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As a business process, marketing is both a social and a managerial process that may benefit a company by getting it more linked to its target clients. Products and services may be sold better effectively with the support of marketing. Businesses exist to earn money, and marketing is a vital part of that process. Tesla, Inc., previously known as Tesla Motors (2003–17), is an American producer of solar panels, electric vehicles, and batteries for cars and homes. Marketing will be more intriguing in the future (Thomas and Maine, 2019).
Additionally, it examines factors like competition, supply and demand dynamics, and changes in consumer expectations, amongst others. Targeting the demographic section of the market, it also divides clients into groups according to age and income. Because the marketing environment helps marketers discover their customers' demands, specifically when it comes to how consumers make purchase choices, it is vital. There are three portions to this assignment, and each section focuses on a different aspect of marketing and internal relations. Because of this, the report also suggests Tesla, Inc.'s marketing strategy for future growth and development, as well as developing a marketing plan for the company itself.
Definition of Marketing
In order to benefit a business, marketing may directly link the company to its target consumers by first building a relationship with them. Hence, the terms "social process" and "management process" are used to describe it. Marketing is important to the achievement of every company, regardless of its size or industry. It may also assist the business get a larger piece of the market and a more prominent position within it. As a result of this information, the company may understand better the present market and its rivals, as well as consumer preferences, changes in purchasing habits, and other market dynamics that have a significant influence on the entire commercial operations of the Organisation (Chen and Perez, 2018). For this, most companies maintain a distinct marketing department to handle these tasks.
Marketing functions are the sales promotions of a company's marketing department that contribute to the company's current goals. The chief of Tesla's marketing department is responsible for coordinating a wide range of marketing activities. The following is a breakdown of Tesla's marketing functions.
In order to assess the existing and future market conditions, Tesla constantly conducts market research. Analysis of the market factors, such as supply and demand balances, changes in consumer expectations, etc. is also included. Using this analysis, it provides the planners with feedback to help them remedy any mistakes (Habib et al., 2020). All of the analysis is done in order to meet the goals of the marketing and the business as a whole. Because of this, these actions are carried out while the company is developing a marketing strategy.
Market segmentation and targeting
As part of its own segmentation approach, Tesla employs behavioral and psychographic profiling. Middle- and upper-class buyers wanting prestige, the impression of being environmentally responsible, and long-term cost-effectiveness are the target audience for this vehicle (Maughmer, 2021). The target market for Tesla is rich people and families since Tesla goods are perceived to be too pricey for the typical consumer.
Tesla, Inc. charges a high price for its products. In this main pricing approach, high price points are based on the company's goods' distinctiveness or high value. As a result of the firm's price-skimming approach, the corporation must concentrate on constructing additional battery stations around the country in order to achieve popularity among consumers for a hassle-free journey.
First and foremost, distribution is critical to the success of any organization, and it is an important element of the marketing process. Tesla primarily sells its automobiles via an online sales model and company-owned dealerships, instead of through a traditional dealer network. Company-owned distribution faces a number of difficulties (Kim, 2020). Furthermore, unlike other automobile manufacturers, Tesla sells directly to customers. Company-owned exhibitions and galleries have been established all over the globe in major metropolitan areas.
Irrespective of the size of a company, marketing efforts are critical to the overall success of the business. Marketing at Tesla is totally focused on attaining the company's overall goals and objectives. Finance, human resources, marketing, and customer service are all key areas inside the company's Organisational structure. The marketing department is connected to all of Tesla's other divisions, and they all work together.
Financial Department: Financial operations such as investment research, creating financial reports, and projecting the financial data are overseen by the director of finance like marketing. The marketing department may use all of this financial information to plan and spend in marketing. When it comes to making investment choices, marketing may aid by providing market data and scenario analysis, both of which are critical to the finance department.
HRM: It is the responsibility of the Human Resources department to recruit and choose staff for all departments. Consequently, it's important for the marketing department to keep in touch with them (Harris, 2015). There are several ways in which marketing may assist HR in hiring new personnel as well as learning and development initiatives. By providing real-time data on the labour market, they assist HRs in their efforts. Because of this, the HR and marketing departments have built a stronger communication method and work together as coworkers and colleagues.
