Tesla's Marketing Strategies: A Deep Dive into Promotional Activities

This report provides a detailed analysis of Tesla's marketing strategies, examining the principles and practices employed by the company to promote its electric vehicles and energy products. The report begins with an introduction to the automotive industry and Tesla's background, including its founding, mission, and CEO, Elon Musk. It then delves into Tesla's promotional activities, including public relations, sales promotion, and digital marketing, highlighting the company's innovative approach to customer touchpoints, external space promotions, and social media marketing. The report further explores the application of marketing models such as the AIDA model and below-the-line promotion, along with push and pull strategies and the communication process, providing insights into how Tesla attracts, engages, and converts customers. The report concludes with a summary of key findings and observations regarding Tesla's marketing effectiveness.

Principles and Practices
of Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Introduction to the company ......................................................................................................3
Promotional activities of Tesla....................................................................................................3
TASK 2............................................................................................................................................6
Applying AIDA model................................................................................................................6
Applying Below the Line promotion model...............................................................................7
Applying Push and Pull strategies...............................................................................................7
Applying Communication process..............................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing plays a major role in promoting the product and services and create awareness
in the society. There are various tools and techniques in marketing used by the marketers to
promote the product. There are various principle of marketing also refer to as 4 p's of marketing
which are product, price, place and promotion or marketing mix. Company need to keep these,
marketing principle in consideration so that they can plan marketing strategies for promoting
these product. Marketing models also help them to make effective decision regarding promotion.
The report is based on Tesla about how they market their products using different promotional
tools and also explains about the models of marketing mix and plan strategies they are using
for marketing their product globally.
TASK 1
Overview/ Background
Automotive industry involves developing, manufacturing, marketing and selling of motor
vehicles globally and generate highest income from this throughout the world.
Tesla Motors one of the biggest automotive company was founded in the year 2003, is an clean
energy and electric vehicle company which produce products like battery energy,electric cars,
solar panels, solar tiles and other energy products. It is one of the largest battery energy storage
supplier in the world. CEO of Tesla is Elon Musk, which is one of the biggest global investor .
The main purpose behind Tesla, is to produce energy sustaining products to prevent resources
by using solar powers. The main strategy of Tesla, is to produce and sell sports car at high price
at low volume. Tesla does not pay for direct advertisements instead their objective is to make
people aware public through their showrooms and sells the product through online mode instead
of conventional dealing networks. It is the first automotive company who directly sells their
product to their customer, and they bring continuous innovation in their cars rapidly in each
model so that I can attract more customer in respect to the car features. Tesla provides better
facilities to their customers by making proprietary stations in every areas so that the customer
can charge the electric automotive anywhere.

Tesla adopts and use the latest and unseen technological system design their car and manufacture
them.
Promotional mix of Tesla
Promotion of brand helps company to create awareness of their products in the society to
increase their sales. For this, Tesla provides online services to avail their product. There are
various promotion activity used by Tesla Motors which are discussed as below:
PR and Public relations
1. Facing Customer touchpoints: It basically refers to how the customer is feeling about
your product and from which source they have came to know about the product which
attracts them. It is also considered as the uniqueness your product carries which
themselves promote the brand. Customer keep an eye on such famous brands keep them
update before or after they buy something from them. In context to Tesla Motors, they
faces customer touch points. In this, they (Bartels, R., 2017 )need to analyse and
determine about how the customer see their brand and thinks this help the company to get
to know about the popularity of their product.
Tesla focuses to create automotive products which are highly innovative, that it clearly defines
the brand and could attract more people to buy the niche product which is higher in price but has
low volume. Customer before buying sports car visits the website of Tesla there they check the
rating and reviews and customer feedback so that they can know more. If they feel satisfied they

