24687200 event-marketing-project

Table of Content1. INTRODUCTION 6 1.1 CONCEPTUAL FRAMEWORK 8 1.2 PROBLEMS ASSOCIATED WITH TRADITIONAL MEDIA 12 1.3 RELATIONSHIP BETWEEN EVENT MEDIA AND 5P’s 13 1.4 EVOLUTION OF EVENT MARKETING 14 1.5 KEY ISSUES FOR EVENT MARKETING 17 1.6 WHY EVENT 20 1.7 SPONSORSHIP Vs EVENT MARKETING 25 1.8 SIZE OF EVENT 27 1.9 TYPES OF EVENT 282. CRITICAL REVIEW OF LITERATURE 33 2.1 WATERSHED EVENT 34 2.2 THE KEY TAKE-AWAY 34 2.3 ROLE OF EVENT MARKETING IN MARKETING MIX 35 2.4 ROI DELIVERD BY EVENT MARKETING 36 2.5 MEASURMENT IMPACTS ON EVENT MARKETING BUDGETS 37 2.6 TRANSITION TO EXPERIENCE MARKETING 393. RESEARCH METHODOLOGY 41 3.1 OBJECTIVE OF THE STUDY 41 3.2 NEED OF THE PROJECT 41 3.3 SCOPE OF THE PROJECT 42 3.4 METHODOLOGY 43 1

4. EVENT MANAGEMENT A PROMOTIONAL TOOL 44 4.1 EVENT DESIGNING 44 4.2 COMMUNICATION EFFECTS OF EVENT MARKETING 47 4.3 EVALUATION OF EVENTS 50 4.4 REACH INTERACTION MATRIX 59 4.5 RETURN ON ONVESTMENT 60 4.6 KEY PROSPECT ANALYSIS 63 4.7 HOW TO BUILD A SUCCESSFUL BUSINESS PROMOTION AND MARKETING PLAN 64 4.8 STATEGIC ALTERNATIVES 67 4.9 RISK Vs RETURN MATRIX 74 4.10 APPICABILITY 75 4.11 ADVANTAGES OF EVENT 765. ANALYSIS AND RESEARCH FINDINGS 78 5.1 PRIMARY DATA ANALYSIS 78 5.2 INTERVIEWS AND DETAILED DISCUSSIONS 876. RECOMMENDATIONS 907. CONCLUSION 918. BIBLIOGRAPHY 929. ANNEXURE 94 9.1 QUESTIONNAIRE 94 9.2 KEYS TO SUCCESFULL EVENT MARKETING 95 9.3 SPONSORSHIP CHECKLIST 97 9.4 CASE STUDIES 98 2

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. Thoughrelatively small compared to the major components of the marketing communicationsmix-advertising, sales promotions and P-O-P communications-expenditures on eventsponsorship 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 spenton sponsoring entertainment tours or festival and fairs. Thousands of companies invest insome form of event sponsorship. Defined, event marketing is a form of brand promotionthat ties a brand to a meaningful athletic, entertainment, cultural, social or other type ofhigh-interest public activity. Event marketing is distinct from advertising, salespromotion, point-of-purchase merchandising, or public relations, but it generallyincorporates elements from all of these promotional tools. Event promotions have anopportunity to achieve success because, unlike other forms of marketingcommunications, events reach people when they are receptive to marketing messages andcapture people in a relaxed atmosphere.Event marketing is growing rapidly because it provides companies alternatives to thecluttered mass media, an ability to segment on a local or regional basis, and opportunitiesfor reaching narrow lifestyle groups whose consumption behavior can be linked with thelocal event. MasterCard invested an estimated $25 million in sponsoring the nine-cityWorld Cup soccer championship in the United States in 1994 and will likely sponsorother big events in many countries as well. 3

Olympics and its renowned five rings are “the world’s most effective property” in termsof marketing tools. The Olympics sell sponsorship on a local and global basis, and everycouple of year’s corporation’s line up to pay as much as $50 million to be the lord of therings. The Atlanta games in 1996 have a reported $3 billion in the bank as a result ofnegotiating sponsorship, broadcast, and licensee fees.The Olympics represents the creme de la creeme of event marketing and corporatesponsorship. Event marketing is a lucrative game of “what’s in a name”, as consumerspurchase tickets and expose themselves to everything. The world of event marketing is afast growing, high profile industry worth over $20 billion annually, and one of the mostsuccessful marketing strategies.Event marketing integrates the corporate sponsorship of an event with a whole range ofmarketing elements such as advertising, sales promotion, and public relations.Corporations both large and small have grown this industry at a rate of 17 percent peryear, and they have achieved a high level of success. 4

1.1 CONCEPTUAL FRAMEWORKWhat is Marketing?Marketing can be defined as a process by which individuals and groups obtain what theywant through creating, offering and exchanging products of value with others. All sportand recreation organizations undertake marketing, although they are often unaware thatthey are actually doing so. Listing in the yellow pages, telephone directory, placinginformation in the local newspaper, offering a discount and special offers etc. are allforms of marketing.Marketing ToolsThe “marketing mix” or marketing tools an organization can use can be classified intofour categories:  Product  Price  Place  PromotionTools of Promotion  Advertising  Public Relations  Direct marketing  Word of mouth  Hospitality  Advertising 5

