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Programme title Pearson BTEC Level 07 Diploma in Strategic Management and Leadership

Dr. Dillina Herath Ms. Hirnathi Rathnayake

Internal
Assessors Mr. Dinusha Liyanage Ms. Hiruni Weerakoon
Verifiers
Mr. K. Baharathey Mr. S. Aqeel

Unit Unit 05: Strategic Marketing Management

Assignment title Strategic Marketing Management Report

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 ASSIGNMENT BRIEF

BTEC Level 7 Diploma in Strategic Management and Leadership

Qualification Unit number and title

Pearson BTEC Level 7 Professional

Qualifications in Strategic Unit 5: Strategic Marketing Management

Management and Leadership

Student name Assessor name

Samil Chathura Samaraweera

Date issued Completion date Submitted on

18/03/2023 06/10/2029 07/10/2029

Assignment title Strategic Management and Leadership

Learner declaration

I certify that the work submitted for this assignment is my own and research sources are
fully acknowledged.

Learner signature: Samil Date:07/10/2023

 Assignment brief

Unit number and title Unit 5: Strategic Marketing Management

Pearson BTEC Level 7 Professional Qualifications in Strategic

Qualification
Management and Leadership

Start date

Deadline/hand-in 07/10/2023

Assessor

Assignment title Strategic Marketing Management in Organisations

Purpose of this assignment

In this assessment, learners will investigate how marketing plans are designed to
contribute towards an organisation’s mission and strategic objectives. They will consider
the management decisions that have to be taken when implementing different elements
of the marketing mix (product, price, people and place) and how marketing plans can be
monitored and controlled to maximise the benefits to the organisation and its
stakeholders.

Note: Though it is not compulsory, learners are encouraged to select different

organizations when addressing different units of the programme as it will
expose the learner for organizational mechanisms in varying organizational
contexts.

Scenario

The assignment will be ideally based on the learners’ own workplaces/job role and
require you to undertake in-depth research into an organisation. To address each section
of the assignment, you are to select, ideally the organization you work for, or any
another organisation you may be familiar with. It would be useful for you to choose an
organisation that is operating in an environment that requires it to refocus its marketing
strategy and associated tactics.
Section “A” (LO A and B AC A.1, A.2, A.3, B.1, B.2, B.3)

Assume that you are the marketing manager for the selected organization and the board
of directors has requested you to write a report titled “Links between strategic
marketing and corporate strategy of the Organisation”. This report will involve
identifying the corporate objectives of the selected organisation and then analysing the

links between these objectives and the various elements of the organisation’s marketing
strategy. You are expected to exhibit a good knowledge of the range of models that are
available and make an assessment of the value of the models used in strategic
marketing planning.

You are therefore expected to analyse the application of different theoretical marketing
models and marketing analysis techniques and how these models and techniques may
have influenced the development of an organisation’s marketing strategy.

Your report should have following areas addressed:

 Overview of the given organization and the industry sector it is situated in.

 An analysis of marketing goals that maybe set for the particular selected
organisation. (A1)

 An in-depth analysis on the processes involved in marketing management in the

organisation. (A2)

 Critical analysis of contribution of marketing management processes to the

achievement of corporate objectives of the organization considering feedback loops
to corporate decision-makers being used. (A3)

 Analysis of processes involved in strategic marketing in the light of the selected

organisation (B.1)

 Critical analysis the relationship between marketing management and strategic

marketing (B.2)

 An investigation of models used in setting strategic marketing objectives (B.3)

 List of references
Section “B” (LO C and D AC C.1, C.2, C.3, D.1, D.2, D.3)
The section B of the assignment requires you to explore the link between strategic
positioning, strategic management techniques and marketing tactics for the organization
you have selected in section A in the form of a “Marketing Strategy Evaluation Plan”.

You will need to apply the principles of strategic marketing and analyse the use of
strategic marketing techniques in the market the chosen organization is operating in. For
example, this could include the organisation’s response to stakeholder pressure including
the need to address socio-economic imperatives such as climate change and social
issues, as well as the impact of technology on both product design and the changing
nature of customer relationship management.

Further, it is required that you to undertake an impact analysis of the effectiveness of

the selected organisations ‘marketing strategy and the tactics it has used to achieve its
strategic objectives.

In the light of the chosen organsation, you are required to include the following in your
strategy evaluation document.

 An introduction about the selected organisations marketing strategy direction

 Investigation of strategic marketing techniques that can be applied by the

selected organisation (C.1)

 Application of the 7P marketing mix in the context of selected organisation (C.2)

 Selecting at least one another organisation operating in the same market the
selected organisation is operating in, evaluate the effectiveness of strategic
marketing tactics applied in these different organisations (C.3)

 Analysis of role and functions of marketing management in the context of

selected organisation (D.1)

 Critical evaluation of appropriateness of strategic marketing objectives pursued

by selected organisation the in the given market context (D.2)

 An impact analysis evaluating the effectiveness of marketing management in the

selected organisational context (D.3)

 List of references
Evidence Evidence
Summary of evidence required by student
checklist presented

To achieve learning outcome A, learners must identify the

specific marketing goals of an organisation and how these
goals contribute to the organisation’s strategic objectives
and overall mission statement. Learners must show how
the GOSPA corporate performance management process
could be applied to marketing management processes in a
specific organisational context and analyse how these
processes are coordinated across different functional areas
Section within a business. Learners must provide evidence that
“A” shows that they have a good understanding of the
processes involved in marketing management, including
the feedback loop to corporate decision-makers. To achieve
learning outcome B, learners must show a good
understanding of the application of strategic marketing
models in an organisational context. Learners must analyse
how marketing analysis techniques may have influenced an
organisation’s marketing strategy.

Learners must provide evidence of a market analysis, using

appropriate models and marketing analysis techniques,
based on an organisation operating in a specific market.
The analysis should be accompanied by an overview of the
implications of the learner’s own analysis for the
organisation’s marketing strategy and how far these match
those of the organisation’s marketing strategy.
 To achieve learning outcome C, learners must produce a
report that provides a range of evidence showing how
strategic marketing techniques have been applied by
organisations operating in the same or different market
sectors. This could cover aspects such as market
segmentation and profiling and the link with different
marketing strategies. Learners must show a good
understanding of the application of marketing tactics
Section applied in each of the components of the 4P marketing
“B” model and how the extended 7P marketing model
influences and impacts on an organisation’s marketing
tactics, including its corporate communications strategy.
To achieve learning outcome D, learners must identify how
changing factors within an organisation’s external
environment have impacted on its marketing tactics.
Learners must evaluate the effectiveness and
appropriateness of an organisation’s response to the
changing nature of its external environment. The evaluation
should be based on an in-depth analysis of the strengths
and weaknesses of its marketing management strategy and
its associated marketing tactics.

Learners must evaluate the effectiveness of an

organisation’s marketing tactics using appropriate
performance indicators mapped against an organisation’s
corporate objectives and, where possible, its own
performance targets.
General guidance about assessment evidence

The submission should be in the form of one document comprising two sections,
sections “A” and “B”. In section “A” you are required to produce an individual written
report titled “Links between strategic marketing and corporate strategy of the
Organisation”. In the section “B”, you are required to produce a “Marketing Strategy
Evaluation Plan”, ideally for the same organization you have selected for addressing the
section “A”. These documents should be written in a concise, formal business style using
1.5 or double line spacing and font size 12. You are required to make use of headings,
paragraphs and subsections as appropriate, and all work must be supported with
research and referenced using Harvard referencing system.

Report format- Please provide a referencing list using Harvard referencing system. The
recommended word limit is approximately 4,500 words for each of the sections though
you would not be penalized for exceeding word count.

