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24687200 event-marketing-project

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1. INTRODUCTION                                        6

     1.1 CONCEPTUAL FRAMEWORK                  ...

     4.1 EVENT DESIGNING                            44

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  3. 3. 1. INTRODUCTION “We GENERATE Quality Business Leads We ENHANCE Your Profile We CREATE New Business Opportunities Everyone Knows Us as EVENTS” Event marketing is growing at a rate of three times that of traditional advertising. Though relatively small compared to the major components of the marketing communications mix-advertising, sales promotions and P-O-P communications-expenditures on event sponsorship are increasing. 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 sponsoring entertainment tours or festival and fairs. Thousands of companies invest in some form of event sponsorship. Defined, event marketing is a form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social or other type of high-interest public activity. Event marketing is distinct from advertising, sales promotion, point-of-purchase merchandising, or public relations, but it generally incorporates elements from all of these promotional tools. Event promotions have an opportunity to achieve success because, unlike other forms of marketing communications, events reach people when they are receptive to marketing messages and capture people in a relaxed atmosphere. Event marketing is growing rapidly because it provides companies alternatives to the cluttered mass media, an ability to segment on a local or regional basis, and opportunities for reaching narrow lifestyle groups whose consumption behavior can be linked with the local event. MasterCard invested an estimated $25 million in sponsoring the nine-city World Cup soccer championship in the United States in 1994 and will likely sponsor other big events in many countries as well. 3
  4. 4. Olympics and its renowned five rings are “the world’s most effective property” in terms of marketing tools. The Olympics sell sponsorship on a local and global basis, and every couple of year’s corporation’s line up to pay as much as $50 million to be the lord of the rings. The Atlanta games in 1996 have a reported $3 billion in the bank as a result of negotiating sponsorship, broadcast, and licensee fees. The Olympics represents the creme de la creeme of event marketing and corporate sponsorship. Event marketing is a lucrative game of “what’s in a name”, as consumers purchase tickets and expose themselves to everything. The world of event marketing is a fast growing, high profile industry worth over $20 billion annually, and one of the most successful marketing strategies. Event marketing integrates the corporate sponsorship of an event with a whole range of marketing elements such as advertising, sales promotion, and public relations. Corporations both large and small have grown this industry at a rate of 17 percent per year, and they have achieved a high level of success. 4
  5. 5. 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. All sport and recreation organizations undertake marketing, although they are often unaware that they are actually doing so. Listing in the yellow pages, telephone directory, placing information in the local newspaper, offering a discount and special offers etc. are all forms of marketing. Marketing Tools The “marketing mix” or marketing tools an organization can use can be classified into four categories:  Product  Price  Place  Promotion Tools of Promotion  Advertising  Public Relations  Direct marketing  Word of mouth  Hospitality  Advertising 5
  6. 6. Advertising It is the controlled method of communicating the message. The event manager can manipulate 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 part of the event manager's job to gain maximum exposure for the event. PR is different from advertising in that it is not self praise but carries the strength of disinterested credibility. 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 as much of the public relations as possible. A thorough knowledge of the media's requirements and beneficial interaction with the media personnel are sensible methods. 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 entrepreneurial event it would include:  Data collection: Preparing a media list of suitable targeted media, preparing a contact list and club list such as politicians, interested people and opinion leaders - often called media talent - who can be called on to make suitable comments or actions which promote the event. 6
  7. 7.  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 continual and growing interest in the event. Milestones such as important editorials at critical times can also be established. Specialist magazines and newsletters with their highly targeted audience such as in-flight magazines, business magazines, trade publications and association newsletters, need to be included in the lists. Depending on the size and complexity of the event, the PR strategy can range from organizing a media launch and handing out a press kit to just sending a out a one page media release to selected media. News releases can be staggered over the planning period to generate increased interest in the event. Tips on Writing a News Release  Make sure it is released at the right time for it to be picked up by the media.  Make it clear and concise with the main features at the very beginning of the release.  Put who, what, when, why and where in it.  Have all contact details in it and the date.  Use liftable quotes.  Pitch it at the correct level: who will write the story and who will read it.  Identify any media talent associated with the event and give their contact details.  Make sure all the spelling is correct – particularly sponsors and main participants. The media launch is used by most large festivals, although it can be used by 'boutique' events that target a specific audience. If the launch takes place in an interesting area, it can be used as an opportunity to take photos and record interviews. Television requires special facilities such as access, power and transmission links. 7
