In Depth Analysis Of The Toyota Motor Corporation Marketing Essay

In Depth Analysis Of The Toyota Motor Corporation Marketing Essay The main products for the company are categorised into three segments they are automobile, finance and housing communication system. The core business was automobile segment engages in the design, manufactures and sales that includes a car smaller than a compact car to luxury and sport vehicles, as well as trucks, SUVs, buses and minivans. Additionally Toyota produces automotive parts and accessories for its own use and for sale to others. Popular models include Land cruiser, Lexus line, Camry (best selling passenger car in America, 2004) and Corolla as well as the Tundra (Motor trends truck of the year, 2000). Toyota annual sales approximately reaches 7.5 million models on all five continents (America, Europe, Asia, Africa and Australia) in which the main markets for both Toyota and Lexus brand vehicle is the United States, followed by Japan. The other highest markets areas are U.K, China, Australia, Canada, Germany, Thailand, Saudi Arabia and the South Africa. In all, Toyota markets vehicles are more than 170 countries/regions. The global main competitors for Toyota are VW group, General Motors, Renault Nissan, Hyundai Kia and Ford. As shown in the appendix1 during the year 2008 Toyota dominates the global light vehicle sales with the highest market share of 14% by overtaking the main rivals like GM and Hyundai Kia in the midst of recession, instead booms the profit. But the position among the competitors changed drastically in the year 2009. The financial summary of Toyota for the year 2009 is tabled as follows. (Billions of yen) The financial report clearly shows that during the year 2009 Toyota made a net loss of  ¥437 billion ($ 4.3 billion) that never happened from the past 1950. It happens due to the worst sales, when company could not sell up to that volume in which that company take out its costs which related to production and sales. Whilst Toyotas president, Fuji Cho openly avowed in the year 2002, that Toyota is aiming for 15% of the global market share by 2010 accommodating itself with the new global vision named as Innovation into the Future. The new theme (vision) consists of four elements they are recycling based society, development of motorization on a global sale, diverse society, and age of information technology. Hence with the severe competition Toyota continues an effortful attempt to attain a goal outlined in the Global Vision 2010 by increasing its competitiveness. ANALYSIS OF THE CURRENT BUSINESS ENVIRONMENT AFFECTING THE AUTOMOBILE INDUSTRY: According to Johnson scholes (1999), different steps to be followed in environmental analysis for finding the strategic position of the organisation they are 1) Assessing the nature of environment, 2) Auditing environmental influences, 3) identifying key competitive forces, 4) identifying competitive position and finally identifying the key opportunities threats. The external environment, as a determined element remain a topic of interest in management literature (Joshi and Campbell 2003; Nahm et al., 2003). Hence, a balance relationship between environment and manufacturing strategy is complex for organisation to achieve success (skinner, 1969; Hayes and Wheelwright, 1984). On the other hand Pagell and Krause (1999,2004) argued that manufacturing flexibility is a global event in high performance organisation regardless of the environment they operate in. However, it is difficult to handle environmental uncertainty (complex) by depending only on primary analysis which is derived from the output of diversity ensuring that different parts of firms responsible for different aspects of diversity are unattached, and given resources and authority to handle their own part of the environment (Johnson and Scholes 1999). Considering the above factors the analysis of Toyota Motor Corporation in the automobile industry is carried out with help of analytical tool kit such as PESTLE and FIVE FORCES. PESTEL ANALYSIS: As shown in the Appendix-II PESTEL analysis for Toyota Automobile Industry is done with respect to the geographical locations of U.S and Japan. The most vital factors from the analysis have been taken and described below to find the current opportunities and threats of the company. The automotive industry is subject to various government regulations including those related to vehicle safety and environmental issues such as emission levels, fuel economy, noise and pollution. Many governments also impose tariffs and other trade barriers, taxes and levies, and enact price or exchange controls. Toyota has incurred and expects to incur in future, significant costs in complying with these regulations. New legislation also subject Toyota to additional expenses in future. As an automotive manufacturer, Toyota may became subject to legal proceedings in respect of various issues, including liability and infringement of intellectual property and Toyota is in fact currently subject to a number of pending legal proceedings could adversely affect Toyotas future financial condition and results of operations. Toyota is subject to various risks associated with conducting