Microenvironmental factors are “The factors close to the company that affect its ability to serve its customers” [principles of marketing]. The microenvironmental factors that affected the introduction and sale of the Toyota Prius were it customers, competitors and publics.
Customers are anyone who buys or rents from the company. Customer are the most important microenvironmental factor that affect company as they survive on meeting the wants and needs of the customer and failure to do so will result in the company failing. Toyota study their customers and saw that they wanted a car with better fuel consumption and as a result Toyota decided to make the Prius, their first hybrid car.
Toyota dealt with their customers by setting up
People have less money and now have to spend more carefully. The recent high petrol prices are causing a rising demand for greener, more fuel efficient cars that are cheaper to run. Several governments are providing incentives to people to buy these hybrid cars. In the UK, the government is offering reduced car tax on initial purchase. Electric car drivers can also avoid the £8 per day Congestion Charge in London.
Toyota must be aware of and keep up with the technological environment which includes the forces that create new technologies, creating new product and market opportunities. This is the most rapidly changing environment. By introducing the Toyota Prius, the company has gained a technological initiative in the hybrid market. Toyota knew that their target market for this product would include technology enthusiasts, or ‘techies’ as they are known, and included reference to the cars leading technology in their advertisements.
Natural forces also affected Toyotas decision to manufacture a hybrid car. Consumers are becoming more concerned about the environment and about how the products they purchase have an effect on it. Petrol and diesel are both non-renewable fossil fuels which release carbon emissions that contribute to global warming. Therefore there is a demand in the market for alternatives to petrol-powered vehicles, such as electric cars. Hybrid cars like the Toyota Prius