(1) Paucity: Rare, hard to get
Paucity can occur because something is expensive to produce, the raw materials are rare, or just because a company decides to not make a lot.
(2) Pedigree: The history of something, usually it’s used in a positive way
I haven’t worked with that firm before, but they have excellent pedigree. I’m sure we can trust them.
(3) To reinforce: To make stronger
Each part of a brand should reinforce the other parts. For example, the performance should make the persona stronger.
1. Why is it important to study luxury marketing?
a. All brands should try to become luxury brands
b. It’s key for making more money
c. Some ideas can be used for any brand
2. How do luxury brands use public figures and PR to help their brands?
a. They reinforce the other parts of the brand
b. They allow them to charge high prices
c. They make it hard to learn about the brand
3. How should luxury brands be placed?
a. In an exclusive environment
b. In a luxurious environment
c. A and B
By Jeremy Schaar
What brands do you think of when you think of luxury? Brands like Gucci, Versace, and Rolex probably come to mind. These brands have done an excellent job marketing their products. They represent luxury and they’re able to charge very high prices as a result. But why? What makes them special? What are the secrets to luxury marketing?
Today on the blog, we’ll review the eight Ps of luxury marketing. You’ll learn some great vocabulary. And, even if you don’t have a luxury product, you’ll learn some ideas that you can use to market your brand. In the coming weeks, we’ll look at companies that use luxury brand strategies well (even if they don’t have a luxury brand).
Performance. Pedigree. Paucity. Persona. Public Figures. Placement. PR. Pricing.
According to Rohit Arora, these are the eight Ps of luxury marketing. I’ll review his ideas in simple English. After you finish this lesson, I suggest you read his whole paper.
Performance: This means that experience with the product should be great. If it’s a watch, it should be a great watch. If it’s a car, it should be a pleasure to drive.
Pedigree: Pedigree means good history. Chanel and Gucci don’t just make great products now, they have a long history of being amazing.
Paucity: Paucity means rare. Products can be rare for different reasons. Some are just hard to get–like diamonds. Others, like a custom car, are hard to create. Others, like an Hermes tie, are just produced in small numbers on purpose.
Persona: It’s the personality of the brand. The brand should create an emotional connection. Often advertisements make it seem that the brand lives in an amazing world full of sex and adventure.
Public Figures: Actors, actresses, musicians, sports stars, and so on. They’re people we admire, so we trust them when they speak about performance. They also reinforce the pedigree, paucity, and persona of the brand.
Placement: Placement isn’t just an element of luxury marketing. It’s one of the four basic Ps of marketing. The brand should be placed in a luxurious or hard to reach environment. The magazines and events where a brand is featured are also part of placement.
PR: Good public relations for a luxury brand will give the brand buzz that reinforces the other Ps.
Pricing: And here’s the big one. Luxury brands are expensive. The price makes us trust the performance and makes the brand rare–if only because most can’t afford to buy it.