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.

Chapter 14: Marketing Channels and Retailing

Chapter 14: Marketing Channels and Retailing 

Tesla is one of the most popular high-end eco friendly car on the market. People from all over the world that want an eco friendly care are aware that Tesla is one of the best options for them, if they can afford the price tag.  their are currently over 100 Tesla retail stores in the US alone! this makes it fairly easy for a potential customer to be set up with the tesla of his liking. 

Most car companies use agents and brokers to sell there cars, agents and brokers simply facilitate the sale of the product from producer to the user by representing retailers, wholesalers or manufactures. Tesla takes a completely different approach to this. One marketing channel that tesla uses is direct channel through their website. the customer can simply go on to the Tesla website and create the car that they want. The reason why Tesla uses this sales channel as oppose traditional broker sales that most car companies need brokers to implement aggressive sales techniques. Tesla does not feel the need to use sales orientation, because generally if on wants and can afford  a Tesla they are going to buy it. This saves the buyer as well as the company money. additionally, Tesla sells cars from there retail stores.

Tesla Logo

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 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. 

Picture of Teslas charging stations. 

Chapter 6: Consumer Decision Making

Chapter 6: Consumer Decision Making

Teslas Marketing experts do an above par job when it comes to understanding their customer. unlike most automobile companies Tesla uses the marking orientation approach to sell cars. The reason that they are not that aggressive with their customers is because most people that look into buying a Tesla are very serious about purchasing one because of the nitch market. For example if one is interested in buying a standard honda the salesman will be very aggressive due to the fact that he is aware that the customer can go elsewhere to purchase a very similar vehicle. Additionally, Teslas target market is middle aged high income consumers. If they feel too pressured into making a down payment it may make them stray from the idea of buying the car. Tesla does a great job when it comes to satisfying there customer. That is why they have a high rate of returning customers.

Teslas customers are normally satisfied with the cars because they have a very high ratings amongst owners & renters. Tesla is extremely confident that their customer will enjoy, and not have any issues with there cars that they offer very good warranties including a lifetime warranty.

Chapter 5: Developing A Global Vision

Chapter 5: Developing A Global Vision


In the day in age in order to be a truly successful company, one must make his or her company global. This means that one cant just sell there products to one country. One big factor in maximizing revenue in any business is to do business all over the world. Tesla is an American company, There global headquarters is located in Palo Alto, California. Palo Alto is home to many different technology companies. Tesla also has Facilities in Canada, Europe, Asia & Australia. Tesla is truly a global company with facilities in 4/5 continents.

United States Of America
Tesla was founded in Silicon Valley. They opened there first retail store in Los Angeles, CA in april of 2008 & shortly after that they opened there second retail store in Menlo Park, CA. About a year later they opened a showroom right here in New York City. The reason they did this is to display the product. New York City attracts tons of tourists each year, this helped with their global sales. Tesla also opened store in Washington, Washington D.C, Chicago, Florida, Colorado and, other cities in California.

Canada
Tesla opened their first store in Canada on November 16, 2012 in the Yorkdale shopping center in Toronto. This store took a lot of effort from the company. One major feature of this store is a 85-inch touch screen wall that allows customers to customize their own Tesla, they have the option to buy it once they are done. Tesla currently has a total of five retail stores in Canada. Below is a picture of the retail store in Yorkdale Shopping center.

Europe
In June of 2009 Telsa opened their first store in Europe. The retail store is located in London's Knightsbridge district. This store relocated to Westfield London shopping center in 2013. Tesla currently has 24 stores in Europe. the European headquarters are in Amsterdam. The reason that Canada doesn't have their own headquarters is because it is so close to the US. Below is a picture of Teslas store in Germany.

Asia
Aoyama, Minato, Tokyo is were the first Japanese showroom was established. After this they opened up another store in Osaka. Many stores were forced to shut down due to the fact that the country didn't give the buyers tax breaks. The result of this is that the car retailed for $400,000-$500,000. After this the company was still able to open more stores throughout Asia.

Chapter 4: The Marketing Environment

Chapter Four:

    The market environment of a company is a variety of non marketing influences that have an impact on the way the marketing manager builds relationships with the target consumers.

     Teslas Marketing environment caters to the consumer. They own and operate there own retail stores in order to make the customer feel at home when buying a car. Tesla is always looking for new ways to improve there marketing environment. an example of this is that they make everyone who works for them take a test to make sure they are up to date with all the information they need to satisfy the customer. 

