KEEP IT SIMPLE- MARKET RESEARCH

There are so many ways to conduct a market research and there is always a room for improvisation in the process. People over the years have used many tools and ways to conduct the market research to extract as much data as they can and main reason behind this is to have a clear idea about the target market. But at the same time the way of doing market research varies from business to business so there is no one particular rule which one has to follow. Normally it happens to a new technology coming which people don’t know about, so in this case the market research is not typical. In this situation researcher have to come up with some new ideas to collect data because the customer have no knowledge about coming product and direct interaction with customer can lead to confusion. Sometimes the main target of the company to do market research can be how to educate its market about new technology. As Steve Jobs said “people don’t know what they want until you show it to them”.  So sometimes to get the true insight of market an unconventional way of doing research is required. In recent past something similar is done by tesla cars.

Tesla’s way of understanding customer’s psychology

strategic-marketing-for-tesla-motors-uc-berkeley-extension-3-638.jpg

(Tesla marketing, 2015)…(fig 1)

The biggest thing happened in field of automobile after Henry ford’s car startup hundred years ago is the tesla car. It is an electric car and don’t mix it with typical hybrid car because it is an electric car which means totally on electric batteries with no other fuel options. if we look at the advertising budget of Tesla motors it is close to $0 and at the same time its first model “model S” in 2012 is a success and looking at the future the tesla CEO Elon Musk boldly said that by 2025 tesla market cap would be $700 billion. (Tesla marketing strategy, 2015) Now the question is how product can be a success internationally if its advertising budget is close to zero and on other hand market researchers are predicting that tesla is the future of automobile. The answer is Elon Musk believes that it is more important to win consumer trust and invest all the money in research to make product better instead of investing in advertisement.so he normally interact with his customer through social media or his blogs and tell them about new improvements.  Coming back to market research Tesla automobile never have to manage any market survey because it never conducted any and they never built any kind of graphs or clusters before launching of any Tesla product. Tesla market research always was its belief that it is going to solve an international environmental issue because there always have been a debate about how to make our environment a sustainable environment and use of fuel for automobile always been a threat but electric cars have no such issues so electric car was a success from its inception. It was the belief that Elon Musk the CEO boldly announce that everyone in automobile industry is allowed to use the Tesla patent technology because he wants to shift automobile industry into electric vehicle industry. At the same time threat for electric car in market was people perception about the hybrid cars which are also someway considered as electric cars and hybrid always been viewed in people’s mind as a slow and boring car but tesla car changed that perception through P85D sports dual motor which covers from 0 to 60mph in 3.2 seconds which is fastest 4 door car ever. (Blog, 2012) To break the image of boring car tesla automobile targeted rich people of Silicon Valley who are known for driving high speed sports car and tesla was successful in that too and it was an image changer all over the world and specially in us market. Tesla started with very expensive cars and as volume of sale increased introduced low price model and they are following the same strategy(fig 1) which is totally apposite from typical automobile industry’s way of doing business.

There can be several ways to understand your customer psychology towards a new product or service and now a days with the availability of so many useful tools to do market research one have to be very smart that what is required for a particular product or service. Its more about how well you understand your product and your market then it will be easier to penetrate.

Reference:

admin (2015) Tesla’s marketing strategy: Accelerating the world into sustainable transport. Available at: http://www.qmac.ca/teslas-marketing-strategy-accelerating-the-world-into-sustainable-transport/ (Accessed: 18 April 2016).

Blog (2012) Science of revenue. Available at: https://scienceofrevenue.com/tag/tesla-marketing-strategy/ (Accessed:

Tesla marketing (no date) Available at: https://www.google.com.au/search?q=tesla+marketing&biw=1920&bih=945&tbm=isch&source=lnms&sa=X&ved=0ahUKEwiy6NuS_pfMAhVM2WMKHTpOBAYQ_AUIBygC#tbm=isch&q=tesla+marketing+plan&imgrc=17hrCD2MT-DP3M%3A

 

Author

sherafgan khan

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