Marketing Strategies and Theories: TESLA Report (MOD003507)

This report provides an in-depth analysis of TESLA's marketing strategies, focusing on promotional activities and the application of marketing theories. The report examines various promotional techniques employed by TESLA, including customer-facing touchpoints, external spaces, digital platforms, and third-party collaborations. It delves into the effectiveness of these activities in attracting customers and boosting sales. Furthermore, the report explores the implementation of key marketing theories, such as the AIDA model and push and pull strategies, within the context of TESLA's business operations. The report also provides insights into the company's approach to customer engagement, brand building, and overall market positioning. The report concludes with a comprehensive overview of TESLA's marketing successes and challenges, offering valuable insights for understanding the dynamics of modern marketing practices.

Principles and
Practices of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1 ..............................................................................................................................................3
Promotional activities......................................................................................................................3
At customer facing touchpoints: ............................................................................................4
In external spaces: .................................................................................................................4
Via digital platforms: .............................................................................................................5
Through third parties: ............................................................................................................6
Task 2 ..............................................................................................................................................7
Marketing theories...........................................................................................................................7
AIDA Model:..........................................................................................................................7
Push and Pull strategy............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................12
INTRODUCTION

Marketing is considered as the buying and selling of commodities to the customers for
making profitability to the organisation. It can be done with the help of promoting product and
services through online and offline platform. TESLA is taken as the base company. TESLA is an
electric vehicle and clean energy which is founded by Elon Musk and its headquartered is in Palo
Alto, California, United States. In this report, it covers the promotional techniques that is used by
an organisation for promoting itself. It also incudes the marketing theories which is implement to
the organisation.
Overview of company
TESLA is an automotive and energy cleaning company which manufactures electric cars,
batter storage products and solar panels for customers. They are currently considered as the best
ranked car manufactures including with the production of battery storage and solar panels.
TESLA sells many full electric cars in which Model S sedan, Model X SUV and Model 3 sedan
are the top best selling cars of them. These cars are running with the help of lithium-ion batteries
which are rechargeable. They have also introduced their autopilot self- driving cars which are
popular among the people and due this feature of self driving technology, it eventually increases
their sales. More than half of the sales is generated by their automotive segment. TESLA is
providing their services worldwide in which they manufactures their automotive ins different
locations such as Berlin, New York, Germany and so on where as their storage products are
manufactured at Gigafactory Nevada. They have delivered more than 4,99,550 cars to their
customers and produced 5,09,737 cars in year 2020.
Task 1
Promotional activities
Promotion is the main element in marketing where it helps in attracting customers for
buying of the products and services (Ameer, 2019). The market consists of various offers and
discounts which are offered by the organisation. The aim of conducting different promotional
activities helps in increasing the productivity as well as profitability of the organisation. These
activities can be easily visible to the customers as they are often conducted on different platforms
(Stone, 2020). The organisations also provides various discounts and offers to the customers
which helps in gaining more number of prospect which can easily converted to customers. In

context to TESLA, they uses various promotional activities to attract the customers for selling
their products which are mentioned below-
At customer facing touchpoints:
Touchpoints is considered as that place where the sharing of informations and providing
services to the customers takes place. It covers from starting to end journey of the customers.
The touchpoints can be done at places such as stores, offices, reception areas and many more. In
context to TESLA, the touchpoints of their company is their showrooms where the customers
can interact with the organisation in which they exchange informations about the company and
its offering along the interest of buying their commodities.
In external spaces:
It is the type of promotional activity which includes promotion through advertising, billboards.
This promotional activity is conducted in external space where the public can easily recognise
the offering of the organisation. Advertising is considered as the means of communication with
the customers for products and services. These are the paid messages which is communicated to
the people for creating awareness about the organisation and their offerings. These advertisings
are done on televisions, magazines, billboards and many more (Piskoti, 2021). Billboards are the
large boards in which its advertise the offerings of an organisation and they are placed at public
places to create awareness. With the help of billboards, a large number of customers can easily
attracted by it. It context to TESLA, Elon Musk never invests on the advertisements of their
offering and instead the company uses funds for the investing on their technologies which is used
in the vehicles. Events and experience marketing is a strategy used by the company to promote
their products through live events and experiences. This marketing strategy is used by the
company to promote in real time engagement or live promotion events. This marketing strategy
takes place at different online or offline events where CEO is the host of event. In context to
Tesla, company held various events for their customer for launching of their new products.
Word of mouth marketing is a process where consumer share their experiences and reviews
about the company's product and services (Beauchamp, 2019). This marketing is a result of great
experience from company and the use of their product and services and then telling everyone
about the same. This done through various public activities organised by the company. In context
to Tesla, company mainly focuses on word of mouth advertising. The company believes to use
the advertising funds on improving their technologies as well as features of the products.

