Hybrid vehicle promotional strategies: Toyota versus Ford

Promotional and Advertising Strategies: Toyota and Ford

Toyota and Ford companies are the two leading automobile companies in their industry. Toyota, the Japanese-based automobile company, is currently the top most company in the world. Although the U.S.-based Ford Company is not second, it is also fairly positioned in the ranks of the most performing car assembling companies. Ford Company has of late joined the ranks of the few companies to release hybrid vehicles. In the hybrid race, Toyota leads the pack while Ford closely trails it. Ford Company is currently rebranding with the aim of reaping maximally from the market, which Toyota currently controls. The promotional activities of these two companies on the selling the hybrid products entail intensive advertisements as well as supportive Public Relations gimmicks meant to make the companies' products sell. The nature of the trade that the two companies engage in is one where information means a lot in the target of making sales. Clients normally go for the best commodity in terms of specifications and use. Hardly does the issue of price come in. These two companies often adopt different but comprehensive number of promotional activities that guarantee maximum sales. This paper aims to expose the promotional strategies and activities that Toyota and Ford have been using.

Comparison and contrast of the promotional and ad strategies

Promotional strategies for the two automobile companies differ. Toyota, being the leader in the market has been trying to stabilize its status as the market leader. Pursuant to this, the company has rolled a series of adverts with appropriate messages. For instance, the adverts that this company uses are all made with messages that give credit o the product rather than the company. The reason Toyota Company management has been able to maintain its position is purely anchored on the element of publicity and advertisement (Baker, 2010). More specifically, Toyota Company has been making all the potential buyers view adverts of the different nature. From the wordings of the adverts, one gets the conviction that whatever they are looking for has been found. Quality and appropriateness dominate these adverts. Toyota evidently uses social media to promote is vehicles with the different videos its makes about its vehicles. Toyota is seen to have beaten Ford with its ?#"OneBoldChoice" hashtag on social media. The company also secured a 90-minute video that aired on the recent Super Bowl Sunday. Toyota's prowess in the web in terms of product promotion and advertising cannot be underestimated

In the case of Ford, the company uses the real names of consumers as it was seen in the "Drive One" ad where someone named Chris featured. In the previous economic recession, Ford suffered and the government had to bail it out. This may not have gone well with majority of its consumers. In its strategies from promoting the sales of its vehicles, the company had a tagline "we-didn't-take-the-money." This was seen as strategy to emphasize on the quality of the vehicles irrespective of the financial challenges. The "Quality is Job 1" slogan also emphasizes on the company's legacy of good vehicle productivity dating back to 1980s yet promising a better quality in the days to come. The recent past has witnessed heightened promotional campaigns by these two manufacturers as they each go around the other's neck on this. The result of their campaigns has led to the market being divided among them. From a close analysis, the kind of promotional activities that these two companies engage in are geared towards outdoing each other. Therefore, by extension, the adverts are in a way a de-campaigning exercise on each other (Young, 2011).

Consumer-oriented promotions

Consumers are the main target of any promotional activity. In a promotional activity, a business will be interested in triggering interest in the consumers' mind to go ahead and make purchases. Promotions are carried out mainly to appeal to the consumers. Being the revenue sources for the company, they are better appealed to for the business to thrive. A consumer -- oriented promotion will happen in two ways. One is a promotion that will be informative of the product. Before any promotion is done, market research has to be conducted. The aim of market research is to obtain information about the consumers: their wishes, needs, as well as expectations about the products. When the information is gathered, the adverts are tailor-made to fit them. The aim of such adverts is to inform the consumers about what they need to know about a product basing on what they wish to know. An informative advert is effective in the sense that it will easily win acceptance of the consumers when the right information is passed (Holweg & Pil, 2009).

Secondly, a consumer-oriented promotion is one that seeks to appeal to the consumers' desires. From a market research, the company in question will be able to know the consumer's desires about a product. Once this information has been known, an advert is perfected to appeal to their minds about the best product they expect. It is not all the details about a product that consumers want to know, but just specific details that address their interest. It will be needless to mention few details of a product, however, true or appealing they may seem without incorporating the consumers' desires. After a careful analysis of the consumers' wishes and desires, management then makes adverts meet them. This kind of advertising is effective from the angle that it will not only please the senses of the potential consumers but also move them to make purchases. Advertising houses are always interested in making impacts that will positively change the view of consumers as well as move them to make a purchase. Appeal is both psychological and emotional, so understanding the target audience counts big (Schindler, 2012).

