Toyota Essay

368 Words2 Pages
1. Identify using a model the levels of a product. In planning its market offering, the marketer needs to address five product levels. Each level adds more customer value, and the five constitute a customer- value hierarchy. 1) Core benefit: This is the fundamental level. The service or benefit the customer is really buying. Marketers must see themselves as benefit providers. In Toyota case, they listening to teens, Toyota learned that Scion’s target age group of 16- to 21- years olds wanted personalization. 2) Basic product: Marketers must turn the core benefit into this product level. 3) Expected product: A set of attributes and conditions buyers normally expect when they purchase this product. Toyota understands that each country defines perfection differently. 4) Augmented product: Exceeds customer expectations. In developed countries, brand positioning and competition take place at this level. In developing and emerging markets, competition takes place mostly at the expected product level. 5) Potential product: Encompasses all the possible augmentations and transformations the product or offering might undergo in the future. 2. List and discuss the stages in the introduction of a new product. How is this relevant to Toyota? Every new product will pass through a series of stages from ideation through design, manufacturing and market introduction. Design: As competition intensifies, design offers a potent way to differentiate and position a company’s products and services. Design is the totality of features that affect how a product looks, feels, and functions to a customer. Toyota noticed that teens wanted personalization, they builds the car “mono- spec” at the factory, with just one well- equipped trim level, and lets customers choose from over 40 customization elements at dealerships, from stereo components to wheels and even floor mats.

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