  8. 8. What is the Media Kit?  Press release including the 5 Ws  Press ready photos or video footage  Event program  Sponsor information  Interview possibilities, times and contact details of any ‘stars’  Press gifts such as complimentary tickets, invitations or smart hooks 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 a rapport with the media - finding out what they want and how best to supply it. Networking is possibly the best way to develop this rapport. If the manager does not have time or the inclination to do this then the event organization should consider hiring a PR company. Direct Marketing This is delivering the promotional message straight to the interested individual. The basis of direct marketing is the establishment of a data bank and 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, guest books, inquiries, point of sale information or just by asking the participants if they would like to receive information on other similar events. The effectiveness of direct marketing can be seen in the Port Fairy Festival in southern Victoria. The Festival has an overall budget of half a million and only spends $6,000 on their promotion. Each person who comes to the festival is given the first rights to buy a ticket. The tickets are sold out five months before the festival begins. 8
  9. 9. Word of Mouth Bill Hauritz of the Woodford Festival in Southern Queensland estimates their advertising budget at less than $1000. The ticket sales generate over one million dollars. Their promotion strategy is just word of mouth. An annual event, they have concentrated on the quality of their program and site. This has built up a loyal following. Hospitality As part of the promotion tool kit, hospitality can be powerful. The special event or festival has to promote itself to the sponsors. The diner for sponsors, for example, can be an inexpensive way to promote the event. A tour of the site can be an effective way of promoting the event. Web Sites The latest and increasingly popular method of promoting an event is to create a web site. The advantage is that the site can also capture enquiries and be a point of sale for tickets. The current movement towards virtual reality sites can give the potential attendee a view of the event. The site can give real information, such as the program and map. Used in conjunction with a other elements of the PR campaign, a web site can be used to distribute photos and press releases. It transfers the some of the cost to the customer. 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. Too many 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. 9
  10. 10. 2. The increasing no. of TV channels and the greater no. of programs have led to fragmentation of the viewer-ship. Hence, the need for narrow-casting of campaigns to the sharply defined target audience. 3. 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. 4. 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. 5. 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: product, place, 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. Kotler describes the organization’s marketing mix as controllable variables that are mixed so that the organization gets the response that they are asking for from the target market. 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. 10
  11. 11. Fig 1.1: 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. Not surprisingly, savvy event marketing professionals are therefore focusing the majority of their efforts and budgetary spend on lead generation tactics such as trade shows. 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 11
  12. 12. current and prospective customers must also be nurtured even beyond purchase. Companies can benefit tremendously 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. The nurturing process will allow the customers to more effectively be funneled into the subsequent stages of the sales cycle thus creating greater opportunities to develop into repeat customers. EVENT MARKETING An event is a live multimedia package with a preconceived concept, customized or modified to achieve the clients objective of reaching out and suitably influencing the sharply defined, specially gathered target audience by providing a complete sensual experience and an avenue for two-way interaction. EVENT S REACH LIVE INTERACTION Right Communication Live Desired WITH CREATES from the Audienc Impact client e Fig: 1.2: Events Definition In-Short 12
  13. 13. This is a diagrammatic representation of the above definition. From the model it is evident that an event is a package so organized has to provide, reach and live interaction between the target audience and the client to achieve the desired impact. Event marketing involves canvassing for clients and 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 and negotiations as well as identifying opportunities to define and retain event properties by gathering marketing intelligence with regard to pricing, timing etc. In fact, ideally event marketing involves simultaneous canvassing and studying the brand prints; understanding what the brand stands for, its positioning and values, identifying the target audience 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 canvassing. 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 programme. This is the way publicity and promotions work. 13
