{"id":28516,"date":"2025-07-28T12:43:17","date_gmt":"2025-07-28T09:43:17","guid":{"rendered":"https:\/\/www.adcore.com\/blog\/?p=28516"},"modified":"2025-08-04T11:28:03","modified_gmt":"2025-08-04T08:28:03","slug":"marketing-in-3-levels-of-profitability-mainstream-premium-and-luxury","status":"publish","type":"post","link":"https:\/\/www.adcore.com\/blog\/marketing-in-3-levels-of-profitability-mainstream-premium-and-luxury\/","title":{"rendered":"Marketing in 3 Levels of Profitability: Mainstream, Premium &#038; Luxury"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"28516\" class=\"elementor elementor-28516\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-989b1f7 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"989b1f7\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7fb8787f\" data-id=\"7fb8787f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4367c1f0 MicroFont elementor-widget elementor-widget-text-editor\" data-id=\"4367c1f0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.22.0 - 24-06-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">Everyone in the business world knows that there are two ways to make money: Selling to many customers at a relatively low price or selling to a smaller clientele base at a high price \u2013 everything according to the industry and your marketing strategy.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The fundamental fact is that there are more buyers for cheaper products and services than for more expensive ones. A lower price usually allows for a smaller profit margin for every product or service sold.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">However, with proper business management, sales on a larger scale can yield significant profit. In contrast, there are usually high costs at the high end of the market spectrum, behind the high prices. Here, too, proper management and <a href=\"https:\/\/www.adcore.com\/blog\/marketing-mix-secret-elaboration-likelihood-model\/\" target=\"_blank\" rel=\"noopener\">marketing mix<\/a> is necessary to ensure good profits despite having a lower clientele base.<\/span><\/p><p><span style=\"font-weight: 400;\">A central component of proper management is proper marketing. in this article, I will break it down into three different types of marketing for three levels of profitability: Mainstream, premium, and luxury. Each one of them has its unique challenges and ways of operating.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Deciding on the proper marketing strategy (This is how <a href=\"https:\/\/www.adcore.com\/blog\/elon-musks-marketing-strategy-secrets\/\" target=\"_blank\" rel=\"noopener\">Elon Musk<\/a> is doing it) is critical to utilizing one&#8217;s marketing budget intelligently and efficiently from a strategic standpoint.<\/span><\/p><h2>The first level of profitability: The mainstream marketing strategy<\/h2><p><span style=\"font-weight: 400;\">Mainstream marketing, i.e., &#8220;regular&#8221; marketing, offers products and services that serve a practical use that most buyers consider reasonable at prices that most buyers are ready to pay. A solid marketing strategy is essential to ensure products remain competitive and appealing to consumers within this segment.<\/span><\/p><p><span style=\"font-weight: 400;\">Most of the business world functions based on this principle, starting from consumer products in supermarkets, through the fashion and cosmetics industries, to service industries like cell phone and cable TV subscriptions, banking, restaurants, hotels, and vacation packages abroad.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">There is obviously a range of prices and varying needs that are fulfilled within the mainstream market, ranging from discount to convenience, but that&#8217;s the basic idea behind it.\u00a0<\/span><\/p><p><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">The profitable pricing method in the mainstream market is based on cost plus a reasonable additional profit. It also considers competitor prices and consumer perception regarding what is a fair price for a specific product or service.<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Attaining and preserving a level of consumer awareness of the brand and active awareness that are effective against the competition.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Building perception of &#8220;it&#8217;s worth it&#8221; (concerning cost) versus need (even regarding experiential products and services like food and recreation) and trying to make it into &#8220;it&#8217;s worth it more than\u2026&#8221; compared to the competition.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Encouraging buying habits and occasional spontaneous purchases In sectors where purchasing is constant or cyclic.<\/span><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8337bca elementor-widget elementor-widget-template\" data-id=\"8337bca\" data-element_type=\"widget\" data-widget_type=\"template.