College of Technology London

Masters of Business Administration

Course Code: MBA0510-L

Global Marketing

University of Wales Lampeter

Submitted by Mammasrayillath Jassim Mohamed

UWL ID 29002147

CTL ID 095466-88

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EXECUTIVE SUMMARY
The article here discusses about the companies moving to the domestic
marketing to the international markets. As its the era of globalisation the
companies are behind globalizing their products and selling their products
worldwide. Have used Toyota Motor Corporation as the example to discuss the
globalisation of the product. the entry methods, various challenges that they met
has been discussed. Toyota entering to the Indian market and the American
market have been used as the case to study the globalization. Strategic tools like
the SWOT analysis and the 4p’s have been used on the basis of Toyota’s
performance and potentiality of performance in the international market. Four
diagrams on the standardization and adaptation have been provided in the study.
This study has helped to understand and conclude that Toyota Motor
Corporation has been successful in matter of globalization. It has proved that
Toyota is threat to all the car makers in the world.

INTRODUCTION
Marketing is the process by which the companies marketer creates an interest in
the customer towards their product or services provided by them. The main
objective of the marketing is to generate as much as sales possible and make
profit out of it. It is by this that the company builds up a good customer
relationships and thus creates a value for products or services in the minds of
the customer.

Global Marketing is the kind of marketing that is done on a worldwide scale

with global market kept in mind. The main objective of the company is to meet
the global objectives set. The global marketing conditions will mostly be
different from the domestic marketing conditions. The company needs to
exploit the global opportunities for their product or services.

Domestic marketing is the kind of marketing where it is limited to a particular

political and geographical boundaries. A company who has not grown
internationally hence functions in the domestic area. The company needs only to
worry about the competition in the home country even if their competitors are
foreigners. The products and services are developed while keeping the home
consumers in the mind. They have to please the home consumers and with that
grow their business as big as possible and make profits.

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There are various challenges faced by the marketers of the company in the
international market. The marketers are required to develop a new marketing
strategy while entering internationally as the strategic planning that they do in
their home country cannot be used. The various factors like the external and
internal environment are to be considered while strategic planning. The factors
like the language barrier, the socio cultural difference and mainly the PESTEL
are to be considered.

According to Oxford University Press Glossary of Marketing Terms, global

marketing is defined as “marketing on a worldwide scale reconciling or taking
commercial advantage of global operational differences, similarities and
opportunities in order to meet global objectives.”

There are differences between the domestic marketing and the international
marketing. For a company the change from domestic market to the international
will cost them much time and money. This is due to the difference in the market
conditions. When the company has to move to an international market they need
people with good knowledge on the market, they should have people who could
help them in the new market conditions, people with knowledge on the
international banking is a must. The companies are supposed to change their
marketing strategy, they should bring difference in the attitude towards the
international market and adapt the conditions as soon as possible.

The strategic planning of companies may vary from the global market and the
domestic market. The process of planning on what strategies are to be used after
analysing the market, the resources available, the economic conditions etc is
known as strategic planning. It is the process by which the company analyses
the micro and macro factors with the help of various tools like SWOT analysis
PESTEL and Michel Porter’s Five Forces and then plans on what strategy to be
used for the better functioning of the company. The strategic planning will vary
from the domestic market and international market. The companies who have
been successful in their domestic market are the ones who tend to go
international and expand their business. The beginners will not usually take the
risk of expanding their business soon.

The current issues that the companies are in are that whether they should think
global and act as if they are a globalised company or whether they should think
global and act local. The companies are more likely to think globally and act

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locally as it is important that they satisfy the potential customers in each and
every country.

Various Challenges Faced by the Managers or Marketers

In today’s globalised era of business the business faces various kinds of

challenges or barriers while functioning. These challenges are primarily focused
on the marketing and the managing of their business. Therefore it is the
marketers or managers duty to tackle them properly and sort it out.

The customers are to be organised by different segments. The customers have to

be focused on the basis of providing them life time satisfaction. The companies
have to under promise and then deliver more than expected so that the
satisfaction factor remains high. Marketing should be focused on retaining the
customers rather than acquisitioning them. The marketing approach have to be
changed according to the updates.