business worldwide. These risks include political and economical instability, natural calamities, fuel shortages, interruption in transportation system, wars, terrorism, labour strikes and work stoppages. The occurrence of any of these events in major markets in which Toyota purchases materials, parts and components and suppliers for the manufacture of its products or in which its products are produced, distributed or sold, may results in disruptions and delays in Toyotas business operation may adversely affect Toyotas financial condition and result of operation. The worldwide financial services industry is highly competitive. Increased competition in automobile financing may lead to decreased margins. A decline in Toyotas vehicle unit sales and residual in value risk due to lower used vehicle price increase in the ratio of credit losses and increased funding costs are factors which may impact Toyotas financial operations. The likelihood of these factors materializing has increased as a result of the ongoing rapid worldwide economic deterioration and competition in automobile financing has intensified. If Toyota is unable to adequately respond to the changes and competition in automobile financing, Toyotas financial services operations may adversely affect its financial condition and result of operations. Increase in prices for raw materials that Toyota and Toyotas suppliers use in manufacturing their products or parts and components such as steel, precious metals, non-ferrous alloys including aluminium and plastic parts may lead to higher production costs for parts and components. This could in turn negatively impact Toyotas future profitability because Toyota may not be able to pass all those costs to customers or require its suppliers to obsorb such costs. PORTERS FIVE FORCES: Michael Porter identified five forces that affect an industry. These forces are degree of rivalry, threat of substitutes, barriers to entry, buyer power, and supplier power. For the more on this framework proposed by porter, see Appendix. Viewing the automotive industry through the framework of porters five forces can be helpful in understanding the forces at play. Degree of Rivalry: The automotive industry is highly competitive with Big 3 such as GM, Ford and Daimler Chrysler. In the 1980s the Toyota entered a fairly disciplined U.S market and have been very focused in growing their shares of the market. The great diversity of rivals in terms of cultures and philosophies has intensified rivalry in the Industry. Market growth is slow in the established markets of U.S and Europe, and companies must fight fiercely to eke out gains or prevent losses in market share. However, growth is potentially huge in the rapidly industrializing nations of China and India. In these booming markets Toyota could take advantage of the opportunities to reap handsome awards. The degree of rivalry in the automotive industry is further heightened by fixed costs associated with manufacturing cars and the low switching costs for consumers when buying different makes and models. Threat of Substitutes: The threat of substitutes to the automobile industry is fairly mild. Numerous other forms of transportation are available, but none offer the utility, convenience, independence, and value afforded by automobiles. However there are inherent underlying social and cultural attitudes that keep people from owning automobiles in some parts of the world. Barriers to Entry: The barriers to enter the automobile industry are substantial. For a new company, the start-up capital required to establish manufacturing capacity to achieve minimum efficient scale is prohibitive. An automotive industry is quite specialized and in the event of failure could not be easily re-tooled. Buyer Power: In the relationship between the Toyota and its ultimate consumers, purchasers of finished vehicles, the power axis is tipped in the consumers favour. Consumers wield the greatest power in this relationship due to the fairly standardised nature of the vehicle and the low switching costs associated with selecting from among competing brands. However, Toyota remains marginally powerful due to large customer to produce ratio. The automotive industry is a dynamic place. With the forces above at play, and with history as a guide, it is safe to stay that the Toyota must continue to change, evolve and adapt. OPPORTUNITIES: Increasing Demand for Hybrid Vehicles: Globally it is estimated that the demand for hybrid electric vehicles(HEVs) will be approximately 4 million units by 2015. Rising oil price and more emissions regulation are likely to increase the demand for HEVs, as hybrid vehicles are less polluting and less operating cost (more fuel efficient) when compared to conventional diesel and gasoline engine, Toyota industries has strong focus on devices for plug-in hybrid vehicles. The companys competency on hybrid technology is likely to drive growth in the medium term. Establishment of New Material Handling In North America: Toyota is formulating a program to expand its material handling equipment in North America. In this context, in March 2010, Toyota industries determined to create a newly owned sub-subsidiary, Toyota material handling North