(Aukofer 2001)
This price is considerably higher than the price of most compact vehicles. (Aukofer 2001)
However, because of the fuel efficiency of the car, and the benefit that the car provides for the environment, people are willing to pay this price.
Some dealerships do offer lower interest rates or cash back when purchasing the Prius hybrid. However, for the most part the price of the car is no haggle. In other words, the price of the vehicle is firm and there is very little or no negotiation concerning the price of the vehicle.
Another advantage of owning a Prius has been the tax deduction that owners of hybrid vehicles receive. According to the Internal Revenue Service (IRS) hybrid owners receive a $2,000 tax deduction. (2005 Toyota Prius Certified for Clean-Fuel Deduction) According to the IRS the Clean fuel deduction is designed to encourage people to purchase more fuel-efficient vehicles. (2005 Toyota Prius Certified for Clean-Fuel Deduction)
Distribution
The Prius is sold at Toyota dealerships throughout the country. However, most do not have the vehicles in stock because the demand for the vehicle is so great. Many who want to own the vehicle must be placed on a waiting list and may wit to receive the vehicle for six months or more. In years past Toyota has chosen not to increase production to meet demand because the company actually looses money by producing these vehicles. Aukofer (2001) explains "Toyota loses money on every one sold, and has no plans to ramp up production to meet the demand. In some respects, the Prius is a learning experience for Toyota and perhaps other manufacturers as well who want to be out front in the next automotive technology revolution.." Aukofer (2001)
Promotion
The only exception is that the company boast about the fuel efficiency of the vehicle. Although the ads look similar to the ads of other vehicles, the ads for the Prius tend to air less often. Perhaps this is due to the already high demand for the vehicle and the number of vehicles that the company produces. In many cases, the commercials contain the entire product line and not just the Prius. Toyota has used a mixture of television and print advertisement to expose the public to the previous. The company has been successful at promoting the Prius in a very subtle manner. The exorbitant price of gas and world events has also brought the car to the forefront on news shows.
The purpose of this discussion was to investigate the 2005 Toyota Prius within the car industry and analyze it from a marketing perspective. We found that this is a hybrid vehicle that has grown in popularity over the last few years. Our investigation asserted that this vehicle has been successfully promoted and continues to be synonymous with the renowned quality that Toyota is known for.
References
Aukofer, F. July 20, 2001. Toyota Prius Achieves Near-Instant Sought-After Status.. The Washington Times. Page Number: 23.
Rockhold John. 2004.
Prius Paves the Way for a Hybrid Future. Mother Earth News. Issue: 203. Publication Date: April-May 2004. Page Number: 23.
Overview 2005 Toyota Prius. 2005. Automotive http://www.automotive.com/2005/09/toyota/prius/#
2005 Toyota Prius Certified for Clean-Fuel Deduction.
2005. http://www.irs.gov/newsroom/article/0,id=130146,00.html
