Tesla

**Focusing on the ‘P’ - Product in marketing
Unlike other automakers, which spend a lot of money on advertisements, Tesla put all of
its money into research and development, engineering, and manufacturing. It focuses on a
particular ‘p’ in marketing – Product – rather than the ‘P’ in promotion.
The aim was to create the best electric car (Roadster) that customers would suggest to
others (a much cheaper form of marketing) and to concentrate on proof and track record
rather than brand perception. What distinguishes Tesla is that it has a social mission at the
core of its brand. Tesla was able to distinguish itself from BMWs and Audis.
The Roadster was not only a beautiful car, but its success as an electric vehicle
outperformed all those that came before it. In a head-to-head comparison, the Tesla Roadster
was planned to defeat a petrol sports car such as a Porsche or Ferrari. It can accelerate from 0
to 60 mph in 1.9 seconds and has a maximum speed of more than 250 mph. Aside from that,
it has double the energy efficiency of a Prius. The Roadster was also the first electric vehicle
with a range of 200 miles on a single charge.
The other strategy is Elon Musk, the CEO of Tesla, has significantly increased the
company's visibility in the market. He frequently gets involved in minor conflicts and is
socially engaged on social media. His idealistic demeanor draws a large following, and his
social media channel develops into a platform for Tesla marketing. Having such a solid
social media presence ultimately helps Tesla with its marketing.
Elon Musk has long been interested in spreading buzz online. His most recent publicity
came from testing the newly introduced cyber truck's window glass, which wasn't meant to
break but caused a lot of buzz for Tesla and ended up serving as a marketing tool for the
vehicle.
Tesla operates differently from other traditional automakers. Investors cannot purchase
any franchises from it. They have developed sales centers that function simultaneously for
sales and customer service.
*Tesla’s place of origin is California, United States. The United States has one of the
largest automotive markets in the world. In 2020, U.S. light vehicle sales were 14.5 million
units. Overall, the United States is the world’s second-largest market for vehicle sales and
production. Autos Drive America reports that international automakers produced 5 million
vehicles in the United States in 2020.
The U.S. affiliates of majority foreign-owned automotive companies directly support more
than 400,000 U.S. jobs. In addition to the auto assembly plants, many automakers have U.S.-
based engine and transmission plants, and conduct R&D, design, and testing in the United
States. Total foreign direct investment in the U.S. automotive industry reached $143.3 billion
in 2019. According to a study conducted by IHS Markit and released by the Motor &
Equipment Manufacturers Association in 2021, the vehicle supplier industry generated a total
of 4.8 million U.S. direct, indirect, and induced jobs in 2019.
The automotive industry is also at the forefront of innovation. New R&D initiatives are
transforming the industry to better respond to the opportunities of the 21st century.
International automakers now have almost 70 U.S.-based R&D facilities that employ more
than 7,000 workers.
In 2020, the United States exported 1.4 million new light vehicles and 108,754 medium and
heavy trucks (worth a combined value of over $52 billion) to more than 200 markets around
the world, with additional exports of automotive parts valued at $66.7 billion. With an open
investment policy, a large consumer market, a highly skilled workforce, strong R&D
capabilities, available infrastructure, and local and state government incentives, the United
States is expected to remain a leading market for the 21st-century automotive industry.
**Although the United States economy leans toward a market economy, the government
plays a significant role. The most obvious way the government is involved in the U.S.
economy is providing public goods and services like education, military protection, national
parks and federal highways. These goods and services are paid for with tax revenue, which
introduces a second role of government – redistribution of income.
One significant way the government redistributes income is through entitlement programs
and unemployment. Taxes are collected from individuals and businesses (with income taxes
being the largest source of funds), and that money is paid to other people in the economy
who may not be working (unemployment) or are retired (Social Security). People often have
strong opinions about how much assistance the government should offer and to whom, so
this role creates controversy.
The government also serves an important role in protecting private property – which is
critical for markets to function properly. That means that other people don’t have a right to
live in your house or use your invention, and you can seek legal help if they try. When
markets fail to function properly, the government sometimes steps into a market to resolve a
market failure by limiting the power of a monopoly or to address negative side effects for
third parties, like pollution. The government may also affect markets through regulations that
impact the way producers make goods and services.

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**Focusing on the ‘P’ - Product in marketing

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