A

PROJECT REPORT

ON

EVENT MANAGEMENT

A detailed study done in

“INTERNATIONAL BUSINESS”

Submitted in partial fulfillment of the requirement for the award of degree of Bachelors of Business Administration (BBA) under Bharati Vidyapeeth

Deemed University, Pune.

Submitted by

Sahiba sehgal

BATCH: 2015-2016

Under the guidance of

MRs. Survinder walia

Bharati Vidyapeeth’sSchool of Distance Education, (BVIMR)A-4, Paschim Vihar, New Delhi-110063

1

DECLARATION

This is to certify that I have completed a Project tit "EVENT MANAGEMENT” under

the guidance of SURVINDER WALIA in the partial fulfillment of the requirement for

the award of Bachelors of Business Administration of Bharati Vidyapeeth University,

New Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.

Sahiba Sehgal

2

PREFACE

It is designed in such a way that student can grasp maximum knowledge and can get

practical exposure to the corporate world in minimum possible time. Business schools of

today realize the importance of practical knowledge over the theoretical base. The

research report is necessary as it provides an opportunity to the researcher in

understanding the industry with special emphasis on the development of skills in

analyzing and interpreting practical problems through the application of management

theories and techniques. It is a new platform of learning through practical experience.

3

ACKNOWLEDGEMENT

I would like to take this opportunity to express my sincere thanks and gratitude to my

college BHARATI VIDYAPEETH for all their guidance, inspiration, constructive

suggestions which helped me in the project.

The successful start of this project was made by their guidance and co-operation.

I also owe my heartfelt gratitude and deep regards towards my guide MRS.

SURVINDER WALIA for leading and directing me at every step of the project. I would

like to thank her for her invaluable help and for her crucial role throughout the course.

Last but not the least I would like to thanks all the people who directly indirectly who

have helped and encouraged me in completing the project effectively and timely.

Signature of the student

(Sahiba sehgal)

4

Table of Content

Introduction about the Company 7

1. INTRODUCTION 10

1.1 CONCEPTUAL FRAMEWORK 13

1.2 PROBLEMS ASSOCIATED WITH TRADITIONAL MEDIA 17

1.3 RELATIONSHIP BETWEEN EVENT MEDIA AND 5P’s 17

1.4 EVOLUTION OF EVENT MARKETING 19

1.5 KEY ISSUES FOR EVENT MARKETING 21

1.6 WHY EVENT 23

1.7 SPONSORSHIP Vs EVENT MARKETING 28

1.8 SIZE OF EVENT 30

1.9 TYPES OF EVENT 31

2. CRITICAL REVIEW OF LITERATURE 36

2.1 WATERSHED EVENT 37

2.2 THE KEY TAKE-AWAY 38

2.3 ROLE OF EVENT MARKETING IN MARKETING MIX 39

2.4 ROI DELIVERD BY EVENT MARKETING 41

3. RESEARCH METHODOLOGY 44

3.1 OBJECTIVE OF THE STUDY 44

3.2 NEED OF THE PROJECT 44

3.3 SCOPE OF THE PROJECT 45

3.4 METHODOLOGY 46

5

4. EVENT MANAGEMENT A PROMOTIONAL TOOL 47

4.1 EVENT DESIGNING 47

4.2 COMMUNICATION EFFECTS OF EVENT MARKETING 50

4.3 EVALUATION OF EVENTS 53

4.4 REACH INTERACTION MATRIX 61

4.5 RETURN ON ONVESTMENT 62

4.6 KEY PROSPECT ANALYSIS 66

4.7 HOW TO BUILD A SUCCESSFUL BUSINESS

PROMOTION AND MARKETING PLAN 67

4.8 STATEGIC ALTERNATIVES 69

4.9 RISK Vs RETURN MATRIX 75

4.10 APPICABILITY 76

4.11 ADVANTAGES OF EVENT 77

5. ANALYSIS AND RESEARCH FINDINGS 79

5.1 PRIMARY DATA ANALYSIS 79

5.2 INTERVIEWS AND DETAILED DISCUSSIONS 88

6. RECOMMENDATIONS 91

7. CONCLUSION 92

8. BIBLIOGRAPHY 93

9. ANNEXURE 94

10. KEYS TO SUCCESSFUL EVENT MARKETING 96

6

CHAPTER 1:Introduction about the company

Vision arts is a division of Vision entertainment ltd. Vision Arts is a team of qualified professionals brimming with zeal and fervor to make an event of yours an extravagant affair to remember for an entire era.Vision Arts Company started in March 2103.

Logo of the company

EVENT   MANAGEMENT COMPANY

Vision arts is an event management company, we supervises corporate events, such as product launches, Annual Day / Family day, corporate anniversary parties, meetings, conferences, Dealers Meet and marketing programs such as road shows and grand opening events. In addition, we coordinate special corporate hospitality events such as concerts, award ceremonies, parties to launch new products or services, fashion shows, commercial events, and even private (personal) events such as wedding planning in Delhi and religious services. Event management firms can handle a variety of specific event-related services, which can range from a few select services for clients with limited budgets, to handling all creative, technical and logistical aspects of an event.

VISION ARTS is a well established Event management Company with the strategy to establish an exciting and inspiring environment around the audience so that our guests or prospective clients experience cutting edge art direction of every visual element - We lift the impact of each and every event, M.I.C.E. (Meetings, Incentives, Conferencing, Exhibitions) or Branding Portfolio to new level of success and unparalleled identity.

Event management involves visualizing concepts, planning, budgeting, organizing and executing events such as fashion shows, musical concerts, corporate seminars, wedding celebrations, theme parties, product launching etc.

We, VISION ARTS, help our clients achieve their objectives through the development and execution of customized special events. Maximum client satisfaction will be achieved through our involvement.

7

Our professional experience in event planning covers every aspect of event management, which also includes a comprehensive network of relevant contacts ensuring that you are provided with a superior quality of services as well as competitive rates at every stage of event planning.

OBJECTIVEOur OBJECTIVE is simply to certify enchantment for all the services we provide to our clients as we have an uncanny ability to convert ideas to things, and eventually a reality, which is the backbone to success!

GOALOur goal of team at the VA will cater to all your needs no matter how trivial it is. We believe each action of ours is crucial as it is not enough to take steps which may lead to a goal; each step must be a goal in itself.Passion, enthusiasm and dedication of our team ensures that we share good VIBES with you by providing end to end solutions totally on the basis of sheer hard work and ability to convert your dreams into a reality.

Our MissionTogether we build successful events that connect people with markets that are renowned for being professional and memorable, and reflect our own personal touch. GUEST SATISFACTION IS OUR ASPIRATION!!

Our Vision”To build a group of companies that support all the services needed to design, build and creatively produce a conference or event.”Vision arts Event deliver personal and unique experiences that are beyond expectation and create long term loyal relationships as a best event management company.

Headquarters B-238 Okhla Phase-1, New Delhi-110020

BranchesGurgaon- sec 14, Gurgaon, Haryana Noida- Surajpur road, sec-144, Noida , UP:201301

Contact - 9212624561, 011-40621212.

No. of Employees in our company170-200 employees work in our company.

8

Board of directors

Nivedita yadav Aakash Sarma Saurabh

Sr. HR Vice President CEO

INTRODUCTION

“VISION ARTS GENERATE Quality Business Leads

VISION ARTS ENHANCE Your Profile

VISION ARTS CREATE New Business Opportunities

Everyone Knows Us as EVENTS”

MEANING OF THE WORD ‘EVENT’

“The use of method involving people witnessing a happening within a capsule of time,

for the purpose of communication of a message”

An event is a live multimedia package carried out with some special concept, modified

to achieve the clients’ objectives.

Event in terms of social and Cultural life

In social and cultural life, an event refers to a social gathering or activity, such as:

A festival, for example a musical festival

A party, for example a birthday party

A ceremony, for example a marriage

9

Event in terms of science

In science, an event is something that takes place at a particular place and time.

Specifically, event may refer to:

Phenomenon, something observable at a given time

A point in space time, a concept of the theory of relativity

Extinction event, when a large number of biological species die out in a relatively

short period of time

Event (probability theory), a possible outcome of an experiment

Meaning of the Word ‘Management’

The term "management" characterizes the personnel leading and directing all or part of an

organization through the manipulation of resources and deployment (human, financial, material,

intellectual or intangible).

Management has to do with power by position, whereas leadership involves power by influence.

Functions of management

Management operates through various functions, often classified as planning, leading

controlling, organizing and staffing.

1. Planning : Deciding what has to happen in the future (today, next week, next

month, next year, over the next five years, etc.) and generating plans for

action.

2. Leading : Exhibiting skills in these areas for getting others to play an effective

part in achieving plans.

3. Controlling : Monitoring — checking progress against plans, which may need

modification based on feedback

4. Organizing : Making optimum use of the resources required to enable the

successful carrying out of plans.

5. Staffing : Appointing skill and unskilled workers, and efficient personnel.

10

EVENT MANAGEMENT

Event management is the application of management sciences to the creation and

development of events at domestic and international level such as festivals,

conferences, ceremonies, formal parties, concerts, or conventions. It involves study of

identifying the target audience, planning the logistics, devising the event concept,

coordinating the technical aspects before getting down to actually executing the

modalities of the event.

The recent growth of events as an industry around the world means that the management

can no longer be ad hoc.

The industry now includes events of all sizes as every industry, society charity, and group

will hold events of some type/size in order to market themselves raise money or

celebrate.

11

Event marketing is growing at a rate of three times that of traditional advertising.

Corporate sponsorships in India in 2001 were estimated at $3.9 billion-with 65% of this

total going to sports events and most of the remainder spent on festival and fairs or

sponsoring entertainment tours.

Thousands of companies invest in some form of event sponsorship. Event marketing is a

form of brand promotion that ties a brand to a meaningful entertainment, athletic, social,

cultural, or other type of public activity. Event marketing is distinct from point-of-

purchase merchandising, sales promotion, advertising, or public relations. Event

promotions have an opportunity to achieve success from other forms of marketing

communications. Events reach people when they are receptive to marketing messages and

focused on people who live in relaxed atmosphere.

Event marketing is growing rapidly as it provides companies alternatives to the cluttered

mass media. It is ability to segment on a local or regional basis. It is also an opportunity

for reaching narrow lifestyle groups whose consumption behavior can be linked with the

event.

Event marketing integrates the corporate sponsorship of an event with a whole range of

marketing elements such as sales promotion advertising and public relations.

Corporations both large and small have grown this industry at a rate of 17 percent per

year, and yet they have achieved a high level of success.

1.1 CONCEPTUAL FRAMEWORK

What is marketing?

Marketing can be defined as a process by which individuals and groups obtain what they

want through creating, offering and exchanging products of value with others.

Marketing Tools

The “marketing mix”, an organization can use can be classified into four categories:

Place

Product

Price

Promotion

12

Tools of Promotion

Advertising

Public Relations

Direct marketing etc.

Advertising

It is the method of communicating the message. The event manager can modify the

message. It includes the following:

Give-Away : Leaflets, Posters, Brochures

Radio : Commercial, Community, National

Internet : Web Sites, Radio

Television : Cable, Free To Air, Satellite

Press : Newspapers, Magazines

Non-Media Alternatives: Outdoor Advertising, Street Banners, Aerial,

Innovative

It can be done by the event manager or, if the event and promotional campaign is too big,

by an appointed advertising agency.

Public Relations

Often it is the part of the event manager's job to gain maximum publicity for the event.

PR is different from advertising. It communicates a more complex message than

advertising. It is free but the event manager looses control over the result.

It can be publicity can be positive or negative. To this end it is important that the event

manager maintains control over the public relations. Although PR is mostly proactive, it

is important for an event to have a reactive PR strategy as part of the event risk

management.

