Download The Marketing Mix: From Products to Life Enhancing Experiences

The Marketing Mix: From Products to Life Enhancing Experiences
1. Introduction
The marketing mix has been a staple tool since the phrase was coined by Neil Borden during
his American Marketing Association presidential speech in 1953 (AMA, 2011). Criticised for
its FMCG roots, amongst other issues (Kent, 1986; Grönroos, 1994), since then the concept
has undergone revision and adaptations (Van Waterschoot and Van den Bulte, 1992).
This conceptual paper seeks to continue that tradition of update and revision by
reconceptualising the concept of the marketing mix in the manner of (Chekitan and Schulltz,
2005) in the context of the management of the customer experience (Palmer, 2008). A model
is proposed that updates the traditional marketing mix in an attempt to make it more
reflective of practice where marketing organisations are introducing a degree of experience
and even theatre into their activities (Pine and Gilmore, 1999).
The model is a response to a teaching problem when exploring ways to help students
understand why some shopping experiences feel different to others. In the classroom,
students found the model a useful device to help analyse the marketing activities of
organisations which have intangible aspects to their offerings. Following positive student
responses, the model has been further developed, positioning it as part of an on-going
evolution and update of the marketing mix (Dominici, 2009).
An important further purpose of the paper is to gain colleagues’ feedback regarding the
usefulness of the model as an aid to understanding and teaching and to gain comments
regarding its future development.
2. The Evolution of the Marketing Mix as Demand Influencing Activities
As a planning, learning and teaching aid the marketing mix has been popular with
practitioners, teachers and students for some time (Dev and Schultz, 2005: Dennis et al, 2005:
Dominici, 2009). Based on McCarthy’s (1960) formulation of Borden’s (1953) original
concept (which itself was based on an earlier idea by Culliton in 1948 (Baker and Saren,
2010)) the 4Ps has been a business school and practitioner staple, tactically deployed in order
to create or exceed customer satisfaction (Jobber, 2007). Some writers argue that it would be
difficult to imagine marketing without the mix (Ellis et al, 2011).
With the rise of service industries and an acknowledgement that the traditional 4Ps were not
fully appropriate in this context, came the 7Ps (Booms and Bitner, 1981) as an attempt to
solve the problems associated with the marketing of intangible services. The 7Ps retained the
original 4Ps and added three further elements (physical evidence, process and people, the
latter generally accepted as referring to employees but arguably including customers cocreating value as in service-dominant logic (Vargo and Lusch, 2008)).
Lauterborn (1990), concerned that the 4Ps represented a narrative essentially internally
focused on the marketing organisation rather than on the customer, proposed the 4Cs, with
place becoming convenience, product becoming customer value and benefits, price becoming
customer cost and promotion becoming customer communication, with C replacing P to
suggest greater emphasis on the customer. It is possible that this is the first example of the
marketing mix being evolved by retaining the original concept but extending the concept to a
new narrative by mapping each of the Ps across to a new set of closely related ideas but
changing the initial letter to represent the new narrative. Extending the logic of the previous
4Ps to 7Ps evolution, Beamish and Ashford, (2006) (but based a on previous CIM model
dating to 1998) developed the 7Cs model with the addition of coordination to replace process,
consideration to replace people and, confirmation to replace physical evidence. Brunner
(1989) also suggested a different 4Cs model this time comprising concept, cost,
communications and channels, to take account of the marketing of ideas and brands in
addition to products and services. The SIVA model was proposed by Dev and Schultz (2005),
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with solution replacing product, information replacing promotion, value replacing price and
access replacing place.
What these models have in common is that they all represent a tactical toolkit of marketing
activities that can be controlled and mixed to appeal to specific customers (Kotler et al, 2008,
Dibb and Simkin, 2009). They represent a combination of specific marketing demand
influencing instruments designed to achieve desired responses from target customers (van
Waterschoot and de Haas, 2008). However, according to Baker and Saren (2010), not all
marketing instruments should be viewed as demand influencing elements of the marketing
mix. Some instruments have secondary functions and other organisational functions facilitate,
support and inform marketing instruments. In this sense the model proposed later in this
paper recognises the idea that the marketing mix concept can be applied to marketing
situations in any context, acknowledging that many of these contexts can be very different,
but concentrates on marketing instruments which are seen as demand influencing (Van
Waterschoot and Foscht, 2010). To address these differing contexts other marketing mix
models have been proposed, such as Dennis et al’s (2005) Seven Cs, Nelson’s (2010)
ISAIAH , Resnick and Cheng’s (2011) 4Ps for SMEs model and a variety of internet
marketing mixes such as Chen (2006), Pastore & Vernuccio, (2004) and Kalyanam &
McIntyre (2002) (all three cited in Dominici, 2009). However, because they include nondemand influencing elements they have not been included in the mix evolution in this paper.
