Tesla's Marketing: Environment Analysis, Planning, Segmentation & Mix

This report provides a comprehensive analysis of Tesla's marketing strategies, encompassing the marketing environment and planning process, segmentation, targeting, and marketing mix. It begins by examining the components of Tesla's marketing planning process, the role of adopting a marketing orientation, and the application of the marketing environment and planning process, including a PESTEL analysis and micro-environmental aspects. The report outlines Tesla's marketing mix (7Ps) and its contribution to effective marketing planning. Furthermore, it delves into segmentation, targeting, and positioning, distinguishing between B2B and B2C markets with situational examples, targeting the B2C market for promotion, explaining positioning strategies, and how Tesla is positioned in the consumer market. Finally, the report offers a detailed marketing mix analysis, covering product, price, place, promotion, people, process, and physical evidence, concluding with key findings and insights. Desklib provides a platform to access similar solved assignments for students.

ELECTRIC
VEHICLES-TESLA

Table of Contents

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Task 1: Marketing Environment and Planning Process.........................................................2
Components of the marketing planning process in Tesla..................................................2
Role of adopting a marketing orientation in Tesla............................................................2
Application of marketing environment and planning process to Tesla.............................2
PESTEL analysis of Tesla.................................................................................................3
Micro environmental aspects.............................................................................................3
Outlining marketing mix 7Ps.............................................................................................4
Contribution of marketing mix to effective marketing planning in Tesla.........................4
Task 2: Segmentation, Targeting & Positioning....................................................................5
Distinctions between segmentation of the B2B and B2C markets....................................5
Situational examples from Tesla.......................................................................................5
Targeting B2C market for Tesla promotion......................................................................5
Explain positioning............................................................................................................6
How Tesla would be positioned in the consumer market..................................................7
Task 3: Marketing Mix Analysis............................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing can be defined as the activities of the organization in order to promote and
advertise their products and services offered by the company. It is one of the essential elements
of business management and moreover the companies can sell their product even to other
businesses or directly to the customers as well (Kim, 2020). Organization chosen here under the
domain of electric vehicles is the tesla which is one of the leading international electric car
company headquartered in the United States and established in 2003. Company offers products
and services such as electric cars, battery energy storage along with the solar panels and other
related products and services. The following discussion is based on the marketing environment
and planning process in context of Tesla which includes the components of marketing planning
process, role of adopting marketing orientation, application of marketing environment and
planning process, pestle analysis, micro environmental aspects, outlining marketing mix of 7 P's
and contribution of marketing mix to effective marketing planning. Segmentation, targeting and
positioning is also discussed in context of Tesla which includes the distinction between
segmentation of B2B and b2c markets, situation examples from the company, targeting b2c
market for the company promotion, explanation of positioning and how the company would be
positioned in the consumer market. Moreover, the discussion is also made on the marketing mix
analysis in context of Tesla which includes products, price, place, promotion, people, process
and physical evidence with proper findings and conclusion.
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MAIN BODY
Task 1: Marketing Environment and Planning Process
Components of the marketing planning process in Tesla
Tesla uses various components of the marketing planning process such as market
research is on the priority which is used by the company in which the research on marketing
dynamics and customers along with the products and current sales is conducted. Target market
research is also undertaken in which the specific type of customers is researched in order to sell
the products and services. Tesla also focuses on the product and its description which relates to
the market and which solves the current issues in the industry. Competition is one of the most
important components in which the development of a unique selling proposition is done by Tesla
in which they investigate the competitors and how they can fight against them. Tesla uses
different types of marketing strategies such as networking and direct marketing along with the
advertising and training programs which is followed by the direct selling and publicity with the
help of websites and press releases. Moreover, pricing, promotion and branding along with the
budgeting and monitoring the results are adopted by the company as the components of the
marketing planning process (Fisher and McCabe, 2019).
Role of adopting a marketing orientation in Tesla
There is a positive role of adopting a market orientation in Tesla because the company
has benefited such as in the increment of customer satisfaction and loyalty because the customers
start paying attention to the sales quality and servicing of products along with the brand loyalty
which make the long term relationship with customers and moreover the company has also the
competitive advantage in terms of prices and special introductory incentives. Moreover,
advantages economies of scale and efficiency along with the focus on quality and innovation
which is followed by the skills development and outsourcing (Perkins and Murmann, 2018).