Organisation uses public relation to develop attractive brand image by highlighting unique and
interesting stories in the media or by press release. TESLA mostly uses public relations to boost
their popularity which is the supercharging stations on highways that Tesla branding all over
them. Even restaurants, hotels and mall also have Tesla branding. Interactive marketing is
considered as a two way communication process where consumers and organisation can directly
communicate to each other and it is also known as triggered- based or event-driven marketing. It
has been used in various digital advertising by conducting of quizzes, contest and giveaways,
polls and surveys and many more. In context to TESLA, they have customer forum and owner
club which allows them to build loyalty and passion for the brand. They have organise many
quizzes, contest, surveys for people to know about their audience and their taste and preferences
(Quinley, 2020).
Via digital platforms:
In this type of promotional activity in which the advertisement is done on digital
platforms such as websites, social media of the organisation. Website is a collection of all the
pages that represents the company's information along with new launchings as well as also
provides various offers and discounts to the customers. Social media marketing is a digital
platform to connect with audiences in order to build brand, increase sales and drive website
traffic. In addition to this, it involves publishing great content on social media profiles, listening
and engaging followers, analysing results and running social media advertisements. The major
social media platforms are Facebook, Instagram, Twitter, LinkedIn and many more. In context to
Tesla, it make use of several social media marketing strategies with an objective to reach large
number of people in less time period. Moreover,Tesla uses twitter for Customer engagement and
Customer service. At this point, using twitter as a customer service tool is effective and best
practice for organisation in order to maintain brand image, performance level and profitability as
well. Personal selling is considered as the traditional method of promotion which enables
customers to directly interact with the seller. This is the process of persuading customers to
purchase goods and services by providing information through presentations or face to face
interactions as well as it can also be done with the help of calls (Beg, 2019). In context to
TESLA, they make sure to take feedbacks from the customers about their products which helps
in making improvements in the productivity of the organisation.

Marketing that relies on direct communication or distribution to individual consumers
rather than through a third party such as mass media, mail, social media and texting campaigns
are amongst the delivery system used called direct marketing because it generally eliminates the
middleman, such as advertising media. In context to Tesla, unlike other car manufacturers who
sell through franchised dealerships. It has created an international network of company-owned
showrooms and galleries, mostly in urban centres. Tesla focuses on word of mouth advertising
and referrals. As of 2020, Tesla operates more than 130 stores and galleries in the united states,
and has stores and galleries in 34 other countries. It owns the stores and sells directly to
customers via the internet and in non-US stores. Sales promotion is considered as a short time
incentives given by the company to its customers in the form of discounts, free items and so on
which helps in increasing brand awareness to the people (Cook, 2020). This helps customer to
shop from their organisation as well as the organisation focuses on increasing the short term goal
of profitability with the help of attracting both new and existing customers. This method is
widely used in times of festivals on launching of new products. It also helps in gaining quick
attention to the product and its organisation in both new and existing market as well as allowing
the market for creating new product and gaining trust of sellers. In context to TESLA, they
launches different referral program in which it enables the customers to get awards each time
when the referral link is used by friends or family. TESLA also offers referral programs on both
of their products which is can be used by both customers and mates can win 1,000 miles of free
supercharging with purchase of new Tesla car. It also gives a chance to win another car from
Tesla. Both solar panels and roof have referral link which when used, one can earn $100 awards.
Through third parties:
In this type of promotional activity, the marketing is done with the help of third parties
such as news articles of analyst reports. The third party strategy includes the all the informations
for making customer aware about the products and services. The news articles includes the
current news of the organisation as well as about its offerings for creating awareness to the
people. TESLA do limited advertisements in which their main focus is on utilising their funds on
improving the technologies and services which they are providing (Dubey, 2019).

Task 2
Marketing theories
Marketing theories says that all the commodities should be present to customer in such a
way that it attracts them and generate desire to buy that leads in increasing of the productivity
and profitability to the organisation. There are various marketing theories that is used by TESLA
that helps in increasing their sales are mentioned below-
AIDA Model:
AIDA Model was given by American businessman E. St. Elmi Lewis in 1898 which
describes the different phases that a customer goes while purchasing a product (Farhat, 2019).
This model is used by marketers for planning of the marketing communication strategy. It
considered as a purchasing funnel where the buyers go to and fro at each phase and make the
final decision to purchase. AIDA model is commonly used in digital marketing, public relations
campaigns and also for sales strategies. The aim of this model is to analyse the customers
behaviour which creates direct impact in the productivity and profitability of the organisation. In
context to TESLA, AIDA model is used for understanding the decision-making process of the
customers for making a purchase which is mentioned below-
Attention: This is the first stage of AIDA model in which the customers are being
attracted by creating awareness about the products that are offered by the organisation. It is the
cognitive stage of customers in which they are started to develop interest in the product and this
stage is triggered with the help of advertisements. In context to TESLA, they are using various

