Why Tesla Doesn't Do Advertising (GENIUS Marketing Strategy)
Summary
TLDRTesla's astonishing growth without traditional advertising is attributed to innovative marketing strategies, including leveraging CEO Elon Musk's personal brand, engaging content, and social media. Musk's media presence and the company's focus on product excellence and customer satisfaction have propelled Tesla to become the fastest growing brand globally, outpacing industries with a clear stance on values and future aspirations.
Takeaways
- đ Tesla has become the fastest-growing brand on Instagram without traditional advertising, according to Brand Finance.
- đ Tesla's success is attributed to its strong presence in growing industries such as electric vehicles, sustainable energy, and space travel.
- đ§Č Elon Musk's personal brand and media savvy play a significant role in Tesla's marketing, acting as a 'walking, talking marketing machine'.
- đ Despite claims of no advertising, Tesla utilizes various marketing strategies including content marketing, social media, and public relations.
- đĄ The script emphasizes that marketing encompasses more than just advertising, and Tesla's growth is a testament to effective marketing.
- đ A notable marketing move by Tesla was launching a Tesla Roadster into space, which cost nearly $100 million and garnered significant attention.
- đ Companies like Google, Netflix, Amazon, Apple, Facebook, and Uber have also built empires with minimal or no paid advertising, focusing on broader marketing strategies.
- đ€ The script questions the effectiveness of traditional advertising, citing the famous John Wanamaker quote about wasted ad spend.
- đ Tesla focuses on creating a great product and obsessively improving it, which is a fundamental principle of successful marketing.
- đ Elon Musk leverages his personal brand and controversial statements on platforms like Twitter and podcasts for marketing Tesla.
- đ Tesla uses influencers and early adopters in tech and automotive industries to spread the word about their products, enhancing their marketing reach.
- đ Tesla and Elon Musk are clear about their values and goals, taking on entire industries rather than specific companies, which creates a strong brand perception.
Q & A
Why did Tesla top Instagram as the fastest-growing brand according to Brand Finance?
-Tesla topped Instagram as the fastest-growing brand due to its strong presence in rapidly growing industries such as electric vehicles, sustainable energy, and space travel, combined with the media savvy and polarizing leadership of Elon Musk, who acts as a powerful marketing force.
How has Tesla managed to grow 64.9 percent in the last year without traditional advertising?
-Tesla has grown significantly by focusing on marketing strategies other than traditional advertising, such as content marketing, social media marketing, and public relations, which all contribute to brand visibility and engagement without direct ad spend.
What is the difference between advertising and marketing as per the script?
-Advertising is a subset of marketing. While advertising involves paid promotions, marketing is a broader term that includes various strategies and tools like content creation, social media engagement, and public relations to promote a brand.
What marketing tools does Tesla use according to the script?
-Tesla utilizes marketing tools such as content marketing, social media marketing, public relations, and leveraging the personal brand of Elon Musk to create buzz and engage with their audience.
What was the marketing strategy behind Tesla launching a rocket with a Tesla Roadster into space?
-The rocket launch with a Tesla Roadster was a marketing strategy that showcased Tesla's innovation and brand identity. It involved elements of content marketing, social media marketing, and public relations, without being a traditional advertisement.
Why do some companies like Google, Netflix, Amazon, Apple, Facebook, and Uber spend very little or nothing on advertising?
-These companies have built strong marketing strategies that focus on creating a great product and leveraging various non-advertising marketing tools to reach a wide audience and build brand loyalty.
What is the traditional approach to launching a new brand or business?
-The traditional approach involves creating a product or service and then spending a significant amount on advertising to reach as many potential customers as possible.
What is the main problem with the traditional advertising approach according to the script?
-The main problem is that it often lacks strategic thinking and creativity, focusing on the wrong variables like likes, comments, or brand recall instead of effectively driving sales and business growth.
What is the famous quote by John Wanamaker about advertising, and what does it imply?
-John Wanamaker's quote, 'Half the money I spend on advertising is wasted; the trouble is, I don't know which half,' implies that a significant portion of advertising spend may not be effective, and it's challenging to measure the true impact of advertising.
What is the core of Tesla's marketing strategy as described in the script?
-Tesla's marketing strategy focuses on creating a great product, leveraging the personal brand of Elon Musk, using influencers and early adopters, and having a clear set of values that resonate with their audience.
How does Tesla's approach to marketing align with the first principles of marketing mentioned in the script?
-Tesla's approach aligns with the first principles of marketing by first ensuring they have a great product and then effectively communicating the benefits of that product to their audience through various non-traditional marketing channels.
