Marketing Management at Tesla: Strategies for Promoting Model 3

Running head: MARKETING MANAGEMENT AT TESLA
MARKETING MANAGEMENT AT TESLA
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1MARKETING MANAGEMENT AT TESLA
Introduction
The growth of the organization is dependent on the involvement of the relevant
stakeholders in the processes of the business operations. The different marketing and
promotional approaches that are undertaken by the businesses helps in maintaining the
sustainability of the same. The report “Can Tesla Avoid a Breakdown?” projected the offhand
behavior of the CEO Elon Musk towards the analysts. On the other hand, he refused to reveal
different details of the company’s monetary situation to the stakeholders, which has affected the
involvement of the same as per the growth objectives of the business. The promotion of the
Model 3 of Tesla is thereby affected by the vague answers that were given by Musk. Tesla’s
stock dropped by 6%, as the suitable promotional activities that were planned by the organization
was affected by the lack of marketing communication systems (Gao-gao, Chang-jie & Qing-
yun, 2012). The stakeholders, specifically the investors invest on the progresses of the business
through a thorough knowledge on the position of the business while operating in the international
markets. However, the lack of proper knowledge transfer and refusal to share the financial and
technical status of the organization with the stakeholders of the business has affected the
involvement of the same.
The discussion will be aiming at analyzing the internal and the external environments of
the business. The research will also portray the different recommended strategies that might be
undertaken by Tesla in order to promote the Model 3 in a more efficient manner and thereby
enhance the involvement of the stakeholders in the processes.
Marketing strategy using appropriate frameworks

2MARKETING MANAGEMENT AT TESLA
Efficient marketing strategies have helped the organization in identifying the demand of
the customers and the different market segments. Tesla has undertaken market survey in order to
identify their target customers who are the successful business executives and entrepreneurs. The
target customers of the organization are generally the upper middle class and the middle class
segment of the society with high affordability for the electric motors. Moreover, Nykvist and
Nilsson (2015) stated that the segmentation of the customers is based on their typical incomes of
over $ 100,000 or more. However, with time the organization has brought about changes in their
pricing strategies, which has helped in making the cars more affordable for the other segments of
the markets. It has helped the business in upholding the uniformity of the demand in the
international markets. The major aim of the organization is to reach out the eco- friendly cars to
the people in order to promote the green approach.
The strategies that are undertaken by the business have helped the same in enhancing the
sales volume of the business while operating in the international markets. Cardoso, Nishi and
Guimarães (2016) stated that the easy availability of the cars due to the reduction of the prices
has made the cars more affordable for even the middle income rated people. The strategies of the
business has helped in maintaining proficiency of the changes in the systems of the business as
per the objectives. On the other hand, the digital promotional activities that are planned by the
business has supported the growth of the same while operating in the highly competitive regions.
On the other hand, the Porter’s five- force analysis of the organization has helped in
enumerating the competition that is faced by Tesla and the different supplier and consumer
bargaining powers that shapes the promotional and product development factors. Tesla faces an
intense competition in the electronic car developing markets, as there are different other
manufacturers of the electronic vehicles. Therefore, the organization must take steps to bring in

3MARKETING MANAGEMENT AT TESLA
changes in the promotional methods in order to cope up with the increasing competition in the
diversified international markets. The bargaining power of the consumers depends on the low
switching costs, which is taken to be a moderate force that justifies the performance of the
business. The availability of substitutes in the market is lower which has helped in maintaining
the smooth functioning of the systems of the business while operating in the international
markets. Tesla’s operations are mainly based on the supplies that are given by the suppliers in
continuous intervals. It has helped in upholding the operational integrity of the systems of the
business while operating in the international markets. Therefore, the organization has taken
steps to maintain proper relations with the suppliers in order to support the smooth functioning of
the processes of the business (Wang & Liu, 2014). The threat of new entrants is a negligible
force which is faced by the organization as there are relatively lower amount of manufacturing
units who are focused on creating electronic motors due to the high cost of machineries required
for the manufacturing process.
External and internal environmental analysis
The strategies that formed by the organizations are mostly dependent on the evaluation of
the internal and external environments. The internal and external environmental analysis
undertaken by the organization helps in identifying the position of the organization in the market
and thereby bring in changes in the operating systems in order to gain a competitive advantage
while operating in the different markets.
Strengths
 Brand image
 Continuous innovative approach of the
Weaknesses
 High Cost vehicles affecting the
affordability of the commoners