Promotional Mix Activity of Tesla

This report discusses the promotional mix strategies used by Tesla in promoting their products and highlights the impact of the AIDA model and communication model. It covers various tools of the promotional mix such as advertising, public relations, sales promotion, events and experience marketing, personal selling, direct marketing, interactive marketing, word of mouth marketing, and social media marketing.

Marketing Consultant
for TESLA

Table of Contents
INTRODUCTION...........................................................................................................................3
Background of TESLA...........................................................................................................3
TASK-1............................................................................................................................................3
PROMOTIONAL MIX ACTIVITY OF TESLA............................................................................3
Advertising: ...........................................................................................................................4
Public Relations and Publicity:..............................................................................................4
Sales Promotion:.....................................................................................................................4
Events and experience:...........................................................................................................5
Personal Selling:.....................................................................................................................6
Direct Marketing:...................................................................................................................6
Interactive Marketing:............................................................................................................7
Word of mouth marketing:.....................................................................................................7
Social media marketing..........................................................................................................7
TASK- 2...........................................................................................................................................8
Model 1- AIDA......................................................................................................................8
Model 2- Communication Process.......................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is buying and selling of goods and services to the customers to achieve the
organisational goal. Marketing can be done by promoting commodities through both offline and
online mode. It is done on the basis of marketing mix which includes product, price, promotion,
place, physical evidence, people and process. In marketing, promotion plays quite a big role in
selling or buying. It should be done in an effective manner to attract the customers. These
includes all the tactics in which an organizes uses in advertising their product as well as their
brand. Organisation uses different promotional mix tool for promoting their products. In this
report, TESLA is taken as our base company in which it includes all the promotional mix
strategies used by TESLA in promoting their products and also highlights impact of the AIDA
model and communication model applied to the organization in aspects of promotional mix.
Background of TESLA
TESLA is an American electric auto-mobile company founded in 2003 as TESLA Motors by
Elon Musk. The name TESLA is tribute to Nikola TESLA which was an electrical engineer.
They design, manufactures and develop electric cars as well as energy solar products. Products
of TESLA are environment friendly which attract large number of people. Currently they are
world's top selling car brand by producing Model S sedan, Model 3 and Model 3 sedan electric
cars which are all time favourite among people. These cars uses lithium-ion batteries which are
rechargeable. The purpose of TESLA is to promote sustainable transport and energy. They are
the first auto mobile company to use batteries to run vehicles. TESLA also launches their
autopilot vehicles which uses advance technology for running on roads. There global sales
increases in 2020 is 35.8% from previous year with selling of 499,550 units. Recently, they have
launched their company in India which fascinates people of India about their products.
TASK-1
PROMOTIONAL MIX ACTIVITY OF TESLA
Promotional mix is are tools that is used in promoting organisation's products and
services. It is most crucial for an organisation in representing of product and services at right
time to right audience. These tools not only helps in promoting goods but also helps in
representing its company by showcasing their products. It create trust between the organisation

and people. Using promotional mix tools helps in defining of product and services in a detailed
manner (Baker and Hart 2016). In context to TESLA, they uses promotional mix for promoting
for their offerings and communicating to the people. They uses both offline and online platforms
for promotions. Every organisation uses these tools not only in creating promotion but also
creates awareness among them. Creative and innovative advertisement targets the customers
easily. Various tools of promotional mix which helps in communication with people are
mentioned below-
Advertising:
Advertising is a paid promotion of product and services. It creates brand awareness among the
people. It can be done on large scale which can capture masses of people which can be done
through advertisement on televisions, radios and many more (Benzo, Mohsen, and Fourali,
2017). Advertising is a non-personal promotional function as during communication, seller
doesn't have a direct contact with the customers. In reference to TESLA, they never investment
in advertising. Organisation thinks that instead of investing in advertisement, they use their
money in order to manufacture their products using environment friendly and advanced
technology to increase their efficiency and also productivity of the company.
Public Relations and Publicity:
In this communication process, organisation uses public relation to develop attractive brand
image by highlighting unique and interesting stories in the media or by press release to develop
the relationships between organization and public. Publicity is getting response of audience by
press coverage. Organization hire publicist for free and also hire by offering money. In context to
TESLA, they mostly uses public relations to boost their popularity. Its supercharging stations on
highways have TESLA branding all over them and even restaurants, hotels and mall also have
TESLA branding. Recently, they have shut down their PR department because they think that it
doesn't require public relation in order to gain attention of the audience. Free press coverage or
publicity is enough for them for grabbing attention of the people as they are launching products
that are environment friendly and currently in the world's top car list.
Sales Promotion:
Sales promotion is a short time incentives given by the company to its customers in the form of
discounts, coupons, free items, payback offers, loyalty schemes and so on which helps in
increasing brand awareness. This persuade customer to shop from their organisation. This tool

