Marketing Mix Comparison: Audi vs Tesla

This report compares the marketing mix of Audi and Tesla, two leading automobile companies. It discusses their product offerings, pricing strategies, distribution networks, and promotional activities. The comparison highlights the differences between the two companies in terms of their marketing strategies.

Marketing Essentials

Table of Contents
INTRODUCTION ..........................................................................................................................3
LO1..................................................................................................................................................3
Definitions and marketing concept .............................................................................................3
LO2..................................................................................................................................................6
Marketing mix comparison between two companies from same industry..................................6
LO3................................................................................................................................................11
basic marketing plan of company.............................................................................................11
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................19

INTRODUCTION
Marketing is an activity of the company, undertakes in order to promote selling and
buying of the companies products and services in the market. Marketing can include
advertising o product, delivering, selling and presenting product to attract customers.
This report will cover marketing activities run by the Audi, it is a German auto-
mobile car manufacturing company who are selling Luxury vehicles in all around the world.
This company was founded in year 1909, and they are also an member of the Volkswagen
group and has its root till the Bavaria, Germany etc. This company is an goo market
captured within the UK market where they are continuously selling their product and
services and satisfying people through mixture of luxury and sports car. The technology
used by the Audi is advanced and right now they are working to develop E- car to take
competitive advantages.
This report willExplain the role of marketing within the Audi company and it will
also discuss about interrelationship between marketing and other function of a company.
This report will compare Audi and Tesla on the basis of marketing mix 7ps And it will
analyse what strategies they are using their product, please, price and promotion. In the end
of this report will provide marketing plan of the Audi to achieve their set objective.
LO1
Definitions and marketing concept
Marketing
Marketing is defined as process of organization which undertakes to promote buying and
selling of product as well as service. This process will be used by “Audi” for purpose of
advertisement, selling and delivering the products to customer or business (Suoniemi, Meyer-
Waardenand Straub, 2020). Basically, “Audi” can include marketing as discipline all actions
of enterprise to maintain good relationship with existing customers in global marketplace.
Nature of Marketing
The Nature of marketing is the social process by which individuals or group obtain
what existing consumers need and want through creating or exchanging the product, values
with other. Marketing is primarily include human activity, customer oriented, creation of
utilisation, guiding element of enterprise, goal oriented and exchange process (Peñalba-
Aguirrezabalaga, Sáenzand Ritala, 2020). These are considered the specific nature of
marketing, which is mainly used by “Audi” in order to promote their goods and services in

marketplace. In some situation, it help for “Audi” to enhance the overall business production
and sales.
Development of marketing concept that include current and future trends. How external
environment influence and impact on marketing activities.
Marketing and marketers operate in a dynamic environment or culture. As a result,
marketing concepts are constantly evolving, changing so that strategic planner must include
these when formulating an effective plan. The marketing concept is belief that “Audi” should
analyse existing customer’s need and requirement. In this way, it help to make rational
decision where Audi beaut a competitors and satisfy requirements(Whitler, Morganand Rego,
2020). Audi may adopt this idea to enhance their business performance in marketplace.
By using research and development, Audi can easily identify the specific demand,
needs of customers regarding the automobile products. At that time, it will applicable as
marketing approach in current scenario to use social media platform while attracting towards
products. Nowadays, this is the common approach of marketing which influencing current
trends. In future, it is also applicable as marketing to improve external environment of Audi.
In context of marketing current and future trends, Audi will use social media
platform, application and other distributed channel for purpose of marketing. it help for
identify the wants, needs and interest of target markets, deliver the preferred satisfaction
more efficiently. In this way, it will increase the rate of production and more consumer
attracts towards goods or services. “Audi” will concern about the marketing concept that
extended beyond the promotional message. It relates to the short-term arrangement where
processing transaction between two or more parties. Thus, it has been developed the
connection which made after transaction and customer feels appreciated with
services(Whitler, Morganand Rego, 2020). Afterwards, the good relationship brings come
back for more product in future.
Apart from that number of forces over which it has no control that affect on the
Audi’s marketing activities. External environment is impact on the organization to change the
political activity, economic condition, advancement of technology, social and culture
influences (Naujoks, 2020). At that time, Audi needs to shift in the external marketing
environment which often necessitate change in the business marketing plan(Patrutiu-Baltes,
2016). Audi is affected by external factors but different factors have a strong influence on
particular products.
The role of marketing
Structure and operations of marketing departments