Note to assessor
Sections “A” and “B” could be completed in 1 phase, assessed and returned to the
student with summative feedback
 Assessment Summary - Criteria and Summative Feedback

Achieved
LO Outcome(s) AC In this assessment you will have Section Yes/No Feedback
the opportunity to present (Indicate

page
evidence that shows you are
numbers)
able to:

A.1
Analyse the marketing goals that
may be set by an organisation

Understand the Analyse the processes

processes A.2 involved in marketing
A involved in management
marketing
management Critically analyse the
contribution of marketing
A.3
management to the
achievement of corporate
objectives
 B.1 Analyse the processes involved in
strategic marketing
Understand the
Critically analyse the relationship
tools used to
B.2 between marketing management
develop a
and strategic marketing
strategic
B marketing
Investigate the models used in
strategy B.3
setting strategic marketing
objectives
 Investigate the strategic marketing
techniques that can be applied by
an organisation
C.1
Understand
Investigate the application of the
how marketing
7P marketing mix
managers use
C.2
strategic
Evaluate the effectiveness of
C marketing
strategic marketing tactics applied in
techniques and
different organisations
tactics
C.3

Analyse the role and functions

D.1 of marketing management in an

Understand organisational context
how marketing Critically evaluate the appropriateness
management is
D D.2 of strategic marketing objectives in a
applied an given context
organisational
Evaluate the effectiveness of
context
D.3 marketing management in a given
organisational context
 Assessment Feedback

Formative Feedback: Assessor to Student

Action Plan

Summative feedback

Feedback: Student to Assessor

Assessor signature Date

Samil 29/07/2023
Student signature Date
Section "A"

Links between strategic marketing and corporate strategy at

Tesla Inc.

1
 Table of Contents

Introduction ............................................................................................................................3
An Analysis of Marketing Goals for Tesla, Inc. .................................................................... 4
Strategic Goals ....................................................................................................................... 4
Economic Goals ..................................................................................................................... 4
Psychographic Goals ..............................................................................................................4
An In-Depth Analysis of the Processes Involved in Marketing Management at Tesla, Inc. . 5
Goals ...................................................................................................................................... 5
Objectives ...............................................................................................................................5
Strategies ................................................................................................................................5
Plans ....................................................................................................................................... 6
Actions ................................................................................................................................... 6
Critical Analysis of the Contribution of Marketing Management Processes to the Achievement
of Corporate Objectives at Tesla, Inc. ....................................................................................7
Analysis of Processes Involved in Strategic Marketing in the Light of Tesla, Inc. ...............8
Critical Analysis of the Relationship between Marketing Management and Strategic Marketing
at Tesla, Inc. ......................................................................................................................... 10
An Investigation of Models Used in Setting Strategic Marketing Objectives for Tesla, Inc.11
Porter's Five Forces Analysis ...............................................................................................11
SWOT Analysis ................................................................................................................... 12
PEST Analysis ..................................................................................................................... 12
Conclusion ........................................................................................................................... 13
References ............................................................................................................................14

2
 Introduction

Tesla, Inc. is a world-famous corporation that operates at the intersection of the automotive and energy
sectors and whose mission is to help the world move toward more environmentally friendly means of
transportation. The company Tesla, co-founded in 2003 by Martin Eberhard and Marc Tarpenning and
currently run by CEO Elon Musk, has emerged as a front-runner in the race to create and market fully
electric vehicles (EVs). Thus, Tesla's success can be credited to both the quality of its products and the
strategic marketing approach it employs, both of which are in line with the company's larger business
goals. Tesla's success in disrupting the traditional auto industry and becoming a market leader in the
electric vehicle space can be better understood by looking at the relationship between the company's
strategic marketing and corporate strategy.

Tesla's stated mission is "to create the most compelling car company of the 21st century by driving the
world's transition to electric vehicles" ("The Mission of Tesla | Tesla"). Its primary objective is to hasten
the arrival of environmentally friendly transportation by producing affordable, high-quality electric
vehicles for the masses. ("Tesla's Goal | Tesla") These tenets form the bedrock of the company's strategic
and promotional efforts, and they perfectly capture the company's dedication to environmental
responsibility and technological advancement. Tesla has established a strong foothold in the industry
thanks to its novel product lineup, which includes not only automobiles but also solar power products and
energy storage systems. As of 2023, Tesla has established itself as a market leader in the electric vehicle
(EV) sector, which has been growing rapidly thanks to rising consumer interest in eco-friendly vehicles
and a policy-driven push toward EVs.

Tesla competes in the electric vehicle industry, which is undergoing rapid change due to the prevalence of
innovative technologies and increased levels of competition. Despite the infancy of the industry, it has
grown rapidly thanks to rising awareness of environmental degradation, rising fuel prices, and stricter
emission norms around the world. Traditional automakers making the switch to electric vehicles, as well
as innovative newcomers to the industry, all compete in this market.

Conversely, there are difficulties in the market. Key challenges for companies like Tesla include high
production costs, a limited driving range, and an underdeveloped charging infrastructure. The following
sections of this report will discuss how these industry-wide problems have influenced and informed
Tesla's strategic marketing efforts. Tesla is more than a player in the EV market; its strategic priorities of
innovation, sustainability, and customer service make it a major force in the industry's development.

3
 An Analysis of Marketing Goals for Tesla, Inc.

The electric vehicle industry's forerunner, Tesla, Inc., has established a wide range of marketing
objectives that are in line with its strategic, economic, and psychographic targets. These advertising
objectives, which reflect Tesla's larger mission and vision, have been crucial to the company's success and
helped establish it as a frontrunner in its field. Promoting the adoption of sustainable transportation and
growing Tesla's customer base are two of the company's primary marketing focuses. Tesla has been
successful in differentiating itself from rivals in the market by focusing on these goals and effectively
communicating the company's unique value proposition to consumers.

Further, Tesla's advertising has centred on highlighting the efficiency and innovation of its electric
vehicles, countering the widespread belief that they are inferior to their gasoline-powered counterparts.
Successfully positioning itself as a leader in the electric vehicle industry, Tesla has built a loyal and
dedicated customer base through strategic partnerships, innovative advertising campaigns, and a robust
online presence. Differentiating itself from the competition, Tesla sells its vehicles directly to customers
rather than through dealerships. Because of this, customers can enjoy an easy and tailored shopping
experience. Long-distance travel is now more appealing thanks to the elimination of range anxiety for
electric vehicle owners thanks to Tesla's extensive Supercharger network. Correspondingly, Tesla's
dominance in the electric vehicle market can be attributed to the company's unwavering dedication to
innovation, sustainability, and customer satisfaction.

Strategic Goals
Tesla's commitment to leading the world's transition to sustainable energy is central to the company's
strategic marketing goals. Tesla's strategy is to lead the market by releasing innovative, game-changing
products in the areas of electric vehicles and renewable energy. Therefore, Tesla's mission is to produce
and sell more electric vehicles than any other manufacturer, demonstrating its desire for market leadership
in the electric vehicle sector. Growing and diversifying one's target market is yet another important
marketing objective. Recent expansions into China and India demonstrate Tesla's strategy to expand into
emerging markets and strengthen its global foothold. Its aggressive expansion plans, which include
building gigafactories on multiple continents, show that the company intends to meet local demand and
avoid logistical hurdles by doing so.

Economic Goals
Tesla's marketing initiatives are driven by economic considerations, especially the maximization of
revenue and the minimization of expenses. Tesla's early years were marked by heavy investment and
subsequent losses, but the company has been steadily increasing its profits as of late, which is indicative
of the maturation of its business model and the growing popularity of electric vehicles.

Tesla's efforts to improve battery technology are also directed at lowering production costs. Plans for a
new battery cell, to be unveiled at Tesla's 2020 Battery Day event, are said to significantly reduce costs,
and increase vehicle range. Tesla's goal of hastening the global shift to renewable energy is consistent
with the company's decision to reduce the cost of its electric vehicles.

The expansion of sales is another essential aim of economic marketing. Despite macroeconomic
upheavals in the past, Tesla has consistently increased its annual vehicle delivery numbers.