Specifically the model concentrates on the experience inducing role of the mix in order to
influence demand.
3. Experience Marketing or Experiential Marketing?
The term experiential marketing is in common use, particularly as services become
commodities (McGoldrick, 2002); a Google search of the term produces over two million hits.
Many of these relate to practitioner agencies engaged in experiential marketing strategies and
solutions. However, the definition of experiential marketing is not commonly agreed. A
typical definition from the practitioner perspective is: “Experiential marketing is about
providing a brand experience where consumers can interact directly with a brand.”
(Marketingminefield.co.uk, 2011). Similarly, “experiential marketing is the art of creating
an experience where the result is an emotional connection to a person, brand, product or
idea”. (Twofeetinthesand.com, 2011). In this context experiential marketing appears to refer
to an event, often one-off, designed to promote a product or idea to influence awareness or
perception. “It's the difference between telling people about features of a product or service
and letting them experience the benefits for themselves” (The Experiential Marketing Forum,
2011). This is supported by Emerald (2008, p1) which describes experiential marketing as the
creation of “a brand environment in a public space and involving potential consumers by
asking them to take part in an activity.” With reference to the 4Ps it appears that experiential
marketing in this sense is simply one of the tools of the promotional mix. Experiential
marketing is not about the real, everyday customer experience but is a promotional device to
increase awareness and improve brand image and loyalty, often delivered as a one-off
campaign. In this context it can hardly be regarded as an approach or a strategy.
There is also some confusion over the meaning of the terms experience marketing and
experiential marketing, with practitioners often using the terms interchangeably (see
Marketing Minefield, 2011). Further, academics define experiential marketing differently to
practitioners: “experiential marketing is the term used to describe marketing activities that
involve the creation of experiences for consumers” (Jobber and Fahy, 2009, p159), whilst
Pine and Gilmore (1999) discuss how organisations use services as the stage and goods as
props to create memorable experiences. These definitions do not appear to limit experiential
marketing to the realm of exclusively promotional activity. There is here a distinction
between experience marketing (for want of a better term) and experiential marketing.
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Experience marketing in the sense meant here involves the entire marketing mix rather than a
part of the promotional mix. Experience marketing refers to the customer’s everyday
experience of dealing with an organisation and refers to how an organisation’s delivery of the
marketing mix can enhance the customer’s experience. This in turn, leads to increased loyalty,
sales and profit (Smith and Wheeler, 2002). But unlike experiential marketing it is not a one
hit activity and is concerned with the customers day-to-day experience of dealing with the
organisation (Abraham, 1981). Experience marketing encompasses the entire marketing mix;
the design of marketing activities to achieve competitive advantage through experiences.
Writers have concluded that the mix must evolve (Dominici, 2009) and have reported
dissatisfaction with the traditional mix (Rafiq and Ahmed,1995, Dev and Schultz, 2005). The
importance of the customer’s experience in building competitive advantage has been
acknowledged (Pine and Gilmore, 1999) and has been shown to encourage customer loyalty
(Voss, 2004). Lindgreen et al (2009) question how marketing practices can adapt to create the
memorable experiences now seen as important and (Dibeehi, 2012) contends that through the
application of the traditional mix businesses have been good at addressing rational
engagement but not emotional engagement. The rational for addressing this is that emotional
involvement and non-utilitarian aspects of consumption have come to the fore (Arnould and
Thompson 2005), now including fantasies, feelings, and fun (Holbrook and Hirschmann,
1982) and the traditional mix has not equipped practitioners well to deal with this shift.
Poulsson and Kale (2004) contend that the marketing of experiences should be seen as
different to services, rendering the services mix ineffective in this regard. Tauber (1972),
cited in McGoldrick (2002), suggested that shopping has an experiential value beyond the
utilitarian obtaining of goods whilst back in the 1970s Toffler (1970) suggested that for
consumers experiences would become as collectable and important as products.
Experience is perceived both rationally and emotionally (Dibeehi, 2012). It is highly
subjective, rich in emotion and symbolic meaning (Holbrook and Hirschmann, 1982) and
models to help with the understanding of consumer experiences have been proposed. Schmitt
(1999) suggests there are five strategic experiential elements: sense (sensory), feel (emotions),
think (engaging customers), act (inducing action) and relate (identity). More recently Pine
and Gilmore (1999) propose four realms of experience: 1. Passive participation /
entertainment / adsorption, 2. Active participation / educational / adsorption, 3. Active
participation / escapist / immersion, 4. Passive participation / esthetic (aesthetic) / immersion.