Application of marketing environment and planning process to Tesla
Application of marketing environment and planning process to Tesla are different in
numbers such as we have adopted the marketing strategies which makes the employees in
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making their sails easier specific to the ideal customer in a smarter way so that the reduction in
cost of marketing and increase of converting leads into sales can be done. It helps the company
promote its products and services specially in the target market which requires the research and
commitment along with the value of the process which contributes to the business success. The
company is benefited to plan and build various business strategies for example decision making
and unique selling proposition along with competitive pricing and distribution network in the
marketplace (Hua, 2019).
PESTEL analysis of Tesla
Analysis includes 6 different factors to analyse the external business environment in
terms of scanning and auditing the environment. Political factors give opportunity to the
company because of the initiatives taken by national and state governments to encourage
manufacturing and sale of electric vehicles. Economic factors give opportunity to the company
because of the improvement in global economy coupled with the rise in sales of electric vehicles
and dip in prices of electric batteries to make electric vehicles affordable. A social factor gives
opportunity to the company because of the improving preference of low carbon footprints and
use of renewable energy. Technological factors give opportunity to the company because of the
growing use of embedded technologies in automobiles and advancement of technologies to
reduce carbon footprint. Legal factors gems opportunities to the company because of the
increased regulation related to automobile standards by various governments. environmental
factors give opportunities to the company because of the increasing concern towards greenhouse
gas emissions due to automobiles (Thomas and Maine, 2019).
Micro environmental aspects
Dominant competitors
Dominant competitors of Tesla in terms of micro environmental aspects in the industry
and in the marketplace are in large numbers such as Ford Motor company which is one of the
multinational automobile manufacturers established in 1903. General motors which is the United
State headquarter of the manufacturer established in 1908. Honda Motor company which is a
multinational automobile manufacturer was established in 1948. Navistar is a commercial
vehicle company. Oshkosh is the truck and military vehicle manufacturer established in 1917.
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Spartan motors which is a speciality chassis and vehicle manufacturer. Tata motors is one of the
largest automatic manufacturers in India. Toyota motor corporation is a multinational automatic
manufacturer and Wapco is a manufacturer of systems for heavy duty commercial vehicles. They
are all the dominant competitors of Tesla which impacts the micro environmental aspects of the
company (MAOHENG, 2018).
Recent competitor activity
Recent competitive activity of Tesla is researched and it reveals the miles ahead of the
competition in technology. The company's in-house single ECU is approximately at least 6 years
ahead of Volkswagen and Toyota. These organisations are the largest in the world which have
been selling over 10 million cars for years but Tesla only sells approximately 350000. Tesla has
improved its manufacturing from the days of production hell as per the research. But after the
investigation it is found out that currently Tesla has no competitors because of the electrical
vehicle invention and manufacturing. The company has adopted various marketing strategies that
show that they are fighting the competition in terms of electric vehicles and are gaining good
sales and revenue generation because of its new launches.
Outlining marketing mix 7Ps
7 P's of marketing mix includes product or service offered by the company which the
company actually sells to the customers. place is the location where the company is selling its
products and services either online or offline. Price is the cost of the product and to which the
company is selling their items. Promotion is the creation of awareness with the help of
advertising the products in the marketplace. People are the employees or staff of the company
who are involved in the functioning of the organisation. Process is the systematic way of
handling the whole customer experience from selling to the after selling services. Physical
evidence is the physical outlook of the store where the products and services is being sold with
good comfort and environment to the customer (Matthews, Hirve, Pan and Daim, 2020).
Contribution of marketing mix to effective marketing planning in Tesla
Marketing mix has allowed the tesla to make the profitable marketing decisions at every
level of its marketing plan which helps the company in developing their strength and limit their
weaknesses and also in becoming more competitive and adaptive in the market.
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Task 2: Segmentation, Targeting & Positioning
Distinctions between segmentation of the B2B and B2C markets
B2B marketing is all about business to business which means that selling products and
services to other businesses and b2c marketing is all about business to customers which means
that selling products and services to customers. The major difference between both the segments
is that B2B targets their customers in small numbers as compared to b2c target audience. B2c
marketing has a large number of potential customers whereas B2B clients can only generate 80%
or more sales. B2B has longer customer relationships as compared to b2c marketing because
business relations prove stronger than customer relations (Ajitha and Nagra, 2021).
Situational examples from Tesla
Although tesla is an independent automaker which offers a broad variety of products
which are developed from their latest technology. It uses the B2B model which encourages
business partnerships with other organisations in terms of supplying products and services.
