Promotional Activities and Marketing Techniques of Tesla

This report explores the promotional activities and marketing techniques used by Tesla to achieve success. It discusses customer touchpoints, external spaces, digital platforms, and third-party promotions. It also provides an overview of Tesla's current operations and tactical plans. Additionally, it examines the marketing theories applied by Tesla and the outcomes of their social media KPIs.

Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
Promotional activities in context with organisation....................................................................4
Current promotional techniques used by Tesla...........................................................................6
Promotional techniques ..............................................................................................................7
Brief overview of company's current operations........................................................................8
Targeting UK residents...............................................................................................................8
Tactical plans made by Tesla......................................................................................................8
Effective marketing solutions of Tesla through which they achieved success ..........................9
TASK 2..........................................................................................................................................10
Marketing theories in context with Tesla..................................................................................10
Social media KPI outcomes .....................................................................................................12
Performance reports..................................................................................................................12
Financial representation of Tesla earnings................................................................................13
CONCLUSION..............................................................................................................................14

INTRODUCTION
Marketing is defined as activities which is used to promote products so that customer can
get attract towards it. It includes various activities like advertising, selling as well as delivering
goods to customers and even other businesses. It is the process of getting customers to show
interest in their specific products. There are 4Ps of marketing and these are product, price, place
and promotion. While doing marketing of any kind of product, One need to develop a effective
marketing plan, using digital media, doing marketing with mobiles or even e-mails and many
more(Keegan and Rowley, 2017). The below report includes a portfolio which involve website
screenshots, summaries, pictures and certain promotional campaigns. It also include promotional
techniques for effective marketing solutions. The below report is based on Tesla. It is an
American electric vehicle and also an clean energy company in California. The products which
are involved in Tesla are electric cars, solar panels, solar roof tiles as well as battery energy
storage. The company was founded by Elon Musk, JB straubel, Martin Eberhard, Marc
Tarpening and Ian Wright. The company was founded on 1st July, 2003.
TASK 1
Promotional activities in context with organisation
There are many promotional activities which are been involved and is used by company
that is customer facing touchpoints which involve offices, stores, external spaces that include
advertising billboards, promotion through digital platforms which is done with the help of social
media and through third parties also like news articles and reports. In context with Tesla, they
also used different promotional activities and it is been explained as below:-
 Customer facing touchpoints:- It refers to the point where customers contact with
specific brand whether they find about the business through online or in an
advertisement, see reviews of other customers about the brand, visit websites and also
contact customer service department. Touchpoints refers to interaction between both
businesses as well as customers during whole customer journey. It leads to influence
between both customer experience and perceptions regarding specific brand. There are
various examples of customer touchpoints like customer loyalty programs, billing
actions, point of sale, stores, reception areas and many more. In accordance with Tesla,

they were not only at good position in selling cars by also in effective general experience.
The brand has 90% of satisfaction rating as they were getting high quality experiences.
 External spaces:- It involve promotion been done with the help of advertising billboards.
It is considered as an effective promotional activity because it helps in building brand
awareness to as many audiences as possible. Through billboards more customers can get
attracted as compared to other marketing methods. It is an external way of advertising
structure which is mainly been done in high traffic areas. The companies also apply this
kind of promotional activity because competition is always at rise especially in the case
of electric car companies(Shareef and et.al, 2019). In context with Tesla, they are also
facing competition as everyone wants to attract customers so they spend much amount on
billboard advertising. It was analysed that Tesla advertising budget was $0 and through
this also, it became the most trendy car company among all other competitors. Its
competitors spent billions on using external spaces as promotional activity but they also
started using this technique.

 Digital platforms:- It is a promotional activity which forms a commercial network or
business to customer and even customer to customer transactions. It includes platforms
like social media, websites and many more. It leads brand to maintain contact with
customers and achieve advertising goals(Shchepakin and et.al, 2018). To promote digital
marketing it involve pay per click advertising, social media marketing, video marketing
and many more. In context with Tesla, they also applied this technique of doing
promotion. It was analysed that around 95% of audiences want to buy car and use digital
channels to look for reviews and ratings. So, they also advertised their products on social
media platforms. They used website like Twitter to allow customers to contact with them
freely and can even communicate directly with CEO. They designed their Model S using
interactive displays as well as design studios.
 Through third parties:- It refers to the promotional activity in which a publisher or a
website operator presents content and also includes advertising which is delivered by

