Marketing Channels: Tesla Motors

Running Head: MARKETING CHANNELS 1
Marketing Channels: Tesla Motors

MARKETING CHANNELS 2
Nature of Tesla’s Product Category
Considering the features of Tesla’ products, it can be stated that company is offering premium
products to the potential customers. Tesla’s Model 3 is about to become the best-selling mid-
sized premium sedan in the United States. It offers featuring green, high-technology gadgets and
premium life style products which all the customers of Tesla want to have. The company is
developing the luxury sedan which is fully electric and named as Model 3 (Tesla, 2018). The
products of the company are manufactured with a budget in the mind to enhance operations in
potential target market. The major features of Tesla’s products are their efficiency, clean energy
source, performance, range, safety and acceleration. The organization offers its new car models
on premium prices so that it can encourage the positive perceptions among Tesla lovers on the
basis price only. For instance, it has released Model 3 as its first mass market car with the initial
prices of USD35000 (Nykvist and Nilsson, 2015).
New approach (Current Market Segmentation)
For Tesla Model 3, the organization targets its market considering different characteristics and
behaviors of customers (Hill, Jones and Schilling, 2014). The new market segmentation for
Model 3 is stated below:
Geographic
Under geographic segmentation, the organization focuses on the people who are living in the
major cities of United States of America like San Francisco, Chicago, Los Angeles, Boston, New
York City etc. The company targets the mass population in the country. After successful
establishment in US, the company should expand its operations in international markets.
Demographic
Tesla offers its Model 3 Cars considering different demographic characteristics like age, gender
and income (Radius, 2017). It targets millennial customers who belong to moderate to high
income class. Other targeted audiences are well-educated individuals, males, baby boomers etc.
Psychographic
In the country, 80.7 million people are from the upper and middle class so company targets this
customer segment. In addition to this, Tesla targets both techies and environmentalists in
America as 29% of Americans are techies and around 40% of the people are environmentalists.