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Tesla Motors Company’s Distribution Channels


Tesla Motors, established by three persons – Marc Tarpenning, Elon Musk, and Martin Eberhard is a corporation that creates a very high-routine electric games car and is supported by a large amount of elevated-profile shareholders. “Tesla’s goal is to produce increasingly affordable electric cars to mainstream buyers – relentlessly driving down the cost of EVs. Palo Alto, CA-based Tesla has delivered more than 1000 Roadsters to customers in North America, Europe, and Asia. Tesla designs and manufactures EVs and EV power train components. It is currently the only automaker in the U.S. that builds and sells highway-capable EVs in serial production. The Tesla Roadster accelerates faster than most sports cars yet produces no emissions. Tesla service rangers make house calls to service Roadsters” (Tesla Motors and Toyota motor corporation intend to work jointly on EV development, TMC to invest in tesla, 2010, para.5).

Consumer behavior behind purchasing the Tesla car mainly depends on the traditions of the society, communal factors, personal attitude, and psychological aspects existing in the society. Any marketplace cannot direct such issues. But we can take into consideration this sort of subject while lunching merchandise or services. Basic necessitate satisfaction is also a driving feature in buying decisions. The psychological necessitate comprises of appreciation, regard, and belonging. When citizens act something they set up learning something.

Various alternative ways are there for making a product available to the customers. Tesla consumers offer a maximum intensity of services for providing uniqueness with regard to its product and services. To understand various alternative methods are there for making a product available to the customer’s firstly it is necessary to conduct market research. This will offer management by way of appropriate, precise, consistent, legitimate, and recent data. Based on the data available through the market research, the marketing manager makes and takes decisions with regard to the distribution channels of the Tesla motors. The marketing manager creates many deliberate and premeditated decisions in the procedure of recognizing and satisfying consumer requirements. They generate a decision on potential chances, target marketplace assortment, marketplace segmentation, preparation and executing marketing plans, marketing routines, and power. All these decisions of marketing managers are complicated by communications among the convenient market variables of goods, advertisement, pricing, and distribution. The decision about the distribution channel of the Tesla motor car is very much relevant for making a product available to the customers. With the intention of making easy an efficient and excellent distribution scheme, a lot of decisions must be prepared to consist:

  • Evaluating the most excellent distribution canal for receiving goods to consumers.
  • Verify whether a reseller network is required to help in the distribution procedure.
  • Organizing a consistent ordering scheme that facilitates consumers to situate orders.
  • Making delivery scheme for transporting the particular goods to the consumers.

And also the two most important types of distribution channels of products are wholesaling and retailing. The relative importance of these two types of channels is very much significant for making decision with regard to the distribution channel of the Tesla motor car. Gone is the occasion when citizens use to encourage their brand name of the product by customary ways of marketing. At present, by way of technical development, it has turned out to be extremely convenient to purchase, put up for sale, or market a variety of goods and services. There are different methods of supporting a brand name like a published medium. This is mainly by way of advertisements in the course of correspondence, magazines, brochures, etc. and electronic medium:

The Marketing Mix: Distribution Channels (Place)

The term marketing mix refers to the primary basics that must be attended to right market a product or service. It is almost certainly the most famous marketing term. Its elements are basic, planned components of a marketing plan. Place decisions are those connected with channels of distribution that hand out as the means for receiving the product to the target customers. In marketing mix, place strategy refers to how an organization will distribute the product or service they are offering to the end-user. The place is the “term really refers to any way that the customer can obtain a product or receive a service. Provision of a product or service can occur via any number of distribution channels, such as in a retail store, through the mail, via downloadable files, on a cruise ship, in a hair salon, etc. The ease and options through which you can make your product or service available to your customers will have an effect on your sales volume” (Noles & Jones, 2010, para.5).

Distribution is the function of receiving goods into the hands of the customer. It is the way by which goods move from the place of production to the place of consumption. Place decisions are those connected with channels of distribution that provide the means for getting the product to the target customers. Channels of distribution are the means working by manufacturers and sellers to get their products to the market and into the hands of users. These management tools are used to move possessions from place of production to place of consumption.

Distribution Strategies

Commonly depending on the character of product distribution strategies are three types.

  • Intensive distribution: The intensive distribution is used to deal out low priced purchase products.
  • Exclusive distribution: The exclusive distribution involves limiting distribution to a single passage. In this case product is usually highly priced, and requires the agent to place much detail in its sell.
  • Selective Distribution: This case small number of retail outlets is selected to distribute the product.

As being the Marketing manager of the Tesla motors we choose the place K Street in US for the distribution of Tesla Motors. K Street is the place which is located in Washington the capital of US. K Street provides a major east-west thoroughfare for traffic through Washington, primarily from Mount Vernon Square to the Whitehurst Freeway. K Street was extended to the west to the Washington canoe club. “The Washington Post is reporting that California-based Tesla Motors is close to leasing space on K Street for a dealership and service station. Tesla, founded in 2003, is a maker of luxury electric cars. Tesla told the Post the location they are considering is at 1050 K Street, NW” (Tesla motors considering k street location, 2010, para.1).


Normally Tesla cars have sporty nature which can move very fast. City officials are scheduling at the opportunity to get an arrangement inked for Tesla. Tesla car’s features specially effects the specialty of the location of K Street.

For building a victorious marketing mix it is essential that capable customer research is undertaken. There in marketing mix the “place is important when the goods are available to customer timely and its storing and transportation arises. When a product reaches to the right customer at the right time then there reveals the success of best distribution method. The selection of distribution process will depend on a series of position. In case of K Street the location is very perfect which is helpful to both those manufacturers who use to sell to retailers or to direct to the customers. The method of distribution should be based on positioning of products and target audience.

Reference List

Noles, B., & Jones, J. (2010). Definition of marketing mix-product, price, place & promotion. Virtual Accuracy Companies. Web.

Tesla motors and Toyota motor corporation intend to work jointly on EV development, TMC to invest in tesla. (2010). Toyota USA Newsroom. Web.

Tesla motors considering k street location. (2010). Portfoli Curated Curiosity. Web.


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