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Experiential
          Marketing

  Dr. D. Selcen Ö. Aykaç
Overview of Presentation
evolution of   Experiential Economy
What is Experiential Marketing
create experiential    …
Strategic Experiential Modules
Your ideas



                         Dr. D. Selcen Ö. Aykaç   2
Baking
cake
at
home
         Dr. D. Selcen Ö. Aykaç   3
Boxed
Cake




Dr. D. Selcen Ö. Aykaç   4
Cake from
                         Bakery


Dr. D. Selcen Ö. Aykaç               5
Birthday
                         Organization:
                         Cake comes
                         free!




Dr. D. Selcen Ö. Aykaç                   6
Dr. D. Selcen Ö. Aykaç   7
Performing
                                             experiences
                                  Offering
                                  services
              Making
              goods

Producing
commodities




                  Dr. D. Selcen Ö. Aykaç                   8
Performing
                                             experiences
                                  Offering
                                  services
              Making
              goods

Producing
commodities



                                  Pricing
                  Dr. D. Selcen Ö. Aykaç                   9
Experiential
Differentiation          Economy


                                                                Performing
                                                                experiences
                                                Offering
                                                services
                            Making
                            goods

              Producing
              commodities



                                                Fiyatlandırma
                                Dr. D. Selcen Ö. Aykaç                        10
Differentiation   ≈ Competitive Position


                                                                Performing
                                                                experiences
                                                Offering
                                                services
                            Making
                            goods

              Producing
              commodities



                                                Fiyatlandırma
                                Dr. D. Selcen Ö. Aykaç                        11
commodity   goods                     services   experiential
economy   agrarian    industrial                service    experience




                       Dr. D. Selcen Ö. Aykaç                             12
commodity   goods                     services   experiential
economy    agrarian    industrial                service    experience
economic   producing   making                    offering   performing
activity




                        Dr. D. Selcen Ö. Aykaç                             13
commodity   goods                     services     experiential
economy    agrarian    industrial                service      experience
economic   producing   making                    offering     performing
activity
nature     barter      tangible                  intangible   memorable




                        Dr. D. Selcen Ö. Aykaç                               14
commodity   goods                     services     experiential
economy    agrarian    industrial                service      experience
economic   producing   making                    offering     performing
activity
nature     barter      tangible                  intangible   memorable

feature    natural     standardized              privatized   personalized




                        Dr. D. Selcen Ö. Aykaç                               15
commodity    goods                     services     experiential
economy    agrarian     industrial                service      experience
sconomic   producing    making                    offering     performing
activity
nature     barter       tangible                  intangible   memorable

feature    natural      standardized              privatized   personalized
supply     storage by   inventorization offered on             revealed only
method     volume       after           demand                 after a
                        production                             certain
                                                               duration


                         Dr. D. Selcen Ö. Aykaç                                16
commodity    goods                     services     experiential
economy    agrarian     industrial                service      experience
sconomic   producing    making                    offering     performing
activity
nature     barter       tangible                  intangible   memorable

feature    natural      standardized              privatized   personalized
supply     storage by   inventorization offered on             revealed only
method     volume       after           demand                 after a
                        production                             certain
                                                               duration
seller     trader       manufacturer              provider     performer
                         Dr. D. Selcen Ö. Aykaç                                17
commodity    goods                  services     experiential
economy    agrarian     industrial             service      experience
sconomic   producing    making                 offering     performing
activity
nature     barter       tangible               intangible   memorable

feature    natural      standardized           privatized   personalized
supply     storage by   inventorization offered on          revealed only
method     volume       after           demand              after a
                        production                          certain
                                                            duration
seller     trader       manufacturer           provider     performer
buyer      market       user Selcen Ö. Aykaç
                         Dr. D.
                                               customer     guest           18
Marketing




Dr. D. Selcen Ö. Aykaç
                           What is   ?   19
memorable
               MOMENT
                                        services




products
               Dr. D. Selcen Ö. Aykaç          20
Traditional Marketing

                             features
                      Functional
                      and benefits (F&B)



                                                    narrow definition
          analytical,                             of product categories
          quantitative                                and competition
          and
          verbal methods

                             Rational-decision
                             making customers
Schmitt                            Dr. D. Selcen Ö. Aykaç                 21
Traditional marketing has made
                    important contributions...

