Tesla Marketing

[Right_Said_Fred]

Tesla placed this ad (in a business newspaper with nation-wide circulation) because of the unique fiscal situation in The Netherlands. Half of the new cars sold in The Netherlands are company cars, for which the driver pays a yearly tax when driven privately. You have to add a percentage of the MRSP of the car to your income, on which you pay taxes. The percentage you have to add ranges from 25% of the MRSP for a gas guzzler to 14% pf the MRSP for a Prius-like car. For EV's it's 0%!!

However, in 2014 this will become 7%. Still a bargain, but 0% is better ofcourse. The ad states that if you place your order before the end of April they will guarantee delivery of your car in 2013 and you will profit from 0% taxation for five years. You will save about $20,000 in tax over that period. So definitely an appealing proposal. The ad likely generated a lot of interest and hopefully a lot of orders.

I've heard rumors that even if you order before the end of June you will still get the car in 2013, but I guess they don't give you a solid guarantee.

 

[Soflason]

BTW, someone at TM needs to get these two in a Tesla for a test drive, would be pretty cool to have these champions driving a Model S as their car of preference:
Helio Castroneves And Dario Franchitti: Their Love-Hate Relationship With Tesla And Why They Don't Respect Formula 1 Drivers - Forbes

 

[adiggs]

Thank you Chrysler for putting Tesla back into the lead story on money.cnn.com:
http://money.cnn.com/2013/05/23/news/companies/tesla-chrysler-spat/index.html?iid=Lead

 

[DonPedro]

Thank you Chrysler for putting Tesla back into the lead story on money.cnn.com:
http://money.cnn.com/2013/05/23/news/companies/tesla-chrysler-spat/index.html?iid=Lead

Yes. And I think the exchange went in TM's favor. <3

 

[Soflason]

Interesting that MIT Technology Review chose, after the Supercharger announcement, to explain that the Supercharger expansion is really part of Tesla's PR makeover to address fears surrounding EV adoption. MIT Technology Review is interested more in the marketing than the tech -- and, in some ways, I think they're right... they nailed it.

From the article:
"Tesla recognized that, while cost and range-per-charge are important issues, one of the main problems at this early stage with electric vehicles is that people are either unfamiliar with them or view then negatively, as weak, underpowered vehicles—like golf carts. The first problem with electric vehicles, then, is a public relations problem. Once that’s solved, there’s actually a significant market for them even at current costs and ranges. Tesla, to solve the PR problem, has focused on designing electric cars that people would want more than gasoline ones. Its first car, the Roadster, was able to out-accelerate just about any other car in the world. And Consumer Reports called the more recent Model S the best car it had ever tested, saying it combined the best parts of a luxury car and a sports car. Only now that it’s selling a lot of cars—it’s on track to sell 20,000 this year—is it spending much money on allowing long-distance driving."

Of all things tech-driven for MIT to focus on post-announcement, it's actually focusing on Elon's brilliant marketing/PR approach. Contrast that with Better Place (as a prime example of what not to do), and the real inside story here is the marketing, not the tech.

Here it is:
Teslas Superchargers Matter Only Because It Already Sells a Car People Want | MIT Technology Review

 

[DonPedro]

Interesting that MIT Technology Review chose, after the Supercharger announcement, to explain that the Supercharger expansion is really part of Tesla's PR makeover to address fears surrounding EV adoption. MIT Technology Review is interested more in the marketing than the tech -- and, in some ways, I think they're right... they nailed it.

From the article:
"Tesla recognized that, while cost and range-per-charge are important issues, one of the main problems at this early stage with electric vehicles is that people are either unfamiliar with them or view then negatively, as weak, underpowered vehicles—like golf carts. The first problem with electric vehicles, then, is a public relations problem. Once that’s solved, there’s actually a significant market for them even at current costs and ranges. Tesla, to solve the PR problem, has focused on designing electric cars that people would want more than gasoline ones. Its first car, the Roadster, was able to out-accelerate just about any other car in the world. And Consumer Reports called the more recent Model S the best car it had ever tested, saying it combined the best parts of a luxury car and a sports car. Only now that it’s selling a lot of cars—it’s on track to sell 20,000 this year—is it spending much money on allowing long-distance driving."