prefer to visit to stores situated in their locality for more better and live experience. There the
team promotes the product by telling about innovations they have done and explain the features
in elaborate way,this mouth publicity of product help to attract the buyers towards them. For this
Tesla give proper attention to their customers,(Bhardwaj, et.al., 2020) they send marketing
emails to the potential customer visited their websites and ensure good public relation so that it
can also help them to promote the brand by continuously interacting and stay socially active on
different platforms and maintain healthy relation with the customers and market their products
by giving better experience.
Sales promotion
2. Activities of automotive at external spaces: External spaces usually include promoting
the product by advertisement in newspaper, television, magazine and through billboard.
So that, it can be visible to the public and they get awareness about the product. Tesla
being a largest auto motive manufacturing and selling company spend very less amount
on advertisement they did not believe to pay on it. Rather they utilise the amount of paid
advertising in creating and developing more innovative features in their sports and
electric cars. Tesla mainly focuses on creating a good referral program so that it can
facilitate mouth publicity. They had discovered a bold mission and vision statement that
help them to market their products digitally. The company provide better after sale
services to their customer this creates a good impact and this gives better experience to
their customers.

Billboards generally refer to as hoardings which carries large advertisement of brands promoted
along with their products on it and it is usually places at the pedestrians, bus stands which is
visible to the passengers or public passing from that route. Tesla promote their products using
billboards they don't believe in promoting the brand at road side. They prefer more to put their
efforts on their online presence, so that customer get information at one place and make decision
regarding the auto motives.
Social media marketing
3. Digital marketing of auto motives: This refers to promoting the product using social
media, websites so that it can reach to large amount of people and can attract towards
them. Now a days, promoting product by using online platform can reach to more people
fastly and can gain insights at global level. Tesla sell their spots car, and other products
digitally. They have their websites own which helps customer to directly connect with the
company or sales team to gain more information and share their experience.
Digital platform like Instagram , Facebook and even company's website help to promote their
newly launched features and make aware about this. Even the CEO continuously tweets on
twitter and on their company's blog regarding what ever is been launched or about to be launch
in the market to give update to (Fan, Z. and et.al.., 2019)public and and let their brand to be in
controversy. Not just this the marketing team handles all the queries and provide support and
solve all the complaints as fast as possible, this creates a loyal follower base and the customer
can have better experience.

CEO of Tesla, Elon Musk influence social media by posting, tweeting and timely engaging with
his followers and discuss about both negative and positive aspects this creates a brand value and
make this help them to gain more public insights to promote their products. And this is
considered as a key of success and growth of Tesla.
Promotion activities through third party:There are various sources like newspaper in which
company ad(Bhardwaj, et.al., 2020)vertise their products which gain retain the interest of the
buyers towards it. In context to Tesla, they does not give any advertisement in the newspaper as
articles as they feel to promote it using websites and other digital platforms. Newspaper carrying
articles regarding any information of the company can automatically derive the interest towards
it and became controversial Similarly, analyst reports can promote the company by mentioning
their names in their report if the company can generate more revenue them it can be come in it.

Like in recent scenario, Tesla became the top (D'silva, De Moor,Kemme, 2018)company
according to the Fortune 500 so it ultimately attracts the attention of the company towards it.
Tesla does not promote itself or mention itself in any of the reports rather they just include
themselves in making the brand vocally renowned and it can be in controversy because of their
innovative features the bought up in their product and make it famous.
From the above points is is been showcased that Tesla has major focus on serving better
customer experience and doing referral programmes this can(Tomkovick, 2019) work as a
promotion activity for them. Also, they use digital platforms to stay connected with the consumer
and use different social media platforms to promote their brand by continuously updating their
innovations and through tweets,post and on their blogs too.
TASK 2
Applying AIDA model

Definition
AIDA model is an acronym for Attraction, Interests, Desire and Action. In simple words,
this model tells about different stages in market through which any customer passes through,
before final decision about purchase is taken. In all this stages it is been analysed that how a
company attract the potential buyers and help them in developing their interest in the product of
the company they also analyse the desire of the consumer so that they could design according to
their needs and serve them as per (Gontareva, and et.al., 2020) they want and lastly, introducing
the product in the market and promote as per using the above tools. The Report have discussed
this model in context of Tesla company to analyse effectiveness of enterprise in attracting and
convincing customers.
How the company has applied the model
Attraction- Attraction is the stage where customers are seen attracting towards company's
products and services. It is stage of generating first ever awareness towards products. Tesla in
this order have made a very successful use of digital marketing and social media platforms.
However, for this company have chosen to create its own path and not much relying over paid
advertisements.