America (TMHNA). Previously, both Toyota and Raymond used to closely work together to boost business efficiencies in the areas of manufacturing, quality and procurement. Though, TMHNA has officially created to integrate management and operational activities in North America. Establishment of TMHNA would enhance the regional co-ordination and increase the performance of the material handling equipments products of Toyota industries. Growing Opportunities in Emerging Automotive Products: Toyota is now concentrating on the new markets such as India, China, Russia and Middle East region seeing that these markets are expected to view a strong growth in the future. In addition, Toyota also provides automotive logistic services. The company, with powerful automotive business operations, would be aided by the growing vehicle demand in these emerging markets. THREATS: Kyoto Protocol: The Kyoto protocol for the lessening of carbon emission went into effect in 2005, which results on industrialized countries to cut-down their green house gas emission from the 1990 level by 5.2% by an average level during 2008-2012. Consequently, Toyota appointed the prevention of global warming as one of its strategic management issue and concentrate on measures to reduce global warming, which lead to increase in the cost structure of the company drastically. Intense Competition: Toyota is involved in competition with many automobile companies at home and abroad. Any differences in the allocation of management resources and in competitiveness of cost or technology are likely to impact the companys status in the automobile industry and its business performance. Toyota industries compete with the competitors having large volumes of business and greater financial resources than those of the company. High level of competition in the market place could affect Toyota business operation and could erode in market share. Exchange rate Fluctuation: Toyota industries encompass the production and sales of products and the provision of services worldwide. Toyota is sensitive to the fluctuations in foreign currency exchange rates and is principally exposed to fluctuations in the value of the Japanese Yen, the U.S Dollar and the Euro. In the recent Japanese Yen appreciated significantly against the U.S Dollar. The strengthening of the Japanese Yen against the U.S Dollar can have a material adverse effect on Toyota Industries reported operating results, which may in turn affect the valuation of the company. ANALYSIS OF THE TOYOTA STRATEGIC CAPABILITIES: According to Haberberg and Riepel (2008) capabilities are things that customers and other stakeholders notice when they are dealing with an organisation. Hence it is vital to identify the capabilities of Toyota, which is carried out with the frame work of resource based analysis (appendix- ) and value chain analysis. Value Chain Analysis: One key program is called value stream mapping, an analysis tool the automaker has been using to improve assembly line productivity is supply chain. Toyota manages the supply chain so efficiently that its production process is near perfect and it simply known as TPS (Toyota Production System), which developed by Toyota to deliver more effectively the products which their customers require, in a timelier manner than traditional management approaches. The unique management system of Toyota made a different relation with the suppliers when compare to other competitors, they are Frequent and reliable deliveries from suppliers Quality parts Small lot size Supplier network Communication with suppliers Proximity to the customers Single sourcing Long-term contract Supplier training Reduced lead time. Toyota is not asking suppliers to reduce price and profit instead, to find a way to minimise cost without having any negative impact on customer value. The present situation is Toyotas ability in developing the TPS and in integrating the policies and practises of their own that is the extension of internal policy deployment through their supplier association into the supplier network and the active co-ordination and development of suppliers, directly and indirectly through the widespread application of the Toyota production system. Resource Audit: Resources of Rolls Royce can be grouped under then following four headings they are Physical resources, Human Resources, Financial resources and Intangibles. STRENGTH: Robust RD Capabilities: Toyota industries actively carry out its research and development activities. Its RD activities can be broadly divide into two areas product development and improvements performed independently within each business division and RD undertaken mainly by the RD centre separate from the activities of its business division and with a view toward company wide- management strategy. Strong RD capabilities helps the company to keep up with the latest technological developments in the market and also helps in developing new products and technologies, thus contributing to the rapid growth of the company. Strong Engineering Capabilities: The company has strong engineering capabilities, for instance the Toyota is extending its product portfolio to include hybrid engines and hybrid vehicles. The company