Created by Borden, The 4 P’s of Marketing is a framework that helps to identify the 4 key areas that premium marketing brands should focus on. The 4 P’s consider different areas and emotions that will enable you to capture the attention of high net worth individuals. The ideas behind Borden’s model were refined over the years until E.Jerome McCarthy reduced them to 4 elements called “The Four Ps.”
The fours P’s, are made up of;
Product
The foundation of a successful product is understanding it’s purpose, quality, and how it fulfills the needs of others. A luxury product must be of the highest quality and encompass the following characteristics that were stated by French marketing professor Bernard Dubois. This includes quality, heritage, integrity, price, scarcity, and superfluousness of non-utility. These characteristics will mean different things to different people however must be included in the product itself and marketing.
Price
Price determinations will impact profit margins, supply, demand, and marketing strategy. Similar (in concept) products and brands may need to be positioned differently based on varying price points, while price elasticity considerations may influence our next two Ps. Money matters to the affluent, which tend to spend rationally, even if they seem to spend a great deal. Aware of the many downsides of ownership, the affluent increasingly favor fractional ownership. While fractional ownership may not always be relevant, luxury marketers should consider adding this to their mix and be very cautious about where their product is priced in relation to its quality and heritage.
Promotion
The danger of promoting your product in luxury is reducing your price or putting your product on sale. Promotion should instead consist of targeted promotional activities that include social media marketing, using brand ambassadors,advertising, PR, Podcasts, and email marketing. Each promotional activity must be supported by a well-positioned brand to truly maximize (ROI) return on investment.
The pursuit of luxury consumption often carries a higher degree of emotional relevance, so marketing must appeal to that passion or emotion. Passionate consumers share their passion in a variety of “old-fashioned” (clubs and associations) and emerging (blogs, online groups) arenas. It is important to always stay engaged and on top of trends so you can be authentically interested when speaking to someone about their interests. Combining personal and digital promotion is key.
Place
It is not only important to have the right product but to have the right product, at the right place, at the right time. Combining this magical equitation will ensure your targeted audience is captured. As a luxury brand, it is vital you locate the best place for your store and also understand the best place to promote your product online. Research has never been so important.
Top Tip: Luxury consumption is all about the experience, this includes engaging with different senses so your experience can become far more special. It is essential to provide consumers with a deep sensory connection to your brand and engage with different emotions and trigger the 5 senses in a pleasurable way. You have to also think about what place is suitable to provide the experience your luxury consumer requires.
Conclusion
The 4 P’s system has been tried and tested many times and can provide luxury brands with an excellent tool to provide great value propositions. The more in-depth research you conduct and the more you understand your consumer, the more rewarding the 4 P’s shall be.
A few questions to think about.
- How do you satisfy your customers?
- What is the perceived value of your product or service and does your quality match this?
Author: Melanie Grace
Website: Vestigedigital.com