AdvertisingIt is the controlled method of communicating the message. The event manager canmanipulate 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, InnovativeIt can be done by the event manager or, if the event and promotional campaign is too big,by an appointed advertising agency.Public RelationsOften it is part of the event managers job to gain maximum exposure for the event. PR isdifferent from advertising in that it is not self praise but carries the strength ofdisinterested credibility. It communicates a more complex message than advertising. It isfree but the event manager looses control over the result. It can be publicity can bepositive or negative. To this end it is important that the event manager maintains controlover as much of the public relations as possible. A thorough knowledge of the mediasrequirements 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 PRstrategy as part of the event risk management. Who will make public statements to thepress when there is an emergency? The PR campaign is a plan to gain maximum positivepublicity 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

 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, thejournalist, 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 criticalpath is ascertained to ensure continual and growing interest in the event. Milestones suchas important editorials at critical times can also be established. Specialist magazines andnewsletters with their highly targeted audience such as in-flight magazines, businessmagazines, 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 fromorganizing a media launch and handing out a press kit to just sending a out a one pagemedia release to selected media. News releases can be staggered over the planning periodto 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 boutiqueevents that target a specific audience. If the launch takes place in an interesting area, itcan be used as an opportunity to take photos and record interviews. Television requiresspecial facilities such as access, power and transmission links. 7

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 hooksAlthough PR involves the events relation to the public, it is the relations that the eventmanager develops with the media that can create interest in the event. It impliesdeveloping a rapport with the media - finding out what they want and how best to supplyit. 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 organizationshould consider hiring a PR company.Direct MarketingThis is delivering the promotional message straight to the interested individual. The basisof direct marketing is the establishment of a data bank and a strategy to best reach thoseindividuals. The mail out is the most common traditional method. The database can becreated from previous events through competitions, guest books, inquiries, point of saleinformation or just by asking the participants if they would like to receive information onother similar events.The effectiveness of direct marketing can be seen in the Port Fairy Festival in southernVictoria. The Festival has an overall budget of half a million and only spends $6,000 ontheir promotion. Each person who comes to the festival is given the first rights to buy aticket. The tickets are sold out five months before the festival begins. 8

Word of MouthBill Hauritz of the Woodford Festival in Southern Queensland estimates their advertisingbudget at less than $1000. The ticket sales generate over one million dollars. Theirpromotion strategy is just word of mouth. An annual event, they have concentrated on thequality of their program and site. This has built up a loyal following.HospitalityAs part of the promotion tool kit, hospitality can be powerful. The special event orfestival has to promote itself to the sponsors. The diner for sponsors, for example, can bean inexpensive way to promote the event. A tour of the site can be an effective way ofpromoting the event.Web SitesThe 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 viewof the event. The site can give real information, such as the program and map. Used inconjunction with a other elements of the PR campaign, a web site can be used todistribute photos and press releases. It transfers the some of the cost to the customer.1.2 PROBLEMS ASSOCIATED WITH TRADITIONAL MEDIAThe problems associated with traditional media that has been used for satisfyingmarketing 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

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 5PSThe five Ps of marketing: product, place, people, price and promotion play an essentialrole in Event Marketing. To successfully use Event Marketing the marketer mustunderstand how Event Marketing fits together with the other parts of the marketingstrategy. Kotler describes the organization’s marketing mix as controllable variables thatare mixed so that the organization gets the response that they are asking for from thetarget market. Event Marketing fits under promotion in the marketing mix. Othermarketing tools that goes under this section are advertising, sales promotion, personalsales, direct sales, public relations, and sponsoring. Event Marketing is not a substitutefor any of the other components- it is a complement. It takes an imaginative mix of allthe communication tools available to extend the impact of the event. 10

Fig 1.1: Marketing Mix vs. Event MarketingIf an organization uses Event Marketing, they still need to use the other parts of thepromotion mix before, during, and after the event. An example of this could be how a carproducer can have advertisements to inform about a new car launch, and then use eventsto get people to test drive the new car, and then follow up with direct marketing with adiscount coupon. One of the main advantages with Event Marketing compared to theother channels is that the objective can both be direct sales, and image building,depending on how it is used.1.4 EVOLUTION OF EVENT MARKETINGFrom its origins in event planning, the event marketing industry has seen great growth inthe last five years and has consistently been one of the most effective tools that marketingprofessionals have at their disposal in terms of making a tangible connection to currentand potential customers. The increasing competitive pressures brought on byglobalization are forcing business professionals to find new ways to engage customers.Not surprisingly, savvy event marketing professionals are therefore focusing the majorityof their efforts and budgetary spend on lead generation tactics such as trade shows. Whileit is important to garner leads, marketing and specifically event marketing professionalscannot lose sight of the fact that the sales cycle only begins at lead generation and that 11

current and prospective customers must also be nurtured even beyond purchase.Companies can benefit tremendously from the deeper event marketing touch points thatpromote nurturing such as proprietary conferences that provide a controlled environmentfor delivering messages and closing business. The nurturing process will allow thecustomers to more effectively be funneled into the subsequent stages of the sales cyclethus creating greater opportunities to develop into repeat customers.EVENT MARKETINGAn event is a live multimedia package with a preconceived concept, customized ormodified to achieve the clients objective of reaching out and suitably influencing thesharply defined, specially gathered target audience by providing a complete sensualexperience 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

