EXPERIENTIAL

MARKETING
How to Get Customers to Sense,
Feel, Think, Act, Relate

By Bernd H. Schmitt

From Chapter 1: FROM FEATURES AND BENEFITS TO CUSTOMER

EXPERIENCES

We are in t he m iddle of a revolut ion. A revolut ion t hat will render t he principles
and m odels of t radit ional m arket ing obsolet e. A revolut ion t hat will change t he
face of m arket ing forever. A revolut ion t hat will replace t radit ional feat ure- and-
benefit marketing with experiential marketing.

As t he new m illenium approaches, t hree phenom ena are signaling an ent irely
new approach t o m arket ing, if not t o doing business as a whole. These t hree
sim ult aneous developm ent s are ( 1) t he om nipresence of inform at ion t echnology,
( 2) t he suprem acy of t he brand, and ( 3) t he ubiquit y of com m unicat ions and
entertainment.

From Chapter 2: THE BREADTH AND SCOPE OF EXPERIENTIAL

MARKETING

Experiential marketing can be used beneficially in many situations including

To turn around a declining brand

To differentiate a product from competition
To create an image and identity for a corporation
To promote innovations
To induce trial, purchase and, most importantly, loyal consumption

So, will experient ial m arket ing replace t radit ional m arket ing in it s ent iret y? Or is
it or an alt ernat ive approach t hat com plem ent s t radit ional m arket ing? Most
important, is experiential marketing likely to last?

1
Answers t o t hese quest ions depend on t he product cat egory and indust ry as well
as the intended customer target and management. In some industries (consumer
product s and services) experient ial m arket ing is likely t o rem ain t he focus for t he
foreseeable fut ure, especially given t he t rends discussed in chapt er 1. I n ot her
indust ries ( e.g., business- to- business, indust rial and t echnology m arket s)
experient ial m arket ing enriches t he offer and provides avaluable com plem ent ary
approach to traditional marketing.

For t he m om ent , let 's t ake a look around and see where and how experient ial
m arket ing is being used. We'll st art our t our wit h t ransport at ion vehicles ( like
cars, t rains and airplanes) and t hen m ove on t o m ore unexpect ed places where
experient ial m arket ing is t urning up, such as t echnology and indust rial product s;
news and ent ert ainm ent ; consult ing, m edical and ot her professional services;
and financial products.

Copyright © 1999 Bernd H. Schmitt

From Chapter 3: A FRAMEWORK FOR MANAGING CUSTOMER

EXPERIENCES

Modularit y of t he m ind, i.e., t he view t hat t he m ind is com posed of specialized

funct ional part s, provides a wonderful m et aphor and pract ical lesson for
experiential m arket ing: Experiences m ay be dissect ed int o different t ypes, each
wit h t heir own inherent st ruct ures and processes. As a m anager you m ay view
t hese different t ypes of experiences as st rat egic experient ial m odules ( SEMs)
that constitute the objectives of your marketing efforts.

Let m e provide a brief descript ion of t he five t ypes of cust om er experiences t hat
form the basis of the Experiential Marketing Framework.

Copyright © 1999 Bernd H. Schmitt

From Chapter 4: Sense

Proct er & Gam ble's Tide, t he nat ion's leading laundry det ergent , has been
prom ot ed for years on t he basis of feat ures and benefit s as a m ore effect ive
cleaner t han ot her brands. Tide's ads have been a st aple of Am erican TV viewing
for years: on the left side of your TV screen was a striped shirt with a tough stain
t hat t he ot her brand failed t o get out ; on t he right was t he sam e fabric, washed
brilliant ly clean by Tide. The drill has been fundam ent ally t he sam e for all of
Tide's various incarnat ions: t radit ional Tide, Tide wit h bleach, perfume- free Tide.
I n February 1998, aft er I gave a present at ion on experient ial m arket ing
organized by t he Design Managem ent I nst it ut e, Ms. Claudia Kot chka, vice
president at Proct er and Gam ble, confessed: " We'd need m ore of experient ial
marketing for our products including Tide."

Tide's new cam paign, " Tide Mount ain Fresh," has a direct sensory appeal, and
P&G's m arket ing of t he product is designed t o exploit and expand t his appeal.
The advert ising displays im ages of snow- capped m ount ains, hills covered wit h
fragrant evergreens, and m eadows full of wildflowers; t he colors are cool, vivid,
and refreshing. The language is equally evocat ive of t he out door experience:
" crisp m ount ain air; bright sunshine and coolbreezes; fresh wildflowers; clear

2
spring wat er; clean m ount ain snow." The copy goes on t o prom ise, " now you can
bring t he fresh clean scent of t he great out door inside wit h New Mount ain Spring
Tide." P&G has even incorporat ed a scrat ch and sniff feat ure in t heir print
advert ising, t o int roduce t he scent and allow consum ers t o experience it before
purchasing t he product . P&G has m ade a coherent effort t o creat e t he st rong
sensory experience of a cool m orning on a m ount aint op. What 's m ore, t hey have
t aken a decisive st ep in t he direct ion of experient ial m arket ing. The t ag line for
t heir new ads -- " There's Som et hing New in t he Air" -- heralds som et hing m ore
t han j ust a new product scent ! I n sum , t he SENSE cam paign for Tide result s in
multiple sensory experiences.

