Implementation and Evaluation of Marketing Theories: Push and Pull Strategies
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This report analyzes the implementation and evaluation of push and pull strategies in marketing, specifically focusing on the concepts of above the line and below the line marketing techniques. It examines the successful marketing strategies of Tesla Motors and their impact on attracting and retaining customers.
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1 MOD003507 Principles and Practices of Marketing Task Two
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2 Table of Contents Introduction................................................................................................................................3 Implementation and evaluation of marketing theories...............................................................3 Above / below the line...........................................................................................................3 Push and pull strategies..........................................................................................................4 Conclusion..................................................................................................................................5 Reference List............................................................................................................................6
3 Introduction This report has been written as a formal account of the application of two marketing theories – the push and pull strategy, and the ATL and BTL theories – for analysing the promotional mix as adopted by Tesla Motors. The implementation of these two theories have been critiqued based on the last two years, along with the effectiveness of these tactics by gauging the outcomes on the basis of the key performance indicators. Implementation and evaluation of marketing theories Above / below the line Commonly referred to as the ATL and BTL (above the line and below the line) marketing techniques, these are two different approaches that are adopted by many companies that are seeking to establish themselvesasa prominent playerin the market while attracting customers. Above the line as an approach aims at building brand awareness while also showing the goodwill of the organisation. ATL campaigns are typically widespread, and are usually untargeted due to their wide reach, such as a global television advertisement campaign and similar promotional means (Šehović, Duduković and Mladenović, 2014). In such cases, the advertisements are not targeted at the specific people or the identified potential customers, but instead at every possible audience groups for the purpose of swaying their interest and catching their attention (Tselyutina and Malkov, 2015). On the other hand, below the line as a marketing approach is essentially quite the opposite, and BTL is utilised for targeting individual groups of people who have already been identified as being the potential customers. These marketing strategies range from activities such as social media, email marketing, billboard advertisements and flyer distribution, and even sponsorship events. Thus, BTL is essentially focused on the specific groups of people throughthepromotionaltechniques,andtheeffortsaretocuratethecontentand advertisements in such a manner as to cater to the needs of these very groups (Šehović, Duduković and Mladenović, 2014; Madleňák, et al., 2015). BTL is majorly focused on the return as gained on the investments as well, since the aim is to convert the users and quantify the success as much as possible. While ATL is aimed at raising awareness regarding the brand, BTL emphasises more on the gaining of results and outcomes that can be tracked through statistical measurements.
4 As can be understood from the market strategies adopted by Tesla Motors, its investments with regard to BTL advertising is near about zero. In fact, there is no chief marketing officer within the company (Rahman, 2020), which indicates that the organisation is all about an above the line marketing approach and thus, does not need to target the potential customers individually. There is little to no dependence on heavy campaigning and advertising, and the branding strategy is focused on creating a customer experience that speaks for itself. The primary leverage that Tesla Motors has is that of its strong mission and vision, and these elements are incorporated heavily into their digital marketing efforts, which is essentially the only form of promotional mix that is utilised by the company. Additionally, mention must be made of the role that the CEO, Elon Musk, has had to pay with regard to attracting and maintaining the social media followers for Tesla Motors. Musk is among one of the most talked-about celebrities in the world, not to mention the many controversial statements he makes on social media platforms, typically Twitter. These tweets essentially generate a significant amount of buzz, and indirectly shift the focus on the company in a very efficient manner. This can be easily understood from the large number of followers (Duffy, 2021) that Musk has been able to gain over the past two years, which can be said to be one of the primary KPIs or key performance indicators of this marketing approach. Push and pull strategies Push and pull strategies are also a popular form of marketing that is utilised by many companies