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August 14, 2024 E-marketing’s Strategies in the Luxury Industry: A Qualitative Systematic Review

Table Of contents Introduction Aims and Objectives Literature Review Methodology Results Discussion Conclusion References

In luxury sector, Marketing plays great role in influencing consumer purchases Hedonic product benefits differ from utilitarian benefits in that luxury goods are used to reflect a status, identity and for emotional use. Husain et al. (2022) noted, that “luxury items are purchased not only for their functionality but also for signaling purpose and self-fulfillment.” In light of this, luxury brands should show how marketing impacts consumers’ behavior to sustain their exclusivity and market relevance. From the marketing perspective, one can often use the concept of positioning to build a client base of wealthy consumers who are eager to spend money on a limited number of distinctive services and goods. Introduction to E-marketing in the Luxury Industry Introduction

Influence of Marketing Strategies Cultural Context Economic Factors Regional Differences Marketing activities greatly affect consumer decision-making when it comes to premium goods and services in the global market though the effect may differ from one geographical area to another. For instance, in North America, ‘luxury consumer decision making is swayed by social media and digital campaigns where 60% of the consumers fall under this category .’ ( Jin et al., 2021) Cultural contexts play a pivotal role in shaping consumer behavior. In Europe, '70% of buying decisions are motivated by a particular brand history and perceived authenticity,' reflecting a strong appreciation for craftsmanship (Qureshi, 2020) . Economic factors also define marketing effectiveness. Regions with 'higher per-capita disposable income, such as North America and the Middle East, can afford to invest more into high-impact, personalized marketing communication.' Asia, especially China, showcases a unique market where '80% of luxury purchases were digitally influenced,' highlighting the effectiveness of digital and social media marketing strategies. Global Comparison of Marketing's Impact on Consumer Purchase Decisions

Research Objectives Objectives Qualitative Study Analysis Testing E-Marketing Strategies To identify and analyze qualitative studies that explore the role of e-marketing in influencing consumer behavior and purchase decisions among consumers within the luxury sector. To test whether multiple e-marketing strategies, including social media marketing, influencer marketing, and personalized online experiences, are significant in influencing consumer perceptions and purchase decisions. Impact on Brand Loyalty Recommendations for Luxury Brands To identify the influence of e-marketing on brand loyalty and consumer engagement within the luxury industry. To provide recommendations for luxury brands on the best ways to achieve maximum, effective e-marketing strategies, which enhance consumer purchase decisions.

Theoretical Frameworks in Luxury E-marketing Consumer Decision-Making Process Maslow's Hierarchy of Needs Theory of Planned Behavior This process includes stages like problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. In luxury, these stages are influenced by self-actualization and exclusivity. Maslow's Hierarchy indicates luxury consumers seek to satisfy higher-order needs like esteem and self-actualization. Purchases fulfill self-esteem through recognition and self-actualization through personal growth. Purchase intentions are shaped by attitudes, subjective norms, and perceived behavioral control. Beliefs about luxury quality influence attitudes, while social pressures drive purchases and financial capability affects control. Literature Reviw

Marketing Strategies Brand positioning is central to luxury marketing, creating a distinct brand image that differentiates it from competitors. To consumers, luxury brands are associated with culture, craftsmanship, rarity and brilliance. Brand Positioning Emotional branding concentrates on the link between the actual brand and the customer. Luxury craft exerts influence over feelings, and this makes people connect with the brands being sold. Emotional Branding Experiential marketing is the strategy of building events that allows the consumers to connect with a brand. To underline exclusiveness, to create memorable experiences, the luxury brands apply the strategy of using events and pop-up shops for showcasing the products. Experiential Marketing Social media and especially Influencer Marketing have changed the face of luxury marketing. The consumer can engage in the discussion through the social media platform such as Instagram and thus presents direct consumer influence while the influencers play the role as screening agents presenting perception and the managerial control presenting the purchase choice therefore the need for authenticity. Social Media and Influencers Categories of Marketing Strategies

PEO Framework in Luxury E-marketing Research Definition of PEO Framework Application in Research Questions Understanding Consumer Behavior The PEO framework consists of three elements: Population, Exposure, and Outcomes. It is used as a roadmap for formulating research questions within this systematic review; it offers definitions of the key components that are required to incurr this kind of study. In this study, the PEO framework is used to select appropriate articles based on the population of ‘Consumers of luxury brands,’ exposure type of ‘Exposure to e-marketing or digital marketing,’ and the outcome of ‘Changes in purchase decisions or consumer behavior.’ The PEO framework is helpful in explaining how consumers of luxury brands are influenced in their buying behaviour and patterns by exposure to digital marketing so that marketers can fine tune their strategies in a market that is even more saturated. Methodology

