Marketing’s Challenge: Monetizing Value
In just over the space of a week, Tesla Motors recently booked orders for over 325,000 of its Model 3 sedan, a vehicle not expected to be delivered until late 2017. And for these advance orders, customers were willing to pay a reservation fee of $1000 to be in line for a delivered model. What was the reason for such an iPhone-like frenzy of demand?
Some may point to Silicon Valley’s fascination with all things new, especially technologically advanced products like the all-electric cars Tesla offers. But this demand was nationwide. Others may point to significantly low price point, $35,000 for the base model, significantly below Tesla’s previous models. So sure, a low price for an electric vehicle was a factor. Yet, in reality, Tesla was only tapping into one of the key drivers of marketing success: Value for customers. Read more ›