Product launches, exhibitions, and the “experience economy”
1.0 Introduction
Integration of effective marketing practices is critical in businesses’ pursuit of sustainable competitive advantage. New product development is one of the most essential elements in marketing. The importance of new product development is underlined by the fact that it enhances a firm’s long-term competitiveness by ensuring that its products are relevant in addressing the changing customer demands and needs. In spite of undertaking successful product development, a firm must ensure that the new products developed are optimally introduced into the target market.
Tesla Incorporation is one of the most successful automobile companies that specialize in designing, manufacturing, and marketing automobile companies (MarketLine, 2016). The company’s operations are based in Norway. Nevertheless, the firm has developed a competitive market position in the global automobile companies. One of the factors that have contributed to the firm’s success entails new product development. New product development has significantly enhanced Tesla Motors’ competitiveness, especially with regard to the development of electric cars, compared to its core competitors such as Chrysler, and General Motors which have been struggling to develop unique products. This paper entails an analysis of the application of exhibition as one of the key components of experience economy in the quest to launch a new feature in its Tesla car models.
2.0 External market
In an effort to remain competitive in the hybrid and electric cars industry, Tesla Motors has announced plans to launch a new self-driving feature in all its electric Tesla models (Hull, 2017). The new feature will be comprised of different features amongst them Autosteer, Forward Coalition Warning, and Autopilot Traffic Aware Cruise Control feature (Perez, 2017).
The firm will introduce the new automobile feature in an industry that is very competitive. A study conducted by MarketLine (2016) shows that the hybrid and electric car market segment has become one of the most competitive segments of the contemporary global automobile industries. The growth in the industry’s competitiveness has been spurred by growth in demand for energy-efficient automobiles. Additionally, the automobile industry is also experiencing pressure from governments and other stakeholders to invest in the development of energy-efficient technologies in order to reduce the amount of greenhouse gases emitted from automobiles (Kojima & Ryan 2010).
In an effort to promote innovation and adoption of electric cars, the Norwegian government has introduced a program that exempts electric cars from taxes. The program of electric cars also entails exempting owners of electric cars from parking fees, road tolls, and free charging stations (MarketLine, 2016). Thus, Tesla will launch the new self-driving car in an industry that is extensively being supported by the government (Reuters, 2016). Tesla projects that the introduction of the full self-driving capability will significantly contribute to improvement in the firm’s competitiveness in an industry that has become very dynamic. This will arise from the fact that the autopilot feature will positively impact the customers’ perception on the need for improved safety with regard to automobiles.
3.0 Site selection factors from the buyer’s point of view
In launching the Autopilot capability in its different car models, Tesla Motors will employ different marketing communication approaches articulated under the MICE model. These concepts include organizing meetings, exhibitions, incentives, and corporate travel and events. Integrating the MICE model will play a fundamental role in improving Tesla Motors' success in exposing the new autopilot feature in its car models. Lenon et al. (2006) emphasize that MICE is comprised of different activities that include organizing special ceremonies, sports events, performances, and festivals. In the process of launching the new feature, Tesla Motors intends to organize a corporate exhibition. The firm’s decision to organize a corporate exhibition in launching the new feature is to enhance the emotional connection amongst the target customers. According to Getz and Page (2017), ‘events are increasing becoming effective in establishing an emotional connection between a firm and the target customers compared to traditional marketing approaches whose impact have declined significantly’ (p. 224). This trend has arisen from the fact that consumers are increasingly seeking memorable experiences. This aspect has led to the emergence of the experience economy (Pine & Gilmore, 2011). In employing corporate exhibition as the core approach in exploiting the advantages inherent in the experience economy, Tesla Motors should ensure that the exhibition is effectively organized. One of the issues that the firm’s management team should take into consideration entails ensuring effective site selection. In selecting the site or venue to hold the corporate exhibition, Tesla Motors should seek to ensure that the venue positively impacts the consumers’ level of satisfaction (Bowdin et al., 2011). Thus, site selection should be based on comprehensive criteria as evaluated herein.