another person. It is a good method to target customers. Businesses use news article
strategy to reach large number of people on constant basis. With the help of promotion
been done through third parties it enhance leadership and also reaches to good position in
comparison to competitors. In accordance with Tesla, they also used print media
technique like magazine ads because it was more efficient than other advertising ways.
Current promotional techniques used by Tesla
The company marketing strategy is mainly focused towards word of mouth advertising as
well as referrals. Through this aspect, the customers turn themselves into marketers. Tesla also
had a referral program to encourage their customers to do advertising about their cars. The
promotion was done in such a way that by referring a friend and then they purchase the car then

referral will get a photo been launched into deep space orbit. If there are three referrals, then
customer will get new wheels for their vehicle and so on(Bassano and et.al, 2019).
Promotional techniques
There are various type of promotional techniques like social media, advertising, special
pricing and many more. The techniques are been explained as below:- Social media influence:- It is one of the most effective strategy and techniques which
companies can use to promote their products because in today's world everyone is active
on social media. In context with Tesla, they used technique of social media to promote
their product. It became beneficial for them as they achieved success because they used
the help of referrals and pictures on social media and as they were dealing in electric
vehicles which is an attractive way of engaging with youth. Advertising:- Tesla advertised their model within their budget effectively as they used the
technique of print media as well as television ads because they were able to attract more
audiences and at the same time people who were not knowing must about their brand
they were also getting familiar with company. Advertising is one of the best source for
promoting a product so it was beneficial for them also(He and Harris, 2020). Sales promotion:- This promotional technique is considered as a marketing strategy
when product is promoted with the use of short term attractive initiatives in order to
increase their sales. Tesla also used the technique of sales promotion. They used this
strategy because they were getting effective support from government and due to this
they were able to attract their customers in a better way and was enhancing their sales. Word of mouth:- It means a process of passing information from person to person. Tesla
used this kind of promotional technique because those customers who were more active
on social media were getting continuous information about innovative products company
was offering so those people who was able to afford their cars were getting information
which was considered an effective marketing strategy for them.
 Publicity:- It is also an effective promotional technique because getting information with
the help of media is considered good as people believe more what is been advertised on
media. So, Tesla also applied the technique of publicity where they promoted their
product on media and did publicity which was a success for them(Dash, Kiefer and Paul,
2021).

Brief overview of company's current operations
Tesla motors has introduced new effective business models which gave competitive
advantage as compared to competitors. The aim of company is to become a mass producer of all
electric vehicles. The company provides charging of electric vehicles free of cost at its
supercharging stations. In terms of company current operations they build not only electric
vehicles but also clean energy generation as well as storage products.
Tesla designed first ever electric sedan which was Model S and became world best car in
each category. To create entire sustainable energy ecosystem the company also manufactures
Power wall, Power pack and Solar roof to manage renewable energy generation, storage as well
as consumption. The company has also started making cars in California despite there is being a
battle with local officials(Kingsnorth, 2019). The current marketing strategy of company is to
enter high end of the market where audiences are ready to pay premium and then drive out
market to higher unit as well as low prices with every successive model.
Targeting UK residents
Targeting refers to an advertising method which allows to segment some visitors who
fulfils the criteria been set of company among whole audience. It also help in increasing
effectivity of whole marketing campaign. The target audience of company are those consumers
who have high household income and can easily afford the high priced electric car. The new
model which company produced that is Model 3 has achieved a grate success in whole UK as
customers were excited towards new electric super car. In UK, there were around 90000 models
of all electric cars been produced.
Tactical plans made by Tesla
The main strategy and mission of company is to intensify the world to sustainable energy.
Their product differentiation is in the form of customizable cars, solar panels and self driving
features. Their main plan was to increase investment in both research and development in order
to manufacture new products to satisfy demand for enhanced renewable energy solutions like
batteries. They also offered customizable auto mobiles through their effective production
techniques(Sterne, 2017).

Effective marketing solutions of Tesla through which they achieved success
As per the view point of Arkin Khemchandni there are various type of marketing
strategies that company used due to which they were able to achieve success and built better
reputation than its competitors. The effective marketing solutions are been explained as below:- Best customer experience:- The main reason behind achieving success was providing
best customer experience. They provide all their vehicle information on their specific
websites which was very convenient for them. The entire buying process for customers
was considered time efficient. Strong referral program:- It is been observed that people usually trust those things
which they heard from their family or friends. So, they considered word of mouth
advertising the most effective way. Tesla had a referral program which motivated their
consumers to share their experience(Marasco and et.al, 2018). Don't rely on paid advertising:- Tesla didn't focused much on creating advertisements so
they spent $0 on advertisements. They always did things which was completely different
from their competitors.
 Strong vision and mission:- A company must have a strong vision and mission statement
to perform with efficiency and attract customers. Customers has always appreciated that
Tesla don't just focus on selling cars but also to do other things and became a top
company.
TASK 2
Marketing theories in context with Tesla
The two theories which are been applied to company are push and pull strategies as well
as above or below the line It is been explained as below:-
Push and Pull strategies
Push strategy means to push a product towards customer while pull strategy refers to
pulling customers towards product. Push strategy is considered a effective way to move
customers from getting information about the brand to their purchase decision. Facebook is an
example of following push strategy as through this people get to know about their audiences. It
allows consumers to target specific audiences in terms of age, location, interests and many more.

