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EXPERIENTIAL MARKETING Bernd H. Schmitt

Presented by,

Ambesh Srivastav

Ankita Jain

Disha Mahajan

Deepesh Sharma

Akanksha mishra

Indranil Bhowmick

What is Experiential Marketing• Experiential Marketing is everywhere. It is simply selling

experiences, not the “feature & benefit” only.• It comprises of product development, communication with

customers, improving sales relations, design retail environment, selecting business partners and building websites.

Now the experiences can be of many type, namely,• SENSE (sensory experiences)• FEEL (affective experiences)• THINK (creative cognitive experiences)• ACT (physical experiences & entire lifestyle)• RELATE (social identity experiences that result from

relating to a reference group)

Why totally new approach of marketing is needed

• Three trend or phenomenon are changing the way of marketing in this millennia. They are…

• The omnipresence of information technology• The supremacy of brands.• The ubiquity of integrated communication & entertainment.

Traditional marketing

•Functional features and benefits•Narrow definition of product & competitor•Customers are rational decision maker •Methods are analytical & quantitative

Experiential marketing

•Customer experience•Consumption as a holistic experience•Customer are rational as well as emotional•Methods are eclectic

SENSE!!!!

Sense marketing appeals to five senses: Sight Sound Scent Taste Touch

The main purpose of sense marketing is to provide pleasure, excitement, beauty and satisfaction.

Concepts and Planning tools for Sense Marketing Corporate Expressions Primary Elements, Styles, Themes Overall Impressions

Corporate expressions and Identity Elements

Corporate express itself under this mainly by the help of 4P’s of sense marketing that are:-

Properties Products Presentations Publications

Primary Elements, Styles, and ThemesPrimary Elements tries to capture the five senses of

humans –e.g., color, shapes(for sight); loudness, pitch(for sound); material and texture(for touch). In all these most important element is color. Then music or ambience which mould the taste and wants of the customer according to the environment.

Styles is one of the other main component of primary elements analyzed according to certain style dimensions like complexity (minimalism v/s ornamentalism); representation (realism v/s abstraction); movement (dynamic v/s static); and potency (loud/strong v/s soft/week).

Themes concentrate towards the content that is communicate the meaning of that brand and the corporation. Themes provide mental anchors, reference points and memory cues that comes into action at the time of action as a brand or company recall.

Overall Impressions Styles and Themes create an overall costumer impression

which occur repeatedly in this business world; impressions related to time, time movement, space, technology, authenticity and sophistication.

Sense Strategic ObjectivesHow to apply sense marketing in the market. There

are three strategic objectives that motivate sense marketing.

1. SENSE as Differentiator

2. SENSE as Motivator

3. SENSE as Value Provider

The S-P-C Model For Achieving SENSE Impact STIMULI PROCESSES CONSEQUENCES

FEEL!!!!!!FEEL!! Marketing is the strategy and implementation

of attaching affect to the company and brand via experience providers.

Why feelings are so Important?????

To seek pleasure and to avoid pain– or more generally to feel good and avoid feeling bad– is one of the core principles of life.

AFFECTIVE EXPERIENCES

Affective experiences are experiences of degree– that is feeling vary in intensity, ranging, from mildly negative mood states to intense emotions. There are two factors:-

MOOD EMOTIONS(BASIC, COMPLEX)

Affect Occurs Mostly During Consumption

Feelings are most powerful when they occur during the consumption. Strong feelings result from contact and interaction, and interaction, and they develop overtime.

The most lasting affect is caused by face to face interactions. People develops strong feelings towards other by the course of time and in feel marketing and this effects the customer retention and to bring back ex-customers.

What’s the role of Emotional Advertising

Feel marketing basically work on emotional advertising which shows the emotions to the customers with the help of smiling faces, crying babies, etc accompanied by sing songs and jingles.

THINK????????The objective of THINK marketing is to encourage

customers to engage in elaborative thinking that may result in a revaluation of company and products.

Think Concepts Convergent Thinking is basically thinking more analytically and

probabilistic thinking involving well-defined rational approach. Divergent thinking is more freewheeling, and often more

rewarding in contrast to convergent thinking. It involves what psychologists call perceptual fluency, flexibility and originality.

Concentration and attention both are key elements for the success of THINK campaigns. Concentration develops a state of mind in which individuals are very focused on detecting input that is relevant to there goals and objectives. Attention is the state when they start differentiating things from one another.

THE THINK PRINCIPLE A Sense Of Surprise is essential for setting the customer to

engage in creative thinking. Going apart from the customary expectations is the effective way to create surprise and one think more surprise have to be positive.

A Dose Of Intrigue goes beyond surprise. If surprise is breaking customary image then Intrigue reaches “out of the box”. Intriguing campaigns arouse customer’s curiosity; they puzzle, they fascinate, or challenge one’s ingenuity because they challenge deeply held assumptions.

A Smack Of Provocation can stimulate discussion, can create controversy– or shock, depending on your intentions and the intended target group. Provocations may appear irreverent and aggressive, and they can be risky if they go overboard.

ACTACT marketing strategies are designed to create

customer experiences related to physical body, longer term patterns of behavior and lifestyles.

