In marketing for the product, companies need to understand the best strategy to acquire a bigger market share and maintaining the sales in the face of competition in the market. These marketing strategies apply four basic marketing principles whose components include, product, price, promotion and place which are commonly known as 4Ps and they influence the success of any firm in the market. To expound on the application of these principles, I will focus on Toyota Company which deals with automobile production and distribute them across the globe.
The main line of business
This company has expanded exponentially over years to become the world's largest automobile and the major line of business for this firm is the mass-production of automobiles of different kinds to cater for customers' needs across the world and consumers of these products are all over the world. The firm achieves this by establishing factories in all continents to make manufacturing and distribution easy and convenient to the clients (Toma & Naruo, 2017).
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Countries which the company operates,
Toyota corporation application of the 4Ps marketing mix strategy has resulted in its success in the delivering of the customer-tailored product across the globe efficiently and effectively. So the firms are found in countries like Kenya, England, China, Italy and others in the world.
Target market
This company has penetrated market across the globe, but the major potential market is in the developing counties such as Africa and Southeast Asia where disposable income is on the rise.
Competition and Product strategy
Toyota success has been contributed by its effectiveness in formulating an executing its marketing mix concept by dealing with a variety of product mixes such as Toyota automobiles which is the major product, Lexus automobiles, Marine products, Welcab series, spare parts, engines and other accessories. This diverse product mix helps the company to reach a wider market section and also reduces market-based risks as a result of competition.
Distribution and place strategy
Toyota products are distributed through dealership method where dealers are the major distributors of the products and are located in various parts of the globe and they determine the places where the customers can access these products. However, retailers also play a vital role in the sale of its products such as accessories and spare parts to the target markets. Therefore, the main kind of distribution that Toyota relies on is dealership that helps in serving the diverse world market
Communication strategy
Toyota promotion mix incorporates all kinds of marketing and communications depending on the target market and significance. This promotional mix includes the following methods; personal selling which is mainly achieved through dealership. The sales personnel to promote their product to the potential customers in the market (Toma & Naruo, 2017). Advertising is another method the firm uses to promote its products through different media such as Televisions, websites among others. Additionally, public relations is another method that has boosted the promotion of these products where the firm sponsors and supports various programs. An example of these programs is Meal per Hour Program which mainly gives food support through food banks, an act that create a good image for Toyota brands.
Pricing strategy
Pricing strategy for Toyota Company varies depending on factors such as product's type, line and also a model that determine how the prices are set in different places. The firm a combination of market-oriented and value-based pricing to achieve its pricing and sales objectives (Toma & Naruo, 2017). The market-oriented strategy is used depending on the prevailing market conditions and also the prices of their close competitors, and it is the major method of pricing. In addition, the value-based strategy is to set prices of products based on their perceived and actual values, and it is used in the pricing of more expensive brands such as Lexus cars among others.
Differences in implementation of the concepts,
Toyota has achieved this success by applying its marketing principles in different places depending on customers' needs. For instance, different pricing on its product and distribution has been achieved by understanding the needs of different markets and potential customers. Conversely, Toyota firm uses different market mix for different countries depending on the pricing strategy adopted. For instance, it may use value-based to set prices in England and Italy while applying market-oriented pricing in Kenya due to their different purchasing power. In China, the blend of the two strategies applies since the majority can afford expensive products.
References
Toma, S. G., & Naruo, S. (2017). Total quality management and business excellence: the best practices at Toyota Motor Corporation. Amfiteatru Economic Journal , 19 (45), 566-580.
