Experiential Marketing2
Experiential Marketing2
Experiential Marketing2
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7th International Scientific Conference ISSN 2029-4441 print / ISSN 2029-929X online
Business and Management 2012 ISBN 978-609-457-116-9 CD
May 10-11, 2012, Vilnius, LITHUANIA doi:10.3846/bm.2012.063
http://www.bm.vgtu.lt
Vilnius Gediminas Technical University, 2012
Abstract. Despite the fact that experiences are regarded as key concepts in marketing today, there are dif-
ferent views and interpretations about the content of terms. The main objective of this article is to analyse
the concepts of experience and experiential marketing. Based on the literature review the authors found
that experience marketing is a strategic and a broader term than experiential marketing. We define experi-
ence marketing as a strategic and holistic marketing of relevant (and meaningful) experiences, and expe-
riential marketing as a tactical tool that helps to do marketing experientially. At the end of the article a
conceptual model of experience marketing is proposed.
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S. Same, J. Larimo
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MARKETING THEORY: EXPERIENCE MARKETING AND EXPERIENTIAL MARKETING
482
S. Same, J. Larimo
Experience marketing offers engaging, interac- the same time they use exactly the same definition
tive, and entertaining brand experiences. Brakus for experiential marketing.
et al. (2009) define brand experience as subjective,
internal consumer responses (sensations, feelings, 4.2. The difference between experience and
and cognitions) and behavioural responses evoked
experiential marketing
by brand-related stimuli that are part of a brands
design and identity, communications, and environ- The formation of experience marketing is a proc-
ments in which the brand is marketed or sold. ess from a stimulus up to a change in customer
Experience marketing is also related to con- behaviour, learning or attitude. Experiences occur
sumer behaviour theory. Consumer behaviour as a in response to some stimulation (Schmitt 1999a),
field has expanded to three dominant speciali- e.g. marketing mix. The stimulus can be interper-
zations (subfields): consumer information proce- sonal (between people) or intrapersonal (within a
ssing, consumer culture theory, and behavioural person); it can be marketing stimulus (e.g. 4P) or
decision theory (MacInnis, Folkes 2010). These environmental (e.g. economic, technological, cul-
subfields have all provided consumer insights on tural).
experiences. However, Schmitt (2010) regards that For its subjectivity experiences depend on the
also two other main marketing disciplines (mar- expectations and values of the customer (Tars-
keting strategy and marketing models) have also sanen, Kylnen 2007). Experience can involve a
contributed to experience marketing in addition to perception on which one builds his/her own state
consumer behaviour. of reality; a reality based on his/her interaction
According to Schmitt (2010) the key concepts with the environment (Fig. 1).
of experience marketing are: 1) experiential value,
2) different types of experiences, 3) the distinction
between ordinary and extraordinary experiences,
and 4) experience touchpoints. Consumer beha- Stimulus, Perception, Environ-
marketing mix values ment
viour and experience marketing fields are open to
adjoining disciplines, e.g. psychology, economics,
communications, sociology, anthropology, and Particular experience
Affection (what do you feel?)
culture. These fields may be useful to better under-
stand consumer behaviour and experience marke- Experiential marketing
ting.
Meaningful relationship Change
or satis-
4.1. Definition Life situation faction
To simplify, as the wording suggests, the focus in
experience marketing is on experience. The other Cognition
important components are the customer and ex- Affection Behav-
Conation iour
perience co-creation. Experience marketing can
create emotions by making entertainment for cus-
tomers, by allowing them to escape from the real- Meaningful experience
(what do you know, feel, want?) Value co-
ity, by educating them and giving them aesthetic
creation
objects or places to see (Pine, Gilmore 1999). Experience marketing
The diverse perspective and translations on ex-
perience has made it difficult to understand the con- Fig.1. The difference between experience and experien-
cept and also define experience marketing. There is tial marketing (Source: adaption of Leppiman, Same
no consensus today on what the term experience 2011)
marketing refers to, and the context in which it is
used. Lee et al. (2010) explain that experience mar- A customer creates meaning to all he/she per-
keting aims to request marketing staff to emphasize ceives. Experience represents a meaningful rela-
the overall experience quality for consumers passed tionship between a persons perceptional activity
by brands, including rational decision-making and and a life situation, and is of particular signifi-
sentimental consumption experience. Baron et al. cance to the person (Perttula 2007). When the cus-
(2009) define experience marketing as the creation tomer experiences something to be important, this
of a memorable episode based on a customers di- forms his/her life situations consisting of every-
rect personal participation or observation. But at thing he/she is in meaningful relationship (Leppi-
man, Same 2011). Experiences are formed out of
483
MARKETING THEORY: EXPERIENCE MARKETING AND EXPERIENTIAL MARKETING
these relationships and life situations. Fortezza and meaning), emotional response (emotional experi-
Pencarelli (2011) call it packaging moments of ence), and aesthetic pleasure (aesthetic experience).
