Process: Developing market strategies

Question 1

Why is it important to develop market strategies

Answer 1

Marketing strategies are actions undertaken to achieve the business’s marketing objectives through the marketing mix.

The marketing mix refers to the combination of the four Ps. Once the four Ps are established, the business must then determine the emphasis it will place on each of the variables. This will largely be determined by where the product is positioned or its stage in the product life cycle.

For example, a product that is being marketed with an image of exclusivity and prestige will require a marketing mix totally different from a no-frills, generic item.

Question 2

Price

Answer 2

The price is the amount of money a customer is prepared to offer in exchange for a product. It refers to the method or strategy the business uses to decide their prices.

Question 3

Product

Answer 3

A product is a good or service that can be exchanged for money.

Question 4

Promotion

Answer 4

Promotion describes the methods used to inform, persuade and remind customers about a business’s products.

Question 5

Place (distribution)

Answer 5

Place is the element of the marketing mix that deals with the channels of distribution: the ways of getting the product to the customer.

Question 6

Toyota case study

Answer 6

Product:

Toyota has a diverse set of products, over 40 car models in total, which are broken into further categories.
Trucks
Sedans
SUVS

Place:

Much of Toyota’s production takes place in its country of origin: Japan. Toyota manufactures vehicles and components in 26 other countries and regions, primarily North America. Toyota makes use of a number of retailers and dealership outlets for distribution of their products so as to reach maximum customers. For distribution Toyota use showrooms, exhibition centres or even special events, which also adds to the marketing of the brand.

Promotion:

Toyota uses a wide range of e-marketing advertising and personal selling techniques to reach consumers, including newspapers, billboards, TV, radio, social media, flyers and brand ambassadors.

Price:

The pricing strategy in the marketing mix of Toyota is based on the market. Toyota cars’ price range starts at $20,000 and premium models can go up to $100,000. Their prices are flexible to changing market conditions and prices of competitors thus affecting their selling prices. The price range of their cars changes according to the model, add options and make.