PROMOTIONAL AND ADVERTISING STRATEGIES
Professor Gary Shelton
BUS 508: Contemporary Business
August 31, 2014
The history of the automobile began during the late 1700s when European engineers began producing powered vehicles that consisted of combustion, steam, and electrical motors. The 1900s also proved to be a time when the uncertainty of determining which type of motor could actually power the automobile was in question as well. The production of the first U.S. automobile in 1901 by the Ford Motor Company has revolutionized, and changed the course ...view middle of the document...
Toyota Motor Corporation was established in 1937, and is considered one of the largest and well known automobile manufacturers in the world. It is the largest automobile manufacturer in Japan with a market share of more than forty percent. Toyota Motors have several strategies in place that it uses to implement their objectives which includes a management system that is focused on prompt decision making, problem-solving, preventive measures, and a variety of individuals and departments that deal with problems as they arise.
Two ways in which General Motors and Toyota Motors could differentiate itself in the marketplace to gain an advantage is to increase its market segmentation and positioning strategies. Market segmentation is defined as the process of dividing a total market into several relatively homogeneous groups (Boone & Kurtz 2013). Positioning is the form of promotion in which marketers attempt to establish their products in the minds of customers by communicating to buyers meaningful distinctions about the attributes, price, quality, or use of a good or service (Boone & Kurtz 2013). Today, the internet serves as a market that is filled with potential consumers who are willing to purchase products they desire if the price is right. The process of finding or attracting new consumers is more complicated than retaining older ones because most of the time people like old habits. Toyota has been around for a long time, and despite some challenges that has occurred in the past dealing with manufacturing, its name speaks for itself. For example, segmenting by demographics is a great strategy because most information is publicly available, which includes the use of the U.S. Census. Age, income, gender, family life cycle, and ethnicity all play a significant role on how and what consumers purchase.
When preparing a marketing strategy, it is important to consider the short and long-term, as well as the positive and negative effects of consumer-oriented promotions. For example, coupons and discounts are short term promotions that initially have positive effects, but over time lose its value if they are consistently offered. This may imply to the consumer that there may be a deficiency in a company’s product or service as a result of continuous discounts. A positive effect of a long-term consumer promotion would be to offer loyalty discounts because it builds confidence, as well as increases consumer confidence. It also increases a company’s referral rate, and it most often boosts its brand identity as well.
Pricing is considered to be one of the most vital elements of any successful business. Pricing is a combination of the “4Ps” product (service), place, promotion, and price. Providing consumers with what, and when they desire a product is one of the vital roles of the pricing marketing mix. The marketing mix, along with the development of the “4Ps’ were founded by Neil Borden during the 1950s. Product (service)...