1. Miyoung Jeong, PhD Ann Marie Fiore, PhD Linda Niehm, PhD Haemoon Oh, PhD Cheryl Hausafus, PhD Apparel, Educational Studies, & Hospitality Management Iowa State University

2. 2 Overview of Curriculum Purpose: Enhance business competitiveness in the areas of small rural retail, hospitality, & tourism –By developing experiential strategies for a company’s website design Curriculum Five lessons (CD-ROM available) Two Assessment Tools –Assessment Tool I. Marketing Plan Framework –Assessment Tool II. Development of Experiential Websites Extension Educator Training Guide

3. Five Lessons Lesson 1: Experience Economy Strategies Lesson 2. Experience Economy Strategies Adding Value to Rural Businesses Lesson 3. Aligning Experience Economy Strategies of the Business and E-commerce Website Lesson 4. Assessing Experience Economy Strategies of the Business Lesson 5. Assessing Experience Economy Strategies of the E-commerce Website 3

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5. How can you distinguish successful business from un-successful business? –Vision –Innovation –Opportunity recognition –Passion for change –Customer-focused strategy Exceptional staffing High quality products Superior customer service Positive, engaging, memorable experiences –Experiential valueExperiential value 5

6. 6 Progression of Value : An Example of Corn

7. 7 Four experiences by Pine & Gilmore

8. 8 Definition of 4Es Education: customer's skills and knowledge through active participation in the experience Esthetics: customer enjoyment of an enriched, unique physical design. Enjoy passively appreciating or “just being in a setting” of the business Escapism: customer shapes or contributes to the experience, which offers the customer a way of taking on a new persona Entertainment: watching the activities and/or performances of others.

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10. 10 Competitive advantage is: A distinct combination of offerings that customers want and only you can uniquely provide What makes your business more attractive than your competition

11. 11 How small businesses develop competitive advantages: Traditional ways: –Delivering goods to customers better, cheaper, or faster Non-traditional ways: –Enhancing customers’ experiences as a way of creating value for them

12. 12 Experiences as a key competitive resource for small businesses because they: Can be very unique Are hard to copy Are difficult for larger firms to effectively deliver on a personal customer level Can be personalized and flexible

13. 13 According to Pine & Gilmore, a “better” business means having: Differentiated offerings from competitors, such as experiences High quality goods and services Retail “Escapist” – Harry Potter party Pegasus & Pendragon Books: Berkeley, CA http://www.pegasusbookstore. com/

14. 14 Experiential offerings can: Address a higher level of customer value Uniquely position and differentiate your small business Create value for your business

15. 15 A differentiation strategy must: Offer a competitive advantage Attract customers by positioning offerings in a unique and distinctive way Be truly different in the eyes and mind of the customer Be of value to the customer

16. 16 Diagram for creating a unique combination of offerings to achieve differentiation Adapted from: Kotler, P. (1997). Marketing Management: Analysis, Planning, Implementation, and Control. Upper Saddle River, NJ: Prentice Hall. Pine, B.J., & Gilmore, J.H. (1999). The Experience Economy: Work is Theatre and Every Business a Stage. Boston, MA: Harvard Business School Press.

17. 17 Using the diagram from Pine & Gilmore’s theater example: Consider the following: –Goods are like props –Services can be seen as the stage –Personnel are the actors –Experiences are added to each element All of the elements must work in coordination with each other for the “play” to be a hit

18. 18 When considering your differentiation strategy, you must keep in mind: All elements make sense and hinge on a common theme How your customer experiences the theme All of the details that support your theme taken into account

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20. 20 Making something memorable means to make a positive experience easy to recall or remember at will As a business owner, you should aim to make your business memorable

21. 21 Experiences that may come to mind when you say, “I remember when….” Situation of personal significance such as –Getting engaged –Winning an award Rarity, surprise, or suspense such as –Spotting a mountain lion when on a neighborhood walk –An acrobatic circus show

22. 22 Experiences that may come to mind when you say, “I remember when….” Special design or sensory features such as –Decorations of a party or holiday –Incredible natural beauty of nature like the colors of a setting sun Intensity of emotion such as –A really scary roller coaster ride –An exciting moment in sports

23. 23 Memorable experiences lead to Word-of Mouth (WOM) advertising, which is: Positive communication by the customer to friends and relatives A cost effective promotional strategy Often referred to as “free advertising” Considered a more persuasive message when coming from a trusted source Likely to reduce perceived risk associated with patronizing a new business

