Tesla is a company that lives on innovation. So when they decided to roll out a new advertising campaign, we were curious about their marketing approach. We wanted to know what kind of Tesla marketing strategy they had for getting people excited about their products.
And so we delved into the company’s history, found out about Tesla marketing strategy, and gave you our thoughts on the matter. The information we collected is based on publicly available facts and results from our extensive research.
Overview of Tesla
Tesla is an American electric vehicle and clean energy company based in Palo Alto, California. The company was found in 2003 by Martin Eberhard and Marc Tarpenning, and CEO Elon Musk has led it since 2008.
Tesla’s mission is to accelerate the world’s transition to sustainable energy through the mass production of electric vehicles. The company sells cars under the Tesla Motors brand and stationary battery pack systems for home, commercial, and utility-scale projects under the Tesla Energy brand.
In June 2018, Tesla operated over 50 retail stores in the United States and over 150 stores globally. In 2017, Tesla sold approximately 100,000 cars and delivered just over 25,000 Model S and X vehicles worldwide. Tesla’s global vehicle fleet surpassed 500,000 cars in September 2018.
Tesla marketing strategy is building a brand rather than selling individual products. This approach is known as “product-as-a-service” and is designed to make Tesla a one-stop-shop for all your electric vehicle needs.
The company offers various products and services, including electric vehicles, solar panels, batteries, and home charging stations. And they are constantly expanding their product line to include new and innovative products and services that will appeal to a wider audience.
In the past, Tesla has relied heavily on word-of-mouth marketing to build its brand. But more recently, they have been using traditional marketing channels to reach a wider audience.
Tesla’s marketing budget has increased significantly in recent years, and they are now spending more on advertising than any other electric vehicle manufacturer.
10 best aspects of the Tesla Marketing strategy
1. Tesla spends a lot on R&D
While Tesla doesn’t spend much on advertising, they invest heavily in research and development (R&D). The company spent more than $547 million on R&D in 2013 than any other automaker. And that number has only increased in recent years. In 2020, Tesla spent 1.5 billion U.S. dollars.
The amount of money Tesla invests in R&D is staggering and demonstrates the company’s commitment to innovation. The reason why companies invest so much into R&D is that it pays off over the long term.
By constantly investing in new ideas and research, you increase your chances of coming up with the next big thing. It’s not an easy process, though, as it requires significant time and resources. But if you are willing to take this path, you could end up reaping the rewards.
2. Tesla doesn’t advertise in the traditional sense
Tesla isn’t just looking to sell cars anymore. They are selling a lifestyle. The company promotes a healthy lifestyle of living life to its fullest, which extends into how they advertise their cars. They don’t run television advertisements or focus on direct-to-consumer sales.
They rely on word-of-mouth marketing instead. They want you to see a Tesla first, talk to friends and family about it, then go on their website and learn everything about the car you’re interested in. That is how you can buy a Tesla at the best price without paying commissions to an independent salesperson.
Tesla Marketing strategy: word of mouth
They don’t need to pay for an expensive television campaign because they aren’t competing against any other car companies. Instead, they focus on telling their own story.
Tesla does an excellent job of making its products stand out through differentiation, but this isn’t just about design. Their products are environmentally friendly, and they want everyone to know that.
They’ve also created a community of people who love their cars and want to share that love with the world. They may have been at a starting point when Elon Musk decided to start his own company, but they’ve done a fantastic job. As a result, many people are buying Teslas.
3. Tesla gives after-sale support to customers
One reason why Tesla is so famous is that they provide high-quality products to its customers. They don’t nickel-and-dime them or overcharge them for their services. They also offer the best after-sale support in the industry.
Their customer service team is second-to-none, and they even go out of their way to ensure that customers are happy and satisfied with their purchases.
One thing that sets them apart from the competition is that they make it easy for owners to get their cars serviced by sending them to convenient dealerships. This helps avoid customer-service issues when they’re servicing vehicles at dealerships.
