Marketing Strategy of Tesla: 4Ps, Promotional Mix and AIDA Model

This report provides a comprehensive analysis of Tesla's marketing strategy, examining key elements such as the 4Ps (Product, Price, Place, and Promotion) and the promotional mix employed by the company. The report delves into Tesla's product offerings, pricing strategies, distribution channels, and promotional techniques, including viral marketing, social media engagement, and customer experience initiatives. Furthermore, the report explores the application of the AIDA model (Attention, Interest, Desire, Action) to understand how Tesla captures customer attention and drives sales. The analysis highlights the effectiveness of Tesla's strategies, emphasizing the role of CEO Elon Musk, social media, and customer referrals in building brand recognition and driving sales. The report covers push and pull marketing strategies. Overall, this report offers valuable insights into Tesla's innovative marketing approach and its success in the electric vehicle market.

MARKETING STRATEGY
OF TESLA

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Marketing knowledge based on 4P's .....................................................................................1
Promotional mix used by Tesla..............................................................................................5
TASK 2..........................................................................................................................................12
AIDA model ........................................................................................................................12
Push and pull strategy used by Tesla....................................................................................15
CONCLUSION..............................................................................................................................17
REFERNECES..............................................................................................................................18

INTRODUCTION
Marketing strategies is refers to as various aspect of planning, organizing, controlling in
such a way which help to promote the product and services. It other way, this strategies provide
brief aspect for firm to gain more customer by their promotional techniques and tools. This
include promotional mix and tools. Marketing strategy is also refers as business plan for reaching
to customer and turning their decision for product and services (Gibson and O’Rawe 2018). In
this topic the chosen firm is Tesla, this organization deals with electric vehicle and clean energy
formation tool.
MAIN BODY
TASK 1
Marketing knowledge based on 4P's
The four Ps are product, price, place and promotion. These all element are work together.
The company is located in Palo Alto, California. Currently they are dealing in electric car and
battery engine storage which is based on solar grid or electric grid. They ranked bets selling car
in their industry because of battery cars. They invented new car on the basis of electric charge
which change light energy to electric energy. In addition to this, the present CEO Tesla is Elon
Musk. In this report, topic is covered with the promotional techniques and mix which are used by
organization.
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Illustration 1: Tesla 4P's of marketing

The aforementioned pictures reflects that TESLA uses this 4P's of marketing.
Tesla uses marketing mix in effective way to promote automotive industry. In this,
marketing mix is defined as product, place, price and promotion. Tesla used to signify various
maintenance and control over marketing mix element for effective module. In addition to this,
firm is major producer of electric auto-mobile in United States and UK. As per UK, they use
marketing mixes for the expansion of business and support marketing penetration. In this,
market penetration is used in selected firm to gain competitive advantage and provide strategies
for growth. The company follow four P's of marketing to competitiveness against other firm
which are Toyota Motor Corporation, General motors Company and many more (Gummesson
2017).
The aforementioned pictures reflects the CEO of Tesla with Tesla truck
As per this, selected enterprise helps to grow it brand and along with enhancing the
market penetration. As per this, the CEO of Tesla have also a brand image in global level. This
recognition work as a promotion for firm. The place and promotion elements make firm
marketing in an unusual way which help automotive industry to grow. These four P's are
associated to each other in which one P's in linked with another. While other Ps have been
developed over a year by business and various economic experts.
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Illustration 2: CEO of Tesla Elon Musk

Product: This element help organization to determine the outcomes or product which is
sold to consumer. In addition to this, the selected firm deal with automotive, energy storage and
energy generation market. The company consider various phases of product development which
fulfil the corporative goal in this variable. They have expensive and creative range of product
and now some of product are ready to launch in various countries. They capture global market
with their range of product and uniqueness. Some of the product of the selected firm are
discussed below:
 Auto-mobile
 Electric car with the power train components
 Battery storage condition and these all are available in car
 Solar panels to use light energy to electric energy
The selected firm is dealing with electric car and vehicle. So, these components usually
help firm to show their focus in electric vehicle and help to seeking the growth opportunities.
The expansion of Tesla helps multinational business (Güngör 2018). This segment of strategies
helps to gain profit. Thus, innovation and product are design in very effective manner which
click the part of this to get marketing mix. In addition to this, the organization uses market
pricing strategies for its solar panel and other related product which is help in gaining the
competitive advantage in market.
3

Price: In the context with selected firm, they used to follow premium price strategies,
These price attract customer and help organization to gain profit. The company has to follow
these strategies as a brand. Some of the pricing strategies which is followed by firm is:
 Premium strategies Market oriented strategies.
Promotion: As per the selected firm, this is analysed that the promotion techniques are
used by organization in such way to create brand image in market. These strategies and practice
from the firm help to boost the global automotive form of business and influence the customer
expectation. The presentation and development of corporate brand are used in effective manner.
As according to this, Tesla used various promotional techniques in significance to growth of
business.
Viral marketing which is used by now day in very effective manner to create huge customer
base:
 Personal selling
 Public relation
 Sales promotion
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Illustration 3: marketing strategy
The aforementioned pictures reflects the marketing strategies which is used by
Tesla.