Within marketing department, it can be performed the different roles and function that
support of “Audi” and its product as well as service. The overall structure of marketing
department will be different on the basis of need or requirement (Whitler, Morganand Rego,
2020). Typically, marketing manager can handle the business activities while performing
suitable role and function.
 Marketing manager is responsible person that must create, design and develop
marketing plan. In order to identify the objective, strategies for business in long term
growth and development.
 In Audi, Manager is mainly focused on the promotional activities, product research
and monitor the activities to interest of potential client. Afterwards, it will launch a
new product in market through effective promotional strategies.
 Manager will establish the strong public relation for exchanging the message about
company and its products.

Describe the marketing process such as analysis, strategic planning and marketing mix
The strategic marketing process is a deliberative series of steps that help for
identifying organizational goal and objective. Here are different steps to a successful
marketing process.
Mission: Audi is dedicated to make innovative, providing high quality of automotive
products (Whitler, Morganand Rego, 2020).
Situation analysis: Audi is gained more competitive advantage in marketplace by
commitment to customer needs, focusing on the product such as automotive item that are
considered as core to its mission.
Marketing strategy or planning: Basically, Audi is implementing marketing strategy such as
social media, website and other application. In order to maintain loyalty, trust among existing
customers.
Marketing mix: while Audi offer a wide range of automotive item, value premium pricing
and relies on the specific guidelines in term of distribution.
Implementation and control: Each and every product of Audi always attracts more consumer
who want to show interest in luxuries cars.
Identify the role of marketing in both B2C and B2B
In Audi, Role of business to business (B2B) marketing that focus on logical process
driven purchasing decision.
 Build a personal relationship

 Mainly focused on the strong relationship
 Maintain or control open communication
Business to customer (B2C) marketing focus on the emotional drive purchasing decision.
 Establish the transaction relationship with consumers
 Prioritize the message or text
 Simplifying the business processes
Interrelationship of functional units
Discuss about the different role of business and interrelationship between the functional units,
marketing.
Marketing function is defined or explained as role of business in which help for
identifying the potential successful items for marketplace. There are common function in
business organization that involves marketing research plan, promotion, customer service and
other development process (Whitler, Morganand Rego, 2020). In Audi, Marketing
department function is normally carried out by specialised department and also developing an
effective plan for business development
Operational department: The marketing department will establish the closely related
with the production or operational. It ensure that adequate research, development planned to
satisfy current and future need of existing client. In marketing, manager will set up deadline
that may stretch the capabilities of production functions.
Finance department: The marketing is closely related with finance department to
ensure that all budget to meet the specific needs for research, distribution and promotion.
Marketing manager is work with finance department to identify the overall allocated budget
in sales activities.
Human resource department: marketing is relates to the HRM and ensure that skills,
knowledge and other staffing level. It help for creating the sales team to target existing
consumers. This will help for increasing overall business production in marketplace.
LO2
Marketing mix comparison between two companies from same industry
Marketing Mix of companies refers to the set of tactics and actions , that organization
used for promoting their brand in the market to achieve their set objectives and goals. Tesla
and Audi are two competitors from the Auto mobile company and both are having huge

