For those of you who don’t know, Nikola Tesla was a Serbian inventor, scientist, and one of the greatest innovators of all times, known for his enormous contributions in the areas of electricity, radio, and robotics. Probably one of the greatest marketing and publicity stunts of our time. Still, the “not spending any money on marketing” story is great marketing itself. It’s like if you’re a restaurant and you’re serving hamburgers and there’s like an hour and a half wait for hamburgers do you really want to encourage more people to order more hamburgers?”. Personal selling 3. But he thinks he’d blow our minds…”. Of course, there’s a simple explanation behind the alleged absence of a more meaningful Tesla marketing strategy. Instead, the electric automaker focuses on social media marketing. Touted as the most valuable car company in the world, Tesla has earned this position within a short span of 17 years, dethroning the long time champion, Toyota. Place Strategy of Tesla After releasing the product and deciding the price, a company needs to make its products visible and available among the target groups. With a growing focus on the damage we’ve done to planet and the need to protect it for future generations, the pressure on individuals to address their footprints has never been greater. That’s why his SpaceX ship was seen cruising the orbit to the tune of David Bowie’s Space Oddity while carrying a Starman in a Tesla Roadster. I rely on Ahrefs to grow my search traffic. In recent years, Nikola Tesla’ s name has once again caught the public eye. What is pretty remarkable is that Tesla does not need to look far to find a marketing strategy that works without being deceptive. Tesla’s marketing strategy is different from others and special. But for now on, they are still selling more than they’re producing. These strategies and tactics enable the global automotive business to manage and influence customer’s expectations and the presentation and development of the corporate brand. If you enjoyed it, sharing the article with marketing friends or with Mr Musk himself is thoroughly appreciated. In summary, Tesla can achieve more with less, because they are always thinking outside the box. Still, plain spaceships are plain boring. So, Tesla doesn’t invest in paid advertising because… they don’t need to. Distribution strategy in the marketing strategy of Tesla : Tesla mostly uses online sales model coupled with company-owned stores to sell its cars and doesn’t use the conventional dealer network. Marketing Examples is so f***ing great. Figuratively speaking, Musk took Tesla’s name and launched it into space (he also literally launched some things into space, but I’ll get into that a bit later). LeadQuizzes has lent $21,750 and counting to support entrepreneurs around the world. The focus is on turning customers into fans. The decision to start the company was made after General Motors forcibly recalled all of its EV-1 electric cars from customers in 2003 and crushed them in a junkyard. When I needed marketing help and a website to bring my vision to offer my services as an entrepreneurship through acquisition mentor to life, Joan was my first call. Can you think of a Tesla ad you’ve seen most recently? 5. One organic tweet from Laura resulted in 5x as many newsletter sign ups as $30 worth of Facebook ads: Thank you for reading. The tried and tested guidelines that state - tweet this much, avoid saying this, include videos, etc. And, simultaneously, they have the best engineers in the world working on a solution to the fossil fuel crisis. “If you go to our stores, we don’t even want to talk about it, really, because we want to talk about the thing that we can supply. Musk’s master plan was (and still is) to rid the world of its oil addiction by offering effective electric cars people would actually want to own and could actually afford. Notably, China exempted Tesla from a … Not only does it serve to guide the company in a forward direction during times of turmoil, but if used strategically, it can greatly help with marketing efforts. In fact, in February 2018, they performed one of the most expensive publicity stunts in the history of marketing. Instead of following the usual guidelines of "tweet this much, include videos" etc., you start to make your own. In addition to today’s announcement of the standard $35,000 Model 3, Tesla has also described a significant shift in their sales strategy. SpaceX is Musk’s aerospace company, which he founded prior to joining Tesla. Copyright © 2020 LeadQuizzes. As part of its PR activities, its surcharging stations on highways and charging ports at malls, hotels, and restaurants have brand nameTesla written over them… Tesla has long favored word-of-mouth and organic strategies to promote its all-electric vehicles over traditional marketing initiatives. The marketing strategy is also known as the marketing mix or the 4P’s (Product, Place, Price and Promotion). The car makes “fart noises”. I guess that’s because they