toyota has strategized itself effectively to beat competition posed by substitute products (Fields, 2000). The threat posed by substitute products is in relation to profitability that is dependent on price-to performance rations of different products.

Threat of established rivals is one of the major challenges in matters relating to competition at Toyota Motor Corporation. The degree of rivalry is favorable and one of the most obvious among the five forces. This is because it is one component used by Toyota to measure the level of competition in global market. This is a key element that helps the company to keep check relating to production of quality vehicles (Liker, 2003). The bargaining power of Toyota customers is an outstanding value as many buyers are in a position to afford different brands of Toyota without pain. Their prices are usually friendly and this means that the competitive market environment within Toyota is favorable. Bargaining power of suppliers is unfavorable as there is higher supplier power and low buyer power. There is also the possibility of supplier’s market integration and fragmentation of customers. The degree of differentiation in inputs supplied is one major observation in Toyota that is a measure of supplier power.
Key success factors in Toyota market

The success factors in the marketing strategies in Toyota relates to application of technological advancement in marketing, promotion and branding. The use of promotions and advertisement sites in the internet has made it possible for Toyota to command a big share in global market. Production of hybrid vehicles and consideration of environmental factors makes the company a successful player in the market (Walltsen, 1998). Effects of globalization are another success factor at Toyota Company in the aspect of communication, technological advancement, and transportation. The use of E-commerce as a way of marketing makes it easy for Toyota to market most of its vehicles in the entire globe.

SWOT analysis

The external threats can be reduced in the current Toyota’s position through application of strong values to curb effects of global competition. One major issue under consideration should be recruitment of a well-composed human resource work force. In addition, adoption of modern technology and good marketing strategies can help to fight against external forces.  There are certain weaknesses that Toyota Motor Company need to improve to meet global demand and competition. One key area is to produce vehicles in models that consumers want. This is will counter the weakness of over supply in vehicle manufacturing industry. One major opportunity in Toyota Company that matches its strengths is the manufacturing of new model cars that meet demands of a particular market segment in this case the youth. It is strength and an opportunity as the company has the right mix of products that meet demand of market it serves. This can be achieved as Toyota Company continues to focus on positioning, segmentation and targeting in different countries.

Strategy formulation and measurement

Toyota motor Company has developed certain strategies that makes it come from the current state of affairs to a better future market development with an objective of achieving competitive edge. Toyota Motor Company incorporates four main strategies in its formal structure that helps the entity to achieve competitive advantage in global market. The four main components include multinational, global, international and transnational. Multinational strategy should focus on revenues other than cost and national differences. Other considerations include differentiation of products to cater for consumer preferences and tastes.

International strategy is formulated in a manner that involves the capability of transferring products from developed countries to other non-industrialized nations. Global strategy is formulated in a manner that emphasis on efficiency for purpose of achieving economies of scale. A major consideration is production of vehicles that are environment friendly, as they do not pollute the atmosphere through carbon emission. The strategy should incorporate transnational demands such as addressing of revenues and costs that are simultaneously manageable (Kumar, 2006). The capabilities and resources within the organization must to some extent be centralized and decentralized.

After formulation of strong strategies, it is important for Toyota to evaluate certain measurement principles that reflect the true picture of the company. This can be achieved through honoring the language of law of each participating country and undertaking fair corporate activities. This will lead to achievement of competitive advantage in the market.

Second, creating advanced technologies for purpose of providing outstanding products to meet needs of customers.

Third, working properly with business partners and other stakeholders to achieve long-term growth. In addition, the measurement policy should aim at establishing mutual benefits while keeping the company open to new partnerships.

Fourth, a major measurement is respect of customs and culture for each nation with a view of contributing to social and economic developments. These strategies can be implemented through proper coordination of resources through corporate activities in the entire community.

References

Fields, G. (2000). Leveraging Japan Marketing to the New Asia. San Francisco: Jossey-Bass Publishers.

Herbig, P. (1995). Marketing Japanese Style. Westport, CT: Quorum Books

Kumar, R. (2006). Linkages between Brand Personality and Brand Loyalty: a Quantitative Study in Emerging Market in India Context. South Asian Journal of Management, Vol. 13,. P 13-23

Liker, J. (2003). The Toyota Way: 14 Principles. Retrieved on 20th July 2010 from http://www.1000ventures.com/business_guide/cs_efficiency_toyota_way_14principles.html

Walltsen, K. (1998). Diversity Pays Off in Big Sales for Toyota Dealership. Workforce, Vol. 77, September 1998.