More recently Allen, Reichheld, and Hamilton (2005) proposed their 3 Ds model to
encompass the design and delivery of customer experiences and the need for organisation to
continue to develop their capability to achieve this.
Although writers have called for the mix to evolve to account for the importance of the
customer experience and models explaining the customer experience have been developed,
there is currently no specific conceptualisation of the marketing mix designed to integrate the
mix and the customer experience that acts as a guide to the activities involved in managing
the customer experience. This paper now goes on to propose such a model.
4. The Experience Oriented Marketing Mix (see appendix 1)
The proposed experience oriented marketing mix consists of the elements outlined from 4.1
onward. It must be noted that each element of the experience mix should be thought of in the
context of the traditional mix element from which it has been derived. The experience
elements, included to encourage a new experience narrative, have been mapped directly from
the traditional 7Ps and 7Cs which are included in the brackets in each heading. This mapping
may be viewed as yet another ad hoc conceptualisation of the mix (Rafiq and Ahmed, 1995).
However, it should be viewed not as an alternative to the mix but as a way of encouraging
practitioners to consider the customer experience and to consider how the traditional mix is
capable of being used to induce rational and emotional demand.
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4.1. Life Enhancing (product/customer benefit): products and services are seen as
providing customers with some form of solution. These solutions may be purely rational but
equally may well have a strong emotional element. Schmitt and Van Zutphen (2012) view
experiences as providing pleasure and positive emotion and should address values and
meaning. In this sense the organisation’s offering is no longer simply a collection of tangible
benefits but becomes something that enhances the customers life and provides meaning (Otto
and Ritchie, 1996). Viewed this way the benefit, or solution, becomes the sense in which the
customer’s life has been enhanced. This can be tangible in the sense of product performance,
which just makes life easier, or intangible in the sense of how the product / brand makes the
customer feel and is often a combination of the two. BMW now promote their cars by
promising joy and fun as the benefit. The enhancement of life is related to Schmitt’s (1999)
experiential strategies of sense and feel and Pines and Gilmore’s (1999) esthetic. The term
“life Enhancing” appears a suitable evolution of the words product or benefit.
4.2. Enjoyable Experience Expertly Executed (process/coordination): besides being
efficient and well-coordinated, experiences should be enjoyable. Dibeehi (2011) calls for
organisations’ processes to be designed to enhance the customer’s experience and Yudelson
(1999) pictures the mix as part of a performance. Grove, Fisk and Bitner, (1992) stress the
importance of business processes that the customer must engage with as important in
dramatizing the customer experience. Here the marketing mix is not deployed simply to help
the customer put up with the organisation’s processes but to provide the customer with
something that is in itself worth experiencing. Crucially it is delivered with competence and
via cross-functional co-operation (Allen, Reichheld, and Hamilton, 2005). Cooperative
Funeral Care now stress that the pain of something as difficult as a funeral can be eased when
handled well. This element of the mix is analogous to Schmitt’s (1999) feel and think and
Pine and Gilmore’s (1999) entertainment and escapist realms. When viewed as a means to
promote the customer’s experience it seems reasonable to think of process as something that
should be an “Enjoyable Experience” that is “Expertly Executed”.
4.3. fair Exchange (price / cost): personally relevant experiences provide customers with
meaningful utility (Poulsson and Kale, 2004). Marketers need to consider not just the price of
the product, nor the total cost to the customer, cost being both tangible and psychological but
the way the tangible and intangible benefits and experiences combine to create meaningful
value. This recognises all that the customer believes they have to gain from the offering; the
balance between what must be given up by the customer and the extent to which they receive
life enhancing benefits. For example, shopping at Waitrose may be seen an affordable treat to
make the consumer feel special (Schmitt and Van Zutphen 2012). It complies with Schmitt’s
(1999) concepts of feel and relate and Pine and Gilmore’s (1999) absorption and immersion.
“Fair Exchange” puts the customer at the heart of the issue more effectively than price or
cost and seems to be a realistic way to think about this element of the mix.
4.4. Easy (place/convenience): marketers should consider what channels and methods of
distribution work best for the customer. In this age of commodity channels and internet
driven retailing, often the easiest becomes the consumer’s choice. This ease of doing business
may relate to physical barriers such as delivery times but is equally relevant for intangible
barriers such as the degree to which the organisation’s values are aligned with a individual
customer’s values (Nijs, 2003); if they are similar, the customer is more likely to find it
psychologically easy to give that business their custom. The Bank Machine Company now
has £5 only machines because it is believed to help people budget better (BBC, 2012). This
relates to Schmitt’s (1999) act strategy and Pine and Gilmore’s (1999) active and passive
participation. Making things “Easy” seems a reasonable determinate of experience.
