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The impact of technology on consumers lives


A brief introduction to the internet

Ø    It passed some decades already since the history of the internet began. Considering that only half of the world’s population was online in 2017, this might be only the beginning. Now the internet has become the main source of information for billions of people at home, at school, or at work.

Ø    The internet is continuously changing. The social web and the mobile technology marked its recent evolution. These two innovations have changed the way people use the internet today. (Internet World Stats, n.d.). Now people use the internet for so many purposes, and many of them wouldn’t imagine a world without internet.

Ø    Initially the Internet served to interconnect laboratories engaged in government research. ARPAnet was the first version of the internet in 1969, and it was intended to link computers at UCLA and Stanford. After World Wide Web was invented in 1989, the first web browser available to the public was launched in ‘93 (BroadbandSearch, n.d.). Since 1994 the internet has been expanded to serve millions of users and a multitude of purposes all over the world (InternetWorld Stats, n.d.).

Access to internet

Ø    At the end of 2020, there were almost 4.66 billion active internet users, which means 59.5 percent of the global population. 91% of all these users are mobile internet users, which proves that mobile became the first channel for internet access. (Statista, 2021).

Digital devices used by audiences

Ø    Not too long ago, desktop and stationary hardware ruled the world of internet. But with the latest evolution, the focus now shifted towards mobile. Some of the most common mobile devices include smartphones, tablets, laptop, smartwatches, digital cameras, or gaming consoles.

Ø    Today the majority of traffic internet comes from mobile sources, especially from smartphones. Statistics indicate that almost 60% of all internet traffic is attributed to mobile devices. (Telemedia, 2020).

How customers search for information

Ø    Today we have access to so much information available on billions of websites. The search engines are the tools to help us find exactly what we need. Search engines like Google, Yahoo, or Bing, allow users worldwide to enter keywords and sift through all the existing websites to find the information they search for. (Anmar Frangoul, 2018).

Ø     The evolution of mobile phones, voice assistants, video search engines, or the dynamic of search intent, have changed the ways in which people use search engines. (backlinko, n.d.).

Ø    The search intent is redefining the marketing funnel. People search for immediate answers on their devices, and every time they do it, it is a different way. There are four main types of search intent: Informational (Users searching information about a certain topic, but not intended to buy anything), Navigational (Users intending to visit a certain website), Transactional (Users are searching for information having the purpose to buy something), and Commercial (Users being close to make a purchase, or deciding between a few options) (backlinko, n.d.).

What consumers buy online

Ø    The latest statistics rank fashion as the most popular category of all internet purchases. For 2021, this category is expected to reach $759.5 billion of the total eCommerce expenditure online. The next category is Toys, Hobby, and DIY, followed by electronics and media products. (Oberlo, n.d.).

Ø    The current pandemic situation had a huge effect on the retail sector with many stores forced to close. If we take the example of the UK and compare the proportions of sales during one year of pandemic, we notice that the proportion of total sales in online has grown by over 10%. (Rhys Dalgleish, 2020).

Video consumption

Ø    In the past few years there have been fantastic changes in online video consumption of all types. We can see that from our daily life, but the statistics are making it clear.  Interesting to be mentioned would be that: YouTube has over a billion users, almost one-third of total internet users, More than 500 million hours of videos are watched on YouTube each day, 87% of online marketers use video content, Over 500 million people are watching video on Facebook every day (Mary Lister, 2020).

Ø    A recent statistic from Statista shows that 27% of online viewers spent more than 10 hours watching videos. (Statista, 2021).

Ø     To understand what users are watching online in 1 day and why they do it, Google conducted a survey and the results showed that people’s viewing habits are changing. For example, 70% of respondents said that their content choices are influenced by their mood. Another aspect to mention is that people are placing more value on content that relates to their personal passions (Google, n.d.).

Summary

Ø    Internet had quickly evolved, and for sure in the next years there will be further development

Ø    The rise of smartphones has completely changed the world, with a huge impact on mobile internet usage

Ø    The search engines have totally changed the way people search for information, and with the rise of smartphones, mobile search will continue to take over.

Ø    As internet access is quickly increasing worldwide, the number of digital buyers is continuously rising. In 2019, an estimated 1.92 billion people purchased goods or services online. (Statista, 2021).

