Assignment

Table of Contents
Core Concepts of Marketing ........................................................................................................... 3

Needs, Wants and Demands ........................................................................................................ 3

Marketing offers .......................................................................................................................... 3

Value and Satisfaction ................................................................................................................. 4

Transaction, Exchange and Relationship .................................................................................... 4

Market ......................................................................................................................................... 4

How Toyota Applies Marketing Concepts? .................................................................................... 4

Stages of Strategic Planning Process .............................................................................................. 5

Role of Marketing in Reaching Organizational Objectives ............................................................ 6

Product/Market Expansion Grid ..................................................................................................... 7

Market Penetration Strategy ........................................................................................................ 7

Market Development Strategy .................................................................................................... 7

Product Development Strategy ................................................................................................... 7

Diversification ............................................................................................................................. 8

How Toyota is Applying Product Development Strategy?............................................................. 8

Constraints for Marketing Department of Toyota .......................................................................... 9

Major Ethical Issues in Marketing .................................................................................................. 9

Stages of Marketing Research Process ......................................................................................... 10

Importance of Marketing Research ............................................................................................... 11

Best Marketing Research Methods ............................................................................................... 12

Most Suitable Marketing Research Method(s) ............................................................................. 13

Sections in a Marketing Plan ........................................................................................................ 14

Executive Summary .................................................................................................................. 14

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Situational Analysis................................................................................................................... 14

Target Market ............................................................................................................................ 14

Marketing Goals and Objectives ............................................................................................... 14

Marketing Budget /Capital Budgeting ...................................................................................... 14

Marketing Strategy and Action Plan ......................................................................................... 15

PESTLE Analysis ......................................................................................................................... 15

Political Factor .......................................................................................................................... 15

Economic Factor ....................................................................................................................... 15

Social Factors ............................................................................................................................ 15

Technological Factors ............................................................................................................... 16

Legal Factors ............................................................................................................................. 16

Environmental Factors .............................................................................................................. 16

SWOT Analysis of Marketing Strategy (Product Development Strategy) ................................... 16

References ..................................................................................................................................... 17

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Core Concepts of Marketing

Marketing is the process of creating value for customers. So marketers must be clear about
customers’ needs, wants and market situation and conditions. For getting clear about these
things, there are some major concepts of marketing which are following.

Needs, Wants and Demands

Needs: Human needs are states of felt derivation. These needs include physical needs, personal
and social needs and other basic life needs.
Wants: These are form of individuals’ needs which take as shaped by cultural and individual
personality. Like if we get hungry then we like to get fish or chicken etc and other eatable items
while Americans want to take burger etc.
Demands: Demands include all human wants which are backed by personal buying power.
Demands have three conditions and components which are:
 Desire of getting product or service.
 Ability to pay for desired product or service.
 Intention to pay for the product or service.

Marketing offers

Marketing offering includes some products, experience and services which are offered to a
particular market or segment to satisfy a need or want.

Products: Product is anything which is offered to market of customer for use or consumption
which can satisfy a customer’s need or want. Like computer, book, burger or motor car etc.

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Service: Service is an experience or activity which is offered by one party to another to satisfy
someone’s need or want which does not have tangible shape and design (Kaimij, 2017). Example
of services is banking, traveling and health services etc.

Value and Satisfaction

Value: Value refers to the difference between gains and satisfaction from product and cost of
getting the product.

Satisfaction: Satisfaction is customers’ or someone’s feeling after comparing gained / perceived

performance relating to his / her expectation from the product.

Transaction, Exchange and Relationship

 Transaction is the trading values between two or more parties. There must have financial
relationships between parties.
 Exchange is the process of obtaining something by offering something in return.
 Relationship or relationship marketing is the process of creating and maintaining good
relationship with customers and other entities or stakeholders (Kaimij, 2017).

Market

Market is a set of some actual and financially potential customers of a product or service.

How Toyota Applies Marketing Concepts?

First of all, Toyota’s marketers identify needs, wants and demands of their potential customer
through strong research and investigation about the customers and their markets and segments.
The second concept is applied by the organization in a way by producing products (vehicles) and
also develop and offer additional services to the customers for getting higher customers’
satisfaction and creation of greater value of their products and services (Kaimij, 2017). Toyota
Company also provides engine or other equipments’ guarantees and warrantees for achieving
higher product value and customer satisfaction.

Toyota Company keeps strong and long-term relations with their potential and permanent
customers and clients for business success and market growth and stability.

