Experiential Marketing Exam PDF

EXAM- EXPERIENTIAL MARKETING - **[Experiential marketing: ]** - Engages customers beyond direct participation in immersive experiences. - It goes beyond traditional marketing. - Understanding the science brands use to create a sense of belonging within the society. - Reptilian...

EXAM- EXPERIENTIAL MARKETING - **[Experiential marketing: ]** - Engages customers beyond direct participation in immersive experiences. - It goes beyond traditional marketing. - Understanding the science brands use to create a sense of belonging within the society. - Reptilian brain connected to spine. - **[Sensorial marketing: ]** - The key concepts of experience marketing such as experiential value - Different types of experiences, the distinction between ordinary and extraordinary experiences and experience touchpoints. - Providing appealing brand experiences for consumers is critical for differentiating their offerings in a competitive marketplace. - Consumer and marketing research on experience is still emerging. - Sensory marketing is a new discipline ¨marketing that engages the consumers- sense and affects their perception, judgment, and behaviour. - Sensory branding is a type of marketing that appeals to all the senses in relation to the brand. It uses the sense to relate with customers on an emotional level. Brands can forge emotional associations in the customers minds by appealing to their senses. - A multi-sensory brand experience generates certain beliefs, feelings, insights, thoughts, and opinions to create a brand image in the consumer´s mind. - It is the marketing techniques that aims to seduce the consumer by using his sense to influence his feelings and behaviour. - It appeals to consumers 'senses (a multi-sensory experience). - **[6 Experiential components: ]** Gentile et al. (2007), distinguished the following six experiential components: - Pragmatic (experiences resulting from the practical act doing something and usability). - Lifestyle (experiences resulting from the affirmation of values and personal beliefs). - Relational (experiences emerging from social contexts and relationships, that occur during common consumption as part of a realer imagined community or to affirm social identity). - Sensorial (sight, hearing, touch, taste, and smell) experiences and how they arouse. - Emotional (moods, feelings, and emotional experiences that create an affective relation with the company, its brands, and products). - Cognitive (experiences related to thinking and conscious mental processes to get customers to use their creativity or problem solving so that they revise assumptions about a product) FMRI: functional magnetic resonance imaging EEG: electroencephalography Eye tracking gaze Biometrics Facial coding - We always start with the strategical part. - Mission: why the company is on the market, your reason of existence. - Vision: where you want to be in the future. - Values: what are the values you want to be linked to. - Activity: main activity, cash flow, etc. - VALS: Values, attitudes & lifestyle. Connecting these 3 things = more engagement Important: to compress and summarise info to let the brain process the info. 80% of the income comes from 20% of the product. - Positioning: 3 types (real, ideal, and mental) it is important for the 3 positions to align, to be the same. - Real: which is the position that im actually on the market (if im new, I don't have a position) - Ideal: how I want to be - Mental: when I go and do market research and ask my clients what they think about me. - **Emotional branding** is a term used within marketing communication that refers to the practice of building brands that appeal directly to a consumer´s emotional state, needs, and aspirations. Emotional branding is successful when it triggers an emotional response in the consumer, that is, desire for the advertised brand. - SWOT: how can I move the negative parts to the positive parts. Strategic planning tool that assesses an organization\'s internal Strengths and Weaknesses, as well as external Opportunities and Threats. It helps businesses identify areas for improvement, capitalize on advantages, and navigate challenges in their environment. - Real Canva: the most important is to be customer orientated. The Business Model Canvas is a valuable tool for startups and established businesses to analyze, refine, and communicate their business strategies. It provides a concise and structured way to explore and develop business models. REVENUE STREAMS → Revenue streams refer to the different sources of income or earnings that a business or organization generates as a result of its activities, products, or services. It represents the money that flows into the company from its various business operations. - Competitive forces: how is the environment of the company. This analysis helps businesses understand the dynamics of their industry and make informed strategic decisions. 1\. Supplier Power: The influence suppliers have on pricing and quality. 2\. Buyer Power: The influence customers have on purchasing decisions and prices. 3\. Competitive Rivalry: The intensity of competition within the industry. 4\. Threat of New Entrants: The potential for new competitors to enter the market. 