Copyright © 1999 Bernd H. Schmitt

From Chapter 5: FEEL

Most em ot ional advert ising feat ures sm iling faces, crying babies, barking
poodles, accom panied by a lot of sing- song and j ingles. I n som e rare cases, t he
product or consum pt ion sit uat ion lends it self t o an em ot ional focus. For exam ple,
m aking ( personal) phone calls involves feeling; so AT&T's " Reach out and Touch
Som eone" m ade sense. But in m any cases, t he relat ion bet ween product and
feeling is coincident al and purely driven by a brand m anager's or ad execut ive's
decision to jump on the "emotional ad" bandwagon.

These em ot ional advert ising cam paigns m easure up well in t he short run,
m eaning on som e " em ot ion scale" t aken right aft er t he exposure t o t he ad. But
what do t hese scales really m easure? I t seem s t o m e m ost of t hem m easure
consum ers' m em ory for cert ain cont ent s of t he ad and how sm art t he consum er
is in guessing what t he m arket researcher has in m ind. I t is as if t he consum er is
saying: " All right . You want t o know whet her aft er seeing all t hese happy faces,
kids and dogs, I feel 'warm ,' 'full of j oy' and 'glowing wit h happiness.' Sure. So
I 'm not a m onst er aft er all." I n ot her words, t hese t ypes of m easures have
produced m assive overst at em ent s regarding t he effect iveness of " em ot ional
advert ising." Most cust om ers are t oo sm art t o be fooled by sim ple, t hirt y- second
com m ercials ( repeat ed daily) . These ads do not possess t he power of a t hree-
hour feat ure like Titanic ( not t o m ent ion t he sam e dram at ic qualit ies) , and as a
result , t hey have only a t iny im pact . Does t his m ean t hat all em ot ional
advert ising is wast ed? Definit ely not . However, if you want your advert ising t o
work, you need t o do t hree t hings: ( 1) have pat ience; ( 2) hire a good producer
and ( 3) use ads as an int erpret ive fram ework for consum pt ion. All of t hese
techniques require deep pockets. Let me explain.

Copyright © 1999 Bernd H. Schmitt

From Chapter 6: THINK

The essence of THI NK m arket ing is t o appeal t o cust om ers' creat ive t hinking
about a com pany and it s brands. THI NK m arket ing is appropriat e for a wide
variet y of product s and services. Alt hough Apple Com put ers and Genesis
ElderCare are in radically different businesses, t hey bot h appeal t o creat ive

3
t hinking. Cut t ing- edge ret ailers, t erm ed t he " Teach and Sell school of ret ailing"
by The New York Tim es, are also discovering THINK marketing. Examples include
t he Discovery Channel st ore in Washingt on which displays a m odel of a
Tyrannosaurus rex and an em erald beet le as part of m any ot her int eract ive
educat ional displays; Mars, a Fort Lauderdale m usic supply shop where
teenagers can t ake drum m ing lessons; and Tourneau in New York where
customers learn about the history of watches.

Even t he world of fashion and beaut y m ay use THI NK cam paigns. For exam ple,
Eddie Bauer, t he m en's casual clot hing ret ailer, has used inspirat ional THI NK
concept s t hroughout it s st ores: " I nspire," " I m agine," " I nsight ," " I nt rigue,"
" I nhabit ( your surroundings) " were t erm s writ t en all over t heir ret ail space,
accompanied by sedate pictures of tulips, lakes and mountains.

I t is im port ant , however, t o keep in m ind who you are com m unicat ing wit h, in
what cont ext . Just put t ing up associat ion- provoking " Think" t erm s m ay work for
Eddie Bauer but fail in an annual report . As Lucy Kellaway of t he Financial Tim es
observes: " You m ight t hink t hat t he world of annual report s is not part icularly
fashion sensit ive, but you would be wrong....A couple of years ago t he t rendy
thing was to put a picture on the cover showing team work. Last year it was back
t o basics wit h plain pict ures of t he product s. This year t he sm art t hing is t o
plast er big words from t he m ission st at em ent across t he cover -- m aking t hem
m ore prom inent t han t he nam e of t he com pany it self." She refers t o: Fut ure.
Focused. Value. Qualit y. Growt h. " By using one of t hese lam e cliches a com pany
only succeeds in looking just like everyone else."

