The word “luxury” originated from the Latin word “Luxus,” which means indulgence of the senses, regardless of cost. When one speak about luxury marketing what we are really talking about is building a brand up to a point where it can attract customers willing to pay a premium.
Distribution is integral in luxury. Brands within the luxury goods and services markets tend to be concentrated in exclusive retail stores or affluent districts of cities around the world. Therefore, location is of particular essence to communicate the luxury experience.
The creative approaches to luxury branding are constantly evolving. One particular promotional strategy that is often seen with luxury is the use of celebrity endorsements. This practice has evolved to a stage where the celebrity’s name has become the product.
Luxury goods often have unique packaging to differentiate themselves from mainstream competitors. The use of higher cost printing and die cut processes create an experience that is perceived as luxury.
LUXURY MARKETING STRATEGIES
The promotional strategies behind luxury marketing include: advertising, public relations, personal selling, custom website design, sponsorship and direct marketing. Much emphasis is placed on branding particularly through advertising. The annual advertising budget of the average luxury brand is between US$15 million and US$50 million, which is, 25% of sales revenue (U. Okonkwo, 2018).
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