Public Relations: Public relations and marketing are collaborating more closely because of their increased overlap in terms of activities. In certain companies, the marketing manager is responsible for public relations or the marketing department is responsible for public relations (Harris, 2015). Both of them deal directly with clients and their goal is to make the clients satisfied, thus most of their actions are identical. As a result, they participate in a variety of campaigns and activities designed to improve their skills and boosting the company's sales.
Impact of Internal Environment
It assesses the market's strengths and dangers from inside.
Toyota is endowed with enormous human capital on a global scale. They have made an investment in acquiring resources, and the payback is substantial (Madoh et al., 2019). As of December 2015, they employed 348,877 skilled workers worldwide.
Toyota will always be at the forefront of innovative operating systems and functional strategies. Toyota had set an example for those other firms with its widely adopted management style and lean production processes.
Strong Brand Image– Clearly, this is one of Toyota's most significant assets. When customers search for automobiles, they seek for the brand name 'Toyota,' which has helped Toyota maintain a significant lead over its rivals (Harris, 2015).
Not Capturing Markets– Toyota has created green car technology, but has failed to capture the market in which it can be used effectively. China and India may be the optimal markets for the introduction of these cars, but there is still time.
Negative Publicity — This occurs as a result of large-scale automobile recalls. Toyota is not immune to car recalls of any kind. Additionally, Toyota's recall rate is greater, which might result in increased unfavourable press.
The Development of Developing Nations– Perspectives are shifting, and individuals are more motivated to own automobiles. Automobile demand is soaring in emerging countries.
Green Vehicle Technology– While maybe longer to develop, green vehicle technology is gaining acceptance worldwide (Kim, 2020). Toyota's concentration in this sector will result in significant revenue from this breakthrough.
Growing Concern for Environmental Pollution– People worldwide are becoming more worried about environmental deterioration and are eager to take action. It is past time to increase awareness of Toyota's environmental stewardship.
Toyota competes in the market against well-known brands such as Volkswagen, Mitsubishi, Ford, and Hyundai. It's pretty difficult to establish a significant foothold in the market.
High-priced Raw Materials– As that of the cost of raw materials increases, the cost of the finished product also increases.
Reduced Profits– The constant danger of currency exchange rates is always present (Habib et al., 2020). When revenues are sent to Japan in Yen, the profit margin is significantly reduced in contrast to other currencies.
Impact of External Environment
Using PEST analysis, a firm may determine how external variables affect its business and which markets it should enter.
PEST Analysis of Tesla
An external environment that influences marketing activities, such as political, economic, social, and technical aspects (PEST), is referred to in this context. Consider the impact of these elements on the marketing strategy for Tesla.
Political: The current political climate in the United Kingdom is ideal for boosting business. However, it may not go as far as one may expect based on previous experience (Kim, 2020). On the other hand, Tesla’s leadership should take into account government rules and restrictions so that they can make a better judgment in a more difficult circumstance.
Economical: According to Tesla’s economic environment, the company is preparing the organization in order to avoid the negative effects of disturbances on its marketing strategy. That’s why the corporation has to conduct a constant review of economic elements such as “taxes, inflation, economic trends, and foreign investment” while operating in new markets.
Social: Changes in client purchasing habits and troubles with enterprises are both possible. As a result, Tesla is building its e-vehicles in accordance with current trends and changing patterns in the car market, as fuel costs continue to rise. People’s income is also taken into consideration while setting the pricing of these things.
Technological: Tesla unveiled a slew of innovative features made possible by technological advancements. The company’s logistics has become more efficient. It may also allow for the opening of additional locations in more distant places, and the improvement in communication made possible by modern technology bodes well for the company’s marketing strategy.
