Principles and Practices of Marketing: Tesla Case Study Report

This report provides a comprehensive analysis of Tesla's marketing principles and practices. It begins with an introduction to marketing concepts, including the 4Ps of marketing and the marketing mix, and then provides an overview of Tesla as a company, detailing its products and market position. The main body of the report delves into Tesla's marketing strategies, examining its promotional mix, including advertising, public relations, direct marketing, and sales promotion. It also explores Tesla's use of social media and research techniques. The report further analyzes the application of marketing models, specifically the AIDA model, to understand Tesla's customer engagement and decision-making processes. The report concludes with a summary of findings and a discussion of Tesla's marketing effectiveness.

Principle and Practices of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Discussion of concept and knowledge of marketing and overview of company........................1
TASK 2............................................................................................................................................6
Models.........................................................................................................................................6
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Principles of marketing is basically referred as 4Ps of marketing matrix which companies
uses for their marketing strategy. There are generally four principles of marketing which are
product, price as well as promotion which are interconnected as well as work together. Principles
of marketing is also referred as marketing mix of company. Whereas marketing practices is
defined as a task or operations of carrying out marketing activities through a process(Alqahtani
and Uslay2020). This report is based on marketing principles as well as practices of Tesla, which
is an American electric vehicle as well as clean energy based company. As company is dealing in
selling electric cars, battery energy storage from home to grid scale. This report includes about
concept of knowledge of marketing as well as over view of company,models along with its
conclusion.
MAIN BODY
TASK 1
Discussion of concept and knowledge of marketing and overview of company.
Overview of company:
Tesla Inc, is an American electric vehicle as well as clean energy company based in Palo
Alto, California. Company's selling products includes electric cars, battery energy storage from
home to grid scale, solar panels as well as solar roof tiles and other related products as well as
services( Beirman, 2020). Company is ranked as best selling plug in and battery electric
passenger car manufacturer with a market share of 16% of plug in segment and 23% of electric
segment of sales. Company was founded in July 2003 by Martin Eberhard and Marc Tarpenning
as Tesla Motors. As according Elon Musk motive of Tesla is to help expedite for moving to
sustainable transport as well as energy which is obtained by electric vehicles as well as solar
power. Company began its production of their first car model Roadster in 2009.
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Illustration 1: TESLA' s HEADQUARTER
Marketing:
The idea as well as concept of marketing is large and broader which is to be considered
through proper considerations so that objectives are to be accomplished properly. In this
contemporary or competitive market it is essential to have knowledge about market as well as
principles on basis of which is easy to make decision as well as apply strategies. In terms of
Tesla company is playing a vital role in development of auto mobile sector as company focus on
having technology or advancement of software and hardware (Borders, and Lester 2020). With
increase and rise in competition, it has become more necessary to adapt knowledge as well as
skills of marketing so that goals could be accomplished well.
Marketing mix:
It generally refers to a combination or a set of tactics which are applied by company in
order to promote a brand or company. Through this approach it becomes easy for company to
increase business activities as well as effectiveness in a systematic manner. In order to apply this
method through a large range of information which is required so that it would be easy to make
decisions related to business. This strategical method consists of various elements that are as
follows:
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Illustration 2: Marketing mix
 Price: It is basically referred as a value of a thing or element that is put on a product. It is
difficult to keep focus on price of product so that it would be easy to perform out
exchange process in a systematic manner. In terms of Tesla, company keep their focus
on price of products for taking up an example there are various types of strategies that
are important to be used for pricing like skimming, penetration and so on. So in case of
Tesla it is implements premium pricing strategies as they target high income middle
class individuals as well as wealthier customers. Product: It is referred as first component of marketing in which item or thing which is
meant for having and generating sales. Tesla has different kinds of products line in their
auto mobile sector. With expansion of business as well as competition. Company and its
products line at larger scale. It also sold its cars equipment within market at affordable
prices.
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Illustration 3: Marketing mix of TESLA motors
 Promotion: It refers to component of marketing mix in which it focuses advertising,
promoting of products and services. It has been evaluated that is difficult to perform
promotion so that brand awareness should be increased for longer period at a wide scale.
In terms of Tesla, company implements social media tools as well as platforms which
have been a successful advantage in creating different campaigns like invisible cars that
helps in improving their company's goodwill.