Ø    The mobile evolution also changed the way users are watching videos. Nowadays video content is being watched more than ever before.

 


SlideShare link: https://www.slideshare.net/secret/mwBxNDCYFUEs7t

Youtube link: https://youtu.be/mhPXRkKN69g

 

 

 

Tesla’s Product

 


Tesla's Product 

According to Neil H. Borden (n.d.), the marketing mix of a company consists mostly in the product of the evolution which comes from day-to-day marketing. At any time, the mix represents the program that management has evolved to meet the problems constantly encountered in an ever-changing, challenging market. To solve these problems, the companies may apply a few actions like new products, aggressive promotion, or price change.

(B. Anderson, 2019) Tesla’s S3XY models

Tesla was founded in 2003 by a group of engineers willing to prove that people didn’t need to compromise to drive electric cars. (Tesla, n.d.). The company produces electric vehicles, but it also offers related products such as solar energy generation and energy storage products. This is a type of growth related to the diversification of product. (Cole Ehmke et al., n.d.).

Like most of its competitors, Tesla offers financial services. For some of the loan programs, it has a resale value guarantee provision.  (KRISTINA ZUCCHI, 2021).

Regarding the automotive sector, currently Tesla produces only 4 models of vehicles: Model 3 - a four-door sedan; Model Y - a sport utility vehicle (SUV); Model S - a four-door sedan and Model X - an SUV.

                                            (Tesla, n.d.) Model X price

Apart from the physical product itself, there are elements associated with the product that customers may be attracted to. (Cole Ehmke, Joan Fulton, and Jayson Lusk, n.d.)  In Tesla’s case, these elements could include quality, features, options, services and warranty. For example, The Basic Vehicle Limited Warranty covers a vehicle for 4 years or 50,000 miles, but it also offers extended types of warranty. The company also offers an additional 8 years battery warranty (Tesla, n.d.).

Tesla’s models are being special also due to its outstanding features. The Autopilot feature is surely one to be mentioned. This is an advanced safety technology, designed to assist the driver with the most burdensome parts of driving.

The Advanced Sensor Coverage is a great feature that consists of eight surround cameras that provide 360 degrees of visibility around the car at up to 250 meters of range. Other twelve ultrasonic sensors complement this vision, allowing for detection of hard and soft objects. (Tesla, n.d.). 

Through the OVER-THE-AIR-UPDATES, Tesla cars are being regularly improved by adding new features and enhance existing functionality via Wi-Fi. (Tesla, n.d.).

  Evans, S., (2018) Tesla Roadster SpaceX launch

Another important aspect to be mentioned is the range of Tesla cars. Due to its high-powered battery tech, a Tesla Model S can get to 360 miles without stopping to charge. Compared to its electric car competitors such as Chevrolet, Jaguar and Nissan that can only make it about 240 miles, Tesla is without doubt the best. (Faiz Siddiqui, 2020).

(Tesla, n.d.) Tesla Gigafactory

Some other electrical vehicles, such as BMW i3 or Audi e-tron, have also a limited range: BMW i3 has a range between 182 and 188 miles (BMW, n.d.). Audi e-tron has a range up to 298 miles. (Audi, n.d.).

Tesla models are modern, sporty cars, but more than that, they are spacious cars. There is no fuel storage into a Tesla car, and it also has a front truck.

In 2020, Tesla’s vehicle deliveries reached almost 500,000 units and this proves that the company is the fastest-growing brand worldwide and the leading electric vehicle brand.

At the same time, Model 3 has become the world's best-selling plug-in electric vehicle model.  (I. Wagner, 2021).


Tesla is focusing on one product at a time, fact which ensured the success of the company. While focusing on producing a certain model, the company develops new models to expand its customer base. (Amy Wu, 2019).

The most considerable part of the company’s profit comes from automotive sales. This segment accounts for 94% of total revenue and almost 100% of total gross profit (Alan Farley, 2021).

(Patrick T. Fallon, n.d.) An employee speaks with a customer at a Tesla showroom

Obviously, Tesla is a successful company and the fastest growing brand worldwide. Developing completely new technologies, the company forced the entire automotive makers to adapt and develop their own electric models. Tesla’s cars are being modern, safe and high-performant, convincing more and more people around the world to be interested in them.

