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Marketing Co mmunication Channels in
TOYOTA
Marketing Principles
BUSI 3313 Sec.202
Farah Al-Turki 201002577
Nourah Alsubaie 200900021
Sokaina khuraidah 200900401
Muneerah AlKhaldi 200901568
Fatima Alsaif 200901560
Sabreen Maqladi 200800225
Dr. Kumarashvari Subramaniam
Fall 2012/2013
SUMMERY
This research discusses the marketing communication channel in Toyota company.
Toyota is very popular company and it is known as best car manufacture all over the world.
Production strategy in Toyota is very processional and accurate and this performance will lead
to have a customer satisfaction and loyalty. The literature review explains how the marketing
communication channels are important to every organization. Through talking about; first, how
social media helps business to communicate with customer and have their feedback directly. For
example, Face Book, Twitter, YouTube and linked In. Second, how television campaigns are
very useful tools for advertising and then build a relationship between Toyota campaign and
social media. Third, how the magazine and newspapers print campaign are still valid tools;
considering the fact that they are outdated, in order to advertise wide range of customer. Also
billboard advertising, which is crucial and effective tools for advertising, especially in Saudi.
Finally, e-mail marketing; which is an environmentally friendly method, yet is not considered
highly effective. Toyota's highest marketing budget is allocated for TV advertisement
campaigns, second highest is allocated to printed advertisements, third highest is allocated to
social media, while the least budget is allocated to billboard advertisements. For analyzing
and collecting data for Toyota marketing communication, it has been used primary and
secondary data. Primary data was for interviews and questioners and it explains how the
survey and interviews questions were useful for gathering information about Toyota
company. However, secondary data is the data that can be collected from the internet. Its
quick information and it can be easily find. Both methods are helpful for analyzing the data.
i
TABLE OF CONTENTS
1. Introduction
What is Marketing? ………………………………………………………………………………………
1
Toyota ………………………………………………………………………………………………….….
2
2. Literature Review
Marketing Communication………………………………………………………………………………
6
Marketing Communication strategy……………………………………………………………………
6
Marketing Communication in the 21st Century……………………………………………………….
6
Social Media………………………………………………………………………………………………
8
The Influence of Marketing Communication on Costumer Relationship………………………….
12
Relationship Marketing………………………………………………………………………………….
12
Toyota's Relationship Marketing……………………………………………………………………….
13
" Let's Go Places" …………………………………………………………………………………………
15
The Toyota Television Campaign………………………………………………………………………
16
The Magazines and Newspapers Print Campaign ………………………………………………….
17
Billboard Advertising……………………………………………………………………………………
18
Email Marketing…………………………………………………………………………………………
18
Social Media Campaign………………………………………………………………………………...
19
3. Research Methodology
Data Collection………………………………………………………………………………………..…
22
Questionnaire…………………………………………………………………………………….……….
23
Questionnaire Design……………………………………………………………………………………
24
Interview……………………………………………………………………………………………………
25
4. Data Analysis
ii
Primary Data………………………………………………………………………………..…………….
26
Interview……………………………………………………………………………………………………
26
Questionnaire………………………………………………………………………………………………
27
Secondary data…………………………………………………………………………………………….
30
TABLE OF CONTENTS
5. Conclusion and Recommendations
Conclusion…………………………………………………………………………………………………
34
Recommendation………………………………………………………………………………………….
6. References
References…………………………………………………………………………………………………..
7. Appendix
ii
Appendix A: Interview …………………………………………………………………………………….
1
Appendix B: Questionnaire ………………………………………………………………………………
3
INTRODUCTION
What is Marketing ?
Marketing is an ongoing process that offer a special value for customers in order to
attract them and build a strong profitable relationship (kolter & armstrong, 2012). It is one of
the important elements in any successful business. According to Lorette & Media, 2008 who
stated that “The heart of your business success lies in its marketing”. Most aspects of your
business depend on successful marketing; in order to have a successful marketing plan and
build strong relationship with customers ,many points must be taken into consideration.
First of all, understand the market place and recognize the customer`s needs, wishes
and demands. Through research, advertising their products , experience, services depend on
that, and attain the customer’s expectation. Second of all , design a marketing strategy by
characterizing their customers through marketing analysis; find out the best way to serve them,
and offer value of the product through special features or characteristics that meets the
customer expectation. Also focus on different concepts that assist the organization in
designing their strategy such as: production, product, selling and marketing concepts. Third,
construct marketing plan by putting the marketing strategy into action. Finally, build customer
relationship by applying these steps and offering the best quality to attract and retain the
customers (kolter & armstrong, 2012). Moreover, once the business accomplishes this, they
will gain many benefits.
1
INTRODUCTION
Toyota
Toyota is multinational automaker company. It is also known as TMC (Toyota Motor
Company). It started in 1890 when the father of kiichiro invented the wooden Toyoda
handloom. Later on, he completed the automatic loom (type G). In 1933 Kiichiro created
automobile department, produced the first vehicle in 1935, worked on logo and exported for
the first time in 1936. Finally, Kiichiro established Toyota motor company in 1937(Toyota,
2012). It is a Japanese organization which generate full range of model , starting by small
vehicles to large trucks ( Toyota, n.d). The headquartered of Toyota is located in Japan. It owns
around 12 plants and 11 manufacturing auxiliary in Japan. It also has 45 manufacturing
company around the world (Toyota, n.d). By 2001 Toyota became the third largest automaker
company (Toyota, n.d). Since it’s established, Toyota has special vision and philosophy
toward its company. It follows certain principles that help them create unique vehicles and
keep up development of society all over the world through recognition, respect and
appreciation of the language, spirit, culture and customs of every nation, and enhance the
quality of life all over the world by their activities. In addition, construct advanced
technologies and offer wonderful products and service that meet the needs of customers in
different parts of the world and opened to global community through innovative management
(Toyota, 2012).
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INTRODUCTION
Toyota has a global vision, global and localization manufacture, and production system
philosophy. Toyota global vision aims to view the company as one of the largest automaker
company that “customers choose and brings a smile to every customer” (Toyota,2012), while
global and localization manufacture philosophy aimed for “Global Quality Assurance” through
producing the same high level of quality vehicles in different parts of the world(Toyota,2012).
In addition, Toyota production system philosophy consists of two basic concepts: the first one
is “jidoka” or “automation with human touch” which means when there is a problem , the
equipment breaks off immediately from producing a defective product; the second one is
"Just-in-Time" which means producing only "what is needed, when it is needed, and in the
amount needed!" (Toyota,2012). Based on this philosophy, the Toyota production system can
professionally, efficiently and effectively produce vehicles that satisfy customer needs.
Toyota’s mission is to provide the best customer experience and grant their satisfaction
through continuous maintained growth and development to produce safe efficient service with
high quality (Bhandari,2007).
3
INTRODUCTION
Toyota Company is characterized by a popular car industry through having a
reasonable price that will be convenient to any customer, cutting edge technology through
keeping up with advanced technology, and low operating cost such as, lower sticker
price(Bhandari,2007). It also famous for professional managers especially in the marketing
department who set strategies toward reaching and acheiving success in their economy . By
2009 Toyota increased selling in all over the world by applying different special strategies –
see Figure 1- (Watanabe, 2007)
Figure 1, TMC, (2009).
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INTRODUCTION
TMC categorized their market into region such as: Asia, US and India and focusing on
the demographic and psychographic features of each market. Also, focusing on the brand
through improving the lineup such as; Lexus (Watanabe, 2007). Moreover, Toyota has made a
special website in order to, communicate and advertise their products to the people around the
world. they also share their marketing through the social networks such as, Facebook ,
Twitter and You tube in order to pass their customers satisfaction message ( Toyota, 2012).
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LITERATURE REVIEW
Marketing Communication
Marketing communication is related to media and it is a part of the marketing mix:
price, place, promotion, and product.. Marketing communication is global and has been
affective in many ways and have the power to promote the product ; especially advertisings,
promotions, TV advertising , print media, public relations, sales and online marketing.
Marketing Communication Strategy
The strategy of marketing communication is to deliver the product or service; in order
to obtain the satisfaction of consumers. Every organization has a message to the consumers,
these messages are different messages; some might reflect positively on the marketing
process., while other might reflective negatively. As the research was conducted , it was found
that marketing communicating is a combination of science and art; which helps the
organization deliver its promoted message in the most creative way. This combination is set
in a process that the organization makes depending on public needs.
Marketing Communication in the 21st Century
In the twenty-first century the marketing communication become different from the
past; today new technology brings new ideas for marketing that deliver promotions it in a
short time, high quality and less cost. Accordingly, organization have today have many
promotional options to market their product or service. Nowadays, social media affect the
consumers in long range; internet nowadays has huge effect in marketing . Studies show the
increasing usage of the internet on annual bases; according to internetworldstat.com internet
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LITERATURE REVIEW
growth worldwide is equal to 566.4% between the years 2000 and 2012 (2012). In contrast of
that the print media has limited number of views; according to stateofthemedia.org " Daily
circulation, which stood at 62.3 million in 1990, fell to 43.4 million in 2010, a decline of 30%.
Sunday circulation fell by about the same percentage, though Sunday editions have performed
better than daily the last two years" (2012) .
Today, using internet in marketing has a significant impact in every organization. For
example, Facebook and Twitter become public interest; it helps in tracking people in different
countries, it also helps in expanding the business and in giving feedback for services. It is not
all about showing their product or services, it also improves the awareness of their business.
Today, creating or developing an online service is important for every organization that wants
to run their relationship with consumers in modern way.
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LITERATURE REVIEW
Social Media
Social networking applications, has been in constant growth; according to Mark
Nowotarski; the number of published social network application in 2010 is 1200, while the
number of issued patents is 200 – see chart 1- . This growth is affecting marketing, for today
those social networks are used by businesses to deal with their customer or even to know their
comments of their product, and have their feedback.
Chart 1, Ipwatchdog.com. Number of US social network patent applications published per year and patents issued per
year (2012).
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LITERATURE REVIEW
Furthermore , the following table by Kelly Loubet (who is head of the Social Media
and Community Development at Spellbinders Paper Arts, LLC.) shows the effect of social
media on people, and how it is used in marketing and promotion services and products:
Social Media
Usage

