Marketing Report: Tesla's Promotional Mix and Communication Models

This report provides a comprehensive analysis of Tesla's marketing strategies, focusing on its promotional mix and communication models. The introduction highlights Tesla's background as an electric vehicle company, its mission, and its key product launches. The main body delves into Tesla's promotional mix, including advertising, public relations, sales promotion, events and experiences, personal selling, direct marketing, and interactive marketing, illustrating each with examples. The report then examines the application and effectiveness of the AIDA (Attention, Interest, Desire, Action) model and a communication model in Tesla's marketing efforts. The evaluation sections assess the strengths and weaknesses of each model within the context of Tesla's activities. The conclusion summarizes the key findings and overall effectiveness of Tesla's marketing approach. References are provided to support the analysis.

MARKETING
ASSESMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ONE .....................................................................................................................................3
Promotional mix and activity of Tesla...................................................................................3
TASK TWO...................................................................................................................................10
Model 1 (AIDA)...................................................................................................................10
Use of AIDA model in Tesla ...............................................................................................11
Evaluation of effectiveness...................................................................................................12
Model 2 (COMMUNICATION MODEL)...........................................................................12
Use of Communication model in Tesla ...............................................................................13
Evaluation of effectiveness...................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is the process of promoting the goods and services of a particular company. It
helps in increasing the demand of the product in the market. Marketing helps in promoting the
product through advertising, selling, delivering the products to the consumer. Marketing mix is
the factor of marketing which help the organisation to analyse the demand of the product in the
market. It also helps in understanding the requirement of the customers so that organisation can
plan their strategies accordingly to earn profit. Tesla,Inc. is an American based electric vehicle
company. It basically deals in the products which run though electric energy or solar energy.
Tesla is considered as the largest supplier of battery storage system in the world(Adel and
Hammad, 2020). Tesla was developed in July 2003 as Tesla motors. The main motive of Tesla is
to expedite the move of transportation through solar energy and electric vehicles. Tesla invented
its first car Roadster in 2009 which was followed by model s in 2012, model x in 2015 and
model 3 in 2017. Model 3 was ranked as the best selling electric car in the world. In the year
2020 Tesla was the producer of 1 million electric car in the world which is the great achievement
for Tesla. On January 10,2020 Tesla was the best auto mobile industry in the world with the
market share of $86 billion Tesla always focus on the needs and requirement of the customer so
that they can provide the best quality of product and services to the customer. In this report it
will observe that how marketing helps Tesla to promote their product and services in the market
to achieve their organisational goal.
MAIN BODY
TASK ONE
Promotional mix and activity of Tesla
Promotional mix is the factor of marketing which helps the organisation to to achieve its goal
though the sale of goods and services in the market. Promotional mix includes advertising,
personal selling,sales promotion,public relations etc. which helps in the promotion of the
products so that people can get aware about the products and services of the company. Promotion
plays in important role in the organisation because if the organisation is promoting their products
in the best manner then it will attract the customer and sale of product will be increased in the
market. With the help of promotional mix Tesla can increase its sale in the market because

people will get aware about the brand and its benefits which will attract the attention of the
customers. Their are various factors of promotional mix which are:
 Advertising: It is the paid promotion of products and services which the company
provides. Advertising helps the organisation to increase its sale in the market because it
promotes the products on different platforms which are used by the customers for
examples television, Facebook, Instagram and other social media platform which attracts
the customer it is slight expensive but it also increase the profit of the business(Alavi and
Musavee Haghighi, 2017). Tesla as the top auto mobile company can use advertising to
increase its market share in the world. Tesla is already famous for its product but if they
are providing more knowledge to the customer regarding the product then it will helps
Tesla to achieve its growth and earn profit. Tesla uses different social media platform to
promote its product which has increased its sale in the market it generally focuses on
younger and middle class buyer because the yoEriksson, T., Bigi, A. and Bonera, M.,
2020ung age people will easily understand the benefits of electric vehicles as compared
to the elder generation. Tesla manufactures its products at the affordable prices so that the
middle class buyer can also afford it and can experience the services of Tesla as fuel
prices are rising day by day it is getting very hard for the people to manage their
transportation due to which Tesla demand has increased in the market.
Illustration 1: Tesla advertising campaign
Source:SlideShare Avilable through
<https://www.slideshare.net/BriannaBeitzel/tesla-model-3-
campaign>

