Tesla Motors Essay

1855 Words Aug 26th, 2015 8 Pages
“I’d never buy one of those bloody electric cars!”. “Electric cars are just toys”. “Only greenies would buy that sort of car”. “And who knows how it’s serviced?”. These are the cries of the working world. How can we overcome this resistance to a fundamentally new product? Does a radically new product need radically new marketing strategies? In this paper I am going to explore Tesla’s innovative marketing strategy for motor cars. Don't set up a traditional car yard in the cheap rentals along highways. Set up in the shoppings malls! Increase consumer volume through segmentation and targeting! Capitalize off it by strategic positioning! Provide great service and a top-notch product, along with nifty little trinkets, and create customer value. …show more content…
Market segmentation involves aggregating prospective buyers into groups of common needs and similarities in actions. Targeting then involves specifically marketing to a certain segment (Gary Armstrong, 2011). In Tesla’s case, the market is broken into three segments.The first are the environmentalists, whom purchase the good for its environmental benefits. The second are the car buyers, who would seek out and buy the Model S for its merits as a car. Finally, there are the mall shoppers. These potential customers make up the majority of the population, but have no initial desire to purchase the product. Tesla aren’t focused on attempting to persuade environmentalists and car shoppers their product is better. Rather, they aim to to activate potential (mall) customers need recognition, as stated by Siimon Reynolds (2013) “Many sales come from people who had 0 interest in the car until they saw Tesla’s showroom” . Because of this, they avoid almost all competition with other car manufacturers. Moreover, their strategy invokes a much larger customer volume. Thus Tesla are focusing intently on customer satisfaction. They hope to spark, if not a purchase, positive interest and talk about the company. Informing customers is essential for a business selling new technology like Tesla, and is critical to their long term strategy. Unlike most car dealers, they are not ‘hard sellers’, who do whatever it takes to make the immediate transaction. Demand for

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