This textbook discusses luxury marketing management, considering the broader range of decisions related to the complexities of offering luxury as services. Placing a strong emphasis on strategy as well as positioning and the market, it focuses on the challenges in luxury related to the traditional 4 Ps (Products, Place, Promotion and Price), in addition applying the service-dominant logic to luxury management in relation to the other 4 Ps in marketing decisions (People, Process, Panorama, and Productivity).
The text opens with an exploration the history and evolution of the concept and definition of luxury and the effect upon the practice of luxury marketing today, concluding with an overview of the contemporary luxury market, description of the main players, and relevant industry trends. It then discusses marketing strategies as applied to the luxury market, including market identification, brand communication, product positioning, pricing, flow of goods, foreign market entry, and more.
With contributions from luxury marketing practitioners to offer practical knowledge as well as real world cases studies, this textbook will equip students with a comprehensive understanding of marketing in the luxury industry and the tools necessary to be successful in the management of luxury brands.
Author(s): Miguel Angelo Hemzo
Publisher: Palgrave Macmillan
Year: 2023
Language: English
Pages: 218
City: Cham
Foreword
Introduction
Contents
About the Author
List of Figures
List of Tables
1 History and Concept of Luxury
1.1 Introduction
1.2 A Brief History of Luxury
1.2.1 The Era of Magic
1.2.2 The Era of Power
1.2.3 The Era of Success
1.2.4 The Era of Individualism
1.3 The Concept of Luxury
1.4 Evolution of Consumption of Luxury
1.5 Summary
Bibliography
2 The Luxury Market
2.1 Introduction
2.2 Pré-COVID-19
2.2.1 Market Numbers
2.2.2 Players
2.3 Post-COVID-19
2.3.1 Financial Impacts
2.3.2 Digitalization Impacts
2.3.3 Behavioral Impacts
2.3.4 Category Consumption Impacts
2.3.5 Managerial Decisions Impacts
2.3.6 Managerial Opportunities and Dilemmas
2.4 Summary
Bibliography
3 Luxury Market and the Service-Dominant Logic Paradigm
3.1 Introduction
3.2 The Evolution of Marketing and Service-Dominant Logic Paradigm
3.3 Luxury Services
3.4 Summary
Bibliography
4 How to Position a Luxury Product
4.1 Introduction
4.2 How to Convince Clients that Your Brand Has a Valuable Differentiation
4.3 Positioning Communication Strategies
4.4 Other Elements of the Marketing Mix also Position the Brand
4.5 Some Differences When Positioning Luxury Products
4.6 Positioning in the Luxury Cars Segment
4.7 Summary
Bibliography
5 Luxury Consumer Behavior
5.1 Introduction
5.2 Consumer Behavior
5.2.1 Personal Factors Influencing Consumer Behavior
5.2.2 Psychological Factors Influencing Consumption Behavior
5.2.3 Social Factors Influencing Consumer Behavior
5.2.4 Cultural Factors Influencing Consumption Behavior
5.3 Consumer Decision-Making Processes
5.3.1 Problem Recognition
5.3.2 Information Search
5.3.3 Alternatives Evaluation
5.3.4 Purchase Decision
5.3.5 Post-Purchase Behavior
5.3.6 Decision-Making in Luxury
5.4 Summary
Bibliography
6 Defining the Persona: Segmentation and Targeting
6.1 Introduction
6.2 Targeting, Evaluating, and Selecting
6.3 Why Target Segments and Not Attend the Whole Market
6.4 How to Segment Consumer Markets
6.4.1 Geographical Segmentation
6.4.2 Demographic Segmentation
6.4.3 Psychographic Segmentation
6.4.4 Behavioral Segmentation
6.4.5 Media Usage Segmentation
6.5 Criteria to Evaluate Potential Targets
6.6 How to Evaluate and Select Targets
6.6.1 Target Market Valuation
6.6.2 Target Market Selection
6.7 Luxury Segmentation
6.8 Summary
Bibliography
7 Developing Strong Luxury Brands for Products and Services
7.1 Introduction
7.2 Creating Strong Brands
7.3 Creating Brand Equity
7.4 Evaluating Brand Equity
7.4.1 BRANDASSET VALUATOR
7.4.2 BRANDZ
7.4.3 Brand Resonance
7.4.4 Brand Equity Boosters
7.5 Developing the Brand Elements
7.6 Internal Branding
7.7 Measuring Your Brand Equity
7.8 Managing Brand Equity
7.9 Branding Strategies
7.10 Brand Extensions
7.11 Brand Portfolio Management
7.12 Luxury Branding Strategies
7.13 Summary
Bibliography
