Principles and Practices of Marketing: SOSTAC Model with PESTLE Analysis, STP, and Marketing Mix Strategies

This report explores the principles and practices of marketing, focusing on the SOSTAC model with PESTLE analysis, STP, and marketing mix strategies. It discusses the objective and situational factors of the model and examines the impact of political, economic, social, technological, legal, and environmental factors on Tesla's operations. The report also explores how Tesla can target new market segments and optimize its marketing mix, with a focus on place, price, and product.

PRINCIPLES AND
PRACTICES OF
MARKETING

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
TASK 1.......................................................................................................................................................3
TASK 2.......................................................................................................................................................5
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
SOSTAC is marketing model that is utilized by organization for knowing key elements which
can influence business activities. In modern world, competition has increased so it is essential for
firm to adopt proper model for gaining advantages. Tesla is large multinational automotive sector
firm. It has presence in many countries which expands operational scale of dealing. The current
report will give emphasis on SOSTAC model with usage of PESTLE analysis, STP and
marketing mix strategies.
MAIN BODY
TASK 1
The particular task focuses on objective and situational factor of this model. In addition
to this, objectives refers to where company want to be? Situation identification also takes place
which aids firm to identify where the company is right now (Rui, 2019.). There are several
places where organization has presence but in many nations it is unavailable to cover global
market. South Carolina is region in which Tesla does not operate due to several political, social,
cultural, economical, technological and legal factors (Rahman and et.al., 2020.). PESTLE
analysis provide assistance to organization for determining influencing elements that can affect
its business & corporate strategies:
Political factor
Tesla is large multinational automotive manufacturing firm which has presence in several
nations due to its strategic business approach. In specified nation there is different political
norms that does not allow company to conduct manufacturing process. The challenging factor for
Tesla is lack of awareness about benefits regarding e-car features. It does not enjoy political
support in nation as they discourage production of electric vehicle by foreign company. Recently
nation has focused on manufacturing and sale of this type of auto mobile products. It identifies
present situation of mentioned firm which impact its business objectives.
Economical Factor

There is economic opportunity available for Tesla in worldwide. In recent time company
wants to conduct and continue its organizational activities realted such places only where
obtaining of raw material, labour resources, etc. are easily accessible (Perera, 2017). Tesla can
derive this opportunity in particular targeted segment of global market. Increasing prices of fuel
serves the biggest challenge to industry. With respect to this, it is a production company of
electronic vehicles whose demand does upside when fuel value increases. Current era has
increased demand for offered products by Tesla which is positive sign for operating in mentioned
country.
Social Factor
Customers in global as well domestic market has become aware about conservation of
resources. It offers those items that can consumes renewable resources which enhances its
demand. In competitive market it becomes essential for company to derive important uniqueness
for encouraging & attracting buyers which provides longer sustainability and growth. In
SOSTAC model enterprise get assistance in determining particular situation which can positively
or negatively affect functioning (What is SOSTAC methodology? 2018). With help approach it
becomes possible for Tesla to identify taste & preferences. Company can achieve its setup
objectives in effective & efficient manner. South Carolina provides mentioned threat and
opportunity to Tesla.
Technological Factor
Low Carbon footprint is appreciated by businesses which enhances demand of Tesla
produced vehicles. Growing uses of embedded technology in auto mobile reduce the carbon
footprint. Every nation has objective to develop its public preference regarding advanced
technology which encourages development of country. There are various factors that becomes
barrier for Tesla while entering into market. The educational, acceptance level & affordability
play important role in accomplishing business objectives. The objective of Tesla for doing
situational analysis through PESTLE analysis helps to attain factors that can become barrier or
supporting for achieving objective. Artificial Intelligence contributes in developing strong
market coverage in turn better sustainable growth & development can be derived by business.

Furthermore, replacing obsolescence of technology with advanced devices helps business to get
desire objective.
Legal Factor
Electric vehicle are safe, user-friendly usable and reliable to market need to proof by
company to legal terms and condition of South Carolina. Every nation has strong rules &
regulations, laws and legislation which ensures safeguard of consumer. With changing time it
becomes crucial for business to cope up with enhanced requirement of government in assuring
that busienss practices comply with mentioned acts related to automotive sector
(Pourmohammadi and et.al., 2020). While initiating operations in foreign nation company need
to make better business strategy that positively motivate employees by creating healthy & safe
working culture (Cooper, 2020). Tesla adhere all this corporate norms and condition which can
be positive sign for it to develop presence in nation.
Environmental Factor
Increasing concern regarding natural resources affect both positive & negatively to
organization activity of Tesla. It needs to adhere this prevailing situation in favourable manner so
that company can complete social corporate responsibilities.
With help of PESTLE analysis tesla can derive this macro environmental factor which
may assist it to modify its current business strategy to accomplish its objectives. SOSTAC model
is widely utilized by firm to get knowledge regarding key issues that can affect its objective.
Tesla would be able to reach its objective regarding increasing 30% revenue by covering new
market segment at the end of this financial year.
TASK 2
SOSTAC model of marketing helps business to determine strategy which can fulfil its
current business objectives. Tactics as being digital tool examine segment which can aid
company to target segmented market through using marketing mix. Tesla can make the business
strategy modified by improving its present approach of dealing with customers.
Strategy