Various physical body experiences are

FLESH

Proper marketing of the flesh experiences depends on creating right product, stimulation & atmosphere

For e.g. Lancôme product.

MOTOR ACTIONS

Behavioral techniques targeting motor activities work when people perform motor activities themselves and also in social interactions.

BODY SIGNALS

There are numerous body signals which suggest approach ,avoidance, preference and dislikes for e.g. various signals like eye contacts, gestures, tone of voice.

ENVIRONMENTAL INFLUENCES ON PHYSICAL DESIRES

These strategies is to locate at place where physical desires are more likely to arise

For e.g. Coca cola

LIFESTYLES This refers to the persons pattern of living in world as

expressed in persons interest and activities. Various approach to lifestyle experiences include role models ,appeals to norms etc

RELATE• Relate implies connection with other people , social groups or

a social entity such as a nation or culture.• For e.g. Levis • Relate marketing and social influence • It is concerned with the influence of actual or implicit

presence of other people on an individual ‘s thoughts SOCIAL CATEGORIZATION AND IDENTITY

• KIN RELATIONSHIPS• Relate advertising should show kin relationships as they create

feeling of sympathy , trust towards relatives• CROSS CULTURE VALUES• Understanding of reference group norms is a prerequisite for

designing a successful relate campaign

SPECIFIC VALUES AND ATTITUDES

If values are specific to a particular culture , relate marketers must be sensitive to these cultural differences

For e.g. Americans tend to be very friendly at first sight

Establishing brand relationships

Consumers use descriptions of their brands that are strikingly similar to descriptors of their relations with people.

for e.g. wife uses the brand of air freshener that his ex husband uses.

Brand communities

These are structured set of social relationships among brand users.

For e.g. we experience an instant bonding with a stranger who wears our brand of watch.

Hybrids and holistic experiences occur not only at the macro level but also at the micro level of the firm. Further both hybrids and holistic experiences are built via a process called Experiential Wheel.

Both Hierarchies are explained in accordance with the SEM( Strategic experiences modules) of sense, feel, think, act, relate.

EXPERIENTIAL HYBRIDS AND HOLISTIC EXPERIENCES

Holistic Experiences

Experiential hybrid( indiv.)

Experiential hybrid ( shared)

SENSE FEEL THINK ACT RELATE

The Experiential Hierarchy :

EXPERIENTIAL HYBRIDS

Individual-experience hybrids SENSE/FEEL

SENSE/THINK

FEEL/THINK

Individual/shared Hybrids

SENSE/ACT

SENSE/RELATE

FEEL/RELATE

FEEL/ACT

THINK/RELATE

THINK/ACT

Shared-experience hybrids

RELATE/ACT

STRATEGIC ISSUES OF EXPERIENTIAL MARKET

1. Which SEM? [To focus on appropriate SEM]

2. Strategic issues related to experiential grid.

3. Experiential Branding----Creating identities for product lines and for entire corporations

4. New products and brand extensions----3 factors:• Degree to which the experiential image of the company or

brand is enhanced• Degree to which new products add new experiences• Degree to which they help in creation of holistic

experiences.

5. Global Experiential Branding

Characteristics of the Experience-Oriented Organizations

• The Dionysian Culture----passionate-creative nature

How to create such a culture in the organization?

i. Objective : To Dream

ii. Send in the Iconoclasts

iii. Quit the Bull

iv. Infiltrate the Organization• Creativity and Innovation• Taking the Helicopter view----focusing on long-term trends• Attractive physical environment----physical surroundings at

work• Experiential growth for employees----view employees as

human capital• Integration in working with agencies

Application of experimental marketing

• In experimental marketing a company want to build their brand as experience providers so it focuses on creativity, innovation, long-term trends, pays attention to its physical environment & views employee as human capital.

• It’s time to fully understand that your customer are living, breathing creatures who want a one-to-one relationship with your company not just one way rhetoric because Consumer are looking for brands that provides them with experience & thus become part of their lives.

• So for that company can use experimental marketing to build their brand through Sense, Think, Feel, Relate or Act experiences.

• In SENSE experience marketer creates a powerful sensory experiences that differentiate company & products, motivate customer & convey value to them.

• In THINK experience marketer tries to stimulate consumer curiosity & arouse intrigue through engage his creative thinking. like Tropicana juice says ‘100% JUICE’ means may be other juice brands uses preservatives & added sugar.

• In FEEL company can provide variety of forms & induce the feeling & provide the right level of stimulation for feelings. It makes customer to respond in an emotional manner. E.g. on Nano launch TATA told the reason (emotional story) behind the inventing this car which stimulate a emotional touch in customers.

• In RELATE company tries to get customer to think about relationship & relate other people through this. As zodiac said ‘An HONEST Shirt’ that relate person’s personality with their brand. So creating a social identity for customer.

• As ACT experience move beyond the realm of sensation, affect & cognition so it generally result from public interaction. it tries to make customer think about their lifestyle & remind them their activities which thy can do.

• so in conclusion, experimental marketing is totally different from traditional marketing which understand that customer are living human being with experiential need. So, marketer try to capture it’s target market & build their brands with sensory, affective, cognitive experiences, actions & relations.