   This created great success for Tesla over the years. they own 100s of stores in North America, Europe and Asia. That means they have 10,000+ knowledgeable employs ready to help the customer.

Environmental benefits of driving a Tesla 

1.clean energy is the future 

2. Petroleum will not last forever 

3. The owner gets to be bold by taking a stand for the environment 

Tesla also has a great reputation because the people who brought there cars give them great reviews, people say that owning a Tesla is a great experience. from buying it to using the customers are given unbelievable attention from the company. Because of this the consumer is likely to refer the car to there friends and family.    

Chapter 3: Ethics and Social Responsibility

Chapter 3: Ethics and Social Responsibility

In order to be a top tier company, one must not only create or sell a product that is attractive to the consumer. They must uphold standard business ethics and responsibility. This includes advertising the truth as oppose to false advertising that will ultimately lead to unhappy customers, and an unsuccessful business. Social responsibly plays a big part in any business. One example is the way the company treats their employees. They must comply with basic laws and regulations that any successful company follows. A company can also be successful without having ethics & social responsibly, but they will not last.

"With great power comes great responsibly" 

This quote applies directly to teslas business model. They claim that their car is beneficial for the environment, which is true. in order to uphold this they have to test all their cars to make there there is no flaws that will hurt the environment. 

Additionally, Elon Musk, and the Tesla organization are currently working on stations with the same goal as a gas station, to add power to the car. In order to uphold Teslas business model ethically they have to make sure that everything that goes into this is eco friendly, and in no way can harm the environment. 

Chapter 2: Strategic Planning For Competitive Advantage

Chapter 2: Strategic Planning For Competitive Advantage

Tesla is an premium electric vehicle company. Their goal is to provide their customer  a luxurious car that doesn't hurt the environment. They currently have only one model out and, one model in production. This luxurious car comes with a luxurious price starting at about $71,000. A huge competitive advantage that Tesla holds over other cars in the same price range is that the consumer will save about $250/month on gas.

Tesla models

1. Model S- Classic 4 door
2. Model X- (Available fall 2015)- 4 door with hatchback to give it the space of a SUV

When Tesla was founded it did not have many competitors due to the fact that Tesla was in its own class due to the price. This was a big plus for the company making it unique in its felid. As we know when there is an unique product doing well there will always be competitors ready to jump on the boat. BMW, Cadillac, Porsche and Audi are a few of the luxury brands that are starting to promote new plug in models aimed to get the attention of Tesla customers.

Target Market- Teslas target market is not just for people who are looking for an upscale car. The target market focuses on people who are envoiroemal friendly and also want a elegant car that drives very well. Due to the price of the car, the consumer must have an above average income.

Place-  Just the the car is unique, the way they sell it is unique. Tesla strives to sell their car in their own store, and online. They have almost 50 stores, and they make it very easy to customize online. The main difference between the way Tesla and other companies sell their cars is that tesla cuts out the middle man. They sell the car directly to the customer rather then letting a dealer sell it for them. This is an competitive advantage that all companies should adapt. Cutting out the middle man will help the customer save money in most business.

Tesla Strengths:
1. Well established & proven brand
2. Elegant & luxury car
3. Helps the environment
4. Saves gas so we can use it for other reasons

Tesla Weaknesses:
1. Not a practical car for most middle & lower class workers due to the high price

Threats:
1. Other electric cars are priced in a lower tier
2. New Wave of similar cars are currently in production
 

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Tesla

Chapter One:  Overview & History  

Tesla Motors was incorporated in July 2003 by Marc Eberhard and Marc Tarpenning, who financed the company until the first round of funding. Both men played active roles in the company's early development prior to Elon Musk's involvement. Musk led the Series A round of investment in February 2004, joining Tesla's Board of Directors as its Chairman. Tesla's primary goal was to commercialize electric vehicles, starting with a premium sports car aimed at early adopters and then moving as rapidly as possible into more mainstream vehicles, including sedans and affordable compacts.

Since the Model s went into production in 2012, there have been over 250,000 gasoline car explosions in the us alone. 400 people died as a result to this. In the same time there was only 3 tesla fires due to high speed chases. Tesla doesn't only help the environment by not polluting the air with gas, it is also a much safer car to drive.