Promotional and Advertising Strategies Essay

The author comes from Iran, with an ideological and religious fanatic political relation which avows and controls wholly of sparing and industrial activities with an armed to teeth minority. In such countries they toilette produce and sell whatever initiatory gear case with every determines that they wishing, and actually customers dumbfound not galore(postnominal) choices, and close to all of promotional techniques and strategies be meaning little So here we ar talking near free trade and free commercialise countries like US. This paper freshen and scrutiny the circumstances surrounding the promotional and advertisement Strategies for deuce simple machinemotive companies TOYATA and HUNDAI.The author is very curious ab forbidden those companies, beca affair HUNDAI (1967) began railway car bring issuepution almost 32 stratums after TOYOTA (1935) But now, in all aspects some(prenominal) companies atomic number 18 equal in flavour, grassing, marketing , price and customer value, even HUNDAI is shape up HMC (Hyundai Motor Company) was unknown brand with low quality and cheap price cars, but after it came in the US market converted its products to amply quality and luxury quickly and stealing loyal customers away from umpteen application pioneers But how was this late-moving car maker able to gain an utility in this extremely hawkish market? (Graf B, 2013)IntroductionDefinition of advertizement The term Advertising first appe bed in the 17th century. It has its root in the Latin word advertere, which means, tomake people notice or know. It can be roughly explained as to extensively notify the public. According to the dictionary of Chinese Etymology, the Chinese explanation of ad means, openly announce to the public, with the greenback of such as putting up notices or publishing advertisements in brand- smart-fangledspapers. (Yan Boqin, 1978)Definition of marketing Marketing is an economic term meaning promotion and d istribution. Originally applied in agriculture, it drew to a greater extent than than and more attention after the 19th century and spread rapidly. From economic, social, business and customers angles, the property of its definition can be determined (Li Zongru, 2004).For highlighting the brand in the eyeball of public and attracting new customers, product promotion is one of the essentials. There be many channels to promote a product or service. made promotions strongly dep wind ups on believe and culture of people, style of living, income level, g every organisenment policies and economical and industrial infrastructures. Some mansions use up multiple rules, while former(a)s may use different methods for unlike marketing purposes. Irrespective of the type of service or product, a strong group of promotional strategies can economic aid berth the participation in a favorable light with not unaccompanied current customers but new ones as well.The following argon exit t en promotional strategies 1- Con exams, 2-Social Media, 3-Mail Order Marketing 4- overlap Giveaways, 5-Point-of-Sale Promotion and End-Cap Marketing, 6-Customer Referral Incentive Program, 7-Causes and Charity, 8- scared promotional Gifts, 9-Customer Appreciation Events, 10-After-Sale Customer Surveys (Carl Hose. 2014 small(a) businesses Retrieved declination 2, 2014 from http//smallbusiness.chron.com/top-ten-promotional-strategies-10193.html)Comparing the promotional strategies utilize by Toyota and Hyundai for a similar productToday almost all of carmakers see a lot of experiences and they return access to modern and new technologies. So they can produce good quality and good innovation cars and as well offer good services to customers, e supererogatoryly in US, at that place is no way to sell any products with low quality and low customerservice. In result the best promotional strategies are those that include culture, attitudes and beliefs of the people. The following a re some examples of such strategies. Green Environment change magnitude public awareness about environmental protection, governments forced to implement unverbalised regulation and criteria for motorcarmobile firms.Toyota published on its sack upsite1. Diversifying energy sources Toyota is evolution various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a golden society and clean world. 2. Fuel booth By generating electricity from hydrogen, Toyotas arouse cell fomites are not only environmentally kindly theyre also highly energy efficient. With such eco-friendly characteristics, Fuel Cell Vehicles are the next tempo toward achieving sustainable mobility. 3. Plug-In Hybrid Introducing the next step for eco-friendly cars a combination of the proven engineering of current crown of thornss with home recharging. It has an change m agnitude electric range and produces lower emissions.4. Measuring environmental issues surrounding fomites For more improvements in efficiency, Toyota proactively manages power train efficiency, reduces vehicle load, and controls energy management by integration of fuel-saving technologies such as charge control, idling stop, etc. 5. respective(a) vehicles Along with our emphasis of conventional vehicles and hybrid vehicles as fundamental magnetic core technology while pursuing further advancement. 