Tag Archives: marketing mix

Who Needs Advertising? Not Tesla.

Tesla continues to defy common advertising and marketing conventions, yet still managed to become a valuable brand and hot product. The company does not advertise or promote its cars through traditional media. This lets the company save a great deal of money, and focus on its design and manufacturing.

Tesla’s Model 3 goes on sale for an estimated delivery in the fourth quarter of this year. To date, without any advertising other than word-of-mouth and free media coverage, customers have put down $1,000 deposits on nearly 500,000 cars! According to the company, it continues to average 1,800 net orders per day.

This is an enviable position for the automaker considering that Nissan spent $4.3 million in advertising on its electric Nissan Leaf car, and General Motors spent $3.7 million on the Chevy Bolt electric car. Tesla may not sell as many vehicles, but its cost per vehicle is virtually non-existant.

The top five and bottom five spenders based on 2016 advertising are:

  • Hyundai Genesis – $6,821/vehicle sold
  • Lincoln – $2,719/vehicle sold
  • Jaguar – $2,376/vehicle sold
  • Fiat – $2,350/vehicle sold
  • Cadillac – $1,493/vehicle sold
  • Toyota – $353/vehicle sold
  • Dodge – $348/vehicle sold
  • Honda – $322/vehicle sold
  • Porsche – $283/vehicle sold
  • Tesla – $0/vehicle sold

It shows that while advertising is an important marketing tool, it is far from the only way to gain customers.

Group Activities and Discussion Questions:

  1. Discuss the various promotional tactics that can be used for launching a product.
  2. Have students come up with tactics and list all the tactics on the white board (ex: billboards, print, direct mail, etc.).
  3. Divide students into groups to work on this exercise.
  4. Show Tesla’s Web site: https://www.tesla.com/
  5. Videos are available on Tesla’s YouTube channel: https://www.youtube.com/user/TeslaMotors
  6. For Tesla, have each team select three different tactics. For each tactic, explain why it was selected and how it will be used.
  7. Debrief by putting together the entire suggested lists on the white board. As a final step, have the entire class vote on the top three tactics to use.

Source:  Ad Age Daily, Kantor Media, Automotive News

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Fender Teaches Guitar Online

While not everyone is a musician, many other people have longed to learn a musical instrument. Some people do learn, but many others stop learning and playing way too soon. According to research from Fender Guitars, 45% of guitar sales are generated by people who have never used one before – but 95% of people who try guitar give it up in the first year. That dramatically lowers overall industry sales, and gives Fender an opportunity.

Fender Guitar has a new plan to help people learn how to play classics such as The Star Spangled Banner and  other songs. The key is to get future guitarists engaged quickly. The Fender Play web site has a guided curriculum so that students can pick the style of music they want to learn, and then immediately get instruction on songs from that genre. Fender Play includes:

  • A guided learning path for your musical style
  • Hundreds of lessons
  • High quality, close-up videos
  • New songs and lessons added regularly
  • Artists such as Foo Fighters, Elvis, U2, The Lumineers, and more

The service starts with a free 30-day trial period, followed by a  fee of $19.99 per month. Fender Play is not limited to its own guitar players. Any guitar student can learn to play on their own instrument (but, of course Fender hopes to create future good will towards its company).

What are you waiting for? Pick up that six-string and go!

Group Activities and Discussion Questions:

  1. Poll students: Who plays guitar? Who used to play guitar? Who wants to play guitar? What keeps them from playing guitar?
  2. Show FenderPlay site: https://www.fender.com/play
  3. Optional: Additional videos to show:

https://youtu.be/h6ada1kvgEw

https://youtu.be/jnkppFj5Ri4

https://youtu.be/GSvQOodrEpA

https://youtu.be/T4lFt2JWrXk

  1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  2. Which strategy is Fender using for this product? Why?
  3. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market Fender guitars.
  4. Have each team determine the marketing mix (4Ps) to support their strategy choice.

Source:  Brandchannel.com

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Viral Videos for May 2017

This week’s viral video is a great mix of ideas, with several longer videos in the top spots. Hyundai’s short adventure film features its cars on an icy trip in “Shackleton’s Return.” Heineken also retains a top spot for its short film, “Worlds Apart.” The film pairs strangers (who happen to have opposite viewpoints) working together to build a bar, then finding out who they have really been talking to. It’s time to be open-minded, listen, and talk about differences.

There are three key factors for viral video success:

  1. Reaching the tastemakers.
  2. Building a community of participation.
  3. Creating unexpectedness in the video.

Regardless of the type of product or service, the country of origin, or the importance of the message, what matters is reaching the audience in a way the both entertains and informs. It might be YouTube, and more often now, it’s on Facebook and other social media. Check out this week’s top videos and discuss what makes them “go viral.”

Group Activities and Discussion Questions:

  1. Bring up a recent Ad Age’s weekly Viral Video chart: http://adage.com/article/the-viral-video-chart/viral-video-chart-5-1-17/308885/
  2. How effective is each video at getting the company’s brand and message across to viewers?
  3. In teams, have students design a viral video for a product of their choosing. What are the elements that are needed to go viral?

Source:  Advertising Age

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