Effect on Marketing
According to Corey Eridon (2012) :
Facebook has more than 800
million “active” users worldwide

(Facebook.com, 2012) .


People spend over 700 billion
important for their businesses.

77% (B2C) businesses acquired their
minutes per month on Facebook
customers from facebook, while the
(Loubet,2010).
rest; 43% of customers are acquired
There are more than 200 million
by (B2B) businesses.
active users currently accessing

Facebook through their mobile
(Loubet,2010).

42% of businesses say facebook is
customers through facebook .

About 70% of Facebook users are
outside the United States
90% of retail businesses acquired their
Exposure of business has increased
by 80%.

(Loubet,2010).
65% of businesses provided marketing
insight through facebook.

60% of marketers struggle with lead
generation on facebook.

The ratio of customer feedback on
facebook is 9:1.
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LITERATURE REVIEW



Marketer estimates 20.6 million US
Pick stated in his article (2012):
adults will access a Twitter account at

least monthly this year (Loubet,2010).
leads using Twitter, and 20% have
There are more than 500 million Twitter
closed deals.
users around the world

77 of the world’s 100 largest
(Statisticsbrain.com, 2012).

companies maintain a corporate
Twitter now comes in English, French,
Twitter account. But media outlets
German, Italian, Japanese, and Spanish
are the most active users.
(Loubet,2010).