ABSTRACT

The motor vehicle industry has got many companies which are very competitive. In this industry we have dominant companies such as General motors of United States, and Toyota Motors.

Toyota Motors Corporation is a Japanese company that has been doing very well in the motor vehicle industry. They have outperformed other established companies like general motors and Lang lover motors. Toyota Motors has been improving on its performance over the past targeting customers within Japan, America, and China. Toyota Motors has been applying different marketing strategies to attract its customers to Japan, America, and China. But the same strategies applied in America have worked in China.

Introduction

Toyota Motors is a Japanese company that produces both small and large vehicles. It has been performing very well over the past even outperforming dominant companies within the motor vehicle industry.

In addressing the United States market Toyota motors had spent more resources, than it does within Japan. This is so because in America there is stiff competition from well-established companies like general motors. Toyota has applied different marketing strategies in Japan like advertising its vehicles by use of magazines and television, while in America it has used celebrities and role models on top of television and magazine. Also Toyota has marketed it vehicles in Japan by identifying its market segments and serving them appropriately, while plotting an invasion sequence in targeting United States customers. To address the Japanese market Toyota Motors corporation has applied strategies like sourcing abroad and being customer oriented while applying different marketing strategies in America like forming of strategies alliances between major international companies in the united states to capture the Americans. Also Toyota Motor has lowered its prices to attract the American market.

MAIN BODY

Toyota motors is a Japanese company that is competing with other Automotive companies like General motors and Ford of united states, Volvo, Mercedes and Volkswagen of European and Nissan and Honda of Japanese within the automotive industry.

Automotive is a very competitive industry that requires competence, regular improvements and innovations. Toyota Motors Corporation has been struggling with the market for its motor vehicles in China. Toyota’s original approach was to market their motor vehicles in China in the same manner as they do in Japan. However, there has been a change in strategy. Toyota has decided to try the marketing approach used in the United States.

Toyota Motors has employed different marketing strategies in Japan and in the United States. Since Japan is the producer of Toyota vehicles it has to employ more intensive strategies when dealing with the United States, since in America we have very strong automotive companies like General motors and ford. Toyota Motors advertises its vehicles in Japan by use of magazine and Television. But in the United States Toyota motors advertises its vehicles by use of extra more efforts. Apart from using magazines and television in advertisements role models and celebrities are used in its advertisement. Toyota Motors has been creating awareness of the vehicles it produces to Americans by the use of role models and celebrities. In order for Toyota motors to outperform general motor, ford and other European countries within United States it has spent more money in the sales promotion.

Toyota has successfully sold its vehicles within Japan by discovering new market segments. Toyota has known the needs of various groups of people, and then it has produced the vehicles with the attributes and characteristics of those groups. Toyota Motors has produced various types of cars meeting the needs of the Japanese market, for example, sports cars and saloon cars have been produced serving Japanese market. Toyota Motors has plotted an invasion sequence in targeting the United States market. They first planned and gained a foothold in the American market, by first introducing small cars into the market. They later increased the number of cars, and then they introduced bigger cars and they eventually introduced luxury cars. Toyota motors used this as a launching pad for successive invasions. Toyota motors served the American market with all types of cars they demanded, and competing favorably with general motors. The Americans also came to realize that Japanese cars had a higher quality and they are economical in fuel consumption (Kotler P., 1989).

 Toyota Motors Corporation has been customer oriented in serving the Japanese market. They have served customers to their satisfaction. They ago ahead to asking what Japanese customer want, and what type of car they want, which features they prefer most in their cars. Therefore Toyota has promoted customers satisfaction within Japan. For Toyota to venture to the United States market it has formed strategic alliances between major international companies in the United States in order to capture the American market. For example Toyota formed strategic alliances with Ford Company that assisted it reach the American market with ease. By the formation of these alliances with American companies Toyota motors has been able to serve more customers (Kotler P., 1989).