(Tesla n.d.) Superchargers on the road

Reference list:

NEIL H . BORDEN (n.d.) The Concept of the Marketing Mix [online] Available at: http://www.guillaumenicaise.com/wp-content/uploads/2013/10/Borden-1984_The-concept-of-marketing-mix.pdf?tstamp=07eebed3b9c56925564bc02b9482e6e1750090a5 [Accessed 15 February 2021];

Cole Ehmke, Joan Fulton and Jayson Lusk, (n.d.) Marketing’s Four P’s: First Steps for New Entrepreneurs [online]. Available at: https://www.extension.purdue.edu/extmedia/ec/ec-730.pdf?tstamp=027fd58512a4ef1f187e195897d399d64da1ef6d [Accessed 15 February 2021];

Tesla (n.d.) Vehicle warranty [online]. Available at: https://www.tesla.com/en_GB/support/vehicle-warranty [Accessed 15 February 2021];

Tesla (n.d.) About [online]. Available at: https://www.tesla.com/en_GB/about  [Accessed 15 February 2021];

(KRISTINA ZUCCHI, 2021) What Makes Tesla's Business Model Different? [online]. Available at: https://www.investopedia.com/articles/active-trading/072115/what-makes-teslas-business-model-different.asp [Accessed 17 February 2021];

I. Wagner (2021) Tesla - statistics & facts [online]. Available at:   https://www.statista.com/topics/2086/tesla/ [Accessed 17 February 2021];

ALAN FARLEY (2021) How Tesla Makes Money [online]. Available at:   https://www.investopedia.com/tesla-s-largest-revenue-source-is-automotive-sales-4799069  [Accessed 17 February 2021];

Amy Wu (2019) The Story Behind Tesla's Success (TSLA) [online]/ Available at: https://www.investopedia.com/articles/personal-finance/061915/story-behind-teslas-success.asp [Accessed 18 February 2021];

BMW (n.d.) BMW i3 [online] Available at: https://www.bmw.co.uk/en/topics/discover/electromobility/electric-cars.html  [Accessed 18 February 2021];

Audi (n.d.] e-tron [online]. Available at: https://www.audi.co.uk/electric.html [Accessed 18 February 2021].

Tesla (n.d.) Future of Driving [online]. Available at: https://www.tesla.com/en_GB/autopilot [Accessed 18 February 2021];

Tesla (n.d.) Support software updates [online]. Available at: https://www.tesla.com/en_GB/support/software-updates [Accessed 18 February 2021];

Faiz Siddiqui (2020), Teslas still go much farther on a single charge than their competitors. But the strategy carries risks [online]. Available at: https://www.washingtonpost.com/technology/2020/01/10/tesla-battery-range/ [Accessed 18 February 2021];

Anderson, B. (2019), Tesla’s S3XY Family [online], in carscoops.com. Available at: https://www.carscoops.com/2019/03/teslas-s3xy-family-is-complete-but-are-they-actually-sexy/#lg=1&slide=1 [Accessed 08 February 2021];

           Tesla (n.d), Model X price [online] in tesla.com. Available at                                                               https://www.tesla.com/en_gb/modelx/design#battery [Accessed 08 February 2021]

   Tesla (n.d.) Tesla website page – Inventory [online] in tesla.com. Available at:        https://www.tesla.com/en_GB/inventory/new/m3?arrangeby=plh&zip=94107&range=0 [Accessed 10    February 2021];

        Evans, S. (2018) Like a Rocket: The Story Behind SpaceX’s Plan to Launch a Tesla Roadster Into   Space [online] in motortrend.com. Available at: https://www.motortrend.com/news/like-rocket-story-  behind-spacexs-plan-launch-tesla-roadster-space/ [Accessed 11 February 2021];

    Fallon, P. (n.d.), An employee speaks with a customer at a Tesla showroom. [online] in Bloomberg.com. Available at: https://www.bloomberg.com/news/articles/2020-01-23/tesla-clears-road-for-rivian-others-to-sell-evs-without-dealers. [Accessed 11 February 2021];

      Tesla, (n.d.) Tesla Gigafactory [online] in tesla.com. Available at: https://www.tesla.com/gigafactory [Accessed 11 February 2021]

  Tesla (n.d.) Superchargers on the road [online] in tesla.com. Available at: https://www.tesla.com/en_GB/supercharger?redirect=no [Accessed 12 February 2021]; 


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