also manufactures electric compressor for hybrid vehicles. The companys strong engineering capabilities allow expanding its product portfolio. WEAKNESS: Overdependence on Japan: A Toyota industry is highly dependent on the Japanese market for its revenues. This overdependence on Japan could have a dampening effect on the companys revenues if the companys sales in Japan do not grow as expected. Addition to this the concentration of operation in this area increases Toyota industries exposure to country specific factors such as changes in raw material prices, labour strikes, changes in economic conditions, and most important increasing competition price from low-priced products. Evaluation of Possible Future Strategies for the TOYOTA: After scanning the environment, performing the SWOT analysis, that showed a weakness in Toyota may at the same time huge opportunities. Now we need to know how to use this opportunities to overcome the threats, minimise the weakness and maximise the strength. Toyotas success is largely based on its forward-thinking, innovative management style and its rigorous standards of quality. The Toyota production system is much-studied strategy of design and manufacturing which emphasizes streamlining and elimination of waste giving rise to the Just in Time and Lean manufacturing movements and continuous error checking and improvement. In addition, Toyota has repeatedly been ahead of the trend in investing new technologies. Instead of focusing on reducing labour costs, Toyota has increasingly automated their production facilities. And with the release of the Prius in 1997, Toyota introduced the first mainstream hybrid vehicle, cashing in on the demand for fuel economy and reduced environmental impact. Like the Prius, the section line successfully addressed a new consumer sector, a plan that Toyota will continue to follow. These strategies combine to give Toyota a significant sustainable competitive advantage. In order to realize the image that Toyota is striving to achieve it is important to undertake a paradigm change from the following three perspectives they are are technology development, management and profit structures Acquisition of a Competitor: Acquisition of competitor is known as improvement strategy of expanding its core business. The acquisition will lead to rise in market share (barney and Hesterly, 2010) for Toyota through market penetration, market development and market expansion, if the acquire company is operating in more and different emerging markets. This form of acquisition is called horizontal integration and would lead to an increase in market share and decrease in competition. Toyota to exploit the merging market such as India and China it should acquire the existing competitor so that it is easily strengthen the market position and open new opportunities for competitive advantage New Strategic Capabilities: There are strong competitors for Toyota in the technology, marketing and manufacturing. Therefore to reduce the intensity of rival among the major players, Toyota can look into joint venture strategy to capture the emerging markets such as China, India and Russia. Implementation of Strategic Change: Surviving to highly competitive rapidly changing environment often requires firms to develop strategies that provide the right kind of flexibility to succeed their specific environments, thus achieving fit between the type of flexibility to succeed in their specific environments, thus achieving fit between the type of flexibility pursued and the demand placed by the environment. Negotiating: Negotiation should be there to understand the demand of both buyer and seller and these has a significant impact as the negotiations unfold and implementation begins. Implementation: Implementation is the critical part for the leadership and communication to execute the change management. The changes that should be made for merging should be planned in detail because there are many issues that are expected with acquisition such as integration challenges, culture, control system, financial operation and loss of key personal (Thompson, 2001). In order to overtake these problems Toyota has to do a proper planning and research before the implementation to get the positive outcome. Conclusion: The product developments are in increasing nature because of the emerging new markets and the technological factor is adding value to the company focusing for the next generation, hence I personally recommend on investor to invest with Toyota APPENDIX-II PESTEL ANALYSIS FACTORS IMPACT(opportunities threats) TIME SCALE POLITICAL: Political instabilities, fuel shortages, natural calamities, wars, terrorism and labour strikes Arab oil embargo turned fuel economy into an important automobile policy goal for the U.S government. The occurrences of any of these events will results in disruption and delays in operation. Prolonged disruption may adversely affect the financial conditions of Toyota Toyota Government relation are 1, Reliance on Business association 2, Personalized network and 3, emphasis on harmony. Changes in legislation Continuous process Every 5 years ECONOMICAL: Financial crisis that began in 2007 and accompanying sharp declaration