Marketing Strategy
in Service Business
- amegaro@unisa.it -
Programme
• Marketing and Service Marketing: an overview
• Marketing plan
• Complexity management
• New marketing strategies approaches: Relationship
Marketing and Many-to-Many network; Experiential
marketing; Unconventional marketing
• New marketing vision: Service Research - from S-D logic &
Service Science to service ecosystems & service systems
• Technologies as Decision Support Systems for marketing
strategies
Case studies
Examples
Project work
Agenda: Lesson 3
• Complexity management
• New approaches: Relationship Marketing and Many-toMany
network; Experiential marketing; Unconventional
marketing
Examples
Complexity management
3.1
The world of business is increasingly interested in the
evolution of research studies concerning complexity, in the
widespread conviction that, to deal with new situations and
survive in a context characterized by an elevated degree of
dynamism, existing interpretation schemes, based on
predefined and standardized solutions, are often insufficient.
Definitions of complexity
Phenomena for which there isn’t a potential solution in the
realm of problem solving approach can be identified, and they
are ever more widespread and complex.
Should the phenomenon in itself be considered as complex?
Is it possible that the same phenomenon can be perceived as
complex by one subject and even simple by another one?
In other words, what defines a phenomenon as “complex”?
Definitions of complexity
Decision makers are increasingly facing new situations and
behave in contexts characterized by an elevated degree of
dynamism (change, social inference, numerous actors,
numerous external resources, different goals/perspectives)
This is the reason why their existing interpretation schemes,
based on predefined and standardized solutions, are often
inadequate…
7
Definitions of complexity
Definitions on complexity have to take into account the
traditional distinction between quantitative and qualitative
elements.
In quantitative terms, complexity generally depends on elements
such as:
• size of the market;
• number and parts;
• different social roles incorporated, the number of social
personalities present;
• many coordination mechanisms.
Definitions of complexity
In the qualitative dimension:
• complexity is characterized by a large number of parts
that are linked in various ways;
• complexity is an emerging phenomenon whose exact
form cannot be predicted.
Definitions of complexity
Do we share the same idea of complexity?
complication versus complexity
Definitions of complexity
Complexity within the realm of social sciences, and therefore in
business organizations, intervenes when it is forced to neglect
a structural perspective to analyze the context, and needs to
evaluate “objects”, both tangible or intangible, not solvable
through calculation criteria.
Observers are forced to analyze objects characterized by:
• indistinct relational boundaries,
• changing and evolving relationships (in time and space),
• emergent and not predictable behavior,
• dynamic social interactions.
Perspectives of analysis
We can adopt the Viable Systems Approach:
- as an interpretative approach to qualify
the concept of complexity, highlighting its
systemic nature
- as a governance approach for
investigating the general implications of
complexity for decision making and the
specific implications for the marketing
approach
Viable Systems Approach (vSa) as an
interpretative approach
• Complexity does not characterize the system in itself, but emerges
subjectively, charactering the interpretation of the context made by the
decision maker.
• A phenomenon can generate chaos, complexity or simply complication. It
depends on the interpretative capacity of the decision maker, not on the
characteristics of the phenomenon (huge variety, variability, etc.).
• Complexity manifests itself when the interaction emerging from relations in a
specific process does not respond to clear cut criteria of behavioral rules.
• Organizations are viable systems aiming at surviving in their context
– the context conditions in which they act are relevant for the system’s
outcome
vSa as an interpretative approach
The VSA suggests that the adoption of a systemic view of
the phenomenal reality helps to highlight some
important aspects of complexity, which allow to manage
organizations with greater awareness.
Different observers perceive different levels of complexity
because the complexity is fundamentally linked to the
understanding of the subject observer than the observed
reality; it follows that it is necessarily subjective.
vSa as an interpretative approach
An observer with an important understanding
skills and deep knowledge of the phenomenon
observed, will be able to interpret the analysis
in more than a untrained observer that,
therefore, will give a more complex reality in
question.
vSa as an interpretative approach
Premise I
Different observers perceive different levels of complexity.
The affirmation in 1. postulates an important element: whilst referring mainly
to a phenomenon as much as to a process or a material object being
observed, the attribute “complex” qualifies not only the case or the object in
itself, but also the context in which it is perceived.
It is not the problem in itself that is complex, but rather the relative problem
solving process in which complexity emerges, depending on the perspective
from which reality is observed and objectives are set forth.
