What Microenvironmental Factors Affect the Introduction and Sale of the Toyota Prius? How Well Has Toyota Dealt with These Factors?

Question 1:

What microenvironmental factors affect the introduction and sale of the Toyota Prius? How well has Toyota dealt with these factors?

There are 4 factors in the microenvironment that effect the introduction and sale of the Toyota Prius.

1. Company:

Toyota spent $ 15 million in 2002 touting the Prius. There were print ads in magazine such as Newsweek and Vanity Fair. Because it expects its product to set a luxury vehicle rather than another car. Coordination within the company is required to successfully introduce the Prius and build a strong line. Some external incentive that were favorable by the company some states gave permits allowing hybrid to dive on highway occupancy vehicle, some provided parking and other.

1. Customers:

Toyota had make a tag lines such as “When it sees red, it charges”. The headline captured the consumer’s attention through ambiguity. It shows that the Toyota has carefully studied the consumer market and adapted its marketing accordingly to better satisfy consumers need and wants as they want better design, roomy interior, fuel efficiency and storage space.

1. Competitors:

Toyota managed to jump into the market earlier than their competitors, which was a major aspect, as competitors will have to enter the market later as companies in America were slow to introduce the hybrids. Toyota were willing enter the market and establish technological lead as well as fuel efficient and environmental friendly product. All automakers concede that they will eventually have to move to hybrids to raise gas mileage and lower emissions, and all of them have plans to do so.

1. Public:

Toyota promotes their cars with press release and through the television advertising on channels such as Discovery, the History Channel, the Learning Channel, and MSNBC. The public is favorable toward a company or product that aims to reduce lower gas mileage and reduce emissions and is environmental friendly.

Questions 2:

Outline the major macroenvironmental factors that have affected the introduction and sale of the Toyota Prius. How Toyota dealt with each these factors?

There are four (4) factors in the macroenvironment that affected the introduction and sale of the Toyota Prius.

• Economic:

Toyota offers a tax deduction but price of the cars is relatively similar to what Americans customers are paying for their cars. People are willing to pay and go the extra mile to be first owner of a Prius. The success of selling the cars leads to increase in supply resulting in lower price.

• Technological:

Toyota aimed   the car to “techie” customers and introduced it in their marketing campaign. The car is technologically advance compare to other vehicle such as the batteries brand vehicle adds n such as cruise control options, six cd player and the dashboard allowing the customers to play video games and connecting devices to their laptop or even watch TV.