life. These experiences influence value co-creation, pur-
Experiences may result in changes in attitude chase decisions and behaviour.
or behaviour. Customer attitude consists of three At the level of meaning, cognition comes into
components: cognitive (mental images, understand- play. Desmet and Hekkert (2007) confirm that
ing, interpretations), affective (feelings, emotions), contrary to popular belief, an emotion is the result
and conative (intentions, actions, behaviour). The of a cognitive, though often automatic and uncon-
most common sequence that takes place when an scious, process.
attitude forms is cognitive affective cona-
tive (Clow, Baack 2007). This sequence can form
a meaningful and relevant experience. Meaningful Offering or stimulus Elements
experience is composed of feelings, knowledge of experi-
and beliefs (Leppiman, Same 2011). Thus, mean- ence
Customer
ingful experience is broader than particular, which Value to
is mainly related to emotions and feelings, as seen customers
on Fig. 1. A holistic experiential feeling may lead Interaction Experience
to changes in personal opinions and attitudes of a and value Value to
customer. Fig. 1 highlights that the platform of co-creation, company
experience marketing is strategic and larger than (and
Company (brand, behaviour)
experiential marketing.
product, service)
Value to
4.3. Conceptual model of experience marketing society
Actions and
An experience is important in business and tech- processes Levels of
nology because to the mind every economic offer- experience
ing is experienced (Van Doorn 2006). Experience Context, (meaning, emo-
environment tional response,
is broadly speaking an interaction between a com- aesthetic pleasure)
pany (brand/product/service) and a customer. Ex- Marketing mix
perience is shaped by the characteristics of the
customer and those of the product, company or
Fig. 2. Conceptual model of experience marketing
brand. Desmet and Hekkert (2007) explain that
all actions and processes that are involved, such
as physical actions and perceptual and cognitive The ultimate outcome for the company is e.g.
processes (e.g. perceiving, exploring, using, re- sales, value added, loyalty, etc. There is also out-
membering, comparing, and understanding), will come for the customer and ultimately to society.
contribute to the experience. Tynan and McKechnie (2009) assert that experi-
Consumer behaviour is influenced by internal ence marketing can deliver sensory, emotional,
influences, e.g. demographics, personality, motiva- cognitive, behavioural and relational value to cus-
tion, knowledge, attitudes, beliefs, and feelings. The tomers, to which social and information based
behaviour is also influenced by external influences, value can be added.
e.g. culture, past experience, lifestyle, marketing In 2007 the American Marketing Association
mix. Psychological factors include individuals mo- adopted a new official definition of marketing
tivation, perception, attitude and belief, while per- (Keefe 2008): Marketing is the activity, set of
sonal factors include income level, personality, age, institutions, and processes for creating, communi-
occupation, lifestyle, etc. In addition, the experience cating, delivering, and exchanging offerings that
is always influenced by the context environment have value for customers, clients, partners, and
in which the interaction takes place. society at large. This definition also supports the
model.
The most important parts of the model (Fig. 2)
are: 1) offering or stimulus, 2) interaction between
the customer and company, 3) experience and 5. Discussion
value co-creation, 4) value. We believe these are
Experience marketing is more complex than the
the cornerstones of experience marketing.
traditional marketing of the post-industrial era
Hekkert (2006) distinguishes three levels of ex- (Fortezza, Pencarelli 2011). We claim to have ex-
perience: attribution of meaning (experience of perience-driven organizations, experience-oriented
484
S. Same, J. Larimo
strategy and experience-based activities using the the terms. Experience is an economic offering and
word experience, but still many authors use ex- an interaction between the company/brand/service,
periential marketing (for the whole approach) and customer, who perceive and meaningfully ex-
while knowing that everything is based on experi- perience it. Experience marketing is strategic (cus-
ences. As for parts of speech, experience is a tomer-centric) and holistic marketing of relevant
noun and a verb, while experiential is an adjec- (and meaningful) experiences that takes into ac-
tive. The companys marketing approach and ac- count the affective, cognitive and conative per-
tivities can be experiential in nature, but every- spectives of consumption experience. Experiential
thing is based on experience(s) or driven by marketing as a marketing planning tool is con-
experiences. The authors of this article recommend cerned on tactical and operational level actions
the wider use of the term experience marketing, where the main question is how to do marketing
because at the broadest level it is strategic market- (campaign) experientially.
