'Promotional and Advertising Strategies Essay\r'

'The author comes from Iran, with an ideological and religious daemon g every brand upnment which professs and control conditions all of economical and industrial activities with an arm to teeth minority. In much(prenominal) countries they support give and sell e truly miserable quality with any damages that they want, and actually customers consume non legion(predicate) choices, and slightly all of furtheranceal techniques and strategies be kernel little! So here we ar talking ab step forward reposition trade and free market countries the like US. This penning review and scrutiny the circumstances skirt the promotional and announce Strategies for two railroad simple machinemotive companies: TOYATA and HUNDAI.\r\nThe author is very curious about those companies, beca mathematical dramatic playction HUNDAI (1967) began railway car crossingion nigh 32 years after TOYOTA (1935)! But now, in all aspects both companies atomic number 18 equal in quality, p rovokering, marketing, price and customer service, until now HUNDAI is further! HMC (Hyundai repulse Company) was unknown place with scummy quality and seamy price cars, entirely after it came in the US market born-again its growths to tall quality and sumptuousness quickly and stealing loyal customers away from some industry pi ch deoxyadenosine monophosphatei 1rs! But how was this late- locomote car wantonr suitable to gain an returns in this extremely rivalrous market? (Graf B, 2013)\r\nIntroduction\r\n explanation of Advertising: The count onation â€Å"Advertising” first appeared in the 17th century. It has its settle down in the Latin word â€Å"advertere,” which means, â€Å"to make mint notice or know.” It can be roughly explained as â€Å"to extensively notify the public.” According to the dictionary of Chinese Etymology, the Chinese definition of advert means, â€Å"openly announce to the public,” with the annotation o f â€Å" much(prenominal) as displace up notices or publishing advertisements in smartspapers.” (Yan Boqin, 1978)\r\nDefinition of Marketing: â€Å"Marketing” is an economic term meaning promotion and dispersion. Originally applied in agri refining, it force much and more attention after the nineteenth century and spread rapidly. From economic, social, business and customers’ angles, the property of its definition can be determined (Li Zongru, 2004).\r\nFor highlighting the brand in the eyes of public and attracting new customers, product promotion is one of the essentials. There are some channels to promote a product or service. Successful promotions stiffly dep finish ups on believe and refining of plenty, style of living, income level, g all overnment policies and economical and industrial infrastructures. near firms utilization multiple methods, while new(prenominal)s may use contrary methods for variant marketing purposes. Irrespective of the lineament of service or product, a strong pigeonholing of promotional strategies can jockstrap position the federation in a favorable light with not unless current customers but new ones as well.\r\nThe quest are top ten promotional strategies: â€Å"1- Con sees, 2-Social Media, 3-Mail Order Marketing 4-Product Givea shipway, 5-Point-of-Sale Promotion and End-Cap Marketing, 6-Customer Referral Incentive Program, 7-Causes and Charity, 8-Branded promotional Gifts, 9-Customer Appreciation Events, 10-After-Sale Customer Surveys” (Carl Hose. 2014; clarified businesses; Retrieved declination 2, 2014 from http://smallbusiness.chron.com/top-ten-promotional-strategies-10193.html)\r\n examine the promotional strategies used by Toyota and Hyundai for a mistakable product\r\nToday almost all of auto makers defecate a lot of experiences and they draw access to fresh and new technologies. So they can produce safe quality and intimately design cars and to a fault turn good s ervices to customers, especially in US, in that location is no way to sell any products with downhearted quality and low customer service. In termination the best promotional strategies are those that involve shade, attitudes and beliefs of the people. The following are some ex adenineles of such strategies. Green purlieu: Increasing public certifiedness about environmental protection, governments forced to implement hard regulation and criteria for railcar firms.\r\nToyota published on its weathervanesite:\r\n1. Diversifying aptitude sources: â€Å"Toyota is ontogeny various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important affair in priorities of Toyota and working toward creating a prosperous high night club and clean world.” 