Premises
Premise II
An observer, at different times, perceives different levels of
complexity.
The observer is in fact able to increase his knowledge and his
understanding of the situation observed over time, and gradually
he will perceive a decreasing level of complexity of the same
phenomenon, since he, with a repeated observation, will be able
to understand more and most operating rules and the explanatory
variables than in analysis.
Premises
Dimensions of
Complexity
variety
variability
indeterminacy
variety
Numerosity of elements and interdependencies
Explicative attributes of the aspects
Aspects of the identified character
Characters of differentiation of the phenomenon
variability
Changes affecting the quantitative measure of a
phenomenon
New attributes previously unknown
Possible variations with which the
phenomenon presents itself to the
observer
Additional varieties that can
emerge with the passing of time
Ability to understand the
phenomenon in its entirety
vSa as an interpretative approach
comprehensible
Comprehensibility owned
by the observer
(his perception)
not
comprehensible
Level of subjective
understanding of the variety
vSa as an interpretative approach
Representation Model of Complexity
comprehensible
+ 
Area of complication
not comprehensible
indeterminacy
0
variety of the observer
Area of Unknowing
vSa as an interpretative approach
Usually it should be possible to contrast what is simple with what is
complex, the dichotomy exhausting all casuistry of phenomena and
possible events. By definition what is intended as simple, by
exclusion, establishes what is complex.
A more adequate process would consist in a taxonomy that includes
in the description of phenomena and events, the categories of
chaotic and complicated.
Only then would it be possible to detect and justify circumstances
and situations that are generically definable as complex but that
in substance can be considered at most governable (with
commitment) and defined complicated and in other cases, as
ungovernable, impossible to frame within any type of interpretation
scheme and therefore, chaotic.
vSa as an interpretative approach
In business economics, changing contexts, have led to the
constant revision of reference paradigms where the inefficiency of
interpretation schemes based on non codified rules have resulted
in complexity.
This is best expressed in the curve of the “4C” where individual
knowledge is applied initially in a context of chaos, i.e. incapacity
to understand the dynamics of the phenomenon/problem
observed and an interpretation scheme of cognition is devised
through three phases: abduction, induction and deduction.
The knowledge curve: the «4C»
The knowledge curve: the «4C»
The knowledge curve: the «4C»entropy
information
Problematic situation: CHAOS
In the chaotic phase, the incoming information
confuses the decision maker; he is unable to use
the incoming information to circumscribe the
phenomenon.
There is a trend towards states of ever greater
disorder.
The knowledge curve: the «4C»entropy
information
ABDUCTION
The decision maker has a decisive idea. The solution idea
allows him to start observing more clearly.
Abduction occurs in a moment of cognitive effort: it takes
passion, interest, commitment.
Abduction ≠ Intuition that does not presuppose the
availability of information.
The knowledge curve: the «4C»
information
entropy
Problematic situation: COMPLEXITY
The growth of entropy is still ongoing and the
confusion is still increasing, but at a
decreasing rate. The decision maker still does
not know how to approach the problem. In
this phase, the maximum peak of entropy is
reached.
The knowledge curve: the «4C»
Barile, 2009
information
entropy
INDUCTION
Induction implies the empirical test of the
hypothesis developed in the abductive moment.
In this phase the decision-maker has built an
interpretative scheme but has to understand if it
may be valid or not to solve that situation.
The knowledge curve: the «4C»
Barile, 2009
information
entropy
Problematic situation: COMPLICATION
The decision maker has a solution hypothesis to
apply but there are still methodological, technical
and instrumental difficulties.
The knowledge curve: the «4C»
Barile, 2009
information
entropy
The hypothesis test gave a positive result.
The hypothesis, confirmed by experience and
repeated application to the problem, is
schematized in technique or operating model.
This phase is centered on the formalization of
problem solving criteria, as a specific
interpretative scheme for a generalized use.
DEDUCTION
The knowledge curve: the «4C»
Barile, 2009
information
entropy
Problematic situation: CERTAINTY
The area of certainty is the area in which the
problem appears to be completely overcome. The
decision maker, at this moment, has full knowledge
of the problem and of the solution path. He only
needs new information to better circumscribe the
situation and how to manage it.
The curve of the “4C” illustrates the distinction between the three
critical phases relative to the evolution through problematic situations
of chaos, complexity, complication and certainty.