This is a diagrammatic representation of the above definition. From the model it isevident that an event is a package so organized has to provide, reach and live interactionbetween the target audience and the client to achieve the desired impact.Event marketing involves canvassing for clients and arranging feedback for the creativeconcepts during and after the concept initiation so as to arrive at a customized packagefor the client, keeping the brand values and target audience in mind. Marketing plays animportant role in pricing and negotiations as well as identifying opportunities to defineand retain event properties by gathering marketing intelligence with regard to pricing,timing etc.In fact, ideally event marketing involves simultaneous canvassing and studying the brandprints; understanding what the brand stands for, its positioning and values, identifying thetarget audience and liaison with the creative conceptualizes to create an event for aprefect mesh with the brand’s personality.PUBLICITY AND PROMOTIONIf one knows how to organize an event he should also know how to market it. If there issomething very peculiar or special about the event then that main point has to behighlighted. A product launch for example requires a sales promotion campaign eitherbefore or after the launch. In that case the product is advertised through banners andmedia and even door to door canvassing. Effort is taken to ensure that people sit up andtake notice of the event. Sometimes it could be an event like an award ceremony, whichis to be shown on television and different companies make a beeline for sponsoring theirrespective products in the due course of the programme. This is the way publicity andpromotions work. 13

1.5 KEY ISSUE FOR EVENT MARKETINGThe Human DimensionA key issue for Event Marketing is having the right human resources communicating thebrand values. The importance of having people working that truly understand the brandwas emphasized by almost all the interviewees. The human dimension of EventMarketing is what creates the uniqueness to the brand in an event, especially for high-involvement purchases. In the capital goods industry, where high involvement decisionsare 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, theconsumer is more sensitive and might require more than one-way communication toconvert to another brand. What makes the 3D advertisement more unique is adding ahuman dimension, by placing someone who is familiar with and can communicate thecompany brand and product.The Human ContextTo add a human dimension might sound an easy solution in order to communicate thebrand identity. However, the human being is rather complex in her way of learning,interpreting and understanding, since she, is characterized by her context. Everything thehuman being experiences will affect the way she interprets situations. Unless sheexperiences a situation, which requires new behavior and this behavior is positive, shewill not change her way of acting. However, if she is put in a situation in which she hasto experience a new way of acting and if the experience is interpreted as positive, it ismost likely that she will repeat the behavior in a similar situation.Mental Models are deeply ingrained assumptions and generalizations that influence howwe understand the world and how we take action. The models keep us in the same patternof both thinking and acting. By questioning the Mental Models people see matters from adifferent perspective and openness. But in order to be able to question the Mental Modelswe 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 identityprogram, but in the future the company “brand” will have to encapsulate and 14

communicate what an organization is and what it stands for. Therefore the manager mustchange the interpretation of the brand. It is as important to win a distinguished anddistinctive place in the perception of a company’s actual and perspective customers, as itis the same with the employees. Since it is the human dimension that adds the value to acustomer/prospect in an event, all members and functions in the organization must notonly be market orientated in general but also market orientated in combination with thebrand values. It is a common fact that people are different and cannot adjust to allsituations.Several interviewees supported this when mentioning that there has to be a matchbetween the individual values and the company values. One crucial factor might be theindividual’s ability to learn, since the individual must not only understand the addedvalues in the brand identity but also learn to interpret the different situations that mightoccur during an event, and combine the behavior to the specific situation. It is theindividual’s perception of the current situation together with how he/she translates theadded values to fit to that specific situation that will help or not help the company.Integrated OrganizationWhen working with Event Marketing it is important to have a well-integratedorganization, therefore we agree, “that internal marketing builds service quality”. Internalmarketing 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 employeesby training and motivating both consumer contact and support staff as a team. Thesedefinitions might be too static, since they are not teaching the employees; rather they arepersuading how great the business idea of the company is.By learning how different components in a system interact will increase theunderstanding of how the entire system works. Understanding just one component byitself that is isolated from the others will not be enough. A company itself is a complexsystem that is connected by a series of contacts and the components in this system arehighly integrated. Since we are a part of this network, we most often only see specificcomponents and are puzzled by that we cannot find good solutions to our greatest 15

problems. System thinking is a term that contains knowledge and different tools, whichcan help us, understand and influence the entire patterns in an organization.Match The Event To Your MarketChoose the kind of event that appeals to your target market suits your product’s imageand fits your marketing objectives.If, for example, you are looking for reach and you are selling a low cost product withwide general appeal, sports sponsorship may be the avenue for you. If your product is anup 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 agood corporate citizen, put your sponsorship money into good causes. The Children’sHospital, 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 andarts represents a combined 35 percent of event spending as compared 45 percent forsports-related events. Event marketing also continues to thrive as traditional advertisingrate 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 tocross-promote (promote with other companies that have related products or services),offer sample products (give-always), and build strong relationship with various channelsof distribution, such as retail outlets.Charities go out of their way to meet both their own fund-raising needs and the profitrequirements of the firms they team up with. It is a commercial relationship and theentire better for it. Charities need funds, and the businesses need promotions, whichshow their worth in extra profit. 16

