Marketing Programs Chapter 5. Experiential Marketing Focus on consumer experience Sony Metreon Focus...

Marketing Programs

Chapter 5

Experiential Marketing

Focus on consumer experience

Sony Metreon

Focus on consumption situation

Guinness museum

View consumer as rational/emotional

Nike sponsorship

Use eclectic methods and tools

Experiential grid (think, feel, do)

Group Activity

Design an experiential consumption situation for:

Sealy Posturpedic Mattress

Black & Decker products

K2 ski equipment

Product Strategy

Perceived quality

Brand intangibles

Relationship marketing & consumer value

Mass customization

Aftermarketing

Loyalty programs

Pricing Strategy

Consumer perception of price tiersfair pricetypical pricelast pricecompetitive pricingusual discounted pricepremium/ luxury price (value added)every day low price

Channel Strategy:DistributionDirect - identify prospects and visit or contact

them

pull strategy

company stores

web strategies

Indirect - agents, retailers, brokers, dealers;

push strategy

retail segmentation

cooperative advertising

Private Labels

Supermarket store brands

20% of all units sold, 15% dollar volume

Value positioning

Lower-price knockoffs

Trader Joe’s strategy

Profiling Activity

Pick a product category

Identify all the brands in that category

Develop a price tier for the category

(Fig. 5-7)

• Identify their pricing strategies

• Critique those you think should be priced differently

Better Pricing: Consumers First1. Consumer’s• value of product/service

Value variationsPrice sensitivityEmotional response

2. Company’s optimal pricing structure3. Competitor’s reaction

Levels of Brand Communications

Strategic Brand Management

Enterprise (company) Communication seeks to make firm more transparent to the outsider by revealing its physique,human, technological and financial means. Content is both factual and economic.Coke’s worldwide presence; Atlanta Olympics

Institutional Communication

Points to firms’ wider values; voice of the company’s heart.

Should make clear the company’s social justification.

Mobil’s People Do Campaign

Brand Communication

Expresses the meaning of the brand’s products.

Brand injects its own value into the product and transforms its status

.

Benetton’s Activist Advertising;Ford’s ‘Quality is Job 1’

Product or Service Communication

Targeted straight at the consumer or client trying to make a decision.

Messages & Incentives

MESSAGES

Short term

Long term

INCENTIVES

• Short term

• Long term

Nissan

‘Everything you need; nothing you don’t’ campaign for the Xterra SUV

Messages

Incentives

Database-driven relationships

Repository of information about customers and prospects

History of relationship transactions

Structural vs. relational databases

Match message with customer aggregate

Tangible asset

Emotional Branding

Feeling good about a brand

Changing Vocabulary of Emotional BrandingThink of consumers as peopleCreate products as experiencesConvert honesty to trustChange quality to preferenceShift notoriety to aspirationSwitch identity to personalityRevert function to feelMake communication a dialogTransform service into a relationship

Where does the brand hit?

HEAD - Aveda Shampoo smart, intriguing, stimulating, end benefit

HEART - Godiva Chocolate emotional/experiential, sensual, beloved, trust

GUT - Prada design wear sexy, cool, have to have it, ‘that’s me’