 Direct marketing
The selected firm is totally dependent on viral marketing. As per the recent time, they
usually involve in digital platform for their promotion (Lim 2018). They also used social media
platform as a promotional tool, they share their idea, thought and various events information to
their customer.
Place: This component of marketing help to gain more profit when the location and
venue are good. This help consumer to reach at appropriate location. While expanding with
product Tesla must need to expand their location which is by adding more location for their store
and outlets. Some of place are involves such as:
 Company owned stores and galleries
 Official company website for blogging
 Company owned service centre
 Charging stations of vehicle charging
Moreover, these venues help in reflecting the firm with various location as per view point
of customer. Thus, the place is also highlighting the criteria of marketing mix. This help to
control various sale and distribution of product.
5

The aforementioned pictures reflects the marketing strategies which is based on 4P's
Promotional mix used by Tesla
There are various promotional mixes are used by Tesla to promote their product and
services in market. As per this, the selected firm have recognition in global market which help
them to build brand image. In addition to this, Tesla uses promotional activities apart from this
they are against for TV advertisement and pushing their product onto consumer. Moreover, the
selected firm get promoted through word of mouth ( Pashootanizadeh and Khalilian 2018). They
used to follow indirect method by creating brand crowd which attract consumer to know about
product and influence potential customer to purchase.
Promotion through customer experiences: As per the organization, Tesla has been also
follow the referral program to encourage customer for their car and vehicle. In addition to this
they give exchanges referral program. The company usually offer various exchanges for referral
which is often evolving. At the end of October 2020, this program offering dollar 1000 in credit
as per the context with new Tesla car. These referral program help to build more and more
customer in their store. They usually develop creative price cut off techniques. This help to gain
profit and organization promote their product through this.
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Illustration 4: 4P's

The aforementioned pictures reflects the customer scenario after using Tesla car and
their service
Promotion through social media, and other media platforms: Tesla recently used
various promotional techniques through the social media. As per their, customer take a test drive
of new model of car by depositing 5000 dollars (Pashootanizadeh and et. al., 2018). This test
drive is usual but they provide and chance to understand the vision of firm from this, they
promote their car through this. They follow same method for Tesla model S3, and in return they
get positive review from the media which is basically MSN and Fox News. They help to share
good view and review which is work as word of mouth. This promotional technique used by firm
goes well they get positive response and review in their car.
There is also a factor which help firm to get unique automotive industry is its CEO Elon
Musk which make them differ from other. They also used to run various business in various field
like spaceX and Solar city. Through these companies the firm get cross promotional
opportunities for their vehicle industry. In addition to this, it help to get clear visibility for the
organization. Overall, the most advance cross promotional activities which was drive by Tesla by
launching of the Tesla roadster into space.
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Illustration 5: customer experiences

Usually their new product which is going to be launch in market are must taking in
consideration with aspect to digital. For example, Tesla is going to launch their new product that
is car, based on electric and batteries. So, on the basis of this, some of the images and picture are
posted on their official account of twitter and Instagram which help them to attract customer by
providing knowledge of feature and other driving videos. This help to formulate generate for
their car. The driving test video are designed by Tesla in such a way which create effective and
positive response through customer. As per this social media provide likes and dislikes option. In
this context this likes and dislike ratio is calculated to know about how people react on their new
innovation which is based on batteries on other.
At customer facing touchpoints (i.e. store/ offices/ reception areas): In context with Tesla, they
used to follow indirect communication with customer by their commercial which is published in
social media and digital platform. They also create various touchpoint to interact with customer
meanwhile Tesla have 438 store and 100 service centre this data is collected from year 2019.
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Illustration 6: Advertisement through media

The aforementioned pictures reflects that outlets and store of Tesla which designed in
effective to interact customer.
In external spaces (i.e. advertising billboards): As in present Tesla do not use any proper
billboards for advertisement. They used to spend 0 dollar in their advertisement and in face of
Tesla their competitor used to spend million dollar in TVs ads and advertisement.
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Illustration 7: Reception of Tesla
Illustration 8: Billboards of Tesla

Via digital platforms (i.e. websites, social media): As per this, Tesla used to deliver their
information or new launch product in various mode of communication. In this, they usually
interact with audience by website and social media. As discussed below how CEO Elon musk
interact with audience by taking their ideas and providing him best advise in their comment and
compliment. This indirectly works as promotional techniques.
The aforementioned pictures reflects that how Tesla grow their market.
Through third parties (i.e. news articles, analyst reports): Tesla used to promote their car and
new product through magazine and article. As per this, Tesla have their brand recognition in
which the analyst are active to review product and car which is launch or going to launch
because their unique ideas and innovation.
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Illustration 9: media