While in context with pull strategy search engine optimisation is the example as customers who
will be interested will look for brand so proper description is needed.
IN CONTEXT WITH TESLA
Tesla follows both push and pull strategy. In terms of push strategy they do personal
selling at their showrooms while in pull strategy they used the method of advertising. With the
help of media they make customers aware about brand and initiates interest in the minds of
consumers for owing electronic vehicle(Chaffey and Ellis-Chadwick, 2019). Tesla also used the
strategy of customer engagement as “ build your own vehicle process”. It focused more on needs
of consumers rather than doing personal selling. They also used the strategy of word of mouth
marketing which was an effective push strategy for them as people got to know about their
brand.
Above or below the line
Above the line refers to marketing strategy where advertising is used to reach large
number of audiences like with the help of television advertisements, billboard advertising and so
on. In below the line, the advertising is to target only specific group of people among all other
customers. In above the line marketing, customers are not targeted as well as large campaigns
are organised to reach large number of people while in below the line marketing small groups are
targeted and it becomes easy to track return on investment(Payne, Peltier and Barger, 2017).
IN CONTEXT WITH TESLA

In terms of Tesla promoted their products through Google Ad words. They used the
method of pay per click advertising where they targeted those customers were interested to look
for electric vehicles. They set advertising budget in terms of how many customers were visiting
their websites and showing interest. They had targeted specific group of people whose income
was high enough that they can afford their expensive cars so in almost all cases they were using
below the line marketing strategy(Tronvoll, Barile and Caputo, 2018).
Social media KPI outcomes
It defines values which are used by marketing and social media teams in order to analyse
performance of all social media campaigns. It is very important for company to measure social
media metrics as well as track results every month. The key performance indicators of Tesla are
been explained as below:-
Tesla had always offered efficient drive train in their vehicles as well as designed their
vehicles in such a way that it allows large battery capacities which was also effective in cost
advantage. There are various key performance indicators which is important in battery day like
share of cells in a battery pack, charging rates of the battery, durability of batteries and
sustainability of those batteries(Moravcikova and et.al, 2017).

It was analysed that there was $24.1 million increase due to inclusion of Solar city revenue from
the date of Nov21 which was a good increase through higher energy storage revenue as company
inclined up their energy storage production and sales. Their vehicle production also got increased
to 64% throughout the year in context with Model X.
Performance reports
 From the view point of Lora Kolodny, Tesla reported its first full year of GAAP profits in
context with its second quarter results. During the period of June 30,2020 the electric car
company revenue reached $6.04 billion during the quarter with around $428 million.
According to the estimates, their earnings were $2.18 versus 3 cents per share which was
an expected amount. In terms of earned revenue it was $6.04 billion versus $5.37 billion
an expected amount. In context with net income it was $104 million(McDaniel Jr and
Gates, 2018).
 The company also reported its first full year of profitability on GAAP basis which is now
considered for inclusion on S&P 500 index.
 Elon musk declared that Tesla will build its next factory in Texas which was possible
only due to its current performance been done efficiently.
 It was also analysed that company automotive revenue got reduced by 4% which was
from $5.38 billion to $5.18 billion and it is still adding a new crossover SUV to its line up
that is Model Y.
 In context with second quarter of 2020, the company reported a triple rise in revenue
from $111.2 million to $428 million.
 Now, Tesla expects that in comparison to year 2019, their credit revenue will increase to
double amount.
 To perform better than the company was performing in past their main mission was to
achieve long term profitability through reducing costs of production and then earning
more from software(De Pelsmacker, Van Tilburg and Holthof, 2018).
Financial representation of Tesla earnings

CONCLUSION
From the above report it is been concluded that while doing marketing promotion is the
main factor which is important for businesses. To attract customers towards the specific brand it
is necessary that different promotional techniques should be used which would be effective for
their businesses. There are many promotional techniques like word of mouth advertising,
television advertisements, social media marketing and in today's world the best promotional

strategy which is been considered is social media marketing because almost every individual is
active on social media . There are certain marketing strategies like push and pull strategies,
above the line or below the line and many more. In terms of above the line there are no targeted
customers but in terms of below the line among large number of audiences a specific group is
selected which is considered more beneficial for companies because they have set a proper
mission to whom they have to select.

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