Marketing Fundamentals Analysis and Evaluation for Tesla Company

This report offers a comprehensive analysis of Tesla's marketing strategies and practices. It begins with an introduction to marketing fundamentals and then delves into the processes and stages of marketing, including the role of the marketing mix. The report examines how the marketing mix contributes to developing customer value, providing insights into Tesla's approach to product, price, place, promotion, people, process, and physical evidence. Furthermore, it explores stakeholder engagement and its impact on Tesla's marketing activities, utilizing the stakeholder matrix as a key tool. The analysis covers internal and external environmental factors, including political, economic, social, technological, environmental, and legal aspects (PESTEL). The report concludes with a summary of tactical communication tools for generating awareness and overall reflections on the company's marketing efforts.

Marketing Fundamentals
Analysis and Evaluation
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Processes and stages of marketing including the role of the marketing mix...............................3
Role of marketing mix in developing value for customers..........................................................6
Stakeholder engagement & their impact on the marketing activities of company......................7
TASK 1B.........................................................................................................................................8
Conclusion & reflection of the tactical communication tools to generate awareness.................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Marketing is basically defined as a process of creating awareness and promotion goods as
well as services in market. Marketing plays an important role in every organisation as it help in
raising sales and customer base level of the company (Gugler and Haxhimusa, 2019). Marketing
is a set of action that is develop in order to sell the goods and services in an effective and proper
manner at marketplace. For the present report, Tesla is chosen as a base company. It is an
American Electric Vehicle company that is located at California, United States. The company
was founded in the year 2003 by Martin Eberhard and Marc Tarpenning. Tesla offers its product
in more than 30 countries and has more than 50,000 staff members. The report covers stage and
process of marketing along with the role of marketing mix. In addition to this, there is a
discussion about role of marketing mix in developing or building value for customers. Moreover.
Stakeholder analysis is describe and their effect on the marketing activities of company is cover
in the report.
TASK 1
Processes and stages of marketing including the role of the marketing mix
According to (William J. Stanton) marketing is the entire process of satisfying the needs of
customers. It starts with identifying the requirements and wants of the customers, and it regular
till the wants are satisfied and the consumers are delighted. Marketing is not only about
providing products and services but also about providing changing advantages to the changing
requirements and demands of the consumer.
From the point of view of (E. Jerome McCarthy) process of marketing includes some steps
which is essential for concluding operations and functions of marketing in effective or successful
manner. Process of marketing consist analysis of marketing environment which include both
internal and external environment, segmentation of market, targeting the market, analyse the
behaviour of customer, marketing decisions and many more. They said that analysing the
environment of market for developing effective strategies and policies related to marketing is
necessary. In sequence to attract more and more customers, to develop some marketing strategies
Tesla first analyse their external and internal environment. It is already stated that to get
successful and effective outcome company need to examine the environment and then take some
decisions to get success. By doing effective analysis business entity can able to make proper
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strategies for organization. For analysing the internal environment company need to do SWOT
analysis, this is done to examine the strength, weaknesses, opportunities and threats of the
company by analysing internal factor of the business organization. And on the other side, to
examine or analyse the external environment PESTEL is done, PESTEL is an effective tool
which is used by Tesla to analyse the external environment of the organization. External
environment includes some factors which is require to analyse or examine by Tesla those factors
are Political, Economic, Social, Technological, Environmental, Legal by analysing all these
factors company can change some strategies according to external environment. All the external
factors which affect Tesla is explained below –
Political Factors: - Smartly knowing about the government rules and regulations is the
key feature of running a successful business (Aguilera and Aguilera, 2018). Tesla has faced
many political factors like new global trade agreements, stability in political market, norms of
government for electric automobile and etc
Economic Factors:- Economic factors also play an important role in the success of the
Tesla whereby there are many trouble face by Tesla in economic factors are like market
conditions for the product, currencies, up's and down's in share market, decrease in the cost of
battery and also in the cost of renewable energy.
Social Factors: - These factors are related to the society who are using the product.
Society plan an important role in the production of the Tesla these are the one of major terms for
which the Tesla is producing their products the main problem face by Tesla in society is better
wealth distribution in the developing market, increasing demand for renewable energy but the
growth opportunity of Tesla is based on the increasing popularity of low-carbon lifestyle and
demand for renewable energy by which Tesla got a chance to boost its financial situation.
Technological Factors: - In this dynamic world changes take place at each minute and
giving the business as the high-speed change is a difficult task. And we are living the century of
technology if somehow the Tesla will not able to change regardless with the technology it might
be considered as a big loss due to high competition in technology market. Tesla has faced many
technological external factors like high rate of changes in technology, demand of automation in
Tesla, and great demand for online mobile system.