reputation in the market but there are some differences and in their product, prices, place
and marketing promotion etc (Patrutiu-Baltes, 2016). Marketing mix will helps top find the
differences in both the companies through the elements of marketing.
Marketing mix
Elements Audi Tesla
Product Audi has varieties of the vehicle in
their collection of the luxury to
sports as per the demand by
customers. Top selling models of
this company are Audi A1, Q5 and
Q7. Audi A1 remains popular
within the market. They are
continuously improving their
technology to satisfy their
customers. In late 2009, Audi
posted profits of $1.85 billion. In
2012, the company enjoyed a 10%
increase in sales. Company is
looking to take advantages by the
new trending technology E- cars
because it goo d for the environment
and technology ways attract people.
Product design of Audi are deigned
by the professional team hire by
them
On the other other side Tesla motors is
an one of the most popular technology
based brand who are having verities of
products. They are using the latest
technology in their model to satisfy
their customers. It adheres to a B2B
model which encourages the
partnership with the other companies
by supplying products as well as the
services and also the Business to
company model by offering the luxury
and family based mass market
vehiclesTesla, Inc.’s Marketing Mix
(4Ps) Analysis (2018). The major
products of Tesla manufactured by the
international corporation is electric
sedan powered by the battery. Tesla is
also having autopilot vehicle in their list
and their technology work effectively
((Morgan and et.al., 2019).
Price Audi is using premium pricing
strategy because they are well-
established and recognized brand.
The cost of their new m odel Audi
ai in Uk is around 14000 GBP and
people ready to spend this much
money on their product because of
higher quality and luxury look of
In year 2017 Tesla motor created the
review around 11.76 billion Us $ with
the net income at the 2.24 billion and
total asst of this company was around
28 billion. Tesla is also using premium
pricing strategy because of their high
class technology used in the cars and
premium quality and mostly their

the model. Audi is having good
reputation in the Uk market and
this reflected in the companies
production in cars which was
around 123000 in year 2013.
dealership and the showrooms of
Audi offers repayment plans
allowing a wider varieties of the
people access the brandAudi
Marketing Mix (4Ps) Strategy
(2020).
designs are unique and different from
the other companies. This enables them
to sell product on the higher princess.
Tesla. Tesla initially decade to target
wealthy buyers marketing a
consciousness to capture large market
later on with the lower pricing strategy
and taking competitive advantages in
the market.
Place Audi is having huge market capture
in UK where they are selling
millions of vehicles every year.
Currently they are having 28
dealerships across the 11 states in
India and in 2010 Audi UK
reported an increase in their sales
and it was 81 percent more than
previous year sales The home
country of the Audi is Germany
where they company has
experienced growth in the sales
during the 2019 Audi has global
sales distribution network that
teach to each and every place
worldwide Kanten. and Darma,
2017) The supply chain at Audi is
subject to constant change and is
also highly complex because of the
large number of processing steps
and materials involved. We interact
with more than 16,000 suppliers
Tesla successfully created their
presence in all around the world, and
they are currently known for making
higher quality and latest technology
brand. This company has wider
distribution network of its own which
include Asia, South Korea, North
America and many more developed
countries. China is the largest market of
the Tesla for selling Electric vehicle.
According to the agreement done by the
Tesla with the Chinese government ,
manufacturing plant is open in
Shanghai and it is the collaboration
between Tesla and Chinese
government. They are having 8
international outlets in Canada,
including the cities such as ad Ontario
and Montreal. They are looking for
more expansion and create better supply
change management to reach all around
the world.

from 152 countries.
Promotion There are many sports and
sponsorship venture where Audi
take part to promote their brand
some of them are Italian football
teams and having a permanent
features in Sony's PlayStation
home. This company managed to
keep them selves within the public
eyes without doing anything over.
They also give their ads on the
Magazines and Billboards and
mostly on the TV advertisement.
The companies Tag-line is “
VorsprungdurchTechnik” it
means that the progress thorough
the technology. Audi relies on the
quality of its cars, as well as its
reputation as one of the Big Three,
to ensure that sales and production
figures continue to grow. Currently
their communication tool for
promotion is social media marketing
to attract young and rich
personality.
Tesla is an well-known brand and to
create awareness among people they are
using social platforms as a strategy .
Marketing team of Tesla highly via its
website , frumps and blogs and ense
online platforms for the marketing
Purpose. Tesla is also having their own
you tube channel which is also an
marketing communication and create
awareness among the people. On their
You tube they are having more than
400 K subscribers, and they have
uploaded more than 110 videos. Not
only this put they also promote their
car though the other you tubers (Olson
and et.al., 2018).. Casey Neistat who is
American you tuber and Casey is the
only vlogger with the 12 million
subscribers. Recently, Casey is
promoting the Tesla cars in their
videos. It shows that It is also an
promotional strategy of the Tesla.
People People who are working under the
Audi are professional, and they get
proper training before joining Audi.
Audi ha people working
underspend the sales that play wide
role in the marketing of product ad
service's. Each and every persona in
the marketing team member have
Tesla has appointed highly skilled
Engineers and designers who come up
with the new ideas and development in
product and services. Marketing team
if the Tesla appointed different team for
the social media marketing and
different for the resignal marketing.
This shows that their focus is to spread