1.6 WHY EVENTS1. Brand BuildingCreating awareness about the launch of new products/brandEnormous nos. of brand/product are launched every month. Similarly innumerable newmusic albums, films, etc get released periodically. This tends to create clutter of productlaunches. 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 thetime of launch becomes very important. Meticulously planned events for the launch of aproduct/brand seldom fail to catch the attention of the target audience.Presentation of brand description to highlight the added features of product/servicesSometimes technological changes pave the way for manufactures or service providers toaugment their products. To convey this via traditional modes of communication to theexisting and potential customer base may sometimes be futile. Special service camps ofexhibitions are the perfect events that provide the opportunity for a two way interactionand error free communication. For Example, IMTEX, the Industrial Machine ToolsExhibition, is an event used by most machine tool manufactures to explain and highlightthe new and improved features of their product.Helping in rejuvenating brands during the different stages of product life cycleThe massive amount of money that is spent during the introduction stage of products getsdrastically 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 thesame time maintaining the customer base is felt. And events offer the best medium forsuch a focused approach. It helps in generating feelings of brand loyalty in the products’end user by treating them as royally as possible. 17

Helping in communicating the repositioning of brands/productsEvents 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 marketCitibank is an elite bank where people do banking with pride. Hence, other premiumbrands would like to associate themselves with the same audience so as to benefit fromthe rub-off effect. An exhibition-cum-sale event organized exclusively for Citibank creditcard holders, small merchandisers get to do business with the Citibank customers, as wellas build and maintain a premium image for themselves. Here Citibank acts as the eventorganizer and small merchandisers acts as participants so that they can associate thepersonality of their products with the personality of Citibank customers.Creating and maintaining brand identityAustralia-based Foster’s Brewing Group’s Asian subsidiary in its plan to launch its bearbrand Foster’s Lager in India choose the game of cricket – in which the Aussies areknown as the best team in the world. By becoming the official sponsors of Australiancricket team on its India tour, Foster’s hoped to achieve its goal of brand identitybuilding and positioning itself at the premium end of the market.Rennie Solomito, Marketing Manager for Coors Light (Beer Company) explains that inorder to increase awareness and personality of the brand, Coors Light tries to find thedistinguishing “look of the leader” in each market. Coors Light select events that are fastpaced and young minded, for example, Coors Light Silver Bullet Concert Seriesfeaturing artists like Bryan Adams and Celin Dion 18

2. Image BuildingOver and above the brand identity that a company encourages, events such as The GreatEscape conceived by Mahindra and Mahindra, exclusively for the owners of their fourwheelers, 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&Mcharts out an off beat route that emphasizes the difference between normal and fourwheel driving, and lets the participant experience the high, one feels when steering andnavigating an Armada.Coke is associated with Olympics since 1928, the rationale behind this is similar valuesand ideologies: International peace, brotherhood, standard of excellence and fun. Fig 1.3: Constructing the Brand Value Chain3. Focusing the Target MarketHelping in avoidance of clutterEven though some events do get congested with too many advertisements, events stillprovide and effective means of being spotted. For example, Title sponsorship of a majorevent provides the sponsor immense benefit since the sponsors name is mentioned alongwith the event like Hero Cup, Femina Miss India, Lux Zee Cine Awards. 19

Enabling interactive mode of communicationEvents generally provide an opportunity for buyers and sellers to interact. They alsoprovide 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 willgive it a chance to create an emotional tie with the participants through onsite brandusage and product presentation.4. Implementation of Marketing PlanEnabling authentic test marketingEvents bring the target audience together, thereby creating opportunity for test marketingof products for authentic feedback. The seller can identify exactly the traits and othercharacteristics that are desired. For example, marketing events that the Frito-LayCompany used before it launched its WOW! brand of potato chips.Enabling focused sales and communication to a captive audienceIn an event the audience is more or less bound to witnessing one particular event. In sucha situation it is very favorable for sellers to put forth their presentations without anydiversions. Such a situation is very valuable given the ineffectiveness of traditionalmodes 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 NewYork Palladium. Burger King received onsite signage and distribution of bounce backcoupons.Increasing customer traffic in storesEvents can be conceptualized to increase customer traffic. They can be customized tomake available, concepts ranging from retail store specific events to mega events like one 20

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 wellas increasing the awareness among the upper class of the existence of new McD’s outlets.Enabling sales promotionWeekly events conducted by Crossword Bookstore helps in generating more revenueduring the weekends as compared to the revenue generated in the weekdays.Help in relation building and PR activitiesPractitioners of this marketing function believe that event marketing campaigns have theability to create long lasting relationships with closely targeted market segments.Relationship building is not restricted to end user customers but also targeted atenhancing new distributors and sales representative relations.For example: Techfest organized by IIT Bombay, is an annual technological festival heldby IIT Bombay has helped the sponsors in establishing their relationship with theInstitute 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 foremostspecial event in the world.Motivating the sales teamThe need for interaction is not restricted to external customers only and end consumersare not always the focus of live media exercises. This is especially popular amongstpharmaceutical and other FMCG companies. For Example, during the cricket world cupheld in England HSBC introduced a unique pattern of motivating the sales force byawarding them runs instead of the traditional points system. This resulted in conversionof almost all of its employees into sales person. 21