 Public relation and publicity: Public relation is basically the relation which company
develops with the customers to increase the sale of the product it include publicity,
corporate events, seminars, advertising etc. which helps the organisation to promote its
products in the market. Publicity is the part of the public relation which promotes the
product of the company through different media it is less expensive as compared to other
promotional techniques. As compared to advertising Tesla is more focused on developing
public relations Tesla shares the information with the public through their twitter account
Tesla has 38 millions followers on twitter for the growth and success of the organisation
maintaining a positive public relation is very important. If the organisation is providing
the information about the product and services of the company properly and if public is
getting attracted by the product then it will help the company to sustain in the market for
a long period of time which will also increase its productivity(Dangelico and Vocalelli,
2017). In the past few years Tesla has achieved positive feedback from the customer
which shows the quality of products that Tesla provides to its customer it also helps Tesla
in developing its customer loyalty if customer will satisfy by the products and services of
Tesla then they will refer it to other people which will also increase the market share of
the company. Tesla has released its fourth quarter financial results on its investor
relations website which shows its performance of the year.
Illustration 2: Tesla public relation campaign
Source: Available through
<https://www.autonews.com/china/tesla-
recruiting-public-relations-government-teams-
china>

 Sales promotion: It is a short-term incentive which is provided to attract the customers so
that company can increase its demand in the market. it helps in introducing new products
in the markets, selling out the old stock and attracting the customers towards the purchase
of the product it also increase the brand awareness among the people. To attract the
customers sales promotion techniques includes free sampling, free gifts, discount coupon,
finance scheme,buy one get one offer,bulk purchase deals etc. Tesla can provides free
services to the customer for 1 year also it can provide incentives on every referral done
by the customers. it can also provide pickup and drop off facility so that there services
can also get promoted and people will get influenced to buy the product. Tesla can use
these sales promotion techniques to maintain position in the market and to avoid
competition(de Oliveira and Sousa, 2020).
 Events and experiences: This strategy is followed by the company to increase it sale in
the market companies can organise online or offline event in which companies can
participate as sponsor or host so that they can make people aware about their product and
services and increase their sale. It helps in increasing the customer engagement, educate
customer about the products and also helps in generating leads. Tesla is also a part of
corporate social responsibility in order to continue the smooth functioning of the
organisation Tesla has to fulfil the requirement of the stakeholder so that there cannot be
any negative impact on the company and growth of the organisation can take place. Tesla
Illustration 3: Tesla sales promotion campaign
Source: Available through
<https://oldcarraffle.com/2020-tesla-model-x-sport-
utility/>

organise various events in order to promote its brand in the market which helped Tesla to
increase its demand. if company is organising the event with proper facility for the
customer then it attract the attention of the customer through which company can easily
generate their leads and increase the sale of the product.
 Personal selling: It is basically the selling of the product and services of the company by
meeting face to face with the client. If the person is promoting a product then it is very
important for the person to have a proper knowledge about the product so that they can
answer the queries of the customer immediately which will leave a positive a impact on
the customer. The main motive of personal selling is to encourage the customer to buy
the product of the company. The Sales representative should always be polite with the
customer so that their target can be achieved properly(Eriksson and Bonera, 2020). Tesla
main focus is customers satisfaction the sales representative of Tesla provides all the
required information to the customer by providing them test drive which help the
customer in knowing the features of the product. Personally helps the company to
convince the buyer easily as compared to online promotion because if the buyer is present
physical then the sales representative can easily make them understand about the features
of the product which will help in convincing the customer to buy the product. Tesla has
hired the employees who have a proper knowledge about the auto-mobile industry so that
Illustration 4: Tesla event campaign
Source: Available through
<http://www.nostaticav.com/tesla-launch-event/>

they don't have to spend much time in training them. If the employees is already having
knowledge about the product and services of the company then it will help them to
provide information properly to the customer. As Tesla focuses youngster and middle
class buyer so it depends on the sales representative to provide the information to the
customer's accordingly.
 Direct marketing: It is the process of making people aware about the product and services
of the company through social media or other platform for example TV advertisement,
radio ads, telemarketing etc. if the company is promoting the product through television
commercial then they can choose the time frame on the channel so that audience can
watch it. In order to target the interested customer company can also send them the mails
and messaging containing the offer related to the product . So that people can get
influenced easily. It will also help the company to measure the response rate of the
customer so that they can determine the demand for the product in the market. It will also
help in developing a positive relationship with the customer. Tesla also targets their
customer according to their interest in the products so that they can follow the customer
and encourage them to buy the product(Fortenberry and McGoldrick, 2020). Tesla also
design an attractive mail which is sent to the customer so that clients can get attracted by
the marketing strategy of the company and can respond immediately to the company
Illustration 5: Tesla personal selling campaign
Source: Available through
<https://www.qualtrics.com/blog/tesla-customer-
experience/>

