Marketing Essentials - TESLA

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and responsibilities of marketing function..................................................................1
P2. Interrelations of marketing with other organisational units...................................................5
TASK 2............................................................................................................................................6
P3. Comparison of various ways by which marketing mix is applied to the chosen organisation
......................................................................................................................................................6
TASK 3............................................................................................................................................9
P4. Marketing plan.......................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is characterised to important tool which comprises understanding of
marketplaces addition to customers demands, formulating strategies and building profitable
relations (Baack, Harris and Baack, 2013). Marketing essentials is among those concepts that
helps managers of business to deal with activities related to manufacturing and distributing
goods or services. Business entities advertise addition to promoting their products by using
distinct marketing channels in order to attract large customer scale as to satisfy market needs and
attaining organisational objectives. To understand the marketing essential concept, TESLA is
selected which is a automotive company situated at California, United States. The report
discusses about marketing roles and interrelation with other functional units. It also compare
ways in which marketing mix elements are used to achieve business objectives. Furthermore, it
involves a basic marketing plan for the respective business.
TASK 1
P1. Roles and responsibilities of marketing function.
Definitions and marketing concepts:
Market: It is a specific location where people gathers in order to purchase together with
selling provisions or other commodities. At such location, parties meet to perform exchange
activities for information, products, currencies or other combinations.
Marketing: It involves activities or actions that are undertaken by a person or
organisation in order to promote as well as sell goods in the competitive market. Marketing
encompasses advertising, selling together with delivering demanded products to potential clients
or other businesses (Baines, Fill and Page, 2013) . Marketing is consumer oriented, legal process,
interacting business activity, economic function, social process and managerial function that are
some of nature of marketing.
Marketing concept is based on incorporated market, target market, profitability and
requirements of customers. It emphasises on finding accurate products for customers rather then
finding appropriate customer for specific product. The concept is considered as belief that helps
firms to analyse customers’ needs together with framing rational decisions so to beat the
competition and attaining success in increasing customer satisfaction. The managers of TESLA
have adopted the marketing concept. It is classified in further following concepts:
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Production Concept: Under such concept, customers prefer those products that have
quality along with cheap prices. TESLA managers concentrates on mass distribution, high
production efficiency together with low costs so to produce good quality products and making
products available to increase supply.
Product concept: According to product concept, it is believed that market audiences
favours those products that have innovative feature, performance as well as high quality.
Production managers of TESLA considers the concept and manufacture such products that are
easily accessible as well as adds value on them by making improvements overtime.
Marketing concept: The concept focuses on goal achievement rather than enhancing sales
volume. If the marketers of the company are not able to understand consumer needs, market
audience will not purchase organisational products despite of their high quality.
Selling concept: As per selling concept, organisation have to integrate selling together
with promotional efforts so to sustain in competition. Marketers of TESLA constitutes effective
promotional tools to boost wide sales (Blythe, 2012).
Societal marketing concept: According to this concept, an entity should first determine
needs, interests addition to preferences of target market and later deliver satisfactions as per the
preferences. The marketers of selected business implements strategy in such manner that delivers
appropriate customer values that improves whole society well-being together with maintaining
the wellbeing in ethical manner.
Current trends in marketing:
In present time, numerous trends are prevailed in the market. Current trends in UK
market are relationship marketing, interactive video context, social media marketing and
increased personalised recommendations. With the help of such trends, marketers of TESLA
advertise organisational products so to inform customers about the products and engaging
customers that benefits in enhancing profit margins.
Future trends in marketing:
As the market is attaining growth and development, the upcoming trends includes Beacon
technology, content marketing, chatbots, artificial intelligence and industrial marketing. By
implementing Beacon Technology and industrial marketing, TESLA marketers will be able to
forecast future needs of customers and accordingly can frame strategies to appropriately
targeting customers and earning high revenues.
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Role of marketing:
Structure of marketing department: Marketing department structure refers to the way
group of people in marketing department arranges activities and interacts with other employees.
The marketing head of TESLA has adopted functional marketing structure where workforce is
organised into divisions as per the functionalities. The functional structure of TESLA is as
follows:
Illustration 1: Functional marketing structure. 2019
(Source: Functional marketing structure. 2019)
Operations of marketing department: Marketing department of TESLA performs
operations such as demand generation, performance measurement, creating content together with
management. Other then these, some other operations are campaign management, strategic
planning, data management and calculation ROI.
