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.
1

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:
2

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.
3

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
4

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.
5

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) .
6

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.
7

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.
8

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
9

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:
10