Marketing

4 Ps of Experiential Marketing

4 Ps of Experiential Marketing. A brief overview of the Marketing Mix framework - Product, Price, Place and Promotion - and how they relate to Experiential Marketing

Live, one to one interactions with a brand forms the core of Experiential Marketing. As a multi dimensional marketing communication paradigm, experiential marketing can be hard to define and explain in terms of popular marketing models. Traditional marketing is passive and unidirectional - with content targeted from the brand to the consumer. Experiential marketing is active and bidirectional in nature, with the consumer being as active a stakeholder in the process as the brand.


The-Four-Ps-of-Marketing

 

Experiential marketing typically consists of multiple touch points. Conversions might occur at a single touch point, or they may occur after multiple experiential interactions at several touch points. Thus, traditional marketing attribution models can’t be ported over easily to an experiential marketing campaign. However, certain popular marketing frameworks are relevant for Experiential Marketing. Notable among them is the Marketing Mix, which is explained below.

This post is a part of our series on Experiential Marketing (visit the main page by clicking on this link) or download the guide directly in PDF format from below.
 
Download Free Experiential Marketing Guide

 

Marketing Mix OR The 4 Ps of Marketing

Marketing Mix, or the 4 Ps  of marketing is perhaps the most well known marketing framework. Introduced by Neil Borden in 1964, and formalized and popularized by E. Jerome Mccarthy, Marketing Mix is a concept widely used by marketers today. The 4 Ps stand for: 

  • Product
  • Price
  • Place
  • Promotion

Combined together, these 4 components provide a comprehensive marketing framework, empowering creative marketers to analyze, understand and design a successful marketing strategy for a product or service.

The Marketing Mix has a wide area of focus.

  • Product - It enables marketers to understand the product and the problems it solves.
  • Price- It helps them define the optimum price points for their products.
  • Place- It helps them identify the relevant distribution and marketing channels through which to market the product.
  • Promotion - It guides the marketers’ strategy and execution for advertising and promotions.

The Marketing Mix strikes a balance between the needs of the consumer and the requirements of the seller. By providing the right product, to the right person, in the right place and manner, marketers can dramatically increase the value provided to consumers, while growing the seller’s business and bottom line.

The Marketing Mix framework, with a little modification, can apply to Experiential Marketing as well. While Experiential Marketing is largely considered to be the domain of Promotions, it can influence decisions and strategy for the other three Ps of the marketing mix as well.  It is a great tool to communicate the value proposition of a product - both functional and economical, ie. the Product to market and the Price. Due to its engaging nature, Experiential marketing can be implemented at distribution channels and point of sales - the Place.

Here is how Experiential Marketing complements the 4 Ps of marketing:

Product

This component of the Marketing Mix focuses on the product or the service being sold. It includes product development, product design, quality, features, customer service, and product marketing. A good understanding of the product is necessary to meet the needs and demands of the consumers. It also influences decisions on all the other 3 of 4 Ps of the marketing mix. A careful understanding of the product and how it solves the consumer’s problems is necessary for successful product marketing.

Experiential product marketing makes communicating  a product’s value proposition easy. Experiential marketing, or engagement marketing, does not passively feed information about the product to consumers. Rather, it seeks to demonstrate the value, by letting the consumers use the product being marketed - directly or indirectly, in a controlled setting.

Further, marketers may want to highlight specific aspects of a product in their product marketing efforts. For eg, a vehicle manufacturer would lay emphasis on the after sales service aspect, while a furniture store like Ikea would focus on the product design. Skilled marketers can design consumer experiences optimized for the required product aspects. This would help consumers understand the specific value proposition of the product, and make an informed, confident buying decision, as well as lead to more sales for the company.

Example - Mahindra, a leading Indian automobile manufacturer, launched a small, commercial truck. The emphasis was on the fuel efficiency and robustness of the truck. WOWSOME designed a Mixed Reality Experiential Marketing campaign where consumers could experience the low cost, low maintenance requirements and high fuel efficiency of the trucks. For more details, refer to our Case Study on the same. 