Outlines
đ Tesla's Unconventional Marketing Strategy
Tesla has become the fastest-growing brand on Instagram without traditional advertising, as reported by Brand Finance. The company excels in industries like electric vehicles, sustainable energy, and space travel, with Elon Musk's media presence acting as a powerful marketing tool. The script clarifies that advertising is a subset of marketing, and Tesla focuses on various marketing strategies like content marketing, social media, and public relations. The Tesla Roadster's launch into space is highlighted as a costly yet effective marketing move. The script also points out that other big brands like Google, Netflix, and Amazon have built empires through marketing rather than paid advertising. It questions the effectiveness of traditional advertising and emphasizes the importance of strategic thinking and creativity in business growth.
đ Elon Musk's Personal Brand and Tesla's Marketing Tactics
Elon Musk's personal brand is deeply intertwined with Tesla, leveraging his years of building a polarizing and outspoken image. His appearances on platforms like the Joe Rogan podcast and his active Twitter presence are forms of marketing that draw attention to both himself and Tesla. The script discusses Tesla's use of influencers and early adopters in tech and automotive fields to enhance credibility and authority. It also touches on Tesla's and Musk's clear values and unapologetic approach to their goals, drawing a line in the sand for consumers to either support or oppose them. The script concludes by emphasizing the importance of marketing in defining and delivering solutions to consumers' problems and how Tesla's marketing strategy contributes to its rapid growth.
Mindmap
Keywords
đĄBrand Finance
đĄElectric Vehicles
đĄSustainable Energy
đĄSpace Travel
đĄContent Marketing
đĄSocial Media Marketing
đĄPublic Relations
đĄInfluencers
đĄBrand Evangelists
đĄValues
đĄMarketing Strategy
Highlights
Tesla has become the fastest growing brand on Instagram, according to Brand Finance.
Tesla's growth is attributed to its presence in popular industries such as electric vehicles, sustainable energy, and space travel.
Elon Musk, a polarizing leader, acts as a marketing machine for Tesla.
Despite claims of no advertising, Tesla has grown 64.9% in the last year alone.
Advertising is distinguished from marketing, with the former being a small part of the latter.
Tesla utilizes various marketing tools like content marketing, social media, and public relations.
The Tesla Roadster's space launch was a marketing strategy costing nearly 100 million dollars.
Tesla's marketing includes innovative attention-grabbing methods without traditional advertising.
Other successful companies like Google, Netflix, and Amazon also focus on marketing over paid advertising.
Traditional advertising is often ineffective and wasteful, missing strategic thinking and creativity.
John Wanamaker's quote highlights the inefficiency of not knowing which advertising works.
Marketing's primary goal is to make sales, not just to increase brand recall.
Tesla's marketing strategy focuses on creating a great product and customer satisfaction.
Elon Musk's personal brand and polarizing personality draw attention to Tesla.
Influencers and early adopters in tech and automotive fields are used by Tesla for credibility.
Tesla and Elon Musk are clear about their values and goals, attracting support or opposition.
Tesla's marketing challenges entire industries, not just specific companies.
Marketing is central to Tesla's operations, with a focus on delivering solutions and benefits.
Transcripts
tesla has recently topped instagram as
the fastest growing brand in the world
according to london-based company brand
finance this shouldn't be too surprising
though
after all they've positioned themselves
well in some of the fastest growing and
most popular industries like electric
vehicles and
sustainable energy and even space travel
and they're being led by an outspoken
media savvy and polarizing leader the
one and only
elon musk who is basically a walking
talking marketing machine
so while their business growth may not
be that surprising what is shocking is
elon musk and other tesla insiders claim
that tesla does not do advertising and
yet they've still managed to grow
64.9 percent just in the last year alone
so how did elon musk and tesla become
the fastest growing brand in the world
without spending money on advertising
well the first thing you need to
understand when
unpacking elon musk and tesla's claim
that tesla does not do advertising
is really understanding that advertising
does not equal marketing
but rather advertising is just one small
part of marketing and in tesla's case a
very
very small non-existent part but that
doesn't mean that tesla doesn't do
marketing because they do and they do a
lot of it you see under the marketing
umbrella you also have a ton of other
things like content marketing
and social media marketing and public
relations
many more all of these are marketing
tools that tesla uses
and all of them cost some kind of time
or money
or energy for example when tesla
launched their rocket into space and
they sent along a tesla roadster for the
ride well
that was marketing marketing that just
so happened to cost just under 100
million dollars
now this little trip to space wasn't
advertised wasn't advertising at all
but it did include elements of content
marketing and social media marketing
and public relations but when it comes
to finding new and creative and
innovative ways to get attention
and to do marketing that isn't
advertising well tesla isn't alone
in fact there's a number of other
incredibly popular and well-known
businesses that spend
very little or nothing at all on
advertising companies like
google netflix amazon apple
facebook and uber all of these have
built massive empires on the back
of marketing but not necessarily off of
paid advertising we'll take a look at
what was at the core of their marketing
