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1、Journal of Marketing Management 1999, 15, 53-67 Experiential Marketing h t/】 丨 s ort/cie， / contrast trad/t/ond riifirketing vwth a new approach to marketing called Experiential Marketing and provide a strategic framework for Experiential Marketing. Traditional marketing views consumers os rational

2、decision-makers who care about fiinctional features and benefits. In contrast, experiential marketers view consu ers os mtiojm/ mid eniotom/fuinm beings who are concerned with achieving pleasurable experiences. Five different types of experiences, or strategic experiential modules (SEMsl that market

3、ers can create for customers are distiiiguis/ied: sensorv experiences (SENSE); ajfective experiences (FEEL); creative cognitive experiences (THINK); physical experiences, behaviours and lifestyles (ACT); and social-identity experiences that result from relating to a reference group or culture (RELAT

4、E). 77圯 se experiences are lYnpfernented through so-called experience providers (ExPros) suc/i as comnninications, visual and verbal identity, product presence, electronic media, etc The ultimate goal of experiential marketing is to create holistic experiences that integrate individual experiences i

5、nto a holistic Gestalt Tiie poper condudes with mi eva 川 /nation / strategic issues and a discussion about how to create the experience-oriented organization. Ebqeriential Maiiceting Experiential marketing is everywhere. In a variety of industries, companies have moved away from traditional ufeatnre

6、s-and-benefitsw marketing toward creating experiences for their customers. This shift toward experiential marketing has occurred as R result of three simultaneous developments in the broader business environment 1. The Omnipresence of Information Technology. Nowadays business is increasingly driven

7、by information technology. The information revolution will not mean merely an improvement in speed, as suggested by the original metaphor of the information superhighway It will mean a transformation in 1 Correspondence. Bernd Schmitt, Professor of Marketing, Director. C entre of Global Brand Manage

8、ment 510 IJris Hall, Columbia Business School, New ork NY 10027, USA Tel: 212 854 3468, Fax: 212 854 8762, E-mail: bhslcoiumbia.edu Dmu Schmitt1 Director, Centre of Global Brand Management Columbia Business School ISSN0267-257X/99/010053+14 S12.00/0 Westbum Publishers Ltd. 54 Bemd Schmitt media - fr

9、om print to voice, from sight to sound. It is quite conceivable that within a few years, consumers will be working with considerably smaller-and cheaper- computing devices that will integrate mobile phones, television, voice-operated computer with access to anyone and anything-real or virtual - anyw

10、here in the world. Futurists like Dertouzos (1997) predict that within a few years we will see products like the bodwet/ a web of integrated devices - functioning as cellphone, computer, television, camera, etc - that will be confined to an invisible envelope around our bodies. This device-or a simi

11、lar one - will allow people and companies to connect and to share an experiential universe with one another at any time. 2. The Supremacy of the Brand Brand! Brand! Brand! Thafs the message.for the late 90s and beyond， writes Tom Peters (1997) in his book The Cycle of Innovation. Through advancement

12、s in infonnation technology, information about brands - in all different fomis and media - will be available instantly and globally. Even things we do not traditionally think of as brands are now being treated and marketed as such. Examples include U.S. business schools， TV stations and programs, me

13、dical practices and even nursing homes. Moreover, daring brand extensions are occurring everywhere. Fashion brands have been extended into paint (Ralph Lauren), bottled water (DKNY), popcorn boxes (Calvin Klein), toothpaste (Paul Smith), and dog carriers (Gucci). In a world in which brands nile, pro

14、ducts are no longer bundles of functional characteristics but rather are means to provide and enhance customer experiences. 3. The Ubiquity of Communications and Entertainment As eveiything is becoming branded, everything becomes a form of communication and entertainment Companies are getting better

15、 and better at dressing themselves as customer- and coiniminity-oriented and spare no efforts to provide fun and entertainment for their customers. The latest annual reports and corporate websites are full of terms like customer， connection, and stimulation orbiting around you in bright colours. Mor

16、eover, cominunications are no longer just one-way. Customers and other constituents of a company are now able to communicate directly with the company itself. These three phenomena represent the early signs of an entirely new approach to marketing, if not to business as a whole. Welcome to the Exper

