Ch. 7 - Business Marketing

While some people think that Tesla Motors is only an automaker, they are also a battery company. Most companies, receive some some of its equipments and parts from Tesla. Tesla sells power train components to other automakers. Tesla is an original equipment manufacturer because, Tesla buys its lithium ion batteries from Panasonic. Tesla Motors decided to setup its own battery plant and is investing billions of dollars on a battery plant that will help expand and produce more lithium ion batteries annually. Also, Panasonic wants to expand its cooperation with Tesla by investing in the gigafactory project. 

Ch. 11- Developing and Managing Products

Tesla CEO Elon Musk has overseen product development and design from the beginning, including the all-electric Tesla Roadster, Model S and Model X. The company spent a lot of time and invested research of their products by focusing both on the environment and technology.Tesla said that production and profits are going to improve in 2015. Also, Tesla has built 30 beta prototypes of the Model X for testing and is very close to the final production intent design.

Product Life Cycle
The Tesla Model S is very much in the maturity stage of its life cycle. Electric cars in general are all in the growth stage because they have just now become an alternative to the gas power car.

Ch. 8 - Segmenting and Targeting Markets

Tesla Model S could be mainly divided into the environmental conscious and the technology segments.

Geographic segmentation:
Tesla can market to Europe because most European countries have high gas prices and green-friendly governments and policies. With the use of geographic segmentation, Tesla can rule out countries like Saudi Arabia and Venezuela where gas is cheap.

Demographic segmentation:
Tesla markets its cars to only people who can afford them but in the future they making newer cars to market to the middle class.

Psychographic segmentation:
Tesla can contact people and ask the questions through surveys, to see if they are satisfied with their current cars or if they are looking for alternative cars.

Ch. 15- Marketing Communications

The key to a good promotional mix includes advertising, promotions, events, and public relations.

Promotions include a $7,500 US Federal Tax Credit if you buy a new Tesla car for personal use. Most of there advertising is on the newspapers, magazines, forums and website.Tesla uses media and social hubs such as Facebook and Twitter to inform the public of any new information or events taking place. Tesla Motors spends no money on paid media, but uses earned media in the form of word of mouth and free test-drives. Tesla Motors is covered by media and magazines like Motor Trend. By the media covering them, they raise brand awareness and increase traffic to their website.

Ch. 10 - Product Concepts

Tesla model lined up includes a consumer specialty product. Tesla Motors brand is of high quality, high performance, fully electric, and high level of customization.

Also, CEO Elon Musk is announcing another event. On April 30, at 8 p.m. PST, Tesla will introduce a "major new Tesla product line" that is "not a car," Musk said on Twitter Monday morning.

Tesla Motors current product mix includes the Model S and Model X. The Model S has more depth.

                                                                         Model X

                                                                        Model S



Tesla Motors brand equity is of high value despite it's still low market presence. 

Tesla Motors was sued in late 2014 in china for trademark infringement by a Chinese business but Tesla settled the dispute with the trademark.

Ch. 17 - Personal Selling and Sales Management

Tesla Motors sells cars that are different, expensive to some, and requires convincing. Their products require more personal selling.




Tesla Model S meets the requirements of a personal seller but, only in a few states including California, Nevada, Washington, New Hampshire, and New Jersey.

Anyone in the United States can start the process of buying a Tesla by phone or online, but dealers say Tesla's factory stores are illegal in some states. So if you want to purchase a car, you would have to buy at TeslaMotors.com and then arrange a delivery.

While it is true that one could just go online, order the car without any human interaction what so ever most of us are not that comfortable when it comes to buying a car. Tesla sales personnel are there to educate you and help clients with their needs. Some disadvantages that faces Tesla, is that some storefront personnel are limited when it comes to personal selling because they can’t discuss price or guide the purchase of a car. Some advantages is that the sales personnel are not paid on commission so they don’t pressure the consumers into buying unlike other car dealers. Tesla websites collect feedback via forum conversations, blogs, and emails.

Ch. 16 - Advertising, Public Relations and Sales Promotion

Tesla advertising strategy is unique because they don't spend millions of dollars on ad campaigns like other car companies. Most of there advertising is by word of mouth, videos, forums and blogs. Also, Tesla retail stores are part of the adverting too.

Tesla hasn’t needed to advertise its cars or spend not one penny because its fans do that for them and for free. According to spokeswoman Alexis Georgeson, who is the closest to a PR person in the company says:

“Right now, the stores are our advertising. We’re very confident we can sell 20,000-plus cars a year—without paid advertising. It may be something we’ll do years down the road. But it’s certainly not something we feel is crucial for sales right now.”

Tesla offers consumers free test drives. The consumers spread the message to family and friends about Tesla cars which later result into sales without spending any money on advertising.

Tesla Model S: Gallons of Light Video

Goal: The goal of this campaign is to show that long range travel is finally accessible to electrical vehicle owners without spending a single penny on gas.

Motto: Tesla’s motto is “we love our customers.” They captured a real family’s first road trip in their new Tesla Model S. Use Tesla’s network of solar-powered Superchargers to fuel the journey.

Impact:

The campaign was tweeted by Tesla CEO Elon Musk and distributed across Tesla’s social media channels. Over 200k YouTube views. Press coverage from FastCompany, AutoBlog Green, Current TV and many more.