Illustration 4: Promotion strategy of TESLA
 Place: This element of marketing mix is referred as a location from where distribution
is being carried or performed. It is important to keep focus on place so that customers
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will be easily accessible to product and service (Dahl, 2018). In terms of Tesla, which
operates at a global scale and has service centre as well as dealership that covers across
global limits. Company assures that it is easy for customers that they easily purchases
products as well as services of company. Tesla is carrying large number of suppliers
across globe which helps customers to access to its entity's services and products easily.
Illustration 5: TESLA 's cross border strategy 11 12_2015_final
Promotional mix:
It generally refers to a set of integration of components such as personal selling,
advertising, direct marketing as well as sales promotion. It is applied by company as well as its
marketers with a motive to communicate as well as accomplish goals with in a specific point of
time. In terms of Tesla, company uses promotional mix that helps company to reach to their
customers in easy or simplified way.
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Illustration 6: promotional mix
Advertising:
It is said to be an important element of promotional mix process as advertising refer to
an marketing communication which employs an openly sponsored, non personal message of
promoting or selling as product, service or idea. In terms of Tesla, company is applying effective
advertising techniques in their operations to promote their electric cars and generate profits.
Illustration 7: 15 Lessons to learn from Tesla's marketing strategy
Public relations:
It is said to building component of promotional mix in which company communicates by
different channels and in terms of Tesla, company is building their public relations in order to
assist them in establishing a communication towards customers in a systematic way(Fine,and
Rush, 2018) .
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Direct marketing:
It is said to be complex component of promotional mix. As in this method company
straightly communicates to public as well as customers to promote company's brand. Direct
marketing is referred as an effective form of technique that is applied for improving brand image
of company. In terms of Tesla, company uses only direct method of marketing to target specific
customers or when to invite them in campaigns.
Illustration 8: Marketing positioning TESLA
Sales promotion:
It refers to a kind of technique which is used by company with a motive of building sales
in company to have higher profits. In terms of Tesla, company applies this tools in a way in
which customers will be easily accessible and leads for creating sales as well as generating it in
an effective manner. From above it has stated that it is important for company to keep its focus
on performing promotional mix so that it will be easy for accessing to market and target
customers in an accurate way. It is also analysed that it is important to have proper and specific
knowledge related to techniques and tools so that advertising as well as promotion will be done
in a specific way.
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Illustration 9: https://electrek.co/2019/09/13/tesla-discounts-free-supercharging-end-of-the-
quarter-push/
Research techniques:
Research techniques relates with strategies which are required by the company in order to
attain the objectives in more effective manner through various techniques is that observation,
interviews, case studies related with company past experiences, questionnaire and participants
and non-participants observations and experiences (Gabbianelli, and Pencarelli,2020). Research
techniques deals in collection of data and information through different methods and tools
adding in it.
Brick & Mortar:
It is basically the street side business that will relates to offer the products and services to
their customers through face to face in their retail outlets and stores, basically to be physically
present during the time of interaction and selling of product and service. In relation to the
company like Tesla they are using this approach in large due to their increase in value of sale
they are taking decisions on serving and increasing the demand, they are hoping in relation to
expand their value of brick and mortar footprint in order to offers the consumers in large. They
are expanding their operations in mall space.
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Promotion through social media:
In this present scenario and flexible business, its quite crucial to use new advanced
technology to built something of new into business in order to compete with their competitors.
Social media plays an important role in making promotion aspect by any organisation more
effective. In terms of company Tesla, they are using social media platform on large scale is that
approximately 7 million fans are currently indulge with Tesla on their social media sites on
Instagram and Facebook too.
In external space:
Advertisement and promotion are the most effective source through which any
organisation will maintain their operations functions in serving their customers in large. In
context of company like Tesla they are not investing in advertisement as owner of this company
Elon Musk gives direction on their 0% Paid on advertisement, this company believes in
promoting their products through giving customers with excellent experience about their cars.
Illustration 10: http://panmore.com/tesla-motors-inc-pestel-pestle-
analysis-recommendations
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Via digital platform:
In today global market scenario organisation have to rely on digital platform as well so as
to provide awareness to their potential customers in large (Gesualdi, 2019). In relation to the
company Tesla they are using multiple digital platform through which they directs to their
customers is that Facebook, Instagram, you tube, Reddit and twitter.