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-template\">\n\t\t\t\t\t<div data-elementor-type=\"section\" data-elementor-id=\"29329\" class=\"elementor elementor-29329\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-486a9019 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"486a9019\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-6ed64254\" data-id=\"6ed64254\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-281ae6ce elementor-widget elementor-widget-image\" data-id=\"281ae6ce\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.22.0 - 24-06-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"20\" height=\"14\" src=\"https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/04\/Group-10466.svg\" class=\"attachment-full size-full wp-image-28055\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4dc8e19 elementor-widget elementor-widget-heading\" data-id=\"4dc8e19\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.22.0 - 24-06-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><p class=\"elementor-heading-title elementor-size-default\">In marketing and branding strategy, there are three levels of profitability: mainstream, premium, and luxury. Which one best fits your brand?<\/p>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-618a55d2 MicroFont elementor-widget elementor-widget-text-editor\" data-id=\"618a55d2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3>People trust Gold &amp; Diamonds\u00a0<\/h3><p><span style=\"font-weight: 400;\">We worked with a mainstream jewelry brand that set up booths in department stores and malls a few years ago. In a consumer study that focused on the personality types of buyers in the lower-priced market range, we discovered that those buyers would be less decisive about gold and diamond jewelry.\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-36e4e746 elementor-widget elementor-widget-image\" data-id=\"36e4e746\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"640\" height=\"427\" src=\"https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/05\/tyler-nix-fo83GD_AARE-unsplash-scaled-1-1024x683.jpeg\" class=\"attachment-large size-large wp-image-28519\" alt=\"\" srcset=\"https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/05\/tyler-nix-fo83GD_AARE-unsplash-scaled-1-1024x683.jpeg 1024w, https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/05\/tyler-nix-fo83GD_AARE-unsplash-scaled-1-300x200.jpeg 300w, https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/05\/tyler-nix-fo83GD_AARE-unsplash-scaled-1-768x512.jpeg 768w, https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/05\/tyler-nix-fo83GD_AARE-unsplash-scaled-1-1536x1024.jpeg 1536w, https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/05\/tyler-nix-fo83GD_AARE-unsplash-scaled-1-2048x1366.jpeg 2048w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8b74c3a MicroFont elementor-widget elementor-widget-text-editor\" data-id=\"8b74c3a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">To build that &#8220;it&#8217;s worth it&#8221; perception, we communicated proof and support in various ways that the gold was pure and the diamonds were real.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">It affected the sales so dramatically that the company began to expand into its own chain of independent stores successfully. The mainstream market is based on availability, accessibility, and convenience. It utilizes tools like advertising, having a significant presence on social media, including utilizing the reach of existing influencers, promotional sales, and loyalty programs (which are sometimes exaggeratedly referred to as &#8220;Customer Clubs&#8221;).<\/span><\/p><h2>The second level of profitability: premium marketing strategy<\/h2><p><span style=\"font-weight: 400;\">Premium marketing offers the highest level of functional usability and something additional, which I will touch upon later on. But, first and foremost, a premium product or service provides:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The best quality or performance.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Innovation (ahead of all the other players in the industry).<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An optimal customer experience.<\/span><\/li><\/ul><p>A well-defined marketing strategy is essential for premium brands to highlight these unique attributes and position themselves effectively in the market.<\/p><p><span style=\"font-weight: 400;\">A premium brand is a high standard that is readily accessible for all those willing and able to pay its premium price. Most product and service industries have a premium level. Take the world of wine, for example; the relatively expensive wines in the supermarket are the starting level of premium, which extends further to specialty wine stores, which offer a more extensive selection of premium wines.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Such stores are retail stores that specialize in premium products, just like specialty pastry shops, among plenty of other examples. Airline companies have a business class. Banks have memberships for affluent clients. Hotels have specialty suites, and many hotel chains have separate premium-level hotels. Real estate brokers specialize in premium residences, though many of them refer to it as &#8216;luxury&#8217;.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">I would dare say that the vast majority of the above, generally referred to as luxury products and services \u2013 are actually premium products.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">There are mainstream brands with high-end premium products or services (like Lufthansa). And there are big premium brands owned by companies that offer mainstream products or services (such as Lexus, which Toyota owns) or companies that specialize in premium (like Bulthaup).