Principle of Marketing: Marketing Environment, Planning Process, Segmentation, Targeting & Positioning, and Marketing Mix Analysis

This report analyzes the planning process and marketing environment of Tesla, Inc. and evaluates segmentation, targeting, and positioning as per the goals of the chosen organization. It also provides an analysis of the 7Ps of marketing mix and their importance in the context of effective marketing planning.

Principle of marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Section 1- Marketing Environment and Planning Process.....................................................3
Section 2 – Segmentation, Targeting & Positioning .............................................................6
Section 3 – Marketing Mix Analysis......................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11
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INTRODUCTION
Marketing is defined as necessary business operation and activity that has different set of
process, action and task in creating, communicating, exchanging and delivering about the offers
for promoting products and creating awareness among consumers. There are multiple plans and
strategies used for effective selling and promoting services or products in the market with the
aim of attaining pre-defined objectives of generating profits (Polk, 2018). There are different
kinds of tools that are used for managing and developing strategies of marketing in an
organisation. Tesla, Inc. is commonly known as company of auto-mobile manufacturing that
particular deals in electronic vehicles. Currently it also deals in products like solar roof tiles,
solar panels and many other related products. This is an American brand, headquarters located in
Palo Alto, California, United States. This is the report that is concerned about analysing planning
process and marketing environment. It also evaluates segmentation, targeting and positioning as
per the goal of chosen organisation.
MAIN BODY
Section 1- Marketing Environment and Planning Process
A)
The components of marketing planning process have their own particular significance in
marketing activities and strategies. There are different kinds of components of marketing that
must be initiated in the marketing planning process for gathering necessary and informative data
related to the market and entire significant factors. Some of the significant components of
marketing plan include market strategies, pricing, budgeting, branding, market research,
competition, target market etc. These components are considered under planning of marketing in
order to choose strategies, processes and activities for marketing objectives and goals.
Role and importance of the marketing orientation adaptation
Marketing orientation is plays vital and significant role in the various functions of
businesses especially in the process of customer analysis and development of product as per the
requirement of improving satisfaction level (Zwick and Bradshaw, 2016). This includes different
different tasks which hold major importance in development of product and satisfaction among
customers. In Tesla, projects of electronic car focus on developing best product with great
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approach of innovation and systematic orientation of marketing for filling the environment with
transport that is sustainable through providing products that are affordable as much as possible.
B)
Environment audit
Macro-environment analysis by PESTEL
PESTEL analysis is defined as tool that is necessary for various functions of business. In
terms of marketing function PESTEL analysis assists in analysing external factors of
environment that play significant role in process of marketing and development of product. This
particular analysis involves analysing political, social, economical, technological, legal and
environmental market factors (Iyer and Reczek, 2017). A brief analysis is done on these
identified factors for Tesla's electronic cars.
Political: This the element that comes under external environment which incorporates
political agenda and protocols that has great influence in the process of business. Specifically in
the context of Tesla's electronic cars the political agenda of U.S. Government is in the favour of
organisation as it clearly shows interest in vehicles that work electronically and offers all needed
to such type of projects. This is great opportunities for investors as they get support from
government to come up with innovative electronic car projects.
Economical: This is another component of external environment that involves factors
such as employment, income of population which assist in influencing the supply and demand
chain of electronic vehicles. In the terms of Tesla U.S. the rate of growth is slow but people do
not stop buying cars especially electronic cars as they keep purchasing cars on credit because of
availability of different deals such 0 percent financing. The innovation and technological
development is improving the opportunity of growth and employment opportunity for Tesla.
Organisation has selected the goal of economic development by generating opportunities of
employment and increasing level of production.
Social: This is generally known as significant factor of external environment that focuses
on needs of customers, their values, trends and culture. This could have impact product selling
and development. In relation to Tesla's electronic cars, the trend of development and support of
market and people towards environment and economical sustainability. It supports and
influences towards development of innovative electronic cars as it assists in reducing
consumption of fuel resources and pollution.