Illustration 11: TESLA: How to build leverage social media to build a top brand
Through third parties:
Third parties indulgent in the organisation may relates with assist them in advertisement,
with some sort of investment help and in promoting the company as well. In relation to the auto-
mobile company like Tesla, they will going to use third party infotainment applications in future.
TASK 2
Models
In corporate business it is difficult to apply various models so that it will be easy for
company to adapt effective decision making of company. It has evaluated that it is critically
important for company to implement these models in business with systematic considerations so
that every element and thing would be carried in systematic manner(Lo, and Campos 2018). In
terms of Tesla, company implements these models with a motive of enhancing brand
effectiveness in corporate markets. It has been analysed that it is important to focus on marketing
goals that could be met implementing model which are as follows:
AIDA model:
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Illustration 12: AIDA model
It is referred to a model that is used by company to influence decision making of
companies in terms of buying of products. This model is useful as it helps in having
development of relationship of customers as well as company. Major advantage of using AIDA
model is to execute purchasing and selling process in a systematic manner. It has been analysed
that realising awareness of components which is beneficial for having development of products,
business expansion and market awareness. It has been analysed that it is difficult to focus on
examining how to reach to customers and their decisions. It consists of various types of elements
which are as follows: Attention: It is referred as a first component of AIDA model that focuses on creating a
need of customers towards product of company. It has been evaluated that attention is
necessary which is to be developed so that it becomes easy for company to create a
attention and place in corporate markets. As without creating and having attention it is
not possible to promote as well as market a product. In terms of Tesla, company could
have goodwill in market as well as individual will easily take interest in company. But
when new product as well as service which are to be launched, attended is created. Interest: This component of AIDA model is focused about building of interest of a
specific company. In terms of Tesla, company builds interest by marketing their brand
through social media and other digital media platforms. It is important to keep a focus on
building interest of customers so that it will be easy to adapt effective marketing
strategies are implemented in company. As by applying using of offers as well as
discounts will be easy to build interest of targeted customers.
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 Desire: This element of AIDA model that states about building of desire of customers
towards a company. As in terms of Tesla, company generates by implementing effective
campaign such as electric cars (Lunde, 2018) . It is difficult for company. It is difficult
for company to be well informed about wants as well as desires of customers on basis of
which it is easy to target customers through accurate use of strategies. It is a time
consuming process as there is wide range of information which is required to create
desire customers.
 Action: This component of AIDA model states about what are actual results of model as
well as activities that being used. In terms of Tesla, company could measure their action
model as well as activities by using metrics as well as strategies. As company's different
models are preferred by customers when it comes to buying. Company also have
effective sales team that has potential to deliver positive results. As to make actions
positively company has been engaging with various advertising campaigns which has
increased sales of company(Tollin and Christensen 2019). Manager of Tesla, generally
measures performance of sales by implementing KPI process indicators, output
indicators and so on.
Push & pull strategy:
Illustration 13: Push and pull strategy of Tesla
Push strategy:
In this type of strategy it states that customers try to push products as well as brand
awareness in minds of customers. In this strategy it carries main motive of attracting customers
towards a company. It has been analysed that using of this strategy makes it easy for company to
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increase as well as enhance customer base. In terms of Tesla, company uses push strategy like
creating websites of company which promotes its products as well as sales by offering of
discounts as well as offers.
Merits of push marketing strategy:
 There is a advantage of tactic which assist in developing and designing of positive
relations among customers as well as audience (Nargundkar, 2020). Main benefit of using this push marketing strategy is that it helps in capturing of interest
at correct place at right time which helps in development as well as increasing of
awareness of company image.
Demerits of push strategy:
 There is a disadvantage of tactic which could negatively impact on goodwill of a
company.
 It leads to have aggressive nature of a company as well as forcing individual top buy
products and services which are essential and advantageous for short but has negative
effect on long term brand value of company (Pandey, Nayal and Rathore 2020).
 This strategy is not viable for widening their customer base more as entity already has a
define set of customers and won't be fruitful in engaging individual about their target
markets.
