All manner of companies have big marketing and market research teams to help them guide their product decisions, but the most successful entrepreneur of all time doesn’t believe in them.
Elon Musk says he doesn’t have marketing teams or market research teams at his companies. Speaking at an Air Force event in 2019, Musk had offered a fascinating glimpse into his product development philosophy – one that eschews traditional market research and advertising. His comments, underscore a principled approach to innovation that has fueled his remarkable success. What’s even more interesting is that this approach, though counterintuitive in today’s data-driven world, appears to be working remarkably well, even with his recent decisions regarding Twitter/X.
“I do zero market research whatsoever,” Musk said. “Okay, we don’t even have a marketing department, or advertising.”
Musk then likened his approach to designing a graduate-level car or rocket. “It’s like, we try to think, what is the platonic ideal of, say, the perfect rocket or car? What characteristics would it have and make that,” Musk explained. “And I find that if you do that, people will buy it.”
This simple, almost idealistic, approach is striking. In an era where companies spend billions analyzing consumer behavior and tailoring their products accordingly, Musk appears to operate on a different plane. He focuses on creating what he believes to be the best possible product, trusting that his vision will resonate with consumers.
This strategy’s success, particularly with Tesla, is undeniable. The company revolutionized the electric vehicle market, not by asking consumers what they wanted, but by presenting them with a compelling vision of the future of transportation. Similarly, SpaceX has disrupted the space industry with its reusable rockets and ambitious plans for interplanetary travel. Even with X, despite the tumultuous transition and public outcry, the platform remains relevant and widely used. This begs the question: is Musk’s approach a stroke of genius, or is he simply fortunate?
Perhaps the answer lies in the nature of the products themselves. Tesla and SpaceX, for instance, are the best products in their category. There’s no other company that can build rockets like SpaceX, and even Tesla’s detractors say that it’s the best electric car around. As such, Musk doesn’t really need to market them — the quality of the products is such that they draw in customers, as opposed to the companies needing to reach out. This works great for differentiated businesses — it might not have the same success if the products themselves can be substituted, like Coke and Pepsi, or Boeing and Airbus. And in Musk’s world, it seems, the best market research seems to be simply building the best version of the product you believe in.