For Toyota motors to serve the Japanese market properly it has been sourcing abroad. Some features like styling have been done abroad to meet the need of the Japanese market, most of their styling is done in Italy. Like wise for Toyota Motors to fulfill the requirements of the Americans it has been lowering the prices of its vehicles. Since Toyota Motors Corporation wants to serve all its customers within the United States it has lowered its prices, so that most Americans can afford to buy their vehicles. Through lowering their prices Toyota has increased its volume of sales. The market share of Toyota within American customers has been increasing (Kotler P., 1989).

Toyota Motors has also ensured that its customer satisfaction index is high and keeps rising within its Japanese customers. Toyota has also ensured that its service satisfaction index is also high within its Japanese customers, by ensuring that customer satisfaction index is high Toyota motors has been able to fulfill the demand of Japanese. By so doing it will be difficult for any other competitor to serve this market. Service satisfaction index is a good and preferable attribute to most customers, therefore by Toyota addressing this within the Japanese, it is serving them adequately. Toyota Motors has ventured the American market by addressing specific customers. Through specialization in services needed by specific customers Toyota motors has been able to serve the American market (Kotler P., 1989).

Toyota Motors Corporation has developed a better product line within Japan. Toyota motors has fulfilled the needs of its customers in Japan by developing a better product line by investing heavily in designing better small cars perfect in performance, quality styling features. To address the United States market Toyota Motors Corporation has been designing cars that meet the Americans standards. Toyota Motors has designed cars that recognize people of different income classes within America. Toyota has been able to capture the American market by producing vehicles meeting the needs of various classes of people within America. The rich people and middle class within America have been able to afford the vehicles produced by Toyota Motors Corporation.

In Japan Toyota Motors corporation has been using market structured sales force to promote its sales. Toyota Motors Corporation has a sales force that serves different market. Toyota Motors has been able to serve its customers well because it has a sales force that targets different markets within Japan. Toyota Motors Corporation has been improving its sales within united stated by offering its employees with a higher salary.  Toyota employees in America earn a higher salary than those doing similar job in Japan. It has been done like so, to motivate the sales team in America, to sell more vehicles and also counter the influence of established motor vehicle companies like general motors.

 Toyota motors give a 3 year warranties to its customers Japan. When customers are given warranties they believe the quality of the vehicles produce by Toyota Motors Corporation are of a superior quality. In addressing the America market Toyota motors has given them warranties and more other extra services. More sales promotion tools have been employed to address the American market. A free drive test is offered to customers in the United States by Toyota Motors that is aimed at stimulating buying within its customers.

The China market is more receptive to the strategies employed in the United States because Toyota motors has spent more resources to address the American market. In addressing the American market, all necessary important options have been exploited while dealing with Americans. If the same strategies are applied in china then Toyota motors will improve its sales.

By applying similar featured like those employed while addressing the united state in China, for example, the use of celebrities and role models, in their advertisements. Toyota motors will be able to attract the attention of the Chinese people. If other features like plotting an invasion sequence is applied while approaching the Chinese market as it was in the American market then Toyota motors will successfully sale its vehicles in china because this feature are addressing the real needs than one will be expecting within the automotive industry. The invasion sequence is likely to be appreciated in china because the most agent need is fulfilled before fulfilling other requirements (Kotler P., 1989).

Also the marketing strategy that is applied in United States can be applied in China because America has got people form all parts of the world. Since Toyota motors has fulfilled the needs of the people of United States then it can serve Chinese people without any problem.

Likewise for Toyota motors to serve American well, it has to compete favorably with market leaders within the automotive industry, like general motors. By competing successfully with American companies then similar strategies can be applied in becoming successful in china.

Conclusion

Toyota Motors has taken good marketing strategies that have enabled it to compete favorably within the automotive industry. To serve the Japanese, China and United States market, different marketing strategies have been successfully applied.

Recommendation

Toyota motors has applied good marketing strategies like plotting an invasion sequence, using celebrities in advertisement , lowering prices and specializing in some services in addressing the united states market. Similarly perfect market strategies have been applied to address the Japanese market like use of media to advertise, by discovering new market segments, being customer oriented and by outsourcing abroad. These are admirable marketing strategies that Toyota motors has applied in America, Japan and china and they should by applied globally to promote the sales of Toyota motors company.

REFERENCES

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Farquhar, P.H. (2004), “Managing br?nd equity”, Marketing Research, Vol. 1 pp.24-33.

