Experiential Marketing

Only available on StudyMode
  • Download(s) : 225
  • Published : May 8, 2011
Open Document
Text Preview
[pic]

English Language Unit
Pre-sessional 2010

THE EXPERIENTIAL MARKETING
The experiential marketing in entrainment and tourism industry

Written Project

By

Qi Mi

Student ID: 200744344

2nd September 2010

Supervisor: Lucia Brandi
Declaration

The work contained in this project is my own and has not been submitted for any other qualification.

All sentences and passages quoted from published sources have been specifically acknowledged by referencing to author, work and page(s).

Name: Qi Mi
Signature:
Date: 2nd September 2010

Contents

1. Introduction……………………………………………………………1

2. Definition………………………………………………………………1

3.1Difference……….…………………………………….………………2

3.2 Experiential Strategies……………………………………………….3

3.3 Experiential marketing for tourism industry…………………………4

4. Conclusion………….…………………………………………………5

References……………………………………………………………….6

1. Introduction
As a new marketing model, Experiential Marketing had developed many years, and has been a complete theoretical system right now. Schmitt, (1999, p.53) states that “Experience economy is everywhere, In a variety of industries, companies have moved away from traditional ‘features-and-benefits’ marketing toward creating experiences for their customers.” Although the concept of the experience economy was born in the business field, it has crossed its frontiers to tourism, architecture, nursing, urban planners and other fields. (Pine & Gilmore, 1999)

This paper will be divided into three main parts. First, it will introduce the relevant theories of experiential and the differences between traditional marketing and the new one. And the second part will discuss the strategies of experiential marketing. Then, it will give some advices about Xi’an tourism industry in the last part. Specifically, it will also use the example of Disneyland and the Tang palace restaurant to illustrate the marketing of “experience”.

2. Definition
Experiential marketing is a new way of marketing. Experiential Marketing from the consumer's Sense, Feel, Think, Act, Relate, and re-definition, designs a new marketing thought. (Schmitt, 1999) Businesses should organize memorable events for their customers, and that memory itself becomes the product—it can be viewed as the "experience". More and more experience businesses start charging for the value of the "transformation", which is an experience offers, e.g. as education offerings might do if they can partake in the value that is created by the educated individual. It is a natural progress in the value added by the business over and above its inputs. (Pine & Gilmore 1999)

3.1 Difference
How do marketing change? It can be seen that the whole history of marketing progress which had mentioned by Schmitt (1999). ‘Experiential marketing’ can be summarized briefly in the four-stage evolution. • A commodity business.

• A goods business.
• A service business.
• An experience business.
What’s the difference of the four stages? As Schmitt (1999) pointed out that it could be explained with a kind of product which is so common---coffee. As a commodity, the coffee beans, at the time of this writing, the price on the futures market was $1.458 USD per pound, and this could be translated into 2 or 3 cents a cup. If they were sold with packages and marketed as a brand, this turned them into goods. Italian Style Espresso coffee beans were sold on eBay for $ 7.8 USD per pound which was about 15 cents a cup. In terms of service, a cup of Espresso in Starbucks was $2.75 USD. So, it can be seen that coffee can be any of three marketing offerings---- commodity, goods or service. However, the same kind of coffee can be marketed as an “experience”, i.e. the experience of taking a cup of coffee in a five-star restaurant. In that case, consumers may happily to pay from $5 USD to $20 USD for each cup. Sometimes people cannot distinguish the experience from service,to be fully aware of the difference of...
tracking img