Marketing Analysis of Tesla: Environment, Segmentation, and Mix

This report provides a comprehensive analysis of Tesla's marketing principles. It begins with an introduction to marketing and its importance for organizational growth, using Tesla as a case study. The main body is divided into three sections: the first section focuses on the marketing environment and planning process, utilizing a PESTEL analysis to examine political, economic, social, technological, environmental, and legal factors affecting Tesla's operations. The second section explores Tesla's segmentation, targeting, and positioning (STP) strategies, differentiating between B2B and B2C approaches and detailing Tesla's segmentation criteria, target market, and brand positioning. The third section delves into the marketing mix analysis, covering the 7Ps of marketing (product, price, place, promotion, people, process, and physical evidence) as applied to Tesla. The report concludes by summarizing the key findings and their implications for Tesla's marketing success.

Principles of
Marketing

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Section 1 – Marketing Environment and Planning Process 1K.............................................3
Section 2 – Segmentation, Targeting & Positioning..............................................................6
Section 3 – Marketing Mix Analysis......................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals...............................................................................................................11

INTRODUCTION
Marketing is one of the essential functions of an organisation. It is seen that a successful
organisation always follows a proper marketing principles that help them to attain growth. With
the help of marketing the company is able to capture market and spread information related to
the latest technology and innovation used by them (Demirkan and Demirkan, 2017). In this
report there is discussion related to principles of marketing in relation to Tesla. It is an American
electric vehicle organisation that it is famous for innovating its business. The aim of company is
to produce more and more electric vehicles and satisfy the needs and wants of customer. The
company was founded 17 years back in 2003. In this in this report there is discussion related to
the environmental audit in the form of Pestel analysis for the electric vehicles. Along with that
there is dispersion related to the segmentation targeting as well as positioning strategy that is
adopted by the base is and how it helps the company. In the end of this report there is dispersion
related to marketing mix analysis of the company.
MAIN BODY
Section 1 – Marketing Environment and Planning Process
Marketing is one of the prominent functions and the basic aim is to be customer focused.
The organisations always focus to cater the needs and wants of customer by conducting effective
research. All the products and services that are offered by the company to its customers are based
on their preference and choices. The company aims to satisfy the customer’s needs and wants
and make all the decisions according to their target market (Nugroho and Fitriany, 2019). The
market orientation company value its customer needs and wants and keep them at priority. There
is direct impact of macroeconomic factors on the performance of a company. To identify and
analyse the marketing of the organisation Pestel analysis is done. So here is Pestel analysis in
relation to Tesla:
Political factors: It is vital to note that the policies are formulated by government and it is
important for organisation to follow them essay help to enhance their performance and earn more
revenues. It is seen that Tesla being a company in automotive industry follows the rules and
regulations of Government and that helps them to work effectively. It is noticed that the
company is getting opportunity in relation to the incentives of government for the electric
automobiles. The company is getting Full support of government that helps them to work

effectively. There are new trade agreements that are formulated and that are positive for the
electric vehicle that also helps the company and in the end it is important to note that political
stability also helps Tesla to operate effectively and earn good revenues that helps to strengthen
their financial position.
Economic factors: It is important to note that the changes in currency the market growth
the demand and supply the inflation rate employment rate in the industry and the market
environment of the business have a direct impact on the position of the company. It is seen that
there are various opportunities that are available in the market for electrical vehicles. So it is
important to consider economic factors as also contribute to success as well as may lead to
failure of the business. In relation to Tesla it is seen that the company is able to you take it as an
opportunity as the battery cost is decreasing day by day and that helps them to economically
make their electrical vehicles (Bhavani, 2020). Nowadays government supports renewable
energy and the cost is also decreasing so it is also a positive factor for Tesla and that helps them
to enhance their performance. The company is able to enhance its business also in Asia as well as
Europe as the demand is high at these places.
Social factors: Social conditions means the trends that are going on in the market and it
includes the relation with customer’s employees as well as investors. It is seen that the
management of Tesla always formulate strategies that help them to enhance the profit. It is seen