  14. 14. 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 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. 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 she, is characterized by her context. Everything the human being experiences will affect the way she interprets situations. Unless she experiences a situation, which requires new behavior and this behavior is positive, she will not change her way of acting. However, if she is put in a situation in which she has to experience a new way of acting and if the experience is interpreted as positive, it is most likely that she 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 encapsulate and 14
  15. 15. 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 distinguished and 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/prospect 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. 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”. Internal marketing can be defined as selling the firm to its employees, and Kotler and Armstrong (1993) view internal marketing as the building of customer orientation among employees by training and motivating both consumer contact and support staff as a team. These definitions might be too static, since they are not teaching the employees; rather they are persuading how great the business idea of the company is. 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 15
  16. 16. 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. Match The Event To Your Market Choose the kind of event that appeals to your target market suits your product’s image and fits your marketing objectives. If, for example, you are looking for reach and you are selling a low cost product with wide general appeal, sports sponsorship may be the avenue for you. If your product is an up market one, artistic events could suit you better. If your have a technical product, science-type sponsorships would be possibilities and if your main aim is to be seen as a good corporate citizen, put your sponsorship money into good causes. The Children’s Hospital, the Red Cross or the environment, to name three, AIDS research is another one. The meteoric history of event marketing is based in sports marketing. In fact, music and arts represents a combined 35 percent of event spending as compared 45 percent for sports-related events. Event marketing also continues to thrive as traditional advertising rate skyrocket and, really, fail to provide any guarantee of reaching a targeted audience. Event marketing provides a cost-effective approach to making a more hard-hitting, emotional, and tangible pitch to consumers. It also gives companies the opportunity to cross-promote (promote with other companies that have related products or services), offer sample products (give-always), and build strong relationship with various channels of distribution, such as retail outlets. Charities go out of their way to meet both their own fund-raising needs and the profit requirements of the firms they team up with. It is a commercial relationship and the entire better for it. Charities need funds, and the businesses need promotions, which show their worth in extra profit. 16
  17. 17. 1.6 WHY EVENTS 1. Brand Building Creating awareness about the launch of new products/brand Enormous nos. of brand/product are 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 “ooh-yet-another- product” syndrome. The need to therefore catch the attention of the target audience at the time of launch becomes very important. Meticulously planned events for the launch of a product/brand seldom fail to catch the attention of the target audience. 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 rejuvenating brands during the different stages of product life cycle The massive amount of money that is spent during the introduction stage of products gets drastically reduced over time. By the time the product reaches its maturity/decline stage, the need for cutting down the budgets associated with the media campaigns, while at the same time maintaining the customer base is felt. And events offer the best medium for such a focused approach. It helps in generating feelings of brand loyalty in the products’ end user by treating them as royally as possible. 17
  18. 18. Helping in communicating the repositioning of brands/products Events help in repositioning exercises to be carried out successfully. In other words, 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 themselves. Here Citibank acts as the event organizer and small merchandisers acts as participants so that they can associate the personality of their products with the personality of Citibank customers. Creating and maintaining brand identity Australia-based Foster’s Brewing Group’s Asian subsidiary in its plan to launch its bear brand Foster’s Lager in India choose the game of cricket – in which the Aussies are known as the best team in the world. By becoming the official sponsors of Australian cricket team on its India tour, Foster’s hoped to achieve its goal of brand identity building and positioning itself at the premium end of the market. Rennie Solomito, Marketing Manager for Coors Light (Beer Company) explains that in order to increase awareness and personality of the brand, Coors Light tries to find the distinguishing “look of the leader” in each market. Coors Light select events that are fast paced and young minded, for example, Coors Light Silver Bullet Concert Series featuring artists like Bryan Adams and Celin Dion 18