Generate immediate salesMost events let firms install and exclusive boot and give the permission to exploit theopportunity to merchandise. Events such as the annual limited period discount sales fromWrangler and Van Heusen are authentic stock clearance and seconds sales aimed atgenerating immediate sales.Generating instant publicityAn event can be designed to generate instant publicity upon the implementation ofmarketing strategy. The e-commerce start up Half.com, which wanted to sell productssuch as CDs, Books, Movies and Games over the internet was up against major andstrong competition. The result of this publicity stunt started the ball rolling towardsgetting this company purchased by eBay for more than $300 million.Enabling market database assimilation, maintenance and updatingBy keeping track of the reach and its effectiveness as well as interacting with theaudience that actually turns up for the event, event sponsors can assimilate and authenticdatabase. The database can be used to track various marketing trends. Events can thenhelp in maintaining and updating the database.1.7 SPONSORSHIP vs. EVENT MARKETINGHowever, there are many other marketing tools that can build brand-awareness and createimage and not confuse them with event marketing the most common confusion will beexplained 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, theorganization works with the event as part of the marketing strategy. When sponsoring anevent, the organization buys exposure during the event at different levels of the eventitself. International Events Group (IEG) defines sponsorship this way: “The relationshipbetween a sponsor and a property in which the sponsor pays a cash or in-kind fee inreturn for access to the exploitable commercial potential associated with the property.” 22

By using the commercial right, the sponsor could associate the brand and have aneffective selection of the target group to market themselves to. The association makes thebrand synonymous with the sponsored happening, and thereby the sponsoring has beencalled association by event. Today sponsorship is one of the world’s fastest growingforms of marketing and together with Event Marketing they begin to play a moredominant role in many companies´ marketing budgets.This model shows one way to look at where traditional sponsoring fits in compared toEvent Marketing. Fig 1.4: Traditional Marketing vs. Event MarketingWhen the organization is sponsoring an event, (upper left corner) there is always abusiness agreement between at least two parties, which Event Marketing does notnecessarily have. Usually this is the case when there is a sport competition such as theOlympics or a World Championship. This kind of sponsoring limits the possibilities forthe organization to market their products since they have no control over the happeningsat the event, etc. There is a concept called the double lever effect, which explains therelationship between different events. When organizations move to EM (1), EM (2) andEM (3) the organizations increase their control and also the risk is increased. When thecontrol is increased, there is also a larger possibility for organizations to use the eventintegrated with the other marketing strategies. This fig 1.5 shows how it comes to be adouble lever effect: 23

Fig 1.5: Control & risk depending on activityAs we can see, there is a risk in using Event Marketing. There is no possibility to test theevent for the target group, and everything has to work during the event. The riskassociated with the event could be one of the reasons why some organizations choose touse pre-existing events instead of own events. Preexisting events are events that arecreated by someone else for another purpose.1.8 SIZE OF EVENTSIn terms of size events maybe categorized as follows:1. Mega EventsThe largest events are called mega events, which are generally targeted at internationalmarkets. All such events have a specific yield in terms of increased tourism, mediacoverage and economic impact.Example: The Olympic Games, World Cup Soccer, Super Bowl, Maha Kumbh Mela.2. Regional EventsRegional events are designed to increase the appeal of a specific tourism destination orregion.Example: Delhi Half Marathon. 24

3. Major EventsThese events attract significant local interest and large no of participants as well asgenerating significant tourism revenue.Example: Chinese New Year Celebrations.4. Minor EventsMost events fall into this category and it is here that most event managers gain theirexperience. Annual events fall under this category. In addition to annual events, there aremany one time events including historical, cultural, musical and dance performances.Meetings, parties, celebrations, conventions, award ceremonies, exhibitions, sportingevents and many other community and social event fit into this category.Example: Annual Trade Fair organized in Delhi, Chandipur Beach Festival1.9 TYPES OF EVENTS1. Sporting EventsSporting events are held in all towns, cities, states and throughout the nation. They attractinternational sports men & women at the highest levels.2. Entertainment Arts and CultureEntertainment events are well known for their ability to attract large audience. Thisincludes musical concerts, celebrity performances, movie releases and mahurats etc3. Commercial Marketing and Promotional EventPromotional events tend to have high budgets and high profiles. Most frequently theyinclude product launches, often for computer hardware and software, perfume, alcohol ormotor cars. The aim of promotional events is generally to differentiate the product fromits competitors and to ensure that it is memorable. The audience for a promotionalactivity might be sales staff such as travel agents, who would promote the tour of theclients or potential purchasers. The media is usually invited to these events so that boththe impact and the risk are high, Success is vital. 25

4. Meetings & ExhibitionsThe meetings & convention industry is highly competitive. Many conventions attractthousands of people, whereas some meetings include only a handful of high profileparticipants.5. FestivalsVarious forms of festivals are increasingly popular providing a particular region theopportunity to showcase its product. Wine and food festivals are the most commonevents falling under this category. Religious festivals fall into this category as well.6. FamilyWeddings, anniversaries, divorces and funerals all provide opportunities for familiestogether. 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 ofthese changing social trends.7. Fund RaisingFairs, which are common in most communities, are frequently run by enthusiastic localcommittees. The effort in the organization required for these events are oftenunderestimated. As their general aim is raising funds, it is important that rides and othersuch contracted activities contribute to, rather than reduce, revenue.8. MiscellaneousSome events defy categorization. Potatoes, walnuts, wild flowers, roses, dogs, horses,teddy bears all provide the focus for an event organized in United States. 26

