The document discusses the role of a sales manager in luxury goods companies and the importance of protecting brand equity. It explains that brand equity represents a valuable asset, especially for luxury brands, where intangible brand attributes are key. The way products are sold can impact brand value and reputation. The document emphasizes that sales managers must strategically manage brand image through the sales process to ensure growth while protecting the brand's precious equity.

1. ISM – Academical Paper - Lucas Colares
The role of the Sales Manager in Luxury Goods Company - the protection of
Brand Equity approach.
1-Introduction
Many are the duties and responsibilities of a sales manager; he is the master responsible
for managing the delicate moment when products, brands and customers meet each
other. The logistical and marketing challenges are innumerable in order to fulfill perfectly
the desires of clients, taking advantage of the maximum value that a product or service
can possibly deliver.
The position of a sales manager is strategic for all industries, but in the case of the luxury
sector in which it carries much of its value in the brand, it has an even more special
function (Keller, 2009; Carry, 2007; Bechtold,1991). For Kapferer and Bastien (2009,
p.79) « when we think of luxury the central unit of analysis is the brand ». For this reason,
we pay special attention to the obligations of a sales manager and the protection of the
brand, its identity and value.
2-Luxury companies and the value of the brand
Many authors and various definitions explain what a brand stands for. However, Lewi
(1999, p.14) supports that a brand is a benchmark of the market on which it acts by relying
on tangibles values (quality, degree of innovation and the price) and intangible values
(sensoriality, narration and brand involvement in its ecosystem), for the author, the brand
superimposes various levels of reality under the same name.
In the late 1970s an attempt to define the relationship between customers and brands
produced the term “brand equity”. It’s concept has appeared as researchers take notion
that brand carries with in an added value to the product, beyond its functionality
(Srinivasan, 1979). Based on Srinovasan’s work, other authors have defined the concept.
David Aaker, a pioneer in theoretical research on brand management, explains the term
as, Aaker and Biel (1993, p.70) : « brand equity stands for a financial concept associated
with the valuation placed on a brand. It is useful to recognize that the equity of a brand is
driven by brand image, a customer concept ». In this way, researchers and managers
became aware of the importance and the financial value that brands represent for
companies. It thus, brand equity has come to represent a very precious wealth (Armstrong
and Kotler, 2010). For some industries such as luxury products, brands represent the
company's most precious capital (kapferer, 2007).

2. ISM – Academical Paper - Lucas Colares
When it comes to luxury brands, the financial value that it represents for companies and
the role of a sales manager, we should concentrate our attention on the intangibles
aspects. For Kapferer and Bastien (2009, p.120) «The key to their profitability is the
extreme concentration of intangibles that they embody. The luxury brands are in fact, of
all brands, those to which the greatest part of ‘intangibles earnings’ is attached».
Within this context, the authors M’zungu et al. (2010) and Keller (2008) emphasize that
the way in which a product is sold or distributed can have a profound impact on its value
resulting in the success or failure of the brand. They believe that a proper delivery of a
brand reinforces its reputation vis-à-vis consumers. For M’zungu et al. (2010, p.610) «the
reputation of the brand is one of the most important intangible aspects».
3-The act of sale and the valuation of the brand
The act of selling and the intangible values that luxury products carry with them, make
this moment an opportunity to reaffirm its history, heritage and rarity, in this way we
understand that the seller must think at this moment as an instant to value the image, in
order to reinforce brand strategic advantage (Keller, 2009) . Within the different impacts,
risks and actors that constitute a channel of distribution and the act of sale, Keller (2008)
emphasizes that retailers are the ones that have the most visible and direct contact with
consumers and, for that reason, are the most likely to influence the value of the brand.
He also argues that building stronger relationships with retailers and their customers and
and above all, by having control over the selling process, retailers' stores can indirectly
influence brand capital.
In the same direction, Tibben-Lembke and Rogers (2002, p.274) they highlight the
concern that « […] Retailers are required to follow any conditions on disposition stipulated
by the vendor at the time of purchase. Vendors have invested much money and effort
building the “brand equity” of their products; giving their brand name a certain cachet that
creates a particular image in the minds os consumers ».Here we see the concern of brand
owners with the negative impact of the exposure of their products and the need to better
manage and control the brand equity in the distribution and sale of products. However,
the problem of loss of value through negative brand-related associations is not limited to
the way in which these products are sold, but also takes into consideration the destination
of those goods when they are not sold and are routed by retailers to secondary markets
due to the obsolescence experienced by these products.
Stock and Mulki (2009, p.39) believe that brand owners' concern over the devaluation of
the brand « [...] manufactures are concerned about the loss of “brand equity”. Once is
sold to a broker, manufacturers do not control how these products are sold. Firms fear
the impact on brand image if these products end up to bargain outlets or sold in flea

