Principles of Marketing Report: Tesla Motors, Segmentation, and Mix

This report provides a comprehensive analysis of Tesla Motors' marketing strategies. It begins with an introduction to the electric vehicle market and the company's position within it, highlighting the importance of sustainability and environmental consciousness. The report then delves into marketing planning, emphasizing its role in achieving company goals, followed by a PESTEL analysis to assess the macro-environmental factors influencing Tesla's operations. It examines political, economic, social, technological, environmental, and legal factors. The report further explores the importance of the marketing mix, including product, price, promotion, place, process, people, and physical evidence, in creating customer value and competitive advantage. Additionally, it details Tesla's segmentation, targeting, and positioning strategies, focusing on the premium and luxury electric vehicle segments. The report concludes with a discussion of Tesla's marketing mix, providing insights into how the company applies these elements in the context of the electric vehicle market.

Principles of marketing
report.

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Importance of marketing planning............................................................................................3
PESTEL analysis......................................................................................................................3
Importance of marketing mix....................................................................................................4
TASK 2............................................................................................................................................4
Segmentation:...........................................................................................................................4
Targeting...................................................................................................................................4
Positioning................................................................................................................................4
TASK 3............................................................................................................................................4
Marketing mix in context to Tesla motors................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Electric cars are very popular nowadays as the awareness about sustainability and environmental
degradation are growing rapidly. People wants to buy things that are sources ethically and
sustainably. The things that are providing no or minimal damages to the environment are in
trends and electric cars are one of them (Adie, B.A., 2019.). They are exceptionally good as they
are not producing any type of pollution, they are fast, they do not product carbon footprints, etc.
Their is a less competition in this market as their are limited number of companies that are
providing such type of electrical vehicles. In context to Tesla Inc., they are an American clean
energy and electric vehicle producers. The company was founded by Martin Eberhard and Marc
Tarpenning. The company was incorporated on 1st July 2003. The industry in which company is
serving is of automotive, battery energy storage, solar energy generation. The company has
around 70757 employees and has revenue of approx $31.536 billion. The company has 7
subsidiaries and are serving in more than 35 countries. In this report, the importance of
marketing planning as well as marketing mix is given. Also the analysis of macro environment
factors that can affect the operations and management of the company are given. The report will
also provide segmenting, targeting and positioning strategies of the company. At last the
marketing mix that the company is using is given.
TASK 1
Importance of marketing planning
The marketing planning defines the responsibilities and roles of marketing executive in a way
that can help the company in fulfilling its goals and objectives. The planning emphasis on
creative allocating of marketing resources in the best possible and most economical way. It
involves planning in advance for the various functioning and activities of marketing such as
programme, budgets, policies, campaigns that can help the business in attaining its goals related
to marketing of the offerings (Beals, R.L., 2020.). Today consumers are emotional, confused and
complicated, the company have to make sure that their marketing is powerful and is able to make
the consumer buy the product as the decisions of the consumers nowadays are backed with
subjectivity and not with objectivity.

PESTEL analysis
These are the factors that tells the company about the external marketing environment or the
macro environment of the company.
Political factors: It refers to the factors that helps the company in determining the degree of
interference of government in the industry or in the free market in which the company is going to
operate. These factors are needed to be analysed by the company if they are targeting or entering
any new market. It includes government policies, instability in overseas market, foreign trade
policies, political stability, tax policy, environmental law, labour law, restrictions and so on.
Political factors have a powerful impact on the companies and their business (Chaffey and et. al.,
2019.). The companies that are entering any new market must analyse these factors in order to
make the workings and the marketing strategies of the company according to the current and
anticipated future legislation. In context to Tesla, government is providing support to the electric
vehicles and encouraging people to buy electric vehicle by providing specific tax credit.
Economical factors: These are the factors that are the determinants of the economic
performance of any economy. While entering any new economy the company have to make sure
that they analyse these factors with utmost care. These factors have an impact on the business as
well as on the profitability of the company. In includes economic growth, exchange rates,
inflation, interest rates, disposable income of consumers, etc. In context to Tesla, the electric car
sales have risen as the increment in global economy. It is projected that the world will grow by
3.5 percent with the increase in the sales of electric cars.
Social factors: These are the factors that are related to the society in which the company is
operating. It is important for the company to work according to the culture, norms and rules of
the society. These are the factors that includes the shared attitude and beliefs of the population. It
includes age distribution, population growth, career attitude, health consciousness, etc (Cornwell,
T.B., 2020.). In context to Tesla, they are providing perfect option for those customers who are
looking for eco-friendly products. The population are more and more focused towards
sustainability and increment in the prices of fuel has been an advantage for the company and its
products.
Technological factors: These are the factors that helps the company in getting knowledge about
the prevailing technology in the industry in which the company is going to enter and about the
technology that the competitors already have. It includes upgradation of technology in context of