5\. Threat of Substitutes: The availability of alternative products or services. - Buyer persona: demographic info, focus on the vals, lifestyle, attitudes, etc. A detailed and fictionalized representation of an ideal customer, helping businesses understand and target their audience more effectively by considering demographics, behaviours, and preferences - AIDA model: awareness, interest, desire, action. A diagram of a model Description automatically generated A marketing concept that describes how customers move through four stages- Attention, Interest, Desire, and Action- when making a purchase decision. It\'s a framework to understand and influence customer behaviour. - **How can I connect and engage with my consumers in order to make them live an experience?** 1. Capture Attention → Start by grabbing their interest with compelling content, visuals, or a unique value proposition. - **Distance: Time, Spatial, Social** \- lets go to a restaurant tomorrow/next year \- there is a bomb in les Roches/there is a bomb in Japan \- someone is blonde/my dad is blonde - **ROBERT DILS: 6 levels of engagement with my consumer**  - **Behaviour:** first contact and level of connection. We can match different aspects of the receptor such as, posture, gestures, etc. - **Previous experience:** Its about sharing similar or close experiences that we have lived in common with the person that we want to generate. Rapport: trips, same school, events, movies, etc.. ´´Me too´´ moment - **Skills:** In order to connect in this level, we need to share skills and hobbies that we have/may have in common: writing, playing music instruments, playing chess, etc,.. The more specific the skill or hobbies are, the rapport will be deeper. - **Beliefs:** is the feeling of certainty about the meaning of something. It's a personal affirmation that we consider to be true. When detecting in the receptor that we are aligned in a belief, we can directly, if possible, let him know that we do think in the same way. - **Values**: A value is a word that indicates something high in our hierarchy of our interests. We are using them constantly mainly in a subconscious way to judge what´s right and wrong. Justice, love, freedom, health. - **Identity:** Its that factor with which we feel identified, and where we can say ´´ IAM¨ football clubs, political parties, nationality, etc. Product + emotion= long term memory Rational purchasing, emotional reasons. - **ZMOT:** zero moment of truth (moment in the buying process when the consumer reaches a product prior to purchase. It\'s the phase where potential customers search for information, read reviews, and form opinions, often influencing their ultimate purchasing choice. ZMOT is significant because it highlights the critical role of online research and consumer experiences in the decision-making process. A diagram of a cell phone and a bag of money Description automatically generated - Stimulus: Initial trigger that makes a consumer aware of a product or service, often through advertising, recommendations, or other forms of exposure. - Zero Moment of Truth (ZMOT): Where the consumer goes online to research and gather information about the product or service, forming initial impressions. - First Moment of Truth (FMOT): When the consumer encounters the product or service in a physical store or in real life, assessing it firsthand. - Second Moment of Truth (SMOT): After using or experiencing the product or service, the consumer forms their own opinion based on their real-life experience. - **Customer journey map:** 1. **Awareness: (google, adds, booking.com, social media, etc)** - When consumers discover your brand and product. - Takes place through various channels such as social media, brand campaign, WOM, etc. - Objective: capture the interest of ideal clients by showcasing that the business understands the pain-points and provides the right solutions. - This is your chance to shine a spotlight of what you offer. 2. **Consideration: (Blogs, news, weather, market comparison)** - Consumers weigh your offerings against other alternatives in the market. - Prices, reviews, features, and limitations are pit against each other to see which solutions comes out on top. - This is the make or break for most deals. - Companies need to showcase why they´re stronger options with more value to add to customers than their competitors. - It's vital to step back and assess whether you´re positioned in a favourable manner. - You have to provide them with maps and guides to your product, offering in-depth information, comparisons, and testimonials. 3. **Decision / Purchase: (online payment, economical possibility, confirmation, transfer, etc)** - To buy or not to buy? - Consumers now narrow their search down to a couple of options and decide. - Customers decide and purchase a product or service from a certain organization. - Customers have reached a crossroad and are ready to make a choice. - It is a moment they are about to make a purchase. 4. **Retention: (payment check out, customer loyalty programs, cross selling)** - The organization´s team attempts to keep the customer engaged through marketing emails, loyalty programs, regular product training, etc. - It is important in the long run because it brings new revenue follow up on post stay, discount, newsletter, etc. - Partners in the ongoing adventure. - Keep them engaged with post-purchase support, updates, and relevant content. - Build a community, implement loyalty programs, and send personalized communication to keep the relationship strong.  - **6 PRINCIPLES OF PERSUASION:** A white paper with black text Description automatically generated - **BERND SCHMITT´S 5 STEP CUSTOMER EXPERIENCE MANAGEMENT:** a. Analyse the experiential world of the customer. Analyse and understand the customer experience, the journey, and pain points. b. Build the experiential platform: develop the strategy, what should the customer experience look like. Include customer journey mapping. c. Design the brand experience. Create brand experiences that differentiate, stripping and redressing of the brand may be required. d. Structure the customer interface: address the process and people around customer exchanges, to address experiential consistency and feel/ mood of the brand. e. Continuous innovation: things which improve the customer´s life (personal or business). - **Golden circle by Simon Sinek:** (people buy why you do it, they don´t buy what you do)  **WHY (Inner Circle)** → This is your core purpose, the \"why\" behind what you do. It\'s the reason for your existence, beyond making money. It\'s about inspiration and motivation. **HOW (Middle Circle)** → This represents the strategies and processes you use to achieve your \"why.\" It\'s the unique approach or value that sets you apart. **WHAT (Outer Circle)** → This is the tangible products or services you offer to the world. It\'s the most visible part of your business. QUOTE: 95% of our purchase decision making takes place in the subconscious mind- Gerald Zaltman 2003. - **The trio model brain:** - REPTILIAN BRAIN (Simpson) → It\'s the oldest part of the brain. In experiential marketing, you can engage the reptilian brain by creating experiences that trigger primal instincts and survival needs. This might include sensory experiences like touch, taste, and smell that evoke basic emotions. For example, a food company might offer samples of their products at a live event, appealing to consumers\' fundamental need for sustenance. - LIMBIC BRAIN (SnowWhite) → Experiential marketing can tap into the limbic brain by creating emotionally engaging experiences. This could involve storytelling, music, and social interaction that resonate with consumers on an emotional level. For instance, an event designed to evoke nostalgia and warm feelings might be used to promote a brand associated with sentimental memories. - EMOTIONAL NEOCORTEX BRAIN (Einstein) → Experiential marketing can appeal to the neocortex brain by offering intellectually stimulating experiences. Interactive challenges, workshops, or demonstrations that require problem-solving, creativity, or learning can engage consumers at a cognitive level. For example, a tech company might host a hands-on workshop to showcase the innovation and intelligence behind their products. RATIONAL A diagram of a brain Description automatically generated **[BALANCE OF PERCEIVED VALUE: ]** what is the value for me to buy this product. Limbic system take care about what is important to me. If it wins, we'll buy. System 1. There's no decision process, it's fast: buy buy buy. Intuition, fast, instinct, unconscious, automatic, etc. **[Loss adversion:]** (NEOCORTEX) What is my hear of running out of money for the next month. Takes effort, slow, logical, lazy, indecisive.  - **BALANCE OF PERCEIVED VALUE: Triune model brain:** PAUL MC CLEAN Reptilian starts the decision, the conversation between the three parts. Depending on who wins the conversation u buy or not. - Balance or perceived value = what is the value for me to buy this product. Limbic system take care about what is important to me. If it wins, we'll buy. System 1. There's no decision process, it's fast: buy buy buy. - Loss aversion = what's my fear to run out of money next month. Neocortex worries about my future\... if it wins, we'll not buy. System 2 it's super slow and hard, that's why when we have to take an important decision, we're =red: it takes a big effort. If you buy, when you come back home the less aversion activates and makes you feel unhappy. Same if we don't buy with the perceived value. **Communication outside involves system 2 because it communicates to the part of brain that understand words but doesn't take decision.** **The how part is limbic brain because it is what is important for me, my value Communication inside out involves 90% limbic system + 10% reptilian system so system 1.** When we communicate with the why, people can buy whatever we offer because they don't buy the product, but the reason why you're selling it. - **Key sequence when generating an experience:** - **4P´S TO 4 E´S:** - Product to experience (creating a positive and memorable experience for the customer) - Place to everyplace (being present across various channels and platforms) - Price to exchange (customers feeling like they\'re getting a fair and worthwhile trade when they buy something) - Promotion to evangelism (turning your satisfied customers into enthusiastic advocates for your brand) - **3 LEVELS OF A BRAND:** **PRODUCT LEVEL** → It\'s about what the product does, its features, and its functional benefits. For example, if you think of a smartphone, the product level is all about the phone\'s specifications, like the camera quality, screen size, and battery life. **BRAND LEVEL** → It encompasses the emotional and psychological connection that customers have with the brand. This is where the brand\'s values, reputation, and image come into play. Using the smartphone example, the brand level might involve the brand\'s reputation for innovation, reliability, or eco-friendliness. **EXPERIENCE LEVEL** → This is the highest and most holistic level. It involves the entire customer journey and interaction with the brand. It\'s not just about the product or what the brand stands for; it\'s