  19. 19. 2. Image Building Over and above the brand identity that a company encourages, events such as The Great Escape conceived by Mahindra and Mahindra, exclusively for the owners of their four wheelers, the Armada, are an attempt to build a specific image of not only the corporate, but also the product, to let owners experience the thrill of four wheel driving, M&M charts out an off beat route that emphasizes the difference between normal and four wheel driving, and lets the participant experience the high, one feels when steering and navigating an Armada. Coke is associated with Olympics since 1928, the rationale behind this is similar values and ideologies: International peace, brotherhood, standard of excellence and fun. Fig 1.3: 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. 19
  20. 20. 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. Unparalleled footwear company NIKE ensures that it sponsors those events which will give it a chance to create an emotional tie with the participants through onsite brand usage and product presentation. 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. Enabling focused sales and communication to a captive audience In an event the audience is more or less bound to witnessing one particular event. In such a situation it is very favorable for sellers to put forth their presentations without any diversions. Such a situation is very valuable given the ineffectiveness of traditional modes of communication in holding on to the attention of the audience. For example, Burger King wanted to reach a young demographic in the New York area, EMG (Event Marketing Company) helped them to create a 30-concert series at the New York Palladium. Burger King received onsite signage and distribution of bounce back coupons. Increasing customer traffic in stores Events can be conceptualized to increase customer traffic. They can be customized to make available, concepts ranging from retail store specific events to mega events like one 20
  21. 21. 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 as compared to the revenue generated in the weekdays. Help in relation building and PR activities Practitioners of this marketing function believe that event marketing campaigns have the ability to create long lasting relationships with closely targeted market segments. Relationship building is not restricted to end user customers but also targeted at enhancing new distributors and sales representative relations. For example: Techfest organized by IIT Bombay, is an annual technological festival held by IIT Bombay has helped the sponsors in establishing their relationship with the Institute and ensuring that an image of being interested is created and nurtured. Coke is sponsoring the Olympic since 1928. As coke does business in over 200 countries, the Olympics give the company the opportunity to identify its product with the foremost special event in the world. Motivating the sales team The need for interaction is not restricted to external customers only and end consumers are not always the focus of live media exercises. This is especially popular amongst pharmaceutical and other 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. 21
  22. 22. Generate immediate sales Most events let firms install and exclusive boot and give the permission to exploit the opportunity to merchandise. Events such as the annual limited period discount sales from Wrangler and Van Heusen are authentic stock clearance and seconds sales aimed at generating immediate sales. Generating instant publicity An event can be designed to generate instant publicity upon the implementation of marketing strategy. The e-commerce start up Half.com, which wanted to sell products such as CDs, Books, Movies and Games over the internet was up against major and strong competition. The result of this publicity stunt started the ball rolling towards getting this company purchased by eBay for more than $300 million. Enabling market database assimilation, maintenance and updating By keeping track of the reach and its effectiveness as well as 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 However, there are many other marketing tools that can build brand-awareness and create image and not confuse them with event marketing the most common confusion will be explained here. Authors seem to mix up the concept of Event Marketing and sponsorship, 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 exploitable commercial potential associated with the property.” 22
  23. 23. 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. This model shows one way to look at where traditional sponsoring fits in compared to Event Marketing. Fig 1.4: 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. This fig 1.5 shows how it comes to be a double lever effect: 23
  24. 24. Fig 1.5: Control & risk depending on activity As we can see, there is a risk in using 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 maybe categorized as follows: 1. Mega Events The largest events are called mega events, which are generally targeted at international markets. All such events have a specific yield in terms of increased tourism, media coverage and economic impact. 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. 24
  25. 25. 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, cultural, musical and dance performances. Meetings, parties, celebrations, conventions, 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 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 and mahurats 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. 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. 25
  26. 26. 4. Meetings & Exhibitions The meetings & convention 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, 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. 26