4
Psychographic Goals
Tesla's brand image as an innovator in electric vehicle technology and environmental responsibility is
central to the company's psychographic marketing efforts. Because of its innovative and high-performing
vehicles like the Model S, Model 3, and Cybertruck, as well as its Autopilot features, Tesla has become
synonymous with innovative technology and progress.

Tesla places a premium on customer happiness and loyalty. Tesla's emphasis on providing exceptional
after-sales service via over-the-air updates and direct customer communication, as well as the company's
direct sales model, which enables customers to customize their vehicles and receive them directly from
the manufacturer, are examples of the company's commitment to customer satisfaction.

Tesla also hopes to broaden public understanding and support for electric vehicles. Tesla has taken steps
toward this goal, such as making its patents available for fair use and providing a wealth of informational
material on electric vehicles. Tesla's marketing aims to support the company's strategic, economic, and
psychological objectives. Tesla's mission and vision are in perfect harmony with the company's strategic
goals of growth, diversification, and market leadership; its economic goals of profitability, cost reduction,
and sales growth; and its psychographic goals of increasing brand awareness, improving brand image, and
increasing customer satisfaction. Using the SMART (Specific, Measurable, Achievable, Relevant, and
Time-bound) framework, each of these objectives has been developed and is being pursued to ensure that
they are realistic, trackable, and helpful in realizing Tesla's overarching goals. In the following section,
we will take a closer look at Tesla's marketing management processes against the backdrop of these
marketing objectives.

An In-Depth Analysis of the Processes Involved in Marketing Management at

Tesla, Inc.

Considering Tesla's marketing strategy, a comprehensive understanding of how Tesla applies the GOSPA
(Goals, Objectives, Strategies, Plans and Tactics) organizational performance management process to its
marketing management process can be obtained. How Tesla's marketing management aligns with GOSPA
can be summarized as follows.

Goals and Objectives:

Tesla's primary goal is to create the most compelling car company of the 21st century by driving the
world's transition to electric vehicles. Also, their marketing objectives include creating brand awareness,
generating interest in electric cars and increasing market share.

Strategies:
Tesla seems to be following a few key strategies in terms of its marketing approach:
A status-based product: Tesla markets its electric vehicles as status symbols, enticing customers with the
allure of owning an ecologically responsible, high-performance vehicle. This method is consistent with
Tesla Motors' objective of encouraging sustainability while producing innovative goods.

5
Customer Experience: Tesla prioritizes offering a great customer experience and relies significantly on
word-of-mouth marketing. To establish brand loyalty and attract future consumers, they focus on product
quality, innovative technology (e.g., autopilot), and customer happiness.
Social Media Marketing: Tesla is generating excitement and building a strong online presence by
exploiting CEO Elon Musk's social media activity. Elon Musk's social platform serves as a marketing tool,
and his posts frequently have an impact on Tesla's stock price, proving the efficacy of this technique.

Plans and Tactics:

Tesla uses a diverse product lineup, including three distinct models (Model S, X, and 3) to cater to
different customer segments and achieve market penetration. The company sells its vehicles directly
through online channels and company-owned stores, eliminating third-party dealerships and streamlining
the purchasing process. Tesla's premium pricing strategy, despite high prices, remains strong due to
innovative technology and eco-friendly branding. The company also actively engages with its audience on
social media, sharing updates, conducting launch events, and using humor to maintain an active online
community.

Control and Performance Monitoring:

Tesla uses control processes to monitor key performance indicators (KPIs), such as sales metrics,
customer satisfaction, online engagement metrics, and stock price impact. Sales metrics track sales and
market share, while customer satisfaction measures satisfaction and improves marketing strategies.
Online engagement metrics measure social media engagement, while stock price impact is an indirect
indicator of marketing effectiveness. These measures help Tesla gauge the success of its marketing
strategies.
Tesla swiftly implements and responds to market feedback, adjusting pricing strategies and product
offerings. The company communicates transparently with its audience, addressing concerns and sharing
updates. The marketing management processes are closely coordinated with other functional areas, such
as product development, sales, and customer service, ensuring a seamless customer experience through
the direct sales model.
As a conclusion, Tesla's marketing management aligns with GOSPA's corporate performance
management process, focusing on setting clear goals, developing strategies, implementing plans,
monitoring performance, taking remedial actions, and providing feedback to decision-makers to support
its mission of promoting sustainable energy solutions and electric cars.

6
Critical Analysis of the Contribution of Marketing Management Processes to
the Achievement of Corporate Objectives at Tesla, Inc.

The GOSPA model informs Tesla's marketing management processes, which in turn have helped the
company advance its mission of spreading awareness of the benefits of renewable energy and
revolutionizing the transportation industry. Tesla's innovative advertising and paradigm-shifting business
model are the results of fruitful cooperation between the company's overarching goals and marketing
management processes. Marketing management begins with the establishment of objectives, which align
with Tesla's overarching business goal of hastening the spread of sustainable energy. Tesla has set the
stage for future marketing efforts that put an emphasis on innovation, customer experience, and
sustainability by declaring their intent to completely transform the transportation and energy industries.

In the GOSPA framework, goals are expressed as quantitative benchmarks that contribute directly to
Tesla's overarching business objectives. For instance, Tesla's plan to manufacture half a million vehicles
by 2020 contributed to the company's overarching objective of making electric vehicles more mainstream.
Despite the global pandemic's obstacles, Tesla not only met but surpassed this goal, demonstrating the
successful alignment between marketing management processes and corporate objectives.

Tesla's direct-to-consumer sales and minimal advertising approach stand out from the crowd and help the
company reach its goals by improving the customer experience and strengthening brand loyalty. To better
align their marketing efforts with their strategic goal of continuous improvement and innovation, Tesla
has established this direct connection, which allows for a faster feedback loop and thus allows them to
rapidly adjust to customer needs and market trends.

Building Gigafactories to achieve economies of scale or improving Autopilot features to ensure safer
driving are examples of how Tesla's GOSPA model is put into action through the planning process. Plans
like these are essential to achieving Tesla's corporate goals because they allow the company to lower
production costs, boost output, and enhance its product lineup.

The corporate goals of increasing Tesla's customer base and strengthening the company's position as a
leader in electric vehicle technology are intrinsically linked to the marketing management actions of Tesla,
such as the introduction of new vehicle models, the expansion of Supercharger networks, and the
introduction of software updates.

Particularly, the feedback mechanisms at Tesla play a crucial role in connecting the dots between
marketing management processes and overall business objectives. The company makes extensive use of
customer feedback to enhance its offerings. This two-way conversation between the market and the
company's decision-makers allows for rapid iteration and improvement that advance business goals.
Tesla's goal of building a user-centric brand is bolstered by the company's openness to feedback through
channels like social media and customer forums.

As a company, Tesla's mission is to hasten the arrival of sustainable energy, and its open-source approach
to its patent portfolio is a novel feedback mechanism for the industry. Tesla's decision to license its
patents to rival automakers is part of a positive feedback loop that promotes the industry's transition
toward sustainable transportation and, eventually, benefits Tesla.

7
Tesla, Inc.'s marketing management processes are tightly coordinated with the business's overall
objectives. Together, Tesla's well-articulated goals, measurable targets, innovative strategies, meticulous
planning, decisive actions, and effective feedback mechanisms have helped the company achieve its
objectives. Using the GOSPA framework for marketing management, Tesla has established a fruitful
partnership between its marketing efforts and the company's overarching objectives, putting it at the
forefront of the clean energy movement. In the following section, we will dive even deeper into an
examination of Tesla's strategic marketing procedures.

Analysis of Processes Involved in Strategic Marketing in the Light of Tesla,

Inc.