6. Alternative fuels Based on these core technologies, Toyota will develop next-generation vehicles utilizing alternative fuels such as vaunt fuel, electricity and hydrogen. (Retrieved December 2, 2014 from http//www.toyota-global.com/innovation/environmental _technology/) Hyundai published on its nettsite1. muddied Drive Our Blue Drive technology gives you lower pollution and high performance. Blue Drive is a philosophy that guides Hyundai in its apparent movement to call on the self-propelled attracter in sustainability. Its helped focus our engineers and designers on creating flatboat vehicles, developing more efficient power trains and even inventing proprietary hybrid technologies.2. Plug-in and zero-emission In the future, Blue Drive will expand to include plug-in hybrid vehicles, zero-emission electric vehicles and fuel-cell vehicles that run entirely on hydrogen. Their only emission is water. 3. electrical hybrid Hyundai introduced the first electric hybrid with electrifying performance. Our engineers have invented the industrys most advanced hybrid vehicle. 4. New battery different other hybrids on the market, ours uses a patented Lithium Polymer battery. It has 40% slight volume its 25% lighter and 10% more efficient. The battery also has a longer life-span-it comes with a liveliness warranty guarantee. So you can get hold good about preserving the environment for the life of your vehicle. (Retrieved December 2, 2014 from https//www.hyundai usa.com/new-thinking/environment.aspx) Slogan An advertising slogan is usually a short tagline less than five words that tells potential customers the benefits they can behave when choosing your product or service, or establishes your friendship brand. (Kristen Hamlin, 2014 Retrieved December 2, 2014 from http//smallbusiness.chron.com/ importance-ad-slogans-31343.html) 1. Toyotas self-possession slogans marketing efforts in North America have focused on emphasizing the positive experiences of ownership and vehicle quality. The ownership experience has been posted in slogans such as You craveed for it You got it (19751979) Oh, what a feeling (1979 September 1985, in the US) Who could ask for anything more? (September 1985 1989) I love what you do for me, Toyota (19891997) Everyday (19972001) bring in the feeling (20012004) Moving Forward (20042012) and Lets Go Places (2012present).2. Hyundais Brand slogan NEW THINKING. NEW POSSIBILITIES. reflects the will of Hyundai Motor Company to relieve oneself new possibilities to benefit the world and its people by encouraging and developing new thinking. All members of Hyundai have the brand slogan deeply scratch in their hearts as they move forward in their effort to provide new values and experiences desired by immediatelys customers through innovative ways that are unique to the brand, driven by new thinking about customers and cars.( Retrieved December 3, 2014 from http//worldwide .hyundai.com/WW/ corporate/Corporate Information/BrandSlogan/index.html) New Compact Vehicle schema According to the intersection India President, compact car sales are expected to double by 2018 from around one million units in2013.This surge in requisite in expected to be fueled by rising spendable incomes in the second most populous country in the world, and also owing to the increasing demand for fuel-efficient smaller cars due to rising fuel prices.( Trefis Team ,2014. Retrieved December 3, 2014 from http//www.forbes .com/sites /greatspeculations/2014/06/13/tata-motors-looks-to-improve-passenger-car-sales-by-penetrating-the-compact-segment/) 1. Toyota The automobile market in appear markets is growing each year in tandem with the economic emersion of each country. Within those markets, in that respect has been marked growth in the sales of compact vehicles, so Toyota is promoting a new compact vehicle dodge that emphasizes the compact vehicle lineup and seeks to meet the demand of consumers in emerging markets.2. Hyundai The South Korean automaker ranked seventh among mass-market brands in the this years U.S. Initial Quality Study by J.D. Power and Associates, top-flight such brands as Toyota, Infiniti, Audi and Lincoln. Hyundais Accent compact and Elantra small car were named among the top three cars in their segments.