8 Creating Competitive Products
8.1 Introduction
8.2 Defining Product Strategy
8.2.1 Product Levels
8.2.2 Product Classification
8.2.3 Product Differentiation
8.3 Product Lifecycle Management
8.4 Product Line Management
8.4.1 Categorization of Product Lines
8.4.2 Evaluation of Product Lines
8.5 Product Mix Pricing Strategies
8.6 Co-Branding
8.7 Packing
8.8 Labeling
8.9 Competitive Products in Luxury
8.10 Summary
Bibliography
9 Place Strategies for Luxury Brands
9.1 Introduction
9.2 Channels
9.3 Channels and Value
9.4 Marketing Channels
9.4.1 Marketing Channel Systems
9.4.2 Hybrid Channels
9.4.3 Channel Levels
9.4.4 Channel Design
9.4.5 Channel Management
9.4.6 Integration of Channel Systems
9.4.7 Channel Conflict, Cooperation, and Competition
9.5 Success Factors in Ecommerce
9.6 Marketing Channel Strategies for Intermediaries
9.7 Retail
9.7.1 Shopping Center
9.7.2 Wholesale
9.7.3 Logistics
9.8 Location Decisions
9.9 Luxury Channels Strategies
9.10 Summary
Bibliography
10 Managing Pricing and Value of Luxury Brands
10.1 Introduction
10.2 The Strategic Importance of Pricing
10.3 Who Determines Prices in the Company
10.4 The Pricing Process
10.4.1 Selection of the Price Determination Objective
10.4.2 Demand Determination
10.4.3 Cost Estimate
10.4.4 Analysis of Competitors’ Costs, Prices, and Offers
10.4.5 Selection of a Pricing Method
10.4.6 Selection of Final Price
10.5 Tactical Pricing Decisions
10.5.1 Geographic Price
10.5.2 Discounted Prices and Promotions
10.5.3 Promotional Price
10.6 Pricing Strategies in Luxury Markets
10.7 Summary
Bibliography
11 Communication Strategies and Tools for Luxury Brands
11.1 Introduction
11.2 Integrated Marketing Communication
11.2.1 Marketing Communication
11.2.2 Steps for the Development of Effective Communication
11.2.3 Selection of Communication Channels
11.2.4 Budget Establishment
11.2.5 Decision on the Communication Mix
11.2.6 Measurement of Communication Results
11.2.7 Integrated Marketing Communication Management
11.2.8 Creative Communication Strategies
11.3 Mass Communication
11.3.1 Advertising
11.3.2 Sales Promotion
11.3.3 Events and Experiences
11.3.4 Public Relations
11.4 Personal Communication
11.4.1 Direct Marketing
11.4.2 Interactive Marketing
11.4.3 Tips for Creating Effective Websites
11.4.4 Word-of-Mouth Communication
11.4.5 Personal Sales
11.5 Communication Strategies in Luxury
11.6 Summary
Bibliography
12 Managing People for the Luxury Market
12.1 Introduction
12.2 Managing People
12.3 Recruiting
12.4 Selecting
12.5 Training
12.6 Motivating
12.7 Evaluating
12.8 Dismissing
12.9 Managing People in Luxury
12.10 Summary
Bibliography
13 Process Management and Operations for Luxury Brands
13.1 Introduction
13.2 The Importance of Process Management
13.3 Process Mapping Techniques
13.3.1 Flowcharts
13.3.2 Blueprints
13.3.3 Consumer Journey
13.4 Process Analysis
13.5 Failure Analysis
13.6 Delay Analysis
13.7 Process Reengineering
13.8 Managing Processes in Luxury
13.9 Summary
Bibliography
14 Managing the Luxury Panorama for Great Experiences
14.1 Introduction
14.2 Managing the Panorama
14.2.1 Sensory Stimuli
14.2.2 Layout, Space, and Circulation
14.2.3 Visual Communication Signs
14.2.4 Psychological and Sociological Interaction
14.2.5 ePanorama
14.2.6 Phygital
14.2.7 Experiential Retail
14.3 Managing the Panorama in Luxury
14.3.1 Luxury Panorama and Positioning
14.3.2 Luxury Panorama and the Internet
14.3.3 Luxury Panorama and Flagships
14.4 Summary
Bibliography
15 Strategical Satisfaction Management
15.1 Introduction
15.2 Avoiding Tragic Experiences, Creating Magic Experiences
15.3 Resources and Productivity
15.4 Pre-service
15.4.1 Information
15.4.2 Customer Experience (CX)
15.5 Service
15.5.1 User Experience (UX)
15.5.2 The Seven Steps to Great Servicing
15.5.3 Expectations and Experiences
15.6 Post-service
15.6.1 Recovering Insatisfaction
15.6.2 Managing Satisfaction and Relationship
15.7 Loyalty
15.8 Measuring Fidelity and Loyalty
15.9 Managing Strategic Satisfaction in Luxury
15.10 Summary
Bibliography
16 Culture and Leadership
16.1 Introduction
16.2 The New Paradigm of Services and Cultural Changes
16.3 Leadership in Luxury
16.4 Summary
Bibliography
Index
