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in automotive industry, do not support the idea of dealership or middleman ship that works between the company and their customers. (Lam, Brian (2007-02-19). They have the notion of directly dealing with their customers. What is meant to be a direct marketing strategy of Tesla’s brands.Different forms of direct marketing channels by Tesla.How Tesla implement and execute direct marketing strategies.Targeted market & Goal.How Tesla Eliminate the dealership and third party.What was the general customer reactions and responds towards the idea of Tesla direct marketing.The reasons and the rationale behind Tesla direct marketing market initiatives.The overall gain and some setbacks.Finally, how Tesla win their customer loyalty and stays connected. Sales Promotion – Aakash SinghMost companies have some form of sales promotions, but it appears that CEO Elon Muskis against the practice entirely. Car dealerships in particular use negotiation and sales tactics in order to get customers to buy their cars, but Tesla as a whole has shown that they are unwilling todo that. Last year a spokesman put out an official statement, including the following “There are zero exceptions to that policy: every Tesla customer pays the same amount for the same car, period …. We don’t do “deals.” We treat everyone the same. This will never change, ever” (Lambert, 2017).What Tesla does have, however, is a referrals program. A Tesla owner has referral codes to give to friends that are also interested in buying a Tesla Model 3, S, or X. For every additional referral code a customer gives to a friend, they get an increasing number of benefits, including
things like a supercharger, early access to solar roofs, invitations to a Tesla unveiling event, and ahome battery. The referral code itself gives free, unlimited supercharging to people who use the codes. Tesla owners can also give an extended limited warranty for a new solar power system to up to five friends.Tesla’s referral programs are somewhat unique in the auto industry, as they appear to firmly believe that the price they sell their cars for is the only price that it should ever be sold at, so no sales promotions are necessary. Instead they are depending on Tesla customers being loyal enough to Tesla to recommend their products to their friends. The no-discount situation can be harsh for those consumers that need sales to be able to purchase a new vehicle, as Tesla’s Models3, S, and X are all more expensive than other popular brands by a non-insignificant amount. Relying on consumers to provide benefits to other consumers could be considered a risky practice, since they are under no obligation to refer to their friends. Providing benefits to the referrers is a good step to ensure at least some level of customer participation, but direct sales promotions would get more customers into dealerships.