of vehicle sales during 2008 serious challenges for all automakers. Energy crisis. Rise in price of gasoline. Exchange rate fluctuation with respect to Dollar Establishment of new material handling company in north America which will limit the cost of exporting the vehicle to US Alternative energy efficiency technology and more investment in RD Big cars got smaller, small cars got better Drove down demand for big, expensive cars, and pilled in capital from Japan and elsewhere, which helped drive up the dollar In March 2010 Continuous Continuous Continuous SOCIAL: Demand for fuel efficiency by consumers Intense Competition More demand for hybrid electric vehicles Resulted in more choices for buyers and searching opportunities in emerging market Estimated within 2015. Continuous TECHNOLOGY: Rising energy cost and increased emissions regulation are likely to increase the demand for hybrid vehicles. Toyota industries has strong focus on hybrid vehicles Demand to reach within next five years. ENVIRONMENTAL: Kyoto protocol The emergence of government regulation for vehicle safety and emissions. Reduction of green house by 14% from the 1990 level within 2012 4years LEGAL: Toyota may became subject to various legal proceedings in respect of various issues, including product liability and infringement of legal property, and Toyota in fact currently subject to a number of pending legal problems Adversely affect the Toyotas future financial condition and results of operation Continuous NOTE: Analysis mainly based on the Japan and US geographic location Appendix-III Porters Five Force Model New entrants Industry Competitors Intensity of Rivalry Buyers Suppliers Substitutes Appendix-IV Value Chain Analysis Reliance on Business association (internationalization)-well connected to each other and with politicians and bureaucrats. Personalized network- The use of personalized /informal network for political influence and mobilization in Japan is a more visible and frequent activity than in many other industrialized countries. Emphasis on harmony- strong emphasis on harmony among firms and policy makers.

Intellectual Property Rights: Copyright and Patent

Term Paper: Intellectual Property Rights: Copyright and Patent BY Indra2002 Term Paper: Intellectual Property Rights: Copyright and Patent Copyrights and patents hold a major importance for business owners, and companies. I will discuss in detail what a copyright and patent are and the importance the two of them hold. What is Intellectual Property Rights; it refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce which leads to patents. What is a patent?A patent is an exclusive right ranted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. In order to be patentable, the invention must fulfill certain conditions which are it must be new, inventive, and industrial applicable. Novelty meaning the invention must not e known before you file your application. It does not matter how, by whom or when in the world it has been made known. The invention counts as known even if it is you yourself who has used or published it.Inventive step is meant that the invention must differ significantly from what is already known. The solution must not be obvious to a person skilled in that technical area. That means new ways of combining known methods or objects are not necessarily patentable. Industrial applicability the invention must be industrially applicable. An invention is considered industrially applicable if it can be produced or utilized in any kind of industry but also other activities, such as transport, agriculture, hunting, public services and medical services.What is the purpose ot a patent? A patent provides protection tor the invention to the owner of the patent. The protection is a limited protection time, which is generally 20 years. The type of protection a patent provides is that the invention cannot be commercially made, used, distributed, or sold without the patient owners consent. These patent rights are usually enforced in a court. Why are patents necessary? Patents provide incentivizes to individuals by offering the recognition for their creativity and material reward for their marketable inventions.These incentives encourage innovations which assure that the quality of human life is continuously enhanced. You may ask what rights does a patent owner have, a owner has the right to decide who may -or may not- use the patented invention for the period in which he invention is protected. The patent owner may give permission to or, license, other parties to use the invention on mutually agreed terms. The owner may also sell the right to someone else, who will become the new owner of the patent.Once a patent expires, the protection ends, and an enters the public domain, which is when the owner no longer holds exclusive rights to the invention and becomes available to commercial exploration by others. Patents are present in every aspect of human life, from electri c lighting (patents held by Edison and Swan) and plastic (patents held by Baekeland), to ballpoint pens (patents held by Biro). What Is Copyright? † What Is Copyright? N. p. , n. d. Web. 18 Mar. 2013. How is a patent granted?The first step in securing a