34% of marketers have generated

95M tweets are written per day (Sept.
Companies that use Twitter, leads
two times the average per month.
2010)


LinkedIn has crossed the 100 million
marketing have generated
LinkedIn said that it is adding 1 million
businesses with it.
new members every week, which
(grmwebsite.com, 2012)
second (Loubet,2010).
LinkedIn now has presence in 200
countries and territories around the
world, with 56 million of the 100 million
users being from outside the US.
Another reason to make a business is
part of the global market (Loubet,2010).
10
41% of people using Linkedin for
user milestone (Loubet,2010).
equates to one new member every


LITERATURE REVIEW





70% of YouTube traffic comes from
According to Jeff Bullas (2012):
outside the US.

YouTube is monetizing over 3
YouTube is localized in 25 countries
billion video views per week
across 43 languages.
globally
YouTube’s demographic is broad: 18-54

98 of AdAge’s Top 100
years old.
advertisers have run
YouTube reached more than 700 billion
campaigns on YouTube and the
playbacks in 2012.
Google Display Network
Over 4 million people are connected

Hundreds of advertisers are
and auto-sharing to at least one social
using TrueView in-stream and
network.
60% of our in-stream ads are
now skippabl.
Table 1
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LITERATURE REVIEW
The Influence of Marketing Communication on Costumer Relationship
The influence of marketing communication on costumer relationship is huge, for
according to Halimi and others; having such relationship helps in generating mutual values for
both costumer and business through the growing marketing effectiveness (2011). It is believed
that marketing communication tactics can highly effect customer satisfaction; thus loyalty
(Halimi, Chavosh, Choshali, 2011). Furthermore, it is also that believed customer loyalty and
retention is effected by relationship marketing; which is the process in which marketers attract,
maintain and enhance customer relationship (Halimi, Chavosh, Choshali, 2011).
Relationship Marketing
Relationship marketing have taken a central position in marketing strategies in the past
two decades (Palmatier, 2008). In a world where technology, communication and logistics are
increasing; "consumer silence" no longer exists ; accordingly customer loyalty and satisfaction
became more crucial than ever (Palmatier, 2008). The beliefs of loyal customers can help a
business gain profit, achieve competitive advantages, and attain higher degree of customer
satisfaction relationship (Halimi, Chavosh, Choshali, 2011). According to Hennig-Thurau and
Hansen, the raise of relationship marketing was due to regaining lost customers (2000, p.18).
Any business could face losing its existing customers, due to many reasons; thus straggle in
keeping their existing customers and gaining new ones. One of the most successful
relationship marketing strategies is carried out by Toyota; not only is it one of their primary
marketing strategies, it is also the strategy they used in their latest campaign " Let's Go places
".
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LITERATURE REVIEW
"Toyota's Relationship Marketing
In November 2012, Toyota had to recall 2.77 million vehicles around the world; in
specific models; due to a water pump problem and a steering shaft defect that may result in
faulty steering (CBCNews, November 14, 2012). CBCNews stated the following in
November 14, 2012:
" Some 1.51 million vehicles are being recalled for the steering defect in Japan and
1.25 million vehicles abroad . Affected models include the Prius hybrid, Corolla, Wish and
other models produced from 2000 to 2011 in Japan, and from 2000 to 2009 overseas. Of those
vehicles, some 620,000 spanning five hybrid models, including the Prius, have a defective
water pump in addition to the steering shaft defect. Those vehicles were produced from 2001
to 2010 in Japan, and from 2003 to 2011 overseas. Another 10,000 vehicles with only a pump
problem are also being recalled "
Despite the fact that the defect caused no reported accidents (CBCNews, November 14, 2012).
Toyota customers, along with the media reacted negatively. Such reaction effected Toyota's
unites sales as shown in the following chart, according to Toyota's 2012 annual report :
8,000,000
7,000,000
6,000,000
5,000,000
Japan
4,000,000
Overseas
3,000,000
Total
2,000,000
1,000,000
0
2010
13
2011
2012
Chart 2, Author generated (2012)
LITERATURE REVIEW
As noticed in the chart there is a slight fluctuation between the years 2012 and 2012
within the same market sales; in the year 2010 Toyota sold in the Japanese market 2,163,000
unites, while in 2012 they sold 2,070,000. There is 93000 unites decrease in sales, however
compared to the 2011, which was the lowest in between years ; selling only 1,913,000. The
2012 Japanese sales are considered relatively high. On the other hand the oversea sales of
Toyota were at their lowest in the year 2010; compared to 2011 which was 5,395,000 units ,
and 2012 which was 5,281,000. Selling only 5,074,000. While the recall might have affected
the oversea sales, it did not affect the local market; considering the increase of sales
(Toyota,2012). As noticed Toyota's sales in the local market were not affected for accordingly;
Toyota took some of the measurements order to reverse the negative side impacts of the recall.
In order to do so, Toyota used different forms of media in order to reach out to their customers
and restore the positive image. In its new campaign Toyota use TV advertising campaigns,
print magazine campaigns, billboard advertising, e-mail marketing, and social media
campaigns; Toyota's new camping is called "Let's Go Place". In general Toyota spend around
8-10% of its sales on marketing (Tutor2u.ne, 2012); which is around $2.86 billion on
marketing per year (webcache.googleusercontent.com, 2011). In General is stated in their
mission; which is to provide best customer experience and dealer's support. By understanding
their costumers needs, in Toyota they do not relay on long endless surveys or sampling; they
prefer talking to our clients and the public to understand their needs, thus develop them
(Personal Interview, November 29, 2012). In Toyota they "walk the talk", they rely on
common sense to develop our product in order to reach customer satisfaction (Personal
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LITERATURE REVIEW
Interview, November 29, 2012). We really focus on the product, and believe that a good
product that satisfies the customer will market and sell itself (Personal Interview, November
29, 2012).
" Let's Go Places"
On September 11,2012 Toyota's president, Akio Toyoda; revealed at the Toyota
National Dealer Meeting in Las Vegas their new tagline " Let's Go Places" (Toyota). This was
the first time that Toyota changes their tagline since 2004, Replacing " Moving Forward";
Toyota hired six agencies to come up with their new tagline (Felix, 2012). According to
Toyota the new tagline is "reflecting the company’s commitment to more exciting products
and the promise that customers are invited to take part in shaping Toyota’s future" (September
11, 2012). The new campaign suggests a forward-looking and optimistic thrust of Toyota in
the states and worldwide, through this campaign Toyota invites customers on a journey to see
new places and opportunities; through discovering Toyota (Toyota, September 11,2012). Bill
Fay, the group vice president and general manager said " “Let’s Go Places” speaks to the
evolution of Toyota and our commitment to leading through innovation, enriching lives and
