Marketing Management Report: Tesla's Marketing Mix and Strategies

This marketing management report provides an in-depth analysis of Tesla's marketing strategies. It examines Tesla's approach to the marketing environment, including its product development process, with a focus on the new SALONTA product. The report explores the 4Ps marketing mix (product, price, place, and promotion) and how Tesla utilizes each element. It also covers the Canvas model, data transformation, integration of results across business functions, and ethical considerations in decision-making. The analysis includes strategies like penetration and premium pricing, traditional and digital marketing, and the importance of customer relationships. The report references key marketing concepts and provides insights into Tesla's overall marketing approach.

Running Head: MARKETING MANAGEMENT
MARKETING MANAGEMENT

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Table of Contents
Survey of marketing environment..............................................................................................2
Company’s marketing strategy for new and existing product development process.............2
Product strategy..................................................................................................................2
Price strategy.......................................................................................................................2
Promotion strategy..............................................................................................................3
Place strategy......................................................................................................................3
Canvas model.........................................................................................................................4
Transforming data into valuable information............................................................................5
Integrate results across business functions.................................................................................6
Ethics in Decision Making.........................................................................................................6
Reference....................................................................................................................................8

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Survey of the marketing environment
Tesla product SALONTA
SALONTA is one going to be a product that will positively contribute to the success of Tesla.
It will support the interior system of electronic vehicles and also it will be used to reduce the
ill-effects of the automobiles on the environment.
Company’s marketing strategy for the new and existing product development process
Tesla has used 4P’s marketing mix strategy to operate its business process in the marketplace.
This marketing mix strategy has been used by the company to consider different factors to
such as product, price, place, and promotion (Aghazadeh, 2015). The said strategy facilitates
the development of the products and also it helps in achieving success. These are discussed
below:
Product strategy
In the current period, Tesla has focused on the quality of products and services to gain more
competitive advantages. Through this strategy, the organization delivers the best quality as
compared to its competitors as it would be effective to attract new and existing consumers. It
could also result in increasing the sustainability of the business in the marketplace
(Aghazadeh, 2015). Apart from this, it is generally believed that price is a significant
component that could directly be affected by the overall productivity of the firm. Hence, the
organization is required to consider it so as to gain higher competitive advantages.
It can be suggested that the organization can use the product differentiation strategy as it will
allow it to make its unique image in the market for its new products (Tesla product
SALONTA). The use of this strategy will enable Tesla to attract the new consumers by
ultimately enabling them to compare its products and services with others, in terms of
different elements named as quality, packing, price, and quantity before taking any buying
decision (Hutchinson, Donnell, Gilmore, and Reid, 2015).

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Price strategy
In the existing period, the organization has used penetration strategy for promoting their
goods and services. Penetration pricing is the kind of marketing approach that is practiced for
attracting the consumers to retain their consumers for having the goods and services of a firm.
This approach could enable the organization to offer products and services at the lower goods
and services (Aghazadeh, 2015). The lower cost could support to the consumer for increasing
their competition level. It is stated that this strategy could make a bond between the
consumers and organization, which will be effective for the attainment of the organizational
task. For the new product, the organization has concentrated on increasing its customers
hence the company will use the premium strategy for Tesla product SALONTA as it would
also facilitate to make a different image of the firm. From the market research, it is stated that
consumers could pay a higher price for any product if they get higher quality goods and
services. Thus, it is founded that an organization could increase their quality and make higher
competitive advantages (Homburg, Jozić, & Kuehnl, 2017).
Promotion strategy
For promoting their goods and service, Tesla has practiced traditional marketing as well as
digital marketing methods. It has used discounting methods, social media advertising and
various other methods to enhance the interest and awareness for its goods among the potential
customers in market. This method could allow Tesla to directly meet with their consumers
and comprehended their actual needs and desire as it would be effective in getting higher
competitive benefits. The social media is a source, which enables to directly meet with their
consumers (Baker & Saren, 2016).
Place strategy
Tesla has focused on various retailers and wholesalers for distributing its existing products
and services. Further, the organization will use online platform to deliver Tesla product

