Reading 2

I read Master Thesis of Charlotte Larbanet and Benjamin Ligier about Interactive media in the luxury industry, so my first, second and third reading are all about this thesis. I read many things about use of interactive media in this industry and I want to share my opinion about it.

Role of Interactive media in the Luxury industry (2).

Luxury brands saw the Internet as a mass and incontrollable media as well as a counterfeit distribution channel that could completely destroy their brands‟ image. But latter they started to see Internet in different way. As for the thesis there are some interactive tools in Internet for Luxury brands. They are e-biz., e-commerce, Viral Marketing and Online Customer Relationship Management. They distinguish e-business and e-commerce. E-biz is more using the Internet in order to connect customers with the company to give more information about its products and policies. It is a perfect medium in the case in which a brand wants to use the Internet in order to inform its customers. E-commerce is more online selling and purchasing activities including money transaction like online payment and tracking delivery. Companies use e-commerce mainly to promote their products and sell online; by selling online organization can reduce distribution cost, storage cost. There are Luxury companies who use Internet just for giving information (e-biz), some luxury companies use Internet to sell online (e-commerce). Viral Marketing (word-of-mouth marketing) for Luxury brands is developing at very high speed nowadays. By using blog, forum, video-sharing websites and social networking, this word-of-mouth technique became really powerful. It is so many ways to link customers and give them the possibility to speak about their product of brand experiences. But there is negative impact also, which may reduce brands image. Online Customer Relationship Management is very important tool for luxury brands, as main customers of the brand are loyal people. So companies are interested in having very good relation with exiting customers. The Internet has an important power to improve Customer Relationship Management. Like sending updated information to customers (not often in order not to be considered as spam) through e-mails, newsletters, RSS or online communities. To be continued.....