http://learnbonds.com/127008/heres-why-ad-agencies-hate-tesla-motors-inc-tsla/
Here’s Why Advertising Agencies Hate Tesla Motors Inc
February 18, 2016  Victor Alagbe

[image  
http://2zeobl3ojpj43evvq11p5yodq7e.wpengine.netdna-cdn.com/wp-content/uploads/2016-02-11-05.50.33-am.jpg
A frame from Friese Brothers Tesla Commercial


video
https://youtu.be/sZ0ypbd8EbM
Tesla "Not A Dream"
freise brothers  Jan 26, 2016
A surreal land of oil & gas is visited by an unlikely yet welcomed stranger.
]

Tesla Motors was in the news last week after the Freise Brothers made an
awesome video ad for the Model S. They depicted the Model S (a
representative of EVs) as the last hope of humanity in a wasteland of oil
rigs and gas-guzzling cars. A Tesla spokesperson commented on the ad as one
of many ads created by Tesla fans and Elon Musk tweeted about it. Many Tesla
fans fell in love with the ad and they urged Musk to hire the Freise
Brothers – but we all know that Tesla doesn’t spend money on ads.

Tesla Motors doesn’t spend a dime on advertising, the firm doesn’t work with
any ad agency, and it only relies on the quality of its cars to fuel the
promotion of its brand.  This must be maddening to Ad Agencies but so far
they’re just not needed.

While Tesla doesn’t spend a dime on advertising its cars, the firm doesn’t
shy away from marketing its brand. This piece seeks to explore the success
of Tesla’s marketing strategy and on how the firm is making headway by
focusing on marketing instead of advertisements.

Tesla’s latest marketing initiative
Tesla Motors has started a new marketing initiative and the firm is teasing
customers with the prospects of winning a Ludicrous P90 Model X and tour of
SpaceX. The new marketing initiative is a referral program aimed at
increasing the sales of the Model S and also encouraging owners to install
home EV chargers. The best part of this new marketing plan is that anybody
can win because the winners will be chosen in a draw.

To qualify for the draw to win a Ludicrous P90 Model X and tour of SpaceX,
current Model S owners will be give three referral codes through which they
can encourage people to buy a Model S. The use of the referral codes
provides the new buyers a credit of $1,200 towards the installation of a
home EV charger if they buy and take delivery of Model S between February 16
and April 15, 2016.

Here’s how Tesla will reward referrers. Tesla says, “one lucky referrer will
win a Ludicrous P90D Model X as well as a tour for four of the SpaceX
headquarters in Los Angeles, including travel and accommodations… Five
referrers will win a tour for four of the SpaceX headquarters in Los
Angeles, including travel and accommodations.”

Tesla has a history of impressive marketing initiatives. In August 2015,
Bjorn Nyland, a Model S owner famous for his videos about the car won a
Model X after got 10 people to buy the Model S through his referral link.
Last month, another Tesla owner known as “Wei70644” received a P90D Model S
after he secured 188 orders of the Model S for Tesla. PC Mag notes that
Tesla made at least $16M in sales from the efforts of ” alone.

Marketing makes more sense to Tesla Motors than advertising
Tesla has perfected the art of turning its customers into fervent salesmen
and saleswomen who persuade the people in their network to buy its cars.
Owning an electric car is a relatively new idea for most people and
potential buyers are more likely to consider buying an EV if a friend or
family member who already owns one persuades them. The fact that Tesla
owners stand to win huge prizes when they refer people to the brand also
provides more incentive for current owners to become persuasive
salespersons.

Tesla doesn’t sell its cars via dealerships because the dealers will only be
interested in volume sales and they might not be able to persuade buyers
because the buyers know that they are after commissions. However, if someone
you know rides a Model S and he makes a passionate case for electric cars
over gasoline engines, you’ll be most likely want to listen to him and
perhaps schedule a test drive in his car.
[© learnbonds.com]




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