Experiential Marketing Schmitt
Experiential Marketing Schmitt
Experiential Marketing Schmitt
VoL.10, #2:
SPRING 1999
Experiential Marketing:
A New Framework
for Design and
Communications
By Bernd Schmitt
INTRoDuCTIoN By
DARREL RHEA
Vice chairman of DMI Darrel
Rhea is an outspoken advocate
A tectonic shit in design practice was underway in 1999.
for our community of design Both traditional features and beneits marketing and brand
professionals. He is the founder
of Rhea Insight, a consultancy communications were giving way to customer experience
that facilitates the creation of
strategy for senior executive
design. Our community saw that this was a more powerful
teams around the world. He is platform for integrating design and communications activities,
also chief design oicer of The
Technology Reserve, where he and a whole new set of approaches, methods, and tools were
is helping design a new global
platform to radically transform
beginning to be developed. While several authors, such
the economics of intellectual as Pine and Gilmore, had successfully advocated for this
property and democratize
innovation. With 35 years of new perspective, Bernd Schmitt from Columbia Business
consulting to Fortune 1000
companies, Darrel is the former
School was creating a systematized, practical framework
CEO of the publicly-held for managing experience design.
innovation consulting irm
Cheskin Added Value. He is also
the coauthor of Making Meaning: The core ideas presented are still relevant today. In fact,
How Successful Businesses
Deliver Meaningful Customer
designers are still having to make the same arguments to
Experiences. business 15 years later. Schmitt’s article (in addition to his
many other books and articles) reveals emerging distinctions
that many of us in the design industry have built upon in our
writings. While the concept of experience design has matured
to include more robust models and more comprehensive
frameworks for guiding design development, practitioners will
ind this piece both useful for what they do today and a good
reminder of how we got here.
E
xPERIENTIAL MARKETING IS marketer, McDonald’s competes against Burger
everywhere. In a variety of industries, King and Wendy’s (and not against Pizza Hut
companies have moved away from or Starbucks). Chanel fragrances compete
traditional features-and-beneits against Dior fragrances and not against
marketing toward creating experiences those of Lancôme or L’Oreal, or any other
for their customers.1 fragrance ofered by a mass-market retailer.
“Welcome to the experience economy,” write B. For a traditional marketer, competition occurs
Joseph Pine II and James H. Gilmore in their article primarily within narrowly deined product
of the same title. Using a long-term perspective, categories—the battleground of product and
these authors have distinguished four stages in the brand managers.
progression of economic value: commodities, goods, 3. Customers are viewed as rational decision
services, and experiences. They write: “As services, makers. Customer decision-making processes
like goods before them, increasingly become typically are assumed to involve several
commoditized—think of long-distance telephone problem-solving steps: need recognition,
services sold solely on price—experiences have information search, evaluation of alternatives,
emerged as the next step in what we call the purchase, and consumption. As Engel, Blackwell,
progression of economic value. From now on, leading- and Miniard3 explain, problem solving refers to
edge companies—whether they sell to consumers thoughtful, reasoned action undertaken to bring
or businesses— will ind that the next competitive about need satisfaction.
battleield lies in staging experiences.”2 4. Methods and tools are analytical, quantitative,
Unfortunately, traditional marketing and and verbal. These techniques include regression
other business ields ofer hardly any guidance analyses, positioning maps, and conjoint
for capitalizing on the emerging experiential analyses based on Likert scales or that sacred
economy. I use the term traditional marketing cow of qualitative research, the focus group
to refer to a canon of principles, concepts, and (conducted in artiicial environments far
methodologies that marketing academicians, removed from the customers’ natural settings).
practitioners (marketing directors, brand
managers, communication managers), and But how about branding?