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SALONTA. The place strategy is effective for the attainment of the organizational objectives
(Baker & Saren, 2016).
Canvas model for Tesla product SALONTA
This model is effective to comprehend the people and function that are imperative for the
organization. The following canvas table demonstrates the business function as well as key
people of Tesco that will be considered for SALONTA as it discussed by the below table:
Key partners
 International and local
suppliers
 ZF (Germany) is the
key supplier of the firm
as it allows the firm to
have VW’s and Opel’s
electronic goods.
Key
activities
Customer
service
marketing,
Corporate
social
responsibilit
y acts for
social
welfare
Value
propositio
n
Reliable
functionalit
y, Ease of
employmen
t, and
higher
elasticity
distribution
Customer
Relationships
The organization
could use the
telephonic as well as
personal
conversation method
by which
organization directly
meet with their
consumer and
comprehended their
opinion and views
towards the goods
and services.
The organization
could also consider
social media sources
and get higher
Customer
segments
Automobil
e supplier
firm, B
To B,
private
organizatio
ns,
as well as,
automobile
service
firm

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competitive
advantages.
Key
Resources
Skilled
workforces,
Favorable
brand
image, and
R and D
department
Outcomes
Increasing
the firm
revenue by
considering
an
innovative
technique
Channels
Digital marketing
and innovative tool
as they consider
different sources
such as Twitter,
Cloud Computing,
and open source
CRM
Cost structure
Extensive R&D budget
Revenue Stream
Increase the demand for automobile products
and services
Transforming data into valuable information
For this, the market research development team has used the online sources to collect the
feedback method and get responses with respect to the products and services of Tesla. It is
illustrated that this method is imperative to comprehend some factors that affected to the
consumer buying behaviour named as service quality, customer relationship management,
and price strategy (Vargo & Lusch, 2014). It is illustrated that customer relationship

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management is also essential for a firm to operate the business and increase its productivity.
Thus, it is believed that the organization is required to focus on such factors to operate its
business effectively and launch its new product SALONTA (Bagozzi, Rosa, Celly, &
Coronel, 2018).
Integrate results across business functions
Tesla can use different approaches to operate the business in an ethical manner such as
undertaking CSR activities. The organization has undertaken CSR activities for the social
welfare. It could also be imperative in making a transparent relationship between an
organization and its employees (Bagozzi, Rosa, Celly, & Coronel, 2018). It is generally
realised that the organization could deeply evaluate these strategies and operate their business
effectively. The organization could also use training and development approach by which it
could improve customer relationship management skills of employees. Through this
approach, employees would be able to understand as how they must behave properly with
their customers in order to retain them. It could also be imperative to obtain higher
competitive advantages (Baker, 2014).
Ethics in Decision Making
In the current age, it is essential for the firm to consider the ethics in the decision making as it
promotes fair behavioural conduct with other employees. It enables an individual to behave
properly with others and get positive responses. Moreover, ethical decision-making processes
could be vital caused by making a reliable relationship with their consumers (Chernev,
2018). Tesla could concentrate on the social responsibility act that enables to firm for
conducting the ethical act in the business process and make the decision effectively. The
organization should always try to behave properly with their customers to retain them for the
long term. The management of Tesla must ensure that their decision do not harm others. For
considering the ethics in the decision making an organization could use the ethical norms and

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comprehend acts that could be entailed in the business acts. Thus it can be said that ethical
decision making could be vital for the attainment of the organizational success (Kotler,
Keller, Ang, Tan, & Leong, 2018).

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Reference
Aghazadeh, H. (2015). Strategic marketing management: Achieving superior business
performance through intelligent marketing strategy. Procedia-Social and Behavioral
Sciences, 207, 125-134.
Bagozzi, R. P., Rosa, J. A., Celly, K. S., & Coronel, F. (2018). Marketing-Management.
Walter de Gruyter GmbH & Co KG.
Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher
Education.
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.
Chernev, A. (2018). Strategic marketing management. Cerebellum Press.
Homburg, C., Jozić, D., & Kuehnl, C. (2017). Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science, 45(3), 377-401.
Hutchinson, K., Donnell, L.V., Gilmore, A., and Reid, A., 2015. Loyalty card adoption in
SME retailers: the impact upon marketing management. European Journal of
Marketing, 49(3/4), pp.467-490.
Kotler, P., Keller, K. L., Ang, S. H., Tan, C. T., & Leong, S. M. (2018). Marketing
management: an Asian perspective. Pearson.
Vargo, S. L., & Lusch, R. F. (2014). Evolving to a new dominant logic for marketing. In The
Service-Dominant Logic of Marketing (pp. 21-46). Routledge.