<\/span><\/p><p><span style=\"font-weight: 400;\">Premium brands benefit from luxury, but it&#8217;s important to distinguish that they aren&#8217;t luxury brands but brands that offer luxury. This distinction is important because brands (including people) may have an element of prestige on various levels \u2013 professional, academic, religious, political, artistic, etc. \u2013 without actually being luxury brands.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Thanks to innovation, though not in its merit alone, premium brands are distinct. Many premium brands invest effort in creating a methodical difference between themselves and their competitors through various approaches. Their distinction is a central component in building that sense of desirability and preference that justifies its prices.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3a4afd22 MicroFont elementor-widget elementor-widget-text-editor\" data-id=\"3a4afd22\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3>The Golden Olive Oil<\/h3><p><span style=\"font-weight: 400;\">The brand Golden Products was recently launched by Kristjan Podgornik, the son of an art dealer. The brand offers a variety of specialty products.<\/span><\/p><p><span style=\"font-weight: 400;\">The first product they offered for sale was a highly refined organic oil manufactured from supreme olive trees in Slovenia and enriched with 24 karat gold leaves. In recent years, the brand built its reputation in highly rated Michelin-starred restaurants and now offers it to the general public in an elegant 200ml bottle that carries a price tag of $265.<\/span><\/p><p><span style=\"font-weight: 400;\">If you think that this is the most expensive bottle of olive oil, I suggest you check out Golden Olive Oil, which offers a similar Croatian product for 1,000 Euros.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-29e4ea28 elementor-widget elementor-widget-image\" data-id=\"29e4ea28\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"640\" height=\"400\" src=\"https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/05\/golden-olive-oil--1024x640.jpeg\" class=\"attachment-large size-large wp-image-28520\" alt=\"\" srcset=\"https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/05\/golden-olive-oil--1024x640.jpeg 1024w, https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/05\/golden-olive-oil--300x188.jpeg 300w, https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/05\/golden-olive-oil--768x480.jpeg 768w, https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/05\/golden-olive-oil--1536x960.jpeg 1536w, https:\/\/www.adcore.com\/blog\/wp-content\/uploads\/2022\/05\/golden-olive-oil-.jpeg 1920w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-77319fa8 MicroFont elementor-widget elementor-widget-text-editor\" data-id=\"77319fa8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Source: <a href=\"https:\/\/www.goldenproducts.eu\/\" target=\"_blank\" rel=\"noopener\">Golden Products<\/a><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7eadef9d MicroFont elementor-widget elementor-widget-text-editor\" data-id=\"7eadef9d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The pricing method in the premium market is similar to that of the mainstream market, with a significant difference \u2013 there is a greater profit margin. The customer pays a &#8220;premium price&#8221; and lauds the company for its uniqueness, excellence, innovation, and added value that many premium brands offer their customers on a psychological-emotional level, experiential level, and social level.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Premium-brand customers usually indulge themselves and see their purchase as an expression of their financial standing, a reward for their achievements, and above all else \u2013 an expression of their identity.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Frequently, they also get held in high esteem by those around them. As a result, premium brands are &#8220;status symbols&#8221; that are more common than luxury brands.<\/span><\/p><p><span style=\"font-weight: 400;\">The premium market is usually less conditional on tight competition than the mainstream market. However, it puts more emphasis on a higher level of specialization, and its main challenges are:<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reaching the right customers who want to acquire premium brands and are ready to pay the price.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Demonstrating that sense that a brand is at a premium among prospective customers.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Building the prestige that is based on preferential distinction and practicality<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Establishing desirability of the brand on the one hand and justifying its prices on the other hand.<\/span><\/li><\/ul><h4><b>The &#8220;flipping&#8221; strategy\u00a0<\/b><\/h4><p><span style=\"font-weight: 400;\">One of our customers represents US companies in Israel. They specialize in acquiring high-end real estate properties in desirable areas for investors. These properties are sold in closed auctions and conducted in courtrooms.