Microenvironmental Factors Affecting Toyota

1574 WordsJun 13, 20137 Pages
Microenvironmental factors are “The factors close to the company that affect its ability to serve its customers” [principles of marketing]. The microenvironmental factors that affected the introduction and sale of the Toyota Prius were it customers, competitors and publics. Customers are anyone who buys or rents from the company. Customer are the most important microenvironmental factor that affect company as they survive on meeting the wants and needs of the customer and failure to do so will result in the company failing. Toyota study their customers and saw that they wanted a car with better fuel consumption and as a result Toyota decided to make the Prius, their first hybrid car. Toyota dealt with their customers by setting up…show more content…
The biggest factors of the Toyota Prius’ microenvironment are media and the government. Toyota has worked with Government bodies and has asked for tax incentives encourage people to buy more environmentally friendly cars to increase the amount of hybrids sold. Toyota also has spent 15m of its 200m annual marketing budget on the Prius. It has introduction ads that appealed more to peoples’ emotion to get them to buy the Prius. Overall, Toyota has analysed its microenvironment extremely well as it has maintaining its competitive advantage over it competitors and has sold over 1m Prius with the waiting list of the Prius waiting list being over 18 month and becoming a status symbol among Hollywood stars. Question 2: The macro environment consists of six forces that affect the whole microenvironment, demographic, economic, natural, technological, political and cultural forces. The Toyota Prius is such a highly technologically advanced vehicle with its four cylinder petrol engine and 33-kilowatt electric motor. This could be one of the demographic factors that prompted the introduction of the Prius for Toyota. The Prius appeals to Generation Y also known as the “echo boomers” who were born between 1977 and 1994. Their comfort with computers, digital technology and overall technical advances prove they are and attractive target for marketers wanting to create a device at the high end of new, innovative devices on the market today e.g. iPad , Toyota Prius. The economic

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