The Marketing Systems for Toyota Prius - Case Study Example

Running Header: Case Study about Toyota Prius Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission: Table of contents Introduction …………………………………………………………………….………..3 Marketing system…………………………………………………………………………3 Toyota Company description…………………………………………………………….5 Laytons marketing system……………………………………………….………………6 Conclusion……………………………………………………………………………….10 References ……………………………………………………………………..………..11 Introduction Business survival depends on the marketing strategy used by the company. Toyota Prius has been a model of choice to many car owners. New car models have been introduced in the market; but for Toyota Prius, it has been a success. This leads to the analysis of the marketing systems used to market this particular product. This report will also analyze broadly the marketing systems and their importance to business environment today and in future. This report will also focus on the link between the marketing systems and the growth strategies of the Toyota Company. A marketing plan is an essential aspect of a company; it should be based on accurate decision making and must be consumer oriented; because clients are the most important in any kind of business. This report also analyses the marketing systems for the Toyota Prius manufactured by Toyota Company. Marketing systems Marketing systems are any orderly process which enables the market players to make bids; marketing systems help buyers and sellers to interact freely and come up with business deals. The marketing system comprises of various mechanisms; price, qualifications, good reputation as well as clearing (Eric 2011, p.100). A market system basically relies on assuming that all concerned players are involved and that they are not equally enabled. A market system depends on markets to make allocation of available resources and to make the determination of the prices. There is an increase in specialization in the whole world; this makes marketing systems a must in business environment, this also makes the link between buyers and sellers to become dense. Specialization within markets is very crucial in increasing returns, this further leads to proper structuring and functioning of marketing systems. A good example is the case of the Toyota Prius whereby, its unique design for motor vehicle; this is good strategy to offer a market for the Toyota products. Agents of marketing systems are mainly heightened by improvements in technology, institutional development as well as the infrastructure development (Roger 2009, p.358). It is also worth noting that producer and the consumer or the agents of change participate in more than one marketing system at a given time; this depends mainly on the stipulation of the marketing system(s).Sometimes the marketing systems have economic independence as national policies, they are structured or they have a sense of purpose; they also have a major social function of providing categories serving the needs and the interests of the agents i.e. Buyers and sellers forming the system. Marketing relies on the long and short term strategies of a company. Company that has a proper marketing strategy and follows a right marketing system in place for example the Toyota Company’s marketing strategy on manufacturing and distributing its new model of Toyota Prius. As indicated by Wiclif (2010, p. 563), marketing systems varies with the product. Within the systems that are multilayered, categorization usually arises in the various layers. The perception of a marketing system mainly depends on its location in the marketing system, this may lead into disagreement which has an effect on additional of products and services or even on changes in the opening of new links within or I the existing marketing systems, the ending of the old links as well as innovations of major and minor products. The degree of disagreements that is experienced by marketing systems is considered the most crucial agent for change in a marketing system. The elements are all interrelated thus contributing to the structuring and the normal functioning of the marketing system. Marketing systems are very crucial in the running of a business as it enhances the direct link of the bidder and the seller (Roger 2006, p. 385). An adept and broad plan used for marketing is the centre idea in the marketing systems in all the endeavors of a company; this gives a proper explanation of how a company keeps and holds the clients as this is the most crucial part when conducting business. This is the main reason as to why marketing systems must be part of the modern business environment. It is clear that any company in operation has its main idea of making profits and maintaining its client base; making it crucial for realization of a good and proper marketing system and strategies so as to position a company in the right place of serving the clients while maximizing the profits. For any expanding company a marketing plan is very important (Sam 2011). Marketing system is the core of a company, and when initiated properly it is a guarantee for achievement of success. There are many different benefits taken from developing a good marketing plan such as the recognition of the desires for various consumers. Marketing system