  27. 27. KEY ELEMENTS OF EVENTS Event Organizer Infrastructure Target Venue Audience EVENT Media Client Fig 1.6: Key Elements of Event Marketing Event Organizers Femina with Fountainhead: Event Support Banyan Tree: Arrangements for classical music performance Hemant Trevedi with assistance from Noyonika Chatterjee: Choreography and Direction Omung Kumar Bhandula for Opus Planet Construction: Sets 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 and other performers during entertainment slots such as well known classical musicians, Pt. Shiv Kumar 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. 27
  28. 28. 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: 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. The use of such venue is reserved for the employees of the company or the residents of the campus. Most in-house venues do not need to be paid or even if a payment is involved, it may be open for favorable negotiation. The main advantage of in-house venue is the huge saving in the costs incurred in hiring the venue.  External Venue: Any venue over which neither the client nor the professional organizer have any ownership rights is called an external venue. These are venues open for the general public. Example: Hotels, Stadium etc, etc… Importance of Event Venue Events are venue driven. They help in increasing the customer traffic. Festivals such as Valentines Day or Holi sea venue playing the clients’ role for the event organizer. Venue has a say in the very feasibility of a event concept. 28
  29. 29. Example of Key Elements of Event:  Event L’Oreal Femina Elite Model Look’98  Venue  Shoot location: The Retreat, Marve  Official Host: Taj Mahal Hotel  Target Audience Youth and Family though with a younger mindset or young at heart.  Media  Pre-Event: Magazines and news papers to inform about event and call for entries with entry forms in them.  Electronic Medium: TV and FM Radio to inform target audience about event coverage, date & time.  During Event: Live coverage on DD2 for widest coverage.  Post Event: Re-telecast on Star Plus.  Interviews and appearance of winner on shows sponsored by L’Oreal on the electronic media.  Report on the event in the print media.  Clients  Main Sponsor: L’Oreal  Gifts Sponsors: Onida, Siemens, Bosh and Lomb, Global Tele-systems, Akbarallys Department Store, Trussardi, Catwalk Shoes, Estelle, The Orchids, Lakme, Sony Music.  Ground Transportation: Adarsh Rent-a-Car – an H.B Kedia/Anil Kedia Enterprise.  Communication Convenience: Global Tele-systems 29
  30. 30.  Beverages: Coca-Cola 2. CRITICAL REVIEW OF LITERATURE EVENT MARKETING SURVEY 2006 – conducted by Fifth Edition of Global Study Shows Steady March of Events Business at the Dawn of a New Era The secret is out. Five years of research has shown that meetings and 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. 30
  31. 31. 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. In fact, these are clear signs of an industry that is stabilizing and showing signs of maturation. 2.1 A Watershed Event While the meeting and events industry may be developing a beachhead within companies’ marketing mixes, it continues to face increasing scrutiny as it slides under the CFO’s budgeting microscope. Additionally, CMOs continue to face mounting pressure to show ever-increasing value and return on their investments. Enter the CMO’s white knight in the quest for the enigmatic and much sought after integrated marketing campaign — the evolution from event marketing to experiential marketing — an integrated campaign model offering the opportunity for an audience to “live the brand.” Although it is too soon to measure how transformational the evolution to experiential marketing will be for the meetings and events industry, high level findings from the 2006 global research indicate that overall, awareness of and interest in experiential marketing has the opportunity to bring the meetings and events industry to new heights. 2.2 The Key Take-Away Event marketing continues to play an important role in the corporate setting but has seen some minor setbacks in growth patterns from prior years in terms of perceived importance and value, perhaps due in part to the high visibility gained in years past. As opposed to potentially being discouraged by these findings, event marketing professionals should consider these early signs as an insightful call to action to innovate and create opportunities for even greater ROI. Event marketing professionals must 31
  32. 32. therefore develop either more focused traditional tactics or adopt new approaches such as experiential marketing. 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. 2.3 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. 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 32
  33. 33. 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. Although 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. 2.4 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 insofar as event marketing remains the marketing element that provides by far the highest returns on investment. 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 33
  34. 34. 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%) and that it 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. 2.5 Measurement Impacts Event Marketing Budgets 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 34
  35. 35. 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. 35