Strategic marketing is a crucial aspect of an organization's business strategy, aiming to align marketing
activities with long-term goals to gain a sustainable competitive advantage, as Tesla's approach focuses
on creating a unique, customer-centric experience. Strategic marketing key definitions and concepts
include:

 Strategic marketing, according to Philip Kotler, is "the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market at a profit."
 Hugh Davidson: In strategic marketing, Davidson emphasizes the need of segmentation, targeting,
and positioning (STP). Tesla addresses environmentally concerned buyers searching for high-
performance electric automobiles in a strategic manner.

Role and importance of strategic marketing in Tesla

Strategic marketing is critical to Tesla's success. It directs the company's efforts to accelerate the world's
transition to sustainable energy. Here's why Tesla needs smart marketing, Tesla's strategic marketing
aligns with its aim of sustainability and clean energy, ensuring a consistent brand image. Its customer-
centric approach builds loyalty and advocacy, leading to increased sales. In a crowded EV market, Tesla's
smart marketing emphasizes innovation, personalization, and after-sales service. Strategic marketing
helps Tesla efficiently allocate resources by finding potential target groups and channels.

Systematic Approach
Tesla's marketing strategy involves a systematic approach, including market analysis, customer
segmentation, and a value proposition based on eco-friendly innovation, high performance, and superior
customer experience. The company designs and develops innovative electric vehicles, positioning them as
premium offerings. Tesla uses an online sales model and company-owned stores, eliminating
intermediaries. Promotion is primarily through word-of-mouth, social media, and Elon Musk's Twitter
engagement. This approach helps Tesla maintain a competitive edge in the electric vehicle market.

Integration of Activities: Tesla combines multiple marketing tactics to offer a unified consumer
experience:

 Innovative product design and development meet the demands of customers.

 Online sales and personalization choices make purchasing a breeze.

8
  Customer satisfaction is increased via after-sales service, which includes mobile technicians and
supercharging stations.

Resource Requirements: Tesla invests a lot in research and development (R&D) to preserve its
competitive advantage. It will spend about $2.59 billion on R&D in 2021. Furthermore, the organization
focuses on developing a strong online presence and increasing client involvement through social media.

Timescales: Tesla's strategic marketing strategies are ongoing and long-term, focusing on product design,
customer support, and brand building.

Monitoring and Control Elements: Tesla monitors key performance indicators (KPIs) like sales,
customer satisfaction, and social media engagement to evaluate the effectiveness of its marketing
strategies and take swift remedial actions based on results, demonstrating responsiveness to customer
feedback.

Processes related to strategic marketing at Tesla:

Market study, consumer segmentation, value proposition formulation, and resource allocation are all part
of Tesla's strategic marketing planning process. It establishes goals such as gaining market leadership in
electric cars, maps its brand perception against rivals, analyzes internal and external variables, assesses
numerous marketing possibilities, and chooses the best techniques. Tesla is putting these principles into
action, with an emphasis on innovation, online sales, and consumer involvement. It constantly monitors
key performance indicators (KPIs) and client input to regulate and fine-tune its marketing operations.

9
 Critical Analysis of the Relationship between Marketing Management and
Strategic Marketing at Tesla, Inc.
When guiding a business towards its objectives, the connection between marketing management and
strategic marketing is crucial. The interplay between these two spheres is a key factor in Tesla, Inc.'s
meteoric rise to the top of the worldwide auto industry.

Management in marketing refers to the steps taken to organize and direct a company's marketing efforts.
It is the process of putting marketing principles into practice across an organization. Strategic marketing,
on the other hand, is a methodical approach that centres on harmonizing the company's marketing
objectives with its overall business objectives. Profitable markets are identified, consumer wants and
needs are uncovered, and the company's strengths are leveraged to meet these demands.

Tesla's marketing strategies feed back into marketing management, creating a cyclical relationship
between the two. The cohesiveness of Tesla's approach is evident in the company's innovative advertising.
The decision by Tesla to forego the use of dealerships in favour of direct sales was an example of a
strategic marketing move that necessitated adjustments to the company's marketing management
processes.

Tesla's overall corporate goal is to challenge the status quo in the automotive industry, so this strategic
decision makes sense. This approach helps Tesla's financial situation and brand reputation by
streamlining the shopping experience. Tesla has implemented a system of marketing management
processes to manage its unique sales strategy, which involves coordinating online sales, direct customer
communication, and service centre operations.

Tesla's "no advertising" policy is a well-planned marketing strategy based on the company's dedication to
its mission of upending established markets. Management at Tesla's marketing department has decided to
forego traditional advertising in favour of public relations, social media, and Elon Musk's considerable
personal influence. This method is consistent with Tesla's unconventional and forward-thinking brand
image and helps the company save significant resources that can be redirected towards R&D, again
reflecting Tesla's overarching corporate goals.

Tesla's over-the-air software updates are another example of a well-thought-out marketing campaign that
serves to set the company apart from rivals while also increasing value for customers. From a marketing
management standpoint, these changes necessitate procedures for setting reasonable customer
expectations, communicating clearly about the features added by the update, and resolving any issues that
may arise.

Tesla's creation of a full EV ecosystem, including Supercharger stations and energy products like solar
panels and powerwalls, is another marketing strategy the company actively pursues. The company's larger
goal is to hasten the worldwide adoption of renewable energy sources, so this fits in with that goal.
Because of the variety of products available, marketing managers must coordinate the promotion of
numerous products, each of which may have its own target market and selling point.

Proportionally, strategic marketing and marketing management at Tesla are intertwined and mutually
beneficial. The company's unique strategic marketing decisions necessitate the development of innovative
marketing administration techniques. The strategic marketing planning process receives feedback on the

10
practical difficulties and insights gained from these marketing management activities. Because of this
partnership, Tesla has been able to consistently set itself apart from the competition, provide value to its
customers, and make considerable progress toward its overarching business goals.

The next section will discuss the frameworks Tesla has employed to establish its strategic marketing
objectives, providing even more insight into how the company has shaken up the auto industry and
established itself as a frontrunner in the electric vehicle market around the world.

An Investigation of Models Used in Setting Strategic Marketing Objectives

for Tesla, Inc.

Strategic marketing models provide a useful lens through which to view Tesla, Inc.'s method for
achieving its marketing objectives. This discussion will centre on three models: the PEST, SWOT, and
Porter's Five Forces frameworks.

Porter's Five Forces Analysis

Force Application to Tesla

Due to the need for significant initial investment, advanced technology, and the
Threat of New ability to comply with complex regulations, the electric vehicle (EV) market has a
Entrants high barrier to entry. However, the shift to EV production by conventional
automakers is a threat to Tesla.
Since components like lithium-ion batteries are so rare and specialized, Tesla's
Bargaining Power
suppliers hold only a moderate amount of sway. But if Tesla starts making its
of Suppliers
own batteries, that might cut down on their output.
Customers' agency is about average. Tesla has pricing power thanks to the
Bargaining Power distinctiveness of its brand and the quality of its products. The power of
of Buyers consumers, however, may increase as the EV market expands and competition
heats up.
Threat of Electric vehicles have primarily gasoline- and diesel-powered alternatives.
Substitute However, this threat is dwindling as people become more aware of environmental
Products issues and as electric vehicle infrastructure improves.
Rivalry Among Competition in the EV market is heating up as both established automakers like
Existing General Motors and Ford and upstarts like Rivian and Lucid Motors make
Competitors significant investments in the technology.

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SWOT Analysis

Factor Application to Tesla

The pioneering position in the EV market, innovative technology and software, strong
Strengths brand image, and streamlined business model are all areas in which Tesla excels
(including the Supercharger network and energy storage products).
Production costs that lead to soaring prices, inadequate quality control, and over-
Weaknesses
reliance on the controversial but charismatic Elon Musk are all negatives for Tesla.
Tesla has a lot of room to grow thanks rising environmental awareness, regulatory
Opportunities support for EVs, improved charging infrastructure, and the opening of new markets
like India and Eastern Europe.
Significant challenges for Tesla include rising competition in the electric vehicle
Threats
market, potential regulatory hurdles, and global economic uncertainty.