Environmental Factors:- Environmental factors refers to the availability of the raw
materials and some basic need of the production in the environment apart from this
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environmental factors also includes the change in climate and occurring of natural disasters
which are not planned active, recycling the waste and etc but the major ecological external
factors affecting Tesla are increasing the waste disposal.
Legal Factors: - Law and legal system took the manager to take decision in regardless
the law of the countries for the development of the business. There are various rules for the
particular countries for the human resources and there are many guidelines regarding the
production of the products various legal factors affecting Tesla are regulations on the energy
consumption, sales and dealership regulations and etc.
To attract customers and to consider their needs and wants in effective manner Tesla do
market segmentation means they breaking-down the total market into self-contained and sub-
groups of customers according to their special requirements and features. After dividing
consumers in sub-group Tesla then focus on targeting is identifying groups of consumers who
highly like to buy Tesla’s products and services. After segmenting and targeting the market then
company need to examine their distribution channel to fulfil the requirements of customers
and to deliver the products on time to consumers. There are some more essential operations and
functions of marketing which company need to follow like directing or managing marketing
inspection to develop strategies and to set a proper budget. Marketing inspection is very
essential technique of marketing this is used to analyse the strategies and activities of marketing.
After managing marketing inspection Tesla can able to set a proper budget for their marketing
strategies.
Marketing Mix include 7Ps of marketing such as product, price, place, planning, people,
promotion, physical evidence. Marketing mix principles are used by Tesla as tool to assist them
in pursuing company’s objectives. Product & price both are the important aspect, reasonable
price and effective product always attract consumers towards the company. Place & promotion
having the right product, in right location, at right time to be purchased by costumers, promotion
is communication that market may use to deliver information to various people about the
products. People involves employees of business organization because mainly service is
dependent on people to deliver them successfully. Process is the manner in which transaction,
supplying information and providing service on the way. Physical evidence includes everything
that a business organization physically exhibits to the consumers.
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Role of marketing mix in developing value for customers
As per the view point of Germser & perks, (2015), Customer value is mainly a satisfaction
of user that is gained by the companies product as well as services. One of the main function and
element that assist Tesla in developing value, delivering value and communicating value to
customers is marketing. In relation to the role of marketing, it help in developing and creating
value to customers by identifying customer requirements as well as market conditions.
Marketing provides all the information, features, speciality, characteristics of goods and services
to the customers in an effective manner (Carraturo, 2018). In addition to this, marketing also
explains about unique features and how it works which is beneficial for customer and develop
positive mind set of customers towards brand. One of the main objective of performing
marketing activities and function is to sell the product in such a manner that it fulfil
requirements of customer.
According to the view point of Chen and Zhu,(2015), it is said that marketing aid
customers to gain an insight about the different features and the characteristics involved in the
product and services. For instance, Tesla provide electric vehicles, batteries and many more.
There are various other company such as Volvo cars who offer the same product, it develop
choice or option in front of customers. Thus, Marketing functions and activities aid company to
make believe customers about their product and help in engaging them for longer time period.
By the assistance of marketing, Tesla make it believe to customers that their products surely
fulfil their requirements and help in creating value to customers. Therefore, it is determine that
marketing is an important aspect that can develop value for customers & influence them to
purchase product and services as well.
In contrast, (Dale & Plunkett, 2017) discussed various elements and drivers that play an
important role in creating value for customers in relation of marketing. It involve product
functions, branding, quality, product differentiation and many more (Kancherla and Daim, 2018).
One of the main factor that is undertaken by customer while purchasing the product us quality. In
marketing process, organisation mainly emphasis on introducing product quality and features to
customer. It is stated that customer not only consider price while buying products but also focus
on quality, features, benefits and so on.
For more understanding, Ascheman- Witzel & Zeike, (2017) stated that pricing of goods
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Plays an essential role along with the quality of goods and services. Customers also make
decision in terms of price as they compare the price provided by competitors and the price charge
by particular company. Therefore, it is essential for an organisation to emphasis on pricing
strategy along with the quality of the product offer in market. The marketing team of companies
analyse the price charge by their competitors and then help company to set price of their product
which in turn assist company to attract more number of customer and raise their profitability
level. Moreover, it is determine that the most essential factor in marketing process is price that
can build value for customers.