Who will make public statements to the press when there is an emergency? The PR

campaign is a plan to gain maximum positive publicity for the event. For an event it

would include:

13

Data collection:

1. Preparing a media list of suitable targeted media.

2. Preparing a contact list and club list, interested people and opinion leaders -

often called media talent - who can be called on to make suitable comments or

actions which promote the event.

List ideas for continuous exposure such as interesting media ready stories,

competitions, public appearances, stunts, speeches, feeding the chooks.

When these lists are prepared, the ideas prioritized and the story angles determined, the

journalist, editor or producer is contacted to ascertain the exposure potential of the item.

These publicity items are then placed into an overall promotion schedule. The critical

path is ascertained to ensure growing interest in the event.

Although PR involves the event's relation to the public, it is the relations that the event

manager develops with the media that can create interest in the event. It implies

developing an image with the media - finding out what they want and how best to supply

it.

If the manager does not have time to do this then the event organization should consider

hiring a PR company.

Direct Marketing

This is delivering the promotional message directly to the interested individual. The basis

of direct marketing is the establishment of a strategy to best reach those individuals.

The mail out is the most common traditional method. The database can be created from

previous events through competitions, inquiries, guest books, and point of sale

information or just by asking the participants if they would like to receive information on

other similar events.

14

1.2 PROBLEMS ASSOCIATED WITH TRADITIONAL MEDIA

The problems associated with traditional media that has been used for satisfying

marketing needs discussed in the previous section are listed below:

1. Huge amount of advertisements have led to a cluttering on T.V, print and other

media. This has given rise to a need for avenues, which provide exclusivity to the

sponsor while not sacrificing the benefits of reach and impact.

2. Proliferation of low intensity television viewers who view a little of each channel

leads to the need for capturing the full attention of the target audience.

3. Media cost inflation – Due to rising inflation which has been eroding the

advertising budget, advertisers are demanding the beat return from every ad-rupee

spent. Media planning has become more complex and therefore the need for

increase the effectiveness in terms of tangible impact which can be instantly

evaluated has risen.

4. Proliferation of various media channels, therefore the requirement for intelligent

media buying.

1.3 RELATION BETWEEN EVENT MARKETING AND THE 5PS

The five Ps of marketing: place, product, people, price and promotion play an essential

role in Event Marketing. To successfully use Event Marketing the marketer must

understand how Event Marketing fits together with the other parts of the marketing

strategy.

Event Marketing fits under promotion in the marketing mix. Other marketing tools that

goes under this section are advertising, sales promotion, personal sales, direct sales,

public relations, and sponsoring.

Event Marketing is not a substitute for any of the other components- it is a complement.

It takes an imaginative mix of all the communication tools available to extend the impact

of the event.

15

Marketing Mix vs. Event Marketing

If an organization uses Event Marketing, they still need to use the other parts of the

promotion mix before, during, and after the event.

An example of this could be how a car producer can have advertisements to inform about

a new car launch, and then use events to get people to test drive the new car, and then

follow up with direct marketing with a discount coupon.

One of the main advantages with Event Marketing compared to the other channels is that

the objective can both be direct sales, and image building, depending on how it is used.

1.4 EVOLUTION OF EVENT MARKETING

From its origins in event planning, the event marketing industry has seen great growth in

the last five years and has consistently been one of the most effective tools that marketing

professionals have at their disposal in terms of making a tangible connection to current

and potential customers.

The increasing competitive pressures brought on by globalization are forcing business

professionals to find new ways to engage customers. While it is important to garner leads,

marketing and specifically event marketing professionals cannot lose sight of the fact that

the sales cycle only begins at lead generation and that current and prospective customers

16

must also be nurtured even beyond purchase. Companies can benefited from the deeper

event marketing touch points that promote nurturing such as proprietary conferences that

provide a controlled environment for delivering messages and closing business.

EVENT MARKETING

An event is a live multimedia package with a preconceived concept, modified or

customized to achieve the client’s objective.

Events Definition In-Short

This is a diagrammatic representation of the above definition. The model implies that an

event is a package which interacts between the target audience and the client to achieve

the desired impact.

Event marketing involves arranging feedback for the creative concepts during and after

the concept initiation so as to arrive at a customized package for the client, keeping the

brand values and target audience in mind.

Marketing plays an important role in pricing as well as identifying opportunities to define

and retain event properties by gathering marketing intelligence with regard to pricing,

timing etc.

EVENTS

17

REACH LIVE INTERACTION

Right Communication

From the client

WITH Live Audienc

e

CREATESDesiredImpact

In fact, ideally event marketing involves studying the brand prints; understanding what

the brand stands for, identifying the target audience, it’s positioning and values, and

liaison with the creative conceptualizes to create an event for a prefect mesh with the

brand’s personality.

PUBLICITY AND PROMOTION

If one knows how to organize an event he should also know how to market it.

If there is something very peculiar or special about the event then that main point

has to be highlighted.

A product launch for example requires a sales promotion campaign either before

or after the launch. In that case the product is advertised through banners and

media and even door to door services.

Effort is taken to ensure that people sit up and take notice of the event. Sometimes

it could be an event like an award ceremony, which is to be shown on television

and different companies make a beeline for sponsoring their respective products

in the due course of the program. This is the way publicity and promotions work.

1.5 KEY ISSUE FOR EVENT MARKETING

The Human Dimension

A key issue for Event Marketing is having the right human resources

communicating the brand values. The importance of having the right people

working that truly understand the brand was emphasized by almost all the

interviewees.

The human dimension of Event Marketing is what creates the uniqueness to the

brand in an event, especially for high-involvement purchases.

In the capital goods industry, where high involvement decisions are taken and

more reliable information is needed, interaction serves as a great function. When

buying a car, the consumer is making one of his/her biggest investments, the

consumer is more sensitive and might require more than one-way communication

to convert to another brand.

18

What makes the 3D advertisement more unique is adding a human dimension, by

placing someone who is familiar with and can communicate the company brand and

product.

The Human Context

To add a human dimension might sound an easy solution in order to communicate the

brand identity. However, the human being is rather complex in her way of learning,

interpreting and understanding, since the person is characterized by her context.

Everything the human being experiences will affect the way the person interprets

situations. Unless she experiences a situation, which requires new behavior and this

behavior is positive, person will not change her way of acting. However, if person is put

in a situation in which person has to experience a new way of acting and if the experience

is interpreted as positive, it is most likely that person will repeat the behavior in a similar

situation.

Mental Models are deeply ingrained assumptions and generalizations that influence how

we understand the world and how we take action. The models keep us in the same pattern

of both thinking and acting.

By questioning the Mental Models people see matters from a different perspective and

openness. But in order to be able to question the Mental Models we first must realize that

there has to be something to gain by questioning them.

Most managers today only see the brand as the company’s logo and corporate identity

program, but in the future the company “brand” will have to communicate what an

organization is and what it stands for. Therefore the manager must change the

interpretation of the brand.

It is as important to win a distinctive place in the perception of a company’s actual and

perspective customers, as it is the same with the employees.

Since it is the human dimension that adds the value to a customer in an event, all

members and functions in the organization must not only be market orientated in general

but also market orientated in combination with the brand values? It is a common fact that

people are different and cannot adjust to all situations.

19

Several interviewees supported this when mentioning that there has to be a match

between the individual values and the company values.

One crucial factor might be the individual’s ability to learn, since the individual must not

only understand the added values in the brand identity but also learn to interpret the

different situations that might occur during an event, and combine the behavior to the

specific situation.

It is the individual’s perception of the current situation together with how he/she

translates the added values to fit to that specific situation that will help or not help the

company.

Integrated Organization

When working with Event Marketing it is important to have a well-integrated

organization, therefore we agree, “That internal marketing builds service quality”.

By learning how different components in a system interact will increase the

understanding of how the entire system works. Understanding just one component by

itself that is isolated from the others will not be enough.

A company itself is a complex system that is connected by a series of contacts and the

components in this system are highly integrated.

Since we are a part of this network, we most often only see specific components and are

puzzled by that we cannot find good solutions to our greatest problems. System thinking

is a term that contains knowledge and different tools, which can help us, understand and

influence the entire patterns in an organization.

1.6 WHY EVENTS

1. Brand Building

Creating awareness about the launch of new products/brand

Enormous nos. of brand/product is launched every month. Similarly innumerable

new music albums, films, etc get released periodically. This tends to create clutter

of product launches.

The large no. of launches also leads to need to overcome the another-product.

20

The need to therefore catch the attention of the target audience at the time of

launch becomes very important.

Presentation of brand description to highlight the added features of

product/services

Sometimes technological changes pave the way for manufactures or service

providers to augment their products. To convey this via traditional modes of

communication to the existing and potential customer base may sometimes be

futile.

Special service camps of exhibitions are the perfect events that provide the

opportunity for a two way interaction and error free communication.

For Example, IMTEX, the Industrial Machine Tools Exhibition, is an event used

by most machine tool manufactures to explain and highlight the new and

improved features of their product.

Helping in communicating the repositioning of brands/products

Events can be designed to assist in changing beliefs about firms/products/services.

Associating the brand personality of clients with the personality of target market

Citibank is an elite bank where people do banking with pride. Hence, other premium

brands would like to associate themselves with the same audience so as to benefit from

the rub-off effect.

An exhibition-cum-sale event organized exclusively for Citibank credit card holders,

small merchandisers get to do business with the Citibank customers, as well as build and

maintain a premium image for them. Here Citibank acts as the event organizer and small

merchandiser’s acts as participants so that they can associate the personality of their

products with the personality of Citibank customers.

Creating and maintaining brand identity

By satisfying individuals need.

By fulfilling client’s objective.

By providing quality in their work

By working effectively and efficiently.

21

2. Image Building

By building trust.

By providing quality at reasonable prices

Not doing cheats with the customers

By dealing at a regular basis

Constructing the Brand Value Chain

3. Focusing the Target Market

Helping in avoidance of clutter

Even though some events do get congested with too many advertisements, events still

provide and effective means of being spotted.

For example, Title sponsorship of a major event provides the sponsor immense benefit

since the sponsors name is mentioned along with the event like Hero Cup, Femina Miss

India, Lux Zee Cine Awards.

22

Enabling interactive mode of communication

Events generally provide an opportunity for buyers and sellers to interact. They also

provide a foundation for exchange and sharing of knowledge between professionals.

Example: Bang! Linux2000, Auto Expo.

4. Implementation of Marketing Plan

Enabling authentic test marketing

Events bring the target audience together, thereby creating opportunity for test marketing

of products for authentic feedback.

The seller can identify exactly the traits and other characteristics that are desired. For

example, marketing events that the Frito-Lay Company used before it launched its

WOW! Brand of potato chips.

Increasing customer traffic in stores

Events can be conceptualized to increase customer traffic. They can be modified to make

available, concepts ranging from retail store specific events to mega events like one day

international cricket tournament. For example, Nescafe 3-in-1 treasure hunt, co-

sponsored by McDonald’s is a combined effect in increasing the customer traffic as well

as increasing the awareness among the upper class of the existence of new McD’s outlets.

Enabling sales promotion

Weekly events conducted by Crossword Bookstore helps in generating more revenue

during the weekends.

Motivating the sales team

The need for interaction is not restricted to external customers only. End consumers are

not always the focus of live media exercises. This is especially popular amongst FMCG

companies.

For Example, during the cricket world cup held in England HSBC introduced a unique

pattern of motivating the sales force by awarding them runs instead of the traditional

points system. This resulted in conversion of almost all of its employees into sales

person.

23

Enabling market database assimilation, maintenance and updating

By keeping track of the reach and its effectiveness and interacting with the audience that

actually turns up for the event, event sponsors can assimilate and authentic database. The

database can be used to track various marketing trends. Events can then help in

maintaining and updating the database.