4.5. Enough Experts (people/consideration): the 7Cs encouraged marketers to employ
people with the right attitudes in order to show customers due consideration. This is now a
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basic expectation; customers are looking for people who can provide expert advice and who
are available and accessible. Cotswold Outdoors and Evans Cycling employ people with the
same hobby as their customers. Grove, Fisk and Bitner, (1992) discuss the need for an
increased attention to the impact that staff can have when managing the customer’s
experience. Smith and Wheeler (2002) state that what companies do is how customer
experience their offerings. In order to have a good experience customers must feel
involvement, be given information and be treated seriously by organisational personnel (Otto
and Ritchie, 1996). This can be thought of in terms of Schmitt’s (1999) relate concept and
Pine and Gilmore’s (1999) education and active participation realms. As an experience
oriented evolution of people and consideration, the term “Enough Experts” captures the
spirit of the marketing intention.
4.6. Engage and Educate (promotion / communication): the media, the message, the tone,
the colour, the language and so on of all marketing communications need to align with
customers’ expectations and should be personally relevant (Poulsson and Kale, 2004).
Organisations must deliver experiences that complement customers’ lifestyles and aspirations
(Smith and Wheeler, 2002) and help improve their lives as a result of engaging with the
organisaton’s products. Jensen (1999) contends that organisations should have credible
stories that are in keeping with customers’ aspirations, hopes and dreams and aligned with
their values. This can be thought of in terms of Schmitt’s (1999) feel, think and relate
strategies and Pine and Gilmore’s (1999) education and active participation realms.
Messages are delivered by an organisation’s communications mix, all parts of which should
seek to “engage and educate” the customer to match, aspirations and values and help create
meaning for them. Zone3, the manufacturer of high-end triathlon wet suits includes elite
coaching sessions, training and nutrition education and racing advice in the cost of their top
of the range suits.
4.7. Endorsement (Physical evidence / confirmation): Physical evidence provides
confirmation of the claims made by marketers. Although it is crucial in managing experiences
(Grove, Fisk and Bitner, 1992) and still plays an important part in the mix, customers
understand that it is employed by the organisation to be persuade. Customers now look to
other sources for reassurance. The positive media and online messages regarding the John
Lewis Christmas adverts and the awards enjoyed by the retailer provide endorsement of the
company’s affordable premium credentials, enhancing the customer’s experience of the brand
(The Guardian, 2011; The Mirror, 2011; The Mirror, 2012; The Telegraph, 2011; Mintel
2012a, Mintel, 2012b). This element of the mix relates to Schmitt’s (1999) act and relate
strategies and Pine and Gilmore’s (1999) adsorption and immersion realms. Organisation
now need to think beyond their own self-generated symbols of confirmation and consider the
“endorsement” of their offering by other customers and experts.
5. Conclusions and Recommendations
The model could provide guidance to managers seeking to concentrate on the customer’s
experience as a source of competitive advantage. As a teaching tool it may be useful in
helping students to analysis and understand the marketing activities of orgaisations that focus
on the customer’s experience. This paper is a conceptual piece and although it draws on
theory is based on observation rather than detailed research. Therefore, it may be desirable to
expose the model to robust research to better understand its application to a variety of
organisations, including those that have not been successful at managing the customer
experience. Additionally, it would be useful to apply the model, through research, to a variety
of other organisational settings, business, not-for-profit, public sector and so on. Feedback
from colleagues, concerning the usefulness of the model, is actively sought and would be an
aid to the further development of the model.
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Appendix 1 – The Experience Oriented Marketing Mix
The Marketing Mix from products to experiences.
Borden, 1953, and
McCarthy 1960
The “4Ps” – Product
oriented
Booms and Bitner, 1981
The “7Ps” –
Service Oriented
Beamish and Ashford (CIM),
2007, based on earlier work
The “7Cs” –
Customer Oriented
SIVA Customer
Focused Mix
The “7Es” – Experience
Oriented
Life Enhancing
Product
Customer benefit
Process
Coordination
Price
Price
Cost
Value
Fair Exchange
Place
Place
Convenience
Access
Easy
People
Consideration
Promotion
Communication
Physical
evidence
Confirmation
Product
Promotion
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Dev and Schultz, 2005
Solution
Enjoyable
Experience, Expertly
Executed
Enough Experts
Information
Engage and educate
Endorsement