Toyota Company is one of the leading motor vehicle industries in the world. It has been enjoying a complacent performance in the economy with a large market share than any other automobile industries. However, prior to the economic volatility that was experienced in 1998; the company has been rocked with a decrease in performance. There has been increased competition across the economy characterized by the emergent of new industries. In an attempt to combat these changes in the economy, an intensive marketing was undertaken. This was aimed at achieving the desired strategic goals.
Marketing audit of the strategic implementations and acquisition of the large market share was the vital management’s objective. Marketing audit is a detailed examination of the company’s internal marketing activities, its marketing system and its marketing environment. The marketing environment consists of both the internal and external forces that directly or indirectly influence an organization’s acquisition of inputs and outputs. These inputs include financial, human, raw materials, and information, while the outputs include service, goods, and ideas. Ideally, a marketing environment incorporates six forces: economic, legal, political, competitive, technological, and socio-cultural.
Marketing Audit Checklist
It is necessary to prepare an information checklist for the marketing audit plan of Toyota Company, before commencing data collection process. The exact content will vary among the companies in the same motor vehicle industry. This depends on the segmentation that the company want for sales, the split of the company’s customer base, and the competitor activity or the market shares. The Marketing audit checklist for Toyota Company is illustrated as follows;
|Element to be Audited||Effective||Ineffective||Action required|
Toyota Cars’ Sales
Are the total number of customers by:
Toyota’s competitive advantage has always been built around reliability and quality of its marketing strategies. The development and manufacture of products has increasingly been outsourced. It is difficult to maintain high quality standards in the economy. Fast growth has placed a considerable strain on the supply chain. Globalized competition between industry giants tends to result in the same fight being replicated in each corner of eth world. Traditional national firms have been outmanoeuvred by aggressive fast-growing international competition. They are better at exploiting the technical changes and other globalization effects on the economy.
Marketing Audit Tools
Marketing Audit plan will involve the use of various marketing tools in assessing the environment and competitors in the economy. The vital tool to analyze external environment is PEST. This involves the analysis of Political, Economic, Socio-cultural, and Technological changes in the economy. Environmental conditions affect the entire strategic management process. As Toyota operates in a vacuum, the key to effective marketing plan and enhancing the development of a positive decision will be of importance to the organizational performance. As Toyota Company is a multinational organization, which ventures its activities in the whole continent, the sale of its products will need to comply with the political trends of the target population.
PEST analysis is an analytical tool that enhances an organization to monitor and evaluate the weak signals in the hope of recognizing the discontinuities that shape the environment. Ideally, articulation to PEST analysis as a tool for marketing plan will enable Toyota Company to detect and analyze the external environments’ trends that will enhance its competitiveness in the economy.
Consequently, another marketing tool that will be of the essence when preparing the marketing audit plan by the management is the SWOT analysis. This involves the analysis of the company’s strengths, weaknesses, Opportunities, and Threats in an attempt to realize an effective business functioning and operation. Toyota Company has strengths that make it superior from other companies in the industry. For instance, the brand name ‘Toyota Inc’ is itself marketable and has enhanced the company to realize high market share in the economy. In addition, undertaking the Marketing Audit for Toyota will also involve the scrutiny of the weaknesses, threats and opportunities and devise ways in which the management can maximize on the opportunities available in the economy to market its products. In addition, it would devise ways of mitigating or minimizing the threats and weaknesses that are evident in the economy.