which will help the company to increase its goodwill in the market and can achieve
success in the future. Company's behaviour towards its customers shows their growth in
the market. If Tesla is successful in increasing its customer loyalty then it will also help
them to increase its profit in the market.
 Interactive marketing: It is also known as event-driven marketing. Interactive marketing
is basically a two way communication channels which allow the buyers to interact with
the company directly. It helps the organisation to engage customer in the activities of the
business so that business can perform effectively in the market. When the company
organise some event to promote its product its helps them to interact with the customer
easily. If the company is successful in providing the proper information to the customer
regarding the product then it will increase their chances of sale in the market. There are
different forms of interactive marketing for example email marketing, social networking,
organising the event etc. Tesla uses interactive marketing strategies so that they can
develop their business activities because interactive marketing helps the organisation to
may ways for example if customer's are providing any feedback to the company
regarding the product then it will help the Tesla to improve their services and fulfil the
requirement of the customer. Interactive marketing also helps Tesla to generate qualified
lead so that their productivity can be increased. It also helps the stakeholders in effective
decision making which will help to achieve their target(Ibrahim and Harrison, 2020).
Illustration 6: Tesla direct marketing campaign
Source: Available through
<https://scienceofrevenue.com/tag/tesla-marketing-
strategy/>

 Word of mouth marketing: this part of marketing helps the organisation when customer is
interested in the product of the company it can be done through advertising or
encouraging the people through the publicity of the product it can also help the
organisation to increase its market share. If the customer is buying the product of Tesla
and they are satisfied by the product and services then they will provide the positive
feedback to the company also customer will refer the company to their friends and
relative which increase the product awareness of Tesla in the market. From the past many
Tesla has achieved the positive feedback from the customer which made the company at
the top position in the market.
Illustration 7: Tesla interactive marketing campaign
Source: Available through
<https://www.marketing-interactive.com/tesla-
model-x-launched-in-hong-kong>
Illustration 8: Tesla word of moth marketing
Source: Available through
<https://www.teslarati.com/tesla-tsla-elon-musk-word-
of-mouth-strategy-explained/>

 Social media marketing: It is used by the organisation to promote the product and
services of the company. In today's world social media marketing is plays an important
role of the organisation. Tesla uses social media marketing to promote the services of the
company they uses television advertisement, Facebook, Instagram, twitter to create
awareness about the product in the market(Idris and ABD RAHMAN 2017). On social
media platform more than 25% of conversations about electric vehicles are related to
Tesla. Customer generally to social media before buying the product which helps the
company to increase its sale and achieve success in future.
TASK TWO
Model 1 (AIDA)
AIDA model is also known hierarchy models. It is the process of analysing the steps through
which a customer goes while purchasing the product. Since the late 19 century this model is in
use. This model was developed in 1898 by E.St.Elmo Lewis who is an American businessman.
This model basically focuses on optimizing the sales calls of the company. AIDA stands for
attention, interest, desire and action.
Illustration 9: Tesla social media marketing
Source: Available through
<http://socialmediamarketingclass.blogspot.com/2014/03/tesla-
motors-social-media-monitoring.html>

 ATTENTION: A company should design their product in a way that it should attract the
attention of the customer so that they can influence to buy the product. If the quality of
the product is good but its design and packing is not attractive then the customer shows
less interest in buying the product which can effect the productivity of the company.
 Interest: Interest of the customer plays an important role in buying the product and
services of the company. An organisation should provide all the necessary information to
the customer so that they can show their interest in buying the product. If the company is
not providing proper details about the product then their demand for the product will
decrease in the market.
 Desire: If the customer is interested in the product of the organisation then it is the duty
to company to influence the customer for buying the product. In order to increase the
chances of sale company can provide the benefits of the product to the customer which
will help in creating the desire to purchase the product(Kennedy and Parsons, 2018).
 Action: Once the desire is developed in the customer to buy the product then it is the
responsibility of the company to convert the desire into purchase. Company should try to
impress the customers by the quality of the product so that they can purchase it easily.
Illustration 10: AIDA MODEL
Source: Available through
<https://gecdesigns.com/blog/aida-sales-funnel-model-
to-boost-content-marketing>