According to the view point of Davick and Sharma(2016), another role as well as
importance of marketing is meeting with customer expectations & increase company brand
image. One of the main reason of success and growth of company is fulfilment of customer
requirements and meeting with their expectations in a proper manner, it help company to develop
brand image and retain in market for longer time period. Marketing aid in attaining company’s
goal as all its functions and activities is customer centric that is customer satisfaction. By the
assistance of marketing functions, the mangers of Tesla can develop and build its high reputation
in market. By the assistance of this, company can attain an opportunity to attain competitive
advantage at marketplace. Marketing assist an organisation to maintain a balance customer
expectations & competitors offering through monitoring the market closely. Therefore, it is said
that marketing functions plays an essential role in develop value for customers and attain
competitive edge at marketplace.
l Stakeholder engagement & their impact on the marketing activities of company
Stakeholders matrix defined as an effective tool which is used to determine the actions of
stakeholders and their influence on marketing activities. The stakeholder engagement assist an
organisation in analysing & developing marketing strategies in a proper manner. By the
assistance of stakeholder engagement assessment matrix, an organisation can analyse direction of
stakeholders & their affect on marketing activities. The stakeholders of Tesla are customers,
suppliers, government, employees and many more. This matrix include five categories that is
resistant, supportive, unaware, leading and neural as well. These are as follows:
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Unaware: It involve those stakeholders of Tesla who have no ideal about marketing
activities and can decline the overall sales so it is essential for company to emphasis on these
stakeholders.
Resistant: They are those stakeholders who have knowledge about marketing activities
but not accept the changes.
Neutral: It include those stakeholders of Tesla who has knowledge about marketing projects and
activities but did not support or resistant to organisation (Ren, Wu and Liu, 2018). There is no
need to focus on these stakeholders as they did affect company in a negative manner.
Supportive: This stakeholders support changes and aware about marketing activities of
Tesla and impact positively on organisation.
Leading: It involve stakeholders who take interest and actively participate in marketing
activities and support changes in a proper manner. So it is essential for Tesla to focus on this
stakeholders and retain them for long run.
From the above discussion, it is analyse that company require to focus more on unaware
and resistant stakeholders as they effect on marketing activities negatively.
TASK 1B
Conclusion & reflection of the tactical communication tools to generate awareness
It is determine that tactical communication tool plays vital role in developing awareness
about goods and services offered by company. The marketing functions can be implemented
properly when marketers communicate about their offerings to the target and segment people in a
proper manner. The different communication tools are Video, E-mail, telephones, search engine
optimization and so on. It is analyse by me that all this communication tools aid an organisation
in developing effective relationship with customers and retain them for longer time period. It is
also identifying by me that tactical communication tools is used when an organisation plan &
change communication network due to change in environment.
In relation to marketing, there are many communication tools that assist in interacting
with customers and generate awareness about product are as follows:
Social media: Nowadays, more than 60% pf people use social media applications such as
Facebook, Instagram, YouTube and many more. I can say that it is one the best and trending way
to communicate with people in an effective manner. By the assistance of Video advertisement,
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viral content and information, companies can communicate about their offerings to the target
customers effectively. It addition to this, it also company to gain knowledge about customer
requirements that will lead to customer satisfaction and retention as well.
E-mail: It is also consider as an tactical communication tool for marketing. It is analysed
by me that E-mail help Tesla in creating awareness and transforming recipients into the potential
customers. The E-mail is directly sending to the individual so there is less chance to unread and
get missed as compare to other tactical communication tools.
Therefore, it can be said that tactical communication tools assist company in creating
awareness and increase customer base level. There are many people who spent their time on
internet so it is one of the best way to communicate and interact with people that leads to
increase in sales and profit level of an organisation.
CONCLUSION
From the above study, it is concluded that marketing plays an essential role in every
organisation in order to develop value for customers. PESTLE framework is used by company in
order to know about the impact of macro environmental factors on the performance of the
organisation. All the Stakeholders of company is influenced by the marketing activities so it is
important for an organisation to implement marketing activities in an effective and appropriate
manner.
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REFERENCES
Books & Journal
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management strategies in electric vehicle technology advances at Tesla. In Futures
Thinking and Organizational Policy (pp. 57-69). Palgrave Macmillan, Cham.
Carraturo, M., 2018. Tesla Motors: analysis of disruptive trends in the automotive and energy
industry.
Gugler, K. and Haxhimusa, A., 2019. Market integration and technology mix: Evidence from the
German and French electricity markets. Energy policy, 126, pp.30-46.
Hoelzlhammer, A., 2018. A Strategic Audit of Tesla. pdf.
Islam, S., 2019. Fundamental and Technical Analysis: Tools Used in Stock Market.
Johnson, A. and Reed, A., 2019. Tesla in Texas: A Showdown Over Showrooms. SAM Advanced
Management Journal, 84(2), pp.47-56.
Kancherla, Y.D. and Daim, T.U., 2018. Technology Roadmap: A Roadmap for Tesla.
In Infrastructure and Technology Management (pp. 347-366). Springer, Cham.
Matthews, T., Hirve, M., Pan, Y., Dang, D. and Rawar, E., 2018. Tesla Energy: Making Solar
Power Affordable and Easily Available for Homes and Businesses.
Ren, R., Wu, D.D. and Liu, T., 2018. Forecasting stock market movement direction using
sentiment analysis and support vector machine. IEEE Systems Journal, 13(1), pp.760-
770.
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