allows organization to focus on increased short term profitability by attracting both new and
existing customers. These promotion method is widely used in times of festivals, weekends, on
new launching of products and to selling out existing products. It helps in gaining quick attention
to the product and its organisation in both new and existing market. And also allows creating
market for new product and gaining trust of sellers. In context to TESLA, they launches Referral
Program which enables customers to get awards each time when they the referral link is used by
friends or family. TESLA offers referral programs on both of their products. Referral link used
by both customers and mates can win 1,000 miles of free supercharging with purchase of new
TESLA car. It also gives a chance to win another car from TESLA. Both solar panels and roof
have referral link which when used, one can earn $100 awards (Brown and McGowan, 2018).
Events and experience:
Events and experience marketing is a strategy used by the company to promote their
products through live events and experiences. Under this marketing strategy, company uses
strategies like real time engagement or live promotion events to promote their brand or products.
This marketing strategy involves holding various online or offline events where CEO can be the
host of that event, whereas experience marketing is bonding consumer and product by plunging
them in a unforgettable experiences. In context to TESLA, company holds various memorable
events for their customer with the launch of their new products with CEO as host of their event.
For example recently with launch of TESLA Cybertruck a great event was hosted by the
company.

TESLA Cybertruck is an electric pickup truck which has stainless steel exterior with a
triangular roof. This event was happened in Los Angeles, USA.
Personal Selling:
Personal selling is an old traditional method of promotion or selling of goods and services that
enable customers to directly interact with the seller. It is a process of persuading customers to
purchase goods and services by providing information through presentations or face to face
interactions and telephonically. Customer attention is highest in this tool and message can be
easily be conveyed to the customers. In context to TESLA, they take feedbacks from the
customers about their products and also take this feedback into their hand to make their company
and product to work more efficiently (Chorafas, 2016).
Direct Marketing:
Direct marketing is a form of advertising which allows organisation to communicate directly
with customers through the medium of emails, phone text messaging, phone calls, catalogues,
fliers, outdoor advertising and many more. This tools allows to caters large number of people
quickly. Targeting of customer is easier as it allows sending of messages into target groups
according to their age, income, locations and many other categories where organisation can also
create personalized messages using their data. TESLA sells directly to the customers. They have

created an international network of company owned showrooms and galleries through which it
creates better customer buying experience. Customers directly deals with TESLA sales and
service staff. Also they uses direct marketing for selling of batteries and power train components
to other businesses.
Interactive Marketing:
Interactive marketing is a two way communication process where consumers and organisation
can direct communicate to each other. It is also known as triggered- based or event-driven
marketing which has been used in digital advertising by conducting quizzes, contest and
giveaways, polls and surveys and many more. In context to TESLA, they have customer forum
and owner club which allows them to build loyalty and passion for the brand. They have
organise many quizzes, contest, surveys for people to know about their audience and their taste
and preferences.
Word of mouth marketing:
Word of mouth marketing is a process where consumer himself talk about the company's product
and services, it is when consumers interest company product and services can be seen in their
communications. Word of mouth marketing is a result of having great experience from company
by using their product and services and then telling everyone about it. This can be encouraged
through various publicly activities organised by the company. In context to TESLA, company
mainly focuses on word of mouth advertising and referrals, TESLA market its products to the
customer by not directly doing it, usually in case of TESLA its potential customer do the selling
for them. For example, viral sale of TESLA S3 model can be an perfect example of word of
mouth marketing.
Social media marketing:
Social media marketing is process of increasing product awareness and brand value among
customer using various social media platforms and websites (Denton Jr, Trent and Friedenberg,
2019). It is use of various social platforms by the company to connect with the customer and
increasing sales as well as building the brand image. The major social media platforms used
nowadays are Facebook, Instagram, twitter, LinkedIn and so on, this type of marketing helps all
kind of business to reach potential customer in a wide range just by creating and sharing relevant
content about business on the internet. In context to TESLA, company uses all social media
platform in order to directly interact with their customers and creating product awareness. For

example company's CEO Elon musk personally uses social media platform to interact with the
their customers.
TASK- 2
Model 1- AIDA
The AIDA model stands for attention, interest, desire, and action. Model describes the various
stages a customer goes through while buying a product. AIDA model was introduced by Elmo
lewis, in 1898. The AIDA model is one of the most used model in 19th century, mainly used in
sales strategies and accelerating public relations (Doyle, 2016). Companies mainly uses this
model in order to increase their sales and profitability in the marketplace. In context to TESLA,
which is an American electric auto mobile company, founded in 2003 by Elon Musk. TESLA is
also an clean energy company based in Palo alto, California, company deals in products and
services like electric cars, battery energy storage and solar panels and so on, the AIDA model is
highlighted below:

Attention: First step of AIDA model is attention which involves attracting more and
more customers by creating awareness among buyers about the product or services, hereby
company tries to get attention of their potential buyers. This stage deals with cognitive theory
where thoughts process of buyers is being effected. In context to TESLA, it uses various
promotional strategies like billboards, magazines where history of company is highlighted, also
various social platforms like Facebook, Instagram is used to attract the attention of customers
and making them aware of their products.
Interest: Next step is interest, once the buyer is aware of the products existence, company
should tries to increasing their interest, creating interest for the product among the buyers is one
of the major task for the company (Hill and et. Al, 2017). This step mainly involves increasing
interest level of their customers for their products. In respect to TESLA, it uses unique ways to
generate the interest of consumer for example, TESLA model S3 catered huge interest of
customers because of its presentation in the market.
Desire: after interest is generated among the consumers for product and services then
comes the desire for the product. Under this step the main aim of the company is to make
consumer desire for the product. In context to TESLA, company's unique way of presenting
products creates a huge desire among the potential customer.
Action: the last step of AIDA model is action, ultimate goal of any business is selling
their product. Under this step buyer takes corrective action of buying or not buying the particular

product, this steps revolves around the behaviour of consumer in selecting product. In respect to
TESLA, customer wanted to buy model S3 because of its huge awareness created among the
audience (Lee, 2019).
Evaluation of effectiveness
TESLA mainly focuses on word of mouth advertising and referrals, company doesn't use tv
advertisement or forcing their products on customer. It can be seen that the effectiveness of
company's sale is increasing effectively, company main focus is marketing its buyer without
directly doing that. The AIDA model effectively explain how by using various strategies, sales of
products and services is increasing, from the below diagram it is clearly seen that how global
sales of TESLA is increasing continuously increasing from 2013 to 2012, there is increasing rate
in TESLA global sales of product and services.
From the AIDA model, it has been analysed that it is a step by step model where prospect willing
to become customer is a process where an organization promotes their products in order to grab
attention of the prospect and tries to generate interest about the product. Customer willing to buy
on different platforms varies. The organization has to develop different touchpoints on different
platforms. In context to TESLA, they uses social media, free publicity to grab attention of the
audience. As their products are made up of environment friendly materials and implementing
advanced technology, they have developed an interest in people's mind about their uniqueness.
Desire and action is depends on the people who is willing to buy and become prospect to their
customers.

Model 2- Communication Process
Communication process refers to the actions that includes in establishment of
communication between sender and the receiver. Proper flow of communication is important as
it avoids conflicts in the organisation (Ottley, 2016). This process includes sending, receiving,
encoding and decoding of message. In context to TESLA, they have maintaining communication
with customers in an effective manner and the different steps of communication process are
mentioned below-
 Sender: Sender is the person, organisation or group who initiate the communication. In
reference to TESLA, they initiate in communicating the message to their customers,
dealers, shareholders or stakeholder. They use different channels for conveying their
messages mainly through their website, social media or by emails.
 Message: Message is the information which is to be conveyed by the sender. TESLA
sends information regarding new launch of the product, changes in the existing product or
any event organising by them. And for shareholders, message can be of meetings
occurring.
 Encoding: It is a process where message is turned from one form to another. The
information is converted into message in the form of pictures, gestures, emoticons and
many more. TESLA sends message about events in this manner only. They use hashtag
on social media for representing their messages.
 Media: In communication process, media is channel in which information of message is
send from sender to receiver. In reference to TESLA, they uses channels such as emails,
social media, texting and many more for conveying of message.
 Decoding: Decoding is done by the receiver where the receiver interprets the conveyed
message. The message conveyed by TESLA is interpreted by customers, dealers,
stakeholders etc. through their own senses and wits (Petty, 2016).
 Receiver: It is the destination where the message is send by the sender. The encoded
message is decode by the receiver in order to understand the message. Receiver uses their
own senses in understanding of the information conveyed by the sender. In reference to
TESLA, the message from the company is decoded by the audience and these
information can be about new launching of products, organising of events or trade shows
and so on.

 Feedback: Feedback is the key component and final step of communication process. It
allows receiver to response or react to the sender's message. Feedback can be both verbal
and non-verbal. Feedback enable sender to evaluate the effectiveness of the message and
tries to increase their creativity in encoding of the information. In context to TESLA,
customers can give feedbacks by posting and tagging them on social media, in comments
or on official website. Also they can give feedbacks directly on the stores of TESLA.
From communication model, it has been analysed that TESLA follows a clear communication
process by sending the information to the people and then it undergone different steps in which
message is encoded and decode for the audience and finally to the feedback stage where
audience can share their views (Wilson, 2016).
CONCLUSION
From the above report, it can be concluded that marketing plays an important role in promoting
product awareness. It also helps in movement of goods and services from manufacturer to
consumers with an aim increasing profitability of the firm. In the above report, various principles
and practices of marketing is explained in detail. Promotional mix strategies like advertising,
public relations and publicity, sales promotions, event and experiences, personal selling, direct
marketing and so on are highlighted. These strategies helps in promotion of products and
services and also in increasing of sales. In addition to this, it also includes marketing theories like
AIDA model which is widely used in advertisement which helps in managing of prospect and
customers in order to understand the making buying behaviour and decision. Also,
communication model helps understanding the process of communicating message to the
audience and their work of their feedback in order to increase the effectiveness on the
information in context to TESLA in increasing the profitability and productivity in an effective
and efficient manner.

REFERENCES
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