Overview of market processes: The marketers department of TESLA discovers
customer needs together with satisfying them through following certain marketing processes
(Campbell, Martin and Fabos, 2018). The procedures are as follows:
Analysis: At this stage, marketers of TESLA carefully identifies unexploited customer
preferences by analysing distinct situations. They conduct effective analysis of situations that
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helps in identifying opportunities to grow further. Situations are analysed using PESTLE
analysis, 5C analysis along with SWOT analysis.
Strategic planning: Herein, strategic plans are formulated after carrying out proper market
research. Strategic plans helps in pursuing to grab opportunities. It involves segmentation, target
market selection and positioning the products.
Marketing mix: Tactical decisions are made at this phase in order to control parameters.
Marketing mix decisions are frame for product development, setting prices, making distribution
contracts and promotional campaigns development.
Implementation and Control: Herein, all the planned actions are put in to actions and
performances are monitored to control deviations.
Different roles of marketing:
Some of the roles and responsibilities of marketing in B2C (Business to Customer)
context:
Market research: It is one of the major role addition to responsibility of marketing.
Market research at TESLA is conducted so to gain understanding of needs or preferences of
customers. Research helps in gaining particular knowledge about the perceptions of consumers
towards organisational products and prices do that further improvements can be made to satisfy
customers (Clow and James, 2013).
Selling strategies: Marketing plays another role of setting selling strategies. Selling
strategies involves mixture of inputs to sell particular product and catering it to wide customers.
Selling strategies at TESLA are set to persuade customers to make a purchase decision. The
selling strategy role of marketing results in more interactions of business with customers so that
excellent customer services are provided by organisation to customers.
In B2B (Business to Business) context, roles along with responsibilities of marketing are
as elaborated:
Conducting business campaigns: One of the effective responsibility and role of marketing
is to conduct business campaigns together with coordinating activities with another business.
Various business campaigns are conducted by TESLA with other business in same industry so to
coordinate efforts and evaluating effectiveness in order to spread information about
confectionery products and building brand image.
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Standardisation: Marketing performs responsibility and role to build and execute
standards by considering principle and practices followed in any industry. TESLA sets standards
in order to keep uniform images between varying businesses. It is the responsibility of marketing
to keep products appearances unchanged and manufactures goods in bulk quantity without
compromising with quality and up to standards.
Thus, in context to TESLA, marketing plays distinct roles and performs responsibilities
within business sector and to attract more customers in order to attain higher revenues.
P2. Interrelations of marketing with other organisational units
Interrelationships of functional units
Marketing as business function: Marketing is considered as a business function which
helps in identification of customer demands and accordingly responding towards them (Dibb and
Simkin, L., 2013). Organisations uses distinct business functions such as planning, organising,
staffing, directing, coordinating and controlling activities of marketing. Business units comprises
of distinct areas of functions or department that are responsible to perform corporate activities.
Some of the business units of TESLA includes human resource, finance and production.
Interrelation between the functional units and marketing are as described:
Finance function and marketing: Finance department manages all the monetary
resources of the company. The marketing department of TESLA is responsible to conduct market
research and for this proper budget plan is prepared by finance unit. Both departments are
interrelated on one another as they coordinate activities and to perform activities in effective
manner, capital requirements are managed by finance functions so that all the marketing
activities are performed as per the set objectives.
Human resource department and marketing: All business units requires talented as
well as competent candidates in order to drive activities of business in smooth manner. Human
resource department hire such candidates who possess skills together with potentiality to attain
consistent profitability. Human resource department plays efficient role of recruiting, staffing,
training and directing personnels. Both department work together during recruitment and training
procedures so that proficient employees are hired and training are provided them to satisfy
preferences of customers along with attaining success.
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TASK 2
P3. Comparison of various ways by which marketing mix is applied to the chosen organisation
Marketing mix refers to marketing tools that are utilised to pursue towards promoting the
brand in targetted market (Marketing mix. 2018). It is a strategy that us used to formulate
offerings as per customers demand.