 

Price

Put simply, Price refers to how much a company charges consumers for the product/service. Too high a price would be a deal breaker for most consumers, while too low a price may affect the sustainability of a business. Price also includes the pricing models and options, as well as any bargains or discounts currently being offered.

Price is closely tied to the perceived/actual value of a product to the consumer. By changing this perception, marketers could charge higher for the same products and services, while consumer satisfaction would increase as well. Besides, similar to the Product aspect of the Marketing Mix, Price is a also a great measure of value to the consumers, especially for cheaper goods/ FMCGs.

Experiential marketers can design experiences that would emphasize the value associated with the current price of the product. They could achieve this by directly appealing to the low price, or the indirect economic benefits to the consumer.

For eg. in the Mahindra truck launch Case Study referenced above, the campaign focused on the monthly and yearly fuel cost savings to the owners. While not directly related to the truck’s price, it emphasized the net economic benefit to the consumer, and helped improve the consumer perception of the product price.

Place

Place refers to a wide scope of location-based activities. Primarily, it refers to the product distribution channels and delivery systems to put the product in the consumer’s hands.

Secondarily, it refers to the place your product has in the consumer’s mind. The first is influenced by the product type, sales cycle, product life-cycle, user profile, purchase and distribution channel and medium. The second is achieved by marketing communication, brand image and advertising catchphrases.

Experiential marketing can integrate deeply with these distribution channels. Typically, product distribution and promotion are treated separately, especially for physical products. However, following the place strategies in the marketing mix, consumer engagement marketing at particular places such as point of sale, retail stores etc can significantly increase sales and conversions.

In marketing mix, place based experiential marketing can also be implemented at advertisement and promotion touch points. Users can be tracked across multiple touch points. The problem of marketing attribution can be simplified  as well.

For eg. print advertisements can be made engaging and interactive using Interactive Print technology. This would drive conversions and sales at the promotion channel itself. To see an example of Interactive Print in action, check out this case study on how WOWSOME implemented interactive print in Print Play feature of The Hindu.

 

  

Promotion

Once the other of the 4 Ps of the Marketing Mix are dialed in, it is time to optimize Promotion. Promotion in marketing mix covers advertising, social media and digital marketing, public relations, branding etc. Promotion is the functional vehicle through which marketing efforts are delivered to the target consumer.

Experiential marketing is built around the idea of doing better, engaging, immersive promotions. Using creatively designed, novel brand experiences, marketers can command the attention of their consumers, position themselves and their product effectively in the mind of their consumers and drive conversions and revenues up.  

Modern experiential marketing also leverages immersive technologies like Mixed Reality,  Augmented Reality and Internet of Things to communicate product benefits in a creative, fun and engaging way. For 4 Ps of experiential marketing examples, check out our Case studies to see how we used Mixed Reality in experiential marketing campaigns to promote a pesticide product, to launch a commercial vehicle launch, to drive a recruitment campaign at IIMs, and to use interactive print for a leading national newspaper.

In each of the case studies, we have carefully chosen the 4 Ps. For example, the first two campaigns also reached out to people from rural areas. The P&G's recruitment campaign reached out to a specific audience - college students. Hindu PrintPlay, on the other hand, is an ongoing online campaign that reaches out to people all over the world.

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Conclusion

As explained, the 4 Ps of Marketing  or Marketing Mix can be used to analyze, contextualize and optimize Experiential Marketing campaigns. Using the framework, you can design and execute a winning marketing strategy and achieve your business goals.

The framework lends itself very well to Experiential Marketing, which is a heavily consumer-centric marketing paradigm. Using the Marketing Mix framework, marketers can identify product benefits and features relevant to their customers, create and communicate efficient pricing and identify high performing distribution channels and conduct Experiential Events at the same. Finally, they can transform their product promotions for a great brand impact with highly engaged customers.


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