A lot of companies nowdays are getting more aware about consumer’s behaviour and why some brands sell better than the others. When I was surfing on the internet few days ago, I came across a question that I found really interesting: Why does Toyota have the largest revenue and profit in its industry?
By looking at this advertisement, you can see how Toyota’s marketing campaigne has influenced its consumer’s behaviour. Besides from being cost-efficient and reliable, Toyota’s eco-friendly retrieval sets have established firmly inside many consumers. The product does not only have need recognition, which means the products satisfy consumers who want to go from their actual, needy state to a different, desired state, but also fullfills consumers’ functional and psychological needs.
As for the Prius, the vechicle has a relative low cost compared to its competitors, but most importantly consumers can associate themselves to the car, thus adding value to the product. Toyota is also very successful is establishing customer loyalty, therefore some consumer would include no other firms in their evoked set (alternative brands that consumer states before he or she makes a decision).
Back to the question, why doesn Toyota sell better than Porsche. We can easily conclude that even though both companies have their own customer base and strategies, Toyota have differentiated their products in a way that other companies such as Porsche cannot be defined with, such as hybrid cars. With different targeted consumers, different strategies, a cheaper and lower performance car can out-sell other expensive car brands such as Porsche and Mercedes-benz.