Lvmh Marketing

If we look at Maslow Hierarchy needs, he looks at human needs he believed that love and belonging are very important to our self- esteem. If these needs are not met we may not meet self- actualization. (Milliken & Honeycutt)

Read Ch. 4 of Basic Marketing. Read Ch. 9 of Basic Marketing. Read Ch. 10 of Basic Marketing. Read Ch. 17 of Basic

With these few thoughts in mind Abraham Maslow made up a hierarchy of needs. (Boeree, Page 2) The hierarchy of needs has five levels: the bottom one is Physiological Needs, the next one up is Safety needs, the next one is Belonging needs, the next one is Esteem Needs and finally the last one is Self-actualization needs. As Maslow thought he “saw human beings needs arranged like a ladder”, the most basic needs at the bottom and at the top the need to fulfill yourself. (pbs.org, Page 1) Below is Maslow’s hierarchy of needs.

Consumers are the centre of many marketers work. While the consumer is part of the marketing environment, it is also very important to recognise and understand the more personal and specific influences effecting consumers and the nature of the decision making process they use.

Understanding consumer behaviour is essential to succeed in business. As Solomon et al. (2013) stresses, businesses exist to satisfy consumer’s needs. By identifying and understanding the factors that influences their customers, firms have the opportunity to develop a more efficient strategy, marketing message and advertising campaigns that is more in line with the needs and ways of thinking of their target consumers (Perreau, 2015).

Markets consist of buyers that differ in their needs, wants, resources, locations, buying attitudes and buying practices. To reach customer insight, it is important to understand the needs of different segments and to communicate pertinently to them (Brown L, Brown C, Gallagher SM, 2008).

According to Maslow’s hierarchy of needs, esteem presents the normal human desire to be accepted and valued by others. Maslow noted two versions of esteem needs, a lower one and a higher one.

When a consumer walks into a store, they know what products they want to buy, whether it be an item that is a needed or a product that is just a want. If

Ever since companies began manufacturing their products in large quantities, they have needed to convince consumers to buy the product. Before WWI, most consumers were happy to purchase a manufactured product because it was cheaper and convenient. However, as more companies began offering more and more goods, businesses needed to stand out from the crowd in order to make a sale. Over time, Marketing has changed and evolved to become an integrated function of many companies today.

In this section, I will break down the common consumer in attempt to understand what sways him/her into purchasing certain goods—especially those that “they do not need” In addition, I will discuss how consumers determine a certain product to be “worth it”

In today’s world of various products and services, businesses aim to excel and lead the competition by marketing the most number of consumers, which is a full time endeavor of business. To survive in the market, a firm or an organization has to be constantly innovating and understand the latest consumer trends and tastes. Marketers need to understand consumer behavior because the decision-making process for consumers is anything but straight forward. Consumers’ behaviors and their purchasing patterns is a huge advantage to understanding the way customers think and the reason for their purchases. Therefore, the study of consumer behavior is important because it allows the

Social needs acquired by such employees include love, acceptance and belonging. They must feel accepted and a sense of worthiness before they can work up to fulfilling other, more difficult needs. The esteem level on Maslow’s Hierarchy of Needs is the need for appreciation and respect. After the other levels of needs have been fulfilled, the esteem needs begin to play a prominent role in motivating behaviour. Theory Y employees will be motivated to gain respect in their organisation by achieving company objectives and by showing management their skills and abilities. The top need desired by such employees is self-actualisation. Maslow himself said;

Understanding consumer buying behavior entails marketing, relationships, and consumer behavior. Consumer behavior comprises all the consumer decisions and activities connected with the choosing, buying, using and disposing of goods and services. Marketers must pay very close attention to consumer behavior that occurs before the purchase and after the particular product has been used. Studying consumer habits is one of the steps in marketing search and analysis. In addition to other basic principles of consumer buying habits, marketers also need to study the decision and actions of real people. Until recent history the study of consumer behavior was focused on generalized consumer decisions. With

Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Asia. In order to expand successfully LVMH must evaluate challenges that may arise and get in the way of their successful expansion. In the Asian market, LVMH must deal with political and cultural uncertainties, the threat of counterfeit products, and the increased cost of products in Asia compared to France.

LVMH’s brand portfolio is a catalogue of the finest things money can buy. Arnault said, “A Star brand is timeless, modern, fast growing and highly profitable.”[iii] LVMH has positioned its brands strongly in the luxury segment offering more than 50 different brands under their five core competencies. LVMH has been successful through all of their various brands in their portfolio giving them each their independence and creativity. “LVMH is well known for leaving much operational and marketing freedom to the various brands it owns.”[iv] “LVMH has done an excellent job of brand positioning, says Ben Cavender, senior analyst at China Market Research Group. It has succeeded in securing the particularly enviable position of gaining a following among the top percentage of China’s wealthy. As the financial crisis stretches on, LVMH customers in China still have money to spend.[v] “LVMH’s brand imaging, which relies heavily on pushing its European heritage, is so successful that it has benefited other brands by proxy, says Paul French, one of the founders of Access Asia, a group dedicated to tracking regional consumer and marketing trends. “Everyone hangs on the coattails of Louis Vuitton’s brand imaging in China.”[vi]