It refers to the approach company make for fulfilling its established business subjective.
There are several plans of action which can help fir to get into the desire position. The course of
action that can be utilized by Tesla for achieving its goal with assistance of digital platform. To
have presence in new global segment company can choose mostly used plan by multinational
organization. In case of targeting new customers in another nation. It becomes essential for
company to have adequate methodology for attracting buyers. Segmentation, Targeting and
Position (STP) is acquired by firm for moving towards success.
In Multinational organization company use Standardization, adoption and glocal process
for attracting buyers in turn desire outcome can be derived. It will help Tesla to identify
particular segment of market that can increase sales and result into enhanced percentage of
revenue. Digital presence reduces cost and operating expenses which helps business to optimize
its financial resources in marketing & promotional activities (Bing and Peng, 2021). After
identifying valuable part of new market company focuses on attracting their attention. It is done
by modifying plan of marketing according to their lifestyle, demographic factor, etc. There are
various tools that permits multinational as well small enterprise to utilized digital tools for
getting attention of New target country. Google's analytics, SEO, etc. increase brand awareness
among customers through providing convenience in knowing key characteristics which can be
beneficial for personal and corporate use.
Converting strangers into visitor who can lead prospect in customer. It plays role in
positioning brand through promotion exerted by customers. SOSTAC gives focuses on
digitalization through social media, blog, keywords, call to action, email, CRM integration, etc.
are strategies which can be utilized. It clarifies path which can help organization to reach towards
its desirable end outcome. Tesla as being complex and large scale operator in automotive sector
it can adapt STP strategy for accomplishing expected position. In bound marketing
implementation can provide more effective result to Tesla through enabling quality education
regarding products.
Tactics
It covers specific tool of digital mix which can plan to attain objectives of marketing
plan. With help of strategy element of model it has been identified that Tesla focuses on product

range, global operation, structural while keeping concentration on effective utilization of
financial resources. There is 7Ps in marketing mix which makes the whole process of achieving
objective very effectual. The current report focuses on product, place, and price of Tesla. In
order to formulate appropriate course of action it becomes crucial for Tesla to concentrate on
Standardization, adoption and Glocal factors. Being a global operator in auto mobile industry
essential for Tesla to specify each step for achieving result in the best manner.
Place
Place is important attribute of marketing mix for meeting its established objectives. It
aids company to get awareness about the area where it wants to continue its operational
activities. Practices are being normally carried out after deciding the place that can appreciate its
products & afford the determined price. Standardization is multinational approach that minimizes
cost with unique market approach implementation (Marcial, 2021). It advertises more in selected
place for gaining positive result in effectual pattern.
Price
Price being critical influencer of decision-making regarding purchase regarding
commodity need to give most preference. The adoption strategy should be so trenchant for price
element of marketing mix. It permits customers to be in touch with product while ensuring
longer duration usability of products (Rui, 2019). This should be coordinated with both personal
customers' and organizational goal while launching business in chosen place. Tesla should match
its price with competitors serving same market.
Product
Product is base for all additional activities business carry out by Tesla. Its electric vehicle
should be capable of meeting requirements of targeted buyers. This should combine both global
and local marketing so that all unique characteristics of can be known by prospects in every
industry product formulation and creating awareness. It plays import role in influencing
customers' buying decision in positive manner.

CONCLUSION
From the above report it can be concluded that SOSTAC approach is very effective in
achieving company's objective. The present case study has given emphasis on macro factors for
situational analysis and accomplishment of objectives. The strategy and tactics has also been
mentioned in report.

REFERENCES
Books and Journals
Bing, C. and Peng, C., 2021, March. Construction of power data products based on STP theory.
In IOP Conference Series: Earth and Environmental Science (Vol. 680,
No. 1, p. 012035). IOP Publishing.
Cooper, R. J., 2020. Pestle and mortal: the demise of community pharmacy in the
UK. International Journal of Pharmacy Practice. 28(3). pp.205-206.
Marcial, V. F., 2021. Marketing mix de servicios de información: valor e importancia de la P de
producto. Bibliotecas. Anales de investigación. 11(4). pp.64-78.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Pourmohammadi, K and et.al., 2020. A comprehensive environmental scanning and strategic
analysis of Iranian Public Hospitals: a prospective approach. BMC
research notes. 13(1). pp.1-7.
Rahman, A. and et.al., 2020. Political Marketing Communication in Building Brand Awareness
towards Young Voters. International Journal of Communication Research.
10(3). pp.286-295.
Rui, X., 2019. Service marketing research based on sostac structure-Belfast Zoo. European
journal of economics and management sciences. (3).
Rui, X., 2019. Service marketing research based on sostac structure-Belfast Zoo. European
journal of economics and management sciences, (3).
Online
What is SOSTAC methodology? 2018. [online]. Available through:
<https://www.antevenio.com/usa/what-is-the-sostac-methodology/>

REFERENCES
Books and Journals