It has been common for new car companies only to offer limited support after the sale. But Tesla marketing strategy has made a different choice, and they believe they need to be there for their customers even after selling the car.
They provide 24/7 customer service with a team of trained technicians ready to assist. Tesla also offers a wide range of resources to help its owners.
For example, they provide free access to their website for their owners, where they have forums dedicated to answering questions, providing information about the vehicle, and even offering special deals.
4. Tesla establishes a stable program for referrals
Most importantly, Tesla avoids incentives for salespeople to push electric vehicles or install their home charging stations. Instead, the company relies on a referral program to help sell its cars. Customers can refer their friends and family to the company.
They are rewarded with $2,000 when their referral signs up for an order for a Tesla Model S or Model X. It may seem odd that a company not selling directly to customers would rely so heavily on referrals. Still, it turns out to be a wise move.
5. Tesla yields brand identification across multiple paths
The Tesla marketing strategy is built on creating a “halo effect” around the Tesla brand. They want their brand to be associated with other high-end products and services. For example, Tesla cars are often seen as status symbols, which has helped to increase sales of their vehicles.
It’s not just about selling cars, though. Tesla wants its brand to be associated with clean energy and sustainable living. This is why they offer solar panels and home batteries in addition to their cars. And it’s why they are constantly innovating to find new ways to reduce their environmental impact.
6. Tesla fosters desirability by selling a “lifestyle”
The company sells more than just cars; they sell a lifestyle. This is evident in their marketing materials, which often feature people living an active, outdoor lifestyle. This approach appeals to many people, not just those interested in electric vehicles.
Tesla is about living life on your terms and wants others to feel the same way. This is evident in their tagline, “Live Free.” And it’s also apparent in their ads, which often feature people living an active, outdoor lifestyle.
Tesla Marketing strategy: selling a lifestyle
7. Tesla targets early adopters and tech-savvy consumers
Tesla’s target audience is composed of early adopters and tech-savvy consumers. This is evident in their marketing strategy, which focuses on building a brand rather than selling individual products. Tesla wants to be seen as a cutting-edge company at the forefront of the electric vehicle revolution.
This is one of the biggest reasons why the Tesla Marketing strategy works so well in today’s high-tech society.
8. Tesla believes competitors are a source of inspiration
In an interview with Automotive News, CEO Elon Musk said that Tesla looks to its competitors for inspiration. He believes it’s essential to stay ahead of the curve and be the first to market with new products and features.
Tesla constantly innovates and introduces new products, believing its competitors will eventually follow suit. Competition is never bad, and Tesla views it as a source of inspiration.
9. Tesla makes use of the social media presence of their CEO
Tesla’s CEO, Elon Musk, is one of the most famous figures on social media. He has over 99.5 million followers on Twitter. And he frequently uses these platforms to promote Tesla’s products and services.
This approach has been very effective in building the Tesla brand. Musk’s social media presence gives the company a human face and makes them more relatable to its customers. The company has also used Musk’s celebrity status to generate free media coverage.
Tesla Marketing strategy: leveraging the fame of their CEO Elon Musk on Twitter
10. Tesla maintains transparency with its customers
The brand is very open and transparent with its customers, which is the best Tesla marketing strategy. The company often releases new information about its products and services through its website and blog.
Tesla also uses social media to connect with its customers and answer their questions. This transparency builds trust and credibility with potential customers.
Final thoughts on the Tesla Marketing strategy
In conclusion, Tesla’s business model is one of the most successful and innovative models we have ever seen. Suppose you have a good understanding of Tesla marketing strategy.
In that case, you can predict whether the company will be profitable or not and if there will be a stock split without even seeing a single dollar of profit. This separates a Wall Street analyst from an expert who can give you valuable investment advice.
Now that you read about the Tesla Marketing strategy, would you like to see about the Marketing strategies of other brands? Check out these articles:
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