Marketing Mix Strategies

1. Marketing Mix Strategies
University ofColombo
InstituteofHumanRecourseAdvancement
Group Assignment
1

2. DEDICATION
It is with our deepest gratitude and warmest affection that we dedicate this
assignment to
Mrs. ……………………….
who has been a constant source of knowledge and inspiration and we learned,
how to be a professional maketer with positive attitudes through you.
ABSTRACT
2

3. This assignment will help to find out, how we need to operate the
business by utilizing the marketing mix strategies. Also, we need to change our strategies in
time to time to meet the market conditions and the customers’ need.
We have selected a reputed vehicle manufacture of Toyota for our assignment. The brand
name “Toyota” is very popular in Sri Lanka since Toyota belongs more than 75% of vehicle
market in Sri Lanka. In addition to that in our country, there has several third party imports
who have connection with Japan.
Considering the above facts, Toyota has a good relationship and customer care with us to
operate their business in large scale. Toyota continues to take on various challenges toward
the realization of the Toyota Global Vision. Toward a society where mobility means safety,
efficiency and freedom. Toward a net positive society going beyond zero environmental
impact.
Toyota has continued unrelentingly to face challenges with its founding principles of
“Contributing to society by making automobiles.” With the business environment greatly
Changing and the technological progress further accelerating, they will continue to provide
a new value of mobility meaning safety, efficiency, and freedom for everyone by merging
all of accumulated technological power with state-of-the-art technologies.
Using Artificial Intelligence (AI) technology applied to automated driving, Toyota will
establish a teammate relationship between people and cars. Using connected technology
will enable a variety of customers to drive cars safely, confidently and happily. Toyota is
actively addressing open innovation as well as in-house research and development to
contribute to a more affluent society where everyone can live safely and freely with peace
of mind.
INTRODUCTION
3

4. The marketing mix is the set of controllable, tactical marketing tools that a company uses to
produce a desired response from its target market. It consists of everything that a company
can do to influence demand from customers for its product. It is also a tool to help marketing
planning and execution.
An effective marketing strategy combines the 4 Ps of the marketing mix. It is designed to
meet the company’s marketing objectives by providing its customers with value. The 4 Ps of
the marketing mix are related, and combine to establish the product’s position within its
target markets.
The marketing mix definition is simple. It is about putting the right product or a combination
thereof in the place, at the right time, and at the right price. The difficult part is doing this
well, as you need to know every aspect of your business plan.
The Marketing Mix
The marketing mix is one of the most famous marketing terms. The marketing mix is the
tactical or operational part of a marketing plan. The marketing mix is called the 4Ps and the
7Ps. The 4Ps are price, place, product and promotion. The service marketing mix is called the
7Ps and includes the addition of process, people and physical evidence.
Product
4

5. The Product should fit the task consumers want it for, it should work and it should be what
the consumers are expecting to get.
Product is an item that is built or produced to satisfy the needs of a certain group of people.
The product can be intangible or tangible as it can be in the form of services or goods. We
must ensure to have the right type of product that is in demand for the market.
During the product development phase, the marketer must do an extensive research on the
life cycle of the product that they are creating. A product has a certain life cycle that includes
the growth phase, the maturity phase, and the sales decline phase. It is important for
marketers to reinvent their products to stimulate more demand once it reaches the sales
decline phase.
Marketers must also create the right product mix. It may be wise to expand current product
mix by diversifying and increasing the depth of product line.
All in all, marketers must ask themselves the question “what can I do to offer a better
product to this group of people than my competitors”.
Place
The product should be available from where the target
consumer finds it easiest to shop. This may be High Street,
Mail Order or the more current option via e-commerce or an
online shop. Placement or distribution is a very important part of the product mix definition.
We have to position and distribute the product in a place that is accessible to potential buyers.
This comes with a deep understanding of the target market. Understand them inside out and
marketers will discover the most efficient
positioning and distribution channels that directly
speak with the market.
Price
5