KEY ELEMENTS OF EVENTS Event Organizer Infrastructure Target Venue Audience EVENT Media Client Fig 1.6: Key Elements of Event MarketingEvent OrganizersFemina withFountainhead: Event SupportBanyan Tree: Arrangements for classical music performanceHemant Trevedi with assistance from Noyonika Chatterjee: Choreography andDirectionOmung Kumar Bhandula for Opus Planet Construction: SetsEvent 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

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 VenueThe 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

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

 Beverages: Coca-Cola 2. CRITICAL REVIEW OF LITERATUREEVENT MARKETING SURVEY 2006 – conducted byFifth Edition of Global Study Shows Steady March of Events Business at the Dawnof a New EraThe secret is out. Five years of research has shown that meetings and events can play astrategic 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 providethe greatest opportunity to learn about a company’s brand, value proposition and (new)products/ services. Companies can derive business value from events to strengthenproduct or brand awareness; differentiate from the competition; educate or trainemployees 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 prioryear.2. The proportion of the overall marketing budget dedicated to event marketing decreasedslightly from the prior year. 30

3. The perceived future importance of event marketing has declined less than 3% from2005. While these results at first glance could be considered disappointing, none of theseindicators should be taken as a sign of a downward trend within the event marketingindustry. In fact, these are clear signs of an industry that is stabilizing and showing signsof maturation.2.1 A Watershed EventWhile the meeting and events industry may be developing a beachhead withincompanies’ marketing mixes, it continues to face increasing scrutiny as it slides under theCFO’s budgeting microscope. Additionally, CMOs continue to face mounting pressure toshow ever-increasing value and return on their investments.Enter the CMO’s white knight in the quest for the enigmatic and much sought afterintegrated marketing campaign — the evolution from event marketing to experientialmarketing — an integrated campaign model offering the opportunity for an audience to“live the brand.” Although it is too soon to measure how transformational the evolutionto experiential marketing will be for the meetings and events industry, high level findingsfrom the 2006 global research indicate that overall, awareness of and interest inexperiential marketing has the opportunity to bring the meetings and events industry tonew heights.2.2 The Key Take-AwayEvent marketing continues to play an important role in the corporate setting but has seensome minor setbacks in growth patterns from prior years in terms of perceivedimportance and value, perhaps due in part to the high visibility gained in years past. Asopposed to potentially being discouraged by these findings, event marketingprofessionals should consider these early signs as an insightful call to action to innovateand create opportunities for even greater ROI. Event marketing professionals must 31

therefore develop either more focused traditional tactics or adopt new approaches such asexperiential marketing. Between May and June 2006, almost 900 individuals inmarketing management positions from North America, Europe and Asia Pacific inindustries including automotive, high technology, healthcare, and financial wereinterviewed via telephone with hopes of bringing clarity to the events component of themarketing mix as it compares to other elements in a marketer’s arsenal.2.3 The Role of Event Marketing Remains Important In the Marketing MixAs the world economy continues its 2006 recovery, companies face ever-increasingfinancial pressures to generate additional revenues and improve profit margins.Globalization has created a myriad of new opportunities for companies but hassimultaneously brought with it new challenges in terms of newfound competitors vyingfor the same pool of clients and the inherent need to communicate one cohesive messageto the diversifying marketplace. It is not surprising therefore to see that almost one thirdof the marketing professionals surveyed this year stated that their top marketing concerncurrently is reaching new customers. Building brand awareness was respondents’ secondmost frequent concern, coming in at a distant 13%.Due to the increased competitive pressures, companies large and small, local and globalmust therefore constantly evaluate the mix of marketing tactics to ensure the bestpossible approach at reaching both current and potential customers. It is perhaps becauseof this need to freshen the marketing mix that we see survey respondents’ state that eventmarketing was either a lead tactic or vital component of the marketing plan slightly less 32

than half the time (49%) — a slight decrease from last year insofar as it was less of avital component and taken more under consideration with other mediums. Although thecurrent marketing mix shows in Chart 2 a slight decline as compared to last year, almost50% of respondents stated that the future importance of event marketing was eitherincreasing or increasing strongly. Furthermore, an additional40% of respondents stated that the future importance would remain constant. Thisstability in event marketing’s role is corroborated by the fact that event marketingrepresents more than 25% of survey respondents’ overall marketing budget, which isonly slightly less than a one percent reduction from last year’s figure.Another sign of the evolution of companies’ marketing mix appears in the budgetallocations for events. Much like in 2005, 59% of respondents stated that the majority oftheir event marketing budget is currently allocated to trade shows while 35% are spent onconferences. 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 ROIAlthough the results of this year’s survey suggest that the current role of event marketingmay have slipped slightly in companies’ marketing mix, the data also shows conflictinginformation insofar as event marketing remains the marketing element that provides byfar the highest returns on investment.Chart 3 shows that almost one in four respondents to the 2006 survey believes that eventmarketing provides the greatest ROI in Marketing. Although the figure is almost identicalto last year’s estimate (and decreasing over time), it is a statistical bragging right that 33