  36. 36. 2.6 TRANSITION TO EXPERIENCE MARKETING As the event marketing industry faces continues to face mounting pressures from the business world to demonstrate value, event marketing professionals find themselves in need to move towards the next evolutionary, if not revolutionary step within the world of events. CMOs and event marketing professionals are now looking for a solution that can provide a more complete approach to interacting with customers and prospects. Senior marketing professionals are looking beyond traditional event marketing tactics for an integrated campaign that offers the opportunity for an audience to interact with a company’s product/service and its brand before, during and after event(s) through the combination of advertising, direct, interactive and traditional event marketing. Over half of survey respondents (55%) in fact gave this definition to the term “experience marketing.” This year’s research also shows that 80% of respondents are currently adding experiencing marketing in some form or another to their marketing mix. Not only have a significant number of companies tried some experience marketing strategies, but a vast majority also feels as if there are tangible benefits to the updated approach. A remarkable 87% have said that they may eventually transition towards experiential marketing, while 74% have definitively said they will be moving forward with more experiential marketing within the next twelve months (see Chart 7). The most common reason given by survey respondents for moving towards experience marketing was that it provides a better method to convey the persuasive difference between their brand and the competition’s. The second most frequent reason given was that it provides an opportunity to leverage marketing spend across all of a company’s marketing disciplines. Although rooted heavily in event marketing, experience marketing should be considered a hybrid of many disparate forms of marketing finally coming together looking to cohesively interact with the customer. It is as evolutionary as it is revolutionary in as much as it brings new meaning to the term “integrated marketing campaign.” Experience marketing provides a unique opportunity to redefine the marketing landscape as well as how 36
  37. 37. companies interact with customers and prospects. Marketing and event marketing professionals who can effectively cross this chasm and adapt to this new paradigm have a great opportunity to become leaders within their organizations. About This Study EventView, 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, EventView 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 37
  38. 38. 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. 3. RESEARCH METHODOLOGY 3.1 OBJECTIVE OF THE STUDY To study Event Marketing as a Generic Promotional Tool: 1. The objective of this study is to understand the 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 3.2 NEED OF THE PROJECT The need of the project is to study and analyses certain issues in event marketing and event management, which need further attention. And some suggestions 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. 38
  39. 39. 3.3 SCOPE OF THE PROJECT 1. To understanding the short coming of event marketing and event management. 2. How these are perceived 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 launch new products/services. 4. To appeal to special customer interests. 5. To make more sales calls in a shorter time cycle. 6. To meet potential customers for new applications. 7. To change or improve the perception of your product. 8. To network with customers not normally called upon. 9. To present your products to buyers face-to-face. 10. To promote positive product trends. 11. To reposition your company in a market. 12. To select a new approach to marketing your product. 13. To target markets by types of visitors. 14. To understand customer attitudes. 15. To invite special customers to increase business 39
  40. 40. 3.4 METHODOLOGY 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 reveled 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. 40
  41. 41. 4. EVENT MANAGEMENT AS A PROMOTIONAL TOOL 4.1 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 41
  42. 42. Initial Concept Canvassing Conceptuali -zation Customization Costing Final Concept Carry-Out EVENT Fig 1.7: Event Designing Concept Example:  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 42
  43. 43. 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. 10 lakhs Canvassing Many corporates were approached with the initial concept to sponsor the event. The leads generated through canvassing for sponsors and negotiation with venue owners gave a 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 43
  44. 44. 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 pre-dominant 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. 4.2 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. The source is the organization, the message could be a new car launch, the channel could be the event, and attendees are the receivers. A problem many marketers have is to make sure that the noise that can disturb the message going from the sender to the receiver does not interfere with the message, and thereby influence the effect it has on the customer. 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. 44
  45. 45. Fig 1.8: 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 “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. 45
  46. 46. Relative Importance Of Events As A Marketing Communication Tool Dominant Relative Position Strong Favorable Tentative Weak Introduction Growth Maturity Decline Life Cycle Stages Fig 1.9: Position of Events and traditional modes of communication vis-à-vis the life cycle stage Events Traditional Modes of Communication 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 1.9 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 tentative/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 and will bite into a much larger portion of the marketing budget. 4.3 EVALUATION OF EVENTS 46