6. The Product should always be seen as representing good value for money. This does not
necessarily mean it should be the cheapest available; one of the main tenets of the marketing
concept is that customers are usually happy to pay a little more for something that works
really well for them.
The price of the product is basically the amount that a customer pays for to enjoy it. Price is a
very important component of the marketing mix definition. It is also a very important
component of a marketing plan as it determines the firm’s profit and survival. Adjusting the
price of the product has a big impact on the entire marketing strategy as well as greatly
affecting the sales and demand of the product.
Pricing always help shape the perception of the product in consumers eyes. Always
remember that a low price usually means an inferior good in the consumers’ eyes as they
compare the good to a competitor.
Promotion
Advertising, PR, Sales Promotion,
Personal Selling and, in more recent
times, Social Media are all key
communication tools for an organization.
These tools should be used to put across the organization’s message to the correct audiences
in the manner they would most like to hear, whether it be informative or appealing to their
emotions.
Promotion is a very important component of marketing as it can boost brand recognition and
sales. Advertising typically covers communication methods that are paid for like television
advertisements, radio commercials, print media, and internet advertisements. In
contemporary times, there seems to be a shift in focus offline to the online world.
6

7. Public relations, on the other hand, are communications that are typically not paid for. This
includes press releases, exhibitions, sponsorship deals, seminars, conferences, and events.
Word of mouth is also a type of product promotion. Word of mouth is an informal
communication about the benefits of the product by satisfied customers and ordinary
individuals. It is important to not take this literally. Word of mouth can also circulate on the
internet. Harnessed effectively and it has the potential to be one of the most valuable assets
we have in boosting the profits online. An extremely good example of this is online social
media and managing a firm’s online social media presence.
In the late 70’s it was widely acknowledged by Marketers that the Marketing Mix should be
updated. This led to the creation of the Extended Marketing Mix in 1981 by Booms & Bitner
which added 3 new elements to the 4 P’s Principle. This now allowed the extended Marketing
Mix to include products that are services and not just physical things.
People
All companies are reliant on the people who run
them from front line Sales staff to the Managing
Director. Having the right people is essential
because they are as much a part of the business
offering as the products/services we are offering.
Of both target market and people directly related
to the business. Thorough research is important to
discover whether there are enough people in target market that is in demand for certain types
of products and services.
The company’s employees are important in marketing because they are the ones who deliver
the service. It is important to hire and train the right people to deliver superior service to the
clients, whether they run a support desk, customer service, copywriters, programmers…etc.
7

8. When a business finds people who genuinely believe in the products or services that the
particular business creates, it’s is highly likely that the employees will perform the best they
can.
Processes
The delivery of the service is usually done with the customer
present so how the service is delivered is once again part of
what the consumer is paying for.
The systems and processes of the organization affect the
execution of the service. So, we have to make sure that you
have a well-tailored process in place to minimize costs.It could be the entire sales funnel, a
pay system, distribution system and other systematic procedures and steps to ensure a
working business that is running effectively.Tweaking and enhancements can come later to
“tighten up” a business to minimize costs and maximize profits.
Physical Evidence
Almost all services include some physical elements
even if the bulk of what the consumer is paying for
is intangible.
For an example, a hair salon would provide their
client with a completed hairdo and an insurance company would give their customers some
form of printed material. Even if the material is not physically printed (in the case of PDF’s)
they are still receiving a “physical product” by this definition.The systems and processes of
the organization affect the execution of the service. So, we have to make sure that we have a
well-tailored process in place to minimize costs.It could be the entire sales funnel, a pay
system, distribution system and other systematic procedures and steps to ensure a working
business that is running effectively.
How to Implement the Marketing Mix for a Target Market
Though in place since the 1980’s the 7 P’s are still widely taught due to their fundamental
logic being sound in the marketing environment and marketers abilities to adapt the
8

9. Marketing Mix to include changes in communications such as social media, updates in the
places which you can sell a product/service or customers expectations in a constantly
changing commercial environment.
According to above 7 P’s, we need to organize the business operations and marketing
strategies accordance with the marketing mix. We need to maintain a goodwill reading our
products in the market to build up a good relationship with the customers. It is a very
important task, we need to satisfy the customers through our products and to motivate them
through our customer service to visit our products again.
We have summarized the above discussion with additional details as follows,
Next section, we like to evaluate, how a company implement the marketing mix strategies for
their business activities. So, we have selected a reputed vehicle manufacturing company
named “Toyota” to analyze the same.
History of Toyota
9