Interests- Interests is second stage where customers are made aware about products and its usage
for customers. In this stage only, it is important to aware customer about distinction and qualities
of product. Tesla offered details of products not over packaging only but all information about its
products are available over Tesla's website and other allied platforms also. To help customer
know about products in their choice of platform and means.
Desire- This is stage of persuading customers, to convince customers for buying its products and
services. At this stage it is important for company to (Hudson 2018)mark its distinctions of
product qualities. Although, Tesla's electric products and their qualities are well known to
everyone in market, but strong branding of their product and their virtue of deriving benefits to
multiple stakeholders have helped company the most.
Action- It is the final stage when customer take action of making final purchase. Order is placed,
modifications are made and product is delivered. This falls in general, but Tesla went one step
ahead in this line by providing Top-notch post purchase services as well.
Applying Below the Line promotion model
Definition
Below the line promotion model is that model of advertising in which particular group or
sections of people are targeted for promoting products and services. Unlike Above the line
promotions which fare over National television, radio or press media platforms, that have wide
directions, Below the line advertisements are more directed over specific segments of customers,
making use of digital and social media platforms. Tesla have used Below the line model
efficiently, discussed in report as follows:
How the company has applied the model
Targeted online marketing- Under this, Tesla have made use of online marketing tools and
social media platforms in a manner of targeting particularly those segments of consumers which
offer growth potential. Company have its market in privileged and sophisticated groups of
society, therefore use of Twitter campaigns (Takahashi,2019)while keeping their audience in
loop of every information. Also, ,company is seen maintaining consistent communication with
customers and dealers through Text messaging and mailing.
Presentation- Presentations are initiative where company attempts to showcase its products in
markets, before consumers directly in physical form. Tesla recognised its need very efficiently.

This was helpful for Tesla more as company deals in electric vehicles, which consumers like to
verify and become more assured before making any purchases.
Applying Push and Pull strategies
Push and pull strategies are two different ends of the same string in marketing, where
customers are meant to be the string. Simply understanding, in push strategies company make
efforts to push a product towards customers, generating awareness among consumers about
product informing about its pros and cons and then convincing them to buy that product. This
way company pushes consumers or induce them to buy its product. In pull strategies, company
attempts to create demand for products, by hitting consumers sentiments. In this, company
through effective storage tactics or tactics of cutting production, develop scarcity of products in
market. When consumers will be seeking product but couldn't avail it, huge demand for product
will cater which will given sudden boost to sales after products is made available in market
completely. Also, it helps company to maintain long run relation with customer. Many
companies, especially big business tycoons like Tesla, prefers to use both of these strategies at
the same time, through extensive and elaborated marketing strategies.
Understanding these strategies in context of Tesla, Tesla follows push strategy. In these
strategies company have majorly focused on online efforts. In modern time, buyer's prefers more
on going to online sources for seeking any information about product or purchasing same. Tesla
understood this trend very well and through its websites and partnering with other websites made
information available about products in public domain, supported by applying for modification
and for purchase as well through online channels. Tesla also allows its customers a self-service
option. This option was appreciated by customers and they mentioned company have tendency to
value time of customers. Strong image of Tesla CEO, Elon Musk, among people, too have
helped company in pushing customers striking their behavioural aspects.

Applying Communication process
Definition
Communication process refers to series of steps or action involved in successfully
channelising communication between sender and receiver. Communication process mainly
involves sending, receiving, encoding and decoding of message. Proper flow of communication
ensures good flow of working in the company thus avoids conflicting situation in the
management. Tesla have done efforts very efficiently in implementing and maintaining
communication with their customers. Report have understood communication process in context
of Tesla, with help of different steps involved in communication process.
How company is applying this model
Sender- Sender is the communication generator, which is no other than Tesla. Tesla for
communicating its message or information, that have to be conveyed up to concern persons, be it
customers, dealers, shareholders or any other stakeholder associated with business. Company
supports sending its messages mainly through online channels by its official website or by its
official pages over social media or by direct mailing and text messaging.
Message- Message is the idea or information that have to be conveyed. It pertains differently
with respect to different stakeholders. For example, in case of consumers it can be regarding
launch of new product, or modification in existing one or any event or trade-show. For
shareholders message can be regarding meetings or conferences, similarly.