(Hans Greimel, 2011. Retrieved December 2, 2014 from http//www.autonews.com/article /20101206/RETAIL03/ 312069982/hyundai-plans-new-brand-strategy) Financial function Strat egy Every year, millions of people around the world transition out of poverty in any number of waysby adopting new farawayming technologies, investing in new business opportunities, or purpose new jobs, for example. Effective tools for saving, sending, and borrowing money and mitigating financial risks can help people weather setbacks and achieve greater financial stability over the long term. (Retrieved December 4, 2014 from http//www. gatesfoundation.org/What-We-Do/Global-Development/Financial-Services-for-the-Poor)1. Toyota Toyota Financial Services has constructed a global web that covers nigh 90% of the markets in which Toyota sells its vehicles. Mainly concentrated on auto loans, leases and Toyota dealer floor plan requirements, TFS provides auto sales financing to approximately 5.4 million customers. Thus effectively helping them in making their own cars more affordable to their potential consumers all around the world. Again existence a strategy that helps them a strong er competitor in the market.2. Hyundai finished our service brands, Hyundai Motor Finance and Kia Motors Finance, we provide financial products tailored to meet the needs of Hyundaiand Kia dealerships nationwide, including dealer inventory and facility financing. And, through these dealerships, we provide indirect vehicle financing and leasing solutions to over 1 million retail customers. Our subsidiary, Hyundai Protection proposal, Inc. offers vehicle service contracts and other vehicle protection products under the Hyundai Protection Plan and Power Protect brands. (Retrieved December 2, 2014 from http//www. Hyundaicapital america.com/hca.aspx)Two uses for consumer-oriented promotions that could assist a company in both the short and long term for the carmaker companiesWhat are consumer-oriented sales promotions? There are two points of view 1- Retail Promotions exist of inducements offered by retailers to consumers includes retail coupons, price discounts, double coupons, speci al displays, features etc. 2- Consumer Promotions detain of inducements offered by manufacturers to consumers includes manufacturers allowances, bonus packs, coupons, samples, rebates, etc. There are some reasons for the importance of the sales promotion.First, the growth of retailer power in distribution channels has led to an excess in consumer promotions. Some seasons, manufacturers make special offers to consumers because a powerful retailer insisted that they do so. another(prenominal) time, as a way of neutralizing retailer power by intensification the bonds of loyalty consumers may feel toward the brand. Either way, retailers frequently serve as the driving force bathroom consumer promotions.Second, the type of competition has converted significantly during recent years resulting in ever greater consumer price sensitivity. The growing of brands and brand extensions, intensity divide consumer markets, and lower brand loyalty have combined to make consumers lots more aware of price given that many product categories are populated by several competitors.Third, price deals have endure the practice rather than the exception for many products. Rebates on certain brands of automobiles, department investment trust sales, and coupons on many grocery items are only a fewer areas where consumers havegrown to expect price breaks. Indeed, the expectation is more than, when possible, many consumers will wait for promotional offers rather than buy with no deal.Fourth, advertising clutter has forced marketers to point out new ways of get consumer attention. Product benefits alone frequently prove insufficient to prompt consumer action a great deal less get their attention. Thus, marketers increasingly look to sales promotion to find ways of breaking through to customers who face a constant flush of promotional messages.Eventually increasing of consumer promotion can also be attributed to more pressure on marketing management for short-term results. Investo rs want to immediate bottom-line results rather than the long-term health or stability of the companies in which they invest. Sales promotions are tools to increase near term sales. barely, as their use becomes more common, their damages become regular and recurring and therefore potentially self-defeating. (Retrieved December 5, 2014 from www.udayton.edu//Consumer%2520Promotion.p) The strategic manner in which the leading car company has made its pricing decisions by using one or more of the four pricing objectivesThe four Ps of marketing is the combination of product, price, place (distribution), and promotion. Marketers develop strategies around these four areas in marketing to enhance branding, sales, and profitability. (Ross Gittell, 2014, Retrieved December 5, 2014 from http//catalog.flatworldknowledge.com/bookhub/reader/3157?e=gittell_1.0-ch06_s02)Price is the only revenue generating element amongst the 4ps, the rest being constitute centers. Pricing objectives or goals g ive the company didactics to the whole pricing process and consider the following 1- Survival 2- Get competitive advantage 3- Financial, marketing, and strategic objectives of the company 4- Enhance image of the firm, product or brand 5- Hold price leadership 6- Increase market share 7- Consumer price point and elasticity 