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Technological: This is influencing and effective element of market in current times.
There is constant development in technologies and techniques that is great opportunity for
organisation as it could utilize small techniques to develop innovative and new technology in the
form of electronic cars.
Environmental: In relation to Tesla's electronic cars this is one of the great opportunities
as it supports in developing electronic car and focus on saving and conserving electricity
(Shatskaya, 2018). Tesla is constantly working on solar batteries that assist organisation to stay
eco-friendly.
Legal: It is concerned about standards, policies and regulations of industry and market.
In the context of Tesla, it is playing major role in increasing customer safety and managing
employees as they develop products with great safety assurance and management of risks.
Micro-environmental aspects
In relation to management of every business function, it coordinates every activity for
analysing micro environment and managing it through great action plans and strategies. In the
context of Tesla, competitors and activities and operations of competitors is important to deeply
analyse in respect of mitigating risks and threats.
 Competitor of industry: There are many competitors of Tesla that include Honda motor
(HMC), General motors (GM), Ford Motors (FM) and Toyota Motor Corp (TM)
 Activities of competitor: There are many other competitors of Tesla that constantly
perform different operations and activities that give real competition to Tesla. Some of
the traditional car companies offer various models of pure electric vehicles and hybrid
gasoline electric care. For instance: Nissan Leaf is providing innovative electronic cars
with different advance features.
C)
7 P's of marketing mix and its importance in context to the effective marketing planning
Marketing is connected to the different factors and elements of the company and market
that need to be effectively addressed by the company's marketing function team. Marketing mix
illustrates the significant principles of marketing that assist in attaining desired goals by
addressing those (Jacuński, 2018). The marketing tools is defined as 7Ps of marketing mix which
had developed by E. Jerome McCarthy in the year 1960. This provides the sequence of
marketing principles which used as tool or framework for marketing plan and strategy
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development. The 7 principles of marketing is product that is customer focussed, price that is
cost focussed, promotion as communication focussed, process is related to creating coordination,
physical evidence to confirm etc.
Importance of effective marketing planning: Development and application of the
marketing mix considers entire principles as they help in developing effective and efficient
marketing plan for pre-defined targets and objectives. In the relation to Tesla, a systematic
analysis and application of consumer data related to requirements, demands and needs in the
development of product and process of presentation that assist in proceeding the next step of
development of pricing strategy as per the external and internal factors. It plays significant role
in promotion in the process of promotion for creating the effective promotion and advertisement
content with attractive information and presentation of products with appropriate prices. Price
must be satisfactory and attractive element in the content of marketing (TROACĂ and
Postolache, 2018). Organisation could effectively organise and manage their plan of marketing
with great implementation and consideration about people, service strategies and place and cost
effective process for management of task with the effective implementation of physical evidence
which offer the confirmation to consumers regarding investment value and product.
Section 2 – Segmentation, Targeting & Positioning
STP is associated with step model which is helpful in analysing, evaluating products and
services of the organisation so that to get support to render communication with various
customers. This is the model which is used in order to segment the market as accordance with
various characteristics within specific group of people. People selected within segmented group
will be targetted to various marketing campaigns. In this manner effective marketing mix
strategies can be used so that to appeal and attain targetted audience. In the context of electronic
care segment valuation and application of STP is elaborated as under:
Identification of difference between the segmentation of the B2B and B2C market
Business industry is associated with various market factors on which marketing process
can be exerted and at the same time business processes can be executed. There are two major
factors that are helpful in preparing business plan. B2B market is dealing in selling of products
from business to business and besides this another market is known as B2C which is associated
with selling of products directly to the customer without facing any mediator.
Segmentation of B2B market Segmentation B2C market
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This is defined as business retailer partner
which is associated with focused process.
These are the activities on which with the help
of appropriate analysis process of
segmentation is executed (East, Singh, Wright
and Vanhuele, 2016). This is associated with
the analysis of three major characteristics
which are profile, intent and engagement.
