Aaron Rodriguez

October 18,2020

Written Presentation 1

Cohort 21S

“Welcome to the Experience Economy and “The New Experience Economy” highlight many key concepts that are essential to understanding the marketplace. The first is the idea that is that the innovation of the industry is not through the product and enhancing features; but, is an innovation of experience. This does not mean that the product is irrelevant, because it is not. On the contrary the product is a integral part tot the overall experience. This causes companies to not only supply the best possible product. This forces them to look at how they can make the experience of a new product something that a customer will want to continue to engage with. The second key concept is how to craft an experience. This can be summed up on three key factors; time, attention and money. Companies are constantly competing for these three factors of people because time is limited, attention is scarce, and money is consumable. These essential factors cause the experience to be the marketing. In a world that is constantly bombarded with ads on television, print and online it has been found that they true way to engage with customer is through developing a memorable experience and this will cause them to be engaged with a brand and gain affinity to the brand. Experiences are inherently personal, and no two experiences are the same thus creating a high level of competition in the space and drastic innovation in the field. These concepts suggest that the experience is what one is truly paying for and not the product. This can raise the question; Why don’t we charge for the experience then? This will prove to be a terrible business model for a company as experiences are not engaging enough to break the barrier of individuals willingness to spend merely for the experience. For example, at a Nike store there may be some flashy lights, enjoyable music and friendly customer service. However, if they wanted to charge they would have to bring the level of their services to the level of Disneyland who has many shows on the campus, engaging music, parades, rides as well as many other attractions. This barrier shows that although the experience is a key part to sales companies with a product to sell can not be solely reliant on the experience they are providing. A great product combined with a great experience will generate a high volume of sales.

A company that exemplifies these key concepts is Converse with their concept of the “One Star Hotel”. Converse has developed an experience that uses their product as a tool to develop a theme and innovate through the experience by focusing on this they engage people in the experience and are not necessarily focusing on selling the product. Despite sales not being their focus engaging people with their product will eventually lead to the short and long-term sales as these people will continue to think of this experience when they see Converse. Nothing has changed about their product since it first came out but through their marketing tactics, they are changing the perception of the brand and expanding who will be interested in the brand. This strategy also helps with their digital presence. As people take pictures of their experiences as well as post on social media sharing it with their friends.  Their friends will become interested in the brand as well. This cuts down on the costs of Converse as they do not have to pay for ads on social media and commercials on network television. Their fans are doing the advertising for them and their advertising is trusted and more targeted than any paid advertising can do. Along with the hotel concept there was also musical acts like IAMDDB and The Basement as well as rooms curated by A$AP Nast and Yung Lean. These people help celebrate the counterculture and show a deeper meaning to consumers of who Converse is. By crafting an experience this makes Converse more than a shoe and turns them into a movement. This allows them to be able to sell not only shoes but also hats and shirts which have not been a part of their product line in the past. Marketing tactics like this are innovative because of the message that they are able to convey about a company, and in the case of Converse they are saying “We aren’t mainstream, we are the counter culture” and in a world that wants to be different and stand out they signal to be the perfect brand for that. Converse allows their customers to have truly personalized experiences that connect them with the brand Converse has truly succeeded at marketing in the experience economy. They innovated the way that they sell their product by developing experiences that people will truly enjoy by engaging them with interesting sights and sounds while telling their customers more about who they are as a brand. Showing a personable side to the company is something that will prove beneficial to the company as people will have a connection with the brand and drove them to come back over and over again.

 

https://www.complex.com/sneakers/2018/02/look-inside-one-star-hotel