Experiential Marketing
2. Marketing a) With reference to the readings below and your own literature research, outline and critically assess the idea of ‘Experience marketing’ and discuss how it might impact on the way which we market into the future. (70 marks)
Experiential marketing is everywhere. In a spectrum of industries, companies have moved away from traditional marketing and moved toward experiential marketing. Building on Arnould and Price’s well-known “River Magic”(1993) paper on extraordinary experiences, marketers strive to engage consumers in a memorable way, offering them ‘extraordinary’ experiences to boost the desirability of their products. According to marketers, experiences provide consumers a way to engage physically, mentally, emotionally, socially and spiritually (Ames 1910) in the consumption of the product or service, making the experience with the product memorable and thus, worthy of purchase.
Why is Experiential Marketing Important?
There are four main causes for the emergence of experiential marketing. Firstly, all companies use traditional media to advertise their products. Thus, because of this abuse of traditional media, a different strategy is necessary for one company to be able to stand out from its competitors (Schmitt 1999). Secondly, it has become difficult for companies to compete for a fixed market share and at the same time, differentiate their products solely on mere product or brand characteristics. Thirdly, consumers are now more keen on marketing communications that are relevant for them as an individual and recognize their need for novelty items (Schmitt 1999). Fourthly, there is a growing need amongst consumers to be a part of the experiential aspects of consumption (Holbrook 2000; Holbrook and Hirschman 1981). This results in a less rational and more hands-on decision-making consumer (a total opposite to what traditional marketing assumes). This pivot in consumer nature calls for a different marketing
Experiential marketing is everywhere. In a spectrum of industries, companies have moved away from traditional marketing and moved toward experiential marketing. Building on Arnould and Price’s well-known “River Magic”(1993) paper on extraordinary experiences, marketers strive to engage consumers in a memorable way, offering them ‘extraordinary’ experiences to boost the desirability of their products. According to marketers, experiences provide consumers a way to engage physically, mentally, emotionally, socially and spiritually (Ames 1910) in the consumption of the product or service, making the experience with the product memorable and thus, worthy of purchase.
Why is Experiential Marketing Important?
There are four main causes for the emergence of experiential marketing. Firstly, all companies use traditional media to advertise their products. Thus, because of this abuse of traditional media, a different strategy is necessary for one company to be able to stand out from its competitors (Schmitt 1999). Secondly, it has become difficult for companies to compete for a fixed market share and at the same time, differentiate their products solely on mere product or brand characteristics. Thirdly, consumers are now more keen on marketing communications that are relevant for them as an individual and recognize their need for novelty items (Schmitt 1999). Fourthly, there is a growing need amongst consumers to be a part of the experiential aspects of consumption (Holbrook 2000; Holbrook and Hirschman 1981). This results in a less rational and more hands-on decision-making consumer (a total opposite to what traditional marketing assumes). This pivot in consumer nature calls for a different marketing
Cited: Bernd Schmitt (1999): Experiential Marketing, Journal of Marketing Management, 15:1-3, 53-67. Accessed 19 November 2012. http://www.tandfonline.com/doi/abs/10.1362/026725799784870496 Secondary Sources Fournier, S., Dobscha, S. and Mick, D.G. (1998) ‘Preventing the Premature Death of Relationship Marketing’, Harvard Business Review pp. 42–51. Holbrook B. M. and Hirshman C. E. (1982). “The Experiential Aspects of Consumption: Consumer Fantasies, Feeling and Fun”, Journal of Consumer Research. Vol.9, September, pp.132-140 Hollis M