connecting with customers in new ways they define" (Toyota, September 11,2012 ).
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LITERATURE REVIEW
Bill Fay also said:
" It is energetic, aspirational, inclusive and very versatile. The phrase conveys a dual
meaning of physically going places and taking off on an adventure, while also expressing
optimism and the promise of exciting innovation that enriches people’s lives. It allows our
associates, customers, dealers, and suppliers to interpret it in ways that are most personally
relevant to them.”
Through this new tagline, Toyota is trying to restore its relationship with its customer and
regain new customers; as well as keep the existing ones.
The Toyota Television Campaign
On average Toyota spends around 795, 60$ on TV commercials (statista.com, 2012).
Earlier this year Toyota purchased a 60 second spot during the American Super Bowl
commercials; the average 30 second spot costs around 3.5 million dollars, thus it is estimated
Toyota paid at least 7 million dollars for the spot to be played for more than 111 million
viewers (Stampler, January 30, 2012). TV adverts are be created to enhance the relationship
between the Toyota campaign and social media; this will use the media and consumer
generated strategy certificate to show Toyota customer that the recall has a positive
side .Toyota also created affordable effective male-oriented strategy, by taking morning
advertisement slots on sports channel like ESPN. Furthermore Toyota advertised home
shopping channels; such as ShopNBC, to target figures that are not mostly home spending.
Moreover, Toyota has sponsored successful TV series such as Suburgatory; that airs on ABC
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LITERATURE REVIEW
network, with estimated 7.54 million viewers in the United States (Hibberd, October 14,
2012). Toyota has also featured their own cars in the series
The Magazines and Newspapers Print Campaign
As mentioned printed magazines and newspapers distribution has fell compared to the
early 90's; however Toyota still features its advertisements in both. Matter of fact the allocated
budget for print campaigns is larger than social media with an estimated 140, 10 million
dollars for magazine adverts and 31.40 dollars in newspaper advert; making the total 171, 50
million dollars (statista.com, 2012).. After the recent recall the Toyota print advertisement
Campaign was also featured in several magazines that cover a wide consumer base; these
categories of magazines will include Automotive (Automotive, AutoWeek, and Car and
Driver) Business (Forbes, Fortune) and General Interests (The New Yorker, Readers Digest).
Those print advertisements will also be featured in news print in national and city Newspapers,
each will have a different form of print compared to the TV commercials; These printed
advert acts as ;first, an apology and reassurance that Toyota is working on recalling the
problem. Second, as an appreciation through thanking the customers for their collaboration,
and as declaration to their customers to understand that the recall was due to short defect that
is over. Finally those printed advertisements were to assure Toyota customers that it has move
on with providing high-quality products to them.
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LITERATURE REVIEW
Billboard Advertising
Lowest marketing budget has been allocated to billboard advertising, with only
average of 17, 20 million dollar budget per year (statista.com, 2012). Even though billboard
advertising is not popular around the world in, in Saudi Arabia; it is considered one of the
most effective methods. According to Mr. Ahmed Al-Ghamdi; billboards in major Saudi
Arabia cities will act as an effective method, through allowing customers to see Toyota
rebranding efforts as they drive in their vehicles. Mr.Al-Ghamdi added that their target
customers are middle aged working men, and having billboards in major city highways; will
guarantee that those men see those billboards on their way back and forth from work. Those
advertisements will serve as a reminder to check online content to make sure if their vehicle is
affected by the recall to act soon; the billboard advertisements will contain important
throwback to information sources such as the Toyota Blog, and the Facebook Contest. Also
work on their relationship marketing in Saudi Arabia.
Email Marketing
E-mail marketing is Toyota's new approach to going green. Plus it is also considered
relatively economic, more personalized in some cases. However it was not as successful as
Toyota thought it would. Even though recorded current consumers affected by the recalling,
and have registered their e-mail accounts; have received an email with information package
that contains important information such as dealer sites, how it has affected their registered
model to fix them, and an official apology from the senior management. The e-mail was
decorative, and consists of graphics that shows an image of the issue rather than simply text.
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LITERATURE REVIEW
Email marketing started off in 2009; when "teamed up with the Los Angeles Saatchi & Saatchi
team to create an email marketing campaign to gain awareness for the Toyota Matrix through
some rather extreme ideas along the lines of “terror marketing” " (Rob,2012). The campaign
was aimed at young adult; to market the Toyota Matrix, through pranking people. This
campaign failed for it ended with nothing but law suits for conducting and inducing such
pranks (Rob,2012).
Social Media Campaign
Toyota spends more than 131.30 million dollars on social media (statista.com, 2012) to
ensure the success of their social media campaigns; which are featured in Youtube, Twitter ad
Facebook. The Toyota channel in Youtube has got more than 23,089 subscribers and
54,959,153 video views (Youtube.com ,2012). While on twitter they have more than 111,320
followers (Twitter.com, 2012). Furthermore, they have 1,210,017 likes on facebook and
18,931 talking about this (Facebook.com, 2012). Toyota also came up with an idea for a social
media strategy is to have consumers generate their own personal videos of their positive
experiences with the recall. The span of the content will be from direct communications from
Toyota staff to existing customers, to positive dealer experiences during repairs. Customers
loaded personal experiences online using YouTube, Facebook and communication tools. Once
uploaded the staff of Toyota arranged them, then selected a winner video to be featured as or
in a Toyota advert; the winner also got a Toyota Prius. Toyota also used social media campaign
in order to generate positive word of mouth about the recall, and have shared up to date
information on how to help solve the problem. Toyota also enabled their consumers to use
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LITERATURE REVIEW
platform and social media to create a collective dialogue, and share stories, and discuss the
issue with representatives of Toyota.
Putting high emphasis on using social media will allowed Toyota to communicate using
new era tools, which are intended to help emphasize Toyota superiority over their competition.
Below the graph – chart 3- show a more graphical depiction of the communications budget
separated by the tools Toyota usually replay on in their campaign (Aug 2010)
Advertising Spending Per Category
20%
%32
Chart 3, Author Generated (2010)
20
Print
Billboard
20%
%12
TV
Email
16%
Social Media
LITERATURE REVIEW
Finally in several cases of model public relations and advertising, and marketing