event marketing has held for the last three straight years, as well as four of the five yearsof this study (see Chart 4).The most common reasons given for event marketing’s high returns on investment comefrom the fact that it provides the greatest opportunity for direct, in-person, face-to-facecontact (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 itprovides one of the only opportunities to reach a large and engaged audience in onevenue (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 toprovide the greatest ROI due primarily to their ability to attract new customers. Whenasked 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 toprovide the greatest ROI.2.5 Measurement Impacts Event Marketing BudgetsSeventy-one percent of respondents to this year’s survey (see Chart 5) cite that they doengage in some post-event measurement activities. Not only is this a significant increasefrom last year’s 60% mark, it is also the highest rate of measurement recorded in thehistory of this study. This is a clear sign that event marketing professionals and CMOs 34

continue to need to demonstrate the ROI that comes from producing successful events asgreater financial scrutiny comes from corporate finance departments.The survey data shows that not only has the number of companies who measureincreased considerably from last year, but there has also been a slight increase in themarketing budget allocated to measurement — up one tick from last year — to 12%.When asked what key performance indicators (KPI) companies were measuring, overone third of respondents (36%) cited number of qualified leads, with overallcommunication effectiveness and sales increases each receiving 31% of the votes. Themost 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 todemonstrate value, this year’s survey does show one striking benefit of measurement. Ascan be seen in Chart 6, companies who do engage in some form of measurement are threetimes more likely to see an increase in their budgets than those who do not engage in anymeasurement. This data is further proof that tangibly demonstrating the value of an eventmarketing program can significantly increase the chances of getting increased funding. 35

2.6 TRANSITION TO EXPERIENCE MARKETINGAs the event marketing industry faces continues to face mounting pressures from thebusiness world to demonstrate value, event marketing professionals find themselves inneed to move towards the next evolutionary, if not revolutionary step within the world ofevents. CMOs and event marketing professionals are now looking for a solution that canprovide a more complete approach to interacting with customers and prospects. Seniormarketing professionals are looking beyond traditional event marketing tactics for anintegrated campaign that offers the opportunity for an audience to interact with acompany’s product/service and its brand before, during and after event(s) through thecombination of advertising, direct, interactive and traditional event marketing. Over halfof survey respondents (55%) in fact gave this definition to the term “experiencemarketing.” This year’s research also shows that 80% of respondents are currently addingexperiencing marketing in some form or another to their marketing mix. Not only have asignificant number of companies tried some experience marketing strategies, but a vastmajority also feels as if there are tangible benefits to the updated approach. A remarkable87% have said that they may eventually transition towards experiential marketing, while74% have definitively said they will be moving forward with more experientialmarketing within the next twelve months (see Chart 7). The most common reason givenby survey respondents for moving towards experience marketing was that it provides abetter method to convey the persuasive difference between their brand and thecompetition’s. The second most frequent reason given was that it provides an opportunityto leverage marketing spend across all of a company’s marketing disciplines. Althoughrooted heavily in event marketing, experience marketing should be considered a hybridof many disparate forms of marketing finally coming together looking to cohesivelyinteract with the customer. It is as evolutionary as it is revolutionary in as much as itbrings new meaning to the term “integrated marketing campaign.” Experience marketingprovides a unique opportunity to redefine the marketing landscape as well as how 36

companies interact with customers and prospects. Marketing and event marketingprofessionals who can effectively cross this chasm and adapt to this new paradigm have agreat opportunity to become leaders within their organizations.About This StudyEventView, the annual and first-of-its-kind event marketing trends study for seniormarketing executives, was originated in 2002 by The George P. Johnson Company. TheMPI Foundation has co-sponsored this important research since 2003. Now in its fifthyear, EventView is the number-one published event marketing trends report globally andthe longest-running study for the event marketing industry, providing the insight andguidance corporations and event marketing professionals within this field need todevelop strategic marketing programs.Between May and June 2006, almost 900 individuals in marketing management positionsfrom North America, Europe and Asia Pacific in industries including automotive, hightechnology, healthcare, and financial were interviewed via telephone with hopes of 37

bringing clarity to the events component of the marketing mix as it compares to otherelements in a marketer’s arsenal. The results of the 2006 survey have a +/− 3% margin oferror. 3. RESEARCH METHODOLOGY3.1 OBJECTIVE OF THE STUDYTo 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 event3.2 NEED OF THE PROJECTThe need of the project is to study and analyses certain issues in event marketing andevent management, which need further attention. And some suggestions have been givento make the Event Marketing and event management industry more effective in order toutilize its full potential and serve the objective of an event and be mutually beneficial forthe Event agency, the Corporate and the customer. 38

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

3.4 METHODOLOGYThe methodology followed for the research:Primary research detailed discussions with event management firms and the corporateclients. Subsequent additions were made to the interview schedule to suit the specificevents under study.The secondary information was gathered from various marketing journals and books onevent marketing, sales promotions and publicity. Daily newspaper reading in order tokeep track of various kinds of events also proved helpful.The information gathered was studied and analyzed. It reveled certain issues in eventmarketing which need further attention and some suggestions have been given to makethe Event Marketing industry more effective in order to utilize its full potential and bemutually beneficial for the Event Marketing agency, the Corporate and the customer. 40