10. Kiichiro Toyoda was the founder of Toyota Motor Corporation and the automotive centered
Toyota Group. Kiichiro used the spirit of invention and the business base inherited from his
father Sakichi Toyoda to expand into the automotive business and build the foundation of
today's Toyota Group. To understand the spirit of Toyota Motor Corporation’s foundation,
therefore, it is necessary to go back to the ideas of Kiichiro, the company’s founder, and
Sakichi, his father, and to trace the path of business prior to automobiles.
Kiichiro Toyoda
1867 Birth of Sakichi Toyoda.
1924 Sakichi Toyoda invents Toyoda Model G Automatic Loom.
1929 Automatic-loom patent is sold to a British company.
1930 Kiichiro Toyoda begins research on small gasoline-powered engine.
1933 Automobile Department is established at Toyoda Automatic Loom
Works, Ltd.
1935 The Toyoda precepts are compiled.
1936 The AA Sedan is completed.
1937 Toyota Motor Co., Ltd. is established.
10

11. 1938 Honsha Plant begins production
1950 Company faces a financial crisis; Toyota Motor Sales Co., Ltd. is established.
1951 Suggestion System begins.
1955 The Toyopet Crown, Toyopet Master and Crown Deluxe are launched.
1957 The first prototypes of the Crown are exported to the United States; Toyota
Motor Sales U.S.A., Inc. is established.
1959 Motomachi Plant begins production.
1962 Joint Declaration of Labor and Management is signed.
1965 Toyota wins the Deming Application Prize for quality control.
1966 The Corolla is launched; business partnership with Hino Motors Ltd. begins.
1967 Business partnership with Daihatsu Motor Co., Ltd. begins.
1974 Toyota Foundation is established.
1975 The prefabricated housing business begins.
1982 Toyota Motor Co., Ltd. and Toyota Motor Sales Co., Ltd. are merged into
Toyota Motor Corporation.
1984 Joint venture with General Motors (New United Motor Manufacturing, Inc.)
begins production in the USA.
1988 Toyota Motor Manufacturing, USA, Inc. (present TMMK) begins production.
1989 The Lexus brand is launched in the USA.
1992 Toyota Motor Manufacturing (United Kingdom) Ltd. begins production.
1997 The Prius is launched as the world's first mass-produced hybrid car.
1999 Cumulative domestic production reaches 100 million vehicles.
2000 Sichuan Toyota Motor Co., Ltd. begins production in China.
2001 Toyota Motor Manufacturing France S.A.S. begins production in France.
2002 Toyota enters Formula One World Championship; Tianjin Toyota Motor Co.,
Ltd. begins production in China.
2004 The Toyota Partner Robot is publicly unveiled.
2005 The Lexus brand is introduced in Japan.
2008 Worldwide Prius sales top 1 million mark.
2010 Worldwide Prius sales top 2 million mark; Toyota and Tesla Motors agree on
joint EV development.
2011 - 2017 Worldwide Hybrid Vehicle sales top. Toyota Motor Manufacturing,
Mississippi, Inc. begins production in the USA.
11

12. Toyota Global Vision
Toyota will lead the way to the future of mobility, enriching lives around the world with the
safest and most responsible ways of moving people.
Through our commitment to quality, constant innovation and respect for the planet, we aim to
exceed expectations and be rewarded with a smile.
We will meet our challenging goals by engaging the talent and passion of people, who
believe there is always a better way.
12

13. Marketing Mix of Toyota
Toyota Motor Corporation’s marketing mix (4Ps) reflects the firm’s strategies for interacting
with its target market. As one of the leading firms in the global automotive industry, Toyota’s
target market is diverse in terms of consumer preferences and regional and local market
conditions. As such, the company’s marketing mix is tailored to address these variations.
Founded in 1937, Toyota has grown from a local business to a leading global player in the
automotive industry. The firm now has operations in all regional markets, except Mongolia
and some parts of the Middle East and Africa. Toyota’s continuing global success highlights
the firm’s effectiveness in developing and implementing its marketing mix.
Toyota has around 51 manufacturing units in 26 nations across the world. Their innovative
hybrid and environmental technology has made it the leader of the automotive industry.
Toyota is trying to develop fuel cell technology, which will be incorporated in its future
vehicles. It has dealerships all around the world and sells an array of vehicles like SUV’s,
cars, hybrids and trucks. Their brand is associated with durability, quality, sustainability,
safety, innovation and reliability.
Main Products in the Marketing mix of Toyota
13

