Marketing - The Luxury Market Article Example | Topics and Well Written Essays - 2000 words

Marketing - The Luxury Market - Article Example One simple answer: brand name. People trust the brand and â€Å"perceive them as having value over and above that of the ‘equivalent’ commodity† (Chernatony and McDonald 2003, p.367). The brand conveys a message. Hence the brand has aspiration, and people who want to be linked with that aspiration, and have the resources to ensure that happens are loyal to these brands. The brand makes one feel special; the brand makes provides one with superior confidence and heightened feeling. (Globe 2004). The brand is the differentiator; the brand is what helps you fit in. It is weird, but the brand is what conveys what you want to convey to the world. And if you can afford it, why not? Luxury Marketing To understand the difference in the marketing style for luxury brands, one must first understand the difference between regular and luxury goods. A brand that is highly priced does not automatically become a luxury brand. Price is only one factor. There are various others such as the quality of the product, its exclusivity, the precision in its making, innovation, and so much more! Such products are obviously targeted at consumers at the highest level in the wealth pyramid, ones that have resources they do not know what to do with. They need to be reminded about their status, the prestige, and so choose products from the luxury segment that differentiates them from the crowd and sets boundaries when it comes to their social status. (Vickers and Renand 2003). They are not worried about price of a product as much as the value it brings to their lives. These are the people who choose opulence over necessities, and why not? They have the resources for it. They even have an inexplicable bond with the products they choose. They prefer not to experiment and want what they want. Luxury Marketing Mix The marketing mix for luxury products differs from regular products in many ways. Let us take a look at what sets these apart. 1. Product: A regular product is produ ced in thousands, maybe millions. All these products have the same price, are standardized and are identical to one another in almost all aspects other than color or size. But take a luxury product and it become exclusive and special by customizing the product or producing a limited edition line. (Piron 2000). 2. Price: The pricing strategy for regular products is mainly value for money. This is due to the highly competitive market and the fact that there are substitutes in the market for almost anything. People know what they want and where they can get an alternate at a lower price. The luxury segment is premium priced for people who know exactly what they want and do not mind spending to get it. 3. Place: Regular products are easily accessible and are made available in multiple stores or in zones that will be convenient for the people in the target group. Luxury items do not need to be strategically placed. They are usually made available in very exclusive stores in high end area s where they will be accessible to the buyers. (Piron 2000). 4. Promotion: For a regular product, every form of promotion is used from Above the Line, Below the Line, advertising in all sorts of media, building product functional and aspirational appeal and so on. For a luxury product however, premium, above the line media are used, specific to the