This is a customer based market segmentation
in which customer get selected from analysing
various characteristics and in order to match
them with product line as well. The major
types of segmentation under this aspect are
behavioural, demographical and
psychographic.
Example Example
Tesla is managing their business along with
B2B marketing in which they had made
partnership so that to minimise level of
competition. This market segment is giving
opportunity for the market to get involved in
various activities. For electronic care in order
to earn higher profits and sales they can
perform most appropriate partnership with
businesses.
Tesla is also making various efforts in BEC by
providing luxurious electric cars to their
customers. The major segment for Tesla is
those people who are prone towards using
innovative cars s Tesla is preferring to this
market segment. In this manner Psychographic
and demographic segmentation is being
preferred by Tesla. For attaining objectives of
earning higher sales the company may lead to
gain various opportunities from market.
Targeting of the B2C market
Tesla have selected the segment for B2C market as higher and middle class customer on
the basis of choosing Psychographic and demographic segmentation. After selecting their market
segment the company is required to use various promotional tools so that brand awareness
related to EV vehicles can be rendered among customers. Using various impactful promotional
tool such as advertisement and presentation could be helpful fo Tesla to develop awareness in
people as in respect of EV (Hadi, Abdullah and Sentosa, 2016). These commercial and tools are
associated with developing such information in which product luxury feature and various details
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regarding EV and its innovative features are demonstrated. Using social media, digital
promotional tools and other digital media tools awareness to each and every customer can be
given and at the same time customer can be attracted and fulfilled with their needs.
Explanation of positioning and suggestion for the company in context to effective
positioning in market
Positioning is defined as the process in which various strategies are opted in order to
provide effective brand image to the organisation so that higher sales can be opted and at the
same time target customers can be satisfied as well. This is executed using various effective
adjustments and using techniques of marketing mix so that to gain segment of specific
customers. Tesla is associated with mono-segment positioning in which the company is
providing assurance in respect of innovation and using environment protective practices as well
by minimising use of fuels. For Tesla using of effective positioning for new customers is related
with introducing various modification in their products and to emphasis over pricing strategies so
that to attract middle class customers. This can be executed by using various cost effective
development processes.
Section 3 – Marketing Mix Analysis
7Ps of marketing mix
Marketing principles Application in context to electronic Cars
Product
This is defined as the primal principle of
marketing mix. Within this such offerings are
aimed for selling to customers. These are
required to be customers centric so that any
modifications can be introduced which are
needed by customers (Jianu, Ţurlea and
Guşatu, 2016). As accordance with needs and
preferences of customers so that to place and
attract target customers.
Tesla electronic care is required to introduce
such innovation within their products so that
needs and requirement of customers can be met
in most effective manner. Over such customers
various targetted strategies so that to gain
effective marketing strategies. In order to gain
effective market position Tesla is required to to
introduce various environment friendly
measures so that to gain sustainable features.
Price
This is defined as the other essential principle
Tesla is required to adopt effective pricing
strategies so that all customers from desired
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within marketing mix. Within this principle
pricing strategies are introduced by the
organisation over their products such as
discount, offers and other satisfactory offers.
segment can gain profitable edge and at the
same time quality standards can also be met by
the organisation.
Promotion
This principle is associated with using such
promotional tools so that to advertise product
and to spread awareness related to the products
so that to provide attractive and informative
aspects to customers. This aspect of marketing
mix is providing path to attain goals to the
organisation in which product quality can be
uplifted by the organisation.
Tesla is associated with electronic car segment
and in this manner the company is promoting
their businesses using effective promotional
and selling techniques. Using informative TV
ads Tesla is promoting their products besides
this the company is using celebrity
endorsements as well in order to provide
awareness within market.
Place
This principle of marketing mix is related with
the place at which the product is sold in
effective manner. This aspect is associated
with providing such ease to customers that they
may get ease of buying products with high
level of comfort.