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Stages of Strategic Planning Process

1. Company Mission

Company mission is the short-term goal or objective which company wants to achieve to reach
to its long term goals and vision.

Toyota mission is to act, commit and perform teamwork to become a successful brand through
customer satisfaction, good corporate image, best production and high quality products and
increase profitability (Burnill, 2017).

2. Goals and Objectives

Goals and objectives are described as some specific targets which a company or individual wants
to achieve for the success and growth in future. Some strong objectives of Toyota Company are
below:

 To increase customers’ satisfaction by providing high quality products and services.

 Strong and aggressive customers’ satisfaction processes to foster and stronger customer
relationship.
 To maintain and grow market share in existing market and enter to new markets.
 Ethical and social activities and approaches towards clients and customers and foster their
needs and wants (Burnill, 2017).

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3. Business Portfolio of Toyota

Business Portfolio is the collection of two or more components, which are treated as one unit and
offered to a market to satisfy a specific need or want.

Business portfolio of Toyota includes number of products from different categories as well as
additional services relating to their products.

The products of their business portfolio are:

 Alphard and Voxy from Mini Van category

 Land Cruiser 200 and Land Cruiser 70 from SUV category
 Hiace and Coaster from Commercial Vehicles

Toyota Company is engaged in large number of products so their designed portfolio includes
products and related additional services (Like repairing and licensing of vehicles etc).

4. Planning Marketing and Other Functional Strategies

This step / stage of strategic marketing process include overall planning business strategies
which are executed and implemented in business operations.

Planning Marketing includes all marketing strategies which companies use / utilize and
implement for their marketing and promotion and other functional strategies and processes
includes Financial strategies, Production and Operation strategies, Research and Development
and HR management and strategies. In planning marketing, companies plan its marketing and
other promotional activities while other strategies includes all functional strategies (mentioned
above) of the company.

Role of Marketing in Reaching Organizational Objectives

Marketing is not only selling the product but a skill of identifying people who want products to
satisfy their needs and wants. According to AMA (1995), Marketing is a technique of
implementation of conception, pricing, distribution and promotion of ideas and concepts that
satisfy individuals and organizational objectives (Zaki, 2017). So organization does not define
product according to what they do but according to what customers want.

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So marketing has a vital role because marketing is the only way through which can find and keep
customers and it also informs and educate public about the company (Toyota), its products and
promotes company and products’ awareness to customers and market through advertisements,
promotions and commercials, so in these ways marketing plays crucial role and helps Company
(Toyota) to achieve organizational objectives (Zaki, 2017).

Product/Market Expansion Grid

Product Market expansion grid is used when a company or organization plans or looks to
increase sale of its product by enhancing its product range to existing markets or targeting and
entering to new markets with existing products (Hizzair, 2017). This (Product Market Expansion
Grid) considers two components the product and market. Product may be new product or current
and the market would be current or new. The grid includes four major strategies which are
explained below:

Market Penetration Strategy

This strategy is implemented when the company has current product and launching it to the
current or existing market. In this situation or case, customers know the product and its nature etc
but don’t use because of any reason or issue. In such a case, companies use and implement three
tactics or strategies to enhance their market penetration.

Market Development Strategy

This strategy is utilized and implemented when company has current product or service but its
market is new for the product. In this scenario, company develops its territorial and enters to new
market with an existing product. New markets usually have thought competition but it may also
occur that the company may be received positively. There are also three main strategies which
companies can use to develop their market.

Product Development Strategy

Product development strategy is implemented where company has a new product for its existing
or current market. This strategy is used because most of the products of companies don’t sell for
long time and the companies have to identify and introduce new products and services which

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they had not produced or offered to the market yet (Hizzair, 2017). So that, the company or
companies can enhances their product sales and revenues through implementation of three major
and basic strategy of market development.

Diversification

Diversification strategy is implemented when the company is entering to a new market with a
new product. In these circumstances, the demands of customers may be different than the market
where the company currently exists and operates in. As the company launches new product to a
new market, the difficulties arises in the same manner. So for establishing a diversification
strategy, company / companies have three basic and strong tactics to be used.

How Toyota is Applying Product Development Strategy?

There are number of strong techniques and ways through which Toyota Company is currently
applying Product Development strategy.