including Tesla Motors, and they have a crucial role to play when it comes to the customer journey from the development of awareness regarding a product right to the time of purchase. Push strategies are those marketing efforts that intend to “push” a product towards a customer, while the pull strategies are formulated with the aim to “pull” the customer towards the company (Grewal, et al., 2016).Push strategies are fundamental with regard to converting the customers from merely potential buyers to ones that purchase the advertised product, while the pull strategies are more focused on building faithful brand ambassadors that can be retained in the long run. Push and pull strategies need to work hand in hand in a seamless manner for ensuring that there can be a healthy balance between the two techniques. The choice of marketing strategy needs to be pursued carefully, and this should be based on an understanding of the current business situation, the brand awareness in the market, and the intended target audience
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5 (Bezovski, 2015). Customers in the modern world are more tech savvy than before, and thus, they might need repeated exposure to the target products before they can be fully engaged and converted into buyers. Tesla Motors is one company that is known to be impeccable with respect to its customer service after the purchase formalities are over. This acts as one of the most efficient pull strategies that encourages the potential customers to convert into buyers, as they know that they would get the necessary aid they require after the purchase. For instance, there are supercharging stations being built all across the US and in several countries in Europe, which would allow the Tesla owners to recharge their vehicles right in the middle of their journeys (Tesla, 2020). This would further ensure that any potential customers who were previously wary of buying a Tesla car due to fear of inaccessibility of heavy-duty charging ports would overcome such inhibitions and be converted into loyal customers. This is reflected in the sales figures of the organisation, which stands at 499,550 units as opposed to the 509,737 units that were produced, in the previous year (Tesla, 2021). Furthermore, as the article by O’Kane (2020) suggests, Tesla Motors’ sales figures have been rising steadily since 2018, which indicates that the marketing strategies have been working quite effectively. In fact, it can be stated that this increase in the number of units sold in a year is the primary KPI that can be used as the metric for measuring the effectiveness of the pull strategies that the company has levied. Conclusion From this report, it can be concluded that the ATL and the pull strategies as employed by Tesla Motors have been quite successful in attracting and retaining customers. The above the line techniques focus on building an image of the company and its CEO in such a manner that the people get automatically intrigued and inquire about its products and services, thereby being fundamental in creating a sensational outlook of the organisation. Furthermore, the construction of numerous supercharging ports have also encouraged many customers to purchase the vehicles, as they know that they would not face much issues with the maintenance of the cars because of the efficient post-purchase services. Together, these marketing and promotional strategies have not only engaged the target audience but also increased the sales figures in the past two years.
6 Reference List Bezovski, Z., 2015.Inbound marketing-A new concept in digital business. [pdf] Available at: <http://eprints.ugd.edu.mk/16421/2/Inbound-Markeitng-a-new-concept-in-digital-busienss- ZB.pdf> [Accessed 8 February 2021]. Duffy, K., 2021.Elon Musk tells his 44.8 million Twitter followers he's stepping away from theplatform'forawhile'.[online]BusinessInsider.Availableat: <https://www.businessinsider.in/tech/news/elon-musk-tells-his-44-8-million-twitter- followers-hes-stepping-away-from-the-platform-for-a-while/articleshow/80651780.cms> [Accessed 8 February 2021]. Grewal, D., Bart, Y., Spann, M. and Zubcsek, P.P., 2016. Mobile advertising: a framework and research agenda.Journal of Interactive Marketing,34, pp.3-14. Madleňák, R., Madleňáková, L., Švadlenka, L. and Salava, D., 2015. Analysis of website traffic dependence on use of selected internet marketing tools.Procedia Economics and Finance,23, pp.123-128. O’Kane, S., 2020.Tesla sold more cars in 2019 than in the previous two years combined. [online] The Verge. Available at: <https://www.theverge.com/2020/1/3/21047233/tesla-2019- deliveries-q4-record-model-3-sales> [Accessed 8 February 2021]. Rahman, T., 2020.Why Tesla Pays $0 for Their Marketing.[online] Medium. Available at: <https://medium.com/better-marketing/why-tesla-pays-0-for-their-marketing-610781a23d63> [Accessed 8 February 2021]. Šehović, M., Duduković, M. and Mladenović, J., 2014. The Effectiveness of ATL and BTL advertising techniques. InProceedings of the XIV International Symposium Symorg: New Business Models and Sustainable Competitiveness(pp. 1134-1139). Tesla,2020.Supercharging.[online]Availableat: <https://www.tesla.com/support/supercharging> [Accessed 8 February 2021]. Tesla,2021.TeslaQ42020VehicleProduction&Deliveries.[online]Availableat: <https://ir.tesla.com/press-release/tesla-q4-2020-vehicle-production-deliveries> [Accessed 8 February 2021].