1. abduction, by means of creativity, posits a solution to the problem;
2. induction, implies the empirical testing of such a hypothesis;
3.deduction, is centered on the formalization of problem solving
criteria, as a specific interpretation scheme for generalized use.
The described dynamic manifests itself each time context
conditions change and decision makers are impeded from fully
grasping the change.
The knowledge curve: the «4C»
From Traditional Marketing to
Relationship Marketing
3.2
From
Traditional Marketing
to
Relationship Marketing
O Q
O Q
From traditional to Relationship
Marketing
A New Perspective of Marketing
Relationship marketing involves a change in managing the
relationship with customers and other stakeholders.
This change involves the adoption of a collaborative logic,
in the management of a business and in the managing the
relationships with other actors.
... to strategic
relationships
From
exchange…
From traditional to Relationship
Marketing
The exchange approach implies that the companies involved in
the transaction are oriented to exclusively maximize subjective
value.
operator
“A”
operator
“B”
TransactionSearch for the subjective maximization
of the value generated by the
transaction.
From traditional to Relationship
Marketing
The Relational Approach implies that companies involved in
strategic relationships are oriented to create and share new
value.
operator
“A”
operator
“B”
RelationshipContribution to maximize total value of
the relationship.
From traditional to Relationship
Marketing
Relationship Marketing
3.1
The rational reasons why a new way of marketing is born
can be found in the relationship with the target audience.
Relationship marketing: origins
Relationship marketing: example of
prosumer
Relationship marketing: example of
prosumer
Relationship marketing: example of
prosumer
Customer
CUSTOMERS
ORIENTATION
After 1960...
Relational
Marketing (RM)
Customer
Relationship
Management
(CRM)
ProviderCustomer
The focus is on
the relationships
between two key
actors
After 1990...
Customers
Providers
Many-to-many
approach
After 2000...
Customers as the
pivot, the focus
of attention in
the market
Network
orientation
Focus on multilevelled
networks
of actors/
stakeholders
Relationship marketing: origins
Hakansson (1979)
Establishing, negotiating and managing relationships with
stakeholders is essential to obtain sustainable competitive
advantage based on long-term agreements.
The management of relationships between the company and
the main stakeholders is entrusted to marketing which should
represent the “sensitive soul” of the company capable of
understanding, adapting, proposing, measuring.
Relationship marketing: origins
Kotler (1992)
Focus on long-term objectives and relationships
Berry (1983)
Service is created, built and developed to start, maintain and
improve relationships with users.
Relational marketing: origins
Bendapudi and Berry (1997)
Four variables influence the characteristics of relationships:
1. Environmental dimensions
Providers
environment
Consumers
I
N
T
E
R
A
C
T
I
O
N
2. Service providers’ main features
3. Consumers interested in the service
4. Interactive dimension
Relationship Marketing
PASSIVE
Marketing
ACTIVE
Marketing
Marketing
=
Selling
Relationship
Marketing
Aim: to increase the value of relationships with customers
through the enhancement of users’ loyalty
Definition: Creation, development, maintenance and
optimization of relationships between customers and
organizations
Selection and analysis of specific targets (not anymore broad
segments) to reduce the asymmetry between the company and
every single user through multi-channel strategies: from classic
media (telephone/ print) to web communication
Bidirectional relationships and increased knowledge of users
Relationship Marketing
Relationship Marketing: a new mindset
Shfit to a collaborative approach to relationships
that pursues total value maximization and subjective
value maximization to improve:
- Synergistic relationships and involvement in the
value creation;
- Long term partnerships that contribute to system’s
well-being.
A change in the managerial approach to relationships with
users and stakeholder is needed
Identification of strategies to establish durable relationships
consumers-brands
THROUGH the involvement of target users in long term
programmes that provide immediate benefits and sense of
belonging to brand
Relationship Marketing
ONE-TO-ONE: direct relations between
consumers- companies and brand-targets
ONE-TO-ONE RELATIONSHIPS
• New technologies, social networks and IT systems contribute
to engage customers in business decision- making
• Personalization of relationships with users, seen as unique
individual entities with specific needs.
• Customers become partners of organizations and contribute to
the design of value proposition for theirselves, for the
organizations, for other customers
• Development and creation of relationships based on
interactivity, connection and mutual learning
Personalizing Relationships
Personalizing Relationships
• Creation of different targets with different needs for
different actions and service offering;
• Knowledge on users’ requirements, needs and tastes;
• Bidirectional communication.
