Promotional and Advertising Strategies, Essay Example

Compare and contrast the promotional strategies used by two (2) different companies for a similar product within the category that you selected.

Answer:

The sales volumes for automotives significantly declined to the minimal per capita levels due to the energy crisis coupled with global economic crisis. Most automakers were thus subjected to huge financial pressures and severe effects due to losses incurred. Toyota Motor Corporation and General Motors are world giant automobile companies that were severely affected and thus require adoption of some promotional strategies to reverse this situation (Biswas., 2007).

The production processes at Toyota Motor Corporation were well defined and the company could produce relatively high quality products and this gave the company a competitive edge over General Motors. The vehicles designed at Toyota Motor Corporation met higher expectations of customer satisfaction because their major focus entailed performance, reliability, quality, utility, price, design, safety and economy. Toyota Motor Corporation also continued to introduce diverse innovative models aimed at achieving success that entailed introduction of ‘Hybrid Luxury Cars’ that were environmental friendly that facilitated  expansion of vehicle range at Toyota Motor Corporation.

Toyota Motor Corporation also made use of differentiated products as well as prices that created significant differences of the Company in automotive market relative to competitors (Biswas., 2007). The drastic growth at Toyota Motor Corporation is the root cause of substantial decline in the sales of General Motors products thus making Toyota the global leader in automobile industry.

General Motors also appreciated the importance of promotion strategy to achieve their goals and objectives. The product of General Motors meet international market standard and segmentation strategy has been adopted targeting diverse groups for their products. The perception of global market according to General Motors is that, only a single market exists. The vehicles produced at General Motors are supposed to meet the needs of diverse range of clients in consideration of cost as well as design and the different age, levels of income, occupation and family. The promotion strategy at General Motors is also inclined to the production of vehicles that are reasonably fuel efficient as well as crossovers. Brands, retail outlets and name plates are significantly reduced at General Motors to make best use of resources accessible to the company as well as growth strategies to maximize on the profitable processes in the company (Biswas., 2007).

Recommend two (2) ways in which a company within the selected product group could use marketing information to differentiate itself in the marketplace to gain an advantage over its competitors. Provide a rationale to support your recommendations.

The current business scenario requires that business enterprises make full use of marketing information to create a sustainable competitive advantage. Proper use of information in marketing drastically reduces the cost, creation of strategies planning and ultimately a sustainable competitive advantage.

The company must consider the use of data, software, hardware, applications, communication as well as people the use of marketing information in the company helps in Making management issue to be effective and efficient while integration as well as work progress are enhanced leading to additional benefits to the company (Carmondy, 2004).

Understanding of the world and its clients is one approach that a company could use marketing information to differentiate itself in the marketplace to gain an advantage over its competitors. The company should clearly understand the best approach of dealing with and handling clients so as to reign in supremacy of competitors. Product differentiation is a marked feature in Toyota Motor Corporation that allow the company to share information and facilitate market penetration. This development gives the company a competitive advantage of competitors including General Motors (Zarrella, 2009).

Propose two (2) uses for consumer-oriented promotions that could assist a company in both the short and long term for the product group that you selected. Provide a rationale for your response.

Use of social media is one of the most effective consumer-oriented promotion strategies applicable at Toyota Motor Corporation and General Motors. This can ideally involve production of branded videos that can last for as little as approximately 15 seconds that are posted to Face Book ads. This is aimed at reduction in the cost of advertisements while effectively reaching the targeted audience (Ryan, 2011). The 2014 Tundra, Rav4 and the 4Runner in Toyota Motor Corporation were the company brands that enviably responded positively to this promotion strategy. The videos proved to be economical and effective since clients could access them through their smart phones. Another social media approach involve monitoring social media such as Twitter and Face Book. This is an important promotion strategy that can be applied at Toyota Motor Corporation and General Motors that involved targeting major key words “Lexus,” “buy,” “BMW” and “decide”. Active shoppers of company products are able to be identified and the manner in which they made comparison of company products against the competitor (Ryan, 2011).