3. ISM – Academical Paper - Lucas Colares
markets».In this context, the clash between the lack of control of the destination (sales
representatives) and the devaluation of brand equity will encourage upstream business
managers to re-evaluate their distribution channels in order to minimize the impact on the
brand image and it’s value.
4-Conclusion
As explained previously, there is a real concern about the protection of the brand in all
acts of the distribution and sale. In this way, we emphasize the strategic role and the
responsibilities that lies with the position of the sales manager, monitoring sales
representatives, designing and implementing a strategic sales in order to achieve growth
by successfully managing the brand image and it’s precious value.

4. ISM – Academical Paper - Lucas Colares
References
 Aaker D., Biel A. (1993), “Brand Equity and Advertising : Advertising’s role building strong
brands”, New Jersey, Lawrence Erlbaum Associates, p. 1-381.
 Armstrong, G., et Kotler P., (2010), « Principles de marketing », Pearson Education France,
10th edition, p.1-455.
 Bechtold, M., (1991), « Le paradoxe du luxe » , Revue française du marketing, 2-3, 132-133,
41-43.
 Catry, B., (2007), « Le luxe peut être cher, mais est-il toujours rare ? », Revue Française de
Gestion, No. 171, p. 49-63.
 Kapferer, J., (2007), « Les marques : Capital de l’entreprise », Eyrolles, 4e édition, p. 1-803.
 Kapferer, J., et Bastien, V., (2009), « The luxury strategy : Break the rules of marketing to
build luxury brands », Kogan Page, p. 1-305.
 Kapferer, J., et Bastien, V., (2009), « The specificity of luxury management : turning marketing
up side down », Journal of Brand Management, No.16, p. 311-322.
 Keller K., (2009), « Managing the growth tradeoff : Challenges and opportunities in luxury
branding », Journal of Brand Management, Vol. 16, p.390-301.
 Keller K., Fleck, N., Fontaine, I., (2008), « Management stratégique de la marque : Constrire,
évaluer et exploiter des marques fortes », Pearson Education, 3e édition, p.1-370.
 Lewi, G.,(1999), « La Marque », 1° Edition. Paris. Libraire Vuibert, p.1-114.
 M'zungu, S., Merrilees, B., Miller D., « Brand management to protect brand equity: A
conceptual model », Journal of Brand Management, Vol. 17, p.605-617.
 Srinivasan, V. (1979), « Networks Models for Estimating Brand-Specific Effects in Multi-
Attribute Marketing Models », Management Science, Vol. 25, No. 1, p. 11-21.
 Stock, J., et Mulki J., (2009), « Products Returns processing : An examination of practices of
manufactures, wholesalers/distributors, and retailers », Journal of Business Logistcs, Vol. 30,
No. 1, p. 33-62
 Tibben-Lembke, R., et Rogers, D., (2002) « Differences between forward and reverse
logistics in a retail environment », Supply Chain Management : An international Journal, Vol.
7, No. 5, p. 271-282.

5. ISM – Academical Paper - Lucas Colares