The Experience Economy

Presented by Aj Scott Smith

MUIC Lecture

William Ury

“The 3rd side helps us go to the balcony”William Ury

http://www.ted.com/talks/william_ury.html

Joseph Pine-Thomas Thijssen-Scott Smith

2 degrees of Separation ?

Chapter 1- Introduction

Key Points:Coffee ProgressionProgression of Economic ValueKotler feels differently…A new generation of the experience

economy, co-creation.Meaningful experiences

*Tips Read 1.4 and 1.5

http://www.ted.com/talks/lang/eng/joseph_pine_on_what_consumers_want.html

Pg2 “Their thesis is as soon as a country reaches a certain level of affluence, the attention shifts from goods and services to experiences”.

Chapter 2Meaningful Experiences

• The Ultimate Experience• Motivation (Maslow) pg 25• 5 senses• 6 Characteristics of a meaningful

experience

*Tip-Read 2.1.4 and 2.2

It’s OK to disagree

Asian Paradigm? GenY?

EngagementMotivation

• Making numbers• Getting to the Top• Famous• Wealthy• Powerful• Others want what you’ve got• Others copy you• People offer you more for doing less

• Good Health• Knowing my friends• Being Loved & Appreciated• Helping others• Green Issues• Safety and Harmony• Time and Money to do what I enjoy• Not having to worry about Money

Discussion(2 minutes)

What is your personal definition of

‘experience’ ?

Discussion(2 minutes)

What are the most significant personal

experiences that have determined the

course of your life?

Discussion(2 minutes)

What are the most significant social

experiences that you will never forget?

Discussion(2 minutes)

What are the most significant

experiences that you have paid for and will

never forget?

Howcan experiences be

created and offered to customers (students)?

Chapter 3Meaningful Experiences in Society

Context of giving meaning to thingsPersonal, Socio-cultural, Physical

Watersheds in Human existence pg 39Moens’ Fundamental Developments (Trends)

In your opinion what are the five most important

developments currently taking place among young

people?

Chapter 4The role of companies in giving meaning

Examples of Eatertainment

“No, I don’t want to go pay 12 dollars for a small crappy burger just so I can say I ate there but we can run in and get t-shirts.”– My Brother every time we are on vacation

Eatertainment is the best example of goods/service/entertainment all together. Guests go in typically for dinner and leave with memories and souvenirsrtainment= Dinner show/movie themes/ jungle noises

Experience Economy

Wrap offerings with experiences for higher levels of differentiation and profit

Experiences on physical, emotional, intellectual or even spiritual levels

Experiences won’t be the same for any two people

Spreads beyond theatres and theme parks:

Hard Rock Café, Planet Hollywood Niketown Geek Squad

“to go beyond the function and compete on the basis of providing experience”- Sir Colin Marshall, Chairman, British Airways

the experience economy

The New Paradigm for Brands

the experience economy

The New Paradigm for Brands

Prepared by Heather White-LairdExecutive Creative Producer, iCrossing

Prepared by Heather White-LairdExecutive Creative Producer, iCrossing

“mass marketing is dead” Alan Lafley, CEO of Proctor and Gamble

advertisingcan

no longer exist by

blasting messages

to an audience

prior to the internet it was a

people to people world

there were smiling shoe salesmen

now the relationship is digital

there were kindly bank tellers

now it’s all done online

in just the last two years,

there has been a fundamental shift

in how we experience

the world

people want to be part of a community& brands need to participate in that conversation

Joseph Pine and James Gilmore

once our

basic needs

are met…

We seek an emotional experiencewe seek an emotional experience

this doesn’t satisfy us anymore

it’s all about the relationshipit’s all about the relationship

and instead of this

we seek a financial friendwe seek a financial friend

a brand is not a place, it’s a direction John Gerzema, Chief Insights Officer, Young & Rubicam

for decades the mantra was always show the product

always show the

product

or show someone famous with your product

now product takes a back seat to experience

service vs. experience

A business model based on happiness

Do we really need more proof that we live in an experience economy?