To optimize relationships, personalizing strategies are needed
• Marketing mix – Personalizing product
Product operational decisions concern attributes such as
packaging, brand, materials
Personalizing Relationships
"Share a Coca-Cola" vs "Nutella is you“
Divergence of intent between the two brands: while the first - starting from
the person who buys the drink - wants to involve other people, meaning the
buyer as a sort of donor, the second stops with those who buy Nutella who,
therefore, do not donate and he does not share, but keeps it for himself.
Coca-Cola's choice could be defined as “social”.
Nutella's choice as “individual”.
Both, therefore, try to release a viral-emotional contamination, taking however
- different paths at some point.
• Marketing mix – Personalizing product
Personalizing Relationships
Personalizing Relationships
• Marketing mix – Personalizing price
Customizing the price means setting different prices for each
customer, also possible thanks to Internet:
• different prices depending on the quantity (eg. Reduction
of shipping costs based on volumes of sales)
• group prices: different prices for each group of customers
with homogeneous characteristics (no shipping costs for
Amazon Prime subscribers)
Personalizing Relationships
Pizza Hut Table
https://www.youtube.com/watch?v=xvT0MCugb58
• Marketing mix – Personalizing place
Personalizing Relationships
Pizza Hut proposes this concept to indicate how ordering a pizza
could become an experience in the near future.
The concept is a restaurant table with multi-touch technology
that allows you to customize, order and pay for the pizza you
want with a few simple touches on your smartphone.
You can pay by simply placing your smartphone on the table
thanks to the next NFC technology and wait for the order,
perhaps while we are playing on the table which in the meantime
has transformed into the mega second screen of your
smartphone.
The new pizza experience is served.
Special birthday promotions
A clear communication plan
must be created, because
loyalty is a transversal process
in which it is necessary to
know and be known.
• Marketing mix – Personalizing promotion
Personalizing Relationships
 Model for that all-encompasses pre-delivery and post-delivery
 Key role of information systems and technology
Berry, 1999 Pride and Ferrel, 2005; Schael, 2005
Customer Relationship Management
CRM
Align systems
with goals and
strategies
Consolidate
customer data
Study and
segment
customers
Personalize
customer
interactions
Re-evaluate
and recalibrate
CRM strategy
Everyone is much more than a customer
Life stage defines a person’s major
concern
Customer Lifetime value
Customer Relationship Management
The sharing of a common language: that can enhance
knowledge sharing and the exchange of information that
increase marketing collaboration and the creation of a cohesive
set of value
Relationship Marketing
Relationships can be developed over time through:
A coherent culture: based on common trust and shared
purposes that allow at reducing uncertainty and opportunistic
behaviors of partners
To retain customers (and obtain loyalty) is better than acquire
new ones with the reduction of service quality
The aim of relationship marketing is to establish, strengthen and
renew over time stable and durable relationships with customers
to create and regenerate constantly the production of mutual
benefits
Relationship Marketing
RESOURCES - WHY?
• Recurrent in our literature
• Useful in practice (limited)
Resource integration in S-D Logic
Resources are not inherently “ valuable, ” but become more or less
valuable depending on the context of their integration
(Chandler and Vargo, 2011).
Resources are not, they become
(Zimmerman, 1951; Vargo & Lusch, 2014 )
RelationshipTime CapabilitiesInformation
Total Relationship Marketing
3.3
Many-to-many Marketing
Many-to-many marketing is an expression that describes
and analyses the network aspect of marketing.
Fonte: Valdani E., Busacca B., Micro & Macro Marketing, 3/95.
one-to-one
© E. Gummesson 2003 many-to-many
Customer
Relationship
Management (CRM)
The customersupplier
relationship
in focus:
one-to-one
© E. Gummesson 2003
Marketing as
Networks All
stakeholders in
focus:
many-to-many
Customer
Relationship
Management (CRM)
The customersupplier
relationship
in focus:
Marketing as
Networks All
stakeholders in
focus:
Some terms have been used to describe the voluntary links
between firms and other economic entities, including network,
"heterarchy" and "polycentric structure".
However, the term "network" is now generally accepted to describe
this emerging economic entity.
The networks originate from the desire of different actors to be
involved in a common process to enhance resources, skills and
synergistic activities.
Relationships exist if there is a network (in theory even composed
only of the elementary link between two nodes), which in turn
takes shape through the organization of the relationships between
the nodes.