advertisement methods for promoting their offerings such a social media, direct marketing which
helps in creating awareness to the customers (Handwerk, 2020).
Interest: After the cognitive stage, the customer goes to the interest stage where the
affective phase takes place that leads customers to develop interest in the product and develop
preference for it. The organisation make sure to increase the interest level by providing more
description about the product. In context to the selected company, they apply their way of doing
developing interest such as launching of autopilot self-driving technology cars which are the
most popular cars the feature of autopilot self drive is unique which attracts customers and also
develop interest for knowing more about this technology.
Desire: When customer get to know about the product information and their benefits, the
organisation make sure to develop the desire in the customer to purchase the product. They
invoke the desire of the customers to buy by telling about the use and advantages of the product
and also apply various techniques for developing the desire of the customers. In context to the
selected organisation, they present their products in such a manner that it attracts customers.
Their autopilot self driving cars are the most attractive and popular vehicles in which the people
have developed their desire for getting more about the car and its features as well as desire to
purchase the car.
Action: This is the final and behavioural stage of AIDA model in which the customer
getting all the information about the products and the desire for buy, they finally take the action
for purchasing the product (Johnston, 2020). Also advertisement can triggered them for
purchasing by applying the urgency to buy from providing various offers and discounts for a
limited time period. This strategy invoke the customer to buy immediately from the
organisation. In context to TESLA, the customers has already the desire for the self driving cars
and finally take the action of purchasing the car. The features, use and benefits provided by the
car make the customers attracts that invokes them to buy.
Evaluation of effectiveness
TESLA focuses on advertising with the help of social media and work of mouth which
makes the customers to purchase their products and services. This help in increasing in the sales
of TESLA. AIDA model helps in analysing the buying behaviour of the customers as well as
their decision-making while purchasing the products.

Push and Pull strategy
Push and pull strategy is a marketung strategy which is used in increasing the efficiency
of the business (Karanasios, 2019). This strategy is widely used in marketing management which
helps marketing managers for making their brand visible. In context to TESLA, The push and
pull strategy is mentioned below:
Push strategy: Push strategy is considered as pushing of brands to the customers for
creating awareness about the products and services that they offer. They use various methods for
for promoting their commodities. This strategy is the most commonly used strategy for making
the brand visible to the customers and helps marketing manager in attracting the customers that
leads in increasing the value and image of the brand as well as organisational. In context to
TESLA, they mainly promote their products and services with the helps of social media, direct
marketing and word of mouth. The company believe that promotion is already taken place as if
have products which are having unique feature. The amount for advertising is used for
developing of the organisation and for its offerings as well as in improving the brand image.
Social media helps in catering of people in large number. Elon Musk is very much influence with
social media and take interest in using of it. He himself twit on Twitter to interact with the
audience. He make sure that the people who are facing issue can be resolved here (Lawrence,
2020).
Pull strategy: Push strategy is the business formulating strategy which will automatically
attract consumers interest with the help of creative content towards brand and goods. This
strategy will work when the company has already placed its strong brand in the market. The
organisation doesn't have to force the brad on the people. Marketing manager focuses on creating
attractive content for the customers. One of the major disadvantage of this marketing strategy is
that they already have their target customer base customers in which they cannot reach to more
broad customers (Menon, 2020). In context to the selected company, they are considering to add
new feature to the vehicles that can help in increasing their market shares.
From the above discussion, it can be concluded that company is following their
promotion techniques which helps in increasing their productivity and profitability. The
organisation is focusing on the pull strategy as the company have already established their brand
among the customer and also they have wide range of customer base across the globe.

The above figure shows the TESLA vehicle sales from 2017 to 2020 which shows the TESLA
model X and model S has constantly maintaining its sales while TESLA Model 3 rapidly
increases from 2018. This shows that TESLA Model 3 is popular in the market which also leads
to increase in the productivity and profitability of the company.
(https://cleantechnica.com/2021/01/01/troy-teslike-estimates-502692-tesla-sales-in-2020/)
CONCLUSION
From the above discussion, it can be concluded that marketing has an essential role in
creating awareness about their offerings. They uses various marketing strategies and methods for
promoting their product and services. For promoting their offerings, they uses different platforms
such as online and offline mode. In this report, it covers the various promotional activities that is
used by the organisation through different online and offline modes such as customer facing
touchpoints in which the customer and organisation interaction takes place for exchange of
information and it performs on many places such as stores, offices and reception areas.
Promotional activities can also be performed on the company's website and on social media.
Social media helps in catering of people in a large number that leads to communicate and create
awareness about the products and services. Along with this, third parties is also used for
promoting with the helps of news articles and analysts reports. It also includes the two marketing

theories that is used by the company such as AIDA model and the communication process which
helps in analysing the decision-making process of the people while purchasing the product.

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https://cleantechnica.com/2021/01/01/troy-teslike-estimates-502692-tesla-sales-in-2020/