Marketing the Experience

Marke&ng the Experience: Applying Product Marke&ng

Concepts to Services and Events

Dr. Juan P. Montermoso CPIM, CIRM, CSCP President, Montermoso Associates Professor of Prac:ce in Marke:ng,

Santa Clara University October 3, 2012

(c)2012 Montermoso Associates

Presenta&on Objec&ves

•  Why “Experiences” need a “next level” of marke:ng

•  Iden:fica:on and illustra:on of those “next level” elements

•  Integra:on of these elements for the customer and the company


The Business World of “Experiences”

It’s all about Services! (c)2012 Montermoso Associates

Impact of Services on Global GDP


Service PaJerns Around the World


How do PM’s Market Services?

Customer Focus Value Proposi:on

Compe::ve Posi:oning

Product Price

Promo:on Place

Differen:a:on via


Limita&ons of Tradi&onal 4 P’s in Services Dimension Concern

Product What actually gets delivered?

Price How do I control costs to properly set prices?

Promo:on How do I promote an intangible offering?

Place How do I ensure the right placement?

Opportunity for another level of differen3a3on


The “Next Level” Framework

Web, Social Media

Process, Physical Environment,

People

Product, Price, Promo:on, Place


Poten&al Differen&ators: Addi&onal 3 P’s

Clear and Unique Process

AZrac:ve, Enchan:ng Physical Environment

Mo:vated and Skilled People


Process: Imagining the Experience

Process Diagram •  Flowcharts • Blueprints

Customer “Script” •  Frontstage • Backstage


An Airline Process Example

From Fare Search…

… to Feedback


Process Benefits

•  Produc&vity – Reduce Costs •  Quality – Increase Revenues


Feeling the Experience: Physical Environment

•  “Serviscape” aligns with the value proposi&on •  Ambiance affects feelings and aZtudes

Signs and

Symbols

Sound &

Scent

Color Warm or cool

S:mula:ng! or

Relaxing


“Touching the heart and the mind”

AT&T Park


Delivering the Experience: People

•  Focus: Developing customer loyalty •  Prepara&on – Skills – Mo&va&on – Opportunity


People Impact: Link Employee Sa&sfac&on to

Customer Sa&sfac&on


Crea&ng Value via “experience” •  Build credibility via the web

Video: You Tube

Audio: Skype


Social Media Factor

•  The “New Word of Mouth” – TwiJer – Facebook – LinkedIn


Using Social Media in Services

Amazon

Yelp (c)2012 Montermoso Associates

Role of Evangelists

•  Adobe vs. Apple


One More Tool: Bundling To Capture Value

Customer Company Ease of use

Lower costs

Enhanced Offering

More Revenue


Comple&ng the Experience

•  Op&mize the service offering


Wrap-‐up: Marke&ng the Experience

•  Create value by focusing on the customer experience

•  Differen&ate the experience with the Addi&onal 3 P’s (process, physical environment, people)

•  Leverage the experience with Web presence and social media tools

•  Capture value from the experience through bundling


Closing Thoughts


Thank You! Ques&ons?

Contact Info: Dr. Juan P. Montermoso, President, Montermoso Associates [email protected] www.montermoso.com Tel: 408-‐390-‐6475


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