Why do some famous brands still need advertisement?
I mean brands like Hermes, Chanel, Gucci or other brands that are considered “luxury”.
I see ads for them but I just dont see the point? People are obsessed with them and sees them as proof for their status and they make crazy money so why the need for ads?
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“New” customers enter the market place all the time.
Poor people produce wealthy next generation
Youth become adults
The power of your competitors advertising will suck business away too
Why do you think there are people who associate them with money and status?
Because they advertise and *continue to advertise*
Reinforcing a brand identity is still a valid form of advertising.
What sounds better, “yeah Nike sponsored a bunch of athletes in the 90s but I haven’t seen anything sense” or “Nike sponsored the last Olympic team”
Other competitors can also enter the market and challenge it.
There’s also new consumers being added to the market, or people who straight up don’t know what it is already.
Also maintaining status over time. Cartier started in the 1800s. What’s the play if they only advertised to people then, made their status, and just said “yeah it’s k people already know” and then literally everyone they advertised to died because it was over 100 years ago?
Because they could eventually become less relevant if they didn’t.
Advertising isn’t just about making people aware of a product or service for the first time; it’s also about making sure people continue to recognize and remember the brand in the long run.
The main point of advertising is to make absolutely sure they are the first brand in your mind when you are shopping
What you have just done is you have listed the “consideration set” for luxury brands — advertisers and marketers want to know the brands you are listing off he top of your head, and in what order, to know exactly what brand has the best association with the category, and what brands you are aware of
By doing advertising, the brand becomes more recent and your memory is more fresh, so it gets pushed to the top of your consideration set — ie most likely you will now list that brand that is advertising FIRST
Hermes, Chanel, Gucci among others know you already know them, but that’s not good enough. If you want a luxury experience, and you think of Burberry first instead, you might go there. But if you think Hermes first, you’re more likely to go there
It lets people know they have new products. You can’t sell something people didn’t know was available. It’s not like all the rich people are telepathically made aware of new products in the catalog.
And if the ad is just a brand ad, then it tells those rich people, hey we exist, and that reminds them to check out the store and see if there’s anything new or something they can put their money into, or even have something repaired or serviced, which can also lead to sales outside the door.
For the rest of the people, it’s to keep them as aspirational brands. Even if some of these brands will spit you out the door if they think you’re poor, it still does two things:
1. reinforce the aspirational aspect of the brand such that people with little money would be willing to part with most of it just for their brand, and
2. continually position themselves as a luxury brand and communicate the significance of that to the general public. If a brand is completely exclusive, and the general public doesn’t know that it’s an expensive or luxury brand, then they won’t consider it luxury and just go “who/what the fuck is that and why did you pay so much for it?”
Need is iffy… so with those fashion brands they are often just doing awareness campaigns and will intensify as they get closer to the end of the year since holiday can be a big deal. You know it’s holiday shopping season when you start seeing fragrance ads on television.
Now the real question… why do utilities need to advertise beyond 811/digging/Emergency messaging?
Coke should stop advertising for one month. That’s gotta be millions in savings. Nobody ever switched from Coke to Pepsi because of ads.
I really don’t know, because I stopped paying attention to advertisements (other than movie trailers) back in the late ’80s. I do know that nobody wants to be the next Ipana toothpaste, whose demise is largely blamed on the fact that Bristol-Myers Squibb stopped advertising it in favor of more advertising for its pharmaceuticals.
Companies are constantly fighting for market share. Nike might be popular, having about 40% of the market, but if they stop advertising they will start to lose that market share rather than gain more which is what they want to try to do. These brands have to constantly change, their products, styles, logos, everything needs to constantly move or people get bored of it. After the brands make the change, they have to put out ads showing everything all the ‘new stuff’ they have now.
Someone asked the head of Coca Cola once. He explained that every day people are born, people grow up, people die. So every day they lose customers. They advertise to build new customers to replace them.
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