24. 24 Creating memorable experiences requires the following specific techniques: Repetition of information Personally relevant experiences Making sense of unexpected information Physical performance of an action rather than simply observing Multi-sensory (e.g., sight, smell, sound) experiences Emotionally arousing experiences

25. 25 Memory making techniques are embedded in Pine & Gilmore’s experience economy strategies by: Creating a theme and harmonizing the cues around the theme reinforcing the business message Offering educational and escapist experiences that actively engage the customer Providing rich, multi-sensory settings Arousing customers’ emotions

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27. 27 A multi-channel business: Markets or sells through more than one distribution channel –Physical stores –Catalogs –Direct mail –Websites

28. 28 A multi-channel business: Role of a Website in a multi-channel distribution –Marketing the business to the existing and potential customers online –Online sales transaction –Customers’ developing impressions about the business

29. 29 image Business image refers to: Message the business projects including the experience it creates for the customer impression Business impression refers to: Customers’ perception (belief or feelings) about the business including experiences fostered by the image

30. 30 Your Website is the customer’s first impression of the business: It is a lasting impression It affects the customer’s further exploration of the Web site It sets up expectations of the business for the customer

31. 31 A consistent image between the physical business and its Website helps: Customers recognize and recall a business Customers perceive the same distinctive 4E offering of the business The business “connects” with the targeted customers

32. 32 Experiential offerings should be reinforced through the business’ Website in order to: Attract more customers Set up appropriate customers’ expectations

33. 33 An example of Mundt’s Candies: The educational experience offered by the historical setting and historical information shared in the store is reinforced on the Web site through: –Content about the history of the company http://www.mundtscandies.com/ –Content about the history of its signature candy fish http://www.mundtscandies.com/candy.html

34. 34 An example of Mundt’s Candies: The educational experience offered by the historical setting and historical information shared in the store is reinforced on the Web site through: –Content and images of traditional candy making processes http://www.mundtscandies.com/more.html –Content and images of historical sites of the Madison, Indiana area http://www.mundtscandies.com/flavors.html

35. 35 An example of Mundt’s Candies: The educational experience offered by the historical setting and historical information shared in the store is reinforced on the Web site through: –Link to the Historic Landmarks Foundation of Indiana http://www.historiclandmarks.org/

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37. Why should we have a marketing plan? To align with mission statement and long-term strategic plans To review and think objectively through all steps in the marketing process To assist in the budgeting process to match resources with marketing objectives To create a process to monitor actual against expected results To help position the firm competitively in the marketplace

38. 38 Building blocks of a 4E-based marketing plan:

39. Internal audit of offerings: Evaluating the 4Ps Identify current strengths and weaknesses including the 4Es offered to the customer Evaluate the 4Ps in conjunction with the 4Es –4Ps of the firm: Property, Product Presentation, Promotions, and People

40. 40 Internal audit of offerings: Evaluating the 4Ps Identify current strengths and weaknesses including the 4Es offered to the customer Evaluate the 4Ps in conjunction with the 4Es –4Ps of the firm: Property, Product Presentation, Promotions, and People

41. 41 Segmenting, targeting, and positioning: Positioning: placing a business clearly in the minds of customers by instilling a strong, salient, and positive image

42. 42 What are 4E offering strategies? Encompassing tangible goods, instrumental services, and the 4Ps (Property, Product Presentation, Promotional Application, and People) that contribute to the experiential offering (Re)designing or selecting goods, services, and experiences to better meet the needs and preferences of the selected target market segments Addressing the SWOT for your organization Thinking about how you can specifically enhance value for the customer through 4E aspects of your total offerings

43. 43 Guiding principle for the 4E offering strategy by Pine and Gilmore (1999): Theme the experience Harmonize impressions with positive cues Eliminate negative cues Mix in memorabilia Engage the five senses

44. 44 Pricing strategies: Affect the demand for a business offering and becomes an unavoidable focus of competition Should be done carefully in a way to maximize profit margin and, at the same time, minimize the customer’s switch to competitors Need to include the new business offering Should reflect how much customers are willing to pay for the new offerings Are determined by trial and error in many cases

45. 45 Advertising strategies: Create the customer’s initial expectations about the company’s offerings and such expectations bring the customer to the business Should best reflect the business offerings, especially the newly added 4E elements Must be consistent with the positioning theme Must be convincing to the chosen target customer groups

46. Assessment Tool I Marketing Plan Framework

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48. 48 Purposes for the business Website: To provide Information To generate online transactions

49. 49 Website features and functions strongly influence customers’ perceptions of: Information and service quality Ease of use Pleasure Website design quality

50. 50 A successful Website: Attracts more and repeat customers Makes customers feel the site is trustworthy, dependable, and reliable Generates customer satisfaction Engages customer in a unique Website experience forming a strong bond to the business.