different roles and responsibilities
and these roles are provided by
marketing manager of Audi. People
who work under the customers
services of the Audi look for the
issues faced by the and provide
proper solution to solve their issues.
Company provide training to
improve their skills and employees
learn to create relationship with
their customers.
awareness among people and attracting
people. Sales and marketing team also
work to identify the needs and demand
of the customer and some them are
appointed to identify the market
technology trends, so they can take
competitive advantages and show their
presence in the market.
Physical
evidence
Audi is one of the famous ard in all
around the world and Asia and Uk
are two big market for this
company. Not only this but they are
also having wall maintained website
. This is the proof of their physical
presence. There are many movies
where these cars are used and
make famous among the people.
Tesla is well known company s all
around the world because of their
cetology used in the cars. They are
making future car concepts like
autopilot and E- cars. They are having
good market in the Germany, Canada
and their home country US. This is an
proof of their physical presence.
Process Audi use Quatto System, it is used
to run four wheels together and it is
an addition features and options as
well. It depends on the driver if they
want to use this features.
Around 98 percent of the TESLA
model S body is made up of
aluminium. The coils are unwound,
flattened and cut in a blanking machine;
additional cutting is also done using
laser cutter.
LO3
basic marketing plan of company
Executive summery
This marketing plan has been cover study of AUDI and it has been concluded
mission, vision, objectives, situational analysis, budget and in the end monitoring of the
whole marketing (Alqahtani and Gupta, 2017).

Mission
To be the best Auto mobile sales and repair operation in every market they serve”
Vision
“ We are only doing our job properly when we create an experience for the customers
for which they choose to return and Do business with us again”
Objectives
 to increase profit by 10% till the end of year 2020
 to increase satisfaction of consumers by 20% through new and innovative product till
the end of 2020
 to increase brand value of company by 15% till the end of of year 2020
Situational analysis
Audi is luxury auto mobile manufacturers in the world.
SWOT Analysis of Audi
Strength-
The Biggest strength is that Audi is a famous luxury brand with strong distribution network
worldwide. Audi uses high capacity engines and adopted precision engineering technique for
the look and design. Highly skilled employees because investment in training and learning
programs increases company's turnover and profit.
Weakness-
Lack of diversification into low cost cars decreases it overall turnover. Audi adopted slow
promotion technique strategy which affected the sales. Company should invest more in new
technology so that can compete with competitors like BMW etc. Company can't able to
handle new entrants in the industry properly so lost small market share.
Opportunities-
Company is having stable cash flow which gives opportunity to invest in new technologies
and new segments. Change in the purchasing power of consumer can help Audi to increase
revenue by diversifying in new product category (Sanclemente-Téllez, 2017). Government
free trade policies has opened opportunity for Audi to enter in new growing market.
Innovation and diversification in low budget cars can open up new big markets for Audi.
Threats-
Audi only have luxury car segment and not having low budget car segment cut down its
revenue.