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Participating in the auctions requires a special legal status and a high level of skill since the acquisition offers are made without showing the actual property (though all of the information about it is provided). The auction is concluded within 30 minutes, and the properties are acquired at about 30% under their market prices.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">After the acquisition, the US companies offer their management services to rent out the property or put it up for sale. Following our advice, our customer decided to set himself apart by focusing on one marketing strategy when working with investors, among various other strategies that the US companies offered: The &#8220;flipping&#8221; strategy.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">With this strategy, the acquired property is always put up for sale right after being renovated or upgraded. The return on it and the capital are then used to purchase another property. This strategy allows for a great return on investment in very solid real estate transactions.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p><h4><b>A premium heart\u00a0<\/b><\/h4><p><span style=\"font-weight: 400;\">In the heart of the premium market, a lot of resources are invested in building up the perception of high value, which, in the eyes of customers, justifies not only the price but also the additional effort, among other things, to get to the locations where the specialty products are sold.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The premium market utilizes promotional product launches, events, and PR campaigns to build and manage its prospective clientele base. In addition, it uses sophisticated in-depth presentation tactics in its advertising to create a perception of higher value.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">It Utilizes unique and selective brand marketing while offering the customer a gift along with their purchase rather than offering a discount on the purchase itself.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">On the other hand, the luxury market is almost above the competition and requires an exceptionally high level of expertise.\u00a0<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ec63ea6 elementor-widget elementor-widget-template\" data-id=\"ec63ea6\" data-element_type=\"widget\" data-widget_type=\"template.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-template\">\n\t\t\t\t\t<div data-elementor-type=\"section\" data-elementor-id=\"29332\" class=\"elementor elementor-29332\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6c9eca04 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6c9eca04\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4798cb28\" data-id=\"4798cb28\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-65cc919a elementor-hidden-desktop elementor-widget elementor-widget-shortcode\" data-id=\"65cc919a\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-shortcode\">\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f28319-o1\" lang=\"en-US\" dir=\"ltr\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/blog\/wp-json\/wp\/v2\/posts\/28516#wpcf7-f28319-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<div style=\"display: none;\">\n<input type=\"hidden\" name=\"_wpcf7\" value=\"28319\" \/>\n<input type=\"hidden\" name=\"_wpcf7_version\" value=\"5.9.6\" \/>\n<input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/>\n<input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f28319-o1\" \/>\n<input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/>\n<input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/div>\n<div class=\"yos mobile\">\n\t<div class=\"post-contact\">\n\t\t<p class=\"title\">Get exclusive CMO tips that I only share with email subscribers.\n\t\t<\/p>\n\t\t<div class=\"form-item\">\n\t\t\t<p class=\"input\"><span class=\"wpcf7-form-control-wrap\" data-name=\"email-001\"><input size=\"40\" maxlength=\"80\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Email address\" value=\"\" type=\"email\" name=\"email-001\" \/><\/span>\n\t\t\t<\/p>\n\t\t\t<p class=\"send\"><input class=\"wpcf7-form-control wpcf7-submit has-spinner\" type=\"submit\" value=\"SUBSCRIBE\" \/>\n\t\t\t<\/p>\n\t\t<\/div>\n\t\t<p class=\"yos-img\"><img decoding=\"async\" src=\"\/blog\/wp-content\/uploads\/2022\/05\/NEW_YOS.png\" \/>\n\t\t<\/p>\n\t<\/div>\n<\/div><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5f5178a MicroFont elementor-widget elementor-widget-text-editor\" data-id=\"5f5178a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h2>The third level of profitability: The luxury marketing strategy<span style=\"font-weight: 400;\">\u00a0<\/span><\/h2><p><span style=\"font-weight: 400;\">The luxury market offers exceptionally high value, rarity, uniqueness, and a remarkable experience for its customers. The product or service within the luxurious category isn&#8217;t necessarily the most premium. It doesn&#8217;t always provide the highest level of quality and functionality, an innovation that is ahead of all the players in the industry, or the most optimal customer experience \u2013 though in many cases, it does.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">How do you define luxury product? A luxury product or service is characterized by its being special and magnificent, much more so than functional. It provides elated pleasure, an experience of being elevated and reaching the peaks of human talent and capability.