1.7 SPONSORSHIP vs. EVENT MARKETING

There are many other marketing tools that can build brand-awareness and create

image. Authors seem to mix up the concept of sponsorship and Event Marketing,

although there

is a difference between the two.

When using Event Marketing, the organization works with the event as part of the

marketing strategy. When sponsoring an event, the organization buys exposure

during the event at different levels of the event itself.

International Events Group (IEG) defines sponsorship this way: “The relationship

between a sponsor and a property in which the sponsor pays a cash or in-kind fee

in return for access to the commercial potential associated with the property.”

By using the commercial right, the sponsor could associate the brand and have an

effective selection of the target group to market themselves to.

The association makes the brand synonymous with the sponsored happening, and

thereby the sponsoring has been called association by event.

Today sponsorship is one of the world’s fastest growing forms of marketing and

together with Event Marketing they begin to play a more dominant role in many

companies´ marketing budgets.

Given below, model shows one way to look at where traditional sponsoring fits in

compared to Event Marketing.

24

Traditional Marketing vs. Event Marketing

When the organization is sponsoring an event, (upper left corner) there is always a

business agreement between at least two parties, which Event Marketing does not

necessarily have. Usually this is the case when there is a sport competition such as the

Olympics or a World Championship. This kind of sponsoring limits the possibilities for

the organization to market their products since they have no control over the happenings

at the event, etc.

There is a concept called the double lever effect, which explains the relationship between

different events. When organizations move to EM (1), EM (2) and EM (3) the

organizations increase their control and also the risk is increased. When the control is

increased, there is also a larger possibility for organizations to use the event integrated

with the other marketing strategies.

The given fig shows how it comes to be a double lever effect:

Control & risk depending on activity

25

As we can see, there is a risk in Event Marketing. There is no possibility to test the event

for the target group, and everything has to work during the event. The risk associated

with the event could be one of the reasons why some organizations choose to use pre-

existing events instead of own events. Preexisting events are events that are created by

someone else for another purpose.

1.8 SIZE OF EVENTS

In terms of size events may be categorized as follows:

1. Mega Events

The largest events are called mega events, which are generally targeted at international

markets..

Example: The Olympic Games, World Cup Soccer, Super Bowl, Maha Kumbh Mela.

2. Regional Events

Regional events are designed to increase the appeal of a specific tourism destination or

region.

Example: Delhi Half Marathon.

3. Major Events

These events attract significant local interest and large no. of participants as well as

generating significant tourism revenue.

Example: Chinese New Year Celebrations.

4. Minor Events

Most events fall into this category and it is here that most event managers gain their

experience. Annual events fall under this category.

In addition to annual events, there are many one time events including historical, dance

performances cultural, and musical. Business Meetings, parties, conventions,

celebrations, award ceremonies, exhibitions, sporting events and many other community

and social event fit into this category.

Example: Annual Trade Fair organized in Delhi, Chandipur Beach Festival

26

1.9 TYPES OF EVENTS

1. Sporting Events

Sporting events are held in all towns, cities, states and throughout the nation. They attract

international sports men & women at the highest levels.

2. Entertainment Arts and Culture

Entertainment events are well known for their ability to attract large audience. This

includes musical concerts, celebrity performances, movie releases etc.

3. Commercial Marketing and Promotional Event

Promotional events tend to have high budgets and high profiles. Most frequently they

include product launches, often for computer hardware and software, perfume, alcohol or

motor cars etc. The aim of promotional events is generally to differentiate the product

from its competitors and to ensure that it is memorable.

The audience for a promotional activity might be sales staff such as travel agents, who

would promote the tour of the clients or potential purchasers. The media is usually

invited to these events so that both the impact and the risk are high, Success is vital.

4. Meetings & Exhibitions

The meetings industry is highly competitive. Many conventions attract thousands of

people, whereas some meetings include only a handful of high profile participants.

5. Festivals

Various forms of festivals are increasingly popular providing a particular region the

opportunity to showcase its product. Wine and food festivals are the most common events

falling under this category. Religious festivals fall into this category as well.

6. Family

Weddings, anniversaries, divorces and funerals all provide opportunities for families

together. Funerals are increasingly are becoming big events with non traditional coffins,

27

speeches and even entertainment. It is important for the event manager to keep track of

these changing social trends.

7. Fund Raising

Fairs, which are common in most communities, are frequently run by enthusiastic local

committees. The effort in the organization required for these events are often

underestimated. As their general aim is raising funds, it is important that rides and other

such contracted activities contribute to, rather than reduce, revenue.

8. Miscellaneous

Some events defy categorization. Potatoes, walnuts, wild flowers, roses, dogs, horses,

teddy bears all provide the focus for an event organized in United States.

KEY ELEMENTS OF EVENTS

Key Elements of Event Marketing

Event Infrastructure

Core Concept: Search for new top class modeling talent through a contest and

pageant interspersed with entertainment.

Core People: Participants i.e., models taking part in the competition during

entertainment slots such as well known classical musicians, Pt. Shiv Kumar

EVENT

OrganizerEvent

Infrastructure

TargetAudience

Media

Venue

Client

28

Sharma accompanied by Ustad. Shafat Ali Khan and popular music by Sweta

Shetty and Stereo Nation.

Core Talent: Physical looks and proportions.

Core Structure: Annual event of beauty pageant.

Importance of Infrastructure

Indian business events, particularly large trade fairs, are underdeveloped as a result of

poor infrastructure outside Delhi. New exhibition and convention centers developed in

Chennai and Hyderabad will help spur the industry’s growth. If a new facility of

international standard can finally be built in Mumbai, this will generate a huge

opportunity for business media companies.

Smaller, traveling events, road shows which move around the country’s many secondary

markets will also be significant income generators for some business media firms.

Event Venue

The two types of venue are as follows:

In-house Venue:

1. Any event that is executed within the premises of the company or

institution or in the private homes or proprieties belonging to the client is

called an in-house venue.

2. The use of such venue is reserved for the employees of the company or the

residents of the campus.

3. Most in-house venues do not need to be paid or even if a payment is

involved, it may be open for favorable negotiation.

4. The main advantage of in-house venue is the huge saving in the costs

incurred in hiring the venue.

External Venue:

1. Any venue over which neither the client nor the professional organizer

have any ownership rights is called an external venue.

29

2. These are venues open for the general public. Example: Hotels, Stadium

etc, etc…

11.10 ENVIRONMENTAL SCANNING

Environmental scanning is one of the essential components of the global environmental analysis. 

Environmental monitoring, forecasting and environmental assessment complete the global environmental analysis. The global environment refers to the macro environment which comprises industries, companies, markets, clients and competitors.

Consequently, there exist corresponding analyses on the micro-level. Suppliers, customers and competitors representing the micro environment of a company are analyzed within the industry analysis.

Environmental scanning can be defined as ‘the study and interpretation of the PEST events. The factors which need to be considered for environmental scanning are events, trends, issues and expectations of the different interest groups. .

Macro environment

It includes PEST and it stands for political, economic, social and technological. Two more factors, the environmental and legal factor, are defined within the PESTEL analysis.

PESTEL analysis

Political factors

Taxation Policy Governmental stability Trade regulations Unemployment Policy, etc.

Economical factors

Interest rate Recession or Boom Customer liquidations Inflation rate Growth in spending power Rate of people in a pensionable age

30

Balances of Sharing

Socio-cultural

Values, beliefs Language time orientation lifestyle religion education literacy

Technological factors

Internet Electronic Media Research and Development E-commerce Social Media Rate of technological change

Environmental factors

Waste disposal Energy consumption Competitive advantage Pollution monitoring, etc.

Legal factors

Product safety Advertising regulations employment law Health and safety Product labeling Labor laws etc.

1.11 POTERS FIVE FORCES MODEL OF COMPETITORS

31

Porter's five forces analysis is a framework that attempts to analyze the level of competition within an industry. Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. A change in any of the forces normally require business unit to re-assess the marketplace given the overall change in industry information.

Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute products or services, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.

Porter developed his five forces analysis in reaction to the then-popular SWOT analysis, which he found unrigorous.

Here suppliers refer to the event manager or the person who is organizing the event.

Buyer refers to that person for whom the event is taking place or who is the organizer of the event.

Event manager needs to be updated at every point of time i.e. he should know which event company is entering in the market. What policies their competitors are using?

Event manager should have competitive advantage i.e. something more or special then his competitor.

FINANCIAL ANALYSIS

Below mentioned tax rate of 24 % which hits the occasion the hardest, which is nearly one quarter of the total sales. As occasions continue to grow, these numbers will become references rather than influences.

General assumptions

32

Profit and loss

In order to lead the industry in event planning it requires the use of the available resources at the low cost.

33

Projected cash flow

34

Projected balance sheet

According to the numbers we will be over $125,000with a profit margin of over 30%. We

are operating with little to zero debt, boosting the net worth even higher.

35

CHAPTER 2. RESEARCH METHODOLOGY

36

2.1 OBJECTIVE OF THE STUDY

To study Event marketing as a Generic Promotional Tool:

1. The objective of this study is to understand the following things:-

concept of event marketing

Its benefits and

Implementation process.

2. To evaluate the effectiveness of Event Marketing as a promotional tool.

3. To identify the problems associated with event marketing in the Indian scenario.

4. To offer suggestions for improvement to make it a more productive investment.

Also to study Event Management for organizing and managing the event in best

way:

1. The objective of this study is to understand the event management as a

communication tool.

2. Launching a product or a service.

3. Communicate to a particular target audience.

4. To make proper strategy , plan and execution of an event

2.2 NEED OF THE PROJECT

The need of the project is to study and analyze certain issues in event marketing and

management, and it need further attention and some suggestions which have been given

to make the Event Marketing and event management industry more effective in order to

utilize its full potential and serve the objective of an event and be mutually beneficial for

the Event agency, the Corporate and the customer.

2.3 SCOPE OF THE PROJECT

1. To understanding the short coming of event marketing and event management.

37

2. How these are done today?

3. Problems faced by Indian event agencies.

4. Understand and manage the event in the best and effective way.

The few reasons for choosing event marketing as a promotion tool are as follows:

1. To accelerate your product into new markets.

2. To judge your products against the competition.

3. To promote positive product trends.

4. To reposition your company in a market.

5. To select a new approach to marketing your product.

6. To launch new products/services.

7. To network with customers not normally called upon.

8. To present your products to buyers face-to-face.

9. To target markets by types of visitors.

10. To understand customer attitudes

11. To appeal to special customer interests.

12. To make more sales calls in a shorter time cycle.

13. To meet potential customers for new applications.

14. To change or improve the perception of your product.

15. To invite special customers to increase business

2.4 RESEARCH METHODOLOGYResearch is “ the manipulation of things, concepts of symbols for the purpose of

generalizing to extend, correct or verify knowledge, whether that knowledge aids in

construction of theory or in the practice of an art.”

Research Design

Descriptive research is used for this study. A survey was conducted through a

questionnaire by which an analysis was drawn.

38

The methodology followed for the research

Primary research detailed discussions with event management firms and the

corporate clients.

Subsequent additions were made to the interview schedule to suit the specific

events under study.

The secondary information was gathered from various marketing journals and

books on event marketing, sales promotions and publicity. Daily newspaper

reading in order to keep track of various kinds of events also proved helpful.

The information gathered was studied and analyzed.

It revels certain issues in event marketing which need further attention and some

suggestions have been given to make the Event Marketing industry more effective

in order to utilize its full potential and be mutually beneficial for the Event

Marketing agency, the Corporate and the customer.

