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Brand Dominance

Discussion in 'Off Topic' started by inottawa, Apr 28, 2015.

  1. inottawa

    inottawa Member

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    #1 inottawa, Apr 28, 2015
    Last edited by a moderator: Mar 13, 2016
    An interesting speaker [FONT=Georgia, serif]Scott Galloway discusses the power play wrt brand dominance.[/FONT]

    [FONT=Georgia, serif]Tesla is mentioned near the end as a brand to appeal to consumers desire to propagate. He speaks how this desire can lead to a brand being able to raise their margins. I don't fully agree with his reasoning on why I bought my car, but a REALLY interesting discussion none the less. (mention is at 13m15s)[/FONT]




    Best quote: "Google glass is not a wearable, it's a prophylactic ensuring you will not conceive a child, because no one will get near you"
     
  2. JohnQ

    JohnQ Active Member

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    While we may not have caught him at his best with a rushed presentation, I find him to be a pompous ass with glib proclamations. Does the data support his contentions? No idea as there was no substance. I know I bought my Tesla for much more selfish reasons than a better chance to get laid ... it's the most interesting car on the market and I could afford to buy it. Of course, Galloway would then say I bought it so everyone would see how smart I am.
     
  3. ChadS

    ChadS Petroleum is for sissies

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    #3 ChadS, Apr 28, 2015
    Last edited: Apr 28, 2015
    Thanks for posting; there were several interesting and/or amusing bits that got me thinking. But yeah, at a few points I was with JohnQ.

    Specifically addressing why somebody would buy a Tesla...if he's correct about me, how does that explain my pre-Tesla cars:

    1. A 6-year-old (with an even older body style) RAV4-EV
    2. A used, stripped, manual transmission Honda Insight (the old funny-looking 2-seater)
    3. A stripped Golf diesel
    4. For several years, no car - I walked to work. (My wife had a car I could use for non-work trips)
    5. The cars get even sadder as you go farther back (but not for lack of money)

    And if he's right about Tesla's brand-building, why are they investing so much to move down-market? I am sure some people buy a Tesla for the reason he gives; but he's painting with an awfully broad brush. Maybe, as JohnQ suggested, he was just really short on time.

    It reminds me of people that say "people that buy cars in bright colors are looking for attention". It feels good for anybody to have a simple explanation (and for some, that's especially true when the explanation makes you feel superior). They even cite a survey that shows a correlation between colors and personality types. The explanation has "legs"; many have heard it and believe it. But it's a small correlation, with a difference of only a couple of percent between colors. Sure that means a few people buy them for attention, but you have to look at other reasons to explain most buyers. (In my case I suppose you could argue it's true: I want people to see me in my 44" tall car rather than run in to me! But if they're not about to crash in to me, frankly I would prefer less attention).
     
  4. RobStark

    RobStark Active Member

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    If you are a Sugar Daddy and wanted to advertise your wealth to lure a Sugar Baby would you not buy an Aston Martin where the cheapest car is $120k instead of a P85D that looks exactly like a $70k S 60?

    Or something like a Viper?

    Surveys show most registered owners of Teslas are married men. I guess many could be in search of the prettiest mistress but that does not seem to validate my personal observations.

    The audience laughed at these contentions. Because they see a kernel of truth exaggerated way beyond reality. A definition of a joke.
     
  5. brianman

    brianman Burrito Founder

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    At a track event, one of the drivers on my session made a comment: "I hate street colored cars." He went on to explain that street colored cars are hard to see, which makes it more difficult to properly observe their location, react to their presence, etc. I've also heard some say they like white cars (or bright cars) because they are easier to see -- both as a driver near them, and as a driver of them. I guess, in a sense, "attention" is involved in these mindsets but it's a bit of a stretch IMO.
     
  6. jvonbokel

    jvonbokel John VonBokel

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    I've had more than a few guys ask me if the car is a chick magnet, but in my experience it's more of a dude magnet.

    I think Rob is probably right that a more recognizable brand would attract attention from a broader range of people (both male and female), but for now Tesla still attracts a pretty specific set (mainly car and/or software geeks*).

    *I mean that in a non-derogatory way. I consider myself a software geek.
     