have to be extremely careful about what they’re posting in order to avoid public shame, damaging the brand’s reputation, or even lawsuits. So, I googled. He’d like to come and meet us And they needed money for the second phase – a slightly more practical and more affordable (albeit, still expensive) models – Tesla Model S and Tesla Model X. Global awareness of climate change is forcing companies to seek alternatives to traditional fuels. Tesla’s mission is to accelerate the world’s transition to sustainable energy. Required fields are marked *. One of the many reasons for this unique strategy is that Tesla has more number of orders for cars than they can actually manufacture. David Bowie’s lyrics predicted it decades ago, Musk made it possible in 2018, while the rest of us are still recovering from having our minds blown. Right? This one took a while to write. Tesla’s marketing strategy, then, goes against the trend of developing TV advertisements and pushing its products onto consumers. Did you know that Neil Patel increased lead capture by 500% using LeadQuizzes. You may have to wait for months before you get your hands on your Tesla. Viral marketing (most significant) 2. Tesla marketing strategy has been dubbed as USD0 (zero dollar) marketing strategy largely for its avoidance of paid advertising. But if not, you can still benefit from Tesla in an unexpected way. The price is the price, there’s no negotiation. Then there’s, The email turned my phone into a solid brick. “There’s a starman waiting in the sky Tesla is departing from its stated marketing strategy to adapt to the Chinese market. It was an expensive sports car with outstanding handling, performance, and long range, which demonstrated what’s possible with EVs. In B2B marketing, you need great digital content that drives awareness and creates marketing-qualified leads for your sales team – from blogs, to compelling social media and web content. Tesla's Marketing Strategy on Social - The "Apple" Approach This isn't an approach that necessarily works for everyone, but when you've built a hype machine as Tesla has done, the rules of social media start to change. While its competitors shell out an astronomical amount for its marketing budget, Tesla firmly sticks to its $0 budget marketing. Many CEOs, but not Elon Musk. 1. In order to create fully-electric vehicles available to the masses, a 3-phase Tesla marketing strategy was drafted and put in practice. This multinational company also takes the help of media releases and its PR team to create positive brand awareness. The generic strategy of Tesla, Inc. requires suitable strategic objectives to ensure competitive advantage. I open the moment I see it, and read from, There’s “marketing examples”. You're going to be looking for a long time. If the vehicle production trends continue to increase, however, people from Tesla will probably have to rethink their “no investments in marketing” strategy. They've also got an awesome YouTube channel for anyone wanting to learn SEO. Tie a face to your brand, take a bit more personal approach, engage with your audience, and it could be all the marketing you’ll ever need. What can you learn from this aspect of the Tesla marketing strategy? What’s so different about Tesla’s Marketing Strategy? The graph below shows the total number of mentions across social media channels for most of the world’s most famous car brands. Many CEOs are still somewhat reluctant when it comes to using social media. Essentially, Tesla markets to its customers by not directly marketing to them. And that’s called the place or distribution strategy. So you can see who links to you and your competition! Having fans sell your product is more effective than ever before. Instead of asking “How many views?” ask yourself “How many fans?”. Another strategy that Tesla employs with the Model S is being different from its competitors. It has adopted a unique strategy for promoting its products amongst customers. It would make your average CEO nervous, but Musk isn't your average CEO. Traditional advertising is less effective than ever before. They are unashamedly themselves. The result is both one of the most carefree and one of the most ambitious brands on the planet. Instead, Tesla focuses on word of mouth advertising, and referrals. The original model was sold for 4 years, after which period it was discontinued, but a new version has been announced for 2020, at the base price of $200,000. It encourages others, namely customers, to do the selling for them. I can help. Tesla’s Marketing Strategy It is no secret that brands have started to show more interest in electric vehicles. The car makes “fart noises”. Normally, you’d go to a car dealership, listen to a sleazy salesman trying to push you into buying the more expensive version, decide that you still want the more affordable one, take it out for a test spin, haggle about the price, and eventually walk out with the keys to your new car. Tesla's Model 3 marketing strategy ditches specs for end results. Digital Content Strategy. In this element of the marketing mix, Tesla’s marketing communications strategies and tactics are considered. Elon Musk may be one of the hottest CEOs right now, with Tesla, SpaceX, The Boring Company, OpenAi he has his fair share of experience with marketing. An army of YouTubers explaining “Why I bought the new Cybertruck” in a far more sincere way than any commercial could: 6.9M views * 1 / 5000 conversion = 1,380 Cybertrucks. If somebody orders a Model 3 now, it’s probably late next-year before they get it.”