strategies in just a second but first
let's tackle and answer the question
what's wrong with advertising anyway
when it comes to launching a new brand
a new business or a new company the
traditional way is to create something
spend a ton of money on advertising and
try to reach as many people as possible
when this is done right and when it's
paired with an actual good product or
good service or good business
like we're going to talk about in just a
second well this traditional approach
can be quite effective the problem is
rarely is this approach done right
and more often than not advertising
dollars and simply throwing money at the
problem
is spent instead of spending time on
strategic thinking
and creativity and problem solving and
really getting to the core
and the underlying principles of what's
truly going to result in business growth
this is where the famous john wanamaker
quote comes in which says
half the money i spend on advertising is
wasted the trouble is
i don't know which half and in today's
day and age that's simply unacceptable
now while there's a ton of places that
advertising can go horribly wrong
very quickly a large portion of this
waste simply comes down to
optimizing for the wrong variables these
are things like spending money to try to
get
likes or comments or shares or simply
trying to reach as many people as
possible
or try to improve metrics like brand
recall which is really just how many
people remember you
these are fine but at the end of the day
it's not how many people that remember
you that matters
it's how many people buy from you
marketing's job always has
and always should be first and foremost
to make sales
period if your marketing isn't making
sales not bringing in new revenue
not making you money it's not working
and tesla's marketing strategy
is definitely working so if elon and the
whole tesla team
aren't focused on advertising what are
they doing instead first of all
tesla has a great product and they're
obsessive about
making their great product even better
and are obsessively focused on their
customer
on their end consumer tesla customers
love their brand and they love the
company and they love the product
they talk about it they write about it
and they tell everyone they know about
just how great it is
but more on that in just a second plus
like another great brand who also spends
little or no money on advertising
apple well innovation is at the core of
what they do
always trying to make it better and
faster more exciting you see some of the
first
principles of marketing are number one
to make a really great product
and then number two to tell everyone
about that product the sad reality is
is that most businesses most
entrepreneurs and most marketers
well they often shortcut number one and
go straight to number two
trying to get as much attention as
possible but this never works as well
unless you focus on really creating that
great product first next up we have elon
musk as an incredibly integral part to
tesla you see tesla almost has a
baked-in
marketing aspect to it with elon and his
personality elon is also able to
leverage his personal brand that he
spent years building up
before getting into tesla because elon
musk is so polarizing
and so out there and so outspoken well
it makes it really easy for him to get a
ton of attention and
elon musk is synonymous with tesla just
like steve jobs was synonymous with
apple and just like bill gates was
synonymous with microsoft essentially
when one of these large personalities
does
something or says something or anything
like that well there's kind of a
two-part effect where the personal brand
gets attention
but the business gets attention as well
elon musk going on the joe rogan podcast
that's marketing elon musk being very
polarizing and outspoken and not being
afraid to share his opinions on twitter
that's marketing elon knows this and
he's good at it another part of tesla's
marketing strategy is also to use
influencers and early adopters in the
tech and automotive space
these influencers in the tech field or
in the automotive field or in electric
vehicles or anything like that
well they have a higher level of
credibility and authority
in their field and among their audience
other than say just a generic celebrity
so tesla
works with these brand influencers who
then become brand evangelists who then
go out and tell
everyone and anyone about just how great
tesla really is
next we have values tesla and elon musk
are unapologetic about their goals and
their dreams
and their desires for the future for
their brand and for the world they draw
a line in the sand and you're either
with us
or you're with them apple did this years
ago and they did it incredibly well with
the mac versus pc marketing campaign
coca-cola
and pepsi have been doing this for years
do you remember the taste tests and the
challenges fun
fact in a blind taste test people
actually preferred the taste of pepsi
over the taste of coca-cola but at the
end of the day
it's not about taste it's about
perception and that all comes down to
marketing
which is why coca-cola still wins anyway
tesla is doing
that now but rather than taking on
specific companies like
ford or chevrolet or gm they're taking
on entire industries like
the entire automotive industry the
entire energy industry
entire space industry this makes it easy
for people to talk about
and because they back up all this talk
with a good product well
it only helps the company grow faster
marketing is at the core of what tesla
does
they know it's important and they do it
well this is why the next thing you're
going to want to do is check out the
video i have linked up right here on
introduction
to marketing so make sure to check that
out now and i'll see you in the episode
marketing helps people solve their
problems by
clearly defining and delivering
solutions and really explaining the
benefits of the solution so they can get
better
you
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