CHAPTER 3. CONCEPTUAL DISCUSSION

CRITICAL REVIEW OF LITERATURE

EVENT MARKETING SURVEY 2006

39

Fifth Edition of Global Study Shows Steady March of Events Business at the Dawn

of a New Era

Five years of research has shown that events can play a strategic role in driving

business value within every organization.

Corporate executives, both in and out of the world of meetings and events, now

see the benefits that face-to-face interactions can provide to their bottom line.

Current customers and prospects can benefit from meetings and events as they

provide the greatest opportunity to learn about a company’s brand, value

proposition and (new) products/ services.

Companies can derive business value from events to strengthen product or brand

awareness; differentiate from the competition; educate or train employees and

ultimately increase sales.

Three key indicators in Chart 1 show, however, an interesting change from 2005:

1. The importance of event marketing has remained virtually constant from the prior year.

2. The proportion of the overall marketing budget dedicated to event marketing decreased

slightly from the prior year.

3. The perceived future importance of event marketing has declined less than 3% from

2005. While these results at first glance could be considered disappointing, none of these

indicators should be taken as a sign of a downward trend within the event marketing

industry.

40

In fact, these are clear signs of an industry that is stabilizing and showing signs of

maturation.

.

3.1 The Role of Event Marketing Remains Important In the Marketing Mix

As the world economy continues its 2006 recovery, companies face ever-

increasing financial pressures to generate additional revenues and improve profit

margins. Globalization has created a myriad of new opportunities for companies

but has simultaneously brought with it new challenges in terms of newfound

competitors vying for the same pool of clients and the inherent need to

communicate one cohesive message to the diversifying marketplace.

It is not surprising therefore to see that almost one third of the marketing professionals

surveyed this year stated that their top marketing concern currently is reaching new

customers. Building brand awareness was respondents’ second most frequent concern,

coming in at a distant 13%.

Due to the increased competitive pressures, companies large and small, local and global

must therefore constantly evaluate the mix of marketing tactics to ensure the best possible

approach at reaching both current and potential customers.

41

It is perhaps because of this need to freshen the marketing mix that we see survey

respondents’ state that event marketing was either a lead tactic or vital component of the

marketing plan slightly less than half the time (49%) — a slight decrease from last year

insofar as it was less of a vital component and taken more under consideration with other

mediums.

The current marketing mix shows in Chart 2 a slight decline as compared to last

year, almost 50% of respondents stated that the future importance of event

marketing was either increasing or increasing strongly. Furthermore, an additional

40% of respondents stated that the future importance would remain constant. This

stability in event marketing’s role is corroborated by the fact that event marketing

represents more than 25% of survey respondents’ overall marketing budget,

which is only slightly less than a one percent reduction from last year’s figure.

Another sign of the evolution of companies’ marketing mix appears in the budget

allocations for events. Much like in 2005, 59% of respondents stated that the majority of

their event marketing budget is currently allocated to trade shows while 35% are spent on

conferences. This latter figure shows a dramatic drop from the prior year’s figure of 47%

and further augments the current shift towards a focus on lead acquisition.

3.2 Event Marketing Continues to Deliver ROI

Although the results of this year’s survey suggest that the current role of event marketing

may have slipped slightly in companies’ marketing mix, the data also shows conflicting

information in so far as event marketing remains the marketing element that provides by

far the highest returns on investment.

42

Chart 3 shows that almost one in four respondents to the 2006 survey believes that

event marketing provides the greatest ROI in Marketing.

Although the figure is almost identical to last year’s estimate (and decreasing over time),

it is a statistical bragging right that event marketing has held for the last three straight

years, as well as four of the five years of this study (see Chart 4).

The most common reasons given for event marketing’s high returns on investment come

from the fact that it provides the greatest opportunity for direct, in-person, face-to-face

contact (58%).

It also provides the best opportunity to reach a targeted audience (45%). Survey

respondents also attribute event marketing’s high ROI to the fact that it provides one of

the only opportunities to reach a large and engaged audience in one venue (28%).

Turning to specific types of events, the survey results show that Trade shows (40%)

followed by conferences and seminars (21%) are the external events that are believed to

provide the greatest ROI due primarily to their ability to attract new customers.

When asked to look at their internal events, respondents cited education/training events

(41%) followed by sales or marketing meetings (28%) as the internal events those are

deemed to provide the greatest ROI.

3.3 Measurement Impacts Event Marketing Budgets

43

Seventy-one percent of respondents to this year’s survey (see Chart 5) cite that they do

engage in some post-event measurement activities. Not only is this a significant increase

from last year’s 60% mark, it is also the highest rate of measurement recorded in the

history of this study.

This is a clear sign that event marketing professionals and CMOs continue to need to

demonstrate the ROI that comes from producing successful events as greater financial

scrutiny comes from corporate finance departments.

The survey data shows that not only has the number of companies who measure increased

considerably from last year, but there has also been a slight increase in the marketing

budget allocated to measurement — up one tick from last year — to 12%.

When asked what key performance indicators (KPI) companies were measuring, over one

third of respondents (36%) cited number of qualified leads, with overall communication

effectiveness and sales increases each receiving 31% of the votes. The most common

tools used to calculate these KPI were sales reports (28%), onsite surveys (26%) and post

event surveys (24%).

Although measurement should not be considered a panacea for event marketing’s need to

demonstrate value, this year’s survey does show one striking benefit of measurement. As

can be seen in Chart 6, companies who do engage in some form of measurement are three

times more likely to see an increase in their budgets than those who do not engage in any

measurement. This data is further proof that tangibly demonstrating the value of an event

marketing program can significantly increase the chances of getting increased funding.

44

About This Study

Event View, the annual and first-of-its-kind event marketing trends study for senior

marketing executives, was originated in 2002 by The George P. Johnson Company. The

MPI Foundation has co-sponsored this important research since 2003. Now in its fifth

year, Event View is the number-one published event marketing trends report globally and

the longest-running study for the event marketing industry, providing the insight and

guidance corporations and event marketing professionals within this field need to develop

strategic marketing programs.

Between May and June 2006, almost 900 individuals in marketing management positions

from North America, Europe and Asia Pacific in industries including automotive, high

technology, healthcare, and financial were interviewed via telephone with hopes of

bringing clarity to the events component of the marketing mix as it compares to other

elements in a marketer’s arsenal. The results of the 2006 survey have a +/− 3% margin of

error.

EVENT MANAGEMENT AS A PROMOTIONAL TOOL

45

3.4 EVENT DESIGNING

1. Conceptualization of the creative idea/ambience

2. Costing involves calculation of the cost of production and safety margins

3. Canvassing for sponsors, customers and networking components

4. Customization of the event according to brand personality, budgets, etc

5. Carrying-out involves execution of the event according to the final concept

Event Designing Concept

Example:

Canvassing

InitialConcept

Costing

Customization

Conceptuali-zation

Final Concept

Carry-Out

EVENT

46

Event : Holi

Event Category : Fairs & Festivals

Event Organizers : A2Z Events

Core Concept of Holi

It is a celebration to mark the onset of spring and the harvest season. It’s a

symbolic gesture, celebrating good harvest and fertility.

It draws its origin from the Hindu Mythological event in which Prahalad emerges

unscathed from a fire arranged by his father King Hiranyakashyap and aunt Holika to kill

him.

Background

Title of the Event : RANG BARSE

Place : Mumbai

Venue : Parking lot of an amusement park

Year : 1997

Duration : 2 Days

Target Audience : City dwelling families

No. of Audience : 1500

Ambience : Rural Mela

Costing : Rs. 7 lakhs

Event Type : Partially sponsor and partially ticketed

Initial Concept For Holi 2000

A2Z wanted to repeat the previous year’s event ad verbatim

Costing

Costing for Holi 2000 worked out to Rs. 10lakhs

Canvassing

Many corporate were approached with the initial concept to sponsor the event. The leads

generated through canvassing for sponsors and negotiation with venue owners gave a

47

strong impetus and indication of success for a particular variation. A leading soft drinks

company could be persuaded to fully sponsor the event.

Customization

The target audience of the soft drink company was pre-dominantly was fun-seeking

youth. The initial concept needed to be changed from a family oriented event to a

youthful event. The budget was needed to be drastically reduced to Rs. 2lakhs per center

and the event was to be simultaneously conducted in 5 locations spread across the

country.

Final Concept and Carrying Out

Constraint of budget and specific requirement of the client changed the initial concept of

a two day program to a 3 hour forenoon program titled “HOLI GYRATIONS 2000”.

The program essentially revolved around a color rain dance and color blast for young

people with coverage on a popular youth oriented music channel on the television. It was

also decided to use the event coverage as software for future use by the channel. Now the

event was fully sponsored show for a single sponsor with invitations to a limited no. of

participants. The show was fully customized to give importance to the sponsors’ colors

viz. red and blue.

The carry out stage involved being exceptionally careful and prepared for eventualities

such as hazards of drunken misbehavior of the youth even though liquor was not allowed

inside the venue.

The interaction revolved around a popular VJ anchoring the show and except for dancing,

there would be hardly anything else actually happening. The carry out stage gets

completely taken over by the music channel.

3.5 COMMUNICATION EFFECTS OF EVENT MARKETING

Communication is the process of moving a message that includes different elements.

Those elements include source, message, channel, receiver and the process of encoding

and decoding.

48

.

. The direct communication with the customer is one of the main advantages with Event

Marketing compared to other marketing channels. In the definition of Event Marketing, it

is said that “an event is an activity that gathers the target group in time and room.” This

means that the event is eliminated from the noise.

Communication Process in Event Marketing

Event Marketing is marketing communication in four different dimensions.

The first one is the emotional communication method. The Event

Marketing is a form of “pull” marketing, where the organizations try to get

closer to the feelings and emotions of the customers. They do this not by

49

“pushing” their products at the customers, but by touching the customers’

emotional feelings.

The second dimension touches the customers by involving them in

activities. When the customer gets a feeling from a product, he/she is

informed of the value of the product. An example of this in the car

industry is the test-driving of new cars.

The third dimension is the intellectual dimension and it regards the

relevance of the event for the customers.

The fourth dimension is the spatial dimension, how to get the three prior

dimensions into action and to inform the customers through all marketing

channels. Some researchers say that in the future, customers will not buy

just the product, but the meaning, the event and the character, which in

turn give the customers the possibility to create their own value for the

product.

Relative Importance of Events as a Marketing Communication Tool

Dominant

Strong

Favorable

Tentative

Weak

Introduction Growth Maturity Decline

50

Relative Position

Life Cycle Stages

Position of Events and traditional modes of communication vis-à-vis the life cycle stage

With Regard to the competitive position of events as a medium and the life cycle stage it

is in vis-à-vis other marketing communication media, it is clear that:

Traditional ways of marketing communication in the Fig are moving from the growth

phase into the maturity stage. Their effectiveness is lost due to cut throat competition

which is leading to undesirable clutter in all kinds of media including internet.

An event as a medium is in a favorable position now and will continue to remain so in the

near future and tend towards becoming stronger. Event as a strategic marketing

communication tool would gain significant followers

3.6 EVALUATION OF EVENTS

1. Measuring Reach

Reach is of two types – external and actual.

Events require massive external publicity, press, radio, television and other media are

needed to ensure that the event is noticed and the benefit of reach is provided to the

client.

External reach can be measured by using the circulation figures of newspapers and

promotion on television and radio.

Measurement of external reach should be tempered with the timings of the

promotions as effectiveness of recall and action initiated among the target audience is

highly dependent on this important variable.

A ratio of the external reach to the actual event reach is a very tangible and useful

measurement criterion.

Events

Traditional Modes of Communication

51

Ideally,

The ideal situation in real life is very rare since the external reach gets drastically

reduced in terms of reaching out to the target audience and mostly impractical in most

cases.

