Understanding Experience Marketing Essay Example
Understanding Experience Marketing Essay Example

Understanding Experience Marketing Essay Example

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  • Pages: 8 (2073 words)
  • Published: March 28, 2018
  • Type: Report
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The purpose of this research paper is to present new definitions and propose two conceptual models for experience marketing, highlighting the distinctions between experience marketing and experiential marketing. The methodology employed in this study is theoretical research. Based on the findings, it can be concluded that experience marketing surpasses experiential marketing as a strategic and comprehensive term rooted in the theory of the experience economy. Experience marketing involves strategically promoting relevant experiences, whereas experiential marketing functions as a tactical tool for conducting campaigns.

The proposed model demonstrates the differences between these terms. Experiences are fundamental concepts in contemporary marketing; however, there remains ambiguity in business terminology and a lack of clear definitions for experience and experience marketing within literature. Experience plays a crucial role in understanding consumer behavior and marketing management; it even serves

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as the foundation for the entire economy according to Pine and Gilmore (1998).

Experience constitutes the primary component of experience marketing, representing the future of marketing according to Losable and Britton (2003)and Schmitt (1999). It has recently gained prominence within the branding industry.

The concept of revolutionizing traditional methods with experiential marketing was introduced by Schmitt in 1999. However, despite the numerous articles on the subject, there is still a lack of understanding and limited knowledge about the components of experience marketing. The relatively new nature and limited research make it challenging to find a clear definition of experience marketing in literature. This confusion is worsened by differing interpretations and approaches from academics, experts, and practitioners who sometimes use terms like experience marketing, experiential marketing, and customer experience management interchangeably. Tanya and McKenzie's 2009 review article acknowledges this lack of clarit

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but does not provide their own definitions. While Schmitt initially focused on experiential marketing in his influential 1999 article and book titled "Experiential Marketing," later works such as Brakes and Gerontology's 2009 article shifted the focus to experience marketing. Additionally, Bowwows, Thistles, and Peeled expanded on meaningful experiences in their 2005 book "A New Perspective on the Experience Economy," while Hans Seller explored this concept in 2007 as well. In ten book reviews published in 2006 and 2007, Holbrook critiqued other authors' conceptual foundations and commercial interests.The main aim of this paper is to thoroughly analyze the terms experience, experience marketing, and experiential marketing in order to fully comprehend the phenomenon. Its objective is to improve communication and future research in the field by establishing consistent language and definitions. It differentiates experience marketing from experiential marketing through key definitions. A comprehensive understanding of these definitions, as well as the theory and conceptual models underlying the subject, is essential for conducting research. Marketers need to grasp the entire conceptual framework and principles of experience marketing. The paper investigates how experience marketing relates to other marketing strategies and proposes two conceptual models while addressing important research questions. It reviews relevant literature, introduces new definitions and models, contributing towards a better understanding of experience marketing. Additionally, it explores related terms such as experiential marketing, customer experience management, and brand experience. Two models are presented that lay the foundation for future analysis and research in this area.The text discusses limitations and implications for future studies on the significance of experience in current business practices.There is a lack of systematic definition in marketing which leads to disagreement among scholars regarding

the term 'experience.' It can serve both as a noun and verb encompassing participation, perception, and outcome.The diversity of definitions and perspectives in articles on experiences has led to various explorations. Moreover, a distinction exists between enjoyment derived from ordinary or mundane experiences and extraordinary flow experiences. These experiences can be further categorized into consumer/imposition experiences and virtual/live brand experiences. While Carbons and Hackle are often credited with pioneering the experience movement in their influential article published in 1994, it is important to note that Holbrook and Horseman's iconic paper on the consumption experience predates their work (Tanya and McKenzie 2009). Approximately thirty years ago, researchers recognized the significance of experiential elements in consumer behavior as well as hedonistic consumption (Holbrook and Hiroshima 1982). In his book "Hiroshima" published in 1984, the author identified three motives for consumption: cognition, sensation, and novelty. These motives aim to stimulate thought processes, engage the senses, and seek new stimuli. In their model developed in 1982, Holbrook and Harriman contrasted information-processing with experiential perspectives on consumer behavior. The experiential perspective perceives consumption as a subjective process that involves symbolic meanings, hedonistic responses, and aesthetic criteria. To illustrate this perspective, the authors introduced the concept of the "three Ifs": fantasies, feelings, and fun.Expanding on these concepts, more recent literature has embraced a broader perspective known as the "four Sees": experience, entertainment, exhibitionism, and evangelize. Each of these four Sees can be condensed using words beginning with the same letter. This paper examines the notion of 'llamas' (experience) within the Estonian language. Llamas are defined as lived-through or perceived events that encompass everything an individual is aware of – particularly significant