          Strategic concepts
                segmentation, targeting, positioning

          Tactical concepts
                4P – product, price, place, promotions

          Methods
                Choice model, conjoint analysis, perceptual maps


                    …but its focus is on F&B...
Schmitt                      Dr. D. Selcen Ö. Aykaç                22
…and the   world has
             changed
                            We are in the middle of the
                                       information revolution
           “Wholly new content will emerge from being digital”
                                                        - Nicholas Negroponte

           “Everything is entertainment”
                                                             - Regis McKenna

           “Welcome to the experience economy”
                                                           - Pine and Gilmore


Schmitt                        Dr. D. Selcen Ö. Aykaç

                                                             ”                  23
Experiential
          Marketing
                 customer   experience
                                             Focus on
                                                   consumption
              eclectic
                       methods

                      Customers are      rational
                           and         emotional animals

Schmitt                  Dr. D. Selcen Ö. Aykaç                  24
Moving
                    and
                        Over
                        Up                                            The
                                                           socio-cultural
                                                                 context
          The Socio-Cultural
                 Consumption Vector
     SC C V

                                                                      The
                     The                                   consumption
              product                                          situation


Schmitt                           Dr. D. Selcen Ö. Aykaç                    25
Define Experiential Marketing!
Sensory Experience          21%
Interaction                 19%
Relation                    16%
Memories                     7%
Information                  5%
Presence                     5%
Immediate                    5%
Response                     5%
Context                      4%
Trust                        3%
Reward                       3%
Community                    3%
Long term                    2%
Consumed                     1%
Referral                     1%               (Experiential Marketing Survey Results , 2007)
                     Dr. D. Selcen Ö. Aykaç                                                    26
(Heath & Heath, 2008)   Dr. D. Selcen Ö. Aykaç   27
• job definition • role




(Heath & Heath, 2008)   Dr. D. Selcen Ö. Aykaç   28
• job definition • role
 • interview            • audition




(Heath & Heath, 2008)       Dr. D. Selcen Ö. Aykaç   29
• job definition • role
 • interview            • audition
 • uniform              • costume



(Heath & Heath, 2008)       Dr. D. Selcen Ö. Aykaç   30
• job definition • role
 • interview            • audition
 • uniform              • costume
 • customer             • guest


(Heath & Heath, 2008)       Dr. D. Selcen Ö. Aykaç   31
• job definition • role
 • interview            • audition
 • uniform              • costume
 • customer             • guest
 • being at work • being at stage
(Heath & Heath, 2008)       Dr. D. Selcen Ö. Aykaç   32
Brand




Dr. D. Selcen Ö. Aykaç           33
two
                            approaches
          Brand (ID)                                 Brand (Experiential)
                                               experience provider
               identifier
                                                     name, logo, ad +
          name, logo and                events, sponsorships and
              ad                          other contacts w/guest

      prior to purchase                      experiences
   awareness and image                   before, during & after
                                        purchase & consumption
Schmitt                     Dr. D. Selcen Ö. Aykaç                      34
CREATE                   Experiential
                                                              …
                                   won’t happen on its own,
   comes first,                                plan
     followed by
     features and benefits

                experience
                                                   focus
    details                                    on consumption
 get obsessed about them
                                                situation,
                                                 not on product
                    find your
                                duck

                      Dr. D. Selcen Ö. Aykaç                      35
Strategic
 Experiential Modules

   SENSE

   FEEL

   THINK

   ACT

   RELATE


(Schmitt, 1999)   Dr. D. Selcen Ö. Aykaç   36
Strategic
 Experiential Modules

   SENSE

   FEEL

   THINK

   ACT

   RELATE


(Schmitt, 1999)   Dr. D. Selcen Ö. Aykaç   37
Strategic
 Experiential Modules

   SENSE

   FEEL

   THINK

   ACT

   RELATE


(Schmitt, 1999)   Dr. D. Selcen Ö. Aykaç   38
Strategic
 Experiential Modules

   SENSE

   FEEL

   THINK

   ACT

   RELATE


(Schmitt, 1999)   Dr. D. Selcen Ö. Aykaç   39
Strategic
 Experiential Modules

   SENSE

   FEEL

   THINK

   ACT

   RELATE


(Schmitt, 1999)   Dr. D. Selcen Ö. Aykaç   40
Brand Experience
          Factors


                                                SENSORY
                                                EMOTIONAL
                                                INTELLECTUAL
                                                BEHAVIORAL
(Brakus, Schmitt & Zarantonello, 2009)