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General Motor’s mission statement states that the corporation will provide “products and service of such quality that our customers will receive superior value” and mentions that employees, business partners and stock-holders will share in the success. GM shares are valued somewhere around two dollars a share, and it is widely known that without the government bailout, the big three auto makers are in serious trouble, and perhaps that is true even with the government bailout. GM’s labor costs are 22% higher than Toyota or Nissan.

GM’s production time per vehicle is a full five hours greater than Toyota, and non-skilled workers, assembly line workers, make on average five dollars more per hour with General Motors. According to nospeedbumps. com, health care costs of workers are taking an even greater toll on GM products and consumers. Each health care policy on a worker or member of management employed by GM adds about $1600 to each vehicle cost. With Toyota it is only $200. GM is about to be surpassed by Toyota as the largest car manufacturer in the world.

The unions have a strangle hold on General Motors, and even with the “no strings” attached bailout money from Congress, if approved, a mere twenty-five billion dollars among The Big Three Automakers, it is possible that many more jobs will be lost at GM as well as the other manufacturers. It is possible GM is headed for bankruptcy. Does GM provide superior value? 2 Part of the problem is GM’s job bank. Detnews. com states that many union workers who are not even working at plants still draw full wages.

12,000 workers for the Big Three are paid to sit around and not work. They show up and do nothing and draw on average $31 per hour. The United Auto Workers had this included in their latest contract, but as one economist states, “It’s just a huge albatross around [The Big Three’s] neck. ” I could not see myself working for such a socially irresponsible company. These jobs are likely to all go overseas anyway. It will be a huge burden on Michigan’s economy as well as a travesty for the rest of the United States, if this happens.

But in this time of huge billion dollar bailouts, do we, as a nation, want to bail out companies with no game plan for delivering superior goods and services. The bonus packages are immense, the CEO compensation is ridiculous, all as the American consumer suffers in a huge recession. Each CEO of the Big Three has been on Capitol Hill this week, and not one of them flew there on a commercial airline. All three of the CEO’s took private jets, totaling somewhere according to Fox News between 20 and 25 million dollars that taxpayers and stock-holders must afford.

In economic times as poor as these, that’s reprehensible. Financially the corporation is, as has been stated, in dire straits. GM is 84% off its 52 week high, and has become a speculative play for investing as close as it is to bankruptcy. The corporation is having a major contraction, worse than many of its counterparts on the Dow Jones Industrial Average with perhaps the notable exception of Citi Group. Citi Group, however, is one corporation receiving part of the 700 billion Does GM provide superior value?

3 dollar bailout already passed by Congress. The three year high for GM was at $45 per share according to msn. com, so this shows an even worse contraction, which has steadily driven the stock down to around $2 per share price. Profit margins are down over 21% for the one year period. EPS is off $38 while sales have not been that terrible. This imbalance indicates something is vastly wrong with this company. GM’s new advances in automotive engineering or products are kept tightly guarded.

Business Week claims the 18 new products of GM might keep it afloat. GM is designing new interiors, the business magazine did give away, and it speculated that these will be for smaller, yet roomy automobiles. GM may have finally gotten the global economic message of competition and the times we live in. I would not likely rush out and buy any new car just yet. Advances in technology are sure to take shape in the next couple of years, which 2010 incidentally, if not sooner, is when GM renegotiates it contract with the UAW.

If GM is still in play by then, the newer products might be a superior value, but to answer that question as to date: the answer is a resounding no. GM does not provide superior products or value. 4 Reference Page Job Banks Pay 12,000 workers [Electronic version]. Retrieved November 18, 2008 from http://www. nospeedbumps. com Health care adds to vehicle cost [Electronic version]. Retrieved November 18, 2008 from DETNews. com Microsoft (2008) Money Central Retrieved November 18, 2008 from http://www. msn. com Neil Cavuto. 2008, 11, 18. Fox News. New York, NY. Not Death Knell for GM. Business Week. 11(1). 32-35.

The `It` Car for Gen Y

Scion targets consumers under 30 with its slick design and full range of features. The pricing policy is also appealing to younger consumers as both Scion models, xA and xB, are sold at the base price well under $15,000 ($13,280 and $14,480 respectively for automatic transmission) (Moody, 2003). The fact that the advertised price is the same as offered at the dealership also helps young consumers to handle the buying process as they do not expect having to pay more than advertised.