Market is limited for the company because of many new entrants. Every country have
different laws and policies sometimes resulting huge loss for the company. Not investing in
RnD and not introducing innovative products results in low market share and revenue.
PESTLE Analysis of Audi
Political Factors-
Audi has remained politically stable since many years but tensions between Brexit and
political relations with other countries has affected company's business in UK resulting low
sales and profits from overseas market. Trade barriers and high taxation policy also have
negative impact on the company.
Economic Factors-
Decline in the global market lead to difficulty for the company for fund raising. Due to lack
of funds, marketing becomes difficult for the company. Economic fluctuations and currency
exchange rate fluctuation also affected the profit of the company.
Social Factors-
Changes in social trends and cultural factors can also affect sales of specific product.
Increasing in demand in fuel efficient vehicle also made Audi to invest in fuel efficient
models. In local market success of brand is directly related to social factors.
Technological Factors-
Investment in innovate technology helps to increase profitability and sales of the company.
Digital technology is another aspect which is helping in the growth of the company.
Company should also invest in RnD for future stability and growth.
Legal Factors-
Legal compliance play a vital role in the auto mobile sector because of the directly
association with environmental issues, safety issues etc (Assimakopoulos and et.al., 2017).
Company recently violate emission regulations and has paid big fine for that and however the
scandal affects complete company adversely.
Environmental Factors-
Auto mobile industry have a direct impact on the environment. That is why company is
investing more on innovation and are working to bring electric and fuel efficient vehicle in
the market.
Marketing mix
Product

Audi will expand their business in the Asian country with the developed product
and technology in their car. Most of the companies are innovating their cars as a future
concept and Audi also has planned to launch their E- Cars within the Asian market, so they
can take anticompetitive advantages. They are improving their technology to provide more
confuter and creating new designs to show their cars more premium.
Price
Price is one of the biggest factor and it is necessary for the Audi to provide quality
product in premium prices. Company will continuously use their Premium prices-ng
strategy because customers are rich people so their price will be high for the E- cars. But
they will provide some discounts to the customers and it will for the limited time.
place
They are looking to expand their business more in the Asian market. They are already
having good market in the Asian country like idea so it will be not so hard for the company
to sell their High-breed cars and E- cars to attract customers (Sanclemente-Téllez, 2017).
Their main target are Rich people, so they will choose the location where rich people live,
so they cab buy their carts and satisfy their needs.
promotion
To promote marketing plan marketing term of the Audi will use social media
marketing. It is an trending tool in marketing right now. They will run their advertisement
and do their brand promotion on the social media platforms like Facebook, You tube and
Instagram. They will also promote their cars by the influencers because they have ability to
influence people and rich people follow them well show their desire to buy Audi.
People
Audi will provide training and development programs in advance level to improve
their skills and make their work more effective. They will mainly focus to provide training to
marketing team because they play important part in the brand promotion and skilful
marketing team will help them to provide comparative advantages.
Physical evidence
Audi will more effectively show their presence by expanding their business in the
Asian countries and the will also improve their website to look for attractive to people by
showing their premium cars images and videos on website.
Process

AUDI AG has one of the most flexible and cost-efficient production systems in the
automotive industry: The Audi Production System (APS) is based on the fundamental
principles of cycle, flow, pull and perfection.
STP plan
Segmentation
According to the segmentation strategy of the Audi, company will target their
audience on the basis of their Demographics and Psychographic. Demographics- Company
will target the audience according to the occupation of the person because their cars are
premium and it is not affordable for the normal people, so they will look for the people who
are business man and having good capital expenditure ( Assimakopoulos and et.al., 2017).
Psychographic- They will also look for the young people who have rich lifestyle. People
who live in the posh colony can have rich lifestyle, so they will promote their product to
this group of people.
Targeting
The target customers of the Audi will e reach people who are rich, and they used to
buy cars which are costly an premium. They are having selecting audience to target
because its not available for everyone and company also does not prefer to sell their product
to normal people. Main target of the company will be business and leaders of the local area
of their showroom. Company will target the audience according to the occupation of the
person because their cars are premium and it is not affordable for the normal people, so
they will look for the people who are business man and having good capital expenditure
( Assimakopoulos and et.al., 2017). Psychographic- They will also look for the young
people who have rich lifestyle. People who live in the posh colony can have rich lifestyle,
so they will promote their product to this group of people.
Positioning
company will position the product with help of digital marketing tools such as
Instagram and Facebook so people will be aware about the product and services . Company
can also position their products by providing discounts , sales etc. to the customers, it will
help in gaining profits by attracting customers. Better positioning in the market will to
aware people about the brand, with the help of effective marketing company can position
their product in minds of customers. In this year they can establish large customers base and
gain competitive advantages in the market where they want to expand their business.