                                         Dr. D. Selcen Ö. Aykaç   41
Thanks




Dr. D. Selcen Ö. Aykaç   42
“Experiential”                               works

                • “Activating E-Bank Users: Exploring the Potential Impact of e-Atmospherics and
         Experiential Marketing” case in Services Marketing: Concepts, Strategies and Cases, edited
         by K. Douglas Hoffman, John E.G. Bateson, Emma H. Wood & Alexandra J. Kenyon, Cengage
                                                Learning: London, UK, 2009. ISBN: 9781844808137.
           •   "Deneyimsel Pazarlama AVM’lerde! (Experiential Marketing in Shopping Malls),” AVM
                                                                            Gazette, Vol. 6., 2009.
               • “Activating E-Bank Users: Exploring the Potential Impact of e-Atmospherics and
        Experiential Marketing” case in Consumer Behavior, edited by Jim Blythe, Cengage Learning:
                                                        London, UK, 2008. ISBN: 9781844803811.
    •     “Students’ Experiences in Business Schools,” 27th EuroCHRIE Annual Conference, October
                                                                    22-24, 2009, Helsinki, Finland.
•        “Türkiye’de e-Bankacılık: Tüketici Deneyimleri (Turkish e-Banking: Consumer Experiences),”
           13. Ulusal Pazarlama Kongresi (13th National Marketing Congress), October 25-29, 2008,
                                                                                Cappadocia, Turkey.
•        ”Adopting the Experiential Values Propositions as E-atmospherics: An Illustration through
        the Case of E-banking,” 15th International EIRASS Conference on recent advances in Retailing
                                               and Services Science, EIRASS, July 14-17, 2008, Zagreb.


                                                                Dr. D. Selcen Ö. Aykaç   http://www.selcen.org
                                                                                                            43