2. Fuel cubicle: â€Å"By generating electricity from hydrogen, Toyota’s yield cell fomites are not only environmentally friendly theyâ€⠄¢re besides exceedingly energy efficient. With such eco-friendly characteristics, Fuel Cell Vehicles are the next step toward achieving sustainable mobility.” 3. Plug-In hybrid: â€Å"Introducing the next step for eco-friendly cars; a combination of the kindled engineering of current hybrids with home recharging. It has an increased electric range and produces lower emissions.”\r\n4. Measuring environmental issues surrounding vehicles: â€Å"For more improvements in efficiency, Toyota proactively manages power train efficiency, reduces vehicle load, and controls energy oversight by integration of fuel-saving technologies such as charge control, idling stop, etcetera” 5. mixed vehicles: â€Å"Along with our emphasis of conventional vehicles and hybrid vehicles as rompdamental warmheartedness technology while pursue further advancement.” 6. Alternative fuels: â€Å"Based on these core technologies, Toyota impart ruin next-generation vehicles ut ilizing alternative fuels such as gas fuel, electricity and hydrogen.” (Retrieved December 2, 2014 from http://www.toyota- worldwide.com/innovation/environmental _technology/) Hyundai published on its website:\r\n1. dreary Drive: Our Blue Drive® technology gives you lower pollution and higher(prenominal) performance. Blue Drive is a philosophy that guides Hyundai in its effort to become the automotive leader in sustainability. It’s helped focus our engineers and designers on creating hoy vehicles, developing more efficient power trains and unconstipated inventing trademarked 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 fit entirely on hydrogen. Their only emission is water. 3. electric hybrid: Hyundai introduced the first electric hybrid with electrifying performance. Our engineers adopt invented the industry’s most march on hybrid vehicle. 4. New barrage: Unlike other hybrids on the market, ours uses a patented Lithium Polymer battery. It has 40% less volume; it’s 25% lighter and 10% more efficient. T\r\nhe battery in like manner has a longer life-span-it comes with a life story warranty guarantee. So you can savor good about preserving the environment for the life of your vehicle. (Retrieved December 2, 2014 from https://www.hyundaiusa.com/new-thinking/environment.aspx) guideword: â€Å"An announce slogan is usually a rook tagline †less than five words †that tells potential customers the benefits they can expect when choosing your product or service, or establishes your caller-up brand.” (Kristen Hamlin, 2014; Retrieved December 2, 2014 from http://smallbusiness.chron.com/ importance-ad-slogans-31343.html) 1. Toyota’s monomania slogans: marketing efforts in North America induce focused on emphasizing the positive experiences of ownership and vehicle quality. The ownership experience has been targeted in slogans such as â€Å"You asked for it! You got it!” (1975â€1979); â€Å"Oh, what a noteing!” (1979 †September 1985, in the US); â€Å"Who could ask for anything more?” (September 1985 †1989); â€Å"I love what you do for me, Toyota!” (1989â€1997); â€Å"Everyday” (1997â€2001); â€Å" lay down the feeling!” (2001â€2004); â€Å"Moving Forward” (2004â€2012); and â€Å"Let’s Go Places” (2012â€present).\r\n2. Hyundai’s Brand slogan: â€Å" late THINKING. NEW POSSIBILITIES.”; reflects the will of Hyundai travel Company to score new possibilities to benefit the world and its people by encouraging and developing new thinking. All members of Hyundai have the brand slogan deeply engraved in their hearts as they move forward in their effort to provide new values and experiences coveted by directly’s customers with advanc e(a) ways that are unique to the brand, driven by new thinking about customers and cars.( Retrieved December 3, 2014 from http:// intercontinental .hyundai.com/WW/Corporate/Corporate Information/BrandSlogan/index.html) New succinct Vehicle strategy: According to the Ford India President, thickset car gross revenue are pronounce to repeat by 2018 from near one million units in 2013.\r\nThis surge in pray in expected to be fueled by rising expendable incomes in the second most populous country in the world, and also owing to the change magnitude 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- duncish-segment/) 1. Toyota: The motorcar market in emerging markets is growing each year in tandem with the economic growth of each country. inside those markets, on that point has been m arked growth in the sales of compact vehicles, so Toyota is promoting a new compact vehicle dodge that emphasizes the compact vehicle wag and seeks to get word the needs of consumers in emerging markets.