Network
These networks embed suppliers, partners, general practitioners,
individuals, banks, government agencies, operators and all those
subjects who cannot be considered separately in their operational
context, but must be involved in systems from which to benefit from
collaboration, roles, rules and strategies.
Network theory attempts to analyze the phenomena of sharing
resources and objectives, in terms of organizational constructs including
“nodes”, “links”, “aggregation forces”, “central control”,
“dynamic equilibrium” and “structural variability”, used to explain
the multiple contributions to value creation within the observed
systems.
Network
What is a Network?
Endless definitions!
Between these:
"a specific set of links between a specific set of
actors with the additional property that the
characteristics of these links as a whole can be
used to interpret the social behavior of the
observed actor"
Network Analysis
It assumes the importance of relationships and interactions
between actors and includes theories, models and
applications expressed in terms of relational concepts and
processes.
In network theories, the unit of investigation is never
isolated, but it results as a set of actors, interrelated.
Network studies focus on:
• Dyads (2 actors and the links between them)
• Triads (3 actors and the links between them)
• Network aggregates with a greater number of actors
(network)
Network Analysis principles
• Actors (and their actions) are seen as interdependent,
rather than autonomous and independent units;
• the relational links between actors are channels for the
transfer and/or flow of resources (tangible or intangible);
• network-based models see the environment surrounding
the network structure as a source of opportunities and
constraints on the action of the actors (nodes) taken
individually;
• such models conceptualize a structure (social, economic,
political, etc.) as a stable network of links between
actors.
Network Analysis principles
• Actors linked with others through social ties
• A bond establishes a correlation between at least one
pair of actors
• There is a transfer of resources (tangible / intangible:
information, transactions, skills, services, etc.)
• Behavioral interaction: an interaction emerges from the
relationship!
• Sometimes they are formal bonds (authority)
• Sometimes they are informal, but based on strong
attractiveness (weak ties such as: esteem, generosity,
power, interest, friendship, etc.)
Network Analysis principles
Relationships - interactions
• A relationship structurally describes the possible link
between 2 actors (connects 2 nodes).
• Between actors various types of links can be detected and
evaluated (between 2 same nodes there can be different
links depending on the perspective).
• The relationship refers to the static / structural moment,
therefore it does not require an actual exchange.
• When the relationship is activated, there is interaction,
exchange.
Each Network is characterized by:
1. Presence of heterogeneous actors (nodes);
2. Relations (connections) between various elements (static
condition, concerning the structure);
3. Common goal (equality);
4. Sharing of resources;
5. Existence of a government (be it centralized or
widespread);
6. Willingness to define rules, principles, limits and
boundaries;
7. Interactions between subjects inside and outside the
Network (dynamic condition, concerning the system);
8. Sustainability orientation (long-term survival).
These networks involve supplier and customer networks with
dense and intricate connections, and are win-win based and
service-oriented.
The network view of decision making imply that many
contributing actors more or less consciously support value
creation processes, thus also supporting business
competitiveness.
System relationships lead business actors to a necessary
mutual satisfaction for diffuse value creation and
competitiveness.
Network theories
Istitutions
(LocalGovernment)
Detailers
(Theme Parks, Cultural Heritage Business,
Public dealers)
Partners
(consortia, trade associations)
Customers
(Turists)
Destination
Governance
Destination Service Eco-System
More win-win
interactions, more
value
Network
Value generation and Networks
Fonte: Valdani E., Busacca B., Micro & Macro Marketing, 3/95.
From relational and systemic point of view,
competitive behaviour today seems to be based no
longer upon dyadic relationships between actors,
but rather upon a many-to-many relational and
system pattern daily involving supplier and
customer networks with dense and intricate
connections, win-win based and service-oriented.
Many-to-many Marketing
An hospital is represented by its own interface (the
administrative counter or the laboratory technician, or
the specialist doctor), but all of these actors are part of
a much wider relational network in which there are:
doctors, nurses/health workers, auxiliary staff,
administrative staff, electromedical equipment
suppliers, diagnostic equipment suppliers, other
generic suppliers of the Diagnostic Center, etc.
The Patient, on the other hand, is embedded in a
relational network composed by himself and his
family, the general practitioner, the specialist doctor,
the pharmacy, the hospital, etc.
Relationship
between an
hospital and its
patient.
Many-to-many Marketing
Example: Healthcare
The health system is composed by a complex network of actors who,
in various ways, are configured as useful resources for the system
itself.