Besides, knowing that young consumers do not like to be imposed upon and brainwashed into purchasing anything, the company created for them a low-key environment and simplified the purchasing process by assigning one manager to oversee the process from beginning to the end. In addition, to make even more innovations in the selling process, Toyota introduced online customization that enables computer-savvy youngsters to “build the car online” (Burke, 2004).

Acknowledging the buyer’s independence in decision-making is the strength of the Scion brand marketing that is especially attractive to younger consumers. Joe Jardina, Toyota brand manager at Gentile Automotive Group, says that in selling Scions, they take their visitors “to the discovery area, and then we pretty much leave ’em alone” (Burke, 2004). Trusting the consumer to make the right decision is an important feature that makes marketing targeted at ‘Generation Y’.

Aggressively targeting a specific age group certainly has its advantages and disadvantages. On the positive side, the brand is now associated with a distinct consumer group, giving ‘Generation Y’ a chance to distinguish themselves from the rest of the crowd and buy something that will further connect them with their age group. Besides, speaking of a younger group, such positioning has the advantage of creating brand loyalty to Toyota cars at an earlier age. These consumers may want to change to Toyota Camry or Corolla in their 30s and to Lexus if their income allows it in the later age.

However, on the negative side is the restriction it places on the target market. Since Scion appeals to youth, older consumers will not probably want to purchase such cars. On the contrary, they will stick to the old, conventional brands. Besides, the youth market is more volatile and subject to changes in fashion and poses difficulties to marketers and designers who have to be on the alert for changes.

The concept of societal marketing as defined by Philip Cotler holds that “the organisation’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors, in a way that preserves or enhances the consumer’s and the society’s well-being” (Webber, 2001). This concept adds more stakeholders to the organisational activities than just its managers or employees – consumers, society in general and other involved parties become an important focal point of business.

With Scion’s pricing, Toyota relieves dealers and buyers of a lot of stress that was associated with negotiating. Joe Jardina communicates that “people don’t enjoy the (negotiating) process – they hate it” and so do the dealers (Burke, 2004). By offering the same base price across dealership, Toyota helps dealers demonstrate fairness toward customers. Transparency of the pricing process is something that delivers the desired satisfaction to clients in this way fulfils the requirements of societal marketing.

Of great value for society is “low-key, no-pressure sales philosophy” that is adopted at this point by Scion dealers (Moody, 2003). This philosophy creates a more ethical relationship between clients and dealers, removing the look as if dealers are imposing on customers. Leaving consumers on their own to make decisions is also contributing to clearing the atmosphere of a lot of unnecessary pressure and in the end leaves the whole society better off because relationships between buyers and sellers have been improved.

Marketing Spotlight – Microsoft

Microsoft`s marketing approach for the Xbox 360 differs radically from the other products that were manufactured and distributed by the software company. Instead of taking it to the professional exhibition, the Electronic Entertainment Expo (E3), the Microsoft presented the platform directly to consumers. This created a frenzy of expectation for the new product and added steam to the marketing campaign with the direct approach to the consumer. This strategy targeted the market, allowing it to absorb the news long before the major competitors, Sony and Nintendo can present their new products.

The shift into viral marketing is also a new strategy that can be increasingly used by the company in the years to come. Building loyalty by offering exclusive access to the site Ourcolony.net, the company connects keen gamers to its offerings, creating an atmosphere of anticipation with teaser images long before the actual release.

The difference from the past rollouts lies in the strategy that allowed the company to “sidestep the industry shindig and talk directly to potential consumers” (McDonnell, Jackson, 2005). This bypasses the usual cycle that takes the product from hardware developers contributing to research and development to industry analysts at professional events and then to consumers. In this way, the typical 5-year cycle for game consoles is reduced as “the time the Xbox 360 hits U.S. shores, the original machine will have been out for only four years” (McDonnell, Jackson, 2005). Besides, the fact that consumers will have a say in building the console and game design is reshaping the industry is an important change in the company’s strategy. The rest remains similar to the previous rollout – Microsoft is doing presentations to industry professionals, partners, developers, and consumers, but this time they come in a different order.