Of all things tech-driven for MIT to focus on post-announcement, it's actually focusing on Elon's brilliant marketing/PR approach. Contrast that with Better Place (as a prime example of what not to do), and the real inside story here is the marketing, not the tech.

Here it is:
Teslas Superchargers Matter Only Because It Already Sells a Car People Want | MIT Technology Review

MIT doesn't only do technology, they also have one of the world's top ranked business schools. :biggrin:

 

[Soflason]

MIT doesn't only do technology, they also have one of the world's top ranked business schools. :biggrin:

True! :redface:

On another note, I like this recently published piece on Elon's marketing prowess -- shows how he's going against conventional wisdom to establish a brand campaign that is really on the vanguard:
The Best Marketer in Silicon Valley Is Doing Everything You're Not Supposed to Do

 

[brianman]

Thanks, RSF!
Here's another capture of the newspaper advertisment. (My original scan is a 1200dpi PDF but I figure that's a bit big for the forum.)
View attachment 22073

A quick update:

Unfortunately, I forgot her name but a Tesla employee with Marketing in her job description was at the evening gathering at the factory in Fremont on Saturday night. I showed her a picture of my framed reprint that I had on my cell phone. She recognized the template and confirmed that it was an official advertisement from Tesla Motors (i.e. not a 3rd party). Additionally, I prodded to confirm that it wasn't the only one. Lastly, in response to my follow-up about "no advertising" she clarified either "in North America" or "in the U.S." (I forget which).

 

[Acmykguy]

:smile:

Why bother when CR just listed Tesla as the 10th most recognized vehicle brand, with no advertising campaign at all?

Tsla has the best marketing now for free,...........the current owners of the car and the countless times we are stopped at red lights and talking to the person next to us, the man or woman at grocery store for 30 minutes, at the ice cream stand while it melts in my hand. I can honestly say, over a weeks time, (and being a sales guy for another industry) I talk to no less than 10 people a week about tsla. They are all amazed and impressed and want to learn more if not get one. Maybe tsla can issue us all I'd numbers that we can give to interested parties so when they buy one, we earn points. As you accumulate points, so many would be a x% tiered discount on a new one for us down the road. TSLA marketing are you there? $ doesn't sleep! :smile::biggrin:

 

[imherkimer]

The Model S is it's own advertising. People see the car and are magnetically drawn to it!
All I as owner have to do is answer questions. Usually the same questions over and over.
Last night: where could you buy a Tesla around here?
Order online, direct from the factory, delivered to your home.
"Whoa. That's cool."
My bet: they went to TM website to check it out.

 

[cinergi]

A quick update:

Unfortunately, I forgot her name but a Tesla employee with Marketing in her job description was at the evening gathering at the factory in Fremont on Saturday night. I showed her a picture of my framed reprint that I had on my cell phone. She recognized the template and confirmed that it was an official advertisement from Tesla Motors (i.e. not a 3rd party). Additionally, I prodded to confirm that it wasn't the only one. Lastly, in response to my follow-up about "no advertising" she clarified either "in North America" or "in the U.S." (I forget which).

Both Kristin and Colette were there (both in marketing) -- one of them?

 

[brianman]

Still a blur. Pretty sure it wasn't Colette. Might have been Kristin.

 

[Curt Renz]

Tesla Motors does seem to have found a modest method of doing some advertising. Naturally it involves modern internet technology and is cost efficient.

Below is what Tesla Motors sent me by email on July 31. Apparently similar ads were emailed to folks in other localities. I forwarded mine to many people including a few Illinois legislators like the guy I ran against last year. We wouldn't want them to create problems for Tesla in Illinois. One of those legislators is from the opposing party, but we became friends after he said he was a fan of my TV show. Here's how we corresponded after he received the Tesla invitation:

Legislator: "Are you inviting me to drive, to ride in the back, or to ride in the trunk?"

Curt: "We’ll squeeze you in the frunk."