producing goods and services, distribution process of the company, communication process with
the target market. In context to Tesla, they have a easy entry into AI technology and information.
The technological factor for Tesla has always be challenging as the company have fuel efficient
and sustainable ways by which the company is having a competitors advantage in the market but
it doesn’t take too much time for the technology to become obsolete. The technology is
continuously changing and the company have to become more and more creative every time they
think of innovation.
Environmental factors: These factors have come into light recently with the growing awareness
of people towards environment and towards sustainability. These factors have become Important
due to the reasons such as scarcity of raw material, carbon footprints, pollution target,
government regulations, etc (Crick and et. al., 2021.). The people are demanding more and more
products that are sourced ethically and from sustainable sources. In reference to Tesla, these
factors are one of the biggest strengths of the company as they are providing environmental
friendly electrical cars that uses natural resources rather than fuel and barely impact carbon
emission.
Legal factors: It refers to the factors that are related to the rules and regulations of the country
ion which the company is operating. In order to trade successfully the companies have to make
sure that they are following all the rules and regulations of the respective countries in which they
are operating. All the countries have their own rules and regulations and in order to do business
the companies have to make sure that they are complying with rules. It includes health and
safety, equal opportunities, consumer rights and laws, advertising standards, rules related to
product safety and labeling of the product. In context to Tesla, they are expanding into other
markets and they must have a proper knowledge about the international laws, if not they may
have to face legal issues. The company have an advantage as they can promote their cars as
energy efficient and can abide by international environmental regulations.
Importance of marketing mix
These are the components that are very important for the company as these elements will help
the company in providing variable that can create value (Del Chiappa and et. al., 2018.). Also
these components will help the company in having competitors advantage over competitors in
the market or in the industry. The elements are as follows:

Products: These refers to something that can satisfy the needs of the consumer. These are some
unique design things that have value proposition when the company sell them. These goods are
tangible in nature and the differentiation that they possess will help the company in satisfying
customers needs and provide competitors advantage in the market.
Price: The price decision is one of the most important decision that the company takes in regards
to the offerings of the company (Franco Valdez and et. al., 2018.). It totally depends on the value
of the products and the ability and willingness of the consumer to pay. It represents the monetary
value of the product or the services that the company is offering.
Promotion: The company uses promotion and communication channels in order to inform and
influence consumers about the products and encourage them to buy the offerings. It includes
advertising , public relation, sales promotion and marketing through offline and online platforms.
It will help the company in attracting potential customers and will help in having a wider reach.
Place: It not only refers to the location of the company but also include the availability of the
products of the company on the right time and on right location. In order to be successful in this
element the company have to make efficient distribution channels and must have effective
collaboration with retailers.
Process: It refers to the steps or series of actions that the company have to follow in order to sell
their products to the consumers (Ghosh, D. and Scott, B., 2018.). These are important as without
right process the company will be unable to provide efficient services to the consumers in
effective way.
People: These refers to the staff, employees or the sales person who interact with the consumers
and work for business. They serve to the customers and help the company in building trust
among the customers.
Physical evidence: These are the tangible element which satisfy the needs and wants of the
customers and have some value. These are the additional features that can convert the experience
of the customers into exceptional from normal.
TASK 2
Segmentation:
This refers to the division of the population according to their age, income, social status,
psychological characteristics, etc. The company is segmenting their products on the basis of

people ho are looking for premium sports or luxury cars within electric segment. The company is
providing pure electric rides but with still being luxury and sporty.
Business to business
Lifestyle: The company is dealing in business to business segment on the basis of lifestyle the
the people are having (Kanter, R.M., 2019.). The company make exclusive segment of the people
who are living a luxurious lifestyle as the business that are having good lifestyle will only be
able to purchase the products of the company because of their high prices.
Income: As the offerings of the company are expensive and their is no intense competition in the
market which can provide a threat to the company it is natural for the company to segment their
market on the basis of the income of the consumer or the businesses.
Business to consumers
Demographics: The most important thing on the basis of which the company can target its
customers are on the basis of demographics (Koinig and et. al., 2020.). The demographics
includes age, income, social status, geographical region, etc. As the company is providing sports
and luxurious cars it is natural for the company to do segmentation on this basis.
Targeting
It refers to choosing a specific group or segment of consumer which the company is going to
target in order to promote and sell their products. These are basically the segment of potential
customers or the customers who are willing to purchase the product. Mostly the electric vehicle
and the other products of the company are expensive and which is why the company always
target wealthy individuals and households that are able to pay expensive prices for the offerings
of the company. The products of the company are sometimes taken to show off the social status
by the consumers (Kumar, V., 2018.). The tagline of the company is “burn rubber not gasoline”
which is very efficient and is able to attract a large segment of consumer that are looking for
alternatives with abilities that are exactly same or even better than fuel vehicles. The company is
successful in making fully electric cars and vehicles in house and are able to target the segment
of the consumers that can pay high and expensive prices for the offerings of the company.
Positioning
It refers to the selection of the most suitable marketing mix for the targeted segment of the
company. The company have to produce their marketing mix according to the characteristics of
the segment of consumers that the company is planning to target. Tesla uses mono segment

