7Ps is a major concept that is applied in the locomotive industry to realize large volume of sale, employee retention and annual turnover. This paper entails an analysis of the 7Ps applied by Toyota Company, which is among the top manufacturers of vehicles in the world. The paper focuses on how numerous marketing variables have enabled the company to gain huge profits. Moreover, it will demonstrate how each of the variables gives the company a competitive advantage amidst its competitors. Moreover, the discussion will illustrate how the 7Ps helps to boost the corporate image and how they enable Toyota Company to obtain a remarkable market share.<\/p>\n
Over the years, the traditional marketing mix has been extended and redefined owing to the complex nature of products and services.[1]<\/a> In Toyota Company, competition in the global market and demand to stay ahead in the market has seen it evolve its concept of marketing to provide intangible and heterogeneous services. It has sought to implore the best considerations that its management can articulate in the highly changing market arena not just to survive, but also to profitably operate and derive the necessary positive images in the market.\u00a0 It is from this consideration that it employs all the 7 principles of marketing as an aspect for progress.[2]<\/a><\/p>\n Marketing\u00a0 <\/strong><\/p>\n Marketing is regarded as one of the most crucial activities in any industry. In modern marketing, the term marketing mix is a common concept. In various contexts, marketing mix is usually referred to as the \u201c7Ps of marketing\u201d. This entails a set of controllable factors or tools that are blend together to meet the needs of consumers. In the case of Toyota Company, there are seven tools or variables that used to ensure that consumers of automotive products are satisfied. These variables include product, price, people, place, promotion, process and physical evidence. This paper aims to discuss in depth the 7Ps in Toyota Company.<\/p>\n Product<\/strong><\/p>\n There are numerous products which Toyota Company has managed to inject into the global market. For instance, we have numerous vehicles such as Corolla, Land Cruiser, RAV4, Lexus and Avensis. Toyota is proud to have left a remarkable mark in the global motorway. As a matter of fact, the company has managed to produce automotives that are able to cope with the impending fuel upsurges. As a result, Toyota has become a major competitor in the car industry. Embracing innovation has made the company to launch products that meet consumer\u2019s expectations.[3]<\/a><\/p>\n One of the key elements of service marketing for Toyota is its products that satisfy customers\u2019 needs. According to Cusumano, the success of Toyota products and services has been pegged on the notion that they are diverse and intangible. They fit consumers\u2019 tasks, meet their needs and expectations.\u00a0 It is important to note that Toyota products, cars and car accessories, are fast evolving in the market and therefore consumers continue enjoying new designs with time. The company has continued to enhance the quality of its products by factoring in consumers\u2019 tastes and establishing effective links to address their demands.<\/p>\n Price<\/strong><\/p>\n Toyota Company has set prices proportionally to the consumer\u2019s income in various parts of the world. The company has managed to produce cars for low and high-income people thus ensuring that its target consumers are not let out. This has given the company a competitive advantage since the sales continue to increase and maximum profits are realized. However, the pricing is highly dependent on demand and supply. Toyota\u2019s brand, the experience its products give to its customers and its ambience are some of the factors that have determined its price offering. While it is hard to measure service and tangible costs of production, Challagalla, Murtha and Jaworski indicate that certain factors such as overheads and labor costs might determine the price of a product.[4]<\/a> Price determination for Toyota Company has been consumer friendly. This has been so while maintaining the highest possible quality. Indeed, Toyota products represent good value for clients\u2019 money.[5]<\/a> Its prices represents the tenets of marketing concept as they are not cheap but represent quality, a consideration that gets clients to pay a little more.[6]<\/a><\/p>\n Place<\/strong><\/p>\n Toyota Company has been able to identify numerous market segments where its goods are in high demand. As a result, its products have successfully penetrated most of the markets in Asia, Africa, America and Europe.<\/p>\n Promotion <\/strong><\/p>\n Toyota Company has launched advanced promotional activities. Through advertisements, the company has shown its commitment to manufacturing environmentally friendly vehicles. Promotion tactics used have revealed the green image of Toyota locomotives that eventually increase their marketability.<\/p>\n Oldani defines promotion as the manner in which clients are informed of products and services to the point where the services are sold.[7]<\/a> Drawing from Toyota promotion practice, it involves making small changes in the advertising of the product. Such changes cause a dramatic shift in results and enhance sales. To counter challenges of promotion, Toyota has continually developed new strategies, offerings, advertising approaches and new sales and marketing processes. It has used local medial such as the television, the news print, and even the radio to carry out promotions.<\/p>\n People <\/strong><\/p>\n The company is keen to empower its entire workforce in the service and production line. This has made its workers to become creative and customer friendly. As a result, it has boosted the company\u2019s self image and its ability to respond to consumers\u2019 expectations.[8]<\/a> In a company, the managing director and the front line staff are some of the individuals who are relied upon to promote the image, products and services the company offers. According to Rajasekera, it is essential to have the right people to drive a business forward. Management in Toyota has established the necessary supportive structures that have witnessed the growth of its products and offerings. Its leadership role in provision of the necessary management practices that lead to the best management practices in organizations. It is in this regard that the company assimilated its widely known Toyota Company Philosophy that calls for long term critical thinking as a basis for management decision making at all times. Therefore, its management structure has been greatly devolved to the lower levels where it has direct link with employees to monitor how they deal with clients.[9]<\/a><\/p>\n Process<\/strong><\/p>\n Toyota has embraced a lean production model hence it is able to produce just-in-time products. Proper management has reduced wastage and production cost thus increasing efficiency. This has enabled the company to capture a huge market share.<\/p>\n Physical evidence <\/strong><\/p>\n In most companies, the interaction between consumers and manufacturers ends when a business deal is made. However, Toyota has maintained a tangible presence and a stable dealership with its new and old clients. This has ensured that consumers<\/p>\n [1]<\/a> Y. Monden, Toyota production system: an integrated approach to just-in-time<\/em>, 3rd<\/sup> edn, CRC Press, London, 2011, p. 76.<\/p>\n [2]<\/a> M.A. Cusumano, \u2018Technology Strategy and Management Reflections on the Toyota Debacle\u2019, Communications of the ACM,<\/em> vol. 54, no. 1, 2011, p. 35.<\/p>\n [3]<\/a> H. Takeuchi, \u2018The contradictions that drive Toyota\u2019s success\u2019, Strategic Direction<\/em>, vol.23, no.25, 2008, p. 29.<\/p>\n [4]<\/a> G. Challagalla, Brian,M. & Bernard, J., \u2018Marketing doctrine: a principles- based \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0approach to guiding marketing decision making in firms\u2019,\u00a0 Journal of Marketing,<\/em> vol. 78, no. 4, 2014, p.8<\/p>\n [5]<\/a> J.H. Heizer, & T. Barry, Principles of Operations Management: Sustainability and Supply Chain Management<\/em>, 2nd<\/sup> edn, Prentice Hall, New York, 2014.p. 89.<\/p>\n [6]<\/a> J.K. Liker, Toyota and Kiichiro Toyoda<\/em>, Handbook of East Asian Entrepreneurship<\/em>, 4th edn, New House Publishers, New Delhi, 2014, p. 29.<\/p>\n [7]<\/a> H. Oldani, “Six key principles for identifying and ensuring success in marketing channels.” Journal of Brand Strategy,<\/em> vol. 4, no. 2, 2015, p. 127.<\/p>\n <\/p>\n