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Introduction
Tesla Inc is interrupting the automobile industry with its high-class electric cars,
pioneering marketing strategy and sales model ever since it launched in 2003
...
Tesla’s mission
statement is “to accelerate the world’s transition to sustainable energy
...
Elon Musk’s main plan was first to manufacture a sports car (roadster), secondly, use
that capital to manufacture an inexpensive car (Model S & X)
...
(Musk, 2006)
...
Marketing Communications
The main goal of marketing communication is to transmit a message between the sender
(company) and receiver (target audience) (Ruler, 2018)
...
For instance,
by measuring the product’s profits, the firm can assess the success rate of marketing
communications, such as customers received the messages transmitted from the
customer (Aghazadeh, 2015)
...
(Kotler et al
...
Hence, understanding financial indicators are necessary, such as
KPI and the campaign results concerning company operation
...
The media, internet, blogs, the referral program, and interviews are
among Tesla’s marketing tools
...
Tesla does not invest any finance in advertisements
...
Do something unique; the media will be lining up at your doorstep,” said Tesla CEO
Elon Musk
...
In the Model 3 case, Tesla used the live event to launch information about social media
and referral programs, which generates word-of-mouth and public relations
...
Direct
marketing is the personal selling at the
showrooms, and indirect marketing is the
media coverage such as social media, public
relations, and word-of-mouth of customer
experience
...
(Gurău, 2008)
...
Within three days after the launch, more than 250,000 customers registered
for model 3 (Reed,2020)
...
Hence Tesla did not need paid ads to make profits (Bhasin,
2019)
...
Hence, during the live event of the launch of model 3, the goal of marketing
communication was successful as the registered numbers determined the message
transmitted clearly between CEO Elon Musk (sender) and the audience (receivers)
...
According to Global Equities Research (Hanley 2016),
Tesla spends $6 per car on marketing
...
The answer to this is using
public relations tactics such as
owned media (Social Media),
earned media, and strong brand
identity (Law, 2020)
...
For instance, when Tesla wants to release new information, it is done
through Elon Musk Twitter account, CEO of Tesla
...
shows a
tweet of information of model 3
...
3
Furthermore, the attention generated on social media sites leads to a story being picked
up by news outlets and influencers, transforming owned media into earned media
(Zhang et al
...
The
stories picked up by news
outlets,
and
influencers
indicate that a third-party
endorsement means many
viewers
...
In
other words, Tesla has its fans promote its product by them retweeting, and the focus is
to turn the audience into Tesla fans
...
below shows Tesla has more followers
on Twitter than its competitors (Manecuta, 2018)
...
Moreover, Tesla using Twitter as a platform to promote and inform news to its audience
allows followers to engage with the brand and the CEO (Popkin, 2018)
...
This results
in building a relationship with one another
...
Figure
...
This is done by a
customer fan posting a picture of his model
3, and his followers will question the car
and performance, which may lead to an
action to visit the website of Tesla or the
showrooms located in the shopping malls
...
Tesla invites journalists to test drive the
Model 3 and writes about it
...
However, in return, the car gets favourable
reviews from media sources such as Fox
News (see Figure I below) and MSN
...
The cost to Tesla was minor
because it only had to provide the vehicle
...
Instead, it got a Tesla owner to lend that car
to the write
...
5
Marketing through customer experience
Moreover, the Tesla referral program has also encouraged advocates to spread positive
about the brand through word-of-mouth
...
(2011), customer
referral programs are a sort of enthused WOM in which existing customers are rewarded
for bringing in new customers
...
Figure 6 below illustrates the depth of the
Tesla referral program
...
Tesla implemented this program to boost
orders
...
According to Lambert (2019), this referral does not
increase the cost much, but free supercharging does have a fee but minimal because it
is a 12-month limit to use the supercharger networks, and most owners do not use them
...
6
Having to reflect on Tesla’s marketing activities to promote and communicate its
products/services with its customers, Tesla’s boosts on a $0 marketing budget resulted
in Tesla producing over 650,000 cars, equivalent to about $2
...
This statement of Tesla has a ‘$0 marketing plan’ compared to its rival, as
mentioned above
...
To further elaborate, Tesla focuses on word-ofmouth via media coverage (Twitter)and live event and referrals
...
Therefore, media coverage
such as Twitter and word-of-mouth play an essential role in its success
...
Firstly, it has a successful brand association - anyone thinking of buying an
electric car, Tesla will pop into your mind
...
We could say that Tesla has pioneered this new marketing communication concept as
Tesla has succeeded in creating a loyal and passionate community for its products
...
Therefore,
media coverage is essential for Tesla’s brand and products because of its costeffectiveness, ability to instantly reach the target audience, keep the relationship, and
generate leads/sales (Ciprian, 2015)
...
Therefore, media coverage (social media) is becoming a trend in studying reviews,
friends, and influencers’ opinions
...
However, too much nurturing costed Tesla to offer 80 new
Roadsters for free
...
Despite producing a more affordable car (model 3), Tesla requires
its customers to act as advocates, so the referral remains valuable to generate media
exposure and word-of-mouth
...
Otherwise, the referrer would not refer
...
Using WOM/eWOM is an effective marketing communication as a favourable
comment increases the purchase chances (Aramendia-Muneta, 2017)
...
Using WOM also
results in brand awareness
...
Nevertheless, through social media spreading positive WOM results a respectable effect
‘on credibility and influences purchase intention’ (Chih et al
...
Nevertheless, Tesla has created a brand that generates content, thanks to social media,
its blog, and word-of-mouth
...
The CEO himself
has admitted that “Twitter is a war zone,” adding humour to the brand’s strategy through
this social network
...
An essential value of Tesla is how it has created a community through solid brand
identity
...
It was getting consumers themselves to become brand ambassadors
(GoodRebels, 2016)
...
Tesla has
not invented a vehicle; it has designed a product that makes its owners feel they are
making progress
...
They have managed to create content that makes an impact (Ross, 2021)
...
The owners of its products have realized that it is a brand
primarily focused on the customer experience, which is Tesla’s differentiating value
(Light, 2020)
...
1
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2
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3
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4
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5
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9
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