The correct answer is C because for the Model 3, for instance, Tesla has spent about $6 on advertising for every model it’s sold. How is that possible? The answer is that Tesla leads the way in changing the business model from build / market / sell to market / sell / build and market some more. Tesla does so by having a values-based purpose out ahead of the traditional value proposition, i.e., Tesla aims to rid the world of fossil fuels. That positioning earns Tesla free media and buyer loyalty. And Tesla goes further by inviting consumers to provide input on where its showrooms are located, how they want to configure their own cars based on guidance from an owner advisor, and a referral program with a $1,000 cash incentive to both the owner and the friend who purchases based on a referral. The result is that Tesla has 22% of the electric car market, Mercedes-Benz 5%.
Released today: episode #51 of “Dan Hill’s EQ Spotlight,” featuring Mathew Sweezey, the author of The Context Marketing Revolution: How to Motivate Buyers in the Age of Infinite Media. Check out the audio link below to get oriented or click here to get to the new episode.
Mathew Sweezey is the Director of Market Strategy for Salesforce. Mathew is the host of the award-winning podcast The Electronic Propaganda Society and an accomplished author, having written for The Economist, Forbes, the Harvard Business Review, and AdAge.