Marketing Mix Of Lexus and the USTR

Posted by Zander Henry on Aug-22-2018

1. marketing mix

1.1. Understanding the marketing mix

• The marketing mix is an important set of marketing tools and characteristics that a firm uses to increase penetration in the target market groups
• Using the marketing mix strategically includes focusing on seven important aspects of marketing and branding for an organization, namely: product, place, price, promotion, people, process, and physical evidence

1.2. Importance of marketing mix

• The marketing mix helps a company choose and decide on a suitable marketing strategy
• The marketing mix also helps a company in resource and budget allocation to different aspects of the marketing strategy and product development
• The marketing mix also allows a company to choose the right and effective marketing tactics for its promotional needs

2. Marketing mix for Lexus and the USTR

Lexus and the USTR makes use of the marketing mix strategically to achieve not only the marketing objectives but also the broader organizational objectives.

Marketing Mix Lexus and the USTR is presented below:

2.1. Product

Product is one of the most important components of the Lexus and the USTR Marketing mix. The distinctive characteristics of the product by Lexus and the USTR are:

2.1.1. Quality

• Lexus and the USTR maintains the high quality of products
• High product quality is maintained by adding value during different stages of the value chain
• Lexus and the USTR procures raw materials from reliable and trusted suppliers only
• These raw materials are processed under carefully maintained environments to maintain high and consistent quality of the products
• High quality promise and delivery also provides Lexus and the USTR with a distinctive competitive advantage

2.1.2. Ease of use

• The products manufactured and sold by Lexus and the USTR are relatively easy to use
• All products come with a user manual, which is easy to understand and which provides simple instructions for product use
• The consumers can also call the 24/7 helpline to understand details about product usage
• Also, retail representatives provide detailed instructions and explanations regarding the use of the product at the time of the sale

2.1.3. Portfolio broadness

• Lexus and the USTR has a broad portfolio of products
• The broad portfolio helps Lexus and the USTR in reaching different target groups in the market
• Also, the broad portfolio allows financial strength to Lexus and the USTR
• The broader product portfolio also adds more value for Lexus and the USTR

2.1.4. Benefits of product consumption

• Lexus and the USTR offers functional benefits to consumers of the product use
• These functional benefits are promised and delivered – however, they are also delivered by other similar products
• The distinguishing aspect of Lexus and the USTR is its delivery of emotional benefits to the consumer
• Products manufactured and sold by Lexus and the USTR promise consumers an ego boost, confidence, and security
• Lexus and the USTR also promises fulfilment of psychological needs on product consumption
• These psychological needs include, for example, the need for empathy, the need for belonging, and the need of feeling loved.

2.1.5. Different SKUs

• The products by Lexus and the USTR are available in different sizes
• Lexus and the USTR has made use of different SKUs to increase market penetration
• Different SKUs can be brought and used as per the consumption needs of the consumers, and the target markets
• Through the production of different SKUs, Lexus and the USTR has also increased the trial rate
• Different SKUs have also helped Lexus and the USTR improve its product accessibility

2.2. Price

Lexus and the USTR marketing mix focuses on a hybrid strategy for pricing to obtain maximum value for its products. The marketing mix Lexus and the USTR uses a combination of a number of techniques for pricing its products, which are detailed below:

2.2.1. Premium pricing

• By using premium pricing for some of its product ranges, Lexus and the USTR encourages favorable brand and product perceptions in target consumer groups
• Premium pricing for products also encourages a favorable quality perception of Lexus and the USTR products amongst consumers
• With premium prices, Lexus and the USTR has successfully also made some of its product ranges exclusive by restricting sales and production. This, in turn, leads to a perception g luxury in consumption products
• Premium prices add a touch of privilege and high value in Lexus and the USTR products
• Using elements of premium prices in other product ranges has also allowed Lexus and the USTR to maintain significantly high profits and a consistent business growth

2.2.2. Psychological pricing

• Since Lexus and the USTR has a number of different product ranges and product groups, the use of psychological pricing has been beneficial
• With the use of psychological pricing, Lexus and the USTR also successfully adds more value to its products from the point of view of customers
• Lexus and the USTR also gains higher sales with psychological pricing
• Consumer purchase a higher amount of Lexus and the USTR products because of its use of psychological pricing
• Lexus and the USTR is able to increase its target audience and broaden its target purchaser groups

2.2.3. Geographical pricing

• Lexus and the USTR is able to penetrate different regional markets optimally with the use of geographical pricing
• For offshore locations, geographical pricing also allows Lexus and the USTR to cover shipping and customs expenses
• Geographical pricing also allows Lexus and the USTR to maintain consistent revenue growth by altering pricing in different markets based on local currency value

2.2.4. Bundle pricing

• For some product ranges, Lexus and the USTR is also known to use bundle pricing strategy popularly
• Lexus and the USTR also uses bundle pricing during sales
• Bundle pricing increases the trial rate for consumers
• Lexus and the USTR experiences higher return on the cost of gaining a new customer
• With bundle pricing, Lexus and the USTR is also able to control costs and prices by lowering marketing and distribution expenses
• The use of bundle pricing also adds value to the umbrella brand name of Lexus and the USTR.

