Question

If you are the headoffice of Tesla, What are the elements of a marketing promotion mix? How do you segment the market in relation to your product? How does an honest marketing communication can increase the profitability of your market? If Tesla wants toselling only online. What could be the pros and cons?

Answer 1

1. The marketing promotion mix for Tesla should contain - Exhibition marketing , Advertising , Direct marketing , Sales promotion and Personal Selling.
2. Considering the products to be electric cars of luxury and affordable nature, the market can be segmented into high ended income, middle ended income and low ended income for consumers. The luxury cars could target the high income segment, while the affordable ones would be targeting the middle and lower income segments.
3. An honest market strategy not only provided incentives for first time consumers but also helps the producers in retaining these consumers added to the fact that word of mouth spreads and there is an added reliability factor that consumers would consider while choosing a firm. If the previous experience was a positive one, the customer would definitely come back .

Pros of selling online : Reach a broader customer segment(access) , cost savings , Flexibility , Tesla can manage business from anywhere.

Cons of selling online : Absence of direct selling , Lack of consumer confidence in sales, Shipping costs and delivery.