The marketing department is closely linked to other departments in the company. A good example of this is the strong collaboration between the marketing and finance departments. The creation, research, implementation, and evaluation of the marketing strategy and marketing tactics necessitates a significant number of financial resources. Coordination and collaboration with other departments, such as finance, are necessary to guarantee that all departments are working toward the same goal of meeting the organization's objectives. In order to develop a marketing plan for the target market, the marketing department needs an accurate and up-to-date product description. The marketing department collaborates with the human resources department to find and employ the best people who can contribute to the development of a successful and efficient marketing strategy for the business. It also helps to determine whether the marketing goals and the marketing strategy and objectives set by the firm are aligned with the company's business objectives.
In order to make well-informed and responsible business judgments, many marketing decisions in any firm rely on input from other departments. Other departments must play a role and be involved in order for marketing choices to operate efficiently and effectively. This includes the development and execution of marketing models, planning and control, and the implementation of successful marketing strategies (Madoh et al., 2019). The departments' interdependence and cooperation are important factors in accomplishing the organization's overall objectives. In order to ensure that the necessary and high-quality raw materials are purchased, the marketing function collaborates with the manufacturing department.
The marketing function may design strategies to involve all key stakeholders in order to achieve corporate goals because of the interaction with other functional units. Annual company operations might assist in achieving the extent of the market planning. Organizations may better cope with industry shifts if their functional divisions are intertwined (Dunne, et al., 2010). A regional, product-based, or business-unit strategy may all benefit from a segmentation-based approach, which focuses on creating the best possible marketing mix. For big businesses, functional units are responsible for integrating several strategies tailored to the unique needs of each business unit. It aids in the design of practical procedures at the divisional and individual business level for organisations. Even if collaborating with other departments in the business is critical, it must be acknowledged that not all interlinks among functions are always beneficial for an organisation. Due to the fact that the activities and roles of organisations might have competing interests, this is the case. Organizational conflict might arise as a result of this.
The term marketing mix relates to the mixture of marketing aspects that may be employed by any company to accomplish their marketing goals. " Product, price, place, promotion, people, process, and physical evidence" are all included in the 7Ps. Because of this, most businesses employ the marketing mix to their own advantage. A comparison of the growth and development tactics used by Tesla and Ford Motor may be seen in the following 7P, which compares the two firms.
The Tesla is the first commercially viable entirely electric vehicle in the world. As a result, the company's goods have become more innovative and technologically advanced, making them more competitive. In addition to the powerful electric motors, extended range on one charge, charging technology, and the automated system, Tesla's most appealing advances are the charging innovation and automatic system (Maughmer, 2021). To guarantee the safety and reliability of the battery, Tesla Motors puts a great deal of emphasis on innovative integrated design. This includes not just 'cell' pack, but also charge/discharge control and other functions.
With a focus on longevity and lower maintenance costs, all Ford products are manufactured in accordance with the local driving conditions (Allen, 2019). Fuel economy and the use of environmentally friendly refrigerants have been prioritized, and the ventilation system has indeed been tailored to the Indian climate.
It may be said that Tesla's pricing plan falls within the category of premium pricing approach. Customers are willing and able to pay more to drive Tesla electric automobiles than standard gasoline vehicles, despite the fact that they are more costly (Thomas and Maine, 2019).
Tesla does not utilize a pricing plan based on location, unlike most other automotive manufacturers. With their price strategy, Ford has become one of the most prominent manufacturers in the world. The costs and profit margins must be taken into consideration in order for a firm to be exceptionally lucrative. Prices are also influenced by the goods of other companies who are competing with your own.
From "$69,000 to $140,000" for a Tesla Model S, "$83,000 to $145,000" for the Model X and "$51,000 to $61,000" for the Tesla Model Y. The pricing strategy is also influenced by the company's previous financial performance and marketplace appraisal (Harris, 2015). In addition to its ability to save money due to its low fuel consumption, the items' inexpensive costs have made it a popular among those with limited financial resources.
Tesla owns and operates its own dealerships and service centres. There are a number of Tesla shops and galleries located in major urban areas. Some Tesla galleries and shops provide both retail sales and servicing (Masnada et al., 2020). Online and in corporation dealerships, Tesla sells its automobiles
Ford has the reputation of being the first company to implement the idea of mass production using an industrialised workforce on a massive scale. With an original investment of 1700 crores, the business has set up a 350-acre manufacturing complex at Maramalai Nagar, near Chennai.