activities used to provide a basis for believing that there are some differences between them.
Advertising and public relations are individual tools for marketing. Have strengths and
weaknesses, and each has a specific purpose. However, the gap between public relations and
advertising is close. Eventually, there will be more similarities than differences and as a result,
there are public relations tactics to replace traditional advertising methods.
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RESEARCH METHODOLOGY
Data Collection
As for the data collection part, the primary data will be the main source for collecting
data and information as it will be conducted for the exact means of the research which makes
it more valid than the secondary data might be found. Also it will be more updated comparing
to primary data which might be gathered years ago so it becomes less likely to provide reliable
answers to the questions the data needs to answer.
Therefore, online questionnaire and interview will be taken for this research.
According to Dr. Pharlain Ross, online questionnaire is the best way to collect primary data:
“As the internet is changing every single industry. It has certainly changed Marketing
Research. There are many different ways to conduct research projects but Web based surveys
are the newest and best as its speed, cost effectiveness, ability to cover a country or even one
geographical area. Additional to that, it allows to add multimedia and send automatic e-mail
reminders.”
Likewise the face-to-face interview which called synchronous communication, it can
takes its advantage of voice, intonation, body language of the interviewee which give the
interviewer more information that can be added to the verbal answers. Dr. Gray stated that the
interview is one of the best way to collect primary data for research as “ there is a need to
attain highly personalized data, very convenient for the respondent, ambiguities can be
clarified and incomplete answers followed up and it allows more detailed questions to be
asked”.
On the other hand, secondary data will be collected as well from the Internet as it is
often quick and convenient to search, has brief information and quick facts, can find old and
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RESEARCH METHODOLOGY
new information easily and most companies have official websites of them which contain all
the information needed and about their products. Some of the websites that will be used to get
the data from are Toyota-Global.com , CBC.ca and facebook.com.
Questionnaire
The online questionnaire will be sent to almost seventy people who are above twentyyears old and who can drive or even can buy a car (users of the products). In addition, around
thirty questionnaires will be distributed at Toyota showroom after taking permission from the
showroom center manager. The online distribution will be by sending it to emails, post it on
social networks such as Facebook and twitter and sending broadcasts on Blackberry
messenger and WhatsApp application. Also the other thirty questionnaires will be distributed
by hand to costumers at the Toyota showroom.
This type of distribution has been chosen as its cheaper comparing to other primary
data collecting ways, more likely to get more people to answer, its easiness to be analyzed,
cultural confidential and it also gives the ability to set a deadline for answering the
questionnaire. As for the deadline, the questionnaire will be available to be answered for six
days; e-mail reminder will be sent after the third day of distribution. As a result and after six
days, the expected replies are between seventy to seventy five. After all, the replies will be
analyzed by the website used to conduct the questionnaire which is surveymonkey.com.
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RESEARCH METHODOLOGY
Questionnaire Design
The questionnaire will take maximum two minutes to answer. It has four parts, part A
is called personal information and it has three questions which state the gender, the age group
and if s/he has a car or willing to have one. Part B is called the brand recognition and it has a
picture of Toyota’s logo and two questions after it. The two questions will tell how familiar
the logo is and if the current communication method is sufficient or not. Part is C contains
two questions and it tries to define if Toyota has achieved its mission and made the wanted
perception in the costumers’ minds. In last part is D which called your Toyota, my Toyota and
has two questions. It tries to measure the awareness of Toyota recall car and if it will affect
the decision of buying one of its cars or not.
The questionnaire planned to be as short as it can be as the need of getting more
responds. Most people will avoid filling out the survey when it has lots of open-ended
questions and this what leaded the questionnaire to be short with only seven close-ended
questions (multiple choice with one or more answers) and two open-ended question to
describe how interest the people are to buy a Toyota car or to describe Toyota in one word.
24
RESEARCH METHODOLOGY
Interview
In order to have a better insight about the marketing strategy of Toyota and their
communication channels, and interview was conducted with Mr. Ahmed Al-Ghamdi; who is
one of the marketing directors at Abdulateef Jameel, one of the 16 Toyota dealers in the
Middle East (Toyta, 2012). The interview was conducted over the Phone, where he was asked
four questions; the interview lasted around 20 minutes. First question about the Toyota
marketing strategy; what is it? In order to understand the tactics Toyota uses to market their
product. Second question was about the Toyota budget; how much is it? In order to assess,
how much Toyota is concerned with marketing. Third question was about the marketing
communication channels; what is most effective here in Saudi and why? For customers react
differently to channels from region to another, such difference is controlled by many aspects
such as region, culture and age. Final question was about the change in marketing
communication channels in Saudi; how did it happen? Why did it happen? And what are the
consequences related to such change? As mentioned the customer reaction towards
communication channels is different, however change is a must in order to keep up to date
with the current communication methods.
25
DATA ANALYSIS
Primary Data
As mentioned primary data was collected through two methods, an interview as well as
a questionnaire; each targeted a certain aspect that would support this research about Toyota
and their marketing communication channels.
Interview
The interview focused on understanding Toyota's marketing strategy, as well as their
communication channels; and the change in those channels through time. When asked about
their marketing strategy Mr. Ahmad answer stated that Toyota does depend on relationship
marketing. For they believe that their marketing strategy reflects on their mission; which is to
provide the best customer experience and dealers support. By providing the best costumer
experience as well as support, and understanding customers' needs; they will be able to
develop products that will reach customer's satisfaction. They also focus on the product, for
they also believe that a good product will market itself. Mr. Ahmad also talked about the
assigned budget for marketing in Toyota, and he stated that was relatively low compared to
another automobile marketing budget, for again in Toyota they rely on the product to sell