Copyright © 1999 Bernd H. Schmitt

From Chapter 7: ACT

How t he m edium of int eract ion can affect experiences is a key issue for any
service provider. I n chapt er 5 we learned t hat well- t rained real- life salespeople
are crit ical for inducing st rong posit ive em ot ions. The key word is " well t rained,"
or else t he opposit e occurs: st rong negat ive em ot ions. Yet , t here is t he broader
issue of what kind of behavior t he presence or absence of ot her people affords.
Thus t he st rat egic decision is, " aut om at e or personat e?" and t he answer depends
on t he t ype of service. Ask yourself: for what t ype of banking t ransact ions ( or
services in general) do you prefer an aut om at ic t eller m achine, and for which
ones a personal t eller? I t also depends on t he cust om er. Som e cust om ers ( older
people on a leisure t rip) prefer t o pick up t he key and docum ent s from a car-
rent al count er ( assum ing t here are no lines) ; ot hers prefer t o go st raight t o t he
car and drive off ( younger cust om ers on a business t rip?) . The reason are not
only considerat ions of t im e. The ent ire experience changes in t erm s of cont rol,
initiative and feelings of being taken care of.

Copyright © 1999 Bernd H. Schmitt

From Chapter 8: RELATE

RELATE has been used successfully in a variet y of recent m arket ing cam paigns.
Let's examine some of them.

4
Let 's st art wit h relat ing t o a person. I n t he last chapt er we looked at t he ACT
appeal of Mart ha St ewart . Her RELATE appeal is j ust as powerful and, for som e,
highly personal. Wom en who don't adm ire Mart ha, as well as t hose who do,
speculat e about " being" Mart ha. One writ er describes her t ongue- in- cheek foray
int o t he world of dom est ic perfect ion: " t he idea -- regret t ably, m y own -- was t o
see whet her I could be Mart ha St ewart in t im e for t he holidays." Despit e t he
hum or of t he t opic, m any people do relat e t o Mart ha as t he em bodim ent of an
elegant and relaxed lifestyle.

Reference- group feelings can provide a powerful st art ing point for a RELATE
cam paign. Just t hink about Harley Davidson, t he Am erican icon of free-
spiritedness, which draws thousands of motorcycle enthusiasts to weekend rallies
st aged around t he count ry. Harley Davidson evokes such st rong relat ions t hat
owners t at t oo t he logo on t heir arm s or t heir ent ire bodies. As Alec Wilkinson
wrot e in The New York Tim es: " I f you ride a Harley, you are a m em ber of a
brotherhood, and if you don't, you are not."

On a higher- end scale, we find yet anot her brot herhood -- t hat of Tom m y
Hilfiger, t he phenom enally successful Am erican casual- clothing designer brand.
Like Harley Davidson, Tom m y Hilfiger has used RELATE m arket ing for m any
years. A recent ly launched Tom m y fragrance uses t he t ag line, " t he real
Am erican fragrance." Print ads show groups of wholesom e- looking young people
of different races, wearing Tom m y fashions and relaxing in casual set t ings. The
at m osphere is one of warm t h and easy cam araderie am ong friends. One set t ing,
on a m anicured lawn before a large Cape Cod hom e, is st rongly rem iniscent of
t he Kennedy enclave at Hyannisport . Tom m y's signat ure colors -- red whit e and
blue, are carried t hrough in Am erican flags t hat appear in t he background of
each shot.

An int egrat ed and successful collect ion of RELATE product s and services is
provided by t he Franklin- Covey com pany. Building on t he phenom enal success of
St even Covey's best - selling book The Seven Habit s of Highly Effect ive People,
Franklin- Covey offers a line of Franklin organizers, t he Covey Leadership Cent er,
and Covey's books on self- m anagem ent . They have even opened a line of ret ail
st ores, t he 7- Habit s st ores, selling product s and services int ended t o help people
get control of their lives.

Finally, RELATE m arket ing can be serious or playful. A " com m unist chic"
rest aurant is all t he rage in Singapore. At t he House of Mao, wait ers wear red
st ars on t heir caps and Maoist slogans on t heir sleeves. A port rait of t he lat e
Chinese leader Mao Tse- t ung dom inat es one wall of t he rest aurant , which is
decorat ed wit h m edals, post ers, and copies of Mao's fam ous Lit t le Red Book. The
m enu it self m im ics t he Lit t le Red Book and offers dishes like Long March Chicken
and Chairm an Mao's Favorit e Braised Garlic Pork. This t ongue- in- cheek nost algia
is not confined t o Asia, eit her. Short ly aft er t he fall of com m unism in Europe, a
hammer- and- sickle craze swept t he region, wit h pizzerias and cafet erias harking
back to the "good" old days in their design and marketing.