 Toyota Company does strong research and investigation and collects all required information
about their new product by asking customers, especially permanent customers.
 Develop and get a chief engineer system to have lowest possible cost which will lead to
lowest possible price in the market (Hizzair, 2017).
 Company develops fully integrated suppliers into product development system for effective
production.

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 Build continuous improvement during production process which leads to high quality
outcomes and products which is a sign of success of product in the market.
 While bringing or launching Toyota Company firstly target its permanent and loyal
customers (Hizzair, 2017).
 Toyota uses Word of mouth for promoting and launching its new products to existing
markets like a recent slogan “Toyota 17th”.

Constraints for Marketing Department of TOYOTA

There are number of constraints which marketing department of Toyota Company face because
some of other departments do not “think customers”.

 Marketing Department may lose its permanent customers.

 Company may lose customers’ loyalty in the market.
 Customers may switch to competitors.
 Marketing department will have to redevelop its market and product awareness in the market
which has lost because of do not “think customer” of production department.
 If Production Department produce more or less products and inventory than customers’’
demand then marketing department would be responsible to deal with such conflict/problem.

According to (Kainez, 2016-17), The Production Department of Toyota creates above constraints
which marketing department of Toyota faces because if the production department does not
“think customers” and do not produce products and its quality according to the customers’ likes
and dislikes then customers may switch to competitors and marketing department will lose its
customers and customers’ loyalty etc.

Major Ethical Issues in Marketing

There are number of limitations and consideration which marketers face in marketing and
marketing researches and marketers must follow these limitations critically and carefully. Two
major issues which have been faced in marketing are below:

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1. Legal and Ethical Constraints

There are some rules and regulations for market researchers and marketers when they collect or
gather and hold data and information about their customers. Marketers must ensure that the data
or information only be used for lawful and necessary purposes and must be kept secure (Afzil,
2016). It is also important the marketers must convey the reason that why and for which purpose
the data has been collected.

In addition to this, we have number of guidelines established by organizations like MRS (Market
Research Society) which motivates and encourages organizations to operate in ethical boundaries
while dealing and interacting with people or public. This is the most common issue which
marketing faces every time as marketers operate.

2. Nature and Reliability of Data

The value and outcomes of marketing research always depends on the data collected and its
accuracy. Research findings are dependent on the quality of data and data which includes
samples and questions etc. So this is the major issue which marketing faces while doing
marketing research. It is an expensive part of marketing research which needs high costs for
getting relevant data for better results and effective decisions about the company or product but
marketers also keep themselves within the limitation that they should not ask question or take
interview which brings accurate data but hurts customers or interviewees (Afzil, 2016).

Stages of Marketing Research Process

1. Define the Problem

The most important stage of market research process is defining the problem which describes
that where you lay the foundation for the rest of your marketing research. In this stage you need
to decide that what you are trying to find out (Junniey, 2017). You also need to develop
objectives of your research and develop clearly which will help in defining your problem of
research.

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2. Develop Research Plan

The second stage of marketing research process is to develop and design Research Plan
according to your problem’s nature (Junniey, 2017). There are number of techniques which are
used to conduct research.

Interview Prospect and Customers: In this techniques company has to interview its prospects
and customers because it’s the most commonly used and best way to get best feedback and
information.

Questionnaire: questionnaire is the second best way of collecting relevant and beneficial
information and data. This technique is also included in developing research plan.

3. Collect Relevant Data and Information

As you collect your data or information, you must ensure that the data or information is relevant
and useful. In this stage, researchers should use mixture of strategies to collect best quality data
or information (Junniey, 2017). In this stage researchers collect analytical/scientific data or info
as well personal stories also help them to get effective insights and data.

4. Analyze Data, Interpret and Report Findings

Once researchers gather information then the next step is to analyze data and interpret the data
and findings. In this steps/stage, researchers don’t try to find patterns based on previous works /
assumptions but focuses on their own hypothesis. This is also an important stage of marketing
research process because it brings all outcomes and results of the research (Junniey, 2017). As
this stage is organized and performed well, it will bring beneficial results for the company.

Importance of Marketing Research

 Marketing Research and Market Research can guarantee company’s success and marketing
campaigns and in turn higher sales. Marketing research not only helps in identification of
new opportunities (Junniey, 2017) but helps in developing marketing campaigns which will
directly target customers and increase sales level.