Technology uses b2c models to offer their products and services directly to the customers in the
form of luxury and family along with the mass market vehicles. Moreover, Tesla uses the word
of mouth type of marketing which refers to the referral program rewards to the people who share
their experiences with others and in this way customer's trust the company along with the co-
workers more than the brand owned channels.
Targeting B2C market for Tesla promotion
Demographics viewpoint
Targeting b2c market for Tesla promotion in terms of demographic view point as per the
research younger people and average customers because of the expensive products and services
of the company and they mainly target the well the individuals and households. Mainly the
youngsters and adults who are of the age group between 38 to 50 are more interested in buying
the vehicle. They have good purchasing power and are interested in electric vehicles along with
the technology.
Behavioural viewpoint
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Targeting b2c market for Tesla promotion in terms of behavioural viewpoint as per the
research are the people who are mostly involved in technology and are greatly interested in
browsing about new electric cars that are available in the market and who have a good research
interest in the automobile industry. Moreover, Tesla is greatly active on Twitter and social media
and the people who are involved in internet and networks will be greatly interested in knowing
each and every launch of Tesla therefore this kind of behaviour is targeted by the company
(Toumi, 2018).
Geodemographic viewpoint
Targeting b2c market for Tesla promotion in terms of geodemographic viewpoint as per
the research are the people who live in the same locality because most of the people have the
similar behaviour who live together and similar kind of nature along with the lifestyle but it has a
condition that they all should have the good purchasing power because of the expensiveness of
the products and services provided by the tesla. Tesla has the overall satisfaction rating of about
90% and 80% of the customers buy the tesla products in terms of their next purchase and suggest
the people surrounding them.
Lifestyle viewpoint
Targeting b2c market for Tesla promotion in terms of lifestyle viewpoint as for the
research are the people who want there like to be fashionable in terms of electric cars along with
the hobbies like driving and exploring new cars along with the new technologies and moreover
who likes and loves traveling in their own vehicle. So basically the lifestyle of the customers
must be technical and are interested in the advanced technology in the automobile sector.
Explain positioning
Positioning can be defined as the place which a company occupies to position their
products and services in front of the customers so that our customers can distinguish what
exactly they want from the company and also can compare the competitors’ products and
services which also helps in the concept of brand awareness. There are four types of product
positioning such as positioning by product feature, by user, by competition and by quality or
value. There are different strategies of positioning such as based on price and based on quality or
luxury along with the based on application and competition of the product and services
(Almuzel, Goudarznia, Daneshi and Yacoub, 2018).
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How Tesla would be positioned in the consumer market
Tesla has used the positioning strategy in the consumer market such as mono segment
positioning which is one of the selection and application of the marketing mix and suitable for
the target customer segment for Tesla. Moreover, it also uses the anticipatory type of positioning.
(Maamoun, 2021).
Task 3: Marketing Mix Analysis
Product Product is the first p of marketing mix and as per the research in context of
Tesla, the company has the wide range of product portfolio which includes
the fully electric vehicle and sustainable development along with the eco-
friendly which is followed by the efficiency electric technology and energy
saving and also the cool and modem along with the stylish personality with
good innovation and creative features in the product. All this is the range of
products and services in Tesla and features which the company offers to
their target customers in a good range of varieties and assorted
characteristics as per the needs and requirements of the market and as per
the demands of the customers (Candelo, 2019).
Price Price is the second p of marketing mix and as per the research in context of
Tesla, the company provides their products and services at the premium
pricing as per the worthiness of the product and services they are offering
to the customers along with the federal tax credit and allowances which is
followed by the different pricing and different configuration which are
totally competitive in nature and Tesla providing its products and services
give value to the pricing according to the different ranges of products
demanded by the customers.
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Place Place is the third p of marketing mix and as per the research in context of
Tesla, they have distributed and placed their products on the official
company website along with the company owned stores and galleries
which is followed by the company owned service centres. In all these
places the company has placed their products and services to render to the
customers. This is because the customers must reach the products in an
easy way without any complications but there are unlimited places where
the products and services of the company are placed because of its
premium price in and advanced technology used so that is why in order to
save such products from theft or any misconduct is important to limit the
distribution and must only available on the trust based sources. (Handa,
2019).