ANALYSIS
The companies who plans to expand their business in to different countries will
be facing so many barriers than they face in the domestic market. It is difficult
to adapt in to the new market environment. Therefore the companies need to
alter their strategic planning accordingly.

STANDARDIZATION VS ADAPTATION

There are two types of marketing programs when entering in to a new market in
a different country. One is standardized product and the other is adapted
product.

The process by which the product or services, the distribution channel or even
the marketing mix of the company is kept standard is called standardization of
the product. This means that the product or service is same everywhere. There
will be no difference between the product in the home country and in the
international market. But there is possibility of failure of the product or service
in the market because it is not necessary that the consumers in the country be
satisfied with the product or services. CocaCola is an example for the
standardized product. The Coke is standard in each and every country. The
maintain a standardization policy when they manufacture the cola. While the
Adaptation is process by which the product or service is modified according to
the customer needs and wants of the particular country. In this case the product,

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price of the product will be different in each country. Pizza Hut is an example
for the adaptation policy. Pizza Hut’s is not the same at every place. They do
this because they need to satisfy the customers tastes.

“A Descriptive Model to Determine the Degree of Standardization/Adaption of

Advertising”

Melewar & Vemmervik (2004)

“Degree of Internationalization”

Albaum, Strandskov & Duerr, (1988)

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“Consideration in Developing the Adapt Stand Model”

Vrontis (2003)

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 “Standardization vs. Adaptation of the SME’s Marketing Program

Vrontis (2004)

CASE STUDY

As asked to do some study on a case study mentioning the a company’s travel

from the domestic market to the international market. The company selected in
this article is TOYOTA MOTOR CORPORATION.

A small introduction about Toyota Motor Company. Toyota is Japanese car

maker and the largest motor vehicle producer and seller in the world. The
company was founded in 1937 by Kiichiro Toyoda. From the foundation
Toyota has only reached heights in terms of any perspective. They have
expanded to 57 manufacturing companies in spread along 27 countries. Their
vehicles are sold in more than 170 countries.
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Toyota Motor Corporation (India)

The Toyota Motor Corporation entered in to the Indian market by joint

venturing with a company called the Kirloskar Group. They had signed the joint
venture deal in the year 1997 and they rolled out their first vehicle in the year
2000 from the Banglore plant in Karnataka. The TMC had seen the potential in
the Indian market for the Multi Purpose Vehicle so they came up with the
vehicle named Qualis which was a huge hit. It just took 2 years to acquire 20%
of the market MPV segment from the Indian giants Tata motors and Mahindra
& Mahindra. The entry strategy that Toyota selected was very good as they had
become a huge company in a matter of couple of years.

PRODUCT LIFE CYCLE OF QUALIS

The reason why Toyota has been a great success in the Indian markets are
because of the brand was already known in the market well before it was
launched. This was because Toyota is world brand and is multinational
corporation. The brand image was really good. The marketers of TKM targeted
the correct segment that is the multipurpose vehicles. As the Indian families are
generally big in size the multipurpose vehicles had a good scope in the market.

Toyota Motor Corporation (United States)

Toyota entered the U.S markets in between the 1960s and the 1970s. Toyota
had entered the U.S markets with the strategy of providing cars that were priced
lesser than the U.S counterparts. They had cost advantage over the American

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car makers. It was the Toyota Production System that help them to create the
cost advantage over the company. The American car makers were not ready to
use the modern techniques of those days and hence lost their market share in
their own home country. By 1982 ht Japanese car makers had taken up 30% of
the car sales in the America.

The next thing that they did to enter the American market was introducing small
cars. But then the cars that Toyota made didn’t meet the standards set by the
market. This was in 1957 when the Toyopet the small car of Toyota failed the
road tests. The car showed vibrations and heating problem. This had created a
barrier for the Toyota to enter the market. Then in 1960 they introduced a new
Toyopet that could with stand the American conditions. It was 1965 that Toyota
re-entered with the model Corona. This created a huge interest in the cars of
Toyota for the Americans. It sold 6388 in the introductory year itself which was
a good milestone in that times. Then came up with much more smaller cars like
the Corolla. Investing in small car segment was done because the American car
makers didn’t have small cars at that time, they instead had big cars with big
horse powered engine. Entering the small car industry gave them advantage as
they didn’t have any head on competition with the American car makers.