Tesla Motors does not have any marketing available resources. It has no commercials or billboards, no CMO, no ad agency, nothing, and that's what makes it so great. Due to Tesla's unique approach, the company has more orders for vehicles than they could ever actually produce (Grewal et al., 2020). As a result, Tesla is able to maintain its relevance and attract new consumers without spending loads of money on advertising.
Consumers and prospective customers alike should expect a fiercely competitive marketing campaign from Ford, that aims to create long-term relationships with both. In order to promote its brand, it has partnered with several athletic events.
Even when a new product is released, Tesla uses Twitter to promote it and generate a viral buzz online. Elon Musk, the CEO of Tesla, is a well-known public personality who often appears in movies, television shows, and interviews (Pecot, et al., 2018). Advertising in the visual media, such as the internet and television, as well as in print media, such magazines and newspapers, have been very successful. Exhibitions, festivals, and malls have all had the chance to see the many automobiles on display.
Elon Musk, the CEO of Tesla, is a marketing genius. But Elon isn't Tesla's sole employee. Customers are comforted by the company's excellent customer service throughout their attachment to the brand. William Clay Ford Jr., the executive chairman of Ford Motor Corporation, is heading the company that set the globe on tires into the 21st century. The firm also employs a number of additional workers to keep the business running smoothly (Grewal et al., 2020).
In regards of how Tesla innovates and delivers its goods, they implemented an innovation process. Automotive, Transportation, and Ford Credit are the three sectors of Ford's business. The Automotive division is responsible for developing, producing, distributing, and maintaining Ford and Lincoln automobiles, as well as their components and accessories (Masnada et al., 2020). Autonomous car development and allied industries make up the Mobility section. Argo AI, a developer of autonomous driving systems, and Spin, a micro-mobility service provider, are both owned by the Company. The Ford Credit business, which largely consists of vehicle-related leasing operations, is included in the Ford Credit division on a consolidated basis.
The physical evidence
With only 23 superchargers in 2012, there are now over 12,000 throughout the globe, which is the most tangible proof of Tesla Motors' success. Both the color of Tesla's goods and the company's emblem are immediately recognizable. Its automobiles have a distinctive look and model number that set them apart from the competitors. Customers are allowed to find the brand more easily this way.
It is easy to use and enables buyers to look at Ford Motors goods in high-quality photos captured from a variety of perspectives. For this, it has a distinct logo and packaging that distinguishes it from its rivals.
Different companies use a variety of marketing strategies to establish themselves in the marketplace. In addition to attracting new consumers, these marketing strategies assist the firm maintain its current customers and strengthen the brand's image in the eyes of its current and potential customers. Toyota's marketing strategy relies heavily on word-of-mouth advertising and other forms of conventional advertising, as can be seen in the example study above. The banners and fliers are displayed and disseminated throughout the surrounding region. Social media marketing is also used by the corporation, although it is not on the same level as the other rivals. As a result, the business must put forth significant effort in social media marketing in order to broaden its consumer base and better inform them about its products (shishshawerma, 2020). Hyundai's marketing strategy is focused on a distinct approach to marketing. At its core, this vehicle is aimed at middle- and upper-income professionals who seek comfort and value for money. College students, a secondary market, are constantly on the lookout for the latest fashions and the most up-to-date technology. Hyundai Motor Group owns Hyundai. Last year, they spent more than $100 million on advertising in internet, print and national TV. Premium advertising units are purchased, and they've gotten their message out to over 250 various media properties in the last year. All of these strategies come at a price and need significant financial outlay on the part of the business. As a result of using all of these methods as part of its marketing plan, the business has been able to expand the geographic scope of its clientele as well.
It is the strategy of a corporation to combine all of its marketing operations into a system to reach a certain marketing goal at a specified moment. Most for-profit organizations use a marketing strategy in order to make money and stay afloat in the market. The time period might be one or several throughout a year, and it can be used by any company. Once a year, Tesla puts out a marketing strategy.
