Introduction
According to the case study, Toyota Prius has dominated the United States market yet its introduction to the market was later than other vehicles. It is paradoxical that a small hybrid sluggish vehicle not only hit the America market where SUVs dominated the roads for several years but also turn out to be the most selling. The many reasons that led to the success of the Prius need an analysis hence this paper will discuss the macro environmental factors that have affected the marketing of Prius as well as hybrid marketing strategies.
Macro environmental factors affecting the marketing of Toyota
Demographic
Demographic factors involve the human population in terms of the size, density, gender, occupation, race and age (Cirpicki, Malcolm, & Byron, 2008). It is an important factor because it is concerned with people who make up the market and besides, it is constantly changing.
For instance, the population is growing at an alarming rate, ethnicity and racial diversity is increasing and many people are well educated. As the population grows swiftly, the demand for vehicles increases and the buyers are likely to make a scrutiny of an automobile before procuring it.
This analysis involves improvement in the automobile in terms of the carriage capacity, attractiveness and even durability. As a result, Toyota focused on the group of people fascinated by the sophisticated technology of the Prius and who are willing to try it.
The more educated the people are, the greater their concern about the environment (Qahtani & Messahel, 2010) thus Toyota targeted the customers who were conscious about the environment. It achieved this by introducing a Prius that uses electricity and gas thus decrease in environmental pollution. Besides, the automobile does not make noise therefore decrease in noise pollution.
Economic
This factor affect the buying habits of the consumers and the income earned together with the market value influences it (Crano, Skenderian, & Alvaro, 2008). The skew of the income distribution in the US is upper, middle, working and under class therefore, marketers need to monitor the economic changes cautiously so that the trend helps them to prosper and not to suffer (Crano, Skenderian, & Alvaro, 2008).
The vehicle industry has been reacting to these economic changes accordingly. For example, the stiff competition forced the Toyota to make enhancement that are economic sensitive on the Prius. As a result, it launched the second generation that runs on gas, electricity, regenerated energy or both. This saves on the fuel cost thus making Prius a preference of many buyers.
Natural
This factor entails use of resources that are natural so that consumer interest increases (Garry, 2009). Besides, it involves the raw materials used during the manufacturing process as well as marketing (Cirpicki, Malcolm, & Byron, 2008). For instance, raw materials are inputs while environmental pollution is an example of how marketing activities affect the environment (Garry, 2009).
As oil prices rise, buyers are attracted to automobiles that are fuel efficient and less dependent on oil and for that reason; Prius is preferred to other vehicles. To add on this, many people are concerned about environmental pollution and would do anything to protect it. This concern has made Prius dominated the market because it consumes less fuel and has little emissions hence leading to environmental protection.
Technological
This factor entails forces that create new products and marketing opportunities (Kotler, Armstrong, & Saunders, 2010). Apart from being a dramatic force, it shapes the consumer destiny, and the challenge is to make affordable products. Prius vehicles are powerful than other automobile and consume less resources hence technologically sound.
Political
This factor involves the law and policies that influences various organizations in a society (Garry, 2009). The car owners get rewards of tax breaks from many states. In addition to this, some organizations give employees incentives after the purchase of hybrid. Moreover, hybrids can use the car-pooling lane hence people travel quickly to work. To sum it up, many companies that provide insurance cover give discount to hybrid cars.
Cultural
This factor deals with the institution and forces affecting the values, behavior and perception of the society (Meredith & Zielkel, 2009). Toyota Prius introduction to the market was timely. This is because the oil price was high and the automobile available were not cost effective when it comes to fuel consumption hence people needed to cut down on the cost. As a result, Toyota Prius was preferred as it solved that problem.
Marketing strategies
Marketing is delivery of a product that satisfies the customers need after conceptualization (Kotler, Armstrong, & Saunders, 2010). It involves understanding the market needs, selecting the interested market, describing the market with needs, creation of a product that meet their needs, delivery of the product and getting feedback from the customer (Meredith & Zielkel, 2009).
The main objective of marketing is to increase the sales hence, I agree with Mr. Stewart argument that “if you want to get a lot of hybrid on the roads, you put them in vehicles that people are buying now” because it will lead to an increase in the sales therefore more hybrids on the roads.
To begin this argument, Mr. Stewart has analyzed the market needs accordingly. It is a fact that people are buying cars not because of what it contains but because they need them. The car is one of the major necessities and by putting hybrids on them; it will definitely be bought hence an increase in the sales. For instance, Americans like big cars, therefore the sale of the hybrid will be greater if put on big cars and not the small ones.
Although selection of an interested market portrays a challenge in marketing, Mr. Stewart has conquered it successfully. He has targeted a group of people who are interested in cars because of what it is capable of doing and not because it contain hybrid. By putting hybrid in vehicles that people are buying now, it will lead to an increase in the sales.
Successful marketing requires a description of the market needs (Kotler, Armstrong, & Saunders, 2010). In Mr. Stewart statement, it comes out clearly, that people may need the hybrid although they do not know its advantages. The hybrid not only saves on fuel cost but also emits less to the environment hence protects the environment from pollution.
By integrating hybrid on the vehicles that people are buying, the environment will be in protection against global warming. As people realize the importance of the hybrid, the sales will increase. On the other hand, if hybrid is on the vehicle that people do not use now, the sales may not be great and many people may end up not realizing the advantages of the hybrid.
Mr. Stewart statement comes out clearly that the new product meets the consumer needs in a variety of ways. For example, the hybrid will enhance the performance of the car, as people will arrive at their destination quickly. Secondly, the consumers will save on the cost of fuel and finally the environment pollution will reduce. This will increase the sale of the hybrid because many people like to get the best services from whatever they possess.
It is evident that by putting hybrid on the vehicle that people are buying now, advertisement becomes easier. This is because as a person uses the car that has hybrid and realize its benefits, he will tell it to another person who will also tell someone else and in the end, the message reaches so many people. Eventually, the number of hybrids on the roads will increase as many people get to know its advantages.
Conclusion
Toyota Prius has dominated the market because of good marketing skills. Its struggle to deal with the macro environmental factors has made it produce an automobile that is appealing to many hence an increase in the sale.
References
Cirpicki, S., Malcolm, W., & Byron, S. (2008, November 13). Managers Knowledge of Marketing Principles: The case of New Product Development. Web.
Crano, W., Skenderian, J., & Alvaro, E. (2008, February 9). Marketing Strategies and Technique. Web.
Garry, R. (2009, July 3). The Most Important Marketing Principles of All Time. Web.
Kotler, P., Armstrong, G., & Saunders, J. (2010). Principles of Marketing. Boston: Pearson Education Prentice Hall.
Meredith, L., & Zielkel, M. (2009, April 14). Strategies and Marketing Ideas. Web.
Qahtani, K., & Messahel, F. (2010, January 20). Bussiness Principles for Marketing Practically Applied. Web.