Marketing Mix (4P’s)

The Toyota uses the 4 P’s of the marketing mix properly to market their
manufactures.

Products- The products offered by Toyota are of sound quality, has got
uniqueness and a factor of superiority or luxuries.

Price- The value of the customers spending behaviour is kept in mind when the
products are priced.

Place- The location of the business is selected after pure research on the
potentiality of the customers. The channel of distribution is also taken in to
consideration.

Promotion- They make sure that they have a good technique to keep in touch
with the customers. They use the best possible celebrity in the country to
endorse their products.

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SWOT Analysis of Toyota Motor Corporation

Strengths

 The brand name Toyota itself is enough to sell the products. The brand is
known for its quality and its services.

 They had an early advantage on the leadership and commercializing the

hybrid technology and the electric vehicle techno logy.

 They have been planning to extent the Prius in to a zero emission vehicle.

 It is the technological advancement that has been shown in the Prius and
iQ City.

 They follow the Kaizen technology. Kaizen is a Japanese word that

simply means to improve the technology, manufacturing factors,
machines etc on a daily basis.

 They have got a huge cash reserve. This helps to have a good cash flow.

Weakness

 The quality had decreased a bit which resulted many quality incidents and
problems.

 There were some models in the European markets that did not do well.
Toyota was criticised for the dull models.

 Because of the quality problem that had occurred it resulted in intense

strain on the research and development which lead to more investment.

 The outdated models like the Yaris and Auris was not sold in the Europe
market as thought it would.

 Toyota was late in developing and producing cars for the Indian market
and the Chinese market.

 They did not see the emerging market in the automobile industry.

Opportunities

 They can improve the market in the United States if they can improve the
quality standards that they had lost in the recent years.

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  Have got a good opportunity to grow their market share in the emerging
markets.

 The sky rocketing fuel prices can lead Toyota to sell their hybrid products
in much more better ways. As the hybrid cars are much more fuel
efficient.

 Selling of their hybrid technology to Ford can encourage them to invest

in more Research and Development for Hybrid Tecnology.

 The youth market or the youth customers are looking for vehicle that can
be used in the street level.

Threats

 The recalling of different models in the recent years have been a big
threat to the brand.

 The ranking in the public survey has gone down which means the public
don’t prefer Toyota like before.

 Other car makers are being much more better in the terms of quality.

 Other car makers have been increasing their market share especially in
the United States. The Volkswagen have increased their market share to
7.2%.

 The Volkswagen has come up with Sirocco Coupe Eco friendly car which
could be a threat to the Prius hybrid.

 Toyota has been losing its market share to Volkswagen and the Hyundai.

CONCLUSION
As per this study it states that the strategic planning of a company in the
domestic market or the home country is different from the strategy planning
that has to be adapted for the international market. Always the international
market is considered to be difficult than the domestic market. In the case here
Toyota has proved that it is capable both in global market and domestic market
by the market share that it holds. Toyota has emerged to be the highest selling
and highest production car maker in the world. The companies that are planning
to go global are supposed to analyse the market first that they are about to enter.

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They should learn about the local culture, language, should have some people in
order to help them out there in the new market or else it will lead to failure of
the business for sure.

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REFFERENCES
 Jeannet P & Hennessey D (2004), Global Marketing Strategies, 6th
edition, Houghton Miffilin Company,Newyork.

 Keegan J (2002) Global Marketing Management, 7th edition FT Prentice

Hall.

 Kotler et.al Principles of Marketing,4th edition FT Prentice Hall,England.

 Parsons J & Dalrymple J(2002),Marketing Management 7th edition, John

Wiley &Sons Inc.

 Pettit F B (2003) Principles of Marketing 3rdeditio, FT Prentice Hall.

http://wn.com/GLOCALIZATION

http://www.casestudyinc.com/glocalization-examples-think-globally-and-act-
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http://www.businessteacher.org.uk/business-resources/case-study-
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http://www.scribd.com/doc/36310072/Toyota-Case-Study

http://www.scribd.com/doc/28381419/Toyota-Case-Study

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http://en.wikipedia.org/wiki/Strategic_planning

http://en.wikipedia.org/wiki/Global_marketing

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