Sample Marketing Coursework Paper on Tesla M3 Marketing

Tesla M3 Marketing

Product/Service and a Brief History of the Firm

Tesla Motors, Inc. was established in 2003 and is located in Palo Alto, California. The American energy storage and automotive company develops, produces and sells battery products, electric vehicle powertrain components, and electric cars. The primary objective of the company has been to commercialize electric cars. The company has been able to develop products such as Model S and X, and Model 3. Model-3 (M3) is the latest one, and it is being tested for mass-market production.

4 Ps of Marketing

Product: In comparison to Model-S, Model-3 is 20% smaller and more efficient (O’Hara, 2015). The product is positioned to be the mass-market electric vehicle. The product though highly priced when compared to other hybrid and mass-market electric vehicles, it stands out in terms of driving range of about 200 miles (O’Hara, 2015).

Place: In general, Tesla does not possess a dealer network like other players, including General Motors, Fiat Chrysler, and Ford. The Model-3 operates a differentiated selling strategy, particularly an online platform. The Model-3 is distributed based on company-owned distribution model, which is composed of company-owned stores and online sales model (Tesla, 2016).

Promotion: Tesla promotes Model-3 through conventional methods, such as having salespersons specialists at its stores. The company also uses online platform to promote Model-3 to its customers (Tesla, 2016).

Price: The cost of Model-3 is $35,000 prior federal incentives (O’Hara, 2015). This is high compared to other hybrid and mass-market electric vehicles, which cost not more than $30,000. The company uses a competitive pricing strategy for Model-3. Model-3 is an exquisite product offered at high price.

 New 4 Ps

 People: M3 is designed by technology specialists and promoted and sold through sales specialists (Thill, 2013).

Processes: Model 3 is developed based on technology based process, such as website to communicate to the targeted consumers.

Programs: Tesla a Destination Charging program that provides Superchargers to its cars, including M3, and this more likely to give it a competitive advantage over its competitors.

Performance: M3 performs better than Model S and X, hence its mass-market production. It is designed to realize a 5-star safety rating (Tesla, 2016).

Scanning the Market Environment

Economic: The need for cost effective, economic, and efficient cars has prompted Tesla to design, produce, and sell M3 in mass-market. The economic growth in the field of alternative energy and increased oil prices has increased the demand for more efficient cars. According to the Economic Times (2016), consumers have pre-ordered $13.7 billion of the electric sedans before they can be produced for the mass market. 

Technological: There are more opportunities resulting from technology that Tesla has capitalized on when developing model 3. For instance, the need for convenience and safety of cars has compelled consumers to accept Model 3. Internet Impact, rapid globalization, and technology advancement have positively influenced the automotive industry, inclusive of Model- 3 (Tesla, 2016).

Consumer’s Tastes and Preferences: Model 3 is developed to meet the needs environmentally conscious consumers, aiming at reducing the effects vehicles have on the environment. Since buyers have lost faith on fuel, they have shifted to electric cars which are eco-friendly; Model 3 stands out as a preferred kind of car for consumers (Tesla, 2016).

Social/Cultural Factors: The social/cultural factors are linked to environmental attitudes, concerns, and emphasis on products that are eco-friendly, such as Model 3. The idea of owning Model 3 improves the social status of a consumer.


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O’Hara, M. (2015). An investor’s guide to Tesla Motors Part 1 of 18. Retrieved from

Tesla Motors. (2016). Tesla fourth quarter & full year 2015 update. Retrieved from

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The Economic Times. (2016). Demand for Tesla’s new model 3. Retrieved from

Thill, A. (2013). Tesla motors marketing mix. Retrieved from