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Ads Don't Drive Luxury Sales, Reputation Does

November 22, 2005

Advertisements don’t drive luxury sales or create desire, according to Pamela N. Danziger, president of Unity Marketing, Stevens, PA. Ads may build brand awareness, but with the advent of TIVO and remote controls, consumers tend to skip television commercials. Also, most magazines are bought for their editorial content, not ads. Ms. Danziger insists there is a subtle interplay among three influencal factors: product brand, dealer or store’s reputation and price/value relationship.
For example, Ralph Lauren created contexts or “worlds” that customers can buy into, explained Polo Ralph Lauren’s Jeffrey Morgan. “We try to understand the worlds, create the worlds, communicate the worlds, and develop exciting products that fit into those worlds,” he said.
Ms. Danziger will launch her latest book, “Let them eat cake: marketing luxury to the masses—as well as the classes” in January. More info: www.unitymarketingonline.com.
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