also make clarification of the needs for a product for example the Toyota Prius from the Toyota Company. The other most important benefit of a marketing system is that it offers rivals distinguishing factor as it evaluates the company’s reasonable growth. This is a reason why marketing strategy and systems should be integrated into businesses (Talvinen 1995, p. 20). Toyota Company description Toyota Company one of the multinational automakers; with very many car models. It was founded in 1937. The company employs about 317, 734 employees in various countries. It is a manufacturer of cars, trucks and hybrids. Automobiles are distributed all over the world. Toyota Company has embraced expression of values and guidelines to be followed by all employees; this is to enhance the reputation and for general well being of the company. The company’s values are very important in its marketability. The values were founded under two categories i.e. respect for people and continuous improvement. This is accompanied by the following five major principles: the principle of challenge, improvement, the go and see principle, respect and team work. The success of the company is attributed to its long term-term ideas which are a basis for management and decision making, problem solving processes, the addition of values to the company by ensuring that its people are developed and making a recognition that making a continuous problem solving is a major driving force for organizational learning (Toyota 2011). The company is faced by various external factors including rise in competition in the automobile industry. Toyota Company is very keen in assessing its competitors; to make sure that it has a quick reaction in a manner that it will emerge the leader of the market. The marketing system model Pp Fig 1.Marketing system model The above model shows then relationship among various stages in the development of a service or a product within a company. These factors are interrelated and interconnected such that, change in one factor is likely to affect all other factors. To begin with labour specialization is the stage whereby labor is shared according to the divisions within the company. For example in the Toyota Company, labor is divided according to the expertise of the employees; this is crucial in making sure that the product is of high quality as the whole process is carried out by skilled people. The division of labour not only depends on the degree of the market but also on the degree of how the division of labour occurs. This factor has a direct link with the institutions and the technological advancement within the Toyota Company. Technology is a special marketing strategy to this company; the speed in which technology is moving at requires decision making which is timely. This is evident in the new model of the Toyota Prius. Its design is modern and environmental friendly. This links with the marketing systems of the company; making the product unique. All this factors linked with social context forms a base for appropriate marketing strategy, finally linking with growth and improvement in quality of life (Gary 2007, p.236). Marketing systems are known to increase the sales of a company as well as raising the revenues of the company. This enhances development of the company by ensuring that the customers are supplied with quality products such as the Toyota Prius; thus keeping their needs satisfied. When a client lives a comfortable life, there is growth and the quality of life is also improved. Trade is not a free entity; it involves various costs involved in the transaction process plus with the rise in the specialization or the divisions of labor and the two must be met. This is the key Issue in the marketing systems to ensure that the transactional costs are met for a better growth. Marketing systems encourage rational individuals to make specialization in the production as well as in trade especially when they are confronted with technologies in the production process. This increases returns. It is also clear that growth or development is determined by the proper marketing system put in place (Philip, Margaret & Ronald 2001, p. 663). Toyota Company as one of the leading companies the manufacturing of automobiles has for a long time maintained its production and introduction of new car models. Its success can be attributed to the marketing plan and strategies it puts in place. The three aspects of the Toyota’s corporate strategy that influences its marketing plan include the mission of the company to achieve very stable and long term growth; this is mainly dependent on the environment, the global economy, local and international communities served as well as the internal stakeholders. Toyota Company offers hybrid alternatives for every model that is in the market. This enables the company to make a huge sale of hybrid vehicles. Toyota Company has a network of experts involved in research and development, to keep the company on top in delivery of products and services. Technology is the key to production of quality products (David, Mackenzie & Kim 2009, p. 345). Toyota’s marketing system comprises of elements such as: The product strategy of producing its products in mass, to enable it sell widely in the global market. This strategy