Running Head: IMC OF TESLA MODEL S

Tesla Model S
Timothy Jackson
Liberty University Online

IMC OF TESLA MODEL S

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IMC of Tesla Model S

Advertising
Tesla has one of the most revolutionary marketing strategies of any large corporation. They do
not advertise. Tesla Motors has no advertising, no ad agency, no CMO, no dealer network. And that's no
problem (McCarthy, 2013). The reasoning behind this decision points to the amazing man behind the
company, Elon Musk. Musk has been described as the modern day Iron-Man, so much so, that director
Jon Favreau sent Robert Downey, Jr. to spend time with Musk at his SpaceX (another of Musks
endeavors) factory prior to filming the first Iron Man movie to model the character of Tony Stark after
Musk (Urban, 2015). Elon believes, rather strongly, that he sees advertising as manipulative and
dishonest (Urban, 2015). Because of this deeply held belief, both Tesla and SpaceX do not advertise in
the traditional sense. According to Alexis Georgeson, Tesla spokesperson, Tesla has no plans to hire
marketing agencies or to run any ads in the future. She went on to say that the Tesla marketing team has
only seven members, and that paid advertising is certainly not crucial for sales at the moment (McCarthy,
2013). They do have a very strong online presence, but much of the brand awareness is achieved through
free marketing, i.e. press releases, blogs, media coverage, and word of mouth. Instead of spending
millions on marketing, as a traditional company would, they focus on product development, customer
service, and electric vehicle (EV) infrastructure.
Direct Marketing
Again, redefining the marketing spectrum, there is no direct marketing, in the traditional
unsolicited sense, to prospective customers. They do have a huge direct marketing effort, but it is
directed towards the customer within the customer service realm. You can, however, opt-in to direct
marketing from the company. On the company website, they have a blog with news, updates, and random
musings. You can then subscribe for blog posts to come to you (Tesla Motors Team, 2015).
Interactive/Internet Marketing

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Internet marketing is where Tesla shines. All of the marketing that Tesla actually produces is
found online. They have a huge YouTube channel (https://www.youtube.com/user/TeslaMotors), a
Facebook page (https://www.facebook.com/teslamotors), a Twitter account
(https://twitter.com/TeslaMotors), and their blog, found on their home page
(http://www.teslamotors.com/blog). Elon Musk also has his personal Twitter
(https://twitter.com/ElonMusk) that he uses to make many announcements. On the YouTube Channel,
they have commercials, introductory videos (teaching about their vehicles), and upcoming
events/announcements (Tesla Motors, 2015). Teslas Facebook page contains announcements and photos
of public events, videos from the YouTube channel, and current announcements and press releases.
Sales Promotion
Again, skewing away from ads and traditional marketing, Tesla does not offer much in the way of
sales incentives or rebates. Currently, there is a federal tax credit of $7,500 for the purchase of an EV.
Also, some states (CA, CO, LA, MA, PA, TN, UT) also offer tax credits. On the Tesla ordering site, you
will see these tax credits on the purchase price along with a $10,000 gas savings estimate (over a 5 year
period) (Tesla Motors, 2015). The only major rebate offered is in the form of their supercharger
charging stations. These supercharging stations are optimized for rapid charging and can provide 170
miles of range in as little as 30 minutes (as compared to 14 miles in standard household 40A high voltage
outlet). Currently there are 459 Supercharger stations with 2565 Superchargers (each station has 2-8
Superchargers) with half as many expected through 2016. The use of thee stations is free for life, a
superlative incentive for purchase of the Model S (Tesla Motors, 2015).
Publicity/Public Relations
Public relations is one of the many places Tesla excels, the Model S is a media magnet!
Countless news stories have been written about the history of Tesla (from the initial model to the various
issues relating to the startup), the unorthodox business model (no dealerships, no advertising), and, of