itself. Especially Toyota is very famous in the Middle-East and GCC. When asked about the
most efficient marketing communication channels in Saudi, Mr. Ahmad said that he believes
that the most efficient marketing channel in Saudi is billboard signs; and that they are
distributed in major roads in cities, in order to grab the customer's attention with their latest
offers and products. Plus the fact that their main target customers is middle aged working
26
DATA ANALYSIS
men, for in general those men will be interested in having a Toyota not only to themselves, but
also for their families and sons. However, things are changing; according to Mr. Ahmad. For
today Toyota is also targeting younger customers, and in order to do so they are trying to reach
out to them through more modern channels; such as social media. This way, Toyota in Saudi
will be able to reach out to different demographics. Mr. Ahmad also believes that there are no
consequences to using new channels, and that there are lots of benefits to using new channels;
such as regularly updating their customers with their offers and products, as well as engaging
with them.
Questionnaire
First part of the questionnaire, was personal information were the participants have to
specify their gender, age, and whether they are a car owner or not. 74.4% of the participants
were males while 25.6% were females; and about 27.9% were above the age of 18, 44.2%
above the age of 24, 11.6% above the age of 30 and 16.3% about the age of 35. 69.8% of the
participants were car owner, while 18.6% were not and 11.6% stated they will own a car in
the future. In Saudi, women are not allowed to drive; only men. Accordingly has always been
perceived that men in Saudi are more familiar with cars, compared to women; thus it is very
important in this survey to know the percentage of participants from each gender. This survey
only included those who are 18 and above, to ensure that the participants were old enough to
drive (in and outside of Saudi); considering that further questions will include details that
requires those who are eligible to do so. It is also important to know the percentage of car
27
DATA ANALYSIS
owners, also to help answer and asses further questions. In the second part, which is brand
recognition, 90.50% identified the logo, while 4.8% did not; and thought it was a BMW and
4.8% thought it was other. 18.6% said they did from social media, while, 34.9% from
printed media, and 46.5% from TV. Moreover, 46.5%. recognized the logo from billboards,
while 20.9% drive their cars, 81.4% see people driving Toyota cars, while 7.0% said they
recognize it from other channels. Brand recognition nowadays become highly important in
marketing, for customers relate to brands they are familiar with, thus are willing to buy from;
compared to ones they do not recognize. Knowing where the participants recognize the logo
from will narrow down the most effective and efficient communication channel for Toyota in
Saudi which is TV advertisements. Despite the public awareness, Mr. Ahmed claimed that
billboards are their most effective communication channels, while the survey results clearly
prove that TV advertises are the most effective method. During the third part of the
questionnaire, participants were asked to describe Toyota in one word, in order to perceive
what the public thinks of Toyota, 55.0% described it as economical; while10.0% as
environmentally friendly. On the other hand, 35.0% described Toyota as good quality and
47.5% as Japanese. The participants were also asked whether they are interested in buying a
Toyota or not, and why; 47.6% said they were while 50.0% they were not, for different
reasons. One of the participants said he or she was not interested because he or she does not
like the design, while another said he or she would prefer a more luxurious car. This shows
that Toyota did brand position itself as an economical, Japanese car; compared to other brands
such as Audi which is perceived as an expensive, European car. Even though, Toyota does
28
DATA ANALYSIS
manufacture Lexus. Final part was about the recent Toyota recall; this survey was conducted in
order to assess the amount of awareness Saudi customers have in regards to Toyota's global
news. Whether they were up to date with the latest Toyota's news or not; which shows how
effective is the Toyota global marketing communication channels. Also how the recall affected
the customers decision to buy a Toyota. While 47.6% said they were not familiar with the
recall, 35.7% said they were and 16.7% asked what a recall is. 9.3% said the recall affected
their future Toyota buying decision, 32.6% said it did not and 37.2% said maybe, while
20.9% do not know.
29
DATA ANALYSIS
Secondary Data
According to CNN Money Toyota is ranked 8th in the World Largest 500 Cooperation
List for 2011; after it was ranked 5th (2011). According to CNN Money, this decline is due to
the slowdown in production; which is due to the latest earthquake and tsunami that hit Japan
(2011). CNN Money stated that:
"sales in North America, Europe and Japan declined during 2010, Toyota sales picked
up in emerging car markets, including Asia, Central and South America and Africa. Emerging
markets ended up being strong enough to carry the company, which sold over 7 million units
in 2010, an increase of 71,000 from the previous year"
Ever since Toyota has been trying to recreate its image to the public, by using more efficient
up to date marketing communication channels; and ever since the latest recall Toyota has been
trying even harder, by purchasing the American Super Bowl advertising spot for at least 8
million dollars. As well as sponsoring shows, and earlier in 2009 when it conducted its e-mail
pranks; in order to market its Toyota Matrix. Toyota is trying to become part of pop culture
and the mainstream by changing its image; which is mostly perceived as Economical and
Japanese. By becoming part of the mainstream Toyota is reaching out for the young
generation, generation Y and millennium generation; who having boosting the current change
in postmodern marketing ( Nair & Subramaniam, 2011) . Accordingly, Toyota became part of
social media such as Twitter, Facebook, and Youtube; spending more than 131.30 million
dollars on social media campaigns. Even though it has become" an important tool in the
marketing mix promotion" (Nair & Subramaniam, 2011); and "marketing communication
platform shows a tendency to shift towards innovation technology" (Nair & Subramaniam,
30
DATA ANALYSIS
2011) here in Saudi only18.60% claim that they have recognized the Toyota logo through
social media(author generated survey, 2012). Meaning that social media as a marketing
communication channel, is not very effective here in Saudi; compared to the states for
example where more than 79% of adults are social networks users (Nair & Subramaniam,
2011). Yet, Mr.Ahmad stated that Toyota here in Saudi is promoting their more youthful
modern models, such as FJ, to young customers through social media. Even though social
media marketing; is yet to be popular here in Saudi, businesses such as Toyota; do not have to
worry about any financial consequences compared to other channels. Considering the fact that
popular social networking sites; such as facebook and twitter, do not charge fees upon setting
profiles, accounts and pages. However, they do charge businesses for optional promoting
spots. Nair and Subramanian stated in their research about transformation of traditional
marketing communication in to paradigms of social media networking that "social media can
be viewed as an important channel and tool to interact with target audience and a tool for