and unique experiences. As per the Estonian Encyclopedia's definition, an experience refers to something that impacts one's emotions or enhances their knowledge and skills through engaging in activities or observing things. The verb 'experience' signifies an individual's feelings or undergoing of something while the adjective 'experiential' describes something that is based on experience. The term 'experience' has long been associated with the concept of life and existence in philosophy. It derives from the Greek word 'empiric', meaning experienced, and the Latin word 'experiential', meaning to experience. Vehicle (2002), a researcher in tourism, defines two dimensions of experience: 1) experiences that have already occurred but remain relevant in the present moment, and 2) experiences that have not yet transpired but encompass future possibilities in the present moment. This distinction exists across multiple languages such as German, Dutch, Estonian, and Finnish.The use of the word "experience" in English can cause confusion because it is used for both Relearns and Referring, even though they have slightly different meanings. Bowwows, Thistles, and Peeled (2005) argue that Relearns are a subset of Referring rather than being synonymous with it. However, Leaping and Same (2011) contend that Referring in German implies a unique coherence of life's experiences. Leaping (2010) explains that an experience is something consumers go through on an existential and rational level. A meaningful experience involving Referring includes learning and awareness. Pine & Gilmore suggest that Referring leads to change and transformation. Snell (2004) states that experience in terms of Referring is an ongoing interactive process involving doing and undergoing, action and reflection, cause and effect. It holds significance within various contexts of an individual's life. A meaningful experience

allows individuals to perceive the world or themselves differently. Bowwows et al.'s description of Relearns often encompasses complex emotions.
Shelter's article in 2007 provides additional perspectives on meaningful experiences. According to Paulson and Kale (2004), experience refers to the mental state of an individual at a specific moment.Carbons and Hackle (1994) define it as the impression formed through interactions with products, services, and businesses.Carland Cove (2003) argues that the understanding of experience in marketing is not clear and proposes a typology for consumption experiences. Their analysis shows that experience is subjective, focusing on emotions and senses rather than cognition in social sciences and philosophy. Marketing gives it a more objective meaning by confirming that the outcome can be significant and memorable for consumers.

The Lapping Centre of Expertise for the Experience Industry (LICE) defines experience as a multinational, positive, and comprehensive emotional encounter that has the potential to bring about personal change (Transparent & KyleÃen 2007). Companies can provide customers with unforgettable and unique experiences by incorporating elements like individuality, authenticity, storytelling, multi-sensory perception, contrast, and interaction.

According to Pine and Gilmore (1999), experiences are remarkable events that strongly affect the perceiver. Experience marketing focuses on promoting these emotional events to customers. It involves a customer-centric approach where co-creating the experience using tools provided by the company is emphasized. This approach is based on the concept of the experience economy (Pine and Gilmore 1998) and encompasses a comprehensive theoretical discourse about this type of marketing (Gilmore and Pine 2007; Pine and Gilmore 1999, 2002).Pine and Gilmore (1999) argue that experiences are distinct economic offerings that have been overlooked until now. They differ from goods and services as they