Pull strategy:
In this strategy it refers to a tactic which is implemented for enhancing as well as
increasing demand for company's products as well as services. In this strategy main motive of
pull strategy is to pull customers towards a company so that it will be easy to products which are
sold with in markets in an easy way. In terms of Tesla, company is using pull marketing strategy
in there operations as it assist in accomplishing its competitive benefits.
Merits of pull strategy:
 It has analysed that this strategy helps in building a stronger bargaining power with
retailers as well as distributors. Pull strategy helps in generating good amount of interest among customers.
Demerits of pull strategy:
 There is a drawback of this strategy which states once market needs has been fulfilled it
new strategies are again required.
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 As because of involvement of middle class individuals they ask for having high financial
commission or promotion which could negatively affects company's goodwill(Saleh
Alkali and Hamidu 2018).
As from above strategies it has been stated that it is difficult to focus on various types of
strategies and tactics so that it would be easy to accomplish strategical aims in a systematic
manner. It is also been evaluated that it is essential to focus on growth as well as development of
business so that efficient output is being obtained appropriately. Both AIDA and push/ pull
marketing strategies are beneficial for increasing business (Park 2020) . As both AIDA model as
well as push and pull strategy are advantageous for increasing business. It is responsibility of
manager to make assure that appropriate kind of tactics are being used on basis of which it is
easy to increase as well as enhance the effectiveness of company's activities. It is important for
company to state that without implementing tactics it is not possible to accomplish objectives
and aims of business in a systematic manner(Punjani, Krunal, 2018). Management system of
specific company states that they should apply strategies through analysis of market and
behaviour of target customers.
CONCLUSION
From above it could be concluded that it is essential as well as necessary to keep a focus
on carrying out marketing strategies, practices so that competitive advantages could be achieved.
As it is duty of manager of company to scan business surroundings so that marketing concept as
well as knowledge would be effectively understood. This report carries discussions which are
carried to understand overview, practices and promotional mix of company. There is a brief
explanation of push or pull and communication mix model along with strategies that are
explained. From this report it has evaluated that it is important to design as well as develop
enterprise pictures at a larger scale.
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REFERENCES
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business practices: Introduction to a Journal of Global Scholars of Marketing Science
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Dahl, S., 2018. Social media marketing: Theories and applications. Sage.
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science of the gendered toy marketing debate. Journal of Business Ethics, 149(4),
pp.769-784.
Gabbianelli, L. and Pencarelli, T., 2020. Exploring some marketing practices in management
consulting firms: evidence from small service firms in Italy. The TQM Journal.
Gesualdi, M., 2019. Revisiting the relationship between public relations and marketing:
Encroachment and social media. Public Relations Review, 45(2), pp.372-382.
Lo, F.Y. and Campos, N., 2018. Blending Internet-of-Things (IoT) solutions into relationship
marketing strategies. Technological Forecasting and Social Change, 137, pp.10-18.
Lunde, M.B., 2018. Sustainability in marketing: a systematic review unifying 20 years of
theoretical and substantive contributions (1997–2016). AMS Review, 8(3), pp.85-110.
Nargundkar, R., 2020. Marketing research: Text and cases. McGraw-Hill Education.
Pandey, N., Nayal, P. and Rathore, A.S., 2020. Digital marketing for B2B organizations:
structured literature review and future research directions. Journal of Business &
Industrial Marketing.
Park, S., 2020. Marketing management (Vol. 3). Seohee Academy.
Punjani, Krunal. "TLP for Integrated Marketing Communication 2018-2019." (2019).
Saleh, A., Alkali, H.A. and Hamidu, K., 2018. Profit Margin Assessment of Sheep Marketing: A
Panacea for Sustainable Small-scale Livestock Enterprise in Gombe State,
Nigeria. Jurnal Ekonomi dan Studi Pembangunan, 10(1), pp.103-116.
Tollin, K. and Christensen, L.B., 2019. Sustainability marketing commitment: Empirical insights
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Online
Khemchandani,2018, 15 Lessons to Learn from Tesla’s Marketing Strategy[Online] Available
Through:<https://growfusely.com/blog/teslas-marketing-strategy-lessons/>
2016,[Online] Available Through:<https://www.edie.net/news/10/Tesla-takes--first-steps--to-
form-clean-energy-dynasty-with-bid-to-acquire-SolarCity/>
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