The promotional marketing aspect of Toyota is by far one of the major keys to success of the entire organization. It is so critical to Toyota that they recently spent a total of $2. 86 billion in advertising expenses, which ranks them at number six in the world for the highest advertising budget (Evans, 2011). The message is clear for Toyota. Their new organizational goal and slogan is “Moving Forward. ” That is exactly their plan in the upcoming years for being right on the heels of top automakers General Motors and Ford Motor Company.
To achieve this goal, the primary aspect of the organization is to get their promotional marketing out through advertising, personal selling, offering sales promotions, and being involved in publicity. Toyota spends a significant amount of money on advertising to convey their message clearly. The company plans to move forward, surpassing other automakers to claim the number one spot, by producing vehicles that are fuel efficient, reliable, affordable, and practical. One of the best examples in their product line is the Toyota Corolla.
The target market for this vehicle is rather perplexed or simply genius. Rather than targeting a specific target market, this vehicle is designed for the needs of many consumers including families, college students, and professionals. But the real question here is how to target several consumers in different areas? The answer is by advertising everywhere possible. Toyota advertisements can be found just about everywhere including primetime television, popular radio stations, newspapers, magazines, internet banners, billboards, sporting events, sponsorships, and any of their cars driving down the road.
Although the cost of advertising may seem like a big number, Toyota considers it a necessary commodity for achieving the number one auto manufacturer in the world. The only way to purchase a Toyota product is through a sales consultant at a certified retail outlet and is the reason why personal selling is a critical part to the overall success of the organization. This concept is a huge benefit for Toyota’s volume because a sales consultant has the ability to influence and persuade a consumer into making a uniformed and educated decision on their product.
The biggest benefit for a sales consultant is the ability to offer a test drive which creates value and ownership in a consumer’s mind to the actual product they desire. In addition, this interaction builds a relationship and allows the consumer to get direct feedback quickly and professionally to any questions they may have. Since personal selling is a critical part to consumer purchasing, Toyota ensures that their sales consultants are highly motivated, trained, and professional.
In fact, a requirement for employment as a Toyota sales consultant is to actively complete sales/ product knowledge training through their virtual online Toyota University. If a sales consultant fails to meet these standards, then they are welcomed to stay in sales but just not with Toyota Motor Company. Furthermore, sales consultants are also judged on a customer satisfaction index or survey which every new Toyota owner receives. The sales consultant is expected to provide superior customer service and is awarded financially for doing so.
Sales promotions are the best way to capture the interest of a consumer. Not only does Toyota advertise their Corolla as a dependable, fuel efficient vehicle, but when they do they also include several incentives or sales promotions to interest the consumer in the product. The main goal of these advertisements is to get consumers into the retail outlets to meet with a sales consultant. According to Toyota. com, current incentives on a 2012 Toyota Corolla include combined rebates up to $2,000 and also 0% financing for up to 60 months.
The idea is for the consumer to perceive the ability to take an additional $2,000 off the manufacturers suggested retail price and finance the vehicle for free at an affordable payment. In addition, a significant portion of consumers like to lease their vehicles and the current promotion on a brand new Corolla is only $149/ month with minimal cash due at signing. Going back to the target market and using an incentive as an example, a $500 rebate is included for any consumer who is trading a non-Toyota product.
The goal of this incentive is to persuade consumers into considering Toyota and ultimately creating a bigger market share for the Toyota brand. Finally, where Toyota is spending a significant amount of their advertising is on their complimentary maintenance plan with roadside assistance for two years called Toyota Care that is available on any model they offer. Right now Toyota is the only brand offering this benefit and the promotion adds value to any prospective consumer (Toyota. com). Toyota admires the community and takes a part in publicity.
Another avenue of marketing is to get the brand name out there in a casual but attention grabbing fashion. One way Toyota does this is by sponsoring the Toyota Center in Houston, Texas. Any event that takes place at this state-of-the-art facility has Toyota’s name tattooed all over it. The name Toyota not only appears on the side of the building, but also on ticket stubs, apparel, and broadcastings. This marketing approach gets out to huge live audiences who come to see big acts like Lady Gaga, Madonna, and the 2013 NBA all-star game.
Another recent approach Toyota has taken is an event called the Tundra Endeavor Challenge. On October 13, 2012, the Toyota Motor Company will try to stun the world when their Toyota Tundra stock model attempts to tow the space shuttle Endeavor to its new location at the California Science Center in Los Angeles, CA. The shuttle and apparatus will weigh almost 300,000 pounds! The event is supposed to attract thousands of people and if done successfully, the Toyota Motor Company will have a very intuitive marketing accomplishment (Toyota.
com) It is obvious that Toyota sees the promotional marketing aspect of the organization as a major key for success. In conclusion, the ultimate goal in moving forward is to get the Toyota brand name out there in a unique fashion. The goal is to provide the best products for the best value and with the best customer service. The foundation of the promotional marketing for Toyota relies on advertising, personal selling, sales promotions, and publicity.