- Price; considering the fact that Tesla Motors intends to create awareness of the new autopilot feature, the firm should ensure that entry into the venue is free. This will play a significant role in increasing the likelihood of the corporate exhibition attracting a sizeable number of hybrid and electric car enthusiasts.
- Location and accessibility; Tesla Motors should ensure that the venue selected for the corporate exhibition event is strategically located. One of the issues that Tesla should evaluate entails the extent to which the site is easily accessible by different means of transport such as road, air, rail, and water. Thus, the firm should undertake an extensive review of the transport infrastructure. In undertaking the exhibition, Tesla should ensure that it has an opportunity to demonstrate the autopilot capability integrated into its Tesla Models. Thus, the firm should ensure that the venue has a well-established road to network to demonstrate the effectiveness of the autopilot capability.
- Capacity of the exhibition facility; the selected venue should have the capacity to hold a large number of car enthusiasts. This aspect will enable the firm to caution itself against overcrowding that might arise if the venue is small.
- Quality of facilities within the venue; the venue should also have access to basic facilities such as eateries and washrooms.
- Parking on site; the venue should have adequate space for parking in order to address the customer's parking needs.
- Information Communication Technology; Tesla Motors should also ensure that the venue is installed with an effective ICT infrastructure. One of the key components that the firm should take into consideration entails the provision of free Wi-Fi. This aspect will play a critical role in enhancing the creation of a memorable experience amongst customers while they are within the venue.
4.0 Designing the exhibition event
The event that Tesla Motors intends to undertake in launching the autopilot feature constitutes a special event because it is not a normal or everyday event but a one-time even that is intended to create a memorable experience amongst the attendees (Berridge, 2017). To increase the value of the event to the firm, Tesla Motors should ensure that the event is effectively designed. According to Berridge (2017), ‘event design entails the concept of a structure for an event, the manifest of expression of that concept expressed verbally and visually which leads to execution of the concept’ (p. 13). In the process of designing the event, organizations’ should ensure that every stage contributes to the development of the intended experience amongst the target audience. Pine and Gilmore (2011) emphasize that in designing a special event such as an exhibition, organizations should focus on the relationship established between the attendee and the firm goes beyond price into experience. The significance of exploiting the experience economy arises from the fact that the development of a memorable experience has a strong influence on the consumers’ decision-making process (Berridge, 2017).
In designing experiences, Tesla Motors should take into focus on exploiting the notion of the ‘experience realm’ (Pine & Gilmore 2011). To succeed in creating the intended experience realm, Tesla Motors may select from amongst four main dimensions of experience involvement that include passive, immersion, active, and absorption (Berridge 2017). In addition to these aspects, the firm should design the event by entrenching a combination of three main experiences that include educational, entertaining, and aesthetic (Getz & Page, 2016). The firm should design the exhibition by focusing on the co-creation of experiences through integration of the both active and passive approaches. Under the passive dimension, the firm should ensure that the event is characterized by entertainment.
Entrenching active participation will entail ensuring that the exhibition event is sufficiently educative and entertaining. These present a generic experience approach that the firm should consider. Additionally, the firm should also consider fostering the development of a specific experience (Berridge, 2017). This can be achieved by providing attendees to experience the autopilot feature. For example, the firm should consider selecting attendees at random and provide them an opportunity to experience the self-drive capability provided by the autopilot feature. Thus, Tesla Motors should ensure that the event attendees are sufficiently engaged (Page & Connell, 2014).
By fostering a sufficient level of engagement in co-creating experiences, the firm will be able to improve the value of the exhibition to the target audience. This arises from the fact that the firm will have an opportunity to respond to the questions that the attendees may have on the new autopilot feature. Thus, the integration of the co-creation approach will make the exhibition interactive. Considering the fact that the exhibition will entail extensive social interaction between Tesla and the event attendees, the firm should consider employing the symbolic interaction theory. Evans and Thomas (2012) assert that social interaction entails ‘the process of forming meaning in support of the formation of personal identify and human socialization’ (p. 216).
