With the development of society, technology, increasing competition, and the increasing expectations of consumers, the people are more concerned about the quality of life and the level of satisfaction on the psychology and spirit. According to Pine and Gilmore (1999, p.11), goods and services are no longer enough. The Service Economy is peaking. Therefore, Experience Economy is created following the Agrarian Economy, the industrial economy and service economy in order to adapt the demand of customers. In the Experience Economy, experiences motivate the economy and therefore produce more of the basis of demand for goods and services. So experience is a way that “company uses services as the stage, and goods as props, to engage individual customers in a way that creates a memorable event ”(Pine and Gilmore, 1999). This essay is based on the theory of experience marketing and combines the definition of retail marketing mix to explain that how to successful apply experience marketing in the retail shore. Two retail stores were compared to show the application of experience marketing.
In contemporary retail, Malcom Allan mentioned that Experience retail combines very innovative forms of delivering the retail experience together with the leisure, entertainment and cultural experiences that consumers can satisfy many of their needs, wants and aspirations for the products, services and experiences that they require for their lifestyle and self-image. (Malcolm Allan). Pine and Gilmore, (1999) also explained that “Experiences are events that engage individuals in a personal way”. Experiences happen only in the individual mind. There are no two people can have the same experience, because each experience derives from the interaction between the staged event and the individual 's state of mind.
Thus, in a competitive environment, experience marketing could help contemporary retail gain differentiation and competitive advantages, attract more customers and improve customer loyalty, make more profit (Rattoo, 2011). At the same time, through the experience marketing continually deliver the advantages of productions or brand.
Pine and Gilmore (1999) identified five key experience-design principles: theme the experience, harmonize impressions with positive cues, eliminate negative cues, mix in memorabilia and engage all five senses. Beside, before of that the contemporary retail also should consider the retail marketing mix from the following aspect: store location, merchandise, store ambience, customer service, price, communication, personal selling, store image and sales incentive. (Omar, 1999). Because retailers have to take strategic decisions regarding where they wish to operate. These will include decisions on the target customers that they hope to attract. Directly dependent on the strategic choice will be the tactical decisions within the retail marketing mix (Sullivan, 2002).
Observation and evaluation of contemporary retails
Through the observation of Starbucks and café, combination of the theories to evaluate the two coffee stores.
Firstly, from the observation of Starbucks and Café to estimate the application of some elements of retail marketing mix.
Based on the theory, “The retail marketing mix refers to the various elements of retail marketing, which are employed in retail marketing campaigns to create a favourable image of both retailer and the product on offer in the perception of shoppers.” (Omar, 1999) Thus, the retailer should be thoughtful market demands and opportunities. Beside, the retailer should understand customer purchase motives and habits, and develop satisfactory relations with customers, as more as possible to satisfy the demands they want. Such as when, how, and where they want them, and at the prices they are willing to pay. (Omar, 1999)
Elements of retail marketing mix to evaluate the Starbucks and Café.
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