\r\n2. Hyundai: The federation Korean automaker ranked seventh among mass-market brands in the this year’s U.S. Initial Quality ponder by J.D. Power and Associates, topping such brands as Toyota, Infiniti, Audi and Lincoln. Hyundai’s 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/ obligate /20101206/RETAIL03/ 312069982/hyundai-plans-new-brand- schema) pecuniary Services Strategy: Every year, millions of people around the world transition out of leanness in any reduce of waysâ€by adopting new out-of-the-way(prenominal)ming technologies, investing in new business opportunities, or finding new jobs, for example. in effect(p) in additionls fo r saving, sending, and borrowing money and mitigating fiscal 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)\r\n1. Toyota: Toyota Financial Services has constructed a global network that covers around 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. therefore effectively helping them in fashioning their own cars more affordable to their potential consumers all around the world. Again being a strategy that helps them a stronger competitor in the market.\r\n2. Hyundai: Through our service brands, Hyundai Motor Finance and Kia Motors Finance, we provide financial products tailored to meet the needs of Hyundai and Kia dealerships nationwide, incl uding 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 Plan, Inc. offers vehicle service contracts and other vehicle protection products on a lower floor the Hyundai Protection Plan and Power Protect brands. (Retrieved December 2, 2014 from http://www. Hyundaicapital america.com/hca.aspx)\r\n dickens uses for consumer-oriented promotions that could assist a smart set in both the short and long term for the carmaker companies\r\nWhat are consumer-oriented sales promotions? There are two points of view: 1- Retail Promotions live of inducements offered by retail merchants to consumers includes retail coupons, price discounts, double coupons, special displays, features etc. 2- Consumer Promotions consist of inducements offered by manufacturers to consumers includes manufacturer’s grants, bonus packs, coupons, samples, reba tes, etc. There are some reasons for the importance of the sales promotion.\r\nFirst, the growth of retailer power in distribution channels has led to an excess in consumer promotions. Sometimes, manufacturers make special offers to consumers because a powerful retailer insisted that they do so. Another 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 capricious force behind consumer promotions.\r\nSecond, the type of competition has converted significantly during recent years firmnessing in ever greater consumer price sensitivity. The growing of brands and brand extensions, metier segmented consumer markets, and lower brand loyalty have combined to make consumers much more aware of price given that many product categories are populated by several competitors.\r\nThird, price deals have become the rule or else than the exception for many products. Rebates on ce rtain brands of automobiles, department store sales, and coupons on many grocery items are only a few areas where consumers have grown to expect price breaks. Indeed, the expectation is more than, when possible, many consumers will front for promotional offers rather than buy with no deal.\r\nFourth, advertising clutter has forced marketers to find new ways of getting consumer attention. Product benefits alone frequently prove insufficient to prompt consumer action much less get their attention. Thus, marketers increasingly look to sales promotion to find ways of breaking through to customers who baptismal font a constant bombardment of promotional messages.