Prius - Micro Environmental Affects

1.Micro Environmental Affects:

a. The company:

- The Company has expended plenty of money on R&D and marketing of the Prius.

- Well-coordination within the company.

b.Suppliers:

- With the successful of Prius, many companies invested in Prius to produce accessories and device such as: Panasonic developed cheaper battories

 The prices is lower  stimulating demand.

c. Marketing Intermediaries:

- Preparing materials and teaching how to use Prius efficiently  building a large and effective system of dealers who even had no problem getting price premium of up to $5000 over sticker price of Prius.

d. Customers:

- Toyota carefully studied the consumer market and adapted its marketing accordingly.

- Toyota pushed the technology of the car, used the Internet, and promoted environmental aspects of the vehicle encouraging customers to buy Prius.

- Espescially, in gen 2, Toyota broadened market by building a simple and less-technical type to serve customers who do not know very much about cars.

e. Competitors:

- A major aspect of Toyota's strategy was to get a jump on competitors who will have to enter the market later.

E.g.: Subaru, Hyundai, Honda, BMW, Lexus  all have Hybrids car.

- But Toyota entered first and that may help them in marketing hybrids in the future. They were the first may lead to they were the best and a leader of technology.

f. Publics:

- Promoting through the media, news groups with videos and press releases on the cars.

- Investing and holding Protecting Environment Campaign.

- Studying about the government and considering that: they will supply a tax deduction for consumers who buy more environmental friendly cars, free parking, etc...

2. Macro environmental affects:

a.Demographic:

- Baby boomers (1965 -1976) - major market of Toyota  Toyota have reached the stage where the kids are grown and gone  they have always been known for an interest in quality and willing to try and pay more for new technology like Prius

- Younger generations may concern more about environment and technology, and they also want a Prius, but few may be able to afford one.

b. Economics:

- Finding a way for a tax deduction  to lower the prices.

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