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Promotional Strategy and Branding for Tesla Company


Tesla Inc. is an electric cars, battery, solar panels, and related products designing and manufacturing company located in Austin, Texas, in the United States. The company was founded in 2003 by a group of engineers. Currently, Tesla is the only vehicle manufacturer that sells zero-emission sports cars in serial production (Somssich, 2016). The enterprise has the growth prospects of a technology company, but it is also similar to the automobile industry in its capital-intensive functions.

Tesla’s Digital Theme

Tesla believes in “word–of–mouth” and uses this marketing strategy which has proved to be effective. The brand encourages its seasoned customers, staff, and friends of the company and their families to recommend to prospective clients products. In this method, Tesla is driven by the belief that consumers tend to trust recommendations from people they know (Rojas, 2020). The company has a referral system in which it rewards those who share the brand’s experience with others. It believes and practices authenticity – the brand is accurate and truthful in all its dealings, from owning up to its mistakes to sharing its plans and strategies. Secondly, Tesla makes clients’ experience very simple because they do not have to deal with a lengthy in-person purchasing process, but they order their preferred vehicles online, which makes the process seamless. The company also does connect with customers through forums and an owner club, which has enabled it to build loyalty and passion among its clients. Additionally, the company uses multiple channels like social media platforms, websites, online videos, and partnerships with colleges to promote and expose its car products.

Digital Trends

Digital marketing tendencies are essential alternatives in the strategic management of the online marketing terrain that impact the way marketers should interact with their target audience. One such trend is the voice search which allows a customer’s query to be answered immediately without then having to scroll through the whole list on the search result page. The system answers the user satisfactorily with the first pop-up response. Currently, 20% of internet searches are voice-based; 58% of customers use voice search to find business information; 40% of use voice search daily; and 1 billion voice searches occur every month (Dave, 2021). The other important digital trend is chatbots which allow brands to engage in conversation with clients to enhance good relationships for maximum sales. Companies have discovered the ease and efficiency of chatbots as far as customers are concerned. A survey conducted by Oracle in 2016 on the future of client service revealed that one in three brands acknowledges that customers prefer to complete a purchase without talking to a human associate if possible. This is encouraging, and companies must begin to embrace digital trends fully.

Conversational marketing is another digital trend that is key for companies. This trend enables a dialogue between the company and the customer. Brands have realized that they need not talk about themselves but must also listen to their customers’ issues and solve them on an individual basis. This strategy results in a much better interaction as clients feel they are heard. It enhances the speed with which customers’ problems are resolved. Social messaging apps that form part of conversational marketing strategy have 4.5 billion users combined (Dave, 2021). Customers expect brands to have an efficient presence on messaging apps because interactions on these platforms are easy.

Tesla Target Market

Tesla cars are not for the average customer but for the middle or wealthy individuals or households. The company targets ambitious middle and upper-class customers who are seeking self-actualization and status in society. It targets those customers who are inclined towards environmental conservation (Dudovskiy, 2021). Those who aspire to change the world from relying heavily on fossil energy which is the largest contributor to environmental pollution. The brand also targets clients who are focused on cost-effective cars in the long. In addition, it targets customers who are out to adventure new technology in the automobile industry (Dudovskiy, 2021). Tesla achieves this by dividing the target clients into segments through the identification of specific population segments and developing products that cater to each segment’s needs.

The Impact the three Digital Trends will create for Tesla

The three trends can create a huge impact on Tesla’s brand in the sense that they have the capacity to improve the relationship of the company with its customers, including prospective clients. These trends can also help Tesla increase its sales by reaching out to many customers. For example, conversation through the messaging app can help Tesla cultivate close contact with clients, deliver timely responses to clients, provide support to customers, and boost its sales. Chatbots could help Tesla save on its operation cost because it allows communication without the help of humans, so it will not need to hire people to operate the services. It has the capacity to bring communication to the human level because they get smarter, and the conversation becomes more. The chatbot’s technology is efficient in generating answers customized for each customer. Customers use voice search on different applications, which helps them with the car purchasing process. Implementing this digital trend will make Tesla reach many customers, including new ones, with prompt responses, which will thereby increase its sales and profit margins. The three trends are also important to the audience in the sense that they get answers to the queries on time and easily without moving.


Dave, N. (2021). Digital marketing trends you can’t ignore in 2022. Single Grain.

Dudovskiy, J. (2021). Tesla segmentation, targeting and positioning: Overview. Business Research Methodology.

Rojas, F. (2020). Eight digital marketing lessons we can learn from Tesla. Forbes. Web.

Somssich, E. (2016). Definition and market analysis of the Tesla motors model. Grin.

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ApeGrade. 2023. "Promotional Strategy and Branding for Tesla Company." March 20, 2023. https://apegrade.com/promotional-strategy-and-branding-for-tesla-company/.


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