14. Product
Toyota has a diverse set of products. This element of the marketing mix identifies
organizational outputs for the target customers. The following are the product lines in
Toyota’s product mix:
• Toyota automobiles
• Lexus automobiles
• Welcab series
• Marine products
• Spare parts and accessories
• Engines
Toyota provides their customers with both tangible and intangible products ranging from cars
to warranties. A product of high quality is usually self-marketed, and this is what makes
Toyota vehicles so desirable. They have nineteen car models, which are further broken down
into different categories.
Passenger - Comprising of small, medium size, and large vehicles. Aurion, Yaris,
Camry, Tarago, Corolla and Rukus
SUVs & 4WD - Kluger, Rav4, Parado and Landcruiser 200
14

15. Hybrid - Prius,Aqua,Camry,Axio
Commercial - Hiace, Coaster, Land cruiser 70 and Hilux.
Toyota automobiles are the most popular in this product mix. Lexus automobiles are luxury
products from the company. On the other hand, the Welcab series are Toyota automobiles
modified for the elderly and people with disabilities. The company also manufactures yachts,
engines, and spare parts and accessories for automobiles and marine products. This part of the
marketing mix shows that Toyota reaches a wider market and reduces market-based risks
through a diverse product mix.
Place
Toyota always keeps its customer first and knows the importance of making its product
available to the target audience. They sell their vehicles through dealerships and sales are
made to costumers by the selling staff on one to one basis.
Dealerships are Toyota’s main places for distributing its products. This element of the
marketing mix determines the venues where customers can access the firm’s products.
The sales staff in all these dealerships works together in teams of seven or eight similar to
their teams in the assembly plants. The staff is highly skilled with not only sales but also
product information, data collection, finance insurance and order taking. The following are
the main places in Toyota’s distribution strategy:
• Dealerships
• Retailers
Toyota dealerships are where most sales transactions occur. However, some retailers like auto
supply stores also sell the company’s products, such as spare parts and accessories. This part
of the marketing mix shows that Toyota relies heavily on dealerships to sell its products to
the target market.
Promotion
Toyota uses different promotional strategies to increase their sales volume. Toyota’s
promotion strategy covers all the tactics of marketing communications. This element of the
15

16. marketing mix pertains to how the firm communicates with the target market. Toyota uses the
following promotion activities, arranged according to significance:
• Personal selling
• Advertising
• Public relations
• Sales promotion
• Direct selling
Toyota uses personal selling through dealerships’ sales personnel, who personally promote
products to potential buyers.
The company also uses advertising on various media, such as TV, newspapers, and websites.
In addition, the firm promotes its products through public relations, such as the Toyota
Together Green program that supports environmental initiatives, and the Meal Per Hour
program that donates food to Food Bank.
These public relations activities create a positive brand image for Toyota. On the other hand,
infrequent sales promotion is used through special deals. Also, the company sometimes uses
direct selling for corporate clients. This part of Toyota’s marketing mix indicates that the
company has a comprehensive strategy for promoting its business and products.
16

17. To promote the Prius car, “Toyota says its Prius has lower emissions then a Goat”. It helps to
increase their sales volumes and Prius is the most popular Hybrid car in the world market
during last 03 years period.
Prices and Pricing Strategy
Toyota became the second largest two-carmaker company. Due to their innovative designs
and heavy investments in promotional activities, they have enticed customers all over the
world. They built high quality vehicles and price them moderately.
Toyota’s prices vary widely, depending on the product line and the product type or model.
This element of the marketing mix identifies how the firm sets the prices of its products.
Toyota uses a combination of the following pricing strategies:
• Market-oriented pricing
• Value-based pricing
Toyota uses the market-oriented pricing strategy to determine prices based on market
conditions and the prices of competitors. This pricing strategy is notable in the vast majority
of Toyota products, such as sedans and trucks.
However, the firm also uses the value-based pricing strategy, which sets prices based on the
actual and perceived value of the product. The company uses value-based pricing for high-
end or more expensive products, such as the Prius and Lexus cars. This part of Toyota’s
marketing mix shows that the company determines price levels based on market conditions
and customers’ perceptions. The price range of their cars changes according to the model, add
17

18. options and make. Toyota’s profits mainly increase because of the pricing and features
offered with their products.
They have always stood by the company’s mission of satisfying customers’ needs and wants
by producing high quality automobiles at affordable prices. Such affordable prices also help
the brand in their marketing.
The company, Toyota has been bale to increase the sales volumes and profits margins since
they have been able to utilize the marketing mix strategies and high level of customer
satisfaction. Also, the company enhance their high technological equipments to enhance the
safety of the passengers and eco friendly vehicles.
Financial Details for year 2016
18