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course, the enigmatic financer, Elan Musk (who has done hundreds of interviews). All of this has been
done at absolutely no cost, bringing a brand new brand to the forefront of much of the world.
Since Tesla does not use a dealer distribution channel (all sales of the Model S must done through
the Tesla website), they have come up with new ways to get the car to the public for viewing. Sponsoring
dozens of Model S demonstrations all over the world every month, many people are able to experience
the car first hand. The only way to test drive the Model S is with a $5000 deposit (and an extended wait
time, and some areas a personal test drive is simply not available) or through one of their events. These
events are available in most metropolitan areas all across the country (Tesla Motors, 2015). They also
have cars placed as displays in upscale malls and have started to open Tesla Stores within malls staffed
with a customer services agent who answers questions, but cannot place orders (and the demo model is
not available for test drives), the actual orders must still be placed by the customer online (ValdesDapena, 2012).
Personal Selling
As discussed under Public Relations, Tesla has opened numerous stores within shopping malls
across the country. George Blankenship, Tesla head of sales strategy said that they want to engage with
people when theyre not thinking about buying a car (Valdes-Dapena, 2012). The location is not the
only place they have changed over the typical car dealership, wither. The salespeople wont be car
salesmen, think Nordstroms instead. They will only have one car, and it is not available to drive
(although, some locations may have test drive units available). Since all Model Ss are custom built to
order, there is no inventory. And one more thing, there is NO haggling over price. The price is the price is
the price (Valdes-Dapena, 2012). Another model Tesla that has, quite literally, popped-up in some areas is
the Tesla Popup Stores. This is a mobile store made from shipping containers that is touring the country
and Europe. This allows Tesla to take the store to areas where demand does not warrant a full mall store,
or where a mall store is coming and they wish to whet the markets appetite, so to speak (Ayre, 2015)

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Customer service is another area Tesla has set itself apart. Think of [the] as an app on four
wheels. Software updates keep your Model S current with the latest features developed by Tesla. Our
goal is not to just fix things, but to make your car better than it was (Sparks, 2014). This is made
possible through built-in data connectivity (3G) that comes standard with every car. This allows Tesla to
tweak any software issues that have arisen in some models, but not others, preventing massive recall
issues. If it cant be fixed over the air, the company is starting a valet service where a loaner vehicle is
brought to you and then they deliver your vehicle back as soon as repairs are finished, this service is
included with any service plan. For an additional cost, whether with an upgraded plan or ala carte, Tesla
will schedule a Tesla Ranger to perform most maintenance or warranty repairs wherever you may be
(Sparks, 2014).

Bibliography
Ayre, J. (2015, Jun 8). Tesla Popup Stores Popping Up. Retrieved from Clean Technica:
http://cleantechnica.com/2015/06/08/tesla-popup-stores-popping-up/
McCarthy, M. (2013, Jun 2013). Tesla Generates Small Sales, Big Buzz Without Paid Ads. Retrieved from
Advertising Age: http://adage.com/article/news/tesla-generates-small-sales-big-buzz-paidads/241994/
Musk, E. (2015, Jul 6). Elon Musk. Retrieved from Twitter: https://twitter.com/ElonMusk
Sparks, D. (2014, Feb 16). Tesla Motors Inc.: We Will Revolutionize the Customer Experience. Retrieved
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http://my.teslamotors.com/models/design
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http://www.teslamotors.com/supercharger
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https://www.youtube.com/user/TeslaMotors
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https://www.facebook.com/teslamotors
Tesla Motors Team. (2015, Apr 8). Updates. Retrieved from Teslamotors.com:
http://www.teslamotors.com/blog

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TeslaMotors. (2015, Jul 6). TeslaMotors. Retrieved from Twitter: https://twitter.com/TeslaMotors

Urban, T. (2015, May 7). Elon Musk: The Worlds Raddest Man. Retrieved from Wait But Why:
http://waitbutwhy.com/2015/05/elon-musk-the-worlds-raddest-man.html
Valdes-Dapena, P. (2012, Jum 8). Shop at the Mall for Your $100,000 Tesla. Retrieved from CNN Money:
http://money.cnn.com/2012/06/08/autos/tesla-mall-stores/index.htm