Promotion Promotion is the 4th p of marketing mix and as for the research in context
of Tesla, the company has made their marketing and advertising strategies
to promote their products and services as wild as possible according to the
target market so that awareness can be created on a large basis such as the
company has used online to offline mode of promotion and celebrity
endorsement along with the hunger marketing and booking first which is
followed by the membership sale and push current news to exist customers
also using of the social media for example video touting and Twitter along
with the Facebook and LinkedIn which is followed by the blocking and
update advanced news. All these tools are used by the company as a
promotion in the marketing mix.
People People is the fifth p of marketing mix and a type of service mix. As per the
research conducted in the context of Tesla, the company has employees
who have good skills in technology along with the other departments of the
organisation such as sales and marketing, finance and budgeting, human
resource, research and development, operations and production and many
more. Specialised expertise which are hired by the company who helps in
gaining the customer servicing at next level are the after sales services
people and Tesla motor club along with solving problems online. All such
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employees are efficient and willingly working for the company (Gali,
2020).
Physical evidence Physical evidence is the sixth p of marketing mix and a type of service
mix. As per the research conducted in the context of Tesla, the company
has attractive physical evidence which creates the good environment and
good sensation for the customers who purchase the products and services
from the company at any distribution place offered by the organization.
Such as technical support with the help of email to Tesla or owner’s
manual are available along with the roadside assistance which includes the
nearest Tesla service center or used Tesla mobile servicing. All these
includes the physical evidence in an effective manner so that the customers
could get attracted not only towards the products and servicing but also the
physical nature of the distribution place.
Process Process is the 7th p of marketing mix and a type of service mix. As per the
research conducted in the context of Tesla, the company has the process
which mainly includes the customer focus and business lead along with the
information technology support and designed features which is followed by
the research and development. All these include the process in Tesla which
they have majorly focused upon. (Flehantova and Redka, 2021).
CONCLUSION
It is concluded that marketing management is an important concept to learn and study so that
its application can be applied in real world organisations under the domain of electrical vehicles.
Therefore, it is important to analyse the marketing environment and planning process which
includes different components and rules of adopting along with the application and pestle
analysis which is followed by the micro environmental aspects and marketing mix. It is essential
to examine the segmentation, targeting and positioning which includes the B2B and b2c markets
along with the situation examples which is followed by the positioning. It is necessary to
determine the marketing mix analysis which includes 7 P's of marketing. hence this report covers
all such areas in order to better understand the conception of marketing management.
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REFERENCES
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Almuzel, M., Goudarznia, T., Daneshi, A. and Yacoub, M., 2018. Tesla Solar Roof Marketing
Plan.
Candelo, E., 2019. How Platforms are Reshaping Automotive Marketing Management.
In Marketing Innovations in the Automotive Industry (pp. 131-140). Springer, Cham.
Fisher, M. and McCabe, M.B., 2019. Tesla: Accelerating to Market. Journal of Strategic
Management Education, 15.
Flehantova, A. and Redka, O., 2021. Innovation as the main driver for the future economic
growth of the company (on Tesla, Inc. Example).
Gali, G.R., 2020. Corporate and Business Strategies of Tesla Company. NOLEGEIN-Journal of
Entrepreneurship Planning, Development and Management, pp.10-23.
Handa, M.B., 2019. Constant Rise of Tesla Inc.: Strategic Marketing Plan Leading To
Company’s Colossal Growth in 2020.
Hua, H., 2019. Mobile marketing management: Case studies from successful practices. CRC
Press.
Kim, H., 2020. Analysis of How Tesla Creates Core Innovation Capability. International
Journal of Business and Management. 15(6). pp.42-61.
Maamoun, A., 2021. Elon Musk and Tesla: An Electrifying Love Affair. SAGE Publications:
SAGE Business Cases Originals.
MAOHENG, W., 2018. RESEARCH ON THE BRAND MARKETING OF TESLA ELECTRIC
VEHICLE (Doctoral dissertation, SIAM UNIVERSITY).
Matthews, T., Hirve, M., Pan, Y. and Daim, T.U., 2020. Tesla Energy. In Innovation
Management in the Intelligent World (pp. 233-249). Springer, Cham.
Perkins, G. and Murmann, J.P., 2018. What does the success of Tesla mean for the future
dynamics in the global automobile sector?. Management and Organization Review. 14(3).
pp.471-480.
Thomas, V.J. and Maine, E., 2019. Market entry strategies for electric vehicle start-ups in the
automotive industry–Lessons from Tesla Motors. Journal of Cleaner Production, 235,
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Toumi, I., 2018. Exploring the success of tesla, Inc. ББК 65.290-2 я 73 П 78, p.319.
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