19. According to the financial records (Based on Annual Report 2016), Toyota has been able to
increase their Net Income by Yen 139.3 Bn.
In addition, they have reduced CO2 Emissions per Unit Produced by 0.009 in view of
absorbing eco friendly technology to their production level.
After analyzing the financial statement for year 2016, the company has been bale to increase
the net income by capturing large market share around the world. Since then, Toyota has
been bale to won hearts of vehicle lovers by manufacturing the customaries vehicles and eco
friendly vehicles.
As a responsible company, they always target to reduce the pollution through their vehicles to
environment and production process.
SWOT Analysis of Toyota
19

20. Competitors’ Strategies
20

21. Considering worldwide vehicle industry, there are several vehicle manufacturing companies
in medium scale to large scale. Toyota is one of the leading vehicle company in the world.
Hence, we have considered the 03 Nos of main competitors who need to catch the market
share of Toyota and develop the standard of the level up to Toyota in future.
These are the main competitors;
• Honda
• Mitsubishi
• Nissan
Honda
Honda is also operating their business in Japan. Honda vehicles have following additional
qualifications,
• High technology equipments – auto brake system, curse controller, heat able seats
• High durability of spare parts specially break pads
Mainly, Honda vehicles are in an advance position to Toyota cars by above facts. However,
considering the overall function, Toyota is more advance to Honda cars. It’s However,
Toyota can absorb the above additional functions to enhance the performance of the vehicles
in future.
Mitsubishi
Mitsubishi has introduced Outlander Phev which can utilize the electric power and hybrid
both functions as fuel. Mitsubishi Outlander Phev is a SUV vehicle and considering the cost
relating to fuel is low since there have duel fuel system.
It’s however, Toyota has not manufactured such type of the vehicle since they have only
considered to develop the hybrid system. Prius is the highest marketable hybrid vehicle in the
market during last years. So, if Toyota can manufacture a duel fuel system vehicle, they can
touch a new market segment in future.
Nissan
21

22. Nissan is a Japan based vehicle company. During last decade, they have enhanced their
business by touching new business segments and introducing new types of cars. Specially,
they have introduced Nissan Leaf car which is operating by electricity. Also, they have
manufactured racing cars for the market considering high capacity of engines and other
performances.
Toyota has not manufactured racing model cars in large scale. It’s however, they can enhance
the business by supplying such facilities.
CONCLUSION
Considering overall marketing mix strategies of Toyota, they are in a stable position since
they have rearranged the strategies in time to time to meet the market condition.
It’s however, they can absorb the facilities and special features from Honda, Mitsubishi and
Nissan to enhance their market share. Also, Toyota is mainly considering about the eco
friendly vehicle and eco friendly business operations. Hence, at that point, they have
enhanced their performances specially Prius car.
According to their Annual report, they expect to do the following activities during next years,
• New Vehicle Zero CO2 Emissions Challenge
• Life Cycle Zero CO2 Emissions Challenge
• Plant Zero CO2 Emissions Challenge
• Challenge of Minimizing and Optimizing Water Usage
• Challenge of Establishing a Recycling-based Society and Systems
• Challenge of Establishing a Future Society in Harmony with Nature
Considering the above facts, Toyota has stable and good marketing mix strategies and they
improve the same in time to time to meet the present market conditions. So, if Toyota can
absorb the other competitors’ values, they can enhanced their business to an untouched area.
22

23. REFERENCE
23

24. • www.toyota-global.com
• Dominici, G. (2009). From marketing mix to e-marketing mix: a literature
overview and classification. International Journal of Business and Management,
4(9), 17-24.
• Goi, C. L. (2009). A review of marketing mix: 4Ps or more? International
Journal of Marketing Studies, 1(1), 2.
• Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality Function
Deployment and New Product Development with a focus on Marketing Mix 4P
model. Asian Journal of Research in Marketing, 4(2), 98-108.
• Toyota Motor Corporation (2015). Product Lineup.
• Toyota Motor Corporation (2015). Spare Parts, Accessories, and Marine
Products.
• Toyota Motor Corporation Annual Report 2015.
• Toyota Motor Corporation Annual Report 2016.
24