This is because the target audience is derived from the target population which is

invariably very large. It is impractical to assume that all the constituents of the target

population can make it to the event. The above ratio is usually found to be greater

than 1 in practice.

2. Measuring Interaction

In most event categories, compared to reach, it is much harder to access the

interaction between the audience and the event and the benefit that accrues to the

client. A certain amount of quantifiable data can be of help in measuring interaction

for an event from the clients’ point of view.

These are as follows:

No. of interaction points

The no. of direct and indirect interaction points that have been planned and

arranged for an event provide the important measurement tool. The greater the

no. of interaction points the better for the client.

No. of interactions

The opportunity for interaction between the client and the audience before,

during and after the event is also a very tangible measurement criterion. The

greater the opportunity for increasing the no. of interaction, the better for the

client.

External Reach

Actual Reach= 1

External Reach

Actual Reach> 1

52

Quality of interactions

One-way or two-way communication during interaction has a profound

impact on the quality of interaction that takes place. The quality of interaction

is perceived as good when there is an avenue for two-way interaction

Time duration of interaction

Every event has a limited time period within which both benefits the other

issues such as controversies are effective. The amount of time that is available

for interaction is very important in that the greater the duration of the

interaction, more are the chances that there are some meaningful and decisive

interaction between the client and the audience.

Important Points to Consider When Evaluating Event Marketing

1. Quantified Objectives

The reason why some people think that it is not possible to evaluate events is that

they have used Event Marketing without a specific purpose or objective.

The one reason why Event Marketing is not measured also depends on the objectives,

but that they are short-time objectives. The cornerstone in the evaluation of events

lies in the objective of the event.

Event Marketing can have different objectives and it is usually not directly to increase

direct sales. Whatever the goal is, the easiest one to evaluate is the one that is expressed

and quantified.

The most common criteria for a goal to be valid is that it has a time limit, is challenging,

measurable, realistic, result oriented, clear and that it could be followed. If the goal is

challenging, it is more interesting to try to reach it. If it is too, simple it is not inspiring to

work for, but at the same time it has to be realistic. Time limit and measurable goals give

a possibility to do a qualitative study. It is important that they are clear so that everyone

understands them and that they can easily be followed by developing a strategy for how

to reach

53

2. Identity, Image, Positioning vs. Evaluation

Event Marketing is often used to create brand awareness, image and identity for the

products. This section shows that depending on the brand-awareness and how the

product is positioned, they can sell more products. Event Marketing can have both a

communicative as well as a teaching approach for the customer.

Identity

Identity is what the organization wants to stand for. The differences between identity

and image are that identity is as mentioned earlier what the franchiser intends to

represent, while the image is how the consumers experience the brand. The Image is

on the receiver’s side, while the identity is on the sender’s side.

Image focuses on how certain groups perceive a product or brand and refers to the

way these groups decode the signals transmitted by the product service and

communication of the brand. The purpose of identity, on the other hand, is to specify

the brand’s meaning, aim and self-image. In regards to Event Marketing it could be

said that the organization sends away an Identity at the event and the customers

receive it as an image of the product or organization.

Using Event Marketing can also differentiate the product for the customer by making

the value of the brand stronger for the customer’s identity. Identity comes from Latin

and means “same”.

The event in Event Marketing can be seen as a value community. In regards to Maslow’s

thoughts, humans have needs that need to be satisfied. The Value community creates

groups, where three concepts for group development need to be filled in order to create

group belonging. Event Marketing can offer the individual a short-track to belonging by

letting the individual attend an event. Through the event, the happening and the message

will give the individual a picture of him/herself, and a sense of belonging with other

individuals.

This shows that part of the brand advantages lies in the possibility to influence the

individual’s identity, and to make possible his/her relation to other individuals and in this

way strengthen their value community. By doing this, there is a possibility to differentiate

the brand from other brands. The brand is seen as an independent method of competition.

54

Image

Image is how the customer understands and looks upon the product, and a definition is

“how the consumers experience the brand.” An event can give the customer a clear

picture of the corporate identity that the company is striving for. Usually the image

consists of different key factors that the customer receives during different times and in

different places.

These key factors could be the communication that the organization has the physical

environment, products, service, ethics, social responsibility, engagement in social and

local happenings, and the behavior of representatives from the organization

Image Building

The experience at the event may of course result in direct sales, but normally they help to

build image and create positive associations around the brand that will lead to more sales

later on. Image can create lots of competitive advantages compared to other brands. This

is especially true when the differences between the brands are small. A positive image

can lead to not only increased sales, but it can also strengthen the relationships with all

interesting parties within and outside the organization, facilitate new employment,

increase the tolerance of customers, and facilitate crises. However, even though the main

objective with the event is not to change or build image, there is always a possibility for

the customer to change his/her opinion and image of the organization.

Positioning & Branding

55

When a company has decided to use Event Marketing they need to understand how Event

Marketing can change the perception of the product in the customers mind, and the

positioning of the product.

According to Kotler, it is extremely important to have a specific positioning in the

customer’s mind, due to the fact that if a similar product has the same positioning there is

no need for the customer to buy your product.

It is important to create an image and a correct positioning for customers that create

differentiation between products. The positioning distinguishes brands from each other

and creates a place on the market and in the consumer’s minds for a particular project.

The idea behind positioning is to create brand awareness, which ideally leads to long-

term brand loyalty. The positioning is a two-stage process, indicating which category the

brand should be placed in and the differences between the brands in this category.

Products are becoming more and more alike.

A company needs to change its product from competitors´ products. An organization has

three main perspectives for differentiation. They are: total perspective, more value for

money, produces trustworthy products at a reasonable price, product perspective, offer a

better product that is newer, faster, cheaper, with unique selling attributes, and customer

perspective, to know the customer better, and thereby reply to their needs faster.

The last perspective, the customer perspective, involves the relationship between the

customer and the organization. An event is the physical meeting between customer and

organization, and thereby Event Marketing can be used as a tool to build relationships

and create differentiation.

The idea behind positioning is to create brand awareness. Direct advantage of using

Event Marketing is that it creates high brand awareness around the product. The value of

the brand lies in the mind of the potential buyers, and not with the business itself.

Branding is part of the marketing strategy and product differentiation. The brand can

communicate more directly with the consumer than the product itself can; if the brand is

seen as having a personality and symbolizing certain values.

This is due to the fact that the brand has an emotional appeal to the consumers. A trend

within Event Marketing is to involve more cultural aspects at events.

56

The cultural aspects of events are not used extensively today. He further argues that

culture and brand strategy go hand in hand. Over time, a relationship between the

customer and the product can be developed into brand loyalty. This loyalty is

characterized by a positive attitude towards the brand, and over time continued purchase

of the same brand. A company seeks high brand loyalty because it creates stability and

provides an opportunity to gain high market share and profit. The development of brand

loyalty can be seen as a three-step model.

The first step is to create an interest for the product in the consumer. When time has past,

the consumers will simplify their buying detour through the product and the connection

between the brand and the target audience is strengthened. The third step is where brand

recognition is created, which is important for creating the long-term brand loyalty.

The Complexity of Evaluating Event Marketing

An event is concerned with a message, an interaction and integration. A message creates

something valuable for the customer, and gives the customer some kind of knowledge or

experience. The interaction between the organization and the customer will create a good

or better relationship. The integration part is concerned with how the Event Marketing is

part of the other marketing strategies.

Event Marketing are not being evaluated to full extent due to lack-of time, ignorance and

due to the fact that it is hard to evaluate it. Some of the interviewed persons agreed with

this theory, and believed that ignorance made evaluation complicated. Furthermore,

evaluations not conducted due to lack of time. The interviews also discussed that Event

Marketing is only one of the possible marketing channels that can be used when

marketing a product, and it is hard to evaluate it separately from the other marketing

tools. The more complex the marketing strategy, the harder it is to see what influenced

the customer to buy the product. Other reasons why it could be hard to evaluate the event

are because someone’s experience cannot be valued on a scale, and the interaction as a

relation is not measurable.

57

Furthermore, depending on all other marketing aspects it is hard to see why the customer

has a specific feeling for a product.

Kotler claims that the easiest marketing channel to evaluate is direct marketing. By using

direct marketing it is easy to follow up exactly where the customers have seen the

coupons, brochures etc. However, none of the interviewed persons mentioned that it

would be easier to evaluate direct marketing than Event Marketing.

It is as easy to argue against direct marketing as being the perfect measurable evaluation

technique as it is to argue that Event Marketing should be trickier to evaluate. This is due

to the fact that there is a possibility that the customers could be affected by other parts of

the marketing as they are when it looks like it is the direct marketing that has made them

buy a product. As long as more than one tool of the marketing mix is used and there is

always a possibility that the customers can be affected by them, and thereby there is no

100% accurate evaluation tool.

The reason why it might be considered hard to evaluate an event depends on the fact that

it is hard to evaluate the intangible aspects of the event. When asking the interviewed

people to elaborate on intangible factors, such as the weather affecting the event, most of

them were sure that just the weather was not of importance for the success of the event,

and therefore there was no need to try to evaluate it.

There are many factors that cannot be evaluated, and that instead the focus should be on

the factors that can be evaluated.

This could be interpreted in the following way: since there is no possibility to evaluate

the event comparing to the external social happenings, the only way to elaborate on the

example weather is to work with the weather and use it. If possible, the external factors

should be eliminated, but if that is not possible the event should try to use them and

thereby work for the event.

Example:

Event : Olympic Games 2000

Venue : Sydney, Australia

Category : Competitive – Sports

58

Event Organizer : IOC

Client : General Electric, NBC

Theme : Amateur sports competition to promote world peace.

Measurement Criteria: Reach increase for cable mediums MSNBC & CNBC, %

increase revenues for client.

Reach

External : Global (over 197 countries)

Actual : Prime time audience (approx. 18.25 million)

Event Evaluation

Advertisements sales increase from $ 680 million at the 1996 Atlanta Olympic Games to

$ 900 million for the Sydney Olympic Games 2000. MSNBC’s reach in terms of the

subscriber base expected to increase from 59 million to 70 million. CNBC’s reach in

terms of the subscriber base expected to increase from 74 million to 80 million.

3.8 REACH INTERACTION MATRIX

It summarizes the generic characteristics of each of the category to enable a bird’s eye

view on events. However, each category can be designed in such a way as to change the

degree of reach and interaction.

Exhibition

Special BusinessCultural

Competitive

ArtisticCharitable

High Low

Hig

hLo

w

REACH

INTE

RAC

TIO

N

Exhibition

Special BusinessCultural

Competitive

ArtisticCharitable

High Low

Hig

hLo

w

REACH

INTE

RAC

TIO

N

59

Reach Interaction Matrix

Amongst the various categories corporate interest have been concentrated on competitive

events, especially so on cricket. Such events have a broad based character and high media

coverage. This implies high reach and added excitement through live coverage on various

popular channels.

Post-event benefits trough highlights aid in the event recall over and above the normal

benefits that an event can offer. The fact that interaction is given short shrift is an

anomaly that needs to be corrected. Competitive events are closely followed by events for

artistic expression, then by exhibitions, special business events, cultural & charitable

events in that order for popularity with event-savvy sponsors.

3.9 RETURN ON INVESTMENT

Solely coming up with the sponsorship fee (cash expenditure paid out to be associated

with the event) for a specific event is not nearly enough of a guarantee for tangible

business results. The need to leverage the maximum benefits of the sponsorship is of the

highest priority. As a rule, this can be accomplished by spending at least two or three

rupees per rupee invested in the sponsorship.

In other words, the sponsorship fee is just a mere ante, and you must budget to properly

exploit the product that you have just purchased. Too many companies spend the big

bucks to get into the event marketing business and then never do anything with it.