17、ience Economy, write B. Joseph Pine II and James H. Gilmore (1998). Using a long-term perspective, these authors have distinguished four stages in the progression of economic value: commodities, goods, services and experiences. They write: As services, like goods before them, increasingly become com

18、moditized - think of long-distance telephone services sold solely on price-experiences have emerged as the next step in what we call the progression / eco/on】 i*c value. From now on， leading-edge companies - whether they sell to consumers or businesses-will find Experiential Marketing 55 that the ne

19、xt competitive battlefield lies in staging experiences. Unfortunately, traditional marketing and business concepts offer hardly any guidance to capitalize on the emerging experiential economy. Traditional marketing has been developed in response to the industrial age, not the information, branding a

20、nd communications revolution we are facing today. To get a better rasp of Experiential Marketing, let us first take a look at some of the assumptions and practices of traditional marketing. I use the term traditional marketing to refer to a canon of principles, concepts and methodologies that market

21、ing academicians, practitioners (marketing directors, brand managers, comnninication managers) and consultants have amassed throughout this century and, in particular, during the last thiity years. Strangely enough, tliese concepts have been around in marketing, essentially unchanged, for decades. T

22、he concepts and methodologies of traditional marketing describe the nature of products, the behaviour of consumers and competitive activity in the marketplace. They are used to develop new products, plan product lines and brand extensions, design coimminications and respond to competitive activities

23、. As we will see, traditional marketing presents an engineering-driven, rational, analytical view of customers, products and competition that is full of untested and outmoded assumptions. It is hardly a psychologically-based theory about customers and how they view and react to products and compeiit

24、ion. Figure 1 outlines the key features of such traditional marketing. Figure 1. Characteristics of Traditional Maiiceting Traditional Marketing: Four Key Characteristics 1. Focus on Functional Features and Benefits Traditional marketing is largely focused on features and benefits. 56 Bemd Schmitt T

25、raditional marketers assume that customers (business customers or end consumers) in a variety of markets (industrial consumen technology, service) weigh functional features in tenns of their importance, trade off features by comparing them, and select the product with the highest overall utility (de

26、fined as the sum of weighted features). What exactly are features? According to Kotler (1994), features are characteristics that supplement the products basic function. Because customers are assumed to make choices based on features, product features are viewed as a key tool for differentiating a co

27、mpanys offerings from competitive offerings. Indeed strategist Michael Porter (1985) describes product differentiation in a competitive context as developing a unique position on an attribute that is widely valued by buyers. Functions, based on features, are performance characteristics that customer

28、s seek from products: for toothpaste - cavity prevention, tartar control and whitening; for airlines - schedules, destinations, bage handling and frequent flyer miles; for personal computers-speed, connectivity and portability. 2. Product Category and Competition are Narrowly Defined In the world of

29、 a traditional marketer, McDonald s competes against Burger King and Wendys (and not against Pizza Hut Friendlys or Starbucks). Chanel fragrances compete against Dior frcigrances (and not against those of Lancome or UOreal, or against fragrances offered by the Gap or another mass-market retailer). F

30、or a traditional marketer, competition occurs primarily within narrowly defined product categories - the battleground of product and brand managers. 3. Customers are Viewed as Rational Decision Makers Throughout this century, economists, decision scientists and marketers have viewed customer decisio

31、n-making as straightforward problem solving. As Engel, Blackwell and Miniard (1994) explain, problem solving refers to thoughtful, reasoned action undertaken to bring about need satisfaction. Customer decision-making processes typically are assumed to involve several steps: need recognition, informa

32、tion search, evaluation of alternatives, purchase and consumption. 4. Methods and Tools are Analytical Quantitative and Verbal Standard traditional marketing methodologies are analytical, quantitative and verbal. Think about regression models. The input to most regression models (and their stepchild

33、 the logit 】 nodel) consists of verbal ratings collected in interviews or surveys. The purpose is to predict purchase or choice based on a number of predictors and to assess their relative importance weights. Or consider positioning maps (and tfieir stepchild, the correspondence analysis). There, th

