Toyota Camry 2018 Channel Management
Sales channels are the pillars of any indirect-sales organization thus creating need for channel management. Channel management, which is featured in a company’s marketing plan, is a process of selecting the most efficient distribution channels or routes to market products or services. Channel management is generally an organized network of agencies that perform activities that connect producers with users (Rosenbloom & Anderson, 1985). Channel management provides an organization with competitive advantage including access to broad network, improved customer service, exclusive distribution, and reduced distribution costs. Toyota, a superior player in the automobile industry, rides on the success of effective market planning, particularly channel management. Toyota Camry is one of the successful products of the company that have performed excellently in the market since inception. The following is an outline of the 2018 Toyota Camry channel management strategy.
Toyota’s effective marketing strategy integrates all the differentiators necessary to make the Camry hybrid stand out in the midsized hybrid sedan category. The 2018 Camry has a fuel economy of 52-mpg, a 30% improvement from the previous Camry (Rahman, n.d). Since the segment of midsized hybrid sedan is highly populated with models of various brands, competition is heightened. However, the Camry 2018 has capitalized on product, channel and image differentiations to thrive in the chilly environment. Toyota uses mixed media like the internet, billboards, magazines, direct mail and others to inform consumers on the benefits of the 2018 Camry in order to capture their attention and convince them to make purchases (Rahman, n.d.).
Toyota intends to use various distribution channels and marketing tactics for the 2018 Camry to increase brand awareness and encourage users to buy the product. Television is an important tool of communication since according to data, the ordinary American household watches television for averagely nine hours each day (Rahman, n.d.). By running TV commercials that highlight the value of the Camry, the target market is not only informed about the product but persuaded to buy. Social media like facebook, which has 604 million active users monthly, is another effective tool for Toyota to communicate to its target clients. Running adverts on social media will help to increase the Toyota Camry brand awareness. Consumers ranging between the age of 18 and 34 prefer to receive direct mails on market offers instead of online sources (Rahman, n.d.). Sending commercial messages to consumers via direct mail will also help to build brand awareness. In Japan, Toyota has various dealership sales channels including Toyota Store, Toyopet Store, and Toyota Diesel Shop among others. The company maintains such dealership sales channels all over the world. It intends to distribute the 2018 Camry using these channels.
In order to support the customer segment, a channel management strategy to build a formal program for selling the product to the customer segment is needed. Toyota can utilize the needs of its customers to create loyalty programs, market research, customer service, promotions and personal selling techniques. These deliver safety, comfort and reliability, as well as improve cohesion (Rahman, n.d.). For instance, to offer Camry consumers an excellent buying experience, Toyota can provide educational programs on driver safety and other related features like Garmin Navigation. This, among other strategies like insurance partnerships and follow-up communications like birthday fuel-up gift cards, builds consumer loyalty. This will fulfill Toyota’s goal of providing quality products and top notch experience.
Rosenbloom, B. & Anderson, R. (1985, June). Channel Management and Sales Management: Some Key Interfaces. Journal of the Academy of Marketing Science.(13)3. pp. 97-106. Retrieved from https://doi.org/10.1007/BF02729939
Rahman, S. (n.d.). Marketing Strategy of Toyota Motor Corporation (TMC). Retrieved from https://www.academia.edu/13175662/Marketing_Strategy_of_Toyota_Motor_Corporation_TMC_