positioning, as they target those individual who are concerned severely about the environmental
damages that are made by traditional fuel vehicles and are concerned about the heavy
consumption of oil and gas which are creating negative environmental implications. Tesla are
planning to move from mono segment positioning to multi segment positioning which can be
extremely beneficial for the company as they will be able to make affordable cars and be able to
target the other segments of the market (Li and et. al., 2018.). Eventually the company will be
able to capture a bigger market share in the industry. Tesla is also using anticipatory type of
positioning. In this type of positioning the company position its services and products in the
market of electric automaker in order to serve to the segment of customers that has low turnover
with an anticipation that their turnover is going to increase in the near future. By positioning its
services and products well the company is achieving its goals and objectives effectively.
TASK 3
Marketing mix in context to Tesla motors
Elements Electric/hybrid cars
Product The company offers fully electrical vehicles,
storage systems and energy generations. The
company’s products is aimed with an idea to
provide fast and cool electric cars to the
consumers. The company offers power stations
to the consumers so that they can charge their
electric vehicles on the road (MacKenzie, L.,
2021.). The company offers Model S, Model
X, Model 3, future consumers and commercial
EVs in terms of vehicles. The company is
providing alternative fuel solutions to the
consumers which as sustainable and eco-
friendly as well as fast and cool. The
technology that the company uses in order to
make their batteries are uniquely designed and
are able to achieve high density of energy with

comparatively lower cost, safety and
durability. Apart from this the company also
provide dual motor power train, power
electronics, infotainment and control software
but the most amazing one is autopilot system.
Price The company has an expensive pricing strategy
but it is totally according to the willingness of
the consumer to pay. The consumer or the
potential customers of the company are willing
to pay higher prices for the electric vehicles of
the company as they are an exceptionally good
alternatives for the traditional fuel vehicles
(Nishtar and et. al., 2018.). The company
follows the pricing policy different from
geographical pricing strategy. The company
always have similar pricing strategy
irrespective of the geographical location. The
company has standard prices all over the places
but the prices may differ on the basis of the
exchange rates and import duties.
Place The company offers their products on online
platforms as well as company owned
showrooms. The galleries and stores of the
company are premium outlets and are highly
visible. The company has its presence in major
metropolitan cities and the company sell their
products trough direct and their own networks
instead of dealership networks (Nurhayati, T.
and Hendar, H., 2019.). The company has its
presence in US as well as in 35 other other
countries worldwide. The customers of the

company can have a full list of products of
Tesla such as galleries, stores, service centers
and superchargers on the official website of the
company.
Promotion The company does not follow any traditional
promotion or marketing techniques. The
company have never appeared on television,
banners or radio for their advertisement. The
CEO of the company believes that the
consumers that are able to purchase the
products of the company will not have time to
watch television or listen to radio
(Papadopoulos and et. al., 2019.). The exact
promotion of the company is through word of
mouth and sales margin. The CEO of the
company Elon Mask is a exceptional
entrepreneur with powerful knowledge and
charming words, is successfully generating
huge publicity for the company. The presence
of the CEO socially is enough as compared to
all the promotional efforts of the competitor’s
company.
Process The company has a specialized systems
installed in all the company owned stores and
galleries which can automatically notify the
company about the inventory level of the store.
This helps the company in providing stocks to
the stores and because of this the products of
the company are always available to the
customers when needed (Park, S., 2020.). The
company is actively involved in market

researches about the opportunities that can help
the company in growth and in understanding
the needs of the customers.
People The people who are working under the
company plays a vital role in the marketing
activities and the success of the company. The
staff of the company has been trained
persuasively and always show respect to the
consumers irrespective to the preferences of
the customers. The people who are working in
the customers services department are specially
trained to be patient and to make sure that they
are able to resolve the issues of the customers
24/7 (Szablewska, N. and Kubacki, K., 2019.).
People and staff is the most important resource
that the company have. It is important for the
company to make sure that they have talented
and hardworking employees which can
effectively and efficiently contribute the the
success of the company and can make sure that
the company is moving towards its goals and
objectives.
Physical evidence These are the elements that are able to satisfy
the additional needs of the consumers with the
help of their features. The company provides
additional services with every purchase of the
product of the company which makes sure that
the consumer have delightful experience while
dealing with the company (Wilson, J.H. and
Spralls III, S.A., 2018.). The products of the
company have various additional features that

provide satisfaction to the consumers and make
sure that the experience that the consumer have
is worth every penny that the consumer pays.

CONCLUSION
From the above report it is concluded that it is important for the company to understand the
importance of marketing planning and marketing mix as it will help the company in promoting
their products and services effectively. Macro environmental analysis is also very important for
the company while entering any new market or for existing market in which the company is
operating from time to time according to the report.

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