Copyright © 1999 Bernd H. Schmitt

From Chapter 9: EXPERIENTIAL HYBRIDS AND HOLISTIC

EXPERIENCES

5
I n chapt ers 4 t hrough 8, I discussed t he five st rat egic experient ial m odules
( SEMs) of SENSE, FEEL, THI NK, ACT and RELATE t hat form t he basis of
experient ial m arket ing. As we saw, when using a part icular SEM, m anagers need
t o give careful considerat ion t o it s obj ect ives and principles. For each SEM, I
have provided a set of concept s, t echniques and t ools t hat m anagers can use
once they have decided to use a certain SEM.

SEMs m ay be viewed as t he fundam ent al building blocks upon which t he edifice

of experient ial m arket ing rest s. As such, t hey are t he st art ing point -- not t he
end goal -- of experient ial m arket ing. The ult im at e goal of experient ial m arket ing
is t o creat e what I call " holist ic experiences." I n t he m iddle ground on t he way t o
t he holist ic experiences, we find experient ial hybrids. I n t his chapt er, I discuss
t he st ruct ural issues of building hybrids and holist ic experiences. Moreover, I will
int roduce t he " Experient ial Wheel" as a t ool for building hybrids and holist ic
experiences. Let's first look at some examples.

Copyright © 1999 Bernd H. Schmitt

From Chapter 10: STRATEGIC ISSUES OF EXPERIENTIAL

MARKETING

Using the traditional F&B approach, the goal of new product development is often
seen as adding new feat ures and benefit s, " im proving" old product s or old
technologies. Traditional marketing models view brand extensions in terms of the
fit bet ween product cat egories and t he t ransfer of posit ive equit y from t he
current brand to the extension product.

I n cont rast , new product and brand ext ension decisions using an experient ial
marketing approach are driven by t hree fact ors: ( 1) t he degree t o which t he new
product and ext ension cat egory enhances t he experient ial im age of t he com pany
or brand; ( 2) t he degree t o which new product s and brand ext ensions add new
experiences t hat can be leveraged in addit ional new product s and furt her brand
ext ensions; and ( 3) t he degree t o which t hey help in t he creat ion of holist ic
experiences. I n ot her words, when Lipt on considers ext ending int o t eahouses or
Johnny Walker int o apparel ( as bot h brands have done recent ly -- Lipt on wit h a
Starbucks- st yle t eahouse in Pasadina and Johnny Walker wit h a bout ique in
Bloomingdale's), the key issue is whether the overall experience will be right.

Copyright © 1999 Bernd H. Schmitt

Chapter 11: BUILDING THE EXPERIENCE- ORIENTED

ORGANIZATION

Applying t he t erm s t o present - day organizat ions, we can cont rast as ideal t ypes
t he Apollonian and t he Dionysian organizat ions. The Apollonian organizat ion is of
a rat ional nat ure: harm onious, ordered, and planned. I t is, ult im at ely, t he result
of t he spirit of enlight enm ent . The Dionysian organizat ion is born out of a
different underst anding of realit y. The Dionysian organizat ion is of a passionat e-
creative nature; it thrives on chaos.

Bot h t he Apollonian and t he Dionysian organizat ion have t heir drawbacks: t oo

Apollonian and t he organizat ion st agnat es; t oo Dionysian and t he organizat ion

6
m ay disint egrat e. Clearly, an experience- orient ed organizat ion needs bot h
elem ent s: t he planners who plan and m anage and m easure, as well as t he
creatives -- int ernal and ext ernal -- who com m unicat e t he m essage t o key
customer targets.

But , all else being equal, it is t he Dionysian organizat ion t hat provides t he best
environm ent for experient ial m arket ing. Most organizat ions are t oo t im id, t oo
slow, t oo bureaucrat ic in t heir decision m aking. I would rat her have people
around m e buzzing wit h new ideas t han art hrit ic, com m and- execut ing aut om at a.
I would rat her receive t oo m any em ails wit h ideas t han t oo few. I n t he t ransit ion
phase from F&B m arket ing t o experient ial m arket ing, in part icular, Dionysian
processes and init iat ives are clearly preferable. What you m ay lose in
predictability you more than make up for in creativity and vision.

However, it is key t o m ake com m unicat ions as t ransparent as possible in a t he

t ransit ion from F&B t o experient ial m arket ing, and t o gain st rong support for t he
approach wit hin t he organizat ion. Rem em ber t he Brit ish Airways' " World
Com m unit ies" cam paign in chapt er 4? React ions t o t he t ail- fins cam paign were
host ile at pract ically all levels, from flight at t endent s t o shareholders. Cabin crew
as well as shareholders were offended when t hey were asked t o give up
" Brit ishness." I t is difficult t o secure support ext ernally when you do not have it
internally.

Copyright © 1999 Bernd H. Schmitt