Chip Conley told us about the development of his company Joie de Vivre Hospitality, with which he won the world’s ‘Experience Stager of the Year’ award in 2001. He creates niche boutique hotels dedicated to the adjectives described in a lifestyle representing magazine.

Brands are mirrors! the whole corporate culture thathe designs by working with, among others, ‘work climate surveys’ and an ‘open door policy’ for which he won the 6th ‘Best Company to Work for in California’ award.

http://www.jdvhotels.com/

http://www.ted.com/talks/lang/eng/chip_conley_measuring_what_makes_life_worthwhile.html

Typical Business Cards? No more!

Questions?

A man of 92 years, short, very well-presented, who takes great care in his

appearance, is moving into an old people’s home today.

After waiting several hours in the retirement home lobby, he gently smiles

as he is told that his room is ready.

His wife of 70 has recently died, and he is obliged to leave his home.

As he slowly walks to the elevator, using his cane, I describe his small room to him, including the sheet hung at the window which serves as a curtain.

"I like it very much", he says, with the enthusiasm of an 8 year old boy who has

just been given a new puppy.

"Sir, you haven’t even seen the room yet, hang on a moment, we are almost

there. "

" That has nothing to do with it ", he replies.

" It is already decided in my mind that I like my room. It is a decision I take every morning when I wake up. "

" Happiness is something I choose in advance. Whether or not I like the

room does not depend on the furniture, or the decor – rather it

depends on how I decide to see it. "

" I can choose. I can spend my day in bed enumerating all the difficulties that I have with the parts of my body that no longer work very well, or I can get up and give thanks to heaven for those parts that are still in working order. "

" Every day is a gift, and as long as I can open my eyes, I will focus on the new day, and all the happy memories that I have built up during my life. "

" Old age is like a bank account. You withdraw in later life what you have

deposited along the way. "

So, my advice to you is to deposit all the happiness you can in your bank account

of memories.

Thank you for your part in filling my account with happy memories, which I

am still continuing to fill…

1. Free your heart from hate.

5. Expect less.

4. Give more.

3. Live simple.

2. Free your mind from worry.

Remember these simple guidelines for happiness.

Niche Tourism 101

Jorge Colombo

SPECIAL INTEREST TOURISM

• Mass Tourism: Conventional tourism involving large numbers of tourists in staged settings

• Niche Tourism: Special Interests, culture, and/or activity-based tourism involving a small number of tourists in authentic settings

Cultural• Heritage• Tribal• Religious• Educational• Genealogy• Research

Environmental• Nature and wildlife• Ecotourism• Adventure• Coastal

Rural• Farms• Camping• Wine• Sport• Festivals and events

Urban• Business• Conference• Exhibition• Sport• Gallery• Art

Others• Photographic• Small Cruise• Volunteer• Youth• Transport

NIGHT VIEW OF BANGKOK

Principles of Ecotourism:• Minimize impact. • Build environmental and cultural

awareness and respect. • Provide positive experiences for both

visitors and hosts.• Provide direct financial benefits for

conservation. Provide financial benefits and empowerment for local people. 

• Raise sensitivity to host countries' political, environmental, and social climate.

Responsible Travel Myths

I have to sacrifice quality and luxury of accommodations.

It's expensive! It's too difficult to be a responsible

traveler. It means traveling to tropical

jungles. It's for backpackers.

Extreme Tourism

• Extreme tourism or impact tourism is including a kind niche tourism clearance to the dangerous places (mountains, jungle, deserts, caves, etc.) or participation with into dangerous cases.

Patagonian Desert

Canoe on the Amazon River

Rock Climbing in Pakistan

Fashion Tourism

• Paris• Milan• New York• Tokyo• Shanghai• Sydney

Champs Elysees, Paris

Milan Luxury Shopping Arcade, Italy

ARCHITECHURE

• Chicago

Ginza, Tokyo