Illustration 2: Marketing mix. 2018
(Source: Marketing mix. 2018)
Basis of comparison TESLA BMW
Product Products are tangible object where as
services are intangible activities or
actions. Products of TESLA includes
Model S, Roadster, Powerwall,
Model 3, Megapack batteries, solar
roof tiles, Model 3 and Tesla Semi.
TESLA is a established brand that
plays importance of increasing
business value, creating trust and
The products of BMW are BMW
3 Series sedan, BMW M4 Coupe,
BMW X5 and BMW i8.
Branding is important for BMW
as it supports advertising,
improves employees pride
together with satisfaction, and
generates new customers. The
product lifestyle adopted by the
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supporting advertisements. Product
lifestyle of TESLA comprises of
innovators, early adopters, early
majority, late majority and laggards
(Finch, Nadeau and O’Reilly, 2013).
The company has several products
that has attained maturity such as
TESLA model S and model 3.
company involves introduction,
growth, maturity together with
decline stages.
Price The pricing context states a price of
any product is set after considering
cost as well as market situations. The
company managers uses distinct
pricing strategies for distinct
products such as premium pricing
and market oriented pricing through
which more customers are attracted
towards unique products.
BMW managers have opted
premium pricing strategy and
luxury pricing strategy so that the
brand does not dilute or its
position does not become
unclear.
Place The marketers of TESLA manages
channels by adopting distribution
systems such as Company owned
Stores, service centres together with
charging stations. The supply chain
along with logistics are managed by
focusing on strategic, tactical and
operational activities in effective
manner.
BMW managers emphasis on
managing channels by making
relationships with distinct chains
so to deliver products ate distant
locations. Organisational supply
chain addition to logistics are
well managed by using supply
management technologies such
as enterprise resource planning
technology (FISK, 2013). the
company provides manufacturing
facilities in emergent markets
that helsp in its expansion.
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Promotion The company promotes its numerous
products before launching in the
market by using Integrated
communication mix strategies such
as viral marketing, direct advertising,
public relations and social media.
The promotional tools are used by
TESLA are to communicate with
audiences in effective manner.
The promotion of products by
BMW managers by using
integrated communication mix
includes personal selling,
advertising and sales promotion.
The company promotes the
products through media channels
such as billboards, TV and print
ads. All the promotional tools are
used to enhance awareness of
customers for existing or new
items.
People In context to TESLA, people are the
staff members who performs role of
interacting with customers and
delivering demanded products to
customers. The skills required to
deliver products includes
presentation skills and analytical
skills (Heinze and et. al., 2016). The
attitude of TESLA people are
positive that turns upset clients into
the happiest ones.
In Context to BMW, people are
employees who plays role of
gathering information,
establishing volunteer programs
and supporting activities of other
personnels. The skills that are
required to deliver organisational
products are marketing skills,
listening skills and creativity
skills. The attitude of the
employees is also positive that
changes negative customer
experiences into positive ones.
Physical evidence TESLA managers delivers services
through its charging stations and
owned stores that comprises visual
elements such as bills along with
messages.
BMW marketers while delivering
goods provides tangible
evidences in form of audio and
visual elements. Audio elements
includes voice messages.
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Process The procedures adopted by TESLA
to deliver consistent services
includes documenting standard
content, process, results, certifying
providers, preparing customers and
measuring satisfaction.
BMW administrators adopt
process that include preparing
content, implementing actions,
analysing results, certifying
providers, encouraging customers
to make purchase decision,
measuring customer satisfaction
and providing after sales services
(Hair Jr and et.al ., 2015).
TASK 3
P4. Marketing plan.
Marketing planning:
Importance and values of marketing plans: Marketing plans are very important for
organization as it helps to define what need to do and how for the purpose of expanding business
in other area and achieving business objectives. It creates a high value for customers by
developing products and services in a running business. TESLA's manager formulates marketing
plans that helps to increase awareness among people for developing new products and services in
market and helps to meet the needs of target market. Moreover, good marketing helps TESLA's
customers to understand why its product is better and maintain customer loyalty.
Linkage between marketing plans, objectives and strategies: Marketing plan,
objectives and strategies are linked with each other that helps business organization to achieve
goals smartly. Such as TESLA's manager make plans for expanding their product line by
introducing a new product. For developing new product it make strategies like STP and SWOT
analysis that helps to evaluate the organization profits. After making strategies of marketing
manager of such organization implement plans and strategies within organization that helps to
achieve business objectives effectively. Therefore, plans, strategies and objectives are related
that helps make plans accordingly and achieve business goals (Joshi, 2012).