2.3. Placement

Lexus and the USTR places high importance on the placement of its products because it directly relates to accessibility for consumers.

2.3.1. Company-operated stored

• The company maintains stores operated by the management of Lexus and the USTR in all markets
• Company-operated stores give Lexus and the USTR higher control over operations as well as store layout and design
• Lexus and the USTR also interacts directly with the consumers and gathers important details regarding consumer behavior and consumer feedback through company-operated stores
• The company operated stores also give leverage to Lexus and the USTR in terms of decisions regarding the stocking of different product items

2.3.2. Licensed stores

• Lexus and the USTR licensed stores also allow consumers to enjoy the various product offerings by the company
• Licensed stores also decrease the risk of financial and physical investment for Lexus and the USTR in unstable markets
• Licensed stores have also given Lexus and the USTR high business growth, and a boost for rapid market expansion and penetration
• Through licensed stores, Lexus and the USTR has also learned about local consumers and cultures
• Licensed stores and shops encourage sales of products by Lexus and the USTR by aligning it with local cultural values
• Licensed stores also help Lexus and the USTR in localizing its product offerings to enhance brand equity and band image

2.3.3. E-commerce

• Lexus and the USTR has developed a successfully operational website for online order placement and order tracking
• Lexus and the USTR also encourages sales through social media portals, where the company takes orders through direct messages, as well as through a mini-shop model
• The company also stocks products with online retailers such as Amazon and eBay, as well as smaller local online retailers as well
• Online retailing, and using the internet to make sales has boosted the sales for Lexus and the USTR and has also increased the accessibility of its products for consumers.

2.3.4. Supermarkets and hypermarkets

• Lexus and the USTR also places its products in supermarkets and hypermarkets across the country
• A large number of Lexus and the USTR target groups shop from supermarkets and hypermarkets
• Placement in supermarkets and hypermarkets also improve cost efficiency for Lexus and the USTR

2.3.5. Partner agents

• In offshore locations, Lexus and the USTR also makes use of partner agents for its products’ placement
• These partner agents are assessed and evaluated on strategic compatibility and reliance
• Lexus and the USTR contracts with partner agents in other countries and markets for its product placement to ensure quality control and terms of negotiation

2.4. Promotion

The marketing strategy for Lexus and the USTR also places high importance on the promotional tactics and strategies used. The promotional strategies allow the Lexus and the USTR to interact with the consumers and influence them directly. Lexus and the USTR uses a 360-degree approach in its promotional activities, and makes use of the following means of promotion:

2.4.1. Digital marketing

• Lexus and the USTR has corporate profiles on all social media websites and portals
• Lexus and the USTR uses its social media presence to directly, engage with consumers
• This direct engagement and interaction allows Lexus and the USTR to understand the customers, their needs and demands
• Lexus and the USTR uses this feedback and incorporates it in its broader marketing and organizational strategy
• Lexus and the USTR also maintains a corporate website – which highlights company information, product information as well as information regarding any ongoing campaigns and sales

2.4.2. Reward Programs

• Lexus and the USTR has a loyalty card program for its customers
• The loyalty card allows customers to redeem points in exchange for products or other exciting gifts, as directed by the company
• Each purchase is entered into the loyalty card by Lexus and the USTR and is valued for points against the products’ monetary value
• The loyalty card can be purchased or is given complementary by Lexus and the USTR on high valued purchases
• Frequent usage and purchase of products by Lexus and the USTR also has rewards against the loyalty card

2.4.3. Community Influencers

• Lexus and the USTR makes use of community influencers as its on-ground promotional efforts
• Lexus and the USTR identifies strong and confident individuals to be brand ambassadors in their communities
• Lexus and the USTR provides these brand ambassadors and community influencers with its product range and invites them to use it themselves to see benefits

2.4.4. Conventional marketing

• The company places advertisements in consumer-related magazines. This largely includes home decor, and home management magazines
• Magazine ads are not very frequent, but appear twice every quarter of the fiscal year
• In high-density locations, Lexus and the USTR also makes use of out of house hoardings
• Hoardings increase visibility for Lexus and the USTR and also work towards building stronger brand recall
• Lexus and the USTR also produces TV advertisements
• All TV advertisements have an emotional appeal to them
• TV advertisements by Lexus and the USTR have progressed to include a slice of life elements and characteristics
• TV advertisements by Lexus and the USTR also highlight the functional benefits of the product

2.5. People

The marketing mix of Lexus and the USTR also places an essential focus on people development and people building. This is because Lexus and the USTR realizes the importance of employees in building strong customer relationships. Lexus and the USTR develops its employee and people by focusing on the following aspects:

2.5.1. Training

• Lexus and the USTR makes sure that all employees undergo regular training sessions for skill development and enhancement
• Trainings at Lexus and the USTR are not the only field related, but also focus on essential management and organizational skills
• Training sessions and activities at Lexus and the USTR also identify with the employee's own needs of progression, development and growth
• All training sessions and activities designed and carried out by Lexus and the USTR take into consideration business goals and objectives, as well as employee's personal goals and aspirations
• Lexus and the USTR, therefore, tries to develop the employee as an organizational member, as well as an individual
• All training is engaging, and hands-on so that employees do not only learn but also experience