patent is to file a patent application. The patent application generally contains the title of the invention, as well as an indication of its technical field, it must include the background and a description of the invention, in clear language and enough detail that an individual with average understanding of the field could use or reproduce the invention. Such descriptions are usually accompanied by visual materials such as drawings, plans, or iagrams to better describe the invention.The application also contains various â€Å"claims† that is, information which determines the extent of protection granted by the patent. â€Å"Copyright vs. Trademark vs. Patent. † Copyright vs. Trademark vs. Patent. N. p. , n. d. w eb. 18 Mar. 2013. What kinds of inventions can be protected? An invention must, in general, fulfill the following conditions to be protected by a patient must be of practical use, it must show an element of novelty, that is, some new characteristic which is not known in the body of existing knowledge in its technical field.This body of existing knowledge is called â€Å"prior art†. The invention must show an invention step which could not be deducted by a person with average knowledge of the technical field. Finally, its subject matter must be accepted as â€Å"patentable† under law in many countries, scientific theories, mathematical methods, plant or animal varieties, discoveries of natural substances, commercial methods for medical treatment (as opposed to medical products) are generally not patentable. Who grants a patent?The national patent office or regional office that works with number of countries, such as the European Patent Office and the African Regional In tellectual Property Organization. Under such regional systems, an applicant requests protection for the invention in one or more countries, and each country decides as to whether to offer patent protection within its borders. The WIPO-administered Patent Cooperation Treaty (PCT) provides for the filing of a single international patent application which has the same ettect as national applications tiled in the designed countries.An applicant seeking protection may file one application and request protection in as many signatory tates as needed. â€Å"What Is Copyright? † What Is Copyright? N. p. , n. d. Web. 18 Mar. 2013. What is a copyright? A copyright is a form of protection grounded in the U. S. Constitution and granted by law for original works of authorship fixed in a medium of expression. Copyright covers both published and unpublished works. What does copyright protect?Copyright, a form of intellectual property law protects original works of authorship including litera ry, dramatic, musical, and artistic works, such as property, novels, movies, songs, computer software, and architecture. Copyright does ot protect facts, ideas, systems, or methods of operation, although it may protect the way these things are expressed. How is a copyright different from a patent or a trademark? Copyright protects original works of authorship, while a patent protects inventions or discoveries.Ideas and discoveries are not protected by the copyright law, although the way in which they are expressed may be. A trademark protects words, phrases words, symbols, or designs identifying the source of the goods and services of one party and distinguishing them from those of others. When is my work protected? Your work is under copyright protection the moment it is created and fixed in a tangible form that it is perceptible either directly or with the aid of a machine or device. Copyright may or may not be available for titles, slogans, or logos, depending on whether they con tain sufficient authorship.In most circumstances copyright does not protect names. Many people may ask why they should register their work if copyright protection is automatic. Registration is recommended for a number of reasons. Many choose to register their works because they wish to have the facts of their copyright on the public record and have a certification of egistration. Registration works may be eligible for statutory damages and attorneys fees in successful litigation. Finally, if registration occurs within 5 years of publication, it is considered â€Å"prima facie† evidence in a court of law.The United States has copyright relations with most countries throughout the world, and as a result of these agreements, we honor each other's citizens' copyrights. However the United States does not have such copyright relationships with every country. Many creative works protected by copyright require mass distribution, communication and inancial investment for their dissemi nation (for example, publications, sound recordings and films); hence, creators often sell the rights to their works to individuals or companies best able to market the works in return for payment.These payments are often made dependent on the actual use of the work, and are then referred to as royalties. I have found unlimited sources and information regarding patents and copyright, with all the information I now have a clear understanding exactly what is the differences with a title or name of a company and the steps to truly make an invention yours with ownership.

