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And this is how we know article has not been read Very early in the article > To clarify before we begin, advertising and marketing are not the same thing. Ac
by NikolaeVarius 5y ago
And this is how we know article has not been read
Very early in the article
> To clarify before we begin, advertising and marketing are not the same thing. According to the American Marketing Association marketing is “the process of identifying customer needs and determining how to best meet those needs.” In contrast, “advertising is the exercise of promoting a company and its products or services through paid channels.” Yes, Tesla does spend money on marketing albeit significantly less than the competition. For instance, in 2015 Tesla spent $58.3 million on marketing when competitors like BMW spent $196.6 million.
They needed to put mass into space, might as well make it funny
- kabes 5y agoHow can you compare these absolute numbers? In 2015 BMW had 25 times more revenue than Tesla, and only spend 4 times as much as Tesla on marketing. So in relative terms Tesla is spending way more
- hervature 5y agoI assume they are long $TSLA. In my experience, they pick whatever comparison is convenient for their narrative. Absolute in cases such as this and relative for growth numbers.
- judge2020 5y agoMarketing seems to be largely not correlated with revenue/sales, besides things like buying the badges to put on cars.
- kabes 5y agoSource?
- judge2020 5y agoI should say marketing expenses minus advertising - There's a base price you must spend on marketing, eg. tesla.com could be seen as a marketing expense since it's the final selling point before someone puts down a reservation fee, along with the obvious "every car needs the T emblems which cost $0.90 per car". My point is that Tesla can achieve the same revenue levels without necessitating a 4x increase in marketing spend.