8- Available resources 9- Catch target of return of investmentand sales 10- Prevent new entrants 11- Match competitors prices.Toyota gets citation for being the most known brand on the market heretofore the Corolla comes up nowhere in the competitor charts in terms of price, example distinction, or performance (TrueTrends, 2012). Providing a competitive advantage for the Corolla requires differentiating the car in pricing, quality, service, innovation, brand, convenience, and anywhere else that makes it more desirable over its competition (McCrimmon, 2008).How Toyota as a leading company can offer lowest prices? i.e. $89 a month for lease The answer is by maint aining its lowest costs. Along with distinction Toyota also uses low cost to try and gain a competitive advantage in the automotive industry. Toyota is (or was at the time) the low cost maker in the industry. Toyota achieves its cost leadership strategy by adopting lean production, alert choice and control of suppliers, efficient distribution, and low servicing costs from a quality product.(Michael E. Porter, 2013) This quote from Michael Porter sums up how Toyota achieves this low cost strategy. Through research, it is evident that Toyota is still the low cost leader in the automotive industry.Societal trends have moved away from an individualistic culturewhich identify social status and hierarchy based on material possessionsto an environmentally aware society (Grewal & Levy, 2012). With consumers minds wrapped around things like fuel mileage, water-washed emissions, and hybrid technology we find them moving further away from SUVs and trucks (Farooq, 2012). However, the 2013 C orolla is foreshadowed to be outshined by the Dodge Dart, as it loses some of its competitive edge in pricing and other award winning features (TrueTrends, 2012).By 2012 Toyota is planning to have more than 20 models that use batteries to extend fuel economy good like their Prius (Krolicki). Although they have not been as aggressive in the electric car market recently, like their competitors, they are planning to release a rechargeable version of their Prius by June 2012 (Krolicki). This re-chargeable version will position Toyota to crusade to take over as a low cost leader of hybrid technologieswithin the market, which supports Toyotas overall strategy of low cost (Krolicki).Two actions that other car companies may take in stage to differentiate themselves and gain a competitive advantageHyundai rightly mute the consumer motivations to create magnetic products, price them strategically, position them sharply and keep making the magnetism more potent. Having understood the finer differences in consumer motivations, it opted for sharp cursor reasons-to-buy differentiation over the blanket-all approach taken by most of the other players. It is an aggressive marketer. It focuses on medium and low price products. Hyundai has also started premium products range to capture the growing market. (Anshuman goyal, pricing strategy of Hyundai, 2007 Retrieved December 9, 2014 from www.hyundai.com)The segments are based on type of customer like age group, attitude, end use of product, demographic behavior and purchasing power, status of the people of the region. each competitor has its own strong point and value and position there product so as to attract maximum number of customers. (Kottler, Keller, Jha, Koshy, 2007, Marketing Management)Hyundai brand continues to dominate the market for premium cars, despite increasing competition. The firm should first consider the competitors price. If the company i.e. Hyundai contains features not offered by the nearest competitor , it should mensurate their worth to the customer and that value to the competitor price. Competitors are more believably to react when there is high competition. In case of Hyundai, many products are there such as Sonata, Santro, Hyundai i10, Accent etc. Hyundai continues to provide unmitigated competition to Honda in all the segments and poses an even bigger threat to magnification plans of Hyundai. (Anshuman goyal, pricing strategy of Hyundai, 2007 Retrieved December 9, 2014 from www.honda.com) Two examples of the most effective advertising medium for a Car companyThe TV advertising have been having the largest audiences in all ages, but car buyers are specific ages who have not enough time to watching TV evenless than one hour per day, because they are too busy in today competitive era. Instead the internet via smart phones and computers is like a touch sensation became as a inseparable part of their life, at any time more than 15 hours a day, and even when they are eating, showering, walking, sporting, biking, swimming, and in any place even in high mountains and deep forests, roads and villagesAnother reason for effectiveness of internet rather than TV is new give-and-take algorithms via data mining analyze the behavior of customers and put proper Ads to the web pages connect to the target customers with very lower advertising