  47. 47. 1. Measuring Reach Reach is of two types – external and actual, since 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. The DART & TRP ratings that rate the popularity of programs on air and around which the promotion is slotted. 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 criteria. Ideally, External Reach =1 Actual Reach 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 is therefore 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. External Reach >1 Actual Reach 2. Measuring Interaction In most event categories, compared to reach, it is much more difficult 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 47
  48. 48. The no. of direct and indirect interaction points that have been planned and arranged for an event provide the first 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.  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. 48
  49. 49. 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 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 identity for a customer means, “who am I in regards to the surroundings, and to myself?” The brand of a product can symbolize a part of the individual customer’s identity. The brand can create a promise for the customer, and the product gives the brand the physical proof of that promise. The event in Event 49
  50. 50. 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. 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 50
  51. 51. Fig 2.0: 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. Exposure Rate: A way to measure the Image that the event has created could be done by looking at their exposure rate. However before using and trying to get media attention to an event it requires a careful analysis of the purpose, benefits and to see if the media is available to deliver the appropriate message. There are many different organizations that are working with observing the media and can deliver the exact amount of times a name of a brand or product figured in the media. Positioning & Branding 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 51
  52. 52. 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 diversify 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. 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 52
  53. 53. 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. Events Less Complex To Evaluate According to the interviewees, depending on the purpose and objective of the event, some of them are easier to evaluate than others. The interviewed people said that the depending on the relationship between event and the customer, the contact and knowledge of whom exactly attended the event decides weather it is easy or not to evaluate the event. Most brand-awareness events focus on the long-term success of the organization. Events that are easier to evaluate are, according to Orreving, events where you know exactly who was there, and where you can control the environment. If it is a VIP event at a dealership where it is possible to see who was actually there, it is easier to follow up with questionnaires and to see if they actually bought a product. 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 experience. The interaction between the organization and the customer will create a 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 53
  54. 54. also discussed that Event Marketing is only one of the possible marketing channels that can be used when marketing a product, and therefore 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 is because someone’s experience cannot be valued on a scale, and the interaction as a relation is not measurable. 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, 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 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 factors that can not 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. 54
  55. 55. Example: Event : Olympic Games 2000 Venue : Sydney, Australia Category : Competitive – Sports 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. 55
  56. 56. 4.4 REACH INTERACTION MATRIX The reach interaction matrix 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. REACH High Low Exhibition High Cultural INTERACTION Special Business Competitive Low Charitable Artistic Fig 2.1: Reach Interaction Matrix Amongst the various categories corporate interest have been concentrated on competitive events, especially so on cricket in India. 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 56
  57. 57. business events, cultural & charitable events in that order for popularity with event-savvy sponsors. 4.5 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 you 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.  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 57
  58. 58.  Attitude or image change  Message impact  New product consideration  Audience profile  Booth Exit Interviews To measure the immediate effectiveness of the booth and attendee 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 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 58
  59. 59.  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:  Audience quality  Audience motivation for attending the trade show  Attendee activity at the trade show  Strengths and weaknesses of your exhibit, staff, design, signage  Competitive comparisons  Which products are most effective to exhibit or demonstrate  Effectiveness of promotions and premiums  Audience attendance/experience at other trade shows 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 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 59