In the world of business, marketers tend to follow a set of standard rules, which include ‘defining a target audience’ and ‘meeting consumers needs.’ A marketing plan often summarizes the voice of the consumer, as this is the best way to ensure that consumer’s demands will be met. In the world of luxury marketing, however, the opposite applies.
An article by entrepreneur.com discusses the ‘anti-laws’ of marketing and how they are used to market luxury brands. One of the biggest rules of luxury marketing is to never compare your brand to others. You want your brand to be viewed as unique as it creates a sense of rarity and helps turn brands into a statement that symbolize wealth and status. These factors result in an increased demand. This is contradicting to general marketing, as it is common for regular brands to compare themselves to others in attempts to showcase how their brand is superior to others.
5 Laws of Luxury Marketing
1. The presumed price of your product should always be higher than the actual price. Consumers associate value, quality, and luxury with a high price. The higher price also reflects the experience of luxury purchasing that comes with the product.
2. You want all consumers, even those that cannot afford your product, to be aware of your brand. Your brand will become recognizable due to it being unaffordable. It will give it the stamp of perceived luxury.
3. Surprise consumers with something new. You’ll create excitement among consumers while setting trends in your industry.
4. Purchasing luxury goods and services should feel like an exclusive process. Luxury products should only be available through specific sources and should not be openly available on the internet.
5. Don’t respond to rising demands. Products are luxurious due to their limited availability, being personalized, and feeling timeless.
Luxury marketing is about creating feelings of pleasure, recognition and self-evaluation. That is in great contrast to general marketing, which is all about promoting risk reduction, and reducing problems and feelings of discomfort.
Luxury marketing strategies are not just for luxury brands. If you have a unique product that doesn’t meet all of the criteria of being luxurious, you can still implement a luxury strategy. For example, Apple has used elements of the luxury strategy and has been extremely successful. They did so just recently by announcing the new Iphone7. The new phone will no longer support the use of traditional headphones and will require users to purchase Apple’s wireless earbuds for $159.00.
They surprised consumers with a significant change in their product knowing it might not receive the best response. Even so, Apple has sent a clear message that the new trend in the phone market is wireless. They are leading the way in shifting the headphone industry. Since the brand has created a community that consumers want to be part of, it is safe to say that the shift to the use of wireless headphones will happen, whether or not consumers are initially happy about it. Although Apple may not be a luxury product, the brand has luxury qualities. Luxury marketing has helped lead Apple to the success that it has today.