At the moment I am writing my masters thesis about Luxury Brand Management and Social Media. I will post selected extracts from my thesis on my blog as well as this forum - any ideas or opinions are more than welcome and would be highly appreciated. Please do not hesitate to contact me if you would like to know more about my thesis.
Today the traditional marketing model is being challenged and it seems like marketing is slowly loosing its effectiveness. Marketers are facing great challenges with declining trust from consumers and due to digital technologies consumers are gaining more and more control of their media time, resulting in a shift of power. It has been the rise of the digital consumer - those who spend more and more time on their computers and mobile devices, who are clearly willing to buy luxury goods and services online and who even discuss their favorite brands through social media.
Some brands have gained a deeper understanding and appreciation for the opportunities and risks offered by digital media. In fact 2011 has almost been a tipping point for the luxury industry. It seems more determined than ever to take advantage of these exciting technologies, which are changing the way almost all products and services are marketed and sold. Virtual fashion shows, digital flagship stores, 3D advertising campaigns, augmented reality applications, iPad magazines, Facebook live-streams and Twitter-based customer service are just a few examples of the long list of digital innovations that luxury brands have pioneered this year.
However, putting the enthusiasm of the revolution to one side, are the companies indeed adopting the right social media tools and techniques? How is social media impacting business? Where should they invest? And what can we expect next? I've found that many companies are very focused on integrating social media as part of their marketing strategy. But unfortunately they are not capable of balancing the use of tools with the right social media mindset. Everyone is so focused on ROI forgetting what the actual purpose of having a social media platform really is about. It's about customer engagement and interaction, posting content and running campaigns - all in order to create brand awareness and attract and retain customers.
What brand managers need to realize is that social media needs to be integrated as a continuous part of the overall business strategy and not solely be considered as a new media channel. It is important to keep in mind that first and foremost social media is a communication tool. It should therefore serve as a supplement to already existing marketing activities and strategies.