Leveraging your sponsorship includes an integrated marketing program involving

product sampling, on-site signage, event logo usage, and myriad multilevel cross-

promotions.

ROI MEASUREMENT TOOLS:

1. Quantitative

In the world of trade shows and corporate events, surveys are a frequent choice for

evaluating results. Even if we use lead generation forecasts or gross margin from show

sales to measure ROI on an event, a survey can help you understand the reasons why the

business event performed the way it did.

60

Pre-Post Show Surveys

Often used to measure less tangible variables like brand awareness or perceived

competitive positioning, pre-post surveys sample a group of attendees on their

way into the exhibit hall at the beginning of the trade show, and then sample

another batch as they are leaving the exhibit hall toward the end of the event. Pre-

post surveys are effective in measuring changes in variables such as:

Brand awareness

Memorability or recall of key messages

Attitude or image change

Message impact

New product consideration

Audience profile

Booth Exit Interviews

To measure the immediate effectiveness of the booth and experience there, an exit

interview can be helpful, especially for exhibitors using a sizable booth footprint.

An interviewer intercepts visitors on their way out of the booth, and requests that

they answer some quick questions. Exit interviews can explore such areas as:

What prompted you to visit the booth?

Were you treated well by the staff?

Did someone approach you right away?

How useful was the product demo?

As a result of your visit to the booth, how likely are you to add the

company to your short list of considered vendors?

One of the big advantages of the exit interview, when done early in the business event, is

that it allows mid-course correction of any problems uncovered.

Post-Event Surveys

Contacting a sample of show attendees to ask questions about their experience is

another method of evaluating trade show and corporate event results. Depending

61

on your information needs, you may want to survey the entire attendee

population, the people who visited your booth, or the group that participated in a

certain activity at the business event. Surveys typically support the following

event objectives:

Perform detailed reporting and benchmarking of the attendee profile

Obtain feedback on your exhibit’s ability to attract and communicate with

high-potential prospects

Benchmark your performance against the competition

Provide clues as to the value of your investment in events compared to

other elements in the marketing mix

Post-show surveys can be used to explore such issues as:

Competitive comparisons

Which products are most effective to exhibit or demonstrate

Effectiveness of promotions and premiums

Audience attendance/experience at other trade shows

Audience quality

Audience motivation for attending the trade show

Attendee activity at the trade show

Strengths and weaknesses of your exhibit, staff, design, signage

2. Qualitative Tools:

Qualitative metrics, while not projectable to the entire population, can be helpful in

assessing your performance. Following are a few of the more beneficial qualitative

approaches.

Mystery Shopping

If you’re looking for an objective means of analyzing your booth’s effectiveness,

consider hiring a professional evaluator to “mystery shop” your booth and assess

62

the experience from the point of view of a customer or prospect. Many trade show

consultants offer this service.

Staff Feedback

The booth staff is your first line of customer contact, and a rich source of data on

most elements of interest. Staff feedback forms can be used for continuous

improvement in training, exhibit effectiveness, placement, and other marketing

tactics during the trade show.

One Word of Caution

Don’t rely too heavily on informal feedback from booth senior and staff

management when assessing the value of the trade show.

Such comments as “Booth was crowded,” “Mostly junior people,” and “Felt light

to me” can do more harm than good.

3.10 KEY ACCOUNT OR KEY PROSPECT ANALYSIS

Keeping track of key account attendance can be an important success metric, especially at

trade shows where we expect a relatively high level of current customer attendance.

Make a list of key accounts, noting which were invited in advance by the sales team to

visit the booth or attend a business event.

Distribute the list to booth staff and other company representatives at the trade show.

Ask them to check off any who were engaged in conversation, and make other comments.

Subsequent analysis of customer spending correlated to contact points can often then help

identify the relative importance of the trade show visit in helping to secure orders from

specific customers.

Competitive Analysis

63

Assessing the presence of the competition is best approached qualitatively. Check the

trade show guide to see who among your competitors is exhibiting, speaking, or

sponsoring events.

Assign competitive sleuthing duty to several of your booth staff and other company

attendees, if possible. Provide them with a form to fill out that covers such items as booth

size and location, products featured, staff size, visitor experience, etc.

Business Event Objectives and Associated Metrics

3.11 HOW BUILD A SUCCESSFUL BUSINESS PROMOTION AND

MARKETING PLAN 

A good marketing plan summarizes of ‘w’ family i.e. who, what, where, when, and how

much questions of the company: 

Who are the target buyers? 

64

What sources of uniqueness or positioning in the market does your product have? 

Where will you implement your marketing spending plans? 

When will marketing spending plans occur? 

How much sales, spending, and profits will you achieve? 

The financial projections contained in our business plan are based on the assumptions

contained in our marketing plan. It is the marketing plan that details when expenditures

will be made, what level of sales will be achieved, and how and when advertising and

promotional expenditures will be made. 

The major elements of a marketing plan: 

The situation analysis describes the total marketing environment in which the

company competes and the status of company products and distribution

channels.  

The opportunity and issue analysis the major external opportunities and threats to

the company and the internal strengths and weaknesses of the company, along

with a discussion of key issues facing the company.  

The goals and objectives section outlines major company goals and the marketing

and financial objectives.  

The marketing strategy section provides the company's marketing strategy

statement, summarizing the key target buyer description, competitive market

segments the company will compete in, the unique positioning of the company

and its products compared to the competition, the reasons why it is unique or

compelling to buyers, price strategy versus the competition, marketing spending

strategy with advertising and promotion, and possible R&D and market research

expenditure strategies.  

The sales and marketing plan outlines each specific marketing event or action plan to

increase sales. For example, it may contain a summary of quarterly promotion and

advertising plans, with spending, timing, and share or shipment goals for each program.

65

The sales and marketing plan outlines each specific marketing event or action plan to

increase sales. For example, it may contain a summary of quarterly promotion and

advertising plans, with spending, timing, and share or shipment goals for each program.

Some of the ways to market your product or service are 

Write letters (on issues and news items that have SOME relation to your business)

to the editors of local papers. 

Have give-away (e.g. bookmarks or pens) that are useful and give details of your

business. 

Send news releases about your products and your business to local papers, radio

and TV shows. 

Take out an ad in a publication of a local group.

Offer to make presentations, on a topic related to your product or service at

appropriate fora.

Keep your eyes open for "specialized" newsletters, newspapers, or other

publications which might welcome an article written by you. 

Get on the Internet and connect to the world with your own home page. 

Remember marketing is the face you show to public, highlighting uniqueness and quality

of the product. Check the content and layout before releasing an advertisement or

distributing pamphlet. Marketing is becoming an ever important tool in the present

competitive scenario, tell what your product or services can do, but don't promise what

you cannot deliver.

3.12 SWOT ANALYSIS

STRAGEGIC ALTERNATIVES ARISING FROM ENVIRONMENTAL

ANALYSES

66

Developmental Strategy

Maximize Opportunities by minimizing weaknesses

Maintenance Strategy

Utilizing company’s strengths to take maximum advantage of opportunity

Survival StrategyMinimizing both weaknesses andthreats by considering optionssuch as:Joint Ventures, Retrenchment,Liquidation, etc

Pre-Emptive Strategy

Maximizing strengths and their usage to overcome threats

STRENGTHS WEAKNESSES

OPP

OR

TUNI

TIES

THRE

ATS

INTERNALEX

TERN

AL

Developmental Strategy

Maximize Opportunities by minimizing weaknesses

Maintenance Strategy

Utilizing company’s strengths to take maximum advantage of opportunity

Survival StrategyMinimizing both weaknesses andthreats by considering optionssuch as:Joint Ventures, Retrenchment,Liquidation, etc

Pre-Emptive Strategy

Maximizing strengths and their usage to overcome threats

STRENGTHS WEAKNESSES

OPP

OR

TUNI

TIES

THRE

ATS

INTERNALEX

TERN

AL

SWOT Based Strategy Matrix

The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Corporate Retreat Professionals.

Strengths Superior, specialized service offerings.

Well-trained, enthusiastic employees.

Strong relationships with complementary service providers.

Weaknesses The concentration of a small niche of the market that will limit the potential size

of the market.

The difficulty of generating awareness and visibility of the company in its first

few years of operation.

The inability to rapidly scale to meet large, unexpected increases in demand.

67

Opportunities A growing market of companies that are outsourcing event planning activities.

Being one of the first service providers concentrating on this specific niche.

Relatively low overhead.

Threats A slump in the economy that could have a ripple effect on service providers.

Future competition from existing service providers competing in different but

complimentary market spaces.

The inability to find qualified, high quality employees.

CompetitionCurrently there are three other companies that offer event planning specifically to corporations. They, however, tend do events that are more general in scope such as parties to reward customers or employees, or events to change the company's image. There is no company that specializes in event planning of corporate training and product release events. There are companies that offer corporate training, but these companies provide the actual training and do not do any of the actual event planning/ logistics of the entire event.

There is also no company that specializes in product release events. There are companies that do provide this service, but they do not specialize in it. Because event planning is a tight market, CRP will benefit from specialization.

The buying pattern for the larger corporations was, in the past, to have an in-house solution. This pattern is disappearing in favor of outsourcing as there is the constant drive for gains in efficiency, something outsourcing can offer.

Maintenance Strategy

Arising from a situation of strength and favorable opportunities, the maintenance strategy

provides reasons to carry out activities that maximize available advantages. This is the

perfect position to be in. Beyond this, every activity gets focused on maintaining the

winning edge and the lead over competitors. The event company here can well afford to

68

be aggressive knowing very well that it has the relevant strengths to back its claim on the

opportunity.

Developmental Strategy

To gain advantage of potential opportunities while not having sufficient strengths calls

for gaining a winning edge by using tactical retreats where irrelevant yet not giving up.

It requires passive and defensive strategy, which attacks relevant opportunities in such a

way as to cover up on weakness.

Pre-emptive Strategy

This strategy is usually used by entrenched market leaders on new entrants. Potential

threats are nipped in the bird by exercising the full power of the company’s strength.

This is a very powerful and aggressive strategy as it requires foresight to fully understand

the threats looming on the horizon. Selecting which one to tackle requires careful study

since some points of strength could get eroded if used unnecessarily.

Survival Strategy

This strategy is used to ensure that the company is alive for a battle on another day when

it will have the requisite strengths to grab its share of opportunities in the market. It

allows one to make drastic decisions in the face of harsh environment.

STRATEGIC ALTERNATIVES ARISING FROM COMPETITIVE ALANYSIS

Further to the strategy from the environmental analysis a mapping of event concepts can

be used as a variable component along with decisions on facing competition, which can

lead to more detailed and in-depth strategic alternatives.

69

Rebuttal Strategy

Respond to new initiatives bycompetition with a similar move

Sustenance Strategy

Manage critical success factorsmore effectively

Venture Strategy

Maximize user benefits by usingpath breaking, trend settinginitiatives to take a lead vis-à-viscompetition by being first in themarket.

Accomplishment Strategy

Relative superiorityExploit competitor’s weakness

USE EXISTING CREATE NEWCO

MPE

TEAV

OID

HEA

D-O

N CO

NFL

ICT

EVENT CONCEPTSCO

MPE

TITI

ON

Rebuttal Strategy

Respond to new initiatives bycompetition with a similar move

Sustenance Strategy

Manage critical success factorsmore effectively

Venture Strategy

Maximize user benefits by usingpath breaking, trend settinginitiatives to take a lead vis-à-viscompetition by being first in themarket.

Accomplishment Strategy

Relative superiorityExploit competitor’s weakness

USE EXISTING CREATE NEWCO

MPE

TEAV

OID

HEA

D-O

N CO

NFL

ICT

EVENT CONCEPTSCO

MPE

TITI

ON

Concept vs. Competition Matrix

Sustenance Strategy

This is a strategy to be used when faced with no options but to take on the adversary with

the existing arsenal of event concepts that may be out dated or still current but nearing the

end of its life cycle.