ing, a field of study, a broader concept referring to Experience marketing is strategic marketing
the world of experiences. In this article the term management and is used to manage customer in-
strategic marketing is used in reference to the field teraction, cross-channel exposure, and value co-
of study and marketing strategy in reference to the creation. We found that experiential marketing
organizational strategy construct and the latter focuses on tactical and operational level actions
may be defined as organizations integrated pat- where the main question is how to do marketing
tern of decisions (Varadarajan 2010). experientially. To be successful, Poulsson and
Experiential marketing is part of experience Kale (2004) argue that a marketing experience
marketing. Experiential marketing is a tactical, should have personal relevance for the customer,
rather than a strategic approach that marketers be novel, offer an element of surprise, engender
should consider central to their integrated market- learning and engage the customer.
ing communications plans, including techniques, Fig. 1 presents the formation of experience
which are part of the core experience marketing marketing and should assist marketing profession-
strategy. Experiential marketing shows us the als to understand the difference between the terms.
ways how managers can create experiences Here are two important dimensions: experiential
(Schmitt 2003). Smilansky (2009) explains that marketing (connected to particular experience and
experiential strategy is the campaigns main con- affection) and experience marketing (connected to
cept. Through the best practices Smilansky (2009), meaningful experience; cognition, affection, and
Schmitt (2003), and other authors show how to conation). Our analysis of the literature leads us to
involve and engage the audience. conclude that experience marketing is more com-
We can conclude that experiential marketing is prehensive in scope and strategic in nature than
limited in scope, and more executive in nature, e.g. experiential marketing. Experience marketing is
it may consist of a single campaign or involve only holistic and seeks to understand the value of cus-
one media channel. The focus of experiential mar- tomer experiences and besides affective perspec-
keting is on specific business objectives, largely tives regards cognitive and conative perspectives.
on creating or modifying the environments in This observation is important in order to under-
which customers interact. Tactical decisions are stand the difference between the terms.
marketing mix decisions (e.g. promotion, commu- The conceptual model (Fig. 2) is a figurative
nication) and they define how the strategic deci- representation of the domain and thus attempts to
sions will be implemented (Varadarajan 2010). explain the essence of experience marketing. The
Everything marketers do is experiential at some model should assist marketing professionals to
level from the brand identity creation to the pack- understand the essence of experience marketing.
aging, store design, media communication, or Web The consensus on what does and does not
site. These are tactical decisions and activities. Ex- constitute experience marketing and what distin-
perience marketing is strategic marketing of experi- guishes it from other fields is far from clear. Fur-
ences (according to Pine and Gilmore (2002) the ther empirical research is needed to analyse the
experience is the marketing). Experiential market- specific dimensions of experience marketing and
ing helps to market experiences, answers the ques- explore the relationships between the elements.
tion how to do marketing experientially. More research is needed to fully understand the
experience construct and its impact on customers.
For example, according to Walls et al. (2011), ad-
6. Conclusions ditional exploration is needed to understand the
Drawing from the extant literature and considering relationship between experiences, emotions, cog-
all most relevant scientific contributions we define nition, and multisensory elements. Also openness
485
MARKETING THEORY: EXPERIENCE MARKETING AND EXPERIENTIAL MARKETING
to adjoining disciplines can add insights to experi- Experience Components that Co-create Value with
ence marketing. the Customer, European Management Journal
Finally, we proposed a conceptual model of 25(5): 395410.
experience marketing that should be tested empiri- http://dx.doi.org/10.1016/j.emj.2007.08.005
cally. Marketers need to understand the conceptual Gilmore, J. H.; Pine, B. I. 2002. Customer experience
framework and principles of experience market- places: the new offering frontier, Strategy and
Leadership 30(4): 411.
ing, because experience marketing is the only way
http://dx.doi.org/10.1108/10878570210435306
to gain competitive advantage in tough competi-
Grewal, D.; Levy, M.; Kumar, V. 2009. Customer ex-
tion. From the companys perspective it is useful perience management in Retailing: An organizing
as a differentiation strategy. Experience marketing framework, Journal of Retailing 85(1): 114.
can lead to greater impact for the customer, in- http://dx.doi.org/10.1016/j.jretai.2009.01.001
creased effectiveness, and even cost savings com- Hauser, E. 2007. Brandweek: Experiential Marketing,
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Available from Internet:
http://ixma.org/articles/brandweek072607.pdf
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