Toyota Target Market Analysis

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Toyota Target Market Analysis
With the sluggish economy, successfully marketing new automobiles has become extremely important. Each manufacturer has to identify and target a market segment. We were able to identify and analyze the target markets of Toyota, Buick, Kia, and Dodge. Toyota’s recent marketing targets women for several of their models. This is evident by viewing some of their recent television commercials. For example, the Toyota Prius “Harmony” commercial is geared toward women and evokes emotion. Another commercial showing a father and son at a carwash also targets women because it focuses on relationships and reliability, which are both important to women. Toyota has also released “Mommy Like” commercials for the Toyota Sienna mini-van. Most Toyota commercials focus on the brands reliability and safety, which are two of the most important features for women. Targeting women is a very smart marketing strategy for Toyota because women influence 80 percent of purchase decisions and make 50 percent of new vehicle purchases (Edmunds.com). The price for a new Toyota ranges from $22,000 up to $65,000. These prices reflect the company’s attempt to design vehicles from basic to luxury and market them to consumers from lower middle-class to upper-middle class. There are many high-end car companies. While there are companies who market more expensive cars, we chose Buick because of their advertising strategy. We have not seen many Buick commercials, however, the few times we have, it was advertised during a golf match. Each sport is appeals to different demographics. The demographic that enjoys golf include individuals who are “40 years old, married, [with a] household income over $85,000 . . . 60% of frequent golfers have $100,000+ in investments . . . 23% of golfers plan on buying or leasing a new car within 12 months” (Golf Direct Advertising). With a quarter of the golf market planning to buy a car in the next 12 months, Buick is wise to position their brand with consumers in this market niche, and is able to charge a premium price for their product. Buick is not the top high-end car; however, because they are still considered a luxury brand, their starting price of $26,000 is very reasonable for a market segment making over $85,000. Even though Tiger Woods is no longer their spokesperson, it is clear the majority of Buick’s marketing dollars are spent positioning themselves among the golf elite. On the other end of the buying spectrum is Kia. Kia has many advertising campaigns that they have debuted along with several promotions that tend to get people's attention. Currently, they use the slogan, "Kia, the power to surprise" but it's no surprise that the company has had an increase of sales this year, especially with the economy in shambles. To date, they are ranked #2 for South Korea in manufacturing, for the year. We think that KIA is trying to appeal to everyone, but the target market is for the younger generations, maybe new families, or newlyweds, single people, college students, lower income families, or maybe even first time car buyers. They advertise on television, the radio, and sometimes, less frequently, a local circulatory. They usually do advertisements specific for the different dealerships, instead of for the brand as a whole. Typically, sales bring people in the doors, but because the economy has been unstable and purchasing large industry items has slowed down, it is not enough. So in addition to the proclaimed sales, the low introductory rates, supposedly easy financing, they also include in a mild panic that they are over inventory and must start making vehicles move out immediately. In addition to the advertising, the promotions, and the new models being introduced, we found it interesting that they have decided to start altering their image. Typically known for their smaller sedans and coupes, they have started adding mini-vans, SUV's, along with the introduction...
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