Institutional actors (ASL, hospitals, etc.), national and territorial
entities (Regions, Municipalities, etc.), organizations (scientific
societies, trade unions) and, last but not least, people (citizens,
patients..) are all subjects which must necessarily participate in the
efficiency and effectiveness of the service and therefore in the overall
performance of the system.
Many-to-many Marketing
Example: Healthcare
Many-to-many Marketing
Example: Healthcare
Many-to-many Marketing
Example: Healthcare
Actors 'Information' interests
Patient inform promptly and in detail about their needs and conditions
Doctor acquire in time the latest updates on care, administrative procedures,
diagnostic and prevention processes
Pharmaceutical company understand what the real needs of the market are and / or propose
reliable and quality solutions to customers
Hospitals offer the right spaces and adequate professionalism to guarantee a
high standard of quality to its users
Universities acquire the evolution of needs from the healthcare context and
consequently plan the various training courses
Ministry of health define and sponsor practicable, accessible and strategic operational
lines
Government encourage the integration of the communication system, through the
unification of databases, the simplification of application and payment
procedures, the wide dissemination of information on loans, etc.
Pharmacies, clinics,
laboratories, diagnostic
centers and general
practitioners
Promptly communicate with both territorial and national
pharmaceutical distributors and warehouses; try to network
(especially locally)
Gummesson: has proposed a marketing based on interactions
between relationed actors in networks focusing:
• On relations – the existance of a relation is perceivable in case two
or more parts are in contact; usually B2C relations represent the
classic relation betweeen business and customer;
• On interactions - interactions correspond to activated relations
capable of representing a contact;
• And on networks – a set of relations can identify a network,
sometime this network can be very complex.
Relations can be identified as lens capable of supporting the decision
maker in understanding what is going on, supporting wise decisions.
Total Relationship Marketing
The introduction of this new philosophy facilitates
the synergic development of the value generation
and the definition of long-term relationships useful
to the growth of the system (producer-customerretailer-[..])
intended as a whole.
Classic market relationships:
R. 1. Supplier and customer
R. 2. The customer - supplier - competitor
R. 3. Network - distribution channels
Total Relationship Marketing
Gummesson’s 30 Relationships
Special market relationships
R. 4. Full-time marketers and part-time marketers
R. 5. Customer and service provider
R. 6. Many-headed customer and many-headed supplier
R. 7. Relationship to the customer's customer
R. 8. Close and distant relationship
R. 9. Dissatisfied customer
R. 10. Monopoly relationship: customer or supplier as
prisoner
Total Relationship Marketing
Gummesson’s 30 Relationships
Special market relationships
R. 11. Customer as "member"
R. 12. E-relationship
R. 13. Parasocial relationships, with symbols and objects (as
the brand)
R. 14. Noncommercial relationship
R. 15. The green relationship
R. 16. The law-based relationship
R. 17. The criminal network
Total Relationship Marketing
Gummesson’s 30 Relationships
Mega relationships
R. 18. Personal and social networks
R. 19. Mega marketing - the real "customer" is not always
found in the marketplace
R. 20. Alliances change the market mechanism
R. 21. The knowledge relationship
R. 22. Mega alliances change the basic conditions for
marketing
R. 23. Mass media relationship
Total Relationship Marketing
Gummesson’s 30 Relationships
Nano relationships
R. 24. Market mechanisms are brought inside the company
R. 25. Internal customer relationships
R. 26. Quality providing a relationship between operations
management and marketing
R. 27. Internal marketing - relationships with the employee
market
R. 28. Two-dimensional matrix relationship
R. 29. Relationship to external providers of marketing services
R. 30. Owner and financier relationship
Total Relationship Marketing
Gummesson’s 30 Relationships
in sum…
(if you look for wise decisions
to plan a marketing strategy
that may be useful to
overcome complex
situations…)
put on your nose
the network eyeglasses!
Total Relationship Marketing
Experiential Marketing
3.4
• Experiences can turn the moment of consumption into a
memorable event
• Experiential reframing of the processes of delivery and brand
management
Marketing as experience
The «traditional» marketing strategies (STP- segmentation,
positioning and targeting) and tactics (the 4 Ps) are reread
the lens of experience which permeates service with a
totalizing experience
Mehrabian and Russell, 1974; Pine and Gilmore, 1998;
Schmitt, 1999; Addis, 2007
THROUGH
Marketing as experience
Experiential or sensory marketing starts from an assumption that each of us is driven to
purchase by a mix of conscious and unconscious components. While the former are more
easily analyzed because they are linked to the rational sphere, the latter are more hidden but
exert a strong influence on many of our habitual behaviors.