about the actual experiences customers have. This includes how easy it is to buy the product, the quality of customer support, and the overall feeling of satisfaction. In the smartphone example, it\'s not only about the phone\'s specs or the brand\'s image but also about how the company handles customer issues, the ease of getting repairs, and the overall satisfaction of using the phone. A diagram of a balance Description automatically generated **In neuromarketing:** We analyse and address the emotional or psychological \"pains\" that bother consumers. This involves understanding their worries and concerns, allowing businesses to tailor their marketing to alleviate these issues and connect more deeply with consumers. - **Six stimuli theory:** What are the 6 ways to trigger reptilian brain: - PERSONAL →This means that something is relevant to an individual on a personal level. It could be related to their needs, desires, or experiences, making it more likely to grab their attention. CONTRASTABLE →The brain is drawn to things that stand out and are easily distinguishable from their surroundings. If something is notably different or contrasting, it tends to capture attention. - TANGIBLE →The brain is wired to respond to things it can touch or experience physically. Tangible stimuli, like a physical product or a hands-on experience, are more engaging. - MEMORABLE→ The brain remembers things that are unique or emotionally charged. Stimuli that leave a lasting impression or provoke strong emotions tend to be remembered. - VISUAL →The brain processes visual information quickly and efficiently. Visual stimuli, such as striking images or visuals, are more likely to capture attention. - EMOTIONAL →Emotions are powerful triggers for the brain. Emotional stimuli, whether positive or negative, tend to be attention-grabbing because they engage our feelings. - **Psychological distance:** To reduce it try to move from large to zero.  - **Emotional forecasting:** How we can help our consumers to predict and forecast how they are going to feel with our product and service. **4 items or variables that we need to take care of:** - Valence: if the emotion is positive or negative - Duration: how long this emotion will last in the consumer´s memory - Emotion type: from the positive and negative emotions, which is the type of emotion. - Intensity: the level of emotion - How we help our consumers? 1. Reduce psychological distance. 2. To imagine the emotional forecasting, it will help us a lot to create a good experience. - **5 SENSES:** - 1% touch and retailing: in retailing, store atmospherics emphasised the sensory qualities of a service scape, often designed and formulated to attract customer interest and response, as well as to generate a positive retail experience in a B2C (business to consumer) or B2B (business to business) context. - 9% hearing - 15% taste: The sense of taste is considered to be the most intimate one because we can\'t taste anything from a distance. It is also believed to be the most distinctly emotional sense. Our taste is also dependent on our saliva and differs on Each different person. People who prefer saltier foods are used to a higher concentration of sodium and therefore have a saltier saliva. In fact, 78% of our taste preferences are dependent on one\'s genes. Taste also has a social aspect attached to it, we rarely seek to enjoy food by ourselves since eating usually facilitates social interaction between people. Business meetings and home dinners are almost all of the time in Company of others and companies need to take this into consideration. - 35% smell: However, vision and smell alone are not always enough for consumers to evaluate products or to make purchase decisions, and omit other important information, such as on the form, robustness, texture or weight of a product, that the sense of touch (or tactile sense) might communicate. Visual and tactile senses can be identified as the most active of our five senses. - 5% sight: The sense of sight is considered the most important sensory channel for perceiving a commercial environment, and research confirms the impact of visual cues on consumer behaviour in terms of consumption, purchase quantity or sale. The sense of smell is another important sensory channel, and a number of studies have shown that olfactory cues have a significant impact on consumer behavioural, retail settings. - As with sensory stimuli, displays, colours, employees, lighting, music, or scents, atmospheric cues are intended to create positive emotions and increase sales through appealing human senses. - Moreover, atmospheric cues are significant for a hedonic retail experience in terms of attractive stimuli and facilitating stimuli. - Haptic information, or information attained through touch by the hands, is important for the evaluation of products that vary in terms of material properties related to texture, hardness, temperature, and weight. - The sense of touch excels at obtaining texture, hardness, temperature, and weight information. - The sense of touch is one of the central forms of perceptual experience. Positive touch from others is necessary for an individual\'s healthy development. - Often ignored when we talk about our fundamental senses, the sensation of touch is a fundamental part of our daily experience, influencing what we buy, who we love and even how we heal. - We use this sense to gather information about our surroundings and as a means of establishing trust and social bonds with other people.