consultants have amassed throughout this cen- But, you may ask, didn’t the branding approach
tury and, in particular, during the past 30 years. change all that? Brand strategists certainly do not
Traditional marketing presents an engineering- look at products merely in terms of their functional
driven, rational, analytical view of customers, features and beneits. David Aaker, for instance,
products, and competition. It was developed describes brand equity as consisting of “assets (and
in response to the industrial age. Today’s liabilities) linked to a brand, its name and symbol.”4
information, branding, and communications Unfortunately, most brand theorists have treated
revolution calls for a diferent approach. brands as identiiers and signiiers of abstract
Traditional marketing has the following four attributes such as “quality.” Their equation reads:
key characteristics: Brand = ID. As we will see, this view misses the
1. A focus on functional features and benefits. very essence of a brand as a rich source of sensory,
Traditional marketers—and product designers— afective, and cognitive associations that result in
assume that customers weigh functional features memorable and rewarding brand experiences: Brand
in terms of their importance, trade of features = EX. Today, customers take functional features,
by comparing them, and select the product with beneits, and product quality as a given. What they
the highest overall utility. want is products, communications, and marketing
2. Product categories and competition are campaigns that dazzle their senses, touch their
narrowly defined. In the world of a traditional hearts, and stimulate their minds. They want
20 DMI 40TH ANNIVERSARY ISSUE 2015
FEATuRE EXPERIENTIAL MARKETING: A NEW FRAMEWORK FOR DESIGN AND COMMUNICATIONS
A strategic framework
THE SOCIO-CULTURAL CONSUMPTION VECTOR for managing experiences
This research builds on earlier work done with
SCCV Alex Simonson that culminated in our book
Marketing Aesthetics: The Strategic Management
(e.g., eating a hamburger as of Brands, Identity and Image (New York: The
part of a casual meal, given your
HEALTHY LIFESTYLE
Free Press, 1997). Marketing Aesthetics, however,
healthy diet)
focused on sensory experiences only. The current
framework is much more comprehensive and
incorporates all types of customer experiences.6 It
SCCV Socio-cultural context is marked by two key strategic concepts: strategic
(e.g., low-fat, healthy-
diet environment) experiential modules (SEMS) and experience
providers (ExPros).
Products
Websites
People
corporation that has created strong stand-alone rigorous safety tests implemented by Daimler-
brand identities (such as General Motors or Benz. The Smart is also fun. Its distinctive look—
Procter & Gamble) may forgo experiential branding tiny, somewhat triangular, and modern—sets it
because it has less visibility as a corporation. But it apart from all others; this car looks like nothing
still needs to manage the experiential identities of so much as a sneaker! Its distinctive two-tone
its products and brands very closely. color scheme is customizable to consumer
speciications, and its interior design is marked by
NEW PRoDuCTS, BRAND ExTENSIoNS, modular parts, which make it possible to stylize
AND PARTNERSHIP STRATEGIES the car quickly and cheaply. In fact, the Smart
In traditional marketing, the goal of new product represents the realization of a car as a safe and
development is often the addition of new features well-designed fashion accessory.
and beneits that will improve old products or old
technologies. Traditional marketing models view GLoBAL ExPERIENTIAL BRANDING
brand extensions in terms of the it between product Experiential branding extended into the global
categories and the transfer of positive equity from arena raises a range of complex issues. Are there
the current brand to the extension product. cultural diferences in preferences for types of
In contrast, the experiential marketing SEMs? For example, do customers in one nation
approach views new product and brand extension prefer FEEL, in a second nation THINK, and in a
decisions as driven by three factors: (1) the degree third one RELATE?
to which the new product and extension category How about speciic experiences? For example,
enhances the experiential image of the company or are certain nations more attuned to aesthetics in
brand; (2) the degree to which new products and SENSE, while others love excitement? Or do some
brand extensions add new experiences that can be like nationalistic RELATE appeals, but others
leveraged in additional new products and further global appeals?
brand extensions; and (3) the degree to which they Do diferent ExPro executions appeal to
help in the creation of holistic experiences. customers in diferent countries?
Similar considerations will also drive the
selection of other companies for strategic Conclusion
partnerships. Such experiential considerations Traditional marketing has provided a valuable
may have been behind the decision of Swatch set of strategies, implementation tools, and
Suggested Readings and Daimler-Benz to form a joint venture to methodologies for the industrial age. Now that
Elliott, Stuart. “Clinique Is
manufacture a new car—a decision that puzzled we have entered a new era, it is necessary to move
Introducing Scent in Bid for
Share of Premium Market.” many industry experts. And the resulting from the features-and-beneits approach toward
The New York Times, September product—the Smart car—is an automotive marketing to customer experiences. Managers
30, 1997, Section D, p. 6.
ofering that is experiential from beginning to end. need to consider new concepts, new approaches,
Kotler, Philip. Marketing
Management (eighth ed.).
The Smart relects the best of both of its parents’ and new structures and processes within their
Englewood Clifs, N.J.: worlds. Its appeal derives from its design, which organizations to capitalize on the opportunities
Prentice-Hall, 1994. couples attention to safety with a customizable ofered by experiential marketing.
Peters, Tom. The Circle of fashion look. The Smart car is a mini, designed to
Innovation: You Can’t Shrink Bernd Schmitt (PhD, Cornell university) is professor of
Your Way to Greatness. New
it in any parking space in any city in the world; international business in the marketing department of
York: Knopf, 1999. its thought-provoking slogan is “reduce to the Columbia Business School at New York’s Columbia University.