Marketing of Luxury Goods

Cupid and Psyche: Marketers must “delve deep” to know their clients

Isaac Mostovicz writes that regardless of what marketing discipline they advocate, marketers must try to understand their customers' inner motivations ...

People sometimes ask me what is so special about Janus Thinking. In my previous blog, I positioned myself as operating within the qualitative research field. We cannot expect people to be fully aware of their deepest, most hidden motivations. Even when they are, not many would be able to express themselves in a coherent way. That’s why people use metaphors when discussing these motivations. For example, a customer called us and asked us to visit him. When we agreed upon a date he asked us whether we were going to offer his staff some training. However, when we asked him what issues he wanted us to address he said: “With me, it’s different”.  Well, the customer did not invite us to check what his problems were but asked for ”one size fits all” training while telling us that whatever we were going to provide would be rejected because with him “it’s different”. Some psychologists would use this as an example of how irrational human beings are, and criticize such behavior. But we think differently. There was a hidden message within that customer’s request, disguised within an oxymoron, which we needed to discover. Our client simply expressed his concerns in a very precise, yet illogical way. I do not know of any quantitative method which would be able to shows what exactly was on this person’s mind. Only systematic exploration could have revealed what those concerns were.

 

Well, Dichter emulated this approach too and we at Janus Thinking operate in the same manner, with a slight difference. To expand on this, I will explain a little about psychology. It all started with Sigmund Freud, the champion of behavioural psychology, who theorized that we have our preconscious and subconscious which guide us. Our motives are deeply hidden in our psyche and influence our behavior. Freud went on to develop psychotherapy, a dialogue between the therapist and his client to treat diverse psychological distortions. Over the years, different theories emerged and different techniques were introduced. However, all these techniques and theories had one thing in common – you need to delve deep into your client’s psyche if you want to really understand him.

Cupid and Psyche

Dichter was the first to adapt this approach to marketing. The popular maxim in marketing is that people   buy with their heart and attempt to justify their behavior, post-sale, with logical arguments. Dichter explored the first part of the maxim and gave it a scientific basis. However, he did not have the tools to address the second part of the maxim and did not understand the psychology of this logical justification. To understand what lies behind the logical justification we need to explore another branch of psychology, the cognitive one introduced by George Kelly in the 1950’s. Kelly’s theory, the Personal Construct Theory, postulated that “a person’s processes are psychologically channeled by the ways in which he anticipates events.” In other words, we constantly build theories that will arrange the world around us according to our own brand of logic. We see a series of dots and immediately we look for a pattern whether it exists or not. Using Kelly’s work, I was able to find out the way people try to explain their behavior. These justifications have nothing to do with our perceptions but with the format they use. However, understanding the language allows us to read between the lines. Again, one of the most important tools for discovering what lies behind these claims of logic is developing a dialogue with the client.

 

Each approach, whether Dichter or Kelly’s, has its own merit. When dealing in mass marketing, for example, then we actually try to go over the head of the salesperson to have a dialogue with the customer. We may find that in that situation, there is nobody there who is qualified enough to build such a dialogue at all. Things are different in luxury, for example because we mainly deal with our clients face to face. I haven’t met every diamond salesperson on the planet, but after thirty years I can recommend only three who are able to do a good job.

 

Dichter, following the tradition of behavioural psychology, faced an ethical challenge. Behavioural psychologists deal with our ugly hidden secrets that we try to repress. Taking these theories into marketing, there was always a sense of trying to manipulate the customer using sophisticated methods. Since Dichter was aware of this possible negative manipulation he tried in his books to persuade readers that this was not the case.

 

However, are our motives based on these ugly hidden, archaic and primitive motives? I don’t think so. The role of these unchanged, hidden values is to help us find our ultimate goals that are worth pursuing. Such a noble task cannot be based on ugliness and cruelty but on something very pure and beautiful. One man to address this in a professional way was Victor Frankl, the father of Logotherapy whose approach was to search for real meaning in life. Yes, this search puts the responsibility of searching squarely on us. We, as consultants, cannot advise because this takes away the responsibility from our client. Our job is to guide them to face reality, to discover their beauty within and to use it for self-development.

 

The marketing of luxury is a challenge. It is very easy to manipulate people to spend more and more; neuroscientists show that by acting this way we manipulate the region in the brain called Nucleus Accumbens which is responsible for our pleasure and laughter but also for addiction, fear and aggression. However, other areas in the brain can be influenced which are responsible for altruism, for example. As a marketer, understanding this and choosing the right way to use this is key to sales. And it needn’t all be about fear – when we manipulate the positive values of man then we can create through marketing someone whose self-esteem is enhanced, who is more refined, and who cares for the world around him.

Luxury Condos says of this article...

This is an interesting article. With competition so tough these days, marketing of luxury goods, services, and properties is difficult. Understanding the market is tricky but it will definitely help to reach your goals. It can be time consuming but yes, there are great rewards for those who patiently do their homework. Cheers!

Isaac Mostovicz says of this article...

All what counts is whether customers exist. If they do exist a good research will find them, tell you how to communicate with them, what media to use, etc. If you feel that the time is tough maybe it worth changing your strategy a bit?

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Cartier receives student brain gain

Isaac Mostovicz writes that student collaboration creates a win-win situation...

3206038085_f72b32387cLuxury brands such as Cartier, Christian Dior, Hermes, Louis Vuitton and Lalique have all participated in a programme orchestrated by Colombia Business School and Parsons the School of Design. The programme, which is part of a joint interdisciplinary course in Design and Marketing of Luxury Goods, allows students to evaluate brands and present suggestions to top executives. Students also learn about the competitive landscape and customers’ experiences.

Cartier in particular has been keenly absorbing new suggestions from students. It’s paying attention to the future even as it celebrates its 100th birthday this year.

“We have to follow the client, and yes, the client is changing. We’re also trying to pick up future clients.” Frederic de Narp, president and CEO of Cartier North America said in the Washington Times. He added: “We always want to be part of the culture.”

There were indeed several interesting ideas surfacing from the project, and this type of collaboration offers good opportunities to everyone involved: companies access free ‘brain gain’ from fresh minds, whilst students get high-profile experience.

Courtnay Thomas, who participated in the programme, recommended that Cartier create a bridal experience as a way of solidifying its relationship with younger customers. This would involve devoting a specific area in stores to wedding-related jewelry, hosting brunches for couples and even supporting concierge services. All this could encourage customer retention and loyalty. Perhaps not surprising in the current climate, ‘loyalty’ was the general buzzword amongst students.

Student Eloise Kordaris looked at Cartier’s flagship store, suggesting it needs some modernization. Her solution was a spa-like, Zen environment featuring a ‘watch bar’ in the style of a sushi bar. Kordaris found that customers often do research on the internet before coming in to the shop, and therefore often already know what they want to buy – therefore they do not want to spend an afternoon browsing jewelry cases. The watch bar is therefore designed to give customers a more streamlined experience, where they can walk up to the bar and order.

I think it’s interesting that customers want to spend less time in store – in the past, many took great pleasure in the meandering and discovery surrounding a purchase. Stores can control customers’ experiences with the brand when they are in a store in ways that are difficult to do online.

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