Milestone 8

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Feb 20, 2024

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Milestone Eight Assignment Amy Richard Southern New Hampshire University MKT 500: Marketing Strategies Professor Tina Brown November 10, 2023

Integrated marketing communications is “carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products” (Armstrong & Kotler, 2023 p. 616). IMC involves all four promotional tools in a company’s promotional mix. These promotional tools are advertising, sales promotion, personal selling, and public relations (Armstrong & Kotler, 2023 p. 376). Advertising is defined as “any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor” (Armstrong & Kotler, 2023 p. 377). I plan to advertise the Model F weekly through YouTube for three months at $2,000 per 100,000 views. This is roughly the average cost to advertise on YouTube (Heitman, 2023). Advertisements on YouTube often appear halfway through a video or prior to a video starting. A expect my advertisement to receive 300,000 views per month for all three months. This will add $18,000 to my promotional budget total. My advertisement will portray the Model F in an attractive way. The advertisement will show all the Model F’s features and educate viewers on the Model F and how it will benefit air pollution, global warming, and the economy. Sales promotion is defined as “short-term incentives to encourage the purchase or sale of a product or service” (Armstrong & Kotler, 2023 p. 377). This is often done through discounts and promotions. I plan to offer a $5,000 discount to those who make a purchase through my referral program within the first year. “A referral program is a word-of-mouth marketing tactic where existing customers tell their friends, family, and colleagues about your brand, products, or services. Typically, the customer receives a reward from the company when the person they refer makes their first purchase” (How to build a customer referral program in 2023 (+ examples), 2023). A referral program is an efficient and effective way to promote a brand and/or product. It

promotes more trust amongst consumers and, because program customers often share their referral links on social media, referral programs increase your company’s social media presence. “Studies reveal 71% of consumers are more likely to make a purchase if they were referred on social media” (Kang, 2023). As a way of saying thank you to my referral customers, each referral customer will receive $500 per referral sale. For example, if a referral customer persuades four individuals to purchase a Model F through their provided referral link, they will receive $2,000 as a reward. Although this may seem like a lot of money to reward each referral customer, these are sales that would not have been made otherwise. I expect ten percent of every 1,000 referral customers to make at least one referral within the year. This will roughly add $50,000 to my promotional budget on top of the $5,000 discount per sale. Personal selling is defined as “personal customer interactions by the firm’s sales force to engage customers, make sales, and build customer relationships” (Armstrong & Kotler, 2023 p. 377). There are approximately 236 Tesla dealerships in the United States (Number of Tesla dealers in the United States in 2023, 2023). Of those 236 dealerships, I plan to thoroughly educate two salesmen from each one on the Model F so they can effectively and efficiently share with customers all product details. I plan to educate these selected salesmen by offering a two- day training video on Articulate 360 that will cost around $1,099 for the year. Tesla pays their salesmen about 70% higher than other salesmen at $24.13 per hour (Sales Advisor hourly salaries in the United States at Tesla, n.d.). When you add in employee hourly pay at about twenty-five dollars per hour, it is projected that I will spend around $400 per trainee. With two salesmen chosen from each Tesla dealership, my promotional budget will increase about $189,899.

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Public relations is defined as “activities designed to engage the company’s various publics and build good relations with them” (Armstrong & Kotler, 2023 p. 377). I plan to host a company raffle annually at Tesla headquarters. At this event, all money put towards raffle tickets will go directly to charities like Feeding America, Dana-Farber Cancer Institute, Save the Children Federation, and Step Up for Students. Each raffle will contain a single prize ranging in size. Every year, the largest prize will be a free Model F in your choice of color. Some other prizes may include a $2,000 bonus, an additional two weeks' paid vacation, etc. By hosting this charity raffle event, I expect roughly $250,000 to be added to my total promotional budget. I obtained this calculation by adding together the estimated costs of decorations, prizes, and food. My primary objective for my promotional approach is to create overall awareness of the Model F and to educate consumers of the product and its benefits for the environment and the economy. Brand awareness “describes the level of recognition of a brand, product, or service among consumers. Strong brand awareness has several benefits, including increased sales, improved customer loyalty, and a strengthened competitive position” (Deren, 2023). On top of advertising on YouTube, launching a referral program, training and educated selected Tesla salesmen, and hosting a charity raffle event for employees, I also plan to increase my website’s search engine optimization. With the help of all these tasks, I plan to increase brand awareness by thirty-five percent within a year. This is my main advertising goal to which I will measure success for my advertising expenditures. “SEO or “Search Engine Optimization” is a digital marketing strategy that targets a website’s presence in search results on search engines. Intelligent use of SEO in your writing can increase your visibility in search results” (What is SEO? And How to Use it in Your Writing,