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Experiential Marketing

  • 1. Experiential Marketing Dr. D. Selcen Ö. Aykaç
  • 2. Overview of Presentation evolution of Experiential Economy What is Experiential Marketing create experiential … Strategic Experiential Modules Your ideas Dr. D. Selcen Ö. Aykaç 2
  • 3. Baking cake at home Dr. D. Selcen Ö. Aykaç 3
  • 5. Cake from Bakery Dr. D. Selcen Ö. Aykaç 5
  • 6. Birthday Organization: Cake comes free! Dr. D. Selcen Ö. Aykaç 6
  • 7. Dr. D. Selcen Ö. Aykaç 7
  • 8. Performing experiences Offering services Making goods Producing commodities Dr. D. Selcen Ö. Aykaç 8
  • 9. Performing experiences Offering services Making goods Producing commodities Pricing Dr. D. Selcen Ö. Aykaç 9
  • 10. Experiential Differentiation Economy Performing experiences Offering services Making goods Producing commodities Fiyatlandırma Dr. D. Selcen Ö. Aykaç 10
  • 11. Differentiation ≈ Competitive Position Performing experiences Offering services Making goods Producing commodities Fiyatlandırma Dr. D. Selcen Ö. Aykaç 11
  • 12. commodity goods services experiential economy agrarian industrial service experience Dr. D. Selcen Ö. Aykaç 12
  • 13. commodity goods services experiential economy agrarian industrial service experience economic producing making offering performing activity Dr. D. Selcen Ö. Aykaç 13
  • 14. commodity goods services experiential economy agrarian industrial service experience economic producing making offering performing activity nature barter tangible intangible memorable Dr. D. Selcen Ö. Aykaç 14
  • 15. commodity goods services experiential economy agrarian industrial service experience economic producing making offering performing activity nature barter tangible intangible memorable feature natural standardized privatized personalized Dr. D. Selcen Ö. Aykaç 15
  • 16. commodity goods services experiential economy agrarian industrial service experience sconomic producing making offering performing activity nature barter tangible intangible memorable feature natural standardized privatized personalized supply storage by inventorization offered on revealed only method volume after demand after a production certain duration Dr. D. Selcen Ö. Aykaç 16
  • 17. commodity goods services experiential economy agrarian industrial service experience sconomic producing making offering performing activity nature barter tangible intangible memorable feature natural standardized privatized personalized supply storage by inventorization offered on revealed only method volume after demand after a production certain duration seller trader manufacturer provider performer Dr. D. Selcen Ö. Aykaç 17
  • 18. commodity goods services experiential economy agrarian industrial service experience sconomic producing making offering performing activity nature barter tangible intangible memorable feature natural standardized privatized personalized supply storage by inventorization offered on revealed only method volume after demand after a production certain duration seller trader manufacturer provider performer buyer market user Selcen Ö. Aykaç Dr. D. customer guest 18
  • 19. Marketing Dr. D. Selcen Ö. Aykaç What is ? 19
  • 20. memorable MOMENT services products Dr. D. Selcen Ö. Aykaç 20
  • 21. Traditional Marketing features Functional and benefits (F&B) narrow definition analytical, of product categories quantitative and competition and verbal methods Rational-decision making customers Schmitt Dr. D. Selcen Ö. Aykaç 21
  • 22. Traditional marketing has made important contributions... Strategic concepts segmentation, targeting, positioning Tactical concepts 4P – product, price, place, promotions Methods Choice model, conjoint analysis, perceptual maps …but its focus is on F&B... Schmitt Dr. D. Selcen Ö. Aykaç 22
  • 23. …and the world has changed We are in the middle of the information revolution “Wholly new content will emerge from being digital” - Nicholas Negroponte “Everything is entertainment” - Regis McKenna “Welcome to the experience economy” - Pine and Gilmore Schmitt Dr. D. Selcen Ö. Aykaç ” 23
  • 24. Experiential Marketing customer experience Focus on consumption eclectic methods Customers are rational and emotional animals Schmitt Dr. D. Selcen Ö. Aykaç 24
  • 25. Moving and Over Up The socio-cultural context The Socio-Cultural Consumption Vector SC C V The The consumption product situation Schmitt Dr. D. Selcen Ö. Aykaç 25
  • 26. Define Experiential Marketing! Sensory Experience 21% Interaction 19% Relation 16% Memories 7% Information 5% Presence 5% Immediate 5% Response 5% Context 4% Trust 3% Reward 3% Community 3% Long term 2% Consumed 1% Referral 1% (Experiential Marketing Survey Results , 2007) Dr. D. Selcen Ö. Aykaç 26
  • 27. (Heath & Heath, 2008) Dr. D. Selcen Ö. Aykaç 27
  • 28. • job definition • role (Heath & Heath, 2008) Dr. D. Selcen Ö. Aykaç 28
  • 29. • job definition • role • interview • audition (Heath & Heath, 2008) Dr. D. Selcen Ö. Aykaç 29
  • 30. • job definition • role • interview • audition • uniform • costume (Heath & Heath, 2008) Dr. D. Selcen Ö. Aykaç 30
  • 31. • job definition • role • interview • audition • uniform • costume • customer • guest (Heath & Heath, 2008) Dr. D. Selcen Ö. Aykaç 31
  • 32. • job definition • role • interview • audition • uniform • costume • customer • guest • being at work • being at stage (Heath & Heath, 2008) Dr. D. Selcen Ö. Aykaç 32
  • 33. Brand Dr. D. Selcen Ö. Aykaç 33
  • 34. two approaches Brand (ID) Brand (Experiential) experience provider identifier name, logo, ad + name, logo and events, sponsorships and ad other contacts w/guest prior to purchase experiences awareness and image before, during & after purchase & consumption Schmitt Dr. D. Selcen Ö. Aykaç 34
  • 35. CREATE Experiential … won’t happen on its own, comes first, plan followed by features and benefits experience focus details on consumption get obsessed about them situation, not on product find your duck Dr. D. Selcen Ö. Aykaç 35
  • 36. Strategic Experiential Modules SENSE FEEL THINK ACT RELATE (Schmitt, 1999) Dr. D. Selcen Ö. Aykaç 36
  • 37. Strategic Experiential Modules SENSE FEEL THINK ACT RELATE (Schmitt, 1999) Dr. D. Selcen Ö. Aykaç 37
  • 38. Strategic Experiential Modules SENSE FEEL THINK ACT RELATE (Schmitt, 1999) Dr. D. Selcen Ö. Aykaç 38
  • 39. Strategic Experiential Modules SENSE FEEL THINK ACT RELATE (Schmitt, 1999) Dr. D. Selcen Ö. Aykaç 39
  • 40. Strategic Experiential Modules SENSE FEEL THINK ACT RELATE (Schmitt, 1999) Dr. D. Selcen Ö. Aykaç 40
  • 41. Brand Experience Factors SENSORY EMOTIONAL INTELLECTUAL BEHAVIORAL (Brakus, Schmitt & Zarantonello, 2009) Dr. D. Selcen Ö. Aykaç 41
  • 42. Thanks Dr. D. Selcen Ö. Aykaç 42
  • 43. “Experiential” works • “Activating E-Bank Users: Exploring the Potential Impact of e-Atmospherics and Experiential Marketing” case in Services Marketing: Concepts, Strategies and Cases, edited by K. Douglas Hoffman, John E.G. Bateson, Emma H. Wood & Alexandra J. Kenyon, Cengage Learning: London, UK, 2009. ISBN: 9781844808137. • "Deneyimsel Pazarlama AVM’lerde! (Experiential Marketing in Shopping Malls),” AVM Gazette, Vol. 6., 2009. • “Activating E-Bank Users: Exploring the Potential Impact of e-Atmospherics and Experiential Marketing” case in Consumer Behavior, edited by Jim Blythe, Cengage Learning: London, UK, 2008. ISBN: 9781844803811. • “Students’ Experiences in Business Schools,” 27th EuroCHRIE Annual Conference, October 22-24, 2009, Helsinki, Finland. • “Türkiye’de e-Bankacılık: Tüketici Deneyimleri (Turkish e-Banking: Consumer Experiences),” 13. Ulusal Pazarlama Kongresi (13th National Marketing Congress), October 25-29, 2008, Cappadocia, Turkey. • ”Adopting the Experiential Values Propositions as E-atmospherics: An Illustration through the Case of E-banking,” 15th International EIRASS Conference on recent advances in Retailing and Services Science, EIRASS, July 14-17, 2008, Zagreb. Dr. D. Selcen Ö. Aykaç http://www.selcen.org 43