Exploring â€˜Luxury Brand Managementâ€™ as a Separate Area of Study
The ever-increasing income levels across the globe have given an impetus to the luxury segment, giving rise to a variety of career opportunities. The theories that govern marketing and consumer behaviour in luxury management need to be different from other forms of marketing due to the distinct characteristics that define luxury. Much of extant marketing literature base their analyses and models on non-luxury brands, as a result of which, it has so far little relevance for luxury brands. This approach permeates through management education, rendering management graduates ill prepared for a career in the luxury industry. This paper explores the uniqueness in the concept of luxury and traces the origins of its specificities, from which one may discern the â€˜anti-lawsâ€™ of marketing that apply to luxury management. This concept paper identifies four distinct ways in which luxury management differs from other forms of brand management, namely in terms of a) Positioning and brand image: While regular brands strive to occupy â€˜unoccupiedâ€™ market positions, luxury brands are expected to make competition irrelevant; b) Customer relationship management: The all-pervading â€˜customer is kingâ€™ thought process cannot be directly applicable to luxury, wherein luxury brands need to indulge the customers and yet be aloof; c) The role of advertising: Luxury advertising aims to create aspirations rather than increase sales and the target audience goes far beyond its target market and d) Price and demand: Contrary to traditional economic theories, a higher price is expected to increase the demand for luxury brands.
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