\r\nlastly increasing of consumer promotion can also be attributed to more pressure on marketing management for short-term results. Investors want to immediate bottom-line results rather than the long-run health or stability of the companies in which they invest. sales promotions are tools to increase near term sales. However , as their use becomes more common, their speak tos become fastness and recurring and therefore potentially self-defeating. (Retrieved December 5, 2014 from www.udayton.edu/…/Consumer%2520Promotion.p) The strategical manner in which the leading car alliance has made its price decisions by using one or more of the quatern pricing objectives\r\nâ€Å"The four Ps of marketing is the combination of product, price, place (distribution), and promotion. Marketers develop strategies around these four areas in marketing to fire branding, sales, and profitability. â€Å" (Ross Gittell, 2014, Retrieved December 5, 2014 from http://catalog.flatworldknowledge.com/bookhub/reader/3157?e=gittell_1.0-ch06_s02#)\r\nPrice is the only revenue generating element amongst the 4ps, the rest being personify centers. Pricing objectives or goals give the gild style to the whole pricing process and consider the following: 1- Survival; 2- Get militant advantage; 3- Financial, marketing, and str ategic objectives of the fellowship; 4- Enhance image of the firm, product or brand; 5- Hold price leadership; 6- gain market share; 7- Consumer price point and cracking; 8- Available resources; 9- Catch target of return of enthronement and sales; 10- Prevent new entrants; 11- Match competitors prices.\r\nToyota gets course credit for being the most known brand on the market; however the Corolla comes up nowhere in the competitor charts in terms of price, model distinction, or performance (TrueTrends, 2012). Providing a competitive advantage for the Corolla requires several(predicate)iating the car in pricing, quality, service, innovation, brand, convenience, and anywhere else that makes it more desirable over its competition (McCrimmon, 2008).\r\nHow Toyota as a leading company can offer concluding prices? i.e. $89 a month for lease! The answer is: by maintaining its lowest personifys. Along with differentiation Toyota also uses low cost to try and gain a competitive advant age in the automotive industry. â€Å"Toyota is (or was at the time) the low cost producer in the industry. Toyota achieves its cost leadership strategy by adopting lean production, careful 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.\r\n social trends have moved away from an individualistic cultureâ€which identified social location and hierarchy establish on material possessionsâ€to an environmentally aware society (Grewal & Levy, 2012). With consumers’ minds wrapped around things like fuel mileage, cleaner emissions, and hybrid technology we find them moving further away from SUVs and trucks (Farooq, 2012). However, the 2013 Corolla is foreshadowed to be outshined by the surround Dart, as i t loses some of its competitive edge in pricing and other award winning features (TrueTrends, 2012).\r\nBy 2012 Toyota is planning to have more than 20 models that use batteries to extend fuel economy just 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 reading of their Prius by June 2012 (Krolicki). This re-chargeable version will position Toyota to sample to take over as a low cost leader of hybrid technologies within the market, which supports Toyota’s overall strategy of low cost (Krolicki).\r\nTwo actions that other car companies may take in collection to differentiate themselves and gain a competitive advantage Hyundai rightly understood the consumer motivations to create magnetised products, price them strategically, position them sharply and keep making the magnetism more potent. Having understood the finer differences in consumer motiva tions, it opted for sharp arrow ‘reasons-to-buy’ differentiation over the ‘blanket-all address’ 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)\r\nThe 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)\r\nHyundai 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 com petitor, it should evaluate their worth to the customer and that value to the competitor price. Competitors are more likely 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 stiff competition to Honda in all the segments and poses an even bigger threat to expansion 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 company\r\nThe TV advertising have been having the largest audiences in all ages, but car buyers are particular proposition ages who have not enough time to watching TV even\r\nless than one hour per day, because they are too busy in today competitive era. kinda the internet via smart phones and computers is like a tactual sensation became as a inseparable part of their life, at any time more than 15 hours a day, and even when they are eating, renderering, walking, sporting, biking, swimming, and in any place even in high mountains and deep forests, roadstead and villages!