It becomes essential that the event company manage its resources and advantages in

terms of CSFs that have been identified with greater efficacy. Successful concepts need

to be brushed up and revamped to meet customer expectations in the face of competitive

offerings.

Accomplishment Strategy

This strategy is viable when an existing concept is doing better than any of the

competitors’ equivalent offering. This strategy, therefore, essentially says that sticks to

the winning concepts and exploits the fact that competition cannot offer a similar quality

concept and thereby wants to avoid a head-on conflict by itself. The danger here is that

competition may use any of the other strategic alternatives available to a challenger to

combat the situation.

70

Venture Strategy

This strategy envisages making use of the first mover advantage by creating new

concepts of competition by creating niche markets. This may even involve a re-definition

of market segmentation.

By maximizing user benefits and creating path breaking trend setting concepts the event

company positions itself to take a lead vis-à-vis competition by being first in the market.

This is a double-edge strategy in that failure is as devastating as the benefits of a

successful launch.

STRATEGIC ALTERNATIVES ARISING FROM DEFINED OBJECTIVES

INCREASE PRODUCTIVITYOF CLIENTSRETAIN CLIENTS

MARKET DEVELOPMENTINCREASE PRODUCTIVITYOF CONCEPTS

EXISTING NEW

EXIS

TIN

GNE

W

EVENT CONCEPTS

CLIE

NTS

INCREASE PRODUCTIVITYOF CLIENTSRETAIN CLIENTS

MARKET DEVELOPMENTINCREASE PRODUCTIVITYOF CONCEPTS

EXISTING NEW

EXIS

TIN

GNE

W

EVENT CONCEPTS

CLIE

NTS

Client/Concept Fit Matrix

The above matrix provides options that event organizers have an offer in terms of

concepts and their market.

The basic strategic alternatives here revolve around whether the objective is to retain

customers or market development. These objectives further lead to the strategic options

of achieving them either to customization or new concept development.

By offering new concepts to a existing customers, a strategy of increasing business from

increasing clients can be discerned. Similarly by offering an existing event to a new

client, a strategy of increasing productivity of the event concept can be followed.

71

PREP MODEL

This framework has its roots, in the fact that, events as a business proposition for

corporatization is relatively nascent in nature. Therefore, the concept of strategic

perspective to growth through and along with clients is a major decision to be taken by an

event agency having major growth plans. This model deals with the strategic options

available by playing off objectives relating to market development against growth in

competition.

Predatorial StrategyEnrichment Strategy

Proactive StrategyRetaliatory Strategy

EXISTING NEW

EXIS

TIN

GNE

W

CLIENTS

COM

PETI

TIO

N

Predatorial StrategyEnrichment Strategy

Proactive StrategyRetaliatory Strategy

EXISTING NEW

EXIS

TIN

GNE

W

CLIENTS

COM

PETI

TIO

N

PREP Matrix

The above matrix provides the choices before the event company when it comes to a

trade off between clients and competition in terms of assigning priorities in decision

making.

Predatorial Market Development Strategy

If the development of new clients from existing competitors is the need of the situation

then the event company will adopt this strategy. This is essentially an offensive through

focused strategy wherein clients of other event companies are targeted.

72

Enrichment Strategy

In a market situation where the event company is forced to compete fiercely for retaining

its market, this strategy is followed. It is used where the need to maintain and improve the

quality of service becomes predominant.

Retaliatory Strategy

This is basically a defense mechanism wherein the event company tries to defend it self

from preditorial strategies of essentially new entrants. This strategy involves taking

action aimed at retaining its existing clientele and potential client base.

Pro-active Strategy

The event company here can explore new client bases and stretch the limit of its concepts

across untried event categories. Every event category has its own special environmental

and competitive structures.

3.13 RISKS VERSUS RETURN MATRIX

Zero RiskAssured Returns

Low RiskAssured Returns(can charge extrasince chances of failure are high)

Medium RiskAssured Returnsto cover costs +chances of loss

are low

High RiskAssured Returnsto cover costs butlower chances of

profit

High RiskChances of highprofits with equalchances of losses

Very High RiskVery less time to

ensure reachChances of failure

& loss are high

Pre-Planned Ad-hoe

Time

Fully

Sp

onso

red

Part

ially

Sp

onso

red

& T

icke

ted

Fully

Ti

cket

ed

Type

of F

inan

ce fo

r Fun

ds &

Rev

enue

Zero RiskAssured Returns

Low RiskAssured Returns(can charge extrasince chances of failure are high)

Medium RiskAssured Returnsto cover costs +chances of loss

are low

High RiskAssured Returnsto cover costs butlower chances of

profit

High RiskChances of highprofits with equalchances of losses

Very High RiskVery less time to

ensure reachChances of failure

& loss are high

Pre-Planned Ad-hoe

Time

Fully

Sp

onso

red

Part

ially

Sp

onso

red

& T

icke

ted

Fully

Ti

cket

ed

Type

of F

inan

ce fo

r Fun

ds &

Rev

enue

Risk vs. Return Matrix

73

The above matrix considers two of the most important risk factors as well as the degree to

which it can affect the events company – Type of Finance and Planning Lead Time

Events based on time can be divided into pre-planned i.e., events carried out after

thorough planning with enough time for taking decisions and ad-hoc events i.e., those

that are taken up on the spur of the moment. On the basis of finance, events can be fully

sponsored, fully ticketed or partially ticketed and sponsored. Each decision carries with it

an element of risk, the gradations of which can vary from zero risk to very high risk as

shown in fig.

3.14 APPLICABILITY

Differentiation and Focus in Event Marketing

Event Marketing has several advantages with multiple purposes, which normal marketing

media do not have. For example, when advertising in a magazine, a company needs to

decide which message they want to communicate as well as with whom they want to

communicate.

For companies using differentiation as a competitive advantage, spreading several

messages in many different magazines, the result might not cover investment. On the

other hand, for companies using focus as a basic strategy, the cost for gathering

information about the specific target group must match the possibility to actually reach

the right segment. Depending on how Event Marketing is used both differentiation and

focus can be achieved.

There are two major differences when using events. The events are pre-

communicated; the companies have a possibility to control, who will attend, or the event

just happens; whoever is there has an opportunity to be a part of the event. Of course,

depending on which place the company selects for the event, different types of consumers

will be reached. When using general events; meaning that no single target group is

invited, the company can still gain on the situation since they have a chance to adjust the

added value to specific customers during the event.

74

The employees working during the event “read” the situation and adjust his/her behavior.

Further the event itself might also communicate an added value to other people, although

they might not be interested in the specific event.

On the other hand mean that Event Marketing can also be used when focusing on specific

target groups.

3.15 ADVANTAGES OFFERED BY EVENTS

As it is clear from the preceding section, use of events as a marketing communication

tool not only take care of the problems associated with traditional media but also offer

certain advantages because of which events are gaining importance over them. Some of

the advantages are detailed below:

1. Events have the ability to bring together sharply defined participants since the

capacity for a particular event is usually limited. A specific no. of the target

audience could be invited of enticed to buy tickets for a show especially created

for a particular profile of the target audience.

2. Since the audience is actively targeted, the option of control reach can be

exercised and ideal audience for narrow-casting of information can be gathered.

This leads to lowering of the media networking budgets and focused

communication with the specially gathered audience. The audience that has been

specially invited invariably is an ideal audience.

3. An event carried out professionally and cleanly is a memorable experience. The

word-of-mouth publicity that this generates is an advantage that lingers on a long

time after the event is actually been carried out. This provides an advantage of

higher brand recall to the client.

4. The involvement of all the senses in experiencing the event is one of the greatest

advantages that events can offer. Events can be designed such that the audience is

actively involved in every part of the event and made to feel good. Thus, events as

a live media offer a certain amount of immediacy to the experience – of being

there while it‘s happening. For the audience, it is undoubtedly a thrilling situation.

75

5. Live media also enables interactive communication. Live media scores over

conventional advertising in terms of reach, impact and tangible immediacy of

measurement. Live media communication is a complete sensual experience as

compared to a press advertisement or TV/Radio commercial. This is so because of

press ad is basically a flat piece of paper and a commercial is just an audiovisual

experience. The high recall value of live media communication is also a major

factor.

6. No other media can boast of the ability to provide such massive collection of feed

back instantly as events. Being a live media, it is possible to feel and deduce the

reactions of the audience to the aim or objective that the event was conceived for.

7. Easily customizable nature of events, mean that specific traits of the local

inhabitants can be incorporated in the big picture to ensure that the event is

socially and culturally in tune with the local culture. Thus, the localization of

events is very easy.

8. The advantage in terms of post-event publicity that events can offer over and

above the paid or bartered media is the benefit associated with reports of the event

in the newspaper and news on the electronic media. For such reports there is no

extra cost to be borne – neither by the sponsor nor by the event organizer. This is

a double edged sword because, in case the event is not up to the mark or is dogged

y controversies, then the same is also reported impartially.

9. The conversion of good events into television software for future use either by the

sponsors for their commercials or by media house for programming is also a

unique benefit that events offer. Such software become products by themselves

and can be used profitability in the future.

76

CHAPTER 4 :DATA ANALYSIS

DATA ANALYSIS ON THE BASIS OF ANNEXURE

1: Buying Behavior after a positive experience of an EVENT.

77

Where,

a = Product/service you have heard but not checked out yetb = Product/service you have never heard ofc = Product/service you already use

Interpretation

If people had a positive experience, about the event 88% are more likely to buy a product

just when they were aware of it. Surprisingly, 78% are more likely to enter into the

buying process even if it’s a new product.

2: Gender influence on purchase

78

Where,a = Product/service you already use b = Product/service you have heard but not checked out yetc = Product/service you have never heard of

Interpretation

After a positive experience of the events, women are more likely to purchase a product

they already use while men are a bit more adventures and may even be inclined to

purchase a product that they are not using or haven’t yet heard about that product.

3: Men are explorers whereas women love samples

79

Interpretation

The female folk are drawn towards the event because they love samples which was

confirmed when 68% out of the female respondents gave the same reply where as the

male counterpart are more interested in exploring the product inside out.

80

Graph 4: Create events for right ages

Interpretation

Fun and free best describes the motivation of younger event attendees while education

and interaction are what the older crowd is looking for.

81

5: Events spur immediate sales

Interpretation

26% of the attendees are ready to purchase a product immediately after the event, 25%

within a month and 15% wont purchase the product at all.

82

Graph 6: Reasons for participation in any event

Interpretation

Over all the age groups it was observed that if the product/service is of interest to the

attendees they are more likely to participate in an event. The next best reason for

participation across all age groups is the activity which the attendees enjoy.

Graph 7: People spend time at mobile events.

83

Interpretation

68% of the total respondents spend approximately 15 mins on a mobile event and every

less people spend over 30 mins.

8: Mobile events create better product understanding

84

Interpretation

Mobile events which demonstrate product features are more likely to generate better

understanding about a company or its product.

85

4.2 INTERVIEWS AND DETAILED DISCUSSIONS with various event managers

and corporate helped me identify the problems in the event marketing industry.

1. The event marketing industry in India is highly unorganized.

2. Corporate are not fully aware of the concept, implementation process and

effectiveness of event marketing.

3. No post-event analysis is carried out to evaluate the effectiveness of an event. As

a result of which a lot of money is wasted and nothing productive happens.

4. Lately, event marketing has become a fad and even small entrepreneurs are

blindly following the multinationals such as Coke and Pepsi that have presence all

over in the event marketing industry (cricket, music, movies & road shows)

5. Even when large sums of money are involved, sponsorships have too often been

handed out on nothing stronger than the managing director’s whim. In such

cases, virtually no thought is given to their likely benefit to the company, or even

how such a benefit could be measured.