Pricing objectives

Pricing objectives are the strategies that a company will use to control prices for its products. Pricing is one of the techniques of marketing. It will determine whether products will be bought or not. During marketing, consumers will always go for the price that they can easily afford (Schindler, 2012). However, not just the price will be the controlling factor in marketing. Consumers will also go for the commodities that meet their quality preferences. Reasonably, a trade-off between quality and price is evident. One pricing strategy that Toyota can use as a leading company in this industry is to increase sales volume in terms of quantity. This is attainable through selling that focuses on meeting the consumers' affordability. This will entail producing a high quality as well as backing it up with a low price that can be reached by a majority of the buyers. Marketing done this way will go a long way in increasing revenue. This is because bulk selling will take place hence offsetting the low prices charged. Selling in bulk also leads to economies of scale. In fact, the cost of production will be rendered negligible by the fact that many earnings shall have been attained. This will support the growth of the company (Young, 2011).

Maintaining price leadership is also an avenue towards maintaining a lead in the market. This is attainable if the company in question sets a price that can be afforded by most of the consumers. The lowest price normally carries the day when quality is not a determining factor. For Toyota Company, maintaining price leadership will require that there be a balance between quality and price offered. The company needs to ensure that their prices are not too high or too low from the expectations of the consumers. For Toyota Company, engaging a price war with Ford Company will achieve the intended purpose of maintaining a lead in the market. A price war will involve selling at a price that is always lower than that of the competitor. This will throw the competitor off balance and will likely lock them out of business (Schindler, 2012).

At all times, the market must be galvanized in favor of the company by selling at the most affordable price. This will boost sales volume as well as reduce competition from other companies. Over its lifespan in the market, Toyota Company has managed to build a name for itself through quality production. Therefore, setting an affordable price will earn it a place in the market. It is likely to outsmart its competitors as it sells its brand.

To counter the offensive from the price leader, the other small companies within the industry can employ two strategies. One strategy is to focus their energies on quality. Once a high quality is attained; a company will be able to negotiate its space regardless of the prevailing price wars. A quality in the products will potentially act as a source of competitive advantage. In the marketing process, any advantageous activity that can wow the consumers can go a long way in attaining competitiveness. Secondly, the other small firms can attain a competitive advantage through customization. This is the exercise of responding to customer requests on how the products must be. Consumers get the chance to have the products in the form that they will love best. Although, this will result in an extra cost incurred, it is profitable since consumers can pay a highly for the added service. In the end, no loss will occur. Customization is the best way to satisfy a client (Holweg & Pil, 2009). Although large production might not take place, specialization in a specific potential market will do well. These two strategies are at the disposal of those companies that feel left out in the race for the market share.

Effective Advertising medium

The most effective advertising medium here is the Internet. The Internet offers a wide range of advertising options. Blogs, websites, social media are just but a few of the many other avenues available for making adverts on the Internet. One advantage that the platform has is on the issue of coverage. The Internet has a wide connection and is a global platform. Therefore, having an advert here will surely reach a wide coverage (Zimmerman, 2003). This is the objective of any advert. Through wide coverage, many clients will be able to be reached. The name of the company will also go beyond borders. Unlike the other media including the Television, social media adverts do not have geographical limits.

In the modern times, most of the businesses and individuals are going online on the web. Therefore, it will be a strategic move to shift the adverts here, as it will reach the potential clients faster. The Internet opens room for freedom of advertising. Given that, it is cheaper to advertize on the Internet than anywhere else is; there is room to describe the company's products in those adverts fully. This service might not be possible elsewhere due to costs and logistics (Zimmerman, 2003). Adverts placed on the Internet are also retrievable any time. In the TV advert, consumers will only be seeing the adverts for as long as the companies pay for them.

Conclusion

Promotional campaigns are inevitable in any business. Product awareness has to be conducted for a good to be sold in economic quantities. Promotion serves two basic purposes in the business. One, it makes the presence of a product known to the consumers. In this, the consumers get to know the products in terms of price, uses, as well as hazards. Other than announcing the presence of the products, adverts also serve to ward off competition from other companies. Adverts can be made in such a way that they portray a product as better than the rest of the market. Use of colorful words and other descriptive features can make a company's products made appealing. Toyota and Ford Companies have realized the importance of this and are using it fully to win clients to by their vehicles.