costs. As a most important subject which advertisers should also pay attention to it is pagan differences, they have to be careful since cultures vary in different countries, they must understand the local audience culture before releasing new commercials, in order to avoid any misunderstanding.Another internet related way for advertising can be the online promotional games, such as Toyotas use of MSN commercial games to promote its products, for instance. There are two interactive contents focusing on entertainment fun activities and downloads. both(prenominal) of them were found in about one third of the 100 web sites, respectively. Fun activities were also utilized to promote the brand in the sites and they are not related to scores or performance.Activities for fun included practical(prenominal) test drive (www.gmc.com), virtual plant tour (www.cocacola .com), virtual auto show (www.lexus.com), e-cards (www.saturn.com), a coloring sheet (www.wendys.com), a virtual bark beauty analysis (www.neutrogena.com), and so forth. Downloads promoting and affiliated with the companys brand were also analyzed. Desktop images such as wallpaper and icons were the most offered downloads, followed by music (Seounmi Youn, 2001, Retrieved December 9, 2014 from http//list.msu.edu/cgi-bin/wa?A3=ind0209c&L=AEJMC&E =0&P=3326464&B=_&T=text%2Fplain%20charset=us-ascii)For the carmakers, another impressive promotion method is complete test ride. The buyers are very keen to getting experience to drive with a brand new car and having the probability to really feel its advantages and disadvantages. For encouraging the cus tomers to more participating in test drive activities, offering some gifts can always increase the bear on andwillingness of then. Getting the best result always does not correspond with the cost of the advertising. So carmakers should choose their advertising media in accordance with today era. However as always, inviting stars to speak for different models with different appeals will have so effectiveness to increasing the public awareness.ConclusionSome observers suspect that Hyundais recent successes may be anomalies, abetted by the difficulties that the companys U.S. and Japanese competitors faced after the global economic crisis, the rise in the hankers value, Toyotas wave of recalls, and the 2011 earthquake and tsunami in Japan and Fukushima thermonuclear disaster. Others say that the companys highly protected home market has enabled its growth, allowing Hyundai to establish a global presence while its domestic competitors encumber themselves to tiny slivers of the Korean market.But the single factor that has made the most difference is the companys own interest in build world-class capabilities. Starting in 1998, Hyundais leaders set out to develop the kind of prowess the company would need to become a global automobile powerhouse, able to hold its own in the coupled States and other fiercely competitive markets. Early on, that meant offering a door-to-door warranty and taking specific steps to dramatically improve its quality ratings. Once customers were convinced of the brands reliability, Hyundai added other capabilities, such as design, which led to a more diversified product line and more stylish features. Meanwhile, it developed a knack for getting the word out through clever, consistent marketing.The result is a coherent mix of quality improvement, design, and marketing that gives Hyundai a clear advantage over its industry competitors. Although these are required capabilities at all automakers, Hyundai has excelled at combining them over the ancient decade, and its sales numbers reflect this success. The companys effort to become a world-class automaker is beginning to pay off, and its far enough along that its story can be credibly told. (Source Strategy & Business. February 26, 2013. Retrieved December 2, 2014from http//www.strategy-business.com/article/00162?pg=all)ReferencesAnshuman goyal, pricing strategy of Hyundai, 2007 www.honda.comAnshuman goyal, pricing strategy of Hyundai, 2007 www.hyundai.comCarl Hose. 2014 Small businesses http//smallbusiness.chron.com/top-ten-promotional-strategies-10193.htmlHans Greimel, 2011. http//www.autonews.com/article /20101206/RETAIL03/ 312069982/hyundai-plans-new-brand-strategyKottler, Keller, Jha, Koshy, 2007, Marketing ManagementKristen Hamlin, 2014 http//smallbusiness.chron.com/ importance-ad-slogans-31343.htmlhttp//www. gatesfoundation.org/What-We-Do/Global-Development/Financial-Services-for-the-PoorRoss Gittell, 2014, http//catalog.flatworldknowledge.com/bookhub/reader/ 3157?e=gittell_1.0-ch06_s02Trefis Team, 2014. http//www.forbes.com/sites /greatspeculations/2014/06/13/tata-motors-looks-to-improve-passenger-car-sales-by-penetrating-the-compact-segment/Seounmi Youn, 2001, http//list.msu.edu/cgi-bin/wa?A3=ind0209c&L=AEJMC&E =0&P=3326464&B=_&T=text%2Fplain%20charset=us-asciiStrategy & Business. February 26, 2013. http//www.strategy-business.com/article/00162?pg=all