However innovative and interesting Microsoft’s marketing might be, the company has had its share of flops in the 1980s and 1990s. Examples include Microsoft Bob, an interface that failed because its cartoony look seemed too childish to be marketed to adults; MSX and MSX-II revealed in 1983 aimed to integrate PCs with other electronic devices; Microsoft at Home (MAH)/Microsoft at Work (MAW) also designed to integrate computers with other office technology such as faxes and printers; Microsoft Home dropped in an effort to concentrate on Internet technology, and finally, Microsoft Actimates, “robotic toys, sold by Microsoft in conjunction with a radio-controlled interface and software games”  and abandoned after a weak marketing campaign (Dvorak, 2005). However, the story of MS Windows that has become a dominant operating system and success of MS Office and application software such a WordPerfect and Lotus 1-2-3 gives ground to think that the company has also had some sizzling marketing successes.

The risk inherent in the direct-to-consumer approach that creates future issues for Microsoft lies in the fact that it may shorten the life p of existing hardware and software. As the change continues to accelerate in IT business, technological firms see themselves faced with a merciless race toward success and suffer from consumers quickly abandoning the once-revered products. Although Microsoft with its strategy puts pressure on competitors to deliver goods to the market soon, it may risk consumers losing interest in its existing products long before the new console hits the market. The effect can be ruinous to both hardware and software sales and will be felt for a few months. Besides, the untimely revelation can create the enhanced risk of piracy that is already plaguing software sales in many countries.

One of the big positioning errors is the self-praise that presents the company as the leader in some industry. This sounds unnatural for relatively obscure companies that have not turned into household names, and will not make a major differentiation point.

Second, many companies make the mistake of using terminology they coined on their own to describe their product. This is not interesting to the consumers and can have them lost in details they do not understand.

Another mistake is the overly broad definition of the target market like “Everyone from the Fortune 500 to small businesses use our services” (Holland, 2004). Such positioning will leave clients reluctant to use generic product or services even if it accomplishes its goal.

Ricketts Heating and Air is at the moment concentrated on selling products (heating systems); however, it can go one step further in delivering value to the consumer and bundle this product with a service to support it. The service can be sold in conjunction with the product. The organisation can choose to deliver the service free of charge so that the price can be already factored in the price of the heating system; alternatively, it can offer clients to purchase the service in addition to the heating system.

Ricketts Heating and Air can supply support services to oversee the functioning of the systems. It can add to its menu of offerings the services of a professional technician who will go around homes to inspect heating systems. Alternatively, it can install an outside regulator for the heating system that will be turned on and off by the technician.

References

1. Burke, M. (2004). Scion marketing targets Gen Y drivers. Journal Times Online. Retrieved April 30, 2006, from http://www.journaltimes.com/articles/2004/10/18/local/iq_3161112.txt
2. Dvorak, J. C. (2002, May 27). Microsoft Megaflops, Abandonware, and the Xbox Hiccup.  Retrieved April 30, 2006, from http://www.pcmag.com/article2/0,4149,667,00.asp
3. Holland, A. (2004). The Big 3 Market Positioning Mistakes ; How to Avoid Them. Retrieved April 30, 2006, from http://www.marketingsherpa.com/sample.cfm?contentID=2563
4. Moody, B. (2003, March 31). First Drive: 2004 Scion xA and xB: Official Cars of the TRL Generation. Retrieved April 30, 2006, from http://www.edmunds.com/apps/vdpcontainers/do/vdp/articleId=96284/pageNumber=1?synpartner=edmunds;pageurl=www.edmunds.com/new/2005/scion/xb/100394908/roadtestarticle.html;articleId=96284;tid=edmunds.e.roadtests.content…Scion
5. McDonnell, F. ; Jackson, P. (2005, May 13). Commentary: Microsoft’s Xbox 360 spin. CNET News.com. Retrieved April 30, 2006, from http://news.com.com/Commentary+Microsofts+Xbox+360+spin/2030-1069_3-5706144.html
6. Webber, S. (2001). Definitions of Marketing. Retrieved April 30, 2006, from http://dis.shef.ac.uk/sheila/marketing/definition.htm

Toyota: A Glimpse of Leadership, Organizational Behavior, and Organizational Structure Courtney Berry Organizational behavior is the study of application of individuals’ behaviors within structured groups within an organization (Robbins & Judge, 2007). The field of study identifies behaviors within specific groups and individuals in organizations and how the structures of organizations play a role in behaviors (Robbins & Judge, 2007). In the past several months, the leading company in the car industry has been experiencing a quality control and consumer product safety issue.

