Week Four EOC: Discussion Questions

Chapter Four

Explain the social element of luxury and explore how this concept relates to some of the challenges facing luxury brands, such as counterfeiting and parallel markets.

Since the beginning luxury has been an identifier of social status, it defined aristocracy and royalty and it was easily identified as how fast wealth spread. Luxury has mostly always been identified as good craftsmanship and high quality it is why up until the 19th century, luxury was identified as custom made. Luxury brands have been described as "brands that no one really needs, but everyone desires" (Hameide, 111). A luxury brand is associated with social elements like wealth, success, sophistication and so on. Part of the social element of having others perceive and appreciate your purchase as well. Counterfeiting  comes with the territory of a luxury brand, because they are so high in demand their exclusivity and high price points make it impossible to be purchased for the mass-market thus creating counterfeits at affordable prices but not with the same value and quality.  Parallel markets or grey markets are items that are are originally purchased to later be sold in a different market usually at higher prices.

What is the meaning of a lifestyle brand? Why are most luxury brands described as such?

A lifestyle brand is a brand produced by marketing different products within the same brand that can range from apparel to jewelry and perfumes. "Lifestyle brands rely on an enormous marketing machine to establish a convincing story and an identity strong enough to overcome the need for a historical reference" (116) . They lack the history and craftsmanship that a luxury brand was founded on as well as the heritage of the lifestyle from those times. A lifestyle brand is a brand that promotes a certain lifestyle and many luxury brands promote a wealthy lifestyle.

Explain how luxury brands seem to defy traditional marketing principles.

Luxury brands defy traditional marketing principles in many ways for instance they aim at a higher price point not only for the cost of the manufacturing process but to maintain an exclusivity in the market. Luxury brands are not meant to satisfy needs but to try and shape them. They are expected to be harder to acquire and purchased from the market, they are not mass-marketed. A luxury brand will never advertise sales and promotion but to promote the lifestyle instead of the product and its price. "The role of advertising is totally different. There is usually no sales proposal in luxury advertising. It is usually minimalist with a photo and logo and not much to say. Even more interesting, most of the ads may not be really targeting the luxury customer who is already aware of the brand, its products, and where to find it. In many ways, these ads target the “others” who are meant to be aware of the brand—even if they cannot afford it" (150).