The Basic Maketing Concept

The report also hopes to target specific business functions and show ways of using the marketing concept to improve them. It will also identify ways in which marketing can help achieve various goals within the organisation. The Marketing Concept (alternatively known as a ‘business philosophy' or ‘a way of doing business') has become an effective way of improving the overall performance of many businesses in recent years. Companies have realised that in order to make profits and sustain them, they must consider the needs and wants of their customers. They must then compare these needs and wants to the product or service that they currently offer. The concept of marketing is based upon the idea that if the customer has a need and is satisfied with the product, then ultimately sales will be good – hence profit will be good. It goes without saying that every company's aim is to maximise their profit margin, but in order to do this, some tend to focus too much on the selling aspect and not enough on the actual customer. A Company can be orientated in different ways: A sales orientated company will focus purely on the amount that they sell, working on the assumption that sales and sales only can make money. Companies adopting this attitude have come under scrutiny, due to the actions of over-zealous salesmen who will stop at nothing to get a sale – you are probably familiar with the phrase â€Å"never trust a salesman†. This way of doing business is no longer acceptable as it has become apparent that in order to sell something, someone must want to buy it. The old style of â€Å"conning† the customer into buying goods whether they need them or not, purely to ensure a sale, is now shunned by most industries. A marketing orientated company is a customer orientated company. They take into account customer requirements and focus on them. Communication between a company and their customers is essential to ensure the success of any marketing method. Market research is used to identify specific requirements of both existing and potential customers. Satisfied customers are loyal customers who will inevitably create repeat business as well as providing free word-of-mouth advertising. This would undoubtedly result in increased profits. A production orientated company will focus purely on the production of their product. A company who cares enough about their ability to produce goods of only the highest quality possible must be admired for their dedication. However, dedication does not necessarily guarantee profit, and without profit, a company could easily fold. Although a similar concept to the one of the production orientated company (above), the product orientated company focuses on the product itself. The aim is to make the best product possible. Research and development is usually involved in the process, ensuring that there is a substantial demand for the product. It is hoped that a company will end up with a high quality product that will sell. The marketing mix consists of various factors that a company can mix to determine of there is a match between the needs of the customer and what the company currently offers them. There are four main elements of the marketing mix – Defining the characteristics of the product to meet customer requirements e.g. introducing optional features with a product that are not standard or providing an additional warranty that may not be deemed necessary in law, i.e. providing more than legally necessary with regard to the product. An important element of the marketing mix, the price places a value on the product. It is possible for the buyer and the seller to compare this price to that of competing products. It is then possible to alter the customer's perception of the value by offering additional elements such as cash trade discounts, credit facilities and easy payment terms. From the marketing point of view, the price is the ultimate way of calculating profit. Another word for distribution of the product. The product must be easily available to the customer in order for it to sell well. There are various channels in which a product can be distributed. For example, TJ600 would probably choose to distribute their goods by way of a supplier, but they could also introduce a direct mail order service to increase sales. In deciding which methods to use, you must first consider who your potential customers are and where they are likely to shop for these products. Although part of the marketing mix, promotion consists of four elements of its own called the â€Å"Promotion Mix†. These are – Advertising – paid presentations such as television advertising, newspapers and posters fliers etc Public Relations – the launch of a new product and the ways it can be promoted to the trade and consumer press Personal Selling – a method of promoting sales by means of oral communication. This can be either face to face or over the telephone. Sales Promotion – a way of enhancing consumer purchasing. This usually consists of displays, shows and exhibitions. Market Research is used to identify not only customer requirements but to identify any marketing problems that the company may be experiencing. Planning is extremely important when compiling the data to be used in the market research. In order for the results to be accurate, the questions asked must be relevant. This will involve discussions with marketing management and on occasion, outside consultants. Research can be used to improve any element of the product (detailed in the marketing mix). When considering any form of market research, it is important that any external factors affecting the results are considered. These are commonly known as PEST: Political – any new legislation that may affect the product Economic – unemployment rates, spending power of the consumer Social – environmental issues that may affect the product Technological – introduction of new technology that may affect the company Once a decision has been reached regarding the purpose and content of the research, it is necessary to determine the best way of getting a response. There are numerous ways of conducting market research, including postal surveys, telephone surveys and face to face interviews. The best response rate, however, tends to be with face to face interviews (usually questionnaires), due to the fact that an immediate response is given by the interviewee. It is vital that once data has been collected that it is carefully reviewed, in order to interpret the information given as a result of the research. Additional research may be carried out if the data shows that there is another area that can be improved upon. In order for a company to go forward in business, they must set objectives goals. These usually form questions relating to the business, such as: For example, the organisational goals of TJ600 may be