Legislator: "That's what I thought!! Well, enjoy the ride. Let me know if you actually buy one. I saw one parked by Hancock Tower about a month ago. The valet said it was a fun car to drive."

Model S is the world's first premium electric sedan and sets the standard for 21st century performance. Designed from the ground up as an electric vehicle, Model S provides unprecedented range and a thrilling drive experience. Test drive appointments are available to prospective customers on a first-come, first-served basis. Your driving session will be 20 minutes long over a predetermined route designed to highlight the capabilities of Model S. A Tesla Product Specialist will accompany all drives to answer questions and ensure you optimize your time in Model S. You may bring up to three guests to ride in the back seat during your drive. Tesla Oakbrook 58 Oakbrook Center Oak Brook, IL 60523 Monday – Saturday 10am – 9pm Tesla Old Orchard 4999 Old Orchard Center Skokie, IL 60077 Monday – Saturday 10am – 9pm Tesla Chicago 1053 W. Grand Avenue Chicago, IL 60642 Monday – Saturday 10am – 6pm Tesla Motors | 3500 Deer Creek Road | Palo Alto, CA 94304

 

[Evpro2]

Tesla seems to be in the enviable position of needing no more advertising than their customers, the auto press and the dual purpose Supercharger network. The upcoming publicity from the "cross country for free" reports will be the icing on the cake and will contribute to the retirement of "range anxiety" worries (for Teslas, at least).

 

[SebastianR]

I know for may reasons Tesla doesn't need advertising right now. But I was wondering if Tesla should shift the communication around their products a little. Rather then talking about range in "miles" maybe a move towards using well established distances is more useful?

I'm thinking something analogous to Apple that moved away from "GB" for their iPod but rather said "this one is good for 1000 Songs". The reason being is that most people have a frame of mind that relates to "miles between gas station stops" and not to "miles driven in one day".

If the idea "it gets you everywhere you ever want to go in one day" into people's heads this would help get some sanity into the numbers. In the end, I'm not interested to know exactly how long my laptop lasts, as long as it lasts me one work day and I think similar thinking should apply to electric cars.

 

[JRP3]

Except that everyone knows how many GB their iPod is, and that's how they are sold. People understand mileage, I don't think marketing spin will change that, nor should it.

 

[Mario Kadastik]

Except that everyone knows how many GB their iPod is, and that's how they are sold. People understand mileage, I don't think marketing spin will change that, nor should it.

No they don't. While buying the new retina iPad mini I had a chat and the guys said they just had one person come in who's iPhone had broken. They asked what kind she wanted and what size and she claimed that she must have minimum same amount, 32GB. They checked and she was using an 8GB model....

 

[JRP3]

I did say "iPod" :wink: But yeah, I should not have said "everyone".

 

[Krugerrand]

No they don't. While buying the new retina iPad mini I had a chat and the guys said they just had one person come in who's iPhone had broken. They asked what kind she wanted and what size and she claimed that she must have minimum same amount, 32GB. They checked and she was using an 8GB model....

But one person does not a trend make. People choose to be informed about specific things in their life, while ignoring others. It's also entirely possibly she just simply forgot.

@ SebastianR; It doesn't matter what the PR/advertising angle is in this regard for Tesla, there's always going to be someone who doesn't get it, doesn't want to get it, or simply isn't interested in knowing or having their mind changed. People learn when they are ready, willing, and able. Not a second before that, no matter how you frame it.

I do agree with JRP, people generally (because we can only talk in the general - there will always be exceptions) do understand mileage because that's what they've heard for the last several decades. There are enough differences between an ICE and a BEV already that people need to learn about, that framing something universally known, like mileage, in another way may detract from the really important differences.

You can do your own experiment in this regard when talking to people unfamiliar with a BEV. At what point in their line of questioning do they ask: How far/how many miles can I go? I'd guess that most people ask that within the first three questions.

 

[jerry33]

You can do your own experiment in this regard when talking to people unfamiliar with a BEV. At what point in their line of questioning do they ask: How far/how many miles can I go? I'd guess that most people ask that within the first three questions.

And mostly it's the first question asked followed by "How long does it take to charge?".