. All thanks to Elon Musk, the CEO of Tesla Inc., an American automotive and energy company, specializing in electric cars, solar panels, and clean energy. Launching Tesla Roadster to space atop SpaceX's Falcon Heavy rocket is the latest example. Not just any Tesla Roadster – the Tesla Roadster Musk bought for himself (paradoxically – from himself) back in 2009. For example, one of the company’s strategic objectives is to increase investment in research and development (R&D) to develop new products that satisfy market demand for enhanced renewable energy solutions, such as batteries for various purposes. The most interesting thing about Tesla — the niche luxury electric car maker — is the role of marketing in selling electric cars that cost $100,000 or more. Use Content Marketing to Champion Your Vision Any company or brand needs to have a solid vision statement. The marketing mix used by Tesla Inc. is a unique one, even in an industry where there are some brilliant marketing strategists. No, they haven’t discovered any of his long-lost prototypes that could change the world as we know it (Tesla already did that once, actually) – it’s literally his name that has been in the spotlight lately. Hence, the Tesla Roadster model was born in 2008. However, as the latest data shows, Tesla has more than doubled the number of vehicles delivered worldwide in the 3rd quarter of 2018 (83,500 units) compared to the previous quarter (40,740 units). And based on the revenue trends ever since 2008, it’s expected to grow even more significantly in the years to come. 3. Sometimes in the marketing of services an extended mix of 7P’s (Process, People and Process) is used. He sure doesn’t restrain from speaking what’s on his mind at any given moment, unlike other CEOs who use social media only to share dull corporate updates and products info. Well, if the best salespeople are your customers perhaps marketing should be a little less about attracting eyeballs and a little more about building relationships. At least not at the moment. There are only a few slight problems with the abovementioned approach: 2. A Yazamo Product. Such a business model has brought Tesla Motor’s revenue for the year 2017 up to a whopping $11.8 billion. The base price of $200,000 doesn’t really sound like that “affordable vehicle for the masses”, right? The reason is as follows: “We’re not promoting the car,” Musk said. Whether it is a picture on Instagram or a repost on Facebook, Tesla is always educating you about its brand and the causes they support. Just click here to share with Elon. Looking for horsepower output or battery capacity? That’s reinforced in Tesla’s mission statement: Tesla’s mission is to accelerate the world’s transition to sustainable energy. If authenticity is how to connect with an audience, controversy is how to multiply an audience. It has no advertising commercial or bill boards, no ad agency, no CMO, nothing and that is the most awesome part about it. But does that mean they spend $0 on marketing? I rely on them to grow my own search traffic. And a free website backlink-checker. I experienced this on a micro level last week. Imagine any other automobile company attracting the world's media to a launch event, smashing two windows, and selling 250k+ units upfront: Competitors spend hundreds of thousands of dollars for a 30 second commercial to play during a basketball game. I love it! In most cases, however, you don’t even get to see the car before you buy it! And it certainly did cost a substantial amount of money. Tesla's marketing strategy on social media This approach doesn't work for everyone. Of course not. As you can see, Tesla in number 3 at the moment, threatening to overtake BMW some time soon. Through low prices and differentiation strategies as well as effective product placement, Tesla has an effective marketing strategy. Tesla, Inc.’s promotional mix has the following components, arranged according to significance in the automotive and energy solutions business: 1. Take the money you earned from the expensive sports car, the somewhat more affordable family car, and invest it into building an even more affordable car – Tesla Model 3. Thanks to Ahrefs for sponsoring. The Model S is the only fully electric luxury sedan made by any company. If I had one just one word to summarise Tesla's success it would be authenticity. At the same time, China made exceptions for Tesla. Their CEO makes memes. And vision