Events differ from other products. It is a combination of services and goods. This ppt takes you through different facets of event marketing channels, motivation involved and marketing mix involved in Event Marketing.
2. INTRODUCTION
An event may provide a service (musical
entertainment) alongside physical goods (food and
drink).
Services and goods combine to create experiences.
It is the experience, that the event consumer is
buying.
Events appeal to different people and every
consumer has their own individual makeup.
3. Marketing enables event organisers to capture
customer data and understand what motivates event
attendance.
It also allows customers to tell event organisers their
dislike in order to improve future events.
Marketers need to understand what motivates
consumers to attend events in order to create,
improve and market events effectively by selecting
appropriate marketing channels and deploying the
right marketing mix in the design of an integrated
marketing campaign.
Marketers create the desire to purchase by placing
stimuli in marketing communications that appeal to
the personal characteristics of the customers.
5. Motivations and Event Attendance
Motivations play a key role in the decision making
process, that determines which events consumers
will attend.
Everyone has a distinct and different motivations as
to which event to attend when and where.
In order to examine the motivations of people to
attend events, two different approaches can be
adopted - extrinsic and intrinsic motivation.
Extrinsic motivation results from influences external to the
person
Whereas intrinsic motivation includes the personal need of the
individual themselves
6. Extrinsic Motivations
Work and Leisure: People attend event to get some
relaxation from their hectic schedules or routines
and hence people seek stimulation through attending
events to add some colour to their life
Social Determiners: Social factors extend a combined
influence. They can be classified as cultural, social
and personal.
Cultural: Race, religion, sexual, geographic factors
Social: Family, status, friends and colleagues, educational
professional standing etc.
Personal: Age, lifestyle, occupation, economic circumstances
and personality etc.
7. Intrinsic Motivation
Intrinsic motivations can generally be categorised into two
main characteristics – Push and Pull.
Push Factors: The factors intrinsic to a person which
influences him to make a purchase decision is called push
factors.
They are internal factors and are person specific.
The push factors are those that the attendees see as a means
to satisfy a desire or need like to relax, to experience nostalgia,
to gain new information, thrill , excitement etc.
Pull Factors : That are the destination itself or the attractions
cited there that are so appealing that they pull an individuals
to themselves. They may be tangible factors such as climate,
food and drink, actual entertainment, artists performing etc.
9. MARKETING PLANNING
A strategic approach to marketing enables event
organizers to evaluate the marketing environment,
make informed marketing choices, gain competitive
advantage, modify plans to change with
environmental changes,(e.g. Manchester United Football Club cancelled
10 day Indonesia tour within min of the Jakarta Bombings in 2009) analyse
results, and use this evaluation to draw up future
marketing objectives.
Marketing planning involves analysis of the market,
choice of marketing activity and its implementation
through marketing campaigns in order to communicate
products and services to target customers.
10. Market Analysis
Factors effecting the current, emerging and future
market place is researched through analysis of
internal and external factors influencing choice of
events.
SWOT analysis of the organization is also done
through an internal audit to determine
organisational capabilities.
11. Setting Marketing objectives
The next step to marketing analysis is setting marketing
objectives to work towards the development of a market
plan.
Marketing objectives should be SMART –
Specific,
Measurable,
Achievable,
Realistic,
Timely
and based around strategic choice options
12. Implementing Marketing Strategy
The implementation stage sees translation of
objectives to practice ......
.......through strategic application of the strategic
marketing mix (7p’s) in a .....
.......well planned integrated marketing campaign.....
.......to capture the chosen market (through
segmentation, targeting and positioning)
13. Marketing Mix of Services
People , Process and Physical Evidence:
Products are manufactured while services are performed. In
performing services, a number of actors are involved: Employees ,
suppliers, shareholders and stakeholders.
Services have a range of characteristics which means that they
require, the services mix; people, process and physical evidence to be
employed for delivery of the event experience.
The characteristics of services are:
Intangibility, Inseparability , Heterogeneity, Lack of ownership,
Perishability.
14. People: The staff should be equipped to deliver the
services required through training. The staff needs to be
happy in their work to portray the company in a positive
light.
Process: The process part of the marketing mix is brand
management. The process of an event incorporates the
system and procedure set up to deliver the events to the
customers. The process needs to be communicated to all
stakeholders and designed accordingly.