In the late 1980s, the Hill & Knowlton sports marketing division conducted a

survey of Western Australian companies involved in sponsorship. Many were

giving more than $100,000 a year. Yet a staggering 68% of them had no

procedures in place to check the value of their sponsorships. How many of those

companies would spend $100,000 on advertising without monitoring every year

stage of the campaign? How many would pay an executive $100,000 a year

without demanding accountability for performance.

6. Sponsorship today should be made as accountable as any other part of the

marketing mix. Some forms of sponsorship have long-term networking goals that

don’t lend themselves to immediate measurement. But if sponsorship is linked

directly to a product, measurement should be possible through the only criteria

that ultimately matter, Sales.

7. T.V. and press coverage of the event cannot be equated with success-even if a

company’s logo appears often and prominently. Instead, we need to take a close

look at the sales results and see if they go up during the sponsorship period.

86

8. Not all sponsorships are readily measurable. There are many, especially in the

non-sporting field, where it’s almost impossible to establish a direct cause-and-

effect relationship between sponsorship and sales. Carefully planned

sponsorships can be a cost-efficient way to enhance corporate profile. They can

link a company and brand with their customers’ lifestyles and aspirations. They

can create a difference for the product, boost the effectiveness of the total

promotional program, and put one in touch with people who can do a great deal

for the business.

9. Sponsorship itself never is a major communications thrust. It is always and only a

complement to it. For every Rs. 100,000 you spend on sponsorship, you need to

spend at least another Rs. 100,000 on more conventional promotional activities.

And your sponsorship venture must not happen in isolation from them. It must be

an integral part of your total promotional program. It must tie in closely in theme

and message with everything else you are doing. Only then, will you get real

benefit from your sponsorship investment.

10. Commit large amounts of time and marketing expertise to it as well in order to

bring about a long-term product association with the event. It means monitoring

the event constantly, to ensure that your name, logo, product and so on are being

featured, exactly as agreed. It means developing reliable ways of measuring its

results, if that’s possible. It means thinking about extensions-spin-off consumer

and trade promotions, staff motivation programs, hospitality functions and so on.

11. It also means being willing to keep it going for several years at least. The longer

you stay with your sponsorship, the better the results you can expect-and the

better, for the event too. If its name chops and changes from one year to the next,

its image will become confused and tarnished. Then its value as a sponsorship

property will drop.

12. There is no consistency of operations and quality of events on the part of event

management firms. Event marketing firms in India are very unprofessional and

lack integrated marketing expertise.

87

13. Situation analysis and TOMA effect which are done by advertising agencies is not

done by event marketing agencies.

14. Event marketing firms do not have retained accounts as advertising agencies.

15. They also provide poor services as compared to advertising agencies. Hence

corporate prefer to give their accounts for event marketing also to their own

advertising agencies. These advertising agencies may further forward the contract

to the event management firms in case they do not have the infrastructure and

facilities for event management themselves. This results in lesser profits for the

event management firms as a cut off percentage of at least 13.5% is retained by

the advertising agency itself. Hence there is a need to build a more qualified and

professional image of the event-marketing firms to gain corporate trust, and

remove this intermediary to achieve higher profits.

88

CHAPTER 5. RESEARCH FINDINGS

&RECOMMENDATIONS

5.1RESARCH FINDINGS

The present study has been undertaken to get the first hand exposure on the

mindset of people towards Event Marketing concept & their involvement in

events as and when they come across, if any.

A questionnaire was designed keeping in mind the requirements for study &

analysis of my thesis for comparing the hypothesis with the outcome of this

survey.

A general survey conducted with a sample size of 50 respondents revealed the

following facts regarding the mindset of people towards the Event Marketing

concept.

This survey also gave scope to take necessary steps for organizing an event at

right place, right time and in front of the right target audience.

Event Marketing companies were also targeted and their response was also taken

which added value to my thesis.

Let’s have a look at what people feel about Event Marketing.

When people were asked what they feel about a particular company which promotes its

product/service through Event Marketing 82% of the respondents replied that it gives a

positive impression about the company and establishes the quality of their

product/service.

When people were asked about the reasons for which they have participated 53% replied

that the event appeared amusing which was followed by reasons like a powerful brand or

eye catching signs & banners.

RECOMMENDATIONS89

To improve the condition of the event marketing industry and make it more professional

and profitable, the following recommendations have been listed:

1. Understand the corporate objectives, target audience, brand image and positioning

clearly.

2. Do not go overboard with your concept or preference for a certain event.

3. Conduct a situational analysis for appropriate event selection which synergies

with the company objective and brand personality.

4. Create extensive databases of the target consumers in order to conduct pre- and

post-event analysis and evaluation to check the success of the event and consumer

perception, also to assess the top of mind awareness and brand recall.

5. Conduct extensive market research to establish which parts of the program are

working and which ones are not. Those in the first category should be maintained

and strengthened. Those in the second should be relinquished.

6. In all sponsorship activities, it is important to protect the integrity of the activity

being supported. If it is cheapened or its identity threatened, the sponsorship

could rebound on the sponsor’s head.

CHAPTER 6. CONCLUSION

90

Event marketing allows a company to break through the advertising clutter

and target an audience by enhancing or creating an image through an

association to a particular event.

Brand awareness reinforces the product or service, and drives sales.

Property or event, also profits, a financial partner, a supplemented

advertising budget, and added leverage.

Event marketing also offers companies the flexibility to reach specific

geographic and demographic audiences. It is a benefit that allows depth of

exposure, as opposed to the breadth of exposure.

As CMOs continue to face increasing financial pressures, they must

continuously provide higher levels of value, both in pure financial terms

and overall measurement of ROI.

When considering the entire sales cycle, marketing professionals must

think beyond traditional methods and bring transparency and measurement

to their activities in order to demonstrate the fundamental value of their

field. To answer this challenge, the event marketing industry must redefine

itself to recognize the power of the “brand” to forge deep connections, as

well as also adapt events to contribute to branding in more sophisticated

ways.

The perception of events as a form of media is quickly moving away from

standalone activities to integrated forms of communication. These forms

of communication synchronize with overall marketing goals through new

applications of techniques rooted in traditional event marketing that

project the brand more powerfully. Defining what an organization stands

for, mapping out a clear brand strategy, and then formulating event

activities that align with overall marketing goals is the next great step in

the evolution of the industry.

ANNEXUREQuestionnaire

91

Name :Age : Gender :Occupation :

1. What are your feelings about a company that creates or sponsors events?a) They are willing to let people try them outb) Support activities that I enjoyc) They understand my interests and needsd) They like to have fun with mee) They want to know more about me

2. Assuming you had a positive experience, would you be more or less inclined to purchase a product or service after having participated in an event?

a) Product/service you have heard but not checked out yeti. More likely

ii. Less likelyiii. Neither more nor less

b) Product/service you have never heard ofi. More likely

ii. Less likelyiii. Neither more nor less

c) Product/service you already usei. More likely

ii. Less likelyiii. Neither more nor less

3. What was it that got you to notice or participate in the event?a) It looked like funb) I recognize the company/brand running the eventc) Signs and Bannersd) Somebody invited me to participatee) The crowd that was already taking part in the eventf) Others

4. Which of the following is your favorite part of marketing events?a) I get to touch and feel a product/servicesb) I get to learn more about a product/servicesc) I get to ask questions about a product/servicesd) I get a free sample of a product/servicese) I get to have fun by participating in activities

5. Which would most likely cause you to participate in a product demonstration or event?a) The product/services matched my interestb) The product or company was sponsoring an activity I enjoy c) My friend/relative had a positive experience

92

d) The event offered an activity I could participatee) Other

6. How long did you stay at the mobile event?a) 1-15 minutesb) 15-30 minutesc) over 30 minutes

7. Which of the following is true? After leaving the mobile event I understood the company/product…

a) betterb) same c) less

8. How soon after attending a company-sponsored event at/near a store did you purchase the product or service being offered?

a) Immediatelyb) Within a monthc) Within a weekd) Did not purchasee) Within 3 monthsf) Within 6 monthg) More than 6 months

KEYS TO SUCCESSFUL EVENT MARKETING

While marketing an event, there are a few key methods that can be employed to ensure

that the event gains the maximum response.

93

Event is managed in the minimum cost possible. Event marketing has been a concept that

has only recently been pioneered in India. But, though new, the concept has taken off

very well with the Indian consumers who are evolving rapidly.

Some of the methods are listed below. Following them can ensure a cost effective

implementation of the event marketing.

If the event is meant to market a certain product, then it is necessary to ensure that the

purchase decision-maker attends the event. It is important to get the message across to the

target audience and therefore enough research about the profile of the attendees is

important to be able to communicate effectively to them about the product. It is important

that least 50-60% of the people attending the event are targets of the product to be

promoted.

It is also important to evaluate the value-added benefits that the venue or the trade show

organizer makes available to your business. Make sure you find out if they allow access

to the attendee mailing list so you can implement a pre-mailing process in order to

promote your one-day trade show special, as well as the location of your booth.

Make sure you get participant contact information before the event as well as after. Other

value-added benefits that can be expected from the show organizer include: being

included in participant email distributions promoting the event, as well as an

advertisement in the event show guide.

Before the event is undertaken, the cost effectiveness of promoting the product through

the event should be questioned by asking yourself event qualifying questions around the

“who" instead of the “how many”.

The giveaways at the event should be relevant to the business being promoted through

the event. And make sure you don't give something away for free just for the heck of it.

The location chosen for the event is perhaps the most important aspect. Make sure you

don't purchase a cheap booth at a popular exhibition because there are strong chances that

no one will be visiting you, since your booth will be tucked away hidden from all eyes.

The most ideal locations in any exhibition areas are found at the entryway to the event

94

and near the pathway to the food stations and restrooms.

OTHER IMPORTANT THINGS

A sponsorship checklist has been devised for the benefit of all those who are in the

business of event marketing or related to it.

1. Are you clear on your sponsorship objectives?

2. Does the activity or event have a link with your product?

3. Is the public perception of it a positive one?

4. Is it watched, attended, shared in or enjoyed by your target market?

5. Will your sponsorship raise your image in their eyes?

6. Is the activity or event free of close identification with a previous sponsor?

7. Will it create good ‘rubbing shoulders’ opportunities for you?

8. Can you measure its results?

9. Will it give you tangible benefits, such as naming rights, program advertising, on-

site displays or merchandise?

10. Will it have PR possibilities that reach beyond the immediate audience into your

target market?

11. Will it be a natural extension to your main advertising and promotional activities?

12. Are you prepared to commit yourself to it for a considerable period of time?

13. Are you prepared to put a great deal of effort as well as money into it?

14. Will your key personnel commit themselves to it enthusiastically?

BIBLIOGRAPHY

BASIC COVERAGE

95

Event Management Lynn Van Der Wagen & Brenda R. Carlos

Principles of Marketing Kotler & Amstrong

Marketing Management Philip Kotler

WEBSITES

www.indiatradepromotion.org www.exhibitionsindia.com www.supercommindia2004.com www.branders.com www.eventmarketer.com www.marketersadvantage.net/articles.htm?k=Network%20Marketing www.mobilemarketingjoblist.com www.fundsmanagementworld.com/india www.sbinfocanada.about.com/cs/marketing/g/promotion.htm www.wilsonweb.com www.marketingnpv.com www.india.gov.in/business/growing_business.php www.frost.com/prod/servlet/events-asia-pac.pag www.indialine.com/events/automotive.html www.hindustantimes.com/3g/ www.informatm.com www.MrSeeker.com

www.google.com

www.slideshare.com

www.shopairte.com

96

97