Search Strategy and Rationale Systematic Search Strategy Database Selection Search Techniques A systematic search was conducted using electronic databases: Medline, Psycinfo and the web of science in order to source materials effectively. MEDLINE was selected because of its coverage of various biological and social sciences to help with health-related searches, as well as Scopus and Web of Science indexing. Boolean operators (AND, OR) connected search terms, while Medical Subject Headings enhanced the search strategy, ensuring a strong data structure. Methodology

Inclusion and Exclusion Criteria Methodology Population Criteria Exposure Criteria Studies involving consumers of luxury goods or services. Excluding studies that focus on non-luxury consumer goods ensures findings are directly relevant to the luxury sector. Research on the impact of e-marketing, digital marketing, and online marketing strategies is included. Studies focusing on traditional marketing methods only (e.g., print, TV) are excluded. Outcome Criteria Geographical and Language Criteria Inclusion of studies analyzing consumer behavior, purchase decisions, and brand perception in response to e-marketing. Excluding studies not addressing these outcomes maintains focus. No geographical restrictions were applied. Only English-language publications are included, preventing misinterpretation and ensuring replicability.

Identification Screening Eligibility Inclusion A total of 705 studies were identified through literature search and supplementary materials. Out of the identified studies, 587 were removed as duplicates. Therefore, 493 studies were further screened. Titles and abstracts were reviewed, leading to the exclusion of 393 studies based on irrelevant study aims and lack of intervention. After a thorough evaluation, only 10 research papers met the criteria and were included in the systematic review. 705 total studies identified. 587 duplicates removed. 493 studies screened. 393 studies excluded. 10 studies included in the review. PRISMA Flowchart Overview

Brand Positioning and Identity of Luxury Brands Hermès positions its brand through advertisements that convey a sophisticated, high-quality image. The concept of 'hunger marketing' creates an image of limited supply with high demand. Digital platforms enhance the brand image without compromising exclusivity. Hermès: Heritage and Exclusivity Gucci's advertising is characterized by unique graphics and collaborations with top celebrities. The brand curates its social media to represent its values and differentiate from competitors. Strong visuals and celebrity partnerships reinforce Gucci's market position as a luxury leader. Gucci: Innovative Social Media Presence Case Study

Social Media and Digital Marketing Strategies Burberry successfully rebranded as a fashionable, contemporary icon. Creative campaigns revived Burberry's image among digitally savvy youth consumers. Social media strategies at the core led to significant revenue increases and market presence. Burberry's Transformation through Social Media Prada focused on integrating digital channels for a seamless customer experience. Emphasized product innovation and digital engagement for brand growth. Growth in digital channels reflected improved profitability and consumer engagement. Prada's Digital Integration Marketing Analysis

Husain, R., Ahmad, A. & Khan, B. M. (2022) The role of status consumption and brand equity: A comparative study of the marketing of Indian luxury brands by traditional and social-media. Bekar , G. (2016). Impacts of luxury fashion brand’s social media marketing on purchase intention in Turkey: A comparative study on Louis Vuitton and Chanel. Eastern Mediterranean University (EMU)- Doğu Akdeniz Üniversitesi (DAÜ). Gekombe , C., Tumsifu , E. & Jani , D. (2019). Social media use among small and medium enterprises: a case of fashion industry growth. University of Dar es salaam library journal, 14, 3-18. Jacqueline, K., Isabella, W. & Rolle, J. (2016). Social Media Marketing in Micro and Small Fashion Enterprises in Nairobi, Kenya. Kisato , J. (2014). Utilisation of E-Marketing Tools and Influencing Forces on the Performance of Micro and Small Fashion Enterprises in Nairobi County, Kenya. PhD Thesis, Kenyatta University. Mullatahiri , V. & Ukaj , F. (2019). The effects of e-Marketing communications on brand loyalty: The case of mobile telephone operators in Kosovo. Journal of Distribution Science, 17, 15-23. Peltekoglu , Y. İ. (2019). How Gucci Has Solidified Its Corporate Brand Strategy Through Social Media—A Case Study. Uluslararası Halkla İlişkiler ve Reklam Çalışmaları Dergisi , 2, 198-214. Phan, M., Thomas, R. & Heine, K. (2011). Social media and luxury brand management: The case of Burberry. Journal of Global Fashion Marketing, 2, 213-222. Simo, E. (2020). Digital marketing strategies of luxury fashion brands in China: the Prada case study. Xu, Q. A study of the marketing strategies of high-end luxury brands: The case of Hermes. 2020 2nd International Conference on Economic Management and Cultural Industry (ICEMCI 2020), 2020. Atlantis Press, 462-467. Yuxin , Y. Analysis of the Multi-dimensional Marketing Strategies of Luxury Brands A Case Study of CELINE. 2023 International Conference on Finance, Trade and Business Management (FTBM 2023), 2023. Atlantis Press, 279-285 . Qureshi, M. S. M. S. (2020) The Effects of Electronic Word of Mouth on the consumer purchase decision in the apparel industry in Ireland. Dublin, National College of Ireland. References
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