Physical Evidence: Since events are mostly intangible
goods, the physical evidence needs to be managed
effectively in the form of tickets, signage, transportation,
uniforms, websites etc. Keeping in line with the brand
image.
It can be achieved through uniformity in design, features, colours,
logos and messages conveyed to consumers by the people involved in
their delivery.
15. Products : Events like any other products in the service
sector are produced and consumed simultaneously. To
understand the true nature of exchange process between
producer and consumer we must first appreciate what
the customers are actually buying and how this effects
the decision making process.
Products are purchased because the benefits of the
products satisfy the customers needs.
The Product Make up: By breaking the products into
different levels we can more easily identify and
understand these benefits which enables us to
communicate it with the potential customers more
effectively. A product can be broken into core product,
actual product and augmented product.
16. Example – V Festival held at western Park, South
Staffordshire, is a famous music festival established in
1996 that attracts over 85000 visitors per day over a
weekend with over a 115 acts performed.
Core Product – Ticket
Actual Product – 115 bands, the venue, the shops, the merchandise,
the traffic management and even the toilets.
Augmented Product – The atmosphere, anticipation, experience etc.
While the overall marketing offering is the event itself,
many of the elements that make up the overall product
have tangible aspects and associated benefits.
Understanding these aspects helps to focus specifically
on the needs of the customers and helps meet their
expectations.
17. Price: Finding the balancing point between what the customers will
be willing to pay and how much is required to make the event
profitable is a hard job for marketers.
Careful costing is the secret to successful pricing.
First all income and expenditure has to be budgeted.
Once the budget is in place, the baseline price or ticket yield can be
set (min avg. Price that needs to be levied to make the event feasible. There is always a particular elasticity in pricing
depending on the popularity of the event)
E.g. Madonna’s 2009 concert at Madison square Garden, tickets
were selling at $3000 per ticket but over 100,000 tickets got sold in
the first day itself.
Another important factor to consider while fixing up pricing is to
consider - all the costs to the customer like money spent on eateries,
travel and also opportunity costs
18. Pricing Policies
1. Penetration Policy: Deliberate low price setting to
maximise the sales at a low profit.
2. Economy Strategy: For budget events where costs
to the customers are low and organisers probably
look at outside funding for the event.
3. Premium Policy: Ticket prices are high and so is
the value to the audience
4. Psychological Pricing: It is about trying to get the
customers to respond emotionally to prices. E.g.
Rs.499 looks better than 500.
19. Place: Place where the event takes place, where the
ticket selling takes place etc.
Promotion: Promotion is the part of the marketing
mix that uses the marketing communication
channels to sell products and services to targetted
customers. The marketing communication channels
consist of advertising, sponsorship, direct and word
of the mouth marketing, PR sales and
merchandising.
AIDA – The most commonly used framework for designing a
promotional message.
A: get Attention
I: hold Interest
D: arouse Desire
A: obtain Action
20. In the world of marketing, 'promotion' generally refers to a
one-off event that provides a stimulus for the public to buy
a service or product
It uses all the marketing techniques. As it is project based, it
has a definite life span.
promotion is strongly linked to the reputation of the
organizing company, sponsors and other stakeholders as
well as the actual programme or event content.
event promotion must be dynamic and able to respond to
opportunities as they arise.
PROMOTION -Introduction
21. A study of customers at a community festival
reported that the Five Principal Need Satisfiers for
attending events are
Socialization: To be with friends or people who are
enjoying themselves and people who enjoy the same
things.
Family Togetherness: Seeking the opportunity so
that the family can enjoy together and to bring the
family together.
Need Satisfiers for attending events
22. Excitement/Thrills: Doing something, which is
stimulating and exciting, and appeals to the creative
mind.
Escape: Getting away from the usual demands of life
and having a change from daily routine.
Extent novelty: Experiencing new and different
things and attending an event that is unique.
The promoter of the event needs to keep these five
basic needs of people in mind and design a
promotional kit according to these so that it appeals to
the audience, which the event targets.
23. I. Advertising
Advertising is the controlled method of communicating the message. The
event manager can manipulate the message. It includes:
Give-aways: leaflets, posters, brochures
Radio: commercial, national
Internet: websites,
Television: cable, free to air, satellite
Press: newspapers, magazines
Non media alternatives: outdoor advertising, street banners.