Brand loyalty is yet another effective consumer-oriented promotion strategy applicable at Toyota Motor Corporation and General Motors. Brand loyalty involves a situation that a customer repeatedly purchases a product from the same company in preference to other suppliers (Biswas., 2007).  It is an indication of the commitment of a buyer to repurchase or to continue using the company’s brand. It can be demonstrated by recurring purchase or other constructive behavior like the word of mouth promotion and advocacy for the company’s product. Brand loyalty involves built trust in the company’s product, and consumers are not prepared to change behavior against the company’s brand.

Analyze the strategic manner in which the leading company in this product group has made its pricing decisions by using one or more of the four (4) pricing objectives. Suggest two (2) actions that other companies within the same product group may take in order to differentiate themselves and gain a competitive advantage. Provide a rationale for your response.

Pricing decisions at Toyota Motor Corporation can be arrived at through the use of marketing mix which addresses individual elements implicated in sales as well as marketing activities of a product.  The ‘P’s include Product, Price, Place and Promotion (Pierce, John, Richard & Robinson, 2005). These elements are applicable in market segmentation, market targeting as well as product positioning. The first P stands for the product and implies to tangible item provided by the marketer to the consumers in the market. The product must display potential for satisfying and addressing the needs of consumers. Product must meet the right quality and conditions that the consumer desire.

The second P in the marketing mix stands for price, a very vital elements in the marketing mix which entails an important function in production coupled with entire activities associated with delivering the product to the market (Pierce, John, Richard & Robinson, 2005). Price calculation is based on articulate consideration of production cost, advertisement, promotion as well as distribution of the product to retail outlets that clients can access.

The third P involves place, which also entails distribution or sale of the product. The importance of this element is based on the fact that, the product must be delivered to an appropriate place where it will be readily available to the clients. Channeling of the product is an important consideration for customers to access it at the most appropriate time and lowest cost possible. Proper organization of these channels facilitates highest volumes of sale so that highest revenues are generated for maximum profits (Pierce, John, Richard & Robinson, 2005).

The fourth P involves promotion which also implies to marketing or communication to create awareness among the citizens (Pierce, John, Richard & Robinson, 2005). Information concerning a product can only be delivered to customers through promotion and thus this element is highly imperative. The message containing the features and functionalities of the product is delivered through promotion which enables the customer to make an informed decision.

Determine the most effective advertising medium for a company in the selected product category. Support your response with two (2) examples of the effectiveness of the chosen medium.

The most effective advertising medium for Toyota Motor Corporation would involve the use of social networking sites that comprise commissioning a developer to integrate a suitable profile that can potentially direct various ways of interacting with customers (Ryan, 2011).  Social networking site is effective advertising medium as it I capable of providing an avenue where the users can set up a profile that will promote the product offered by Toyota Motor Corporation. Such social networking site best suited for Toyota Motor Corporation is LinkedIn and face book. The use of social networking at Toyota Motor Corporation will smooth the progress of keeping with the contemporary trends in social media industry that keeps on shifting with similar shifts in technology as well as application software. The rate of technological evolution is so fast and even the present technology will be dumped on successful introduction of an innovative technology.

References

Biswas., T, (2007). Strategic Decision Making Under Uncertainty, St. Martin’s Press

Carmondy, B. (2004). Online Promotions: Winning Strategies and Tactics. California: Bill Carmody

Carter, B. (2012). LinkedIn for Business: How Advertisers, Marketers and Salespeople Get Leads, Sales and Profits from LinkedIn. Ontario: Que Publishing.

Pierce, I., John A, Richard B, & Robinson, J. (2005). Strategic Management: Strategy Formulation and Implementation. Homewood, IL: Richard D. Irwin.

Ryan, K, P. (2011). Social Networking. New York: The Rosen Publishing Group

Zarrella, D. (2009). The Social Media Marketing Book. California: O’Reilly Media, Inc.