  7. Krugerrand

    Krugerrand Active Member

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    If the shoe doesn't fit, then don't try and jam it on your foot. He's not talking about 'you'. What he says is true of *SOME*. How big is that 'some' group is clearly up for debate. Branding is powerful, we know this. Some people are more sophisticated than others and not as easily fooled, taken in by flashing lights and big words, expensive ad campaigns etc..., we know this. Everyone has a reason for buying this or that and this guy just happens to have an opinion about why you bought your Tesla. Feel free to contact him directly to set him straight if it's important to you, that might have him changing his opinions on Tesla branding and future presentations - or not. I actually think it's far more interesting that Tesla hit his radar, even if he gets some or all of it wrong. THAT is brand awareness.
     
  8. JohnQ

    JohnQ Active Member

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    It's the simplification of complex data and events into sound bites that irritates me, not his assumptions about why I bought a vehicle. As I mentioned, that may just be a function of him not having sufficient time to expand on his research. His claim that a pure online retail strategy is doomed needs to be backed up with more evidence than that 1) others are doing it and 2) Macy's has shown some good numbers lately. I suppose if I were interested enough I'd look up his publications.
     
  9. ChadS

    ChadS Petroleum is for sissies

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    Same here; that's why I gave my car color example. Like the car color case, he probably has data from surveys and such that show in a statistically significant fashion that more people interested in showing off to the opposite sex buy Teslas than the average car brand. But also like that case, it's probably only a few percent. So his data only explains a few percent of buyers, but he didn't explain it that way. He was also wrong about the direction Tesla is building their brand. As JohnQ said, he was short on time and he might speak differently if he had more time, but he's still giving the wrong impression.

    Not to mention that it doesn't work as Galloway suggests, as jvonbokel pointed out. Once at a community college I had a crowd of about 30 students around my Roadster asking all sorts of questions. Finally the questions died down and it was quiet for a minute, and somebody said "What's it like driving a chick magnet every day?". I said "It doesn't work - look around you!". All 30 of the students were men.
     
  10. Olle

    Olle Member

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    He is dead wrong about Tesla specifically. I honestly bought the car out of sheer joy and excitement being able to drive a marvel of engineering and it seems like the same can be said for most Tesla owners who I met. If you want to as he says "buy it to show that you can afford a 120000 car" Then there are many better choices. Hey, here on the east coast most people don't even know what a Tesla is, much less that it can cost 120k (or more).
     
  11. Krugerrand

    Krugerrand Active Member

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    That's a fair comment and the presentation did come across as rushed. But even in his simplifications he gets some of it right. There are plenty of examples on this forum of people buying a Tesla for exactly the reason he says, though, I'd agree the majority bought for another/other reasons. Again, that Tesla makes his brand awareness presentation at all says something quite intriguing, that a company with no formal or traditional advertising has/is producing such a strong image as to be included with the likes of Apple, Google, etc...
     
  12. artsci

    artsci Sponsor

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    Scott Galloway's comments are just more of what I call brand bull****, of which there is enough to power the entire planet. It's 100 percent crap. Sad thing is many people actually believe this nonsense.
     
  13. SW2Fiddler

    SW2Fiddler Bannd Member

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    And Crap is a powerful, indispensable tool when you want things to grow.

    Tesla uses branding, because a brand communicates your message when you don't even have time for a sound bite! If you don't think TM's lack of Print And TV Marketing is part of its brand, you can miss the coolness that's conveyed in there.
     
  14. Krugerrand

    Krugerrand Active Member

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    Insert *standing 'O'* emoticom.
     
  15. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

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    #15 ItsNotAboutTheMoney, May 2, 2015
    Last edited: May 2, 2015
    Actually, he showed rapid growth of online sales from many large retailers over the last 5 years. I think he's right that the combination will be the most successful. Tesla is a combination seller: you test drive at bricks and mortar, you have online and inventory sales, you have a service location. The joke is that you check out products at Best Buy and buy on Amazon. There's a reason: online offers lowest cost, but bricks-and mortar gives you look and feel, so there has to be an optimal comination in there.

    I've used click and collect at my local WalMart and the big problem is that the store isn't built for it: warehousing at back of the store, desk not staffed, staff not used to it. At Target they had pick-up and returns att customer service, which was better, but still it wasn't particularly efficient. I think that in future they'll be better organized for click and collect.
     

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