Day Three: “The True Value of Experience”

“An experience is not an amorphous construct; it is as real as an offering as any service, good or commodity.1

2

After reading the “Welcome to the Experience Economy” journal article, I have deduced that the value of the “experience” involves what companies do to get the awareness of their respective consumers. For example, how are you as a firm able to stimulate your consumer’s senses? How do you add that something ‘special’ to your service/product? And the most vital aspect of them all, how will consumers remember your service because of this added experience?

It occurs to me that the most important and the most often overlooked value of experiential marketing is that it allows you the unique opportunity to market to people when they are in a particular frame of mind. There are many companies of services/products that are able to take advantage of this sort of marketing, such as; Google, Nike, Adidas, Apple and Sports franchises (such as the NBA, NRL, NFL, etc.)

The Nike brand in particular is very successful when it comes to exploiting the experiential component of marketing, able to intertwine a common consumer experience with their running technology goods. Nike has only just recently jumped on this innovative, labelled “unconventional3” bandwagon, shifting their strategy from directly advertising their products to an experience- which allows their public consumers to openly participate and be inspired by their products through personalised, set experiences, such as the Nike Grid Analysis event.

“We don’t do advertising any more. We just do cool stuff, it sounds a bit wanky, but that’s just the way it is. Advertising is all about achieving awareness, and we no longer need awareness. We need to become part of people’s lives and digital allows us to do that.”- Simon Pestridge of Nike U.K.3

What’s most important is that the actual financial figures are able to back-up the experiential marketing strategy, proving to be extremely effective, as Nike  was able to reduce its costs directed toward advertising their product to 33%, down from 55% 10 years ago4, without losing sales.

References

  1. Pine II, B.J. & Gilmore, J.H., 1998. Welcome to the experience economy. Harvard Business Review, 76 (Issue 4), p98
  2. Pine II, B.J., 1998. Welcome to the experience economy. Harvard Business Review, [Online]. (Issue 4), 98. Available at: http://red-tape.info/Images/Welcome%20to%20the%20Experience%20Economy%20Pine%20and%20Gilmore.pdf [Accessed 27 June 2012]
  3. Brand Republic/ Gareth Jones. 2009. Nike: Just do digital. [ONLINE] Available at: http://www.brandrepublic.com/features/889695/. [Accessed 27 June 12]
  4. The New York Times/ Louise Story. 2007. The New Advertising Outlet: Your Life . [ONLINE] Available at: http://www.nytimes.com/2007/10/14/business/media/14ad.html?pagewanted=all. [Accessed 27 June 12]

a)      WordPress.com/ Jax Rant. 2010. Value of User Experience Design. [ONLINE] Available at: http://jaxinteractive.wordpress.com/2010/07/08/value-of-user-experience-design/. [Accessed 27 June 12]

b)      Nike Grid. 2010. Nike Grid. [ONLINE] Available at: http://www.nikegrid.com/. [Accessed 27 June 12]

c)      Blogspot, Verve Marketing. 2011. Experiential Nike Campaign. [ONLINE] Available at: http://vervemarketing.blogspot.com.au/2011/01/experiential-nike-campaign.html. [Accessed 27 June 12]