creating brand awareness too" (2011). Yet, 47.6% of the survey participants, here in Saudi,
stated that they were not familiar with the recent Toyota recall. Meaning, that Global Toyota
social media marketing is focusing more on Western customers; considering the fact Eastern
are more aware of the brand. According to the Toyota annual report in 2011 Toyota sold 8,019
thousand vehicles, while in the United States they have only sold 21,404 thousand vehicles;
while in Asia and the Middle East they have sold 25,257 thousand vehicles The high sales
figure in Asia and the Middle East clearly proves that, Eastern are more aware of the brand;
take for instance Saudi 90.50% where of the survey participates recognized the brand.
31
DATA ANALYSIS
Regardless of the relatively low sales in the West Toyota Motor Company, held top honors in
the BrandZ Top 100 annual ranking of the world's largest and most valuable brands in 2011
(Kleis, 2011). Of course social media networking has its negatives, for example the rapid
spread of rumors and bad publicity; through negative feedback by customers. Social media
may be one of the most effective communication methods, however; one should note that
internet and certain websites are not available everywhere. For example facebook is not
available in China. Based on such facts, Toyota became more involved in other marketing
communication channels; in order to reach wide range of demographics. Toyota for example
started sending email newsletters, that include updates and promotions give them a marketing
advantage; by becoming more in touch with their customers. Using such channel is
environmentally friendly, and inexpensive however; this method has not been successful. plus
the fact that those newsletters will only reach registered customers. On the other hand, while
billboards are not successful worldwide as they are in Saudi; as mentioned in the study, printed
magazines and newspapers adverts are. Toyota of course is considered one of the most
recognized brands worldwide, which also proves the effectiveness of their communication
channels mix;. While each communication channel directs certain demographic, it is very clear
that Toyota spends more than 795, 60 million dollars on TV adverts, making TV
advertisements their most effective communication channel. Sponsoring a TV show, and
buying prime time spots is the best way for a business to tell their story, in an engaging,
consumer friendly format (Allbusiness, 2012). While TV advertisements demand good
creative scripts and plots, such plots and scripts may not be suitable for all culture. Take for
32
DATA ANALYSIS
example the Super Bowl advert, in it was featured couple of females in bikinis; while it might
be suitable for western culture, it is not for eastern. Accordingly, most eastern Toyota
advertisements are more conservative, featuring young adults and babies; thus in such
situations social media or print may be more creative compared to advertisements. Overall
each communication channel is effective, however; the effectiveness of each depends on the
targeted demographics, their age, gender and culture.
33
CONCLUSION AND RECOMMENDATIONS
Conclusion
It can be concluded that marketing play significant role in every organization in order
to succeed through a profitable relationship with customer; however, each organization should
follow a marketing plan or a strategy, for instance doing a research about customer especially
if the organization is international and has many branches in different countries it is important
to know the language, culture and so on. After doing the research organization will have the
customer data, their interest, need, wishes and this process will lead to meet the customer
expectation. In addition, organization must have a marketing analysis and strategy to evaluate
different concept in organization like production and selling process. Finally, origination must
put the marketing plan into action to see the results, and build a trust with customer to obtain
their loyalty for a long time. This research discus Marketing Communication Channels in
Toyota, and it shows how Toyota success in their marketing strategy. The literature review
shows that Toyota spends 8-10 percent in their sales in the marketing; which is about one
billion; in which 795, 60$ on TV commercials, 140, 10 million dollars for magazine adverts
and 31.40 dollars in newspaper advert;, 17, 20 million dollar for billboard advertising, and
more than 131.30 million dollars in social media campaigns. Toyota usually prefer to
communicate with the customer direct to know what they actually need rather than surveys
and sampling in order to provide a high quality image to customers and achieve their goal
which is meet customer expectation. In the research methodology its describe data Collection
for primary data such as questionnaire and interview. However, Interview has been done for
34
CONCLUSION AND RECOMMENDATIONS
understanding the Toyota marketing strategy and their mission which is providing best
experience for customer, and questionnaire is personal information of the participants such
gender, age, they own a car or not and these are very important information for Toyota
Company to discover the customer demand based on this data. On the other hand secondary
data can be finding in the easy and quick way which is searching in the internet.
35
CONCLUSION AND RECOMMENDATIONS
Recommendations
It is a fact that nowadays organization is are more competitive than they have ever
been; quality and reasonable price is not enough to stay alive these days a company must
know how to communicate effectively with their customers (marketography.com , 2012).
However, many organization give their all efforts on the quality of their products and prices
forgetting how to make a an effective marketing communication (marketography.com , 2012).
After doing this research it is found that between 2011 and 2012 Toyota announced for a large
scale recall and unfortunately this recall applied for 7.4 million vehicles around the world, and
more than 1.3 vehicles in US. However, this is not the first recall Toyota Company announced,
in 2009 and 2010 there were about 6.7 million cars recall, because it had safety issue and these
specific models were at risk (Dailyfinance.com, 2010). As a result, it is recommended that
Toyota Company should be more aware about their vehicles; such a large company should not
make these mistakes. For such mistakes are not only effecting their sales, but also their
customer relationship. Toyota Company needs to improve their relationship with customer
and build trust by fixing their products problem. This can be done by hiring an outsourced, or
an insourced team to justify and analyze the operations process and strategy inside Toyota
Company (60secondmarketer.com, 2010). On the other hand, Toyota need to have more
channels in more social media sites; such as Instagram, which is "gaining a one new user every
second " (digitalbuzzblog.com , 2012) . Toyota needs to identify them self and let people know
about the company, customer always want to learn more about the company that he or she
36
CONCLUSION AND RECOMMENDATIONS
want to buy from. In addition these channels can be used for problem solving
(brandingstrategyinsider.com, 2010) .. On the other hand, providing a chartroom in their
official website with professional employees to answer customer concerns would be great
service.
37
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43
APPENDIX
Appendix A: Interview
Q1. What is your marketing strategy?