are memorable. Forefeet and Penetrable (2011) highlight the neglect of those creating the experience in marketing efforts, which have focused on experiential marketing. Differentiating between various types of experiences can provide insights for creating compelling offerings (Seller 2007). Pine and Gilmore (1998, 1999) define four realms within a consumption experience using two dimensions. Their goal is to generate emotions for consumers through these experiences (Pine and Gilmore 1999). The concept of the experience economy has expanded across various fields such as tourism, retailing, architecture, nursing, sports branding, entertainment, arts urban planning, and hospitality (Leighton 2007; Transparentand KyleÃen 2009; Grew et al. 2009; Overshoe et al. 2009; Brakes et al. 2009; Gentile et al. 2007; Schemers 2009).In addition to being considered a critical aspect of customer experience management (CHEM), the experience economy is discussed by Gilmore and Pine (2002), Peters (2044), and Pine & Gilmore (199). The interactions between organizations and customers are explored in CHEM, according to Gentile et al. (207) in 2007. Customer experience is defined as the evolution of the relationship between a company and its customers, as provided by Schmitt (2003). Schmitt also defines customer experience management as the discipline used to comprehensively manage a customer's exposure, interaction, and transaction with a company across various channels. CHEM, or Cantoned and Resistant's program from 2011, encourages customer involvement at different levels: rational, emotional, sensory, physical, and spiritual. Experience marketing aims to convey a brand's essence through personal experiences for engaging brand experiences. Brand-experience construct development is emphasized by Schmitt (2009). Brakes, Schmitt, and Gerontology explain that brand experience refers to subjective internal consumer responses evoked by stimuli related to a brand's design including

its name, logo packaging communications such as advertisements and websites as well as environments where it is marketed or sold like stores and events.There is still no universally agreed upon definition and context for 'experience marketing'. According to Lee, Hoist, and Yang (2010), experience marketing involves providing consumers with a quality experience that includes rational decision-making and sentimental consumption. Baron, Harris, and Hilton (2009) define experience marketing as creating a memorable episode through personal participation or observation, but they also use the same definition for experiential marketing. Schmitt (AAA) builds on Pine and Gilmore's work by discussing the creation of customer experiences in marketing and offers tools for this new approach. Schmitt (Bibb) identifies five types of experiences that marketers can create using strategic experiential modules (Seems), which are implemented through experience providers (Express). These providers include elements such as miscommunication, visual and verbal identity, product presence, and electronic media. Schmitt (AAA) outlines two aspects of the framework for experiential marketing: Seems as the strategic foundation and Express as the tactical tools. Holbrook (2000) criticizes Schmitt's positioning of Seems and Express concept as "a key tragic planning tool of experiential marketing" because it stretches credibility. The author emphasizes that marketing planning tools are tactical rather than strategic. The entire concept of experience marketing is centered around experiences rather than specific activities (Car;and Cove 2003).This approach prioritizes sensations over consumers' rational thoughts. Schmitt's toolkit focuses on tactical and operational actions for experiential marketing campaigns, playing a crucial role between tactics and strategy (Holbrook 2000). Experiential marketing is constantly evolving, with multiple definitions and interpretations, as seen in Hauser's survey conducted in the Experiential Marketing Forum where

over 200 responses from individuals in more than 150 countries provided their own definitions of experiential marketing. Once lesser-known but now embraced as a powerful tool (Hauser 2007). Schmitt uses the terms "experiential economy" and "experiential marketing" interchangeably when discussing Pine and Gilmore's experience economy (Schmitt AAA) and (2009). According to the International Experiential Marketing Association, experiential marketing enables customers to engage with brands, products, and services through sensory experiences that provide additional information. Hauser suggests that experiential marketing enhances brand image, awareness, and drives sales through actual customer experiences (2011). Sneakers and Goodman describe it as a method to create emotions and enjoyable experiences for customers (2010), while You-Mining defines it as a face-to-face communication approach that stimulates physical and emotional responses, encouraging interaction with specific brands for heartfelt experiences (2010).The significance of emotions, feelings, and senses in experiential marketing is emphasized by these definitions. Cantoned and Resistant (2011) note that companies have increasingly been adopting CHEM strategies, which prioritize the importance of emotions, feelings, sentiments, connections, and experiences in shaping the relationship between consumers and brands.

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