Toyota Motor Company Is Bringing Japanese-Based Advertising In-House

Toyota Motor Corporation has recently announced that they will be bringing their marketing and advertising efforts based out of Japan in-house – forming two as yet unnamed entities that will handle domestic (Japan) and global marketing, respectively.  The move is intended to streamline Toyota’s marketing activities, bringing them closer to their consumers and allowing for a more localized message.

In addition, the aim is to carry out marketing activities that also bear in mind ways to contribute to TMC’s product development and sales innovation by promptly and accurately gauging the needs of customers and then providing prompt feedback to TMC.

This move will be yet another blow to the ailing advertising agency world (in Japan, anyway), as Toyota is a perennial top-spender.  Toyota’s assertion that this move will enhance product development and sales innovation brings to light an issue with which other companies undoubtedly struggle.  Specifically, the disconnect that occurs when an outside organization takes control over your messaging and marketing execution.

As a counterpoint, one could argue that it is the responsibility of the dealers, who interact with customers day in and day out, to provide this feedback.  And there is a real risk of losing the perspective that a third party marketing organization brings.

These two entities will begin operations on January 1, 2010.  While the changes really only affect the Japanese market, it will be interesting to see the results of the endeavor, and if successful, who else will follow suit.

Official press release here