Consider that the word "know", synonym of knowing (and knowledge is often the basis of
every decision, therefore also of a purchase), has its roots in the physical experience of tasting.
Marketing as experience
“Today, customers take functional features and
benefits, product quality and a positive brand image
as a given. Products, communications and marketing
campaigns should “dazzle” their senses, touch their
hearts, and stimulate their minds.
They want products, communications, and campaigns
that they can relate to and that they can incorporate
into their lifestyles” (p. 57)
“ To provide customers with engaging and
attractive experiences can allow companies at
gaining the edge over competitors, in a way that
the “simple“ satisfaction cannot guarantee»
Schmitt (1999), Experiential Marketing
Planning of Brand Experience
Customer Experience Management
Study of the experiences that
customers lived and can live through
consumption
Building of experiential positioning
Activation of relationships with
customers that enter the experience
ANALYSIS
STRATEGY
DESIGN
IMPLEMENTATION
Schmitt’s Model (1999)
Creation of experiences for the mind that stimulate
intellectual, creative and problem- solving capabilities
The first «level» that builds the sensorial experiences by
using the 5 senses (taste, smell, touch, hearing and sight)
Emotional experiences related to the brand that evoke and
recall emotions and customers’ internal feelings
Impact on corporeal experiences, lifestyles, interactions
Connection of individuals with themselves, other
individuals and culture. This level all-encompasses the
features of the other levels.
Sense
Think
Feel
Relate
Act
Schmitt’s Model (1999)
Strategic Experiential ModulesSEM
Evergreen brand which symbolizes the american
way of life
The company turned a drink into a state of mind,
a status symbol, a cult product for youngsters
worldwide
The brand embodies the value of friendship, fun,
happiness
Coca Cola
Marketing as experience
https://www.youtube.com/watch?v=BbgrHnbgoDU
Marketing as experience
Starbucks Reserve Roastery, MILANhttps://www.youtube.com/watch?v=rhEpoq-nSYA
Marketing as experience
https://www.youtube.com/watch?v=ojmne-cs6EI
Marketing as experience
https://www.youtube.com/results?search_query=SPRITE+SHOWER
Unconventional Marketing
3.5
Set of marketing strategies and tactics aimed at:
• Generating emotions
• Memorability (awareness)
• Uniqueness
• Create surprise
• Involve recipients (engagement)
Unconventional marketing
Guerriglia marketing (from spanish) is the definition coined by the
American advertising Jay Conrad Levinson in 1984 in his book of the
same name, to indicate a form of non-conventional and low-cost
advertising promotion obtained through the creative use of aggressive
means and tools that leverage the imaginary and feelings in end users.
• Unpredictability
• Originality
• Strong psychological approach
• Subversion of the pre-established order
• Be everywhere and anyway
Guerrilla Marketing
Neuromarketing is a recent branch aimed at identifying communication channels
more direct to purchasing decision-making processes, through the use of
methodologies linked to neuroscience discoveries.
It fuses traditional marketing (economics) with neurology (medicine) and
psychology (behavioral sciences) and aims to illustrate what happens in people's
brains in response to some stimuli related to products, brands or advertising with
the aim of determining strategies that push to buy.
Neuromarketing
Application of neuroscience and psychological studies to
analyze processes and factors that may affect the
consumer choice and behavior in order to detect any
changes in attitude as the context and value proposition
change.
The aim is «to get inside the customer’s head» (Lee et
al., 2007)
Interdisciplinarity :
medicine/behavioral economy
Neuromarketing
Purposes:
• Intercepting and anticipating consumer behavior (and
changes in attitudes and preferences);
• Compare consumers' brain reactions to certain stimuli,
solicitations and emotions;
• Investigate the brain mechanism that leads consumers
to decide and choose the value proposition.
Neuromarketing: an example
Pepsi Challenge (1975), they offered hundreds of people two
anonymous glasses.
One glass contained Pepsi, the other Coca Cola:
• in terms of taste, 75% said they preferred Pepsi but they kept
buying Coca Cola anyway.
• It shows that the consumer behavior depends on different
factors: in this case, taste and brand image.
Antonietta Megaro
amegaro@unisa.it
THANK YOU.
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