2.5.2. Organizational ownership

• Lexus and the USTR works on strengthening the organizational commitment in its employees
• Lexus and the USTR builds employee loyalty so that people can reflect their optimal best at work
• Lexus and the USTR also understands that satisfied employees will lead to happy and satisfied customers
• Lexus and the USTR regularly shares different reward programs for employees, including stock sharing, so that their organizational commitment and ownership is enhanced
• Lexus and the USTR also includes employees in decision making at different managerial levels, and regularly takes their feedback for different projects and products – which also work towards building organizational ownership

2.5.3. Motivation building

• Lexus and the USTR employees are the face of the organization
• Lexus and the USTR are motivated through the exciting and creative organizational culture
• Employees are also motivated through different reward programs and bonuses that Lexus and the USTR distributes
• Another source of motivation is appreciation programs where management appreciates and acknowledges the work and performance of different employees

2.5.4. Succession planning

• Lexus and the USTR remains one of the leading players in the industry also because of its focus on succession planning
• Lexus and the USTR conducts succession planning for all managerial levels
• Succession planning is done through internal promotions as well as external recruitments to meet the needs and demands of the vacant job position at Lexus and the USTR
• Strategic succession planning has allowed Lexus and the USTR to be prepared for different challenges, and also be resourceful enough to deflect them

2.6. Process

Lexus and the USTR has organized and systematic processes in place to make sure that the business experiences consistent growth.

2.6.1. Operations

• All operations at Lexus and the USTR are clearly defined and communicated to the employees
• Lexus and the USTR makes sure that employees are well trained, and knowledgeable of all processes relates to operations
• All stages of operational processes focus on maintaining a high quality level and standard of the products
• Systematic process re in place for all operation – from procurement to the final sale of the products
• All operational processes are maintained, checked, and uploaded through the internal portal of the organization for supervisory purposes
• The use of online portals for operational processes also builds a strong backup for managerial purposes at Lexus and the USTR

2.6.2. People Management

• Lexus and the USTR has also defined clear processes for people management through streamlining its human resource management department
• Lexus and the USTR has defined guidelines regarding recruitment, training, compensation management, and performance appraisal of employees
• All people related processes are not only communicated to the management and supervisors, but also to employees to create a sense of transparency, and an environment of trust
• Progressive people management systems and processes have allowed Lexus and the USTR to keep its workforce motivated and happy – which reflects in satisfied customers

2.6.3. Quality maintenance

• Lexus and the USTR also has defined policies and processes for managing and maintaining quality
• All products undergo triple quality checks to ensure that customers receive the best product
• In addition to quality checks at the production and distribution level, the management has also placed separate quality maintenance and quality check department
• The quality maintenance department has experts who make sure that not only the final product but also the processes involved in producing the product were infused with quality

2.6.4. Store management

• Lexus and the USTR manages store management through stringent and closely monitored policies and processes
• These processes relate to not only the floor and space design but also to the performance of the employees at the store
• The processes for store management also regularly monitor footfall and work on strategies to increase footfall through different tactics, and changes in the store design and store management
• The company also has a systematic process for customers who interact with the products and feel them before making the purchase
• The final sale at the store is also clearly defined – for the employees and the customers both
• Processes and policies are important for Lexus and the USTR for maintaining quality of the products, and for ensuring that the company does not experience any unnecessary expenses and costs

2.7. Physical evidence

The physical evidence is also important in the marketing strategy for Lexus and the USTR as it works towards influencing the consumers in favor of the brand and its offerings. The physical evidence for Lexus and the USTR include:

2.7.1. Store atmosphere

• The store design and management for Lexus and the USTR is exciting and creative
• The store atmosphere makes the customers feel relaxed and comfortable –so that they can interact with, and enjoy product offerings by Lexus and the USTR at ease
• The store design is also important for Lexus and the USTR because it controls the level and nature of experience and interaction that the customers have with the product and the brand
• With company-operated stores, it is easier for Lexus and the USTR to control and manage the store atmosphere to be able to positively influence customers and to be able to appeal to them emotionally

2.7.2. Packaging

• Lexus and the USTR has unique packaging, which is different from other players in the industry
• Lexus and the USTR also has a vibrant touché to its packaging, which is regularly changed in terms of colors and patterns
• The logo for the company is simple, and recognizable by the consumers easily
• The brand logo has also become a symbol of confidence, ambition, and aspiration for consumers who use products by Lexus and the USTR
• The packaging of the products is sophisticatedly done and matches the brand image developed and maintained by Lexus and the USTR

2.7.3. Website design

• The website design is simple and easy to use
• Lexus and the USTR has a customer friendly user interface which allows easy navigation and understanding of its various product offerings
• The corporate website of Lexus and the USTR also has the brand logo, and is packaged similarly to the products offered by the company
• The design patterns, and color change on the website with changes to the product packaging to match various campaign needs and sale offerings