2-dr getee.ppt

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    A MOVEFROMMASSMEDIATOEXPERIENTIAL

    MARKETING

    The huge growth in the field of experiential marketing

    appears to be the result of the effect of the numerous

    success stories cited in the media.

    According to SRI, experiential marketing drove faster

    results , with consumers suggesting it led to quick

    positive purchase decisions.

    Amongst certain groups, younger consumers and females,

    the results were even more encouraging (Allen, 2005).

    Experiential marketing made consumers more

    receptive of associated advertising, an important factorin an era of integrated marketing communication.

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    Similar results were found by IMI International.

    >55 % consumers ,The biggest influence on tendency toconsume was the ability interact with a product before

    purchase/ to sample.

    In the UK, research undertaken by ID Live Brand

    Experience stated that 85 % of consumers, valued the opportunity to experience;

    touch, smell, taste or hear, products.

    58 %confirmed that experiential marketing had

    encouraged them to make a purchase were notpreviously planning to make.

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    US Bureau of Labor statistics showing that

    Consumer price indices, employment growth and growthin GDP have all increased at a faster rate for experiential

    offerings, than for commodities, goods or services.

    To summarize, the reason behind the continuing growth

    in demand for experiential marketing, is that it appears

    to work for both firms and customers.

    As Witthaus (2004, p. 10) states:

    Experiential marketing achieves measurable results by

    offering innovative ways of communicating withcustomers in their own environment, leading to a better

    ROI. And it offers a memorable, engaging and exhilarating

    way of reaching customers.

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    There is a widespread belief that old models of advertising

    are no longer as effective as they were and alternatives

    have to be sought.

    As Pine and Gilmore (2004, p. 36) argue: there are threedifferent reactions to the decreasing efficiency of advertising in

    reaching consumers.

    - Some have denied its happening,

    - some have thrown money at the situation,and

    - others have tried to create a new direction,

    As Frank Garahan, Rancho Las Palmas Resort General Manager, states

    hospitality marketing is experiential, how do you explain the sensory

    excitement of being here? you cant get the ambiance from an advert(Frasher, 2003, p. 3).

    T&H product is always experiential that puts the sector marketers in a

    unique position to apply the principles of experiential marketing to their

    activities.

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    THEFOURDIMENSIONSOFTHETOURISMAND

    HOSPITALITYEXPERIENCE

    Customerparticipation (ranging

    from active to

    passive)

    Connection(ranging

    from absorption to

    immersion).

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    Entertainment experiences:

    Such as going to a show, usually involve customers

    participating in a passive manner where their connection

    with the activity is likely to involve absorption rather thanimmersion.

    For T&H marketers, the key to this Realm may be to apply it more holistically, i.e.

    to incorporate entertainment into areas outside of the immediate experience.

    Educational Realm: Involve those where participants are more actively involved,

    but are still of an absorption nature, rather than immersion.

    Ex. ski instruction, where participants acquire new skills or increase those they

    already have; such as education programmes, informal lectures, guides orbackground information

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    Escapistactivities

    Those which involve both active participation and

    immersionin the activities environment

    Ex. water-sports or golfing, Participation in holiday sporting activities

    Esthetic Realm,

    Involves a more intense experience than theentertainment experience.

    Tourists immersing themselves in the experience, but with

    little active participation in the experience.

    Ex. looking over the gorges/natural attractions, and simply admiringthe view

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    Generally

    - The Entertainment Realm involves sensing,

    - The Educational Realm learning,

    - The Escapist Realm doing, and

    - The Esthetic Realm being there (Petkus, 2002)

    As the four Realms are not intended to be mutuallyexclusive, however, the richest experiences for consumers

    encompass aspects of all four Realms, producing a sweet

    spot where the Realms meet.

    Pine and Gilmore themselves extensively quote the

    example of Walt Disney World, as being one of the richest

    experiences available to consumers, due to the emphasis

    on employees, attention to the environment and

    attention to the backstage areas.

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    STRATEGIESFOREXPERIENTIALLYMARKETING

    TOURISMANDHOSPITALITY

    Pine and Gilmore originally suggested that there werefive design principles in staging experiences, to which a

    sixth was later added.

    Strategic Step Developing a consistent themefor the experience

    Harmonizing impressions with positive cues

    Eliminating negative cues

    The formation of impressions

    Mix in memorabilia

    Soliciting feedback

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    1. Developing a cohesive/consistent theme for the

    experience:involving establishing a cohesive set of images and

    meanings for the experience. Ex. F&B Is supportive product. Hard Rock Cafe, have a well-defined theme which is achieved through

    consistency in operations, marketing communications, materials and

    employees.

    2. Harmonizing impressions with positive cues: the creation ofmemorable sensory stimuli;

    cues must be consistent with the theme and designed to fully

    support it.

    3. Eliminating negative cues: the need for marketers to remove

    anything that diminishes, contradicts or distracts from the unity of thetheme.

    An entire experience can be spoiled by a single inconsistent message. Ex.

    Disney

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    4.The formation of impressions : using the dimensions time,space, technology, authenticity, sophistication and scale. (Schmitt and

    Simonson,1997) The time dimension refers to the various orientations of past, present

    and future, with different markets with offerings.

    The space dimension can be geographical space, such as tourism

    regions, or physical space, such as indoor versus outdoor.

    The technology dimension refers to natural Vs man-made Vs machine

    made opportunities exist for T&H marketers to develop offerings.

    The authenticity dimension refers to original versus imitative

    representations.

    The scale refers to the size and scope of the offering, like physical space,the number of hotel rooms,

    T&H marketers need to make balances between and within these

    dimensions if they are to develop appropriate experiential marketing

    strategies

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    5.Mix in memorabilia: consumers have always bought or

    appropriated certain mementoes of their vacations and

    visits.

    Engaging all five senses is important because the moresensory an experience, the more memorable it will be.

    Most tourism and hospitality offerings have a range of

    sensory elements, sounds, sights, smells, touch and

    taste.6.Soliciting feedback: is the final strategic step and is

    critical if experiential marketing is to be effective.

    Many T&H businesses seek feedback through such

    mechanisms as guest questionnaires, experientialmarketing requires more innovative and creative

    solutions.