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DESIGNING EXPERIENCES

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DESIGNING EXPERIENCES

Topic 3
Experiential Marketing

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Learning Objectives

1 Traditional vs Experiential Marketing

2 Characteristics of Traditional Marketing

3 Characteristics of Experiential Marketing

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Experiential Marketing

Traditional vs Experiential Marketing


Experiential Marketing

Traditional vs Experiential marketing

• Traditional marketing - rational decisions


• Experiential marketing - pleasurable experiences
Conclusion

Traditional marketing

• Principles, concepts and methodologies that marketing


academicians, practitioners and consultants have
amassed through this century
• No guidance to capitalise on emerging experiential
economy
• Developed in the industrial age, not the information
Three developments in Business Environment

New Approach to Marketing

• Omnipresence of Information Technology: transformation in


media from print to voice and from sight to sound
• Supremacy of the brand: information about brands is available
instantly and globally
• The Ubiquity of Communications and Entertainment:
everything becomes a form of communication and
entertainment
Experiential Marketing

Experiential Marketing

• Five different types of strategic experiential modules (SEMs)


✓ Sense, Feel, Think, Act, Relate
The experiential
Strategic modules to be managed in Experiential Marketing
experiential
- sensory experiences (SENSE)
modules
- affective experiences (FEEL)
(SEMS)
- creative cognitive experiences (THINK)
- physical experiences, behaviors and lifestyles (ACT)
- social-identity experiences that result from relating to a reference
group or culture (RELATE)
Experience providers (ExPros)
Strategic
experiential visual and verbal identity, product
- communications,
modules
presence, electronic media
(SEMS)
The ultimate goal of Experiential marketing
- holistic experiences that integrate individual experiences into a
holistic Gestalt
Characteristics of
Traditional Marketing
.

Customers in a variety of markets


.
weigh functional features in
terms of importance, trade off
features by comparing them

Focus on
functional Customers are assumed to
features and make choices based on features

benefits

Product features are viewed as a key


tool for differentiating a company's
offering from competition
Product category and competition are narrowly defined

Wendy’s
Burger king

Mcdonalds

Narrow competition
. .
Customers are viewed as rational decision
Evaluation of alternatives
makers

Purchase and
consumption Customer Information search

Need Recognition
Methods and tools are analytical
quantitative • Standard traditional marketing
methodologies are analytical,
quantitative and verbal.

• Consists of verbal rating collected


in interviews or surveys
Characteristics of
Experiential Marketing
A focus on customer experience

Characteristic
- Involves emotional and sensory experiences
of Experiential
- Experiences provide sensory, emotional, cognitive, behavioral, and
relational values that replace functional values
marketing
A focus on consumption of as a holistic experience
Characteristic
- of Experiential
Emphasis on specific experiences​
- Brands prefer putting a tagline on the experiences
marketing
- for example "grooming in the bathroom“ - gives the customer a way
to express their experience in words
Customer are rational and emotional animals

- They use mixture of both to make a choice


- They Characteristic
use all sorts ofof
research and evaluation between different brands,
products and stores
Experiential marketing
- This research helps them to make a better decision and better choice
Methods and tools are eclectic

Characteristic
- Combination ofto study consumer behavior
of tools
Experiential
- The marketers usemarketing
eye tracking, survey, polls and so on to determine
the consumer buying behavior
Characteristic of
Experiential marketing
?
Conclusion

Traditional marketing indeed conveyed a very valuable set of


strategies and methodologies in the industrial age

Experiential marketing has a much more effective approach


during this timeframe
Student Activity 1

Please read the following article:

• Schmitt, B. (1999). Experiential marketing,


Journal of Marketing Management, 15: 53– 67.

Briefly present to the group.

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