34、e input consists of verbal pairwise similarity ratings among brand names and/or ratings on a munber of inostiy functional-features scales. Output consists of two or three dimensional spaces (quality vs. value, or functionality Experiential Marketing 57 vs. luxury) in which one brand is positioned ag

35、ainst another brand. Or consider conjoint analyses. This type of analysis is used for assessing the monetaiy value of individual functional features within a bundle of offers. To arrive at the result, customers are asked to evaluate several products consisting of product bundles and how much tliey w

36、ould be willing to pay for each one. Clearly, there are situations in which these methodologies offer useful insights. The issue is not to critique individual research techniques but to Ihink about the purpose and function of research within a corporation. Do you expect to gain a competitive advanta

37、ge by tweaking the customer importance weights used in a regression? Do you expect to gain strategic insights by examining the position of your brand against: another alon the broad, general dimensions of a positioning map? Can you justify a price increase or decrease after examining the upart worth

38、s in a conjoint analysis? But How About Branding? Didnt the branding approach, which has been so prominent in the nineties, change all that? Brand strategists certainly do not look at products just in terms of their functional features and benefits. Brand equity consists of assets (and liabilities)

39、linked to a brand, its name and svmb r (Aaker 1991). But nonetheless, most brand theorists have treated brands primarily as identifiers: Brand = ID. This view of branding unfortunately misses the very essence of a brand as a rich source of sensory, affective, and cognitive associations that result i

40、n memorable and rewarding brand experiences: Brand * EX, Today, customers take functional features and benefits, product quality and a positive brand image as a given. What they want is products， communications, and marketing campaigns that dazzle their senses， touch their hearts, and stimulate thek

41、 They want products, comnninicaiions, and campaigns that they am relate to and that they can incorporate into their lifestyles. They want products, communications, and marketing campaigns to deliver an experience. The degree to which a company is able to deliver a desirable customer experience - and

42、 to use information technology, brands, and integrated communications to do so - will largely determine its success in the global marketplace of the new milleniuni. Experiential Marketing: Pour Key Characteristics Figure 2 shows the key characteristics of Experiential Marketing. 1. A Focus on Custom

43、er Experiences In contrast to its narrow focus on functional features and benefits, experiential niarketing focuses on customer experiences. Experiences occur as a result of encountering, undergoing or living through things. Experiences provide senson1, emotional cognitive, behavioural, and relation

44、al values that replace functional values. 58 Bemd Schmitt Figure 2. Characteristics of Experiential Marketing 2. A Focus on Consumption as a jFfoJistfc Experience Experiential marketers do not think shampoo, shaving cream, blow dryer and perfume. Instead, they think grooming in the bathroom and ask

45、themselves what products fit into this consumption situation and how these products, their packaging, and their advertising prior to consumption can enhance the consumption experience. Examining the consumption situation and sketching the (fuzzy) boundaries of categories and competition accordingly

46、amounts to a radical shift in thinking about nwket opportunities - a shift that moves inarketing thinking uoxef and (see Figure 3). This type of thinking broadens the concept of a category (moving ovef) and examines the meaning of the specific consumption situation in its broader socio-cultural cont

47、ext (amoving up). For an experiential marketer, McDonald s competes against any other form of fast food; even any other form of quick bite or hang-out. Moreover， we examine the macro picture: what does it mean to eat a hamburger in a time when nutrition facts are screaming in your face in the supemi

48、arkets and when Martha Stewart urges you to live a homey, healthy lifestyle? How should McDonalds be positioned and communicate in this world? In sum, we are moving from thinking about an isolated product along the socio-cultural consumption vector (SCCV) into the customer s broader space of meaning

49、. 3. Customers are Rational and Ertiotionai Animais For an experiential marketer, customers are emotionally as well as rationally driven. That is, while customers may frequently engage in rational choice, they are just as frequently driven by emotions because consumption experiences are Experiential Marketing 59 often directed toward the pursuit of fantasies， feelings, and fun.（ Holbrook and Hirschman 1982), Moreover, it is useful to think of custoners as animals whose physical and mental a