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 It also provides information about the markets, segments, customers and clients during a
particular period of time and within limited cost which helps in effective positioning,
segmentation and targeting.
 Marketing Research is important because it shows companies to know that where
opportunities exist and helps in identification of both high level and low level opportunities.
 It also identifies and understands loyal customers and reasons that why they are choosing us
in the market (Junniey, 2017).
 Marketing research helps companies to keep a tab on potential competitors. Companies can
track their progress and competitors’ growth through comparative studies which will help
companies to get ahead o competitors.
 Marketing research also identifies new ways of business and enhance customer base by
discovering new potential customers.
 Marketing research also important because it helps in reducing loss in term of getting
information and market trends about the product before its launching (Junniey, 2017).

Best Marketing Research Methods

There are several methods of marketing research but some of these methods are strong, effective
and best which are used to conduct and effective marketing research. These methods are below:

Surveys

The most commonly used and the strongest way of conducting marketing research is survey.
Survey is the easiest method which marketers and companies use to gather information and can
be used for better analysis if it is implemented well and efficiently (Huzaifa, 2016). Surveys can
be conducted in several forms like paper survey, online survey and telephone survey etc.

Interviews

Interview is the second best marketing research method which is the process of asking questions
from people or prospects. Interview is a difficult way of marketing research and needs higher
cost and efforts and demerit of having limited interviewees who are interested to give interview
but it can bring more beneficial, relevant and useful information (Huzaifa, 2016). Interviews may
be face to face or online interviews.

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Observation of Focus Groups

Observation is the process of observing a specific and focus group of people or customers by a
marketer or any other marketing professional or researcher. This is done mostly in case of
evaluating competitors and their marketing strategies and growth. In focus group, researchers
prepare some specific questions and ask them according to interviewee’s level and interest.

Asking Employees

This marketing research method is the process of asking organization’s employees especially
marketers and sales persons who are directly connected with targeted markets and customers and
this method can bring more useful information on daily basis with high quality directly from
markets and customers (Huzaifa, 2016).

These researches are done and information are brought through both qualitative (based on
attitudes and views of customers) and quantitative research method (based on numerical and
graphical information) to draft the respective marketing strategy of Product Development by
Toyota Company.

Most Suitable Marketing Research Method(s)

All marketing research methods are very useful but Interviews and Observation of Focus Groups
are the most suitable marketing research methods for Toyota Company to adapt and draft
Product Development Strategy and other marketing strategies. Below are the reasons and
benefits because of which these methods are the most suitable methods for the Company.

1. These methods (Interviews and Observation of Focus Groups) bring more relevant
information about the market and customers.
2. Toyota Company can interview and observe its loyal and permanent customers easily.
3. Company cannot interview and ask all of their customers so in this case only observing focus
group is an effective method for the company.
4. Toyota can also identify the new product development strategies of its competitors in
observation of focus group and can gather more realistic information by interviewing those
specific group(s).

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Sections in a Marketing Plan

Executive Summary
Executive Summary is a brief review / overview of entire marketing plan. It allows marketers to
understand the brief of whole plan before going to the depth of the plan. It is an important
section because investors and other interested people don’t study whole plan but only review this
section.

Situational Analysis
This section conveys the current situation of the company which includes information about
current happenings and circumstances within the company and environment of company’s
business operations that where company stands in the market and industry (Diane, 2016).
Changes at local and national level and other trends in the market which affect the company in
present time are discussed in this section.

Target Market
This section evaluates and understands the economic condition and other cultural components of
target customers and audience. This an important part of marketing plan for the company to
know its target customers and audience in terms of market share, number of customers,
marketing trends, customer buying powers and demographics etc (Diane, 2016).

Marketing Goals and Objectives

This section of marketing plan states all marketing goals and objectives which companies set to
be achieved by the company. Marketers should make their objectives and goals clear, specific
and measurable which are realist and achievable for the company or a product. According to
(Diane, 2016) Objectives are mostly set and developed after deep SWOT Analysis of the
company and product.

Marketing Budget /Capital Budgeting

This section includes the overall forecasting and financial estimation for the plan and execution.
Break-Even Analysis is done in this section which helps company to set and estimate its budget
more effectively and use financial sources of the company in a better way while implementing
marketing strategies and plan.

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Marketing Strategy and Action Plan

This is the final and most realistic and practical section of a marketing plan which includes
strategies and action plan that how company or product will be launched and positioned. It also
emphasis that what will be the promotional, advertising, and pricing strategies and how product
or company will be advertised, promoted (Diane, 2016). Marketing Strategy and Action Plan
also includes planning that, what will be done, who will do, how will be done and when an
activity or task will be done and so on.

