Introduction
Market Research is one of the most important activities a business can invest in to ensure
they are maximizing their potential in the marketplace. In today’s competitive landscape, one of
the most valuable components of any business is the data they have been able to collect about
their current and prospective customers (Marshall & Johnston, 2023). Market research is the
methodological identification, collection, analysis, and distribution of data to discover and solve
marketing challenges and enhance the decision-making process (Marshall & Johnston, 2023). In
the following paragraphs we will review the marketing research process and how Tesla leverages
these tools to drive their marketing efforts.
Q1. Discuss the use of marketing research to be used to gather information on present or
potential customers. Which forms of marketing research would be best in gathering
consumer information relating to the product/service? Outline a marketing research
process, including data-gathering techniques (survey, observation, etc.) (Ch.4)
Tesla needs to have a deep understanding of who the prime target customer will be for
their products. They will need to leverage descriptive research methods to identify the
characteristics of their target market, asses the competition, better understand how customers will
use Tesla’s products, and understand the impact that demographics may have on the use of their
products (Marshall & Johnston, 2023). Tesla will need to leverage several types of data to clearly
understand their ideal customer and increase the likelihood of converting that potential customer
into a loyal customer. Tesla will need to leverage both qualitative and quantitative research using
surveys and focus groups. Focus groups of six to ten individuals will allow for deep interaction
with Tesla’s potential customer and provide instant feedback to be inserted in the data models for
further analysis (Marshall & Johnston, 2023).
The following process would be one way for Tesla to gather the appropriate data needed
to more effectively market to their target customers:
Define the Research problem: Who is are target customer?
Establish the Research Design: What data do we need, who should be included? Use
surveys and focus groups.
Collect the Data: Collect survey answers and focus group responses.
Analyze the Data: Review the findings to the research questions and understand what
the data is revealing.
Report the Findings: Ensure that the final report is formatted to best understand the
findings of the research. Include an executive summary for leadership and then a detailed
analysis for the marketing team to dissect and respond.
Q2. Explain several external forces (political/legal, economic, competition, etc.) that affect
the organization’s marketing planning and strategy. (Ch.4)
There are several external factors that influence Tesla’s marketing planning and strategy.
Political forces such as government tax policy affect Tesla. The government announced a tax
credit of $7,500 for the purchase of an electric vehicle (IRS, 2024). The recent election resulting
in a Trump presidency could also bring tariff protection for Tesla against foreign competition for
those models manufactured in the United States. The economy has been a challenge for many
consumers seeing rising inflation and decreased disposable income (Swagel, 2024). The number
of electric charging stations is another external force that has an impact of Tesla’s marketing and
planning strategy (Shi et al., 2022).
Q3. Discuss the aspects of the organization’s customer relationship management (CRM)
program. (Ch.5)
Tesla had been a customer of Salesforce for many years and leveraged the Salesforce
CRM product portfolio until recently when they decided to build their own internal CRM (A &
A, 2024). Tesla uses CRM in four distinct ways. First, they leverage CRM for user centric design
by having a very detailed understanding of who their customer is and what they want (A & A,
2024). Second, they use CRM to enable personal driver profiles to control things like seat
position, mirrors, and temperature providing a custom feel for the driver (A & A, 2024). Third,
Tesla uses their CRM to engage with customers by selling directly to the end customer and
engaging in a real-time fashion to draw valuable insights (A & A, 2024). Fourth, Tesla uses
CRM to provide dynamic personalization, so the car reconfigures itself automatically in line with
the customers preferences (A & A, 2024).
Q4. Explain which consumer characteristics (personal, psychological, cultural, situational,
social) matter most in the purchase decision. (Ch.6)
Tesla’s consumer characteristics the matter most are the psychological characteristics
(Zucchi, 2024). “These forces drive the need, shape the content and format of information stored
in memory, and have an effect on point of view about products and brands” (Marshall &
Johnston, 2023). Tesla’s customer tends to be an early adopter of technology, eco-friendly
desiring a low carbon footprint, and on the wealthier side of the economic class (Zucchi, 2024).
Q5. Explain how the product/service is positioned in the market. Quote or create a
positioning statement for the product/service and explain its rationale. This statement must
address the following:
a. The primary target market
b. The value proposition
c. The points of difference from competitors
Format the statement with quotation marks, italics, or bold print. (Ch.7)
Tesla has positioned itself as the luxury, eco-friendly brand that blends sustainability with
technology to exceed customer expectation (Unknown, 2024). “Another crucial element
in@Tesla's positioning strategy@is 'innovation.' Known for their cutting-edge technologies, Tesla
cars stand for more than just transportation” (Unknown, 2024).@Tesla has also leveraged their
CEO Elon Musk to bring additional credence to the innovation positioning due to his other
ambitious companies SpaceX and Neuralink (Unknown, 2024).
Positioning statement for Tesla: (Self-created)
“Tesla is the leading manufacturer of high-performance, luxury electric vehicles
designed for the environmentally conscious, tech-savvy consumer. Unlike the competition who
focus on fossil fueled vehicles, Tesla offers an experience like none other. Embracing technology
that provides a customized driver experience, leveraging an extensive Supercharger network,
and exemplifying innovation though sustainable energy transformation, Tesla stands out
amongst the crowd.”
This statement effectively captures the unique value that Tesla brings to the market while
aligning with the mission of Tesla. The statement also highlights who the target market is and
why they should be consumers of Tesla.
References:
A, Viktor., & A, P. by Viktor. (2024, August 7). Tesla CRM strategy: An insider blueprint
revealed (2024). CRMside. https://crmside.com/tesla-crm-strategy/
Hodgson, S. (2024). Your guide to the tesla marketing strategy, segmentation, positioning and
targeting. Brand Fabrik.
https://fabrikbrands.com/branding-matters/brand-marketing/tesla-marketing-strategy-
segmentation-positioning-and-targeting/
IRS. (2024, August 8). Credits for new clean vehicles purchased in 2023 or after. Internal
Revenue Service. https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-
purchased-in-2023-or-after
Marshall, G., & Johnston, M. (2023). Marketing Communications. In Marketing Management
4th ed., essay, McGraw Hill Education LLC.
Shi, M., Zhang, Y., & Zhu, C. (2022). A Review of Factors Affecting Tesla’s Profitability. BCP
Business & Management, 26(1821), 18–24.
Swagel, P. (2024, May). An update about how inflation has affected households at different
income levels since 2019. Congressional Budget Office.
https://www.cbo.gov/publication/60267
Unknown. (2024). Tesla segmentation, targeting, and positioning. Boardmix.
https://boardmix.com/analysis/tesla-segmentation-targeting-and-positioning
Zucchi, K. (2024, October 13). What drives consumer demand for Tesla?. Investopedia.
https://www.investopedia.com/articles/personal-finance/021715/what-drives-consumer-
demand-tesla.asp