statements don’t get much stronger than Tesla’s: It seems like people from Tesla are trying their best not to sell. Sure, it was done under the veil of the SpaceX launch, but still, it’s Tesla advertising 101. It's Weasley's Wizard Wheezesmeets Tony Stark. Tesla, Inc., which was Tesla Motors Inc. in the former days, has reached the heights of success as a dynamic automotive and energy solutions organization. Elon Musk, the mastermind of Tesla’s enormous success, joined the company’s board of directors in 2004 as a chairman, providing much of the initial capital needed to run it. Another rather obvious piece of advice (so obvious that I didn’t think it deserved a section in this article) is to innovate. Their CEO makes memes. The thing about Musk is that he just loves to get personal on social media. “With a small amount of effort we can easily drive the Model 3 reservation number to something much higher but there’s no point. It’s a $30,000-sedan, intended to be sold to the masses. We’ve learned to ignore it. Recently, CEO Elon Musk boasted that “Tesla shells out virtually nothing on advertising and endorsements, and relies heavily on word of mouth.” All Rights Reserved. Marketing Strategy of Tesla Mission and Vision: The vision and mission statement of Tesla reflect the company’s aim for dominance in the global electric vehicles and battery market. In order to create fully-electric vehicles available to the masses, a 3-phase Tesla marketing strategy was drafted and put in practice. Elon Musk. And Musk is the master of this: He smokes weed with Joe Rogan, sells flamethrowers, blasts a Tesla into orbit, and then when it’s time to launch a real product he’s got our attention. If we bear in mind that 95% of car buyers research cars online before they buy, it makes perfect sense – you need to be where your target audience is. And the juxtaposition is captivating. It may be true that they do not spend money on traditional ads, but still, it’s undeniable that Tesla invests significant sums into their marketing strategy. I had worked with Tesla Marketing in the past and I had confidence in Joan’s business savvy and marketing and writing talent. You need to make a $5,000 deposit to book a test drive. Behold the Starman: Be that as it may, it’s not like a part of this SpaceX campaign wasn’t to increase the brand awareness around Tesla. I couldn’t, either. In this category, Tesla cars have become … They are unashamedly themselves. Tesla Mission “Our goal is to create awareness of the potential of Electric Vehicles and particularly around those created by Tesla Motors” We want to bring powerful electric cars from the narrow luxury market to mainstream America -Elon Musk | CEO and Chief Architect 3. It's Weasley's Wizard Wheezes meets Tony Stark. And the juxtap… As a brand, Tesla’s following has stemmed from the ability to create something that people want to be part of. Tesla grasp this. Their strategy is a force to emulate and with a few simple changes, you can put your brand on the same marketing fast-track as Tesla. Now, to dive deeper into these points, here are fifteen lessons we can learn from the apparent marketing strategy of Tesla: Create the Best Possible Customer Experience; Build a Strong Referral Program; Don’t Rely on Paid Advertising; Leverage Your CEO’s Social … The result is both one of the most carefree and one of the most ambitious brands on the planet. And it's fair to say they've succeeded: If I had one just one word to summarise Tesla's success it would be authenticity. Marketing strategy involves the analysis of Tesla as a company without focusing on any of the two brands of cars that are currently at its disposal. Of course, this aspect of the Tesla marketing strategy is only a marketing strategy to a small extent. Exactly innovation is the characteristic shared by both Nikola Tesla and Elon Musk. The promotional and advertising strategy in the Tesla marketing strategy is as follows: Tesla Motors has absolutely zero marketing budget. But an expensive sports car was the only type of electric car effective in terms of ROI back at the time. To own a successful business in 2018, you need to be doing it too. Many people have tried to change the auto industry over the last 40 years and none have succeeded. The process of buying a car is essentially the same as it was a generation ago. Apple does it. 4. - have been ignored. Not if you’re buying a Tesla. It can’t get through ad blockers. Join our team on Kiva. And it has proven effective. Does that mean they spend $ 0 on paid advertising because… they don ’ really! Exactly innovation is the characteristic shared by both Nikola Tesla ’ s expected to even... Use Content marketing to them thoroughly appreciated generation ago number 3 at the i... Promotional mix has the following components, arranged according to significance in the strategy. Following has stemmed from the ability to create something that people want to be looking for long. 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