PESTLE Analysis

Analysis through which companies evaluate and track their environments in which they operate
or trying and planning to enter or launch a new product or service. Understanding each factor of
PESTLE Analysis is very critical and important for every organization and individual which are
below:

Political Factor
Political factor evaluate the extent to which a government or political situation can affect the
economy or a particular industry. Like government may put new tax which may affect the overall
revenue structures of the company (Zamier, 2017). Political factors mostly include fiscal policies
and monetary or taxation policies.

Economic Factor
Economic factors are the determinants of an economy and its performance which has direct
impact on the performance of the company and overall industry. Like increase in inflation in rate
affects companies in a way to increase their price ranges and it can affect the buying power of
potential customers (Zamier, 2017). These factors mainly include interest rate, inflation rate or
currency rate and economic growth of the country or region.

Social Factors
Social factors determine the social environment of a particular market like population,
demographics and cultural and social trends. A suitable example is that the buying trends of
Western Countries are higher in holidays than other countries or nations in the world.

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Technological Factors
These factors include technology and innovation which has impacts on the companies and
industry positively or negatively. These factors are but limited to automation, technological
awareness and R&D which a market possesses (Zamier, 2017).

Legal Factors
These factors (Legal Factors) affect the company and overall industry and market. These include
number of laws and rules which have direct and indirect impact on the operations of businesses.
Thos laws are consumers and labor laws and safety standards etc.

Environmental Factors
Environmental factors are those factors which exist around businesses and affect those
businesses positively or negatively (Zamier, 2017). These factors includes both usual and
unusual factors like farming, agriculture, weather, geographical changes and global changes etc
which has significant affect on the environment where company or business operates.

Toyota Company has identified strategies and concepts by understanding every aspect of
PESTLE Analysis and this analysis helps Toyota to understand its environment of
operations, its law, rules, political situation and social and technological condition which
helps company to develop goals and objectives and set standards and establish accordingly. It
also benefits that the company should keep an eye on every angel and component (internal or
external) of the environment they operate in.

SWOT Analysis of Marketing Strategy (Product Development Strategy)

Strength: Efficient and effective Research & Development, innovative processes of

production and strong marketing led company towards Product Development Strategy.
Weakness: Based on past experiences, weak performance in developing existing or new
markets for existing products.
Opportunity: The crucial opportunity for the company is that the company can attract new
customers through launching a new and innovative product.
Threat: The critical threat for the Company (Toyota) is that the competitors copy or captures
the idea of launching new product to the market before Toyota launches the product.

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References

1. AFZIL, M. 2016. Ethical Issues in Marketing and Management Journal of Business Ethics, 2,
134-147.

2. BURNILL, M. J., F. 2017. Corporate Structure of Toyota. Vision, Mission and Goals &
Objectives. Journal of International Management 3, 123-139.

3. HIZZAIR, J. 2017. The Toyota Product Development System [Online]. Available:

https://www.researchgate.net/publication/283312321_The_Toyota_Product_Development_S
ystem [Accessed 01-01-2018].

4. HUZAIFA, K. 2016. Best Marketing Research Methods for Toyota Company [Online].
Available:
https://www.google.com.pk/search?dcr=0&source=hp&ei=rypWWvv8JaOV6ATNs42gBg&
q=+best+marketing+research+methods+for+toyota+company&oq= [Accessed 07-01-2018].

5. JUNNIEY, K. 2017. Marketing Research Process. Stage and Importance. Journal of

International Marketing, 3, 122-138.

6. KAIMIJ, L. 2017. What is Marketing? Explain the Core Concepts of Marketing [Online].
Available: http://www.josbd.com/what-is-marketing-explain-the-core-concepts-of-
marketing/ [Accessed 27-12-2017].

7. DIANE, W. 2016. Key Sections of Marketing Plan [Online]. Available:

http://smallbusiness.chron.com/key-sections-marketing-plan-20992.html [Accessed 27-12-
2017].

8. ZAKI, K. 2017. Why is Market Research Important for your Business [Online]. Available:
https://www.outsource2india.com/kpo/articles/market-research-importance.asp [Accessed
04-01-2018].

9. ZAMIER, A. 2017. What is PESTLE Analysis? A Tool for Business Analysis [Online].
Available: http://pestleanalysis.com/what-is-pestle-analysis/ [Accessed 09-01-2018].

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