Budget
Budget is a estimated cost of the marketing plan and it is prepared by the marketing
manager of the company. Usually compiled and re-evaluated on a periodic basis. Budgets can
be made for a person, a group of people, a business, a government, or just about anything else
that makes and spends money
To run this campaign Audi will spend estimated 550 pound and 50 pound will be
additional cost of the campaign. Here is the total budget and spending in t for the marketing
campaign of the Audi.
Particular Amount
Marketing 250
Recruitment of employees 50
New technology implication 100
Market research 100
Other 50
Total 550
Monitoring and evaluation
There are many moistening and controlling techniques can be used by the companies
for their measure the process of marketing champaign. Audi marketing manager will use
some controlling and monitoring tools such as 360 feedback and KPI technique.
360 feedback
360 degree is an most popular techniques used to control the process and measure
the process. Marketing manager of the Audi company will take the feedback from the
member of the feedback and measure how marketing campaign is working. Feedback can be
used by them, to improve the process by creating some change in the marketing plan so
company can achieve their objectives and goals of the marketing plan. 360 feedback
include the feedback from peers, employees and other managers who are working under the
marketing project.

KPI (Key performance indicator)
key performance indicator helps to indicate the progress toward an intended result.
Marketing manager of the Audi will use this techniques to measure the performance of the
employees who are working and it will mainly focus on the performance of the marketing
campaign. create an analytical basis for decision-making and help focus attention on what
matters most. As Peter Drucker famously said, “What gets measured gets done.”Managing
with the use of KPIs includes setting targets (the desired level of performance) and tracking
progress against that target.
CONCLUSION
As per the report has been explained the importance of marketing for the growth of
Audi. This report has been identified that audiences is following the new technology trends
in the market to take competitive advantages. Marketing department of the Audi has huge
roles in aware their customers and helping to meed their objectives and business goals. This
report has been explain the marketing function is connected with the all other function of
the company like HR with marketing, Finance with marketing Etc. This report has been
compare Tesla and Audi on the basis of marketing mix and helps to identify that product
place, promotion and other elements are different and but both are using same pricing
strategies. In the end of this report has been concluded marketing plan of Audi. They make
proper marketing campaign with the Smart objective. This has been also coves competitive
analysis and include controlling and monitoring techniques so company can run their
campaign successfully and take competitive advantages in the market where they are
operating their business.

REFERENCES
Books and journals
Patrutiu-Baltes, L., 2016. Inbound Marketing-the most important digital marketing
strategy. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series
V, 9(2), p.61.
Morgan, N.A. and et.al., 2019. Research in marketing strategy. Journal of the Academy of
Marketing Science, 47(1), pp.4-29.
Kanten, I.K. and Darma, G.S., 2017. Consumer Behaviour, Marketing Strategy, Customer
Satisfaction, and Business Performance. JurnalManajemenBisnis, 14(2), pp.143-165.
Olson, E.M. and et.al., 2018. The application of human resource management policies within
the marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management, 69, pp.62-73.
Alqahtani, A.Y. and Gupta, S.M., 2017. Warranty as a marketing strategy for remanufactured
products. Journal of Cleaner Production, 161, pp.1294-1307.
Sanclemente-Téllez, J.C., 2017. Marketing and Corporate Social Responsibility (CSR).
Moving between broadening the concept of marketing and social factors as a
marketing strategy. Spanish journal of marketing-ESIC, 21, pp.4-25.
Assimakopoulos, C. and et.al., 2017. Effective social media marketing strategy: Facebook as
an opportunity for universities. International Journal of Retail & Distribution
Management.\
Online
Audi Marketing Mix (4Ps) Strategy (2020) [online] available though.
<https://www.mbaskool.com/marketing-mix/products/16858-audi.html>
Tesla, Inc.’s Marketing Mix (4Ps) Analysis (2018). [Online] available though.
<http://panmore.com/tesla-motors-inc-marketing-mix-4ps-analysis>