Friday, January 22, 2010

Concentrated Marketing

Alex Brynza; MGKT 301, Sect. E


When companies begin to target segments, it is crucial to figure out how your going to differentiate yourself from your competitors. A great example that I found online was how the Toyota Company uses the concentrated marketing strategy to capture the market segment for hybrid vehicles.

Concentrated marketing (or niche marketing) strategy focuses on going after a large share of one or a few smaller segments, instead of going after a small share of a larger market. Toyota has had exceptional success with this stratefy because of its brand name that reminds people of reliability. Toyota began its hybrid market share 10 years ago with prius as its first vehicle (in 2000). Ever since then, it began expanding its selection of hybrid vehicles by including the Toyota Camry (America's top selling mid-size sedan), and the Toyota Highlander. By introducing a selection of different hybrid vehicles, Toyota was able to capture more customers, thus making it the World leading Hybrid System. Customers have a lot of discretion in chosing their vehicle preference. Whether they prefer a small size efficient vehicle (the Prius), or America's favorite mid-size sedan (the Camry), or even the Hybrid SUV (the Highlander); it caught many consumers thinking about TOYOTA!

Providing the largest selection of hybrid vehicles in its make, carrying a reputation for reliable cars, and by being one of the first car manufacturers to enter the hybrid market, Toyota was successful in grabbing a large market share in the small segment. By capturing the largest market share for hybrid vehicles, Toyota will not face as much difficulties when we enter the market of electric vehicles because its hybrid vehicles have proved to be a leader in innovating new opportunities for drivers. Toyota is a great example of concetrated marketing because it has successfuly dominated a large share in the small segment of hybrid vehicles.



This video on youtube is an example of how Toyota uses concentrated marketing to capture more market share for hybrid vehicles:


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