PEST Analysis

Factor Application to Tesla

Politics has an impact on Tesla in the form of trade and emission policies, as well as
Political
rebates and other subsidies for electric vehicles.
Global economic conditions, exchange rates, and consumer purchasing power are all
Economic examples of economic factors. The switch to sustainable energy may increase demand
for renewable energy products and electric vehicles.
The increasing interest in sustainability, the shift in public opinion about EVs, and the
Social
changing preferences of consumers all have significant effects on Tesla's business.
Tesla's business strategy is predicated on technological developments such as better
Technological
batteries, autonomous vehicles, and renewable energy.

These strategic models are crucial for understanding Tesla's long-term advertising objectives.
Opportunities and strengths highlighted in these analyses are in line with the company's focus on
technological innovation, environmental sustainability, and a customer-centric value proposition, and the
company's initiatives, such as developing in-house battery production, reflect an initiative-taking
approach to addressing identified threats and weaknesses. The analysis using these models demonstrates
that Tesla's strategic marketing objectives are based on a deep understanding of the company's internal
capabilities and external environment. And Tesla's long-term goal of making the world a better place
through sustainable innovation is consistent with the company's strategic marketing goals. Tesla's goal is
to revolutionize the auto industry and spearhead the shift to electric vehicles through its focus on
technological innovation. In addition to manufacturing electric vehicles, the company is also making
strides in the development of renewable energy solutions like solar panels and energy storage systems,
demonstrating its dedication to environmental sustainability. Tesla's approach to sustainability is

12
comprehensive, which helps the company stand out in the market and appeal to eco-conscious customers.
The company's customer-centric value proposition is a major driving force behind Tesla's marketing.

Conclusion

This analysis of Tesla, Inc.'s marketing management and strategic marketing processes has illuminated
the company's approaches to coping with a dynamic business environment. Tesla's revolutionary
marketing strategy and innovative alignment with strategic goals are integral to the company's success.

The mission of Tesla, which is to hasten the global transition to sustainable energy, has influenced the
company's strategic, economic, and psychological objectives. Tesla's marketing prowess is on display in
the company's ability to appeal to customers who are environmentally conscious without sacrificing the
company's overall economic growth objectives.

The use of the GOSPA model in Tesla's marketing management function is indicative of the company's
dedication to methodical preparation and performance. Objectives are specified; targets are established;
strategies and plans are developed; and finally, progress is monitored and evaluated in detail.

Tesla's marketing management procedures are a key factor in the company's success in reaching its
objectives. Tesla has built-in feedback mechanisms to make sure that market trends and customer needs
directly inform business decisions. Tesla's success in an increasingly competitive market can be attributed
to the company's iterative cycle of listening, adjusting, and innovating.

Combining customer-centric tactics with a larger strategic vision, Tesla's marketing strategy highlights
the company's uniqueness and competitive advantage through a mix of traditional and non-traditional
techniques. Tesla's marketing management and strategic marketing work together in harmony to grow the
company's reputation and customer base.

A thorough comprehension of Tesla's positioning and future course was uncovered through research into
strategic marketing models. The Porter's Five Forces Analysis, the Strengths, Weaknesses, Opportunities,
and Threats (SWOT), and the Political, Economic, Social, and Technological (PEST) analyses provided a
framework for assessing Tesla's external and internal environments.

Tesla's distinct brand identity can be attributed to the company's forward-thinking approach to market
positioning and strategic marketing management. These procedures will be critical in shaping Tesla's
future trajectory and maintaining market leadership as the company continues to navigate an increasingly
competitive landscape. This analysis helps shed light on the marketing strategy that sets Tesla apart in the
electric vehicle market.

13
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October 2023].

Jennewine, T. (2023). The ‘Magnificent Seven’ Stocks Are Soaring Toward a Bull Market: 2
Ideal Index Funds to Buy Now. [online] The Motley Fool. Available at:
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[Accessed 06 October 2023].

Light, L. (2020). The Natural: Elon Musk’s Non-Traditional Approach To Tesla Advertising.
[online] Forbes. Available at: https://www.forbes.com/sites/larrylight/2020/06/01/the-natural-
elon-musks-non-traditional-approach-to-tesla-advertising/.[Accessed 06 October 2023].

Musk, E. (2006). The Secret Tesla Motors Master Plan (just between you and me). [online] Tesla.
Available at: https://www.tesla.com/blog/secret-tesla-motors-master-plan-just-between-you-and-
me.[Accessed 06 October 2023].

Naughton, N. (2023). Tesla has been exaggerating its vehicles’ potential driving distance for
years by rigging their range-estimating software, report says. [online] Business Insider.
Available at: https://www.businessinsider.com/tesla-is-rigging-its-battery-range-estimates-
reuters-reports-2023-7?international=true&r=US&IR=T [Accessed 06 October 2023].

Sagstrom , J. (2023). A Tale of Two Global brands: What Tesla and Airbnb Teach Us about
Marketing Extremes. [online] The Drum. Available at:
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teach-us-about-marketing-extremes [Accessed 06 October 2023].

Tesla (2019a). Cybertruck. [online] Tesla. Available at:

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Tesla (2019b). Model X | Tesla. [online] Tesla.com. Available at:

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Tesla (2019c). Solar Panels | Tesla. [online] Tesla.com. Available at:
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Tesla (2021). Model S | Tesla. [online] Tesla. Available at:

https://www.tesla.com/models.[Accessed 06 October 2023].

Tesla (2022). Supercharger | Tesla. [online] Tesla. Available at:

https://www.tesla.com/supercharger.[Accessed 06 October 2023].

Tesla (2023a). About Tesla. [online] Tesla. Available at: https://www.tesla.com/about.[Accessed

06 October 2023].

Tesla (2023b). Megapack | Tesla. [online] www.tesla.com. Available at:

https://www.tesla.com/megapack.[Accessed 06 October 2023].

Tesla (2023c). Tesla Powerwall. [online] Tesla.com. Available at:

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The Economist (2023). Tesla’s surprising new route to EV domination. [online] The Economist.
Available at: https://www.economist.com/business/2023/07/18/teslas-surprising-new-route-to-
ev-domination [Accessed 06 October 2023].

buildd (2022). Tesla marketing strategy - How Tesla advertising runs on a $0 budget. [online]
buildd. Available at: https://buildd.co/marketing/tesla-marketing-strategy.[Accessed 06 October
2023].

Oxford College of Marketing Blog. (2018). Strategic Marketing, Tactical Marketing: Key
Definitions and Differences. [online] Available at:
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Shastri, A. (2022). Power-up Analysis on Tesla Marketing Strategy | IIDE. [online] IIDE.
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Section "B"

Marketing Strategy Evaluation Plan for Tesla Inc.

Table of Contents

Introduction ..........................................................................................................................17

Investigation of strategic marketing techniques that can be applied by Tesla Inc. ..............18

Application of the 7P marketing mix in the context of Tesla Inc. ....................................... 20

Evaluation of the effectiveness of strategic marketing tactics applied by Tesla Inc. and other

organisations operating in similar markets .......................................................................... 23

An analysis of the role and functions of marketing management in the context of

Tesla Inc. ..............................................................................................................................24

Critical evaluation of the appropriateness of strategic marketing objectives pursued by

Tesla Inc. in the given market context. ................................................................................ 25

An impact analysis evaluating the effectiveness of marketing management for Tesla Inc. 26

Conclusion ........................................................................................................................... 27

References ............................................................................................................................28

16
 Introduction

The electric vehicle (EV) market is booming, and Tesla Inc., is at the forefront of this revolution
thanks in large part to the company's innovative marketing strategy that eschews traditional
advertising in favour of utilising technology, public relations, and the celebrity of its CEO.
"Accelerate the advent of sustainable transport by bringing compelling mass market electric cars
to market as soon as possible" is at the core of the company's marketing strategy.