In entrenching social interaction theory, Tesla should entrench three main aspects that include meaning, language, and thought. The firm should ensure that the event creates meaning amongst the attendees. Secondly, effective language, which should be comprised of visual and verbal components, should be employed. Additionally, the firm should ensure that the event fosters the development of the intended mental constructs in order to nurture a lasting and memorable experience amongst the attendees. In addition to the above issues, the significance of employing symbolic interaction in designing the event is further supported by Erving Goffman's concept of interaction involvement, which according to Littlejohn and Foss (2009) proposes that ‘meanings and interpretations people attribute to social acts, the pattern of verbal and non-verbal behavior that expresses one's views of the situation and evaluation of the participants including self’ (p. 526).
In the process of designing the exhibition in order to promote the development of the intended experience, Tesla Motors should appreciate the importance of entrenching three main dimensions that include affective, cognitive and conative (Nelson, 2009). The cognitive dimension entails ensuring that the attendees’ perceptions of the event are effectively entrenched while the affective dimension is concerned with the customers’ feelings. On the other hand, the conative dimension emphasizes the importance of ensuring that the target customers develop a positive attitude or behavior towards the marketing event. By taking into account these elements, Tesla Motors will be in able to transform the exhibition into a perfect service experience. Integration of the three dimensions will enable Tesla Motors to establish a balance between the customers’ perceptions and expectations towards the event (Kuiper & Smit 2014).
5.0 Conclusion
The case study underlines the importance of employing effective approaches in introducing new products into the market. Effective product introduction increases the ease with which the new product contributes to the generation of sales revenue. Creating memorable experiences is one of the most effective ways through which businesses can achieve this outcome. Organizing events such as exhibitions constitutes one of the most effective methods that Tesla Motors should consider in launching the new autopilot feature in its different car models. In selecting the venue to hold the event, the firm should take into consideration the elements of price, location, accessibility, ICT infrastructure, and quality of basic facilities in order to increase the likelihood of attendance. However, to ensure that the exhibition is successful in enhancing the firm’s quest to launch the new feature, the firm should ensure that the exhibition is effectively designed. Amongst the issues that the firm should consider in designing the exhibition entails ensuring that the event is interactive, educative, and entertaining. In addition to this aspect, the firm should ensure that the event is valuable in creating a memorable experience by appealing to the attendees’ feelings, emotions, and attitudes. Through this approach, the firm will increase the likelihood of the exhibition impacting the attendee's experience positively.
References
Berridge, G. (2017). Designing event experiences. Westminster: University of Westminster.
Bowdin, G., Allen, J., O’Toole, W., Harris, R., & McDonnell, I. (2011). Events Management.
Oxford, England: Butterworth-Heinemann.
Evans, P., & Thomas, M. (2012). Exploring the elements of design. New York: Cengage
Learning.
Getz, D. (2012). Event studies, theory, research and policy for planned events. New York, NY:
Routledge.
Getz, D., & Page, S.J. (2016). Event studies, theory, research and policy for planned events.
New York, NY: Routledge.
Hull, D. (2017). Tesla is testing self driving cars on California roads.
International Energy Agency: Transport energy efficiency. (2010).
Kuiper, G., & Smit, B. (2014). Imagineering, innovation in the experience economy.
Oxfordshire: CABI
Lennon, J., Smith, H., Cockerell, N., & Trew, J. (2006). Benchmarking national tourism
organizations’ and agencies. New York: Routledge.
Littlejohn, S., & Foss, K. (2009). Encyclopedia of communication theory. New York: Sage.
MarketLine: Hybrid and electric cars in Norway. (2016).
Nelson, K. (2009). ‘Enhancing the attendees experience through creative design of the event
environment; applying Goffman’s dramaturgical perspective’, Journal of Convention & Event Tourism, vol. 12, no. 2.
Page, S., & Connell, J. (2014). The Routledge handbook of events. New York: Routledge.
Pine, J., & Gilmore, J. (2011). The experience economy. Boston, Mass.: Harvard Business
Review Press.
Reuters: Norway aims to allow testing of self-driving cars . (2017).
Rogers, T., & Davidson, R. (2015). Marketing destinations and venues for conferences,
conventions, and business events. New York: Routledge.
Rogers, T., & Davidson, R. (2016). Marketing destinations and venues for conventions and business events. New York, NY: Routledge