Evaluation and monitoring of marketing plans: This means organization should
evaluate their marketing plans by collecting and monitoring different information regarding
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company. It helps to states the profitability ratio, sales over the year and market share which is
captured by company. Then manager get information how much they need to invest for
expanding business. Such as TESLA is world's best selling brand whose net revenue is more
than $ 21.46 billion in the year of 2018 (TESLA statistics. 2019). The market share of such
company is 2% that is planning to capture more market share by bringing new product.
Structure and development of marketing plans:
Executive summary: TESLA delivers auto mobile together with energy products in
international market and the managers of the company are planning to expand their product line.
They are planning to launch new product. For such purpose, marketing plan is formulated. The
plan comprises SWOT analysis, Budget statement together with STP approach.
Organisational overview: Effective marketing begins by understanding needs and
preferences as well as accordingly setting marketing strategies. TESLA is a multinational
company which performs operations in auto mobile industry. The business is situated in United
States and provide its products or services worldwide.
Vision and mission: The vision statement of TESLA is to build peaceful society that
recognises equal belief of all individuals. The mission statement of the company is to accelerate
transition of the globe towards sustainable transport (Kongstvedt, 2013).
Objectives and Goals: The strategic objective of the company managers is to produce
differentiated products within the industry and attain growth. The goal of administrators of
TESLA is to strengthen and expanding marketing operations by launching new product which is
TESLA Model K1 and to expand 30% market sales by 2025 as well as capture 15% shares of
market by 2025.
Situational analysis: Market situations are analysed using SWOT framework. The
SWOT analysis of TESLA is as described:
Strength Weakness
 Such organization is top most energy
and automotive parts provider that can
attracts customer by introducing new
products.
 Strong marketing and distribution
channel.
 Lack of penetration in rural area.
 No restriction on entrance of new
brand.
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 Luxury prices (Malhotra, 2015).
 Available at all places that create
interest of people.
Opportunities Threat
 New product with new features of car
that attracts customer more.
 Highly focus on changing demand.
 Capturing more market share.
 Competitions with high performer
company.
 Entrance of new brand.
 Existing brands are proving similar
features in various cars.
 Changes in government policy and
increase in prices of automobile parts
(Pike, 2015).
Marketing strategies: TESLA managers have opted marketing strategies such as direct
market, social media marketing, viral marketing as well as compelling advertisements. After
analysing situations, marketers have used STP approach which is as follows:
Segmentation: Herein, whole market is divided into distinct segments according to
homogeneous characteristics or needs. The market for TESLA Model K1 is divided into
mentioned segments:
Demographic segmentation: The marketers of TESLA makes distinct segments as per age
group and targetted individuals above the age of 18 years who are ready to spend for luxury cars.
Behavioural segmentation: The marketers have also segmented as per the environmental
friendly driving and brand loyalty of customers.
Targeting: TESLA targets individuals from upper middle as well as upper classes those
who are addicted to luxury and sports cars. They targets people above the age of 18.
Position: Marketers of the entity have planned strategies to position the new product
through social sites, banners as well as news paper articles.
Resource allocation: By consulting with finance department, managers of TESLA have
allocated monetary resources through preparing budgets. The budget statement for TESLA's
Model K1 is as follows:
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Monitoring and controlling measures: By measuring the results from sales analysis
together with market share analysis, some deviations are controlled using key performance
indicators and benchmarking reports that helped the managers in comparing the actual results
with set objectives in order to acknowledge growth margins in proper manner (Rossi, Allenby
and McCulloch, 2012).
CONCLUSION
From the presented information it has been concluded that all organisations are required
to perform marketing operations in order to attain profits together with high growth. The roles
addition to responsibilities of marketing are market research, selling strategies,conducting
business campaigns and standardisation. Different business functions in a company are finance
and human resource which are interrelated with marketing function. Using marketing mix,
comparison is made on the basis of product, people, physical evidence, price, process, place and
promotion. Creating marketing plan helped in preparing strategies that will result in attining
business objectives.
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