Chapter 7: Business Marketing

Chapter 7: Business Marketing

Tesla does not advertise nearly as much as BMW or Mercedes Benz, however when they do advertise it is ether online or in a commercial. One of they many reasons they find online marketing effective is that there is currently a huge technology bubble, and what better way to advertise a car that uses new technological advances on the technology based internet. An example of this is there Facebook page, they have about 700,000 followers. Tesla does not do a large amount of wholesale work so they cant relate to purchase volume.

Tesla holds many strategic alliances with different natural energy companies. They form these alliances for many different reasons. One of the reasons is that if an energy company comes up with a new way to charge the cars, tesla will be the first one in the loop. That goes for any new technology they can come up with. Forming strategic alliances is a vital part to any business. 

Creating and maintaining relationships in other countries is another very important aspect of a business. Tesla has done a very good job in doing this, they currently have rising sales in every contanet besides for Antarctica. 

Teslas distribution structure is very simple, They custom make each car for that specific customer. this is a great way to do business, because they can make sure that every customer gets exactly what they want. This is an advantage they have over most leasing companies, the reason for this is that sometimes if a customer wants a car they are only able to get whatever color is in stock, as opposed to creating there own. 

Chapter 8: Segmenting and Targeting Markets

Chapter 8: Segmenting and Targeting Markets

Tesla as a company realizes and great importance of market segmentation and incorporates this strategy with the company. Tesla sells cars in many countries all over the world, because of this they must target  different types of markets worldwide. below shows specific segmentation categories and how Tesla uses them to benefit their company.

Geographic Segmentation 

Tesla markets their cars differently around the world. An example of this is that in certain countries there are less people so Tesla puts out less ads. This saves them money, and still is able to provide the same percentage of sales. In certain countries the mean income is higher then others, Tesla takes advantage of this by putting in more stores in that area in order to increase sales.

Demographic Segmentation 

Age: Tesla does not market their cars to children, they market their cars to middle aged men and women with high incomes.

Gender: Tesla is appealing to men and women, if there were other genders Tesla would defiantly appeal to them.

Income: Tesla markets their cars to high income individuals and business.

Company Characteristics

Tesla does a strong deal of marketing to different companies. One method that is an example of this is that they offer companies discounts, the discounts can be taken from the tax that the business pays. Tesla targets all types of companies, manly companies who belive in the green advantage.

below is an ad from tesla

Chapter 11: Developing and Managing Products

Chapter 11: Developing and Managing Products

When Tesla was founded in 2003 it was a new product for the car market, they needed a new product strategy, what they did was explain to the consumers exactly how the car worked, how it helps the environment as well as how the car can save them money (if they were in the market for a luxury car anyway). Tesla main goal was to provide a Luxury electric car to the public, prior to this there was nothing like it available.

Creating a Tesla is a different process then other cars, one example of this is that there is more technology that goes into the newer Tesla models, including "Autopilot" this feature helps the driver avoid collisions, and give the driver more peace of mind when on the open road.

Prior to the release of any new car Tesla must conduct many concept tests in order to make sure that the car is safe and is ready for the road ahead.

The way the company manages the product is very simple, they oversee everything by not giving the product to 3rd parties to sell. This makes it better for them to manage the company, because they know that if there is a problem the way to solve it is to go directly into that department and fix it.

Chapter 12: Services and Non Profit Organization Marketing

Chapter 12: Services and Non Profit Organization Marketing

If one is looking to purchase a Tesla, they have great services for him. ranging from technology that helps custom design the car to supercharger stations that charge the car on the road.

 Teslas search quality is above par due to the fact that prior to purchase you can learn about almost every aspect of the car in order to make the purchase.  

Tesla also has great experience quality, the reason i know this is, because so many people who own  teslas are satisfied with the product & are retuning customers.

Tesla does not have any non profit marketing, however owning a Tesla helps safe the environment due to the simple fact that the car does not let off pollution into the world: I personally believe that this is a form of. non profit for the good of the world, most companies that we know do not hold these values.

Petroleum currently fuels 95% of cars in the US, that is very bad for the environment, Tesla does not use Petroleum, because they understand that it will not last forever & it is better for the environment not to use it.

Chapter 10: Product Concepts

Chapter 10: Product Concepts

Tesla has two different models, the original model S & the new model X. The main differences between the two is the size of the car. unlike convenience products and shopping products, Tesla is a specialty product. The main differences between a convenience product and a specialty product is that a convenience product is normally very inexpensive and easy to come by. A specialty product normally requires the customer to do due diligence  prior to making the purchase of the given idem, in this case Tesla & they will not take a substitute.

Tesla created something called "Supercharger", what is this? one may ask. Teslas supercharger is the fastest charging station on the planet. ( see picture blow).
Tesla super chargers allow model S owners to travel for free between cities along well traveled highways in many countries. It provides half a charge in as little as 20 minutes and are placed to allow drivers to reach the next station with power remaining on there car.
Coverage
North America
Today – 129 stations
Complete West and East Coast coverage
Coast-to-coast travel
2014 – 80% of the US population and parts of Canada
2015 – 98% of the US population and parts of Canada
Europe
Today – 91 stations
Asia
Today – 36 stations

Chapter 17: Personal Selling and Sales Management

Chapter 17: Personal Selling and Sales Management

Tesla uses Personal Selling a lot in there company. The company has to get the customer to buy their cars, even though they are less expensive eco- friendly cars out there. The customer must have enough liking in the expensive car to be willing to buy it, that is why the company is not aggressive with the customers.

Tesla uses technology in order to help the customer buy the car. In most of their stores you will find a huge touch screen is is used to customized and order a brand new Tesla.

Custom Options for Car 

 It is said that the smaller the target market and the more expensive the product, the more personal the buyer- seller  relationship should be. It is true that one can go online and order a Tesla exactly to his or her liking. One can also go into the tesla store and be greeted by a Tesla Employee that will create and build a relationship with the customer. One way they do is this to walk the customer though the process of creating a custom made Tesla. Another way they work on building and maintaining customer relationships is for the seller to give the customer their direct contact information just incase the buyer has any questions or comments. This is a great way to show the customer that Tesla cares for them. This is impotent to any business, Tesla does a great job at creating relationships with there customers. 

Chapter 16: advertising, PR & Sales Promotion

Chapter 16: Advertising, PR & Sales Promotion

Tesla Ad

Teslas CEO Elon Musk is known to be a great Advertiser. Tesla knows how to reach in a way that other high end car companies cant. Tesla is very big on social media in a way that they can showcase their cars. Additionally, Tesla is mentioned in many car magazines, this is very good for them in the advertising standpoint, because many people read these magazines it is also free advertising.

Tesla has a very unique and effective advertising strategy: that is to create sales without spending alot of money on advertising. They call it the media strategy, an example of this that once the New York Times posted a unfavorable review about the car. most companies would look at this as a negative for there brand, not Elon musk. He saw it as an opportunity to market and advertise the car for FREE! what he did was create and back and forth argument over twitter and different articles that were published. This gave Elon and the entire Tesla organization to prove the NY times wrong, and show the world all the benefits of owning a Tesla. This is an example of taking negative  publicity, and successfully turning it into positive publicity.