that now the customers are referring renewable energy resources and they are switching towards
electrical vehicle that invent opportunity for them to produce more vehicles and become
successful (Donatella, Haraldsson and Tagesson, 2019). At the same time the people also spend
more on quality products and Tesla is famous for their quality so that is also opportunity for the
company. Nowadays people are using low carbon lifestyles that are also a point of motivation for
the company and this helps to enhance the wealth distribution of the company at the same time.
Technological factors: It is seen that technological factors mean the use of latest
technology and its impact on the business. Here it is important to note that Tesla is famous for
using the latest technology in bringing innovation in the market. It is seen that the company has
provided automatic man energy solutions to the customers with the help of technology. It is
important to note that the technology changes at a higher rate but in relation to Tesla It is seen
that the company takes it as an opportunity and use that updated technology to find solution for
the problems of customers and it helps them to achieve success. It is seen that there is increasing
popularity of online systems and this is also helpful for the company. Tesla has taken opportunity
and uses these technological solutions to formulate electrical e vehicles that are in demand in the
current scenario.
Environmental factors: It is seen that the global business also takes into consideration
the environmental factor and it is one of the important points that is considered under Pestel
analysis. In relation to Tesla the company always use environmental programs and is famous for
or their campaigns that help them to achieve success and growth (Kozák and Szántó, 2017). It is
also seen that nowadays people are trying to enhance that standards and reduce waste and Tesla
is also following the same principle that is helpful for company in relation to using electric
vehicles as well as batteries. The company is using solar panels and that directly shows the
sustainability of their business and their environment friendly products
Legal factors: It is seen that laws and legal systems also form an important part of
managerial decisions. In relation to Tesla the company expand its business and takes a patent
protection that helps them to work effectively. The company always uses the energy
consumption regulations and that is also effective for their business and enhances its sales as
well as help management to take effective decisions.
Marketing Mix

It is important to note that in the starting there were 4P’s that produced by business and that
work product price place and promotion. All these held the business organisation to formulate
strategies and perform effectively in the market (Javanmard and Ojaghi, 2018). It is seen that but
due to the enhancement of service industry now the marketing mix has been extended and now it
has become the 7 P's of marketing. It is important to note that a business organisation should
have knowledge of all these pieces that help them to attain success and satisfy the needs and
wants of customers in an effective manner. Below is the name of the entire 7 P’s that must be
followed by an organisation for its success and growth.
 Product
 Promotion
 Price
 Place
 People
 Process
 Physical evidence
Section 2 – Segmentation, Targeting & Positioning
B2B means business to business and at the same time B2C means business to consumers. It is
seen that there is distinction between the patterns of their segmentation of business. It is seen that
the B2B businesses sell the products and services through a direct way to other businesses. They
do not have to focus on the custom words they directly make decision to sell the products and
services to another business organisation. In relation to be to see the product is directly sold to

the customers for their personal use. The use of middle man in between is eliminated from this
process and they have to deal directly with the customers.
STP
STP is a process that is used by a business organisation to select the target customers that
will be served by a business organisation and at the same time positioning the product in such a
manner that all of them are attracted towards the product or service offered by the company
below is description related to the STP approach used by Tesla:
Segmentation includes dividing the population into small groups as per their characteristics such
as social status psychological needs age income accept (Coleman, 2019). At the same time
targeting involves the small groups that are formulated from segmentation and then selling the
end products to them. In the end, positioning in selection of the best marketing mix so as to
create a good position of the brand in the minds of customers.
Segmentation: In relation to Tesla It is seen that the company is in automotive business and
generally sells the electrical vehicles. The company has various criteria through which they
segment their market one of them is age along with that they also considered gender. Life style
of the people is also a segment.
Targeting: It is process of selecting among the best group of candidates. It is seen that the age
group that is selected is the people of age group above 30. The male members are also included
as they use cars more (Eitzman, 2019). The people that are living a high life style are also
targeted by the customers.
Positioning: The Company has formulated strong image and that is related to innovated products
and use of latest technology. It is seen that the company has long range of vehicles and they sell
less expensive.
Tesla is one of the famous companies in automotive industry that formulates electrical
vehicles. It is seen that by establishing strong image in the market the company is able to
position the products in the market.

There are various benefits of this approach to the business organisation are as follows:
 It helps to understand the needs and wants of customers and work effectively.
 It is seen that it helps to enhance sales of the company and at the same time serve the
needs and wants of customers. It helps to position the product in an effective manner.
 It is also helpful in identification of gaps in the market.
 It is also helpful to avoid wastage of money with the help of advertisement. It is seen that
it enhances the advertisement in the market.
 It is good and effective measure that helps to formulate strategies that will be helpful for
the organisation.
Section 3 – Marketing Mix Analysis
It is important to form strategies with the help of marketing mix. It is seen that the company
if is able to know the strategies. These strategies will help them to serve the customers in an
effective manner.
Marketing Mix
Product Tesla is market leader of manufacturing battery powered electric
cars food stopped It is seen that the company manufacture electric
cars that have batteries. They deal in electric vehicles that one of
the demanding product at the present scenario. The launch luxury
cars that have auto pilot facility. They provide quality goods and
services to the customers as per their needs and wants and they are
also famous for innovative product.
Price There is use of highly sophisticated technology in the products
offered by Tesla the company has premium pricing strategy
(Raweh, Malik and Hashed, 2021). It is seen that there is a good
expenditure of company in research and development as compared
with the competitors It is seen that the price range of the cars is
high as they are providing quality goods and as well as they are
taking care of the needs and wants of customers. Pricing strategy
plays a vital role and is beneficial for them to provide the goods to
luxury customers.
Place It is a US based company and there is various numbers of cards