4. EVENT MANAGEMENT AS A PROMOTIONAL TOOL4.1 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

Initial Concept Canvassing Conceptuali -zation Customization Costing Final Concept Carry-Out EVENT Fig 1.7: Event Designing ConceptExample:  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

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 lakhsCanvassingMany corporates were approached with the initial concept to sponsor the event. The leadsgenerated through canvassing for sponsors and negotiation with venue owners gave astrong impetus and indication of success for a particular variation. A leading soft drinkscompany could be persuaded to fully sponsor the event.CustomizationThe target audience of the soft drink company was pre-dominantly was fun-seekingyouth. The initial concept needed to be changed from a family oriented event to a 43

youthful event. The budget was needed to be drastically reduced to Rs. 2lakhs per centerand the event was to be simultaneously conducted in 5 locations spread across thecountry.Final Concept and Carrying OutConstraint of budget and specific requirement of the client changed the initial concept ofa two day program to a 3 hour forenoon program titled “HOLI GYRATIONS 2000”. Theprogram essentially revolved around a color rain dance and color blast for young peoplewith coverage on a popular youth oriented music channel on the television. It was alsodecided to use the event coverage as software for future use by the channel. Now theevent was fully sponsored show for a single sponsor with invitations to a limited no. ofparticipants. The show was fully customized to give pre-dominant importance to thesponsors’ colors viz. red and blue. The carry out stage involved being exceptionallycareful and prepared for eventualities such as hazards of drunken misbehavior of theyouth even though liquor was not allowed inside the venue. The interaction revolvedaround a popular VJ anchoring the show and except for dancing, there would be hardlyanything else actually happening. The carry out stage gets completely taken over by themusic channel.4.2 COMMUNICATION EFFECTS OF EVENT MARKETINGCommunication is the process of moving a message that includes different elements.Those elements include source, message, channel, receiver and the process of encodingand decoding. The source is the organization, the message could be a new car launch, thechannel could be the event, and attendees are the receivers. A problem many marketershave is to make sure that the noise that can disturb the message going from the sender tothe receiver does not interfere with the message, and thereby influence the effect it has onthe customer. The direct communication with the customer is one of the main advantageswith Event Marketing compared to other marketing channels. In the definition of EventMarketing, it is said that “an event is an activity that gathers the target group in time androom.” This means that the event is eliminated from the noise. 44

Fig 1.8: Communication Process in Event MarketingEvent Marketing is marketing communication in four different dimensions. The first oneis 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 thecustomers. They do this not by “pushing” their products at the customers, but bytouching the customers’ emotional feelings.The second dimension touches the customers by involving them in activities. When thecustomer gets a feeling from a product, he/she is informed of the value of the product. Anexample of this in the car industry is the test-driving of new cars. The third dimension isthe intellectual dimension and it regards the relevance of the event for the customers. Thefourth dimension is the spatial dimension, how to get the three prior dimensions intoaction and to inform the customers through all marketing channels. Some researchers saythat in the future, customers will not buy just the product, but the meaning, the event andthe character, which in turn give the customers the possibility to create their own valuefor the product. 45

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 CommunicationWith Regard to the competitive position of events as a medium and the life cycle stage itis 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 growthphase into the maturity stage. Their effectiveness is lost due to cut throat competitionwhich 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 toremain so in the near future and tend towards becoming stronger. Event as a strategicmarketing communication tool would gain significant followers and will bite into a muchlarger portion of the marketing budget.4.3 EVALUATION OF EVENTS 46

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 Reach2. 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

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 Marketing1. 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

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 reach2. 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

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 groupbelonging. Event Marketing can offer the individual a short-track to belonging byletting the individual attend an event. Through the event, the happening and themessage will give the individual a picture of him/herself, and a sense of belongingwith other individuals.This shows that part of the brand advantages lies in the possibility to influence theindividual’s identity, and to make possible his/her relation to other individuals and inthis way strengthen their value community. By doing this, there is a possibility todifferentiate the brand from other brands. The brand is seen as an independentmethod of competition.ImageImage is how the customer understands and looks upon the product, and a definitionis “how the consumers experience the brand.” An event can give the customer a clearpicture of the corporate identity that the company is striving for. Usually the imageconsists of different key factors that the customer receives during different times andin different places. These key factors could be the communication that theorganization has the physical environment, products, service, ethics, socialresponsibility, engagement in social and local happenings, and the behavior ofrepresentatives from the organization 50

Fig 2.0: Image BuildingThe experience at the event may of course result in direct sales, but normally theyhelp to build image and create positive associations around the brand that will lead tomore sales later on. Image can create lots of competitive advantages compared toother brands. This is especially true when the differences between the brands aresmall. A positive image can lead to not only increased sales, but it can also strengthenthe 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 buildimage, there is always a possibility for the customer to change his/her opinion andimage of the organization.Exposure Rate: A way to measure the Image that the event has created could be doneby looking at their exposure rate. However before using and trying to get mediaattention to an event it requires a careful analysis of the purpose, benefits and to see ifthe media is available to deliver the appropriate message. There are many differentorganizations that are working with observing the media and can deliver the exactamount of times a name of a brand or