Toyota is not only encountering a quality control issue but also a senior management crisis issue. The corporate leadership team of Toyota did not recognize the importance of addressing the consumer safety issue with the sticking accelerator and not to mention the huge public relations blunder that came with it. Does this failure to address a quality control issue and a real senior management public relations issue have anything to do with Toyota’s leadership, organizational behavior, and organizational structure? Leadership, organizational behavior, and organization structure

Toyota’s thought on leadership is to empower employees and develop their people. If the employee has not learned a specific task, the leader has not done a good job (Womack & Shook, 2007). Plan, Do, Check, and Action (PDCA) Cycle is something that Toyota implements (Womack & Shook, 2007). This cycle engages employees to question products and processes and implement new action. Senior leadership is also expected to perform this. In fact, senior leadership regularly makes visits to the plant floors to engage with people and help with processes.

This type of leadership employs mutual adjustment and interaction from both the employees and leadership. Leadership has much to do with behaviors within an organization. Organizational behavior looks at behaviors on an individual, group, and organizational level and how the levels are interelated. According to Henry Mintzberg, organizational behaviors can be grouped into three primary categories: interpersonal, informational, and decisional (Robbins & Judge, 2003). These behaviors are found at the managerial role but play an mportant and predictive role at determining the behaviors of an organization and its structure. When Toyota led the way in the car industry the organization was firing on all cylinders in their organizational behavior. At the individual level, job satisfaction empowers the employees to make decisions on the line and create effcient processes that lead to high production. At the group level, communication and decisions are made across multiple teams and employees to engineer the highest level of product leadership (Womack & Shook, 2007).

The organizational level mirrors the individual and group level that creates a culture of pride within Toyota. This organizational pride creates a culture of employees with a belief that Toyota engineers the best products. Organizational structure is the backbone to the strategy of an organization. It helps carry out new strategies by differing structure designs and parameters in which individuals and groups communicate within organizations (Mintzber, Lampel, Quinn, & Ghoshal, 2003). The car industry typically mirrors the machine organizational structure.

The work is highly standardized and is designed to run by a large technostructure to formalize behaviors and actions (Mintzber, et al, 2003). The structure of this design typically limits power at the operator level. This type of horizontal structure ends up not engaging the people at the organization and does not benefit the customer as a whole (Mitzber, et al, 2003). Toyota, while a machine organization, does not place value vertically and rather creates power horizontally. The organization has a history of empowering their operators with knowledge and career paths. Toyota is noted for this.

Conclusion Toyota’s leadership and organizational structure does not predicate the failure for senior management to fail to address a quality control and product issue as well as a public relations issue. The organization’s role of interpersonal communication and decisions made both vertically and horizontally within its structure would lend to fix a problem and engineer the best product. All employees are empowered to ask why an accelerator should be engineered with a certain spec and require certain raw materials. The leadership and structure creat high quality product processes.

The organizational behavior could have explained the blunder on senior management to fail to address a quality control issue based on the culture. According to Benjamin Heineman, Toyota’s culture of, “We did it right, the problem is small, the critics are wrong” (paragraph 5, 2010). Toyota’s culture and pride of engineering the best could have predicted this public relations blunder that has striped consumer confidence and may lead to a business failure or a chief executive officer stepping down. References Heineman, B. W. (2010). Flunking Crisis Management 101. The Washington Post.

Retrieved from http://views. washingtonpost. com/leadership/panelists/2010/02/crisis-management-recall. html Mintzberg, H. , Lampel, J. , Quinn, J. B. , & Ghoshal, S. (2003). The strategy process: Concepts, contexts, cases (4th ed. ). Upper Saddle River, NJ: Prentice Hall. Robbins, S. P. , & Judge, T. A. (2007). Organizational behavior (12th ed. ). Upper Saddle River, NJ: Pearson Education. Womack, J. P. & Shook, J.. (2007, October). Lean Management and the Role of Lean Leadership [PowerPoint slides]. Retrieved from http://www. lean. org/images/october_webinar_project_slides. PDF.