51. 51 The Website should create “telepresence”, which: Gives the customer a sense of being someplace else Depends on how closely the Website simulates the business’ physical location Provides rich Information necessary to form a clear business impression Allows the customer to interact online as they would in the physical location

52. 52 The three key components of Website design: 3Is –Information Written or verbal content of the Website –Interface Elements creating the site’s appearance or sensory appeal –Interactivity Safe and easy online transactions along with the 4Cs (Connections, Customization, Communication, & Competition)

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54. 54 Information: The first of the 3Is, pertains to the written or verbal content of the Website.

55. 55 Information provides details about : The business –such as its background history, mission, location, or policies Business offerings Experiential value offered by the business

56. 56 Information content must be: Accurate Current Concise but with sufficient details Easy to understand Relevant to the customer

57. 57 Information aspects of the Website: Subject matter - the topic of the Information Source - the creator of the Information Style of expression - the way Information is delivered

58. 58 Information aspects and the 4Es: 4Es 3Is Educational Experience Esthetic Experience Escapist Experience Entertainment Experience Information Subject matter General or specific background on goods, services, or company; 4Ps contributing to Educational experiences Elements of, or emotions created by, goods, services, and 4Ps leading to the Esthetic experience Elements of the 4Ps or the resulting sense of a different time, place, or personas defining the Escapist experience Events held and elements of the 4Ps supporting the Entertainment experiences SourceFirm, customer, expert StyleFactoid, motivational, testimonial, or tutorial style Poetic, imagery- producing style Creative, fantasy-based style in the ‘voice’ of a character Witty, humorous, or amusing style

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60. 60 Interface: Elements creating the site’s appearance or sensory (sight and sound) appeal Communicates a consistent business image Communicates/reinforces the experiential nature of the business’ offerings

61. 61 Interface elements: Multimedia aspects –Still pictures (.jpeg) or graphical images (.gif) –Animated digital or graphical images –Music or sounds (.wav) Design aspects –Background design elements –Page layout –Design qualities of lettering

62. 62 Considerations for image selections for the Interface: Will the image load quickly? Will the image look good with other images on the page? Will the image look good with the text colors or background on the page? Will the image look good when it is repeated (tiled) for a page background? Will the background color be safe (available) for use with all browsers? Will the background image or color and lettering qualities make it hard to read the text?

63. 63 Multimedia and Design aspects can be drawn directly from the 4Ps: Images/virtual tours of Properties Logos or lettering found in Promotional material Photographs of attractive Product Presentations (packaging) Audios of People such as singing wait staff

64. 64 Care must be taken:

65. 65 Multimedia and Design aspects should: Coordinate with one another Create a compatible image Reflect the business image and the 4Es Parallel the Information content

66. 66 Design aspects of Interface and the 4Es: 4Es 3Is Educational Experience Esthetic Experience Escapist Experience Entertainment Experience Interface Multimedia aspects Subject matter Multimedia aspects that capture elements of the Educational experience offered through the 4Ps Multimedia aspects that capture elements of the Esthetic experience offered through the 4Ps Multimedia aspects that capture elements of the Escapist experience offered through the 4Ps Multimedia aspects that capture elements of the Entertainment experience offered through the 4Ps

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68. 68 Interactivity: Entails safe and easy online transactions, as well as the 4Cs: Connections to other sites, Customization (i.e., access, comparison, and personalization) of content, Communication, and Competitions Connects customer to other sites Customer customizes content of the Website Customer communicates with the business/customers Customer competes in games and contests

69. 69 Useful forms of Interactivity: Links to other sites Customization functions through search engines or wish list Communication functions through service links, forums, chat rooms, customer reviews Contests and games Zoom functions

70. 70 The 4Cs of Interactivity and the 4Es: 4Es Educational Experience Esthetic Experience Escapist Experience Entertainment Experience Interactivity ConnectionsLinks to other sites that expand relevant knowledge or skill Links to other sites that offer, or enhance appreciation of, Esthetic experience Links to other sites that offer, or enhance appreciation of, Escapist experience Links to other sites that offer entertainment CustomizationFeatures that allow easy retrieval of related content, or comparison/ personalization of content based on set parameters Features that allow the creation of virtual esthetic environments or focus on esthetic details Features that allow the creation of virtual escapist environments Features that allow creation of entertaining online experiences