that are supplied by them. The company deal and electric cars and
is new innovative idea. The company is planning to expand the
operations.
Promotion It is seen that the company uses unique strategy to enhance its
sales in the market It is seen that company has attained the loyalty
of customers and they are able to attract and serve more customers
(Lennox and Wu, 2018). It is seen that the company has presence
over various online platforms that also helps them to work
effectively. The company has gained positive image in the market
and which help them to promote and attract more and more
customer.
People The employees of the organisation play a vital role. It is seen that
the motivated employees that are provided effective training are
able to achieve the goals and objectives. In relation to tesla the
workers are highly skilled and they try to complete all the work
assigned to them on time. Along with that it is seen that there is
value provided to the employees this helps them to work
effectively and achieve the goals and objective on a timely
manner.
Physical Evidence It is important to measure the satisfaction level of customers. It is
seen that after the purchase of service customers are satisfied or
not It is seen that in relation to Tesla the company always takes
feedback of the customers and try to identify that they are
satisfied. It is seen that they provide after sales services to the
customer and always try to cater the need and want for their
success (Asthana and Kalelkar, 2017). The company provides
technical support to its customers and is ready to solve the
problems through online mode as well.
Process The delivery of a product or service to a consumer is referred to as
this phase. Functions, tasks, activities, and processes must all be
mapped out. This ensures that all procedures run smoothly and

efficiently. Check the procedures on a regular basis to ensure that
they are straightforward and effective in generating revenue. This
process could involve a lot of trial and error.
It is seen that the company is able to establish strong image in the market and that helps
the company to work effectively. All these marketing mix components help them to form
strategies that are vital to be followed by the company. It is the reason success and growth of the
company.

CONCLUSION
From the above report it is seeing that by following principles of marketing a company's
able to attain growth. It is seen that becomes vital for the organisation to have proper
understanding of the market and the environment they work in so as to deal with the challenges
that come in path. At the same time there is dispersion related to the macroeconomic factors that
have impact on the working of organisation. It has been identified that a company should formed
strategies and help them to work according to these macroeconomic factors. After that there is
discussion related to the segmentation targeting and positioning strategy that is used by the
company and the manner in which it helps them to attain success. In the last section of the report
there is evaluation related to the marketing mix followed by company in relation to electrical
vehicle.

REFERENCES
Books and Journals
Asthana, S. and Kalelkar, R., 2017. Client-based measure of the audit office
reputation. International Journal of Accounting, Auditing and Performance
Evaluation, 13(2), pp.199-226.
Bhavani, G., 2020, July. Artificial Intelligence: Simulations in Audit Education. In 2020 11th
International Conference on Computing, Communication and Networking
Technologies (ICCCNT) (pp. 1-5). IEEE.
Coleman, I., 2019. A Strategic Audit of Oriental Trading Company.
Demirkan, S. and Demirkan, I., 2017. The strategic role of non-audit services in audit
markets. Journal of Accounting and Finance, 17(3), pp.42-53.
Donatella, P., Haraldsson, M. and Tagesson, T., 2019. Do audit firm and audit costs/fees
influence earnings management in Swedish municipalities?. International Review of
Administrative Sciences, 85(4), pp.673-691.
Eitzman, A., 2019. A Strategic Audit of Microsoft.
Javanmard, E. and Ojaghi, H., 2018. Small Audit Firms and Earnings Management. Accounting
and Auditing Research, 10(40), pp.181-194.
Kozák, T. and Szántó, S., 2017. The Audit of Business Strategy. Economics, 5(4), pp.316-321.
Lennox, C.S. and Wu, X., 2018. A review of the archival literature on audit partners. Accounting
Horizons, 32(2), pp.1-35.
Nugroho, B. and Fitriany, F., 2019. Impact of Abnormal Audit Fees on Audit Opinion and
Quality in ASEAN Countries. Pertanika Journal of Social Sciences &
Humanities, 27(2).
Raweh, N.A.M., Kamardin, H., Malik, M. and Hashed, A., 2021. The association between audit
partner busyness, audit partner tenure, and audit efficiency. Asian Economic and
Financial Review, 11(1), pp.90-103.