\r\nAnother reason for effectiveness of internet rather than TV is: new intelligence algorithms via data dig analyze the behavior of customers and put proper Ads to the web pages associate to the target customers with very lower advertising costs. As a most important area which advertisers should also pay attention to it is cultural differences, they have to be careful since cultures vary in different countries, they must understand the local audience culture before releasing new commercial messages, in order to avoid any misunderstanding.\r\nAnother internet related way for advertising can be the online promotional games, such as Toyota’s use of MSN commercial games to promote its products, for instance. There are two synergetic contents focusing on entertainment: fun activities and downloads. Both of them were found in about o ne 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.\r\nActivities for fun included practical(prenominal)(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 skin beauty analysis (www.neutrogena.com), and so forth. Downloads promoting and attached with the company’s brand were also analyzed. ground 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= school text%2Fplain;%20charset=us-ascii)\r\nFor the carmakers, another impressive promotion method is â€Å" over(p) test ride”. The buyers are very stinging to getting experience to drive with a b rand new car and having the opportunity to really feel its advantages and disadvantages. For encouraging the customers to more participating in test drive activities, oblation some gifts can evermore increase the interest and willingness 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.\r\nConclusion\r\nSome observers suspect that Hyundai’s recent successes may be anomalies, abetted by the difficulties that the company’s U.S. and lacquerese competitors faced after the global economic crisis, the rise in the yen’s value, Toyota’s wave of recalls, and the 2011 earthquake and tsunami in Japan and Fukushima nu white disaster. Others say that the company’s highly protected home ma rket has enabled its growth, allowing Hyundai to establish a global presence while its domestic competitors constrain themselves to tiny slivers of the Korean market.\r\nBut the single performer that has made the most difference is the company’s own interest in building inaugural capabilities. Starting in 1998, Hyundai’s 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 get together States and other fiercely competitive markets. Early on, that meant offering a comprehensive warranty and taking specific steps to dramatically improve its quality ratings. erstwhile customers were convinced of the brand’s reliability, Hyundai added other capabilities, such as design, which led to a more diversify product line and more stylish features. Meanwhile, it genuine a knack for getting the word out through clever, consistent marketing.\r\nThe result is a lucid mix of quality impr ovement, design, and marketing that gives Hyundai a clear advantage over its industry competitors. Although these are mandatory capabilities at all automakers, Hyundai has excelled at combining them over the past decade, and its sales numbers reflect this success. The company’s effort to become a best automaker is beginning to pay off, and it’s far enough along that its story can be credibly told. (Source: Strategy & Business. February 26, 2013. Retrieved December 2, 2014 from http://www.strategy-business.com/ obligate/00162?pg=all)\r\nReferences\r\nAnshuman goyal, pricing strategy of Hyundai, 2007; www.honda.com\r\nAnshuman goyal, pricing strategy of Hyundai, 2007; www.hyundai.com\r\nCarl Hose. 2014; Small businesses; http://smallbusiness.chron.com/top-ten-promotional-strategies-10193.html\r\nHans Greimel, 2011. http://www.autonews.com/article /20101206/RETAIL03/ 312069982/hyundai-plans-new-brand-strategy\r\nKottler, Keller, Jha, Koshy, 2007, Marketing Management \r\nKristen Hamlin, 2014; http://smallbusiness.chron.com/ importance-ad-slogans-31343.html\r\nhttp://www. gatesfoundation.org/What-We-Do/Global-Development/Financial-Services-for-the-Poor\r\nRoss Gittell, 2014, http://catalog.flatworldknowledge.com/bookhub/reader/3157?e=gittell_1.0-ch06_s02#\r\nTrefis Team, 2014. http://www.forbes.com/sites /greatspeculations/2014/06/13/tata-motors-looks-to-improve-passenger-car-sales-by-penetrating-the-compact-segment/\r\nSeounmi Youn, 2001, http://list.msu.edu/cgi-bin/wa?A3=ind0209c&L=AEJMC&E =0&P=3326464&B=…_&T=text%2Fplain;%20charset=us-ascii\r\nStrategy & Business. February 26, 2013. http://www.strategy-business.com/article/00162?pg=all\r\n'