In order to select appropriate place for selling
of their products so that to provide
effectiveness in selling process (Simmonds,
2018). In this manner Tesla may provide ease
to their customer in order to access their
products.
People
This is the other principle of marketing mix in
which various stakeholders are added.
Employees, customers and other parties those
are having stake in the business are included in
this head. In order to get appropriate edge
within market and to provide support to
various strategies.
Tesla is associated with using of innovative
techniques within their products so that to gain
higher customer satisfaction. In this manner
various improvements using marketing plan
and other training sessions for giving
awareness to people related with usage of
products. In this manner the company may
attain higher edge of customer satisfaction so
that various stakeholder can be attached.
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Process
Process is defined as the procedures which are
being executed within the organisation so that
to gain effectiveness over business practices.
This aspect is helpful in gaining higher
customer experience and increasing
organisational activities as well.
Tesla is using various significant processes in
their organisation so that to deal with market
needs in most imperative manner. Besides this
the company is adopting social, digital and
other methods to provide awareness to their
products in the market.
Physical evidence
This is regarded as the other principle within
marketing mix in which physical appearance of
the brand is seen. This is playing significant
role in managing the brand image in the market
and to provide differentiated image as well
(Kemper and Ballantine, 2019). With the help
of appropriate physical presence various
customers can be attracted and at the same
time market identity can be enhanced.
In the context of Tesla physical appearance of
their products are unique. Tesla is producing
prominent outer body of their cars which are
durable and identifiable in the market. In this
manner Tesla is able to grab attention of their
customers and capturing every segment of
market.
CONCLUSION
From the above detailed analysis this can be concluded that marketing function is
associated with various processes and these are implicated to products and services offered by
the organisation. Marketing principle are essential and playing supportive role within structure
within marketing functions. There are various principles which are linked with appropriate
market analysis such as PESTLE and STP so that to gain market identity and to attain
sustainability as well. There are two types of business activities such as B2B and B2C these are
associated with dealing with introducing marketing concept and to gain separate business
insights. With the help of marketing mix different aspects can be undertaken and at the same
time differential decision can be undertaken.
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REFERENCES
Books and Journals
East, R., Singh, J., Wright, M. and Vanhuele, M., 2016. Consumer behaviour: Applications in
marketing. Sage.
Hadi, N.U., Abdullah, N. and Sentosa, I., 2016. An easy approach to exploratory factor analysis:
Marketing perspective. Journal of Educational and Social Research, 6(1), pp.215-215.
Iyer, E.S. and Reczek, R.W., 2017. The intersection of sustainability, marketing, and public
policy: introduction to the special section on sustainability. Journal of Public Policy &
Marketing, 36(2), pp.246-254.
Jacuński, M., 2018. Measuring and analysis of digital marketing. RESEARCH PRIVACY, p.11.
Jianu, I., Ţurlea, C. and Guşatu, I., 2016. The Reporting and Sustainable Business
Marketing. Sustainability, 8(1), p.23.
Kemper, J.A. and Ballantine, P.W., 2019. What do we mean by sustainability
marketing?. Journal of Marketing Management, 35(3-4), pp.277-309.
Polk, X.L., 2018. Marketing: The Key to Successful Teaching and Learning. Journal of
Marketing Development & Competitiveness, 12(2).
Shatskaya, E.S., 2018. FEATURES OF MARKETING IN AN INTERNATIONAL
FIRM. Modern Science, (11), pp.93-96.
Simmonds, H., 2018. Enabling the marketing systems orientation: re-establishing the ontic
necessity of relations. Kybernetes.
TROACĂ, V.A. and Postolache, A.G., 2018. Sustainable Marketing in Economy.
In PROCEEDINGS OF THE 1ST INTERNATIONAL CONFERENCE ON
ECONOMICS AND SOCIAL SCIENCES (p. 86).
Zwick, D. and Bradshaw, A., 2016. Biopolitical marketing and social media brand
communities. Theory, Culture & Society, 33(5), pp.91-115.
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