71. Assessment Tool II Development of Experiential Websites

72. * Click to download this assessment tool in MS Word format. 3Is: Information, Interface, and Interactivity 4Es: Educational, Esthetic, Escapist, and Entertainment Experiences 4Ps: Property, Product Presentation, Promotional Application, and People Assessment Tool II Development of Experiential Websites Building on the knowledge gained through Lessons 1 through 4, this assessment tool provides a systematic way to evaluate and improve the 3Is of your business Website, to better contribute to the 4Es, and to reinforce value from the 4Ps of the business.

73. Assessment Tool II.1 Website Information –Accommodation/B&B http://www.bedandbreakfast.com/ http://www.bbonline.com/index.html http://www.usinns.com/ –Restaurants http://www.webaward.org/winners_detail.asp?yr=all&award_level=best& category=Restauranthttp://www.webaward.org/winners_detail.asp?yr=all&award_level=best& category=Restaurant http://www.roadfood.com –Retail Stores http://www.redwoodcoastchamber.com/retailshops.asp http://www.webaward.org/winners_detail.asp?yr=all&award_level=best& category=Retailhttp://www.webaward.org/winners_detail.asp?yr=all&award_level=best& category=Retail –Rural Tourism http://www.pafarmstay.com http://calagtour.org/AgTour.ASP

74. Assessment Tool II.1 Website Information Now evaluate your business Website by determining how well the following features enhance the 4Es. Give your Website either a plus ‘+’ if the feature already enhances the 4Es of the site or a minus ‘-’ if the feature can be improved to enhance the 4Es. Identify which of the minus (-) features to focus on in your beginning efforts to enhance the 4Es of the site.

75. Assessment Tool II.1 Website Information Educational Experience +- Comments 1.Interesting information about my company’s history 2.Detailed information about the qualities or background of my firm’s offerings 3.Special details of the services 4.Historical or cultural information about the surrounding area 5.Customers’ testimonials related to my company or its offerings 6.Educational tutorials related to my company’s and/or its offerings Esthetic Experience +- Comments 1.Poetic information about my company and/or the 4Ps 2.Imagery-producing information about my company and/or the 4Ps

76. Assessment Tool II.1 Website Information Escapist Experience +- Comments 1.Creative, fantasy-based information about my company and/or the 4Ps 2.Information about offerings that allow customers to feel as if they are in a different time and place Entertainment Experience +- Comments 1.Witty, amusing information about my company and/or the 4Ps 2.Entertaining information about the 4Ps

77. Assessment Tool II.2 Website Interface Educational Experience + - 1. Still images of the 4Ps 2. Still images of goods/services 3. Animated images of the 4Ps 4. Animated images of goods/services 5. Business logo 6. Navigation buttons 7. Music or sounds 8. Background image 9. Layout of page 10. Lettering Comments Esthetic Experience + - 1. Still images of the 4Ps 2. Still images of goods/services 3. Animated images of the 4Ps 4. Animated images of goods/services 5. Business logo 6. Navigation buttons 7. Music or sounds 8. Background image 9. Layout of page 10. Lettering Comments

78. Assessment Tool II.2 Website Interface Escapist Experience + - 1. Still images of the 4Ps 2. Still images of goods/services 3. Animated images of the 4Ps 4. Animated images of goods/services 5. Business logo 6. Navigation buttons 7. Music or sounds 8. Background image 9. Layout of page 10. Lettering Comments Entertainment Experience + - 1. Still images of the 4Ps 2. Still images of goods/services 3. Animated images of the 4Ps 4. Animated images of goods/services 5. Business logo 6. Navigation buttons 7. Music or sounds 8. Background image 9. Layout of page 10. Lettering Comments

79. Assessment Tool II.3 Website Interactivity 4CsEducational Experience +- Esthetic Experience +- ConnectionLinks to other sites Customizati on Search engine “Create your own” Wish listColor matching Wish list Communic ation Customer service links Forums Chat rooms Customer reviews Competitio n ContestsNA GamesNA Comments

80. Assessment Tool II.3 Website Interactivity 4CsEscapist Experience +- Entertainment Experience +- ConnectionLinks to other sites Customizati on Search engine “Create your own” Wish listColor matching Communic ation Customer service links Forums Chat rooms Customer reviews Competitio n Contests Games Comments