Our marketing strategy is stated in our mission; which is to provide best customer
experience and dealer's support. By understanding our costumers needs, in Toyota we
do not relay on long endless surveys or sampling; we prefer talking to our clients and
the public to understand their needs, thus develop them. In Toyota we "walk the talk",
we rely on common sense to develop our product in order to reach customer
satisfaction. We really focus on the product, and believe that a good product that
satisfies the customer will market and sell itself.
Q2. What is your marketing budget?

Our marketing budget is not big, again we very much rely on the product to sell itself;
and as you know Toyota in the middle-east and GCC is very famous.
Q3. What is your most efficient marketing communication channel? Why?

Our most efficient marketing communication channel in Saudi I, we believe, printed
media (billboard and newspaper adverts to be precise) and TV advertisements. Because
in Saudi we our target customers (in business to costumer sale) are middle aged men,
working class men. Not only they will buy cars for themselves, but they will also for
their families. Worldwide channel is different from one country, it all depends on the
culture; for example here in Saudi our target customers are mostly not into technology;
1
APPENDIX
thus we rely on the mentioned channels, in contrast people to social media that is
probably very much relayed on in the western world.
Q4. Describe the change in your marketing communication channel? Why did you change?
What are the consequences?

We are still using our basic channels, which are again efficient; and did he lp us
communicate to our target customers. Not only that those channels are reaching out to
everybody, not just our target customers. Today we are developing our social media
channels such as twitter, facebook and youtube; to reach younger customers who might
be interested in our new youthful cars such as the FJ. I believe that there are no
consequences to using new channels, and that there are lots of benefits to using new
channels; such as regularly updating their customers with their offers and products, as
well as engaging with them.
2
APPENDIX
Appendix B: Questionnaire
Part 1: Personal Information
Percentage
Gender
Male
Female
74.40%
25.60%
32
11
Age
18 - 23
24 - 29
30 - 35
35+
27.90%
44.20%
11.60%
16.30%
12
19
5
7
Do you own a car?
Yes
No
In the future
69.80%
18.60%
11.60%
30
8
5
35+
16%
Female
26%
18-23
28%
Male
74%
Future
12%
Don’t Own
Cars
18%
30-35
12%
3
Count
Car
Owners
70%
24-29
44%
APPENDIX
Part 2: Brand Recognition
Percentage
What does this Logo stand for
BMW
Toyota
Other
From where did you
recognize the logo above?
social media
printed media
Tv
billboards
I drive one of their cars
I see people driving their cars
I do not recognize it
others
Count
4.80%
90.50%
4.80%
1
39
2
18.60%
34.90%
46.50%
25.60%
20.90%
81.40%
8
15
20
11
9
35
0
3
7.00%
90.00%
80.00%
Other
11%
70.00%
60.00%
Toyota
25%
50.00%
BMW
64%
40.00%
30.00%
20.00%
10.00%
0.00%
social media
4
printed
media
Tv
billboards I drive one
of their cars
Others
APPENDIX
Part 3: Marketing Strategy
Percentage
Describe Toyota in one
Word
Economical
Environmentally friendly
Good quality
Japanese
other
Are you interested in
buying a Toyota?
yes
no
Count
55.00%
10.00%
35.00%
47.50%
22
4
14
19
3
47.60%
50.00%
20
21
Not
51%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Economical
5
Environmentally
friendly
Good quality
Japanese
Intereseted
in a Toyota
49%
APPENDIX
Part 4: Toyota Recall
Percentage
Are you familiar with the recent Toyota
car recall ?
yes
no
what is car recall ?
35.70%
47.60%
16.70%
15
20
7
Did it effect how you perceive to the
Toyota image (your decision to
buy a Toyota car in the future)?
yes
no
maybe
I don’t know
9.30%
32.60%
37.20%
20.90%
4
14
16
9
what is a
recall
17%
Not
47%
6
Count
Familiar wth
the recall
36%
I don’t know
21%
yes it
effected
9%
no
33%
maybe
37%