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">It has such a nature that translates to a unique and distinct customer experience, even if that experience may not be optimal. It doesn&#8217;t necessarily provide the customers with what they want but instead invites them for an adventure of its own creation.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">A luxury brand engages its customers in dialogue for years to come, customers who have intense expectations for it. So it is always on a mission to surprise them, move them emotionally, and please them.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-729d3dbc MicroFont elementor-widget elementor-widget-text-editor\" data-id=\"729d3dbc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3>The case of Mercedes&#8217; baby strollers<\/h3><p><span style=\"font-weight: 400;\">Mercedes recently launched a line of four baby strollers developed in collaboration with the stroller company Hartan. Together with a matching case for diapers, the strollers allow the babies to experience a ride in Mercedes.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Each one of the models is based on an existing model within the brand. Its characteristics include a leather seat with a button for adjusting the height, with the seat facing forward or backward towards the parent pushing the stroller.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">It&#8217;s equipped with a padded shoulder seatbelt, a sunroof that opens and closes, tires and axles that allow for a smooth ride in any kind of terrain, a brake mechanism, a parking brake, and more. The strollers come in black and graphite and show off a sporty design that is elegant and practical. Its price tag: $1,000.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-53f172ee elementor-widget elementor-widget-video\" data-id=\"53f172ee\" data-element_type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/www.youtube.com\\\/watch?v=jFcoucKQL-w&amp;t=107s&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.22.0 - 24-06-2024 *\/\n.elementor-widget-video .elementor-widget-container{overflow:hidden;transform:translateZ(0)}.elementor-widget-video .elementor-wrapper{aspect-ratio:var(--video-aspect-ratio)}.elementor-widget-video .elementor-wrapper iframe,.elementor-widget-video .elementor-wrapper video{height:100%;width:100%;display:flex;border:none;background-color:#000}@supports not (aspect-ratio:1\/1){.elementor-widget-video .elementor-wrapper{position:relative;overflow:hidden;height:0;padding-bottom:calc(100% \/ var(--video-aspect-ratio))}.elementor-widget-video .elementor-wrapper iframe,.elementor-widget-video .elementor-wrapper video{position:absolute;top:0;right:0;bottom:0;left:0}}.elementor-widget-video .elementor-open-inline .elementor-custom-embed-image-overlay{position:absolute;top:0;right:0;bottom:0;left:0;background-size:cover;background-position:50%}.elementor-widget-video .elementor-custom-embed-image-overlay{cursor:pointer;text-align:center}.elementor-widget-video .elementor-custom-embed-image-overlay:hover .elementor-custom-embed-play i{opacity:1}.elementor-widget-video .elementor-custom-embed-image-overlay img{display:block;width:100%;aspect-ratio:var(--video-aspect-ratio);-o-object-fit:cover;object-fit:cover;-o-object-position:center center;object-position:center center}@supports not (aspect-ratio:1\/1){.elementor-widget-video .elementor-custom-embed-image-overlay{position:relative;overflow:hidden;height:0;padding-bottom:calc(100% \/ var(--video-aspect-ratio))}.elementor-widget-video .elementor-custom-embed-image-overlay img{position:absolute;top:0;right:0;bottom:0;left:0}}.elementor-widget-video .e-hosted-video .elementor-video{-o-object-fit:cover;object-fit:cover}.e-con-inner>.elementor-widget-video,.e-con>.elementor-widget-video{width:var(--container-widget-width);--flex-grow:var(--container-widget-flex-grow)}<\/style>\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3070d252 MicroFont elementor-widget elementor-widget-text-editor\" data-id=\"3070d252\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Luxury brands are usually exclusively luxury brands, and only in some cases do they market premium products and services at a lower price point.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The pricing method in the luxury market is completely separate from manufacturing and marketing costs (think of luxury watches, for example). One can refer to it as: &#8220;How much a customer is willing to pay.&#8221;\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The price of a luxury brand is primarily based on experiential, psychological-emotional, and social value \u2013 which is far greater than the functional value of the product itself.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The brand&#8217;s desirability leads to such that you may often come across auctions in the luxury market, or in other words: customers competing with each other over who gets the product or service which, characteristically, is offered in limited quantities and oftentimes requires a long waiting period. For instance, the waiting period for a Hermes Birkin bag is six years.