Advertising can be done by the event manager or if the event and
promotional campaign is too big, by an appointed advertising agency,
Tools of Promotion
24. II. Public Relations
PR is different from advertising in that it is not self-
praise. It communicates a more complex message than
advertising.
It is free but the event manager looses control over the
result.
The publicity can be positive or negative. To this end, it is
important that the event manager maintains control over
as much of the public relation as possible.
Tools of Promotion
25. III. 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 database can be created through previous 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 mail out is the most common traditional method.
Tools of Promotion
26. IV. Word of mouth
For some event managers the promotion strategy is just
by word of mouth. They concentrate on the quality of
their programme and site. This builds up a loyal
following.
V. Hospitality
As part of the promotional kit, hospitality can be a
powerful motivator. The special event or festival has to
promote itself to the sponsors. The dinner for sponsors,
for example, can be an inexpensive way to promote the
event. A tour of the site can be an effective way to
promote an event.
Tools of Promotion
27. VI. Websites
The latest and increasingly popular method of promoting an
event is to create a website.
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 a
map.
A web site can be used to distribute photos and press releases.
Tools of Promotion
28. 5. E-communications : E-mail, and social networking
sites as a part of an integrated communications
strategy is key to developing deeper, richer and
meaningful interactions with existing and potential
customers.
Social networking sites are creating huge on-line
communities, enabling marketers to reach customers
easily, cheaply and in a very focussed way, but also
offers a semi-tangible legacy to an event days, weeks,
months and even years after the event has taken
place.
29. Other Promotional Strategies
1. Press release:
A press release is used to generate coverage in the
media, T.V, radio, newspaper and specialist
publication (as news story), to get the event free
media coverage.
The press release should be written on company
letterhead as a news report and after e-mailing to the
media, followed up with a phone call.
30. 2. Merchandising:
These are advertising material containing messages
relating to a specific event. T-shirts, caps, wristbands
etc.
Merchandise for event is often unique, because of the
nature of events as a one-off experience and can be
sought after as a collectors item, fetching high sums
on auction sites such as e-bay.
31. Capturing the Chosen Market
Through
SEGMENTATION -----TARGETTING------POSITIONING
Segmentation: It is the process of dividing a population into
smaller easily identifiable groups that will respond to a specific
messages targetted towards them.
Segmentation variables: There are a number of ways to segment
a population. The most common segmentation variables are :
Geographic: Assuming that people living in the same area have
similar consumption patterns.
Demographic: Dividing population by age, income, sex, socio-
economic status etc.
Psychographic: Dividing people according to personality
traits, attitudes and opinion.
Behavioural: Identifying people on “how they consume” a
product meaning frequency of the product.
32. One example of segmentation is the (NRS) National
Readership Survey method used in UK categorising the
population “Socio-economic variables”, social class and
income into following categories.
A – Higher managerial, administrative or professional
B – Intermediate managerial, administrative and
professional
C1- Supervisory, clerical, junior administrative or
professional
C2 – Skilled manual workers
D – Semiskilled and unskilled manual worker
E – Sate pensioners , widows, lowest grade workers
Regardless of which segmentation method is used, the chosen
market must be definable, sizable, reachable and relevant.
33. Targeting
Once relevant segments have been identified, the
next process is testing the segment. This can be done
via focus group interviews or customer panels.
Testing involves checks to establish most effective
variables for the group like colour of promotional
material to the key elements of the message.
There are three targeting strategies; Undifferentiated
targeting, differentiated targeting and niche
targeting.
34. Undifferentiated targeting: In order to gain
competitive advantage, the service is mass marketed
at a lower cost than competitors.
Differentiated targeting: Marketing based on
matching features and benefits of a range of brand’s
products and services to attract a range of customers
to the brand.
Niche Targeting: Targeting a specific group who
usually are capable of paying better prices.
35. Positioning
By understanding customer perception of events, a
marketer has to correctly place the communications
of products or services, so they will be in a choice
position or above competition. They are of two
types:
1) Positioning against a competitors offering: Also
known as comparison Marketing.
Here an aggressive position is taken to play the competitor at
their strength. Often the competitor is named with their
weakness highlighted.
36. Positioning Contd.....
2) Positioning the benefits of the events: Value
unique experience.
The consumer profile has to be analysed and the marketer
should be able to predict the most likely variables to appeal to
the targetted consumer. (Marketing intelligence data collected
from focus groups)