also involves the production of hybrid products; doubling production amount to meet the demands of the market. The pricing strategy has enhanced good reputation for the company as high quality vehicles produced are all sold at reasonable prices all over the world. Being a world supplier and producer of vehicles and their components, Toyota Company has placed itself all over the world, thus giving itself a strong mark within the market. The company is focused at achieving almost 35% of the total market share which will make it the best automobile suppliers in the whole world (Satoshi 2006, p.241). Toyota Automobiles and parts can be bought online; this a marketing system which ensures that clients can get access to Toyota parts regardless of their locality. This saves time and money and therefore, increasing the market of Toyota products and services all over the world. Online shopping is on of the main marketing strategy that has been put in place today by many companies unlike the traditional marketing mix, it reaches a larger market due to technology advancement. When compared to the traditional marketing mix, it is more effective. Toyota Company has for a very long time been manufacturing automobiles and important products; these products are not expensive and they are readily available. This is one significant factor that has enabled the company to have a huge cut in the market as it is able to market itself through quality products such as the Toyota Prius among other brands. Toyota Prius for example is a symbol of environmentally responsible driving; this makes the consumers to continually be willing to purchase it as they feel that they are part of the company in protecting the environment. The core principle behind the Toyota Prius is that the car requires less gasoline to run thus making it cheaper, the more the car is driven the more it saves as the car delivers a significant increase in gas mileage. It is evident that due to the proper marketing plan by the Toyota Company there are increased sales all over the world. Moreover, the quality of its automobiles is an added advantage to the marketing of the company as well as maintaining the client’s loyalty, forming a concrete consumer base and earning itself good reputation. Reputation is itself a marketing tool for a company (Yanging & Philip 1997, p. 153). Marketing strategies such as production of high quality products, fair pricing, advertisement and availability of the products enhances growth of a company as these are like incentives to the consumer apart from acting as marketing strategies for the company. Conclusion Marketing systems has been put in place for over along period of time. Though different companies use different marketing systems, it is quite clear from the observations made that a company’s well survival, there must be a proper marketing strategy and plans. The role played by the marketing managers within an organization is very crucial especially in marketing new products. There is a great importance on ensuring that a company adopts a strategy that is competitive so as to out do the rest; this so because the market has diversified and competition has continued to rise all over the world. In this case the Toyota Company has risen above all in manufacturing a unique Toyota Prius. But without the right marketing system and plans, it is a hard task to make clients aware of the new product. Marketing systems have also been seen to improve lives and promote growth (John 2007). Economic growth entirely depend on marketing systems, therefore, it should be taken seriously. The choices of the policies affect the effectiveness of the marketing systems, leading to the need for consultative policy within a company; this is in order to ensure proper functioning of a market strategy. It is due to the importance of marketing systems that companies must implement and engage functional and relevant marketing system for growth as well as economic sustainability. Marketing systems should be unique and integrated in the marketing policies as well as the development policies of a company. Marketing plans contribute too much to the growth and development of a company. Toyota Prius marketing system has made this car brand a success all over the world. References David, L, Mackenzie & Kim, S 2009, Contemporary marketing, Cengage Learning, United Kingdom. Eric, S 2011, ‘marketing myths and marketing realities: A commentary on the consumer as voter , judge and jury’, Journal Macromarketing, vol.31, no 1, pp. 100-104. Gary, A , Gary, A & Philip, K 2007, Marketing: An introduction, Pearson Prentice Hall, Canada. John, T 2007, The Toyota branding system, viewed 23 April 2011, http://www.industryweek.com/articles/the_toyota_branding_system_13433.aspx Philip, K, Margaret, H & Ronald, E 2001, Marketing management, Pearson Education, Canada Roger, A L 2009, ‘Marketing systems and the quality of life’, Journal of Macromarketing, vol. 29, pp. 349-362. Roger, A L 2010, ‘Marketing systems- a core macromarketing concept’, Journal of Macromarketing, vol. 30, pp. 375-383. Satoshi, H 2006, Inside the mind of Toyota: Management principles for enduring growth, Productivity Press. Sam, N 2011, ‘The different advantages of marketing systems’, viewed 23 April 2011, Read More