Elon Musk’s recent behavior has some people questioning the credibility of his brands. Some argue that his erratic tweeting and unconventional business practices are harming Tesla and SpaceX’s image. Others believe that Musk is simply misunderstood and that his maverick style is actually good for business. What do you think? Does Elon Musk’s behavior affect the way you view his brands?
The definition of a credible company brand
A company’s brand can be defined as the sum total of all the perceptions people have about that company. It includes everything from the company’s reputation to the quality of its products and services.
A credible company brand is one that is seen as reliable and trustworthy.
People will be more likely to do business with companies they believe are credible, and they will recommend the company to others. This is the hallmark of the world’s most valuable brands.
A company’s brand credibility is a sum total of:
- all the perceptions people have about the company
- the company’s reputation
- product quality of the company
- quality of services
What makes a company’s brand credible
There are several factors that contribute to a company’s brand credibility.
- The first is the company’s reputation. If the company has a good reputation, people will be more likely to believe that it is a credible company.
- The second factor is the quality of the company’s products and services. If people believe that the company offers high-quality products and services, they will be more likely to trust it.
- The third factor is transparency. A company that is transparent and open with its customers will be seen as more credible than one that is not. Finally, the company’s actions matter. How companies behave in both good times and bad affects their credibility.
Why Elon Musk’s behavior affects the company’s credibility
Elon Musk is the founder, CEO, and CTO of SpaceX. He is also the founder of Tesla Motors, SolarCity, and PayPal. He is a well-known entrepreneur and has achieved a great deal of success in his career.
However, recently Musk has been in the news for all the wrong reasons. He has been involved in several disputes with other company executives, and he made some sexist comments on Twitter.
Some of Elon Musk’s controversial actions that could negatively impact the brand:
- Elon Musk has made controversial remarks about COVID-19, calling it ” overhyped ” and downplaying the risk it poses to people. This has caused some concern among the public about his judgment, and whether or not he is taking the pandemic seriously.
- Elon Musk has used his Twitter account to challenge Russia’s Vladimir Putin, which many saw as inappropriate and disrespectful to the people of Ukraine. This caused some to question Musk’s judgment and whether he is fit to lead a company.
- Elon Musk has been known to change his mind on important company decisions abruptly, which can cause confusion and uncertainty among employees and investors. This can damage the company’s image and make it appear less reliable as a business.
This behavior from Musk has had an effect on Tesla’s company image and brand credibility. Some people may no longer trust Tesla as a reliable and responsible company because of Musk’s actions. This could have consequences for the company, such as a loss in sales or investment.
All of this has had a negative effect on the company’s brand credibility.
The consequences of an untrustworthy company brand can be very damaging, costing the company money, jobs, and respect. It’s important for CEOs to be aware of the consequences of their behaviour and take steps to protect their company’s brand equity.
How to rebuild company brand credibility if it has been lost
If a company’s brand credibility has been damaged, it is important to take steps to repair the damage and rebuild trust. These actions often fall to the marketing department.
- The first step is to acknowledge what happened and take responsibility for it. The company should then apologize for any harm that was caused in the marketplace.
- Next, the company should take measures to ensure that the same thing doesn’t happen again. This could mean changing company policies, hiring new leadership, or making changes to the company’s products and services.
- Finally, the company should communicate all of this to its customers and stakeholders. It is important to be open and transparent about what happened and how the company is working to fix it and build credibility.
These steps are important for any company that wants to rebuild its brand credibility. However, they are especially important for companies like Tesla, which have built their brands on trust and reliability.
Car Companies Already Struggle to Build Brand Equity
If Tesla wants to maintain its position as a leader in the automotive industry, it must take steps to repair the damage that has been done to its brand equity.
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