to: Expand product range & distribution These objectives are usually made at a strategic level – in this case the managing director would be responsible for setting the objectives. It is reasonable to assume that TJ600 are aware of their position in the manufacturing business, due to the fact that they have been successful for 20 years. The goals detailed above give an idea of where the company would like to be in the future. All that is left is to figure out how to get there and it is at this point that marketing plays its role. Outlined below are ways that marketing could help achieve the aforementioned goals: In order to retain customer loyalty, it is important that the customer is satisfied with the product they currently buy. Market research is extremely useful in identifying customer needs and to establish whether or not they are completely satisfied with the product. It is at this point that elements of the marketing mix can be used to alter certain characteristics of an existing product e.g. if market research was to show that existing customers were basically satisfied with a product supplied by TJ600, but would welcome more after sales service, then management would want to look at the product element of the marketing mix. It is possible from there to ascertain whether extended warranties etc would be viable to the business with regards to cost effectiveness i.e. would additional staff be required? Again, market research is useful to determine whether there is a market for expansion of a certain product or expansion of an existing product to another country. Past and present success of a company cannot be taken as a guarantee for the future. Many large companies invest in regular market research to ensure that they stay one step ahead of their competitors. Although TJ600 has had continuing success in the past, it would be rather arrogant to expect the same success in the future. Expansion is a good way of improving on something that is already popular and offering the customer more choice at the same time. In today's business world, it is inevitable that at one point someone will offer customers an improvement on their current product. Investing in market research will help to ensure that, if a product would benefit from expansion, then you will be first to do it. Once a company has established their organisational goals and the marketing methods that they are going to use to achieve them, they must ensure that they have the co-operation of every department. Communication plays a vital part in marketing to ensure that the changes are implemented with maximum effect. For example, using the organisational goals detailed previously for TJ600, it would not be possible to make changes to the product range by consulting only the production department. Outlined below are the roles that other business functions would play in marketing: The finance department is usually responsible for setting annual budgets for the whole of the company and expects other departments to adhere to them. They are also responsible for setting time limits on credit facilities and these sometimes tend to be shorter than the customer would like. Communication between the finance department and marketing could look to improve credit terms if required and may allow room for compromise if a certain department required more money. It is the responsibility of the finance department to ensure that the company makes a profit and they may not be keen to spend more money or wait longer for customers to pay. This is where communication plays an important role; if it is explained from a marketing point of view that these additional costs would result in a higher market share or increased sales, then the finance department would realise that this would lead to increased profits. The production department is unlikely to welcome the idea of modifications or improvements to the product. They tend to work in long production runs and like to keep things as standard as possible. Communication between marketing and the production department may help them understand the need for improvements to a certain product – it may be that improvements are necessary in order for them to stay ahead of competitors in the same market. It is vital to the smooth running of any organisation that the right people are employed for the right jobs e.g. marketing may have highlighted the need for customised orders to be introduced, which in turn would mean that staff are required to work more flexible hours. It is the responsibility of the personnel department to ensure that the company has adequate staff to meet these requirements.

Nonverbal Communication And Its Impact On Social Environment

Communication is a process in which people verbally or non-verbally share information and ideas. Nonverbal communication is generally defined as, â€Å"conveying something without words. It includes hand gestures, facial expressions and other such body language or cues that communicate something† (Mirriam-Webster 2014). It is often used to make an expression of a thought or thoughts and may make your message more appealing and interesting to whom you are speaking. This form of communication generally has a great influence over our social environment and the entire communication process. There are several types of nonverbal communication; paralanguage, body movement, facial expressions, eye messages, attractiveness, clothing, space and†¦show more content†¦The patrons of the restaurant consisted of all types of ethnic backgrounds, socioeconomic statuses and genders. There were several distinctive patterns of behavior amongst everyone and they all seemed to have different, yet distinct, sets of nonverbal communicative behaviors. I observed two different groups, the elderly and the middle-aged adults. In order to remain impartial, I observed them differently to determine the differences that age and gender play a role in nonverbal behavior rules. I found that elderly people tend stand a lot closer to people they don’t know than their middle-aged adult counterparts. They also speak slower, allow more time to process information, and will often approach people from the front. I noticed a huge difference in the middle-aged. Whether male or female, middle- aged people spoke a lot faster than the elderly men and women. They often responded without allowing the person they were speaking to, to finish their thought and stood farther away from the person they were speaking to as well. I also noticed that several middle-agers, both male and female, often approached people from the side or from behind. In addition to the types and rules of nonverbal communication, I’ve learned there are five essential functions of nonverbal communication; accentuation, contradiction, regulation, reinforcement, and substitution. These functions can complement, regulate, or