2021). By increasing our website’s search engine optimization, several goals will be accomplished. These goals include:  Increase organic website traffic  Improve lead generation numbers  Generate more online sales  Attract more local foot traffic  Improve online visibility (Chapter 5: SEO Impact: How SEO Drives Long-Term Results, n.d.) Although it will not add to my promotional budget, it requires a lot of time and patience to increase your website’s SEO. To increase your website’s SEO, one must constantly update the website’s content. By doing this, it will seem as though the website was recently published, which will then bring it back to the top of search results on search engines. To increase your website’s SEO, one could also structure their website’s content for featured snippits. Snippits are the large, bold boxes that appear at the top of search results on search engines. The information within snippits is often a combination of the ten top search results. The use of subheadings is the most effective way to structure your website’s content for featured snippits (Lyons, 2022). I believe that advertising and sales promotions are the most effective when attempting to promote a new product, especially for products that are more costly like the Model F. Advertising and sales promotions not only grasp the attention of consumers and gains awareness, but also persuades them into making a purchase. For example, researchers have discovered that “63% of consumers say they’ve bought an item just because they had a coupon for it or it was on

sale” (Djordjevic, 2023). Furthermore, both promotional tools appear to be cheaper in price which will gain Tesla the most “bang for their buck”. My target market is city-living individuals of the middle to upper class who are in their late forties to early sixties, business professionals, tech-savy, and ecofriendly. Of my target market, I expect to spend around $100 per customer to reach them and to have them purchase a Model F and to contract with me. I obtained this calculation by taking my total promotional budget amount and dividing it by the rough number of individuals in my target market. Through my referral program, my referral customers will be most likely to use Facebook and Instagram since they are the most used social media platforms. I have also chosen YouTube to advertise because it is the number one video streaming platform in the world. Social media is the most effective way to promote a product today because it allows one to reach a large audience, is often low cost, and allows one to measure their results more efficiently. Although I will not have much control over what my referral customers will say about the Model F, I plan to create a short advertisement video on YouTube that tells the compelling story about global warming and air pollution as a result from gasoline-powered vehicles. My advertisements will contain a catchy slogan like “Drive with style while you care for the air”. I plan to show these advertisements several times throughout the week in the first three months until many viewers become aware that the product exists. After that, I will show these advertisements two to three days a week for the rest of the year to constantly remind viewers that the product still exists.

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References Armstrong, G., & Kotler, P. (2023). Marketing: An introduction. Pearson. Chapter 5: SEO Impact: How SEO Drives Long-Term Results. (n.d.). WebFX. https://www.webfx.com/seo-guide-marketing-managers/seo-impact/ Deren, K. (2023, February 9). 9 Steps to Solid Brand Awareness Strategy [2023]. Brand24. https://brand24.com/blog/brand-awareness/#:~:text=It%20describes%20the%20level %20of,to%20know%20about%20brand%20awareness . Djordjevic, M. (2023, September 15). Intriguing Coupon Statistics: How Many People Use Coupons in 2023?. Save My Cent. https://savemycent.com/how-many-people-use-coupons/#:~:text=On%20average%2C %20statistics%20on%20coupon%20usage%20show%20that,coupon%20for%20it%20or%20it %20was%20on%20sale. Heitman, S. (2023, February 17). Starter Guide to YouTube Advertising Costs in 2023 (+5 Ways to Spend Less). LocaliQ. https://localiq.com/blog/youtube-advertising-cost/#:~:text=Here%20are%20some%20other %20benchmarks%20around%20YouTube%20advertising,to%20reach %20100%2C000%20views%20of%20your%20YouTube%20ad. How to build a customer referral program in 2023 (+ examples). (2023, January 4). Zen Desk. https://www.zendesk.com/blog/customer-referral-program/#:~:text=A%20referral %20program%20is%20a%20word-of-mouth%20marketing%20tactic,the%20person%20they %20refer%20makes%20their%20first%20purchase .

Kang, J. (2023, October 18). Why Referral Programs Work? 16 Ways You Can Benefit From Customer Referrals. ReferralRock. https://referralrock.com/blog/reasons-why-you-need-a- referral-program/#SnippetTab Lyons, K. (2022, August 12). Improve SEO: 11 Steps to Improve Your Rankings. Semrush Blog. https://www.semrush.com/blog/improve-seo/ Number of Tesla dealers in the United States in 2023. (2023, September 26). ScrapeHero. https://www.scrapehero.com/location-reports/Tesla-USA/#:~:text=There%20are %20236%20Tesla%20dealers%20in%20the,United%20States%20as%20of%20September %2026%2C%202023 . Sales Advisor hourly salaries in the United States at Tesla. (n.d.). Indeed. https://www.indeed.com/cmp/Tesla/salaries/Sales-Advisor#:~:text=Average%20Tesla%20Sales %20Advisor%20hourly%20pay%20in%20the,%2424.13%2C%20which%20is %2073%25%20above%20the%20national%20average. We Updated Articulate 360 Pricing on July 15, 2022. (2022, December 30). Articulate 360. https://articulate.com/support/article/articulate-360-pricing-change What is SEO? And How to Use it in Your Writing. (2021, March 5). TakeLessons. https://takelessons.com/blog/what-is-seo-and-how-to-use-it-in-your-writing

Milestone 8

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