Tesla's focus on being unique is central to the company's strategy. The goal of this strategy is to
create innovative electric vehicles and energy solutions that set new standards in customer
satisfaction, sustainability, and efficiency. Tesla's products represent more than just automobiles;
they represent a cultural shift towards eco-friendly practises and innovative innovation. The
company also uses a model of direct sales to consumers rather than going through dealerships, so
that customers can have a more tailored shopping experience.

In the highly competitive auto industry, Tesla's decision to use a completely free advertising
strategy stands out. Instead, the company places an emphasis on publicity and word-of-mouth
advertising. Elon Musk, CEO of Tesla, has played a pivotal role in the company's advertising
strategy. Musk, a famous tech mogul and one of the wealthiest men in the world, has
successfully used his massive social media following to generate excitement about Tesla's
products and cultivate a dedicated fan base.

Tesla uses technology, such as digital showrooms and configurators, to let customers tailor their
new car to their exact specifications before they buy it. Additionally, the company places an
emphasis on openness, extending invitations to customers to learn more about their vehicles
through open-door factory tours, which increases customer engagement and brand loyalty.

Tesla's unconventional strategy has paid off by expanding the reach of electric vehicles beyond
their original niche. The company's growth and market dominance are the result of a well-
executed marketing strategy that prioritises issues of sustainability, innovation, the quality of the
customer experience, and the creation of recognisable brands. When taken together with Tesla's
overarching mission, these strategies have put the company in a position of unparalleled
leadership in the worldwide shift towards environmentally friendly modes of transportation.

17
 Investigation of strategic marketing techniques that can be applied by

Tesla Inc.

Tesla Inc. uses a variety of unconventional approaches to advertising compared to its peers in the
auto industry. This analysis of Tesla's marketing efforts centres on four primary areas:
establishing a marketing strategy and goals, identifying and categorising target markets,
determining how to best position those markets, and cultivating and maintaining relationships
with those markets' customers.

Setting Marketing Objectives and Marketing Strategy:

Marketing-wise, electric vehicles and renewable energy products are at the heart of Tesla's
efforts to usher in a better tomorrow. In line with this goal, Tesla's marketing strategy centres on
the development of distinctive and original products. The strategy combines efforts to expand
into new markets, improve existing ones, and innovate in existing ones. Improvements to Tesla's
electric vehicles and other offerings are a clear indication of the company's dedication to product
development. Tesla's zero-dollar advertising policy and reliance on word of mouth and free
media coverage have allowed the company to gain significant market share without spending a
dime on advertising. As Tesla continues to grow, it is entering new markets around the world to
share its distinctive product.

Targeting and Segmenting Markets:

Tesla's approach to market segmentation is primarily based on demographic and psychological

factors. The company's ideal customers have a high disposable income and are also
environmentally conscious. Initially, Tesla catered to affluent consumers who were interested in
high-end electric vehicles with products like the Model S. By releasing the Model 3, Tesla is
targeting a wider audience that may be interested in buying cheap electric cars. It is notable that
consumers who care about performance, safety, and utility in addition to environmental
sustainability are drawn to Tesla vehicles. For example, a young professional with a high
disposable income and a concern for the environment may have initially been interested in
purchasing a Model S to align with their values. They previously could not afford an electric
vehicle, but with the release of the more reasonably priced Model 3, they no longer must settle.
By appealing to a broader audience, Tesla can win over more buyers concerned with
environmental friendliness and product excellence.

Positioning Segmented Markets

Tesla has taken a firm stance in its market. Superior technology, performance, and design help
the company position itself as a luxury brand that cares about the environment. This dual
positioning separates Tesla from the competition in the minds of buyers. The company's long
range, over-the-air updates, and innovative Autopilot feature further solidify its position as an
industry pioneer in technological innovation.

18
Luxury car enthusiasts who place a premium on both performance and environmental
friendliness can find much to love in Tesla's Model S. Tesla has successfully cornered a market
segment that places a premium on superior product quality and environmental consciousness by
offering electric vehicles that can compete with the performance of conventional luxury vehicles.
Further solidifying Tesla's leadership in sustainability and innovative technology, the company's
dedication to pushing the boundaries of innovation in the automotive industry is on full display
with the regular releases of new software and developments in autonomous driving technology.
Not only have Tesla's electric vehicles changed the world, but so have the company's Powerwall
and Powerpack energy storage and management systems. Homeowners and businesses alike can
benefit from these innovative items by collecting and storing energy generated from renewable
sources like solar panels. This helps create a more sustainable and efficient energy grid while
also decreasing reliance on fossil fuels. Tesla has established itself as an industry leader in green
technology thanks to its comprehensive approach to sustainability.

Customer Relationship Marketing (CRM):

Providing memorable interactions is central to Tesla's customer relationship management efforts.

Tesla has total control over the customer experience because it interacts with them directly
through company-owned stores and service centres. This has allowed Tesla to cultivate lasting
connections with its clientele, as evidenced by the devoted following the Tesla brand has
garnered. The company also makes use of digital mediums to keep in constant contact with its
clientele. For instance, Tesla keeps customers interested and enthusiastic by regularly emailing
them about software updates and new features. The company's strong social media presence also
facilitates customer engagement with Tesla and other Tesla owners, fostering brand advocacy
and loyalty.

One of Tesla's main selling points is the company's commitment to innovation. This can take
many forms, such as the enhancement of already existing products or the launch of brand-new
services. Tesla's product innovation goes beyond just their automobiles and into ancillary areas,
such as their proprietary Supercharger network, which provides high-speed charging to Tesla
owners.

Elon Musk, CEO of Tesla, has a sizable online presence that the company plans to exploit as part
of its marketing strategy. Musk's status as a trailblazing businessperson and his enormous online
following on sites like Twitter have been invaluable in drawing attention to Tesla's products in
the media and among consumers without having to spend money on traditional advertising.

Tesla's marketing strategies have a unique focus on resiliency, customer involvement, innovation,
and the incorporation of digital tools. Tesla's growth and success in the global electric vehicle
market can be attributed in large part to these unconventional strategies. Tesla's marketing
department clearly adapted tried-and-true methods to fit the company's novel business strategy
and market position.

19
 Application of the 7P marketing mix in the context of Tesla Inc.

Tesla's marketing strategy can be seen in its entirety through the lens of the 7 Ps of the marketing
mix framework. The 7Ps model provides a more comprehensive understanding of the company's
strategic approach by going beyond the conventional 4Ps (Product, Price, Place, and Promotion).

Product:

Tesla's success can be directly attributed to the company's product strategy. The business
provides numerous choices in electric vehicles (EVs), solar panels, and battery packs.
Exceptional performance and environmental sustainability are at the heart of every design
decision. When compared to other electric vehicles (EVs), Teslas are revered for their superior
acceleration, innovative autopilot features, and extensive ranges. They also have the unique
ability to receive upgrades wirelessly. The Model S from Tesla is a popular example because of
its quick acceleration (it can go from 0 to 60 mph in just 2.3 seconds). Sports car fans who care
deeply about both speed and the environment have taken notice of this vehicle's remarkable
performance. The Hornsdale Power Reserve in Australia is just one example of where Tesla's
energy storage solutions have been used, where they have helped stabilise the grid and cut down
on the need for fossil fuel-based backup power plants.

Price:

Tesla's initial pricing strategy was one of "skimming," in which the company entered the market
with extremely expensive luxury vehicles like the Model S. The soaring prices at which these
were sold helped the company boost its image and recoup some of the money it had invested in
its extensive research and development efforts. To reach a wider audience and hasten the
transition to sustainable transportation, Tesla has recently moved towards more affordable
pricing with the Model 3 and the upcoming Model 2. The introduction of the high-performance
electric sedan Model S by Tesla at a premium price attracted wealthy early adopters who valued
the car's advanced technology and opulent amenities. This allowed Tesla to cement its position
as the industry leader in electric vehicles and generate revenue for R&D. With the introduction
of the Model 3, Tesla's price point was reduced, making the company's products more accessible
to a wider audience, and thereby boosting the overall electric vehicle market. Increased demand
and sales for Tesla resulted from the Model 3's lower price point, which made electric vehicle
ownership more accessible to middle-class consumers. The success of the Model 3 also gave
Tesla an advantage over conventional automakers, which were left scrambling to catch up in the
electric vehicle market. Overall, Tesla's introduction of the Model 3 was a brilliant strategic
move that hastened the shift to electric transportation and solidified the company's position as a
market leader.

20
Place:

Tesla's distribution strategy is distinctive and disruptive. Bypassing the conventional dealership
model, Tesla sells directly to consumers through its company-owned stores and online platforms.
This strategy offers a seamless buying experience, fostering a closer connection with customers
and avoiding conflicts of interest that can arise in traditional dealer structures. For example,
when Tesla launched its Model 3, the company received over 400,000 pre-orders within a week,
showcasing the effectiveness of its direct-to-consumer distribution strategy. By eliminating the
intermediaries and providing a seamless purchasing process, Tesla was able to quickly reach a
wide customer base and solidify its position as a market leader in electric transportation.

Promotion:

Tesla has adopted a non-traditional approach to promotion, eschewing conventional advertising

expenditures. Instead, the company relies on public relations, word-of-mouth, and the significant
media attention garnered by its CEO, Elon Musk. Tesla also leverages social media and live-
streamed product launch events to generate buzz. For example, when Tesla announced the
launch of its Model 3, they organised a live-streamed event where viewers could witness the
unveiling of the car in real-time. This generated immense excitement and anticipation among
potential customers, resulting in over 200,000 pre-orders within the first 24 hours. By relying on
innovative promotional tactics and harnessing the power of social media, Tesla was able to
create a strong brand image and generate widespread interest in its products.

People:

Tesla's people strategy is focused on harnessing top talent to drive innovation. Employees at all
levels are encouraged to question the status quo and bring fresh perspectives to problem-solving.
The company's customer-facing personnel are trained to provide an excellent sales and after-
sales service experience, strengthening Tesla's brand reputation. For example, Tesla uses social
media platforms such as Twitter, Instagram, and YouTube to highlight its innovative technology
and promote its sustainable vision. By sharing videos of its electric vehicles' impressive
acceleration or highlighting customer testimonials, Tesla has successfully engaged with a large
online audience and built a community of resolute followers. This has not only created a strong
brand image but also generated widespread interest in Tesla's products, resulting in increased
sales and market presence.

Processes:

Tesla's processes are designed to optimise efficiency and customer satisfaction. The company's
streamlined online sales process reduces complexity and increases convenience for customers.
The manufacturing processes at its 'Gigafactories' focus on continual improvement with the aim
of reducing costs, improving product quality, and ramping up production capacity. For example,
Tesla's streamlined online sales process allows customers to easily customise and purchase their
vehicles from the comfort of their own homes, eliminating the need for traditional dealership

21
visits. This not only enhances customer satisfaction but also reduces overhead costs for the
company. Additionally, Tesla's manufacturing processes at its Gigafactories incorporate
advanced automation and innovative techniques such as vertical integration, enabling them to
efficiently produce high-quality electric vehicles at scale and meet the increasing demand in the
market.

Physical Evidence:

Tesla's futuristic, sleek vehicle designs, its highly visible Supercharger network, and its high-tech,
minimalist store interiors are all tangible manifestations of the company's claims. All these
things help Tesla project an image of technological innovation and forward thinking.

Tesla's innovative use of the 7P marketing mix model is a major factor in the company's success.
The company has distinguished itself in the automotive industry by putting a premium on
product innovation, direct-to-consumer sales, non-traditional promotion, and providing
exceptional customer experiences. Despite stiff competition from more established automakers,
it has helped Tesla establish itself as a frontrunner in the shift towards sustainable transportation
and renewable energy. Tesla's electric vehicles, for instance, feature state-of-the-art technology
like autonomous driving capabilities and over-the-air software updates, demonstrating the
company's commitment to innovation. Prioritising consumer-to-consumer sales allows the
company to cut out expensive intermediaries and keep tighter control over the customer
experience. In addition, Tesla's unconventional methods of advertising, like leveraging social
media and word-of-mouth, have contributed to the company's success in building a loyal
customer base and generating buzz about its products. Because of this all-encompassing strategy,
Tesla has become a leader in the electric vehicle market. The company's commitment to
environmental responsibility and technological advancement has resonated with buyers, resulting
in repeat business and increased demand. The problem of range anxiety has been mitigated
thanks to Tesla's efforts to increase the accessibility of its charging infrastructure worldwide.
Overall, Tesla is a leading player in the automotive market and a catalyst for the shift to
sustainable transportation because of its integrated approach to sales, marketing, and technology.

22
Evaluation of the effectiveness of strategic marketing tactics applied by Tesla
Inc. and other organisations operating in similar markets.

Pricing Tactics:

Using the "price skimming" strategy, Tesla first introduced high-end vehicles to a specific
market before releasing more affordable variants. Tesla was able to successfully capitalise on its
position as an industry pioneer in the field of electric vehicles by employing this strategy. It is
important to note, however, that this strategy necessitates ongoing innovation to sustain soaring
prices. To gain market share, General Motors uses a "market penetration" pricing strategy for the
Chevrolet Bolt EV. GM can leverage its manufacturing scale and supply chain efficiencies with
this strategy. However, it poses the danger of price-based competition, which, if not controlled,
can eat away at profits.

Promotion Tactics:

Promotional efforts for Tesla are heavily reliant on word of mouth, social media buzz, and Elon
Musk's influence. Their "buzz marketing" strategy is very cost-effective because it generates a
feeling of exclusivity and encourages natural conversation about the brand. In contrast, GM
promotes its products through more conventional means, such as television, print media, and the
internet. While more costly, this strategy offers widespread exposure and allows GM to
capitalise on the company's established brand.

Place Tactics:

Tesla's direct sales model, which lets customers design and order their vehicles online, has
completely changed the car-buying process. This method puts Tesla in complete control of the
sales procedure while still providing a seamless experience for the customer. GM, on the other
hand, employs a conventional dealership model that, while it can give customers some degree of
firsthand experience, lacks the level of control and seamlessness that Tesla offers.

Communication Tactics:

Tesla employs an unusual method of disseminating information. Elon Musk, CEO of Tesla,
serves as a de facto spokesperson for the company thanks to his extensive network and
popularity. His tweets and public statements often garner widespread media coverage, which is
great for Tesla because it is free advertising. As a more conventional corporation, GM prefers to
spread its messages via the tried-and-true methods of the past: press releases, official
announcements, and advertising. Although steady and dependable, this approach lacks the spark
and surprise that typically characterise Tesla's messages.

23
Tesla and GM, both with distinct brand philosophies and market positions, use complementary
but distinct marketing approaches. While Tesla has successfully cornered a sizable portion of the
EV market with its disruptive strategies, GM is making a determined push into the space by
capitalising on its well-known brand and extensive resources. Because of how well these tactics
have performed, marketing strategies need to be coordinated with the brand's identity, market
position, and long-term objectives.

An analysis of the role and functions of marketing management in the context

of Tesla Inc.

Tesla Inc.'s marketing management is crucial to the company's success in the fiercely
competitive EV market. Despite being a new player in the industry, Tesla has carved out a
sizable market share thanks to its innovative approach to marketing.

1. Tesla's marketing team has been working hard to change the company's image from that of
a carmaker to that of a leader in the energy and technology sectors. Tesla transcends the
automotive industry and establishes itself as a leader in the green energy revolution by
redefining its products as more than just vehicles. Marketers at Tesla have done an
excellent job of portraying the company's wares as an all-encompassing response to
climate change by highlighting sustainable energy products like solar panels and energy
storage solutions in addition to electric vehicles.
2. The marketing team at Tesla has used some unorthodox methods to get the word out about
the company's benefits. Tesla avoids spending money on traditional advertising in favour
of PR, social media, and the personal brand of its CEO to build its reputation and keep its
customers interested. Tesla's marketing team understands the value of Elon Musk's public
profile and makes effective use of his notoriety to advance the company's products. Tesla
has been able to reduce its advertising budget while increasing brand awareness and
customer engagement thanks to its novel approach to marketing communication.
3. The company's direct-to-consumer sales model is indicative of the marketing
management's emphasis on the customer experience. By eliminating intermediaries like
car dealerships, Tesla can oversee every step of the customer experience, from initial
inquiry to post-purchase maintenance. Using this model, Tesla can give each of its
customers a unique and streamlined service experience, which boosts not only the
company's reputation but also its customer retention and satisfaction rates.
4. Tesla's product strategy relies heavily on the company's marketing management. Tesla
vehicles are created with the buyer in mind, and the company frequently uses social media
to get customer feedback on how to improve its offerings. Tesla makes sure its products
are in line with market demand by putting the customer at the centre of its business
strategy.

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 5. Management from Tesla's marketing department has a say in the company's big picture.
Products, prices, and strategies for expanding into new markets are all shaped by
marketing research and consumer feedback. For instance, the introduction of the cheaper
Model 3 and Model Y was influenced by market research showing a demand for more
easily accessible electric vehicles.

At Tesla, managing marketing is a multifaceted role that goes far beyond simple product
promotion and sales. Marketing managers at Tesla are instrumental in driving the company's
mission to hasten the global transition to sustainable energy with unconventional marketing
strategies, the promotion of customer-centric innovation, and the driving of the company's
strategic direction. The success of Tesla's marketing department is a prime example of how
effective marketing management can propel a business in the competitive marketplace of the
twenty-first century.

Critical evaluation of the appropriateness of strategic marketing objectives

pursued by Tesla Inc. in the given market context.

Tesla Inc.'s groundbreaking electric vehicle technology and unconventional marketing strategies
have caused a major upheaval in the traditional auto industry. Strategically, the company wants
to increase its brand value, customer satisfaction, and the quality of the customer experience.

1. Tesla's success can be directly attributed to the company's first strategic marketing goal—
innovation. Because of its dedication to developing technologically advanced, high-
performance electric vehicles, Tesla has carved out a niche for itself in the industry. From
introducing groundbreaking battery technology to pioneering autonomous driving features,
the company has consistently pushed the envelope. The current tech industry thrives on
rapid advancements and disruptive technologies, so this emphasis on innovation is ideal.
However, there are risks associated with this pursuit of innovation. The pressure to stay
ahead of the curve in an increasingly competitive market can cause businesses to place too
much emphasis on technological details at the expense of human factors like customer
service and production reliability.
2. Another central tenet of Tesla's marketing strategy is improving the customer experience.
Direct-to-consumer sales and a strong focus on customer engagement are two keyways in
which the company differs from the standard auto industry model. Tesla's success in
building loyal customers comes from the company's focus on improving their overall
experience as customers. It may become difficult for the company to continue providing its
renowned level of customer service as it expands. As Tesla has expanded, reports have
surfaced of quality control problems and difficulties with customer service. Thus, Tesla
must guarantee it can deliver on this promise at scale, even though the emphasis on
customer experience is in line with modern consumers' expectations.

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 3. Given the stiff competition in the EV market and the wider tech market, Tesla's efforts to
boost brand value could not come at a better time. The brand's association with innovation,
sustainability, and luxury helps explain some of the premium price of Tesla vehicles. Tesla
has been successful with minimal spending on advertising thanks to positive word of
mouth and the popularity of CEO Elon Musk's personal brand. This tactic, however, does
not come without some danger. Reputational damage can occur if the CEO or the company
is in the news for the wrong reasons. Tesla faces an ongoing challenge in striking the right
balance between mitigating this risk and capitalising on the distinctive selling points of the
Tesla brand.

Tesla's strategic marketing goals of innovating the customer experience and building brand value
in line with the current state of the technology industry have been successful but are not without
their share of challenges. The future of Tesla hinges on the company's ability to navigate these
obstacles while maintaining its brand promise. As the company navigates the dynamic and
increasingly competitive global EV and technology markets, its performance will be closely
monitored.

An impact analysis evaluating the effectiveness of marketing management for

Tesla Inc.

Sales volume and value, customer loyalty, brand recognition, and digital marketing metrics are
all relevant indicators of the success of Tesla Inc.'s marketing management. All of Tesla's
marketing successes and failures can be seen through these metrics.

1. Tesla's sales have skyrocketed, both in terms of volume and value. A decade after
delivering only a few thousand vehicles, Tesla is projected to deliver half a million
automobiles in 2020. This upward trend has persisted, with Tesla continuing to lead the
market for electric vehicles. Since its IPO, Tesla's stock price has increased by over
5,000%, making it the most valuable automaker in the world. Tesla’s emphasis on product
innovation and differentiation has contributed to the company's rapid sales growth and
increased market value.
2. Tesla continues to enjoy elevated levels of customer loyalty, an important measure of
successful marketing. Despite some complaints about quality control and customer service,
Tesla customers tend to be loyal, and some even promote the brand to others. Tesla's
innovative products, distinctive value proposition, and expert marketing management have
earned the company a devoted customer following. Tesla, however, must continue to
prioritise the customer experience to maintain this loyalty as competition in the EV market
heats up.

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 3. The success of Tesla's marketing strategy can also be evaluated by looking at the
company's brand recognition. When people think of electric cars, their minds immediately
go to Tesla. Much of the credit for this goes to Tesla's unconventional marketing approach,
which emphasises the CEO's own personal brand, positive word of mouth, and free media
coverage in place of more traditional forms of advertising. The brand's reputation is
intertwined with the public's view of Elon Musk, so while this strategy has been
phenomenally successful, it is not without its risks. A brand's reputation could be damaged
by unfavourable press.
4. Tesla's marketing management cannot be rigorously evaluated without looking at their
digital marketing metrics. Elon Musk's Twitter alone has millions of followers,
demonstrating Tesla's strong online presence. Consistently prominent levels of interaction
with Tesla's posts help increase their organic reach. Their website plays a key role in their
direct sales model and generates a lot of traffic and sales. To further increase customer
engagement and sales, Tesla could use more innovative digital marketing strategies like
data analytics and targeted marketing.

These results suggest that Tesla's marketing management has been successful in increasing sales,
retaining customers, building brand awareness, and sustaining a prominent online presence.
Tesla, however, must keep innovating its marketing strategies and keeping its focus on customer
experience to sustain this success as the market evolves and competition increases.

Conclusion

This report has provided an in-depth strategy for marketing Tesla Inc.'s products, exposing a
unique mix of innovative management and disruptive methods. Tesla's commitment to renewable
energy and the direct-to-consumer business model exemplifies the company's forward-thinking
approach to the automotive industry and help it stand out in the competitive field of electric
vehicles.

Using the 7 Ps of marketing, we can see how Tesla's unconventional promotional activities,
direct sales model, and innovative pricing strategies have all contributed to the company's
success. In addition, contrasting Tesla with General Motors showed how the two companies take
opposite approaches to the same market.

Insightful analysis of Tesla's marketing goals revealed that the company's emphasis on
innovation, customer experience, and brand value is well-placed in the present business climate.
These goals are congruent with Tesla's overarching vision and the current climate in the
automotive and technology industries.

Strong results on sales volume and value, customer loyalty, brand recognition, and digital
marketing metrics were found in the impact analysis, further confirming the efficacy of Tesla's
marketing management. By challenging the status quo of automotive advertising, Tesla has
helped establish itself as an industry leader in the electric vehicle market.

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