Essentiality of Marketing Plan
Every business should have a marketing strategy in place. It may assist any business in setting a marketing goal or aim and then working toward that goal. In order for Tesla to have a stronger market position, the company constantly plans its marketing strategy to improve its market share and to create an impression on the market (Chernev, 2020). This information may assist the venture better understand its rivals and customers’ tastes as well as changes in their purchasing habits, as well as supply and demand and other market variables that have a significant influence on the venture’s profitability.
The primary marketing objectives of the corporation are to increase revenue by 7% and acquire market share of 2% over that time period. Marketing strategies were developed after careful consideration of the company's internal and external environments. As a result, the firm will be better able to direct and concentrate its efforts on strategies that achieve its objectives of communicating the standards and quality of its goods. Providing raw materials to suppliers is an important part of the company's marketing strategy (Miller, 2017). A solid connection with stakeholders may be built using this method. In order to improve the company's interaction with the industry, the top management must take centre stage.
Marketing Plan for Tesla
For the next year 2022, Tesla plans to put up a marketing strategy. The company’s key marketing goals are to raise revenues by 7% and gain 2% market share in that time frame. Prior to deciding on a marketing strategy, the company analysed its internal and external factors. Other factors were taken into consideration as well. In order to better understand the industry and target customers, the company split its market and narrowed down its focus (Vaní?ková and Szczepa?ska-Woszczyna, 2020). According to these target groups, the company took the required steps to accomplish its goals. It also includes the company’s product development and marketing strategy. After that, it looked at the marketing strategy and all of its components (Dimitrescu et al., 2018). There was a consensus that in order to maximize the plan’s effectiveness, an additional actionswere to be included in the plan. However, the organization’s strategy was a success.
Overview of the company
Electric vehicles are to be better, faster, and more enjoyable to drive than gasoline vehicles, according to a group of engineers who founded Tesla in 2003 (Elsayed Fayed, 2021). Currently, Tesla produces not just all-electric automobiles, but also endlessly scalable sustainable energy generating and storage systems. As soon as fossil fuels are phased out, Tesla thinks the world will be a better place to live.
Within the marketing plan’s time range, sales are predicted to climb by 7% and market share by 2% (Vaní?ková and Szczepa?ska-Woszczyna, 2020). This approach also aims to increase earnings by 7% within the same time period. All of Tesla’s activities must be planned in accordance with the company’s marketing plan.
Marketing segmentation and targeting
Tesla’s market is constantly segmented based on factors like as region, demographics, and social and behavioural factors. Geographic, demographic, social, and behavioural segmentation were some of the areas in which the UK market was broken down (Schulz, 2021). The corporation prioritizes all of the categories in order to determine which one is the best. The demographic group of the market where Tesla categorizes consumers based on their age and income must be targeted. The corporation should target young and middle-class clients in rising markets like India, where India has been a major market.
Managing the use of resources
If the firm wants to broaden its product line and boost its revenue, it has to hire individuals who possess the requisite core skills in the company's product development and marketing areas. The corporation must use its resources appropriately. A minimum of 40% of the company's funds must be set aside for expanding the product line's range.
Design of the Organization
To achieve the stated corporate goals, the organisational structure must be reworked. To facilitate the introduction of a wider range of goods, the organization's activities must be consolidated. We need to reorganise the food development and marketing reporting structure(Monden and Talbot, 2019). To maintain effective governance and to elevate the marketing department to the status of a hub of excellence, a clear reporting structure is essential in the department.
Marketing Mix of the business
Product: A company or merchandising effort is only as strong as its core product. Customers may choose from a variety of Tesla e-vehicles, most of which are tailored to their specific requirements and desires. According to the changing preferences of customers, the company’s goods likewise vary throughout time (De Pelsmacker, Van Tilburg and Holthof, 2018). Analysis of Tesla’s target categories in new growing markets like India might facilitate this insight more extensively.
Price: Aside from quality, Tesla places a high value on pricing, knowing full well that no business can be successful without making better use of resources. When it comes to pricing, Tesla always relies on market research and its own data. As a result, shoppers may acquire their desired goods without having to second-guess their purchasing decision.
Promotion: Customers can easily get in touch with Tesla via its distribution channels thanks to an improved communication approach (Lupo, 2018). As a result, it takes action to create additional stores in outlying locations so that the business may meet its marketing goals. Customers may also take use of the company’s home delivery service for a more positive reaction.
People: Tesla’s employees are always being taught new skills so that they may better serve their clients. The efficiency of the manufacturing process is also dependent on the efficiency of the personnel involved. In order to provide better service to its clients, the business decided to implement a training and development program for its staff(De Pelsmacker, Van Tilburg and Holthof, 2018).
Process: All of Tesla’s selling operations are carried out in a systematic manner. Transactions begin and conclude when a consumer enters a store to purchase something and is persuaded to do so by personnel (Masnada et al., 2020). All of Tesla’s consumers are created devoted customers by the company’s emphasis on procedure.
Physical Evidences: As a result, Tesla constantly takes into account the needs of its consumers while designing its vehicles. While selling items, it’s also showing buyers what they may expect in return for their money. It improves the design of its stores and makes the shopping experience more convenient for clients, so they can get more out of their visit. It will improve their experience and build their trust.
The present market conditions and market developments will influence Tesla’s marketing strategy. Advertising is becoming a more important part of the competition’s strategy. Because of this, the corporation will use a variety of methods to promote its products, including sales promotion, campaigning, personal selling, and other activities. After a certain amount of time, the market will be analysed to discover whether the marketing strategy is succeeding or failing (De Pelsmacker, Van Tilburg and Holthof, 2018). The business therefore can opt for cost leadership strategic approaches to provide better and more attractive products in reasonable prices to attract a large number of consumers from the Indian markets where competition is very high on mediocre segments.
For improved results, Tesla constantly assesses both the current state of the market and the many market factors at play. After a certain amount of time, the market will be analysed to discover whether the marketing strategy is succeeding or failing (Dimitrescu et al., 2018). For this study, Tesla has to take into account market dynamics, such as supply and demand, changes in consumer expectations, and so forth. As a result of this study, the planners are provided with feedback so that they may take the necessary remedial action if there is a mistake.
Tesla must provide funds for its marketing strategy in order for it to be carried out as planned. Planned and promotional activities use the vast majority of the company’s financial resources (Elsayed Fayed, 2021). In addition, it maintains the budget for staff training and development, which is essential for the company’s success. Under this fund, all research and development activities can be carried out.
Controlling and monitoring measures
Tesla should constantly keep an eye on its marketing initiatives to ensure that they succeed. Employees will be adequately led by the company’s commitment to monitor all actions. Nonetheless, Tesla should pay attention to supply and demand balances, changes in consumer expectations and so on. Consequently, it should also provide the planners with feedback based on this analysis so that they may take remedial action if necessary (Chernev, 2020). If all corrective measures are executed correctly, the marketing plan’s efforts will all work toward the goals.
Wages, sales and market executives
Online and social media advertisement campaigns
Toyota's marketing strategy takes into account all potential long-term advantages. Increased client reach may be achieved by include product development in the company's market strategy. Existing items can't meet all the demands of a wide variety of clients, but new ones can. It is, however, impossible for the firm to meet its stated financial goal of increasing sales and income by one year with the existing marketing strategy (Schulz, 2021). Developing a product takes time, and it might take up to a year and a half for consumers to get familiar with it. The firm may be able to boost revenues by 7 percent and market share by 2 percent by being active on various social media platforms, but this will be a challenging goal to meet. The corporation could have met its goal considerably more quickly if the marketing strategy had placed more emphasis on selling and advertising the current product.
To conclude, it can be stated that Competition for marketers will intensify since most of their rivals will be more customer-focused. For gaining new clients, they are adopting several approaches. When it comes to promoting products and services, word of mouth is becoming more important. Future marketing trends will be more complicated as well, according to my opinion. As a result, marketing professionals need to be more cautious in their actions. A well-defined marketing strategy is essential if they are to reach their aims. All of the goals should be created in the same manner as well. Tesla should be able to accurately assess the market and provide clear forecasts. As a last step in ensuring that all operations are on track, the company should implement a solid feedback and control systems.
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