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The luxury market is almost entirely above the competition, thanks to the distinction of luxury brands. However, it requires the highest level of expertise to reach such a level. <\/span><\/p><h4><strong>Luxury market &#8211; primary challenges:<\/strong><\/h4><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Managing the brand&#8217;s level of exposure with the approach of &#8220;many want it, but few can buy it,&#8221; or &#8220;only those who need to know about it \u2013 will know about it,&#8221; according to the brand&#8217;s strategy.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reaching the right clientele, who are few and not easily accessible, especially staying relevant and maintaining a relationship with those customers for an extended period.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Continually managing its customers&#8217; emotions.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Building exceptionally high value that is experiential, psychological-emotional, or social according to the brand&#8217;s strategy, and in doing so, creating a great sense of desirability for the brand.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Creating and maintaining the &#8220;brand&#8217;s trance&#8221; is a sort of captivation the brand has over its customers.<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">The luxury market &#8220;allows its customers to buy&#8221; rather than puts effort into selling. Its rules are mostly the entire opposite of those of the mainstream market.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">In doing so, it limits and filters accessibility. Alongside some of the tools of the premium market, the luxury market utilizes gossip and rumors, stirring up the thirst for &#8220;experiences that money can&#8217;t buy&#8221; for an exclusive clientele base via in-depth content through media whose creativity is an art form in itself.<\/span><\/p><h3><b>What level of profitability do you want?<\/b><\/h3><p><span style=\"font-weight: 400;\">&#8220;Only luxury affords us luxury profits,&#8221; said Bernard Arnault, CEO of LVMH and the third wealthiest person in the world according to Forbes Magazine. But you are welcome to choose the level of profitability that you want to attain for yourselves and match it up accordingly with its suitable marketing level.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3b9219b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3b9219b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f5cacd2\" data-id=\"f5cacd2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-dc66dc2 elementor-widget elementor-widget-text-editor\" data-id=\"dc66dc2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The article was authored by Dr. Dan Herman, a renowned strategist and expert in creating high brand value. Dr. Herman is the CEO of Competitive Advantages, a leading agency providing comprehensive strategy, innovation, marketing, and branding consultation services. For more information or to get in touch with Dr. Dan Herman, please visit his website at\u00a0<a class=\"c-link c-link--underline\" href=\"http:\/\/www.danherman.co.il\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-stringify-link=\"http:\/\/www.danherman.co.il\" data-sk=\"tooltip_parent\">www.danherman.co.il<\/a>.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Everyone in the business world knows that there are two ways to make money: Selling to many customers at a relatively low price or selling to a smaller clientele base at a high price \u2013 everything according to the industry&#8230;<\/p>\n","protected":false},"author":21,"featured_media":30996,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[{"category_link":"https:\/\/www.adcore.com\/blog\/marketing\/","category_name":"Marketing"},{"category_link":"https:\/\/www.adcore.com\/blog\/all\/","category_name":"All"},{"category_link":"https:\/\/www.adcore.com\/blog\/marketing\/research\/","category_name":"Research"}],"tags":[],"authors":[269],"article_types":[179],"staff_picks":[102],"promotions":[418],"class_list":["post-28516","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing","category-all","category-research","authors-dan-herman","article_types-articles","staff_picks-staff-pick","promotions-push"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/posts\/28516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/comments?post=28516"}],"version-history":[{"count":67,"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/posts\/28516\/revisions"}],"predecessor-version":[{"id":43260,"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/posts\/28516\/revisions\/43260"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/media\/30996"}],"wp:attachment":[{"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/media?parent=28516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/categories?post=28516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/tags?post=28516"},{"taxonomy":"authors","embeddable":true,"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/authors?post=28516"},{"taxonomy":"article_types","embeddable":true,"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/article_types?post=28516"},{"taxonomy":"staff_picks","embeddable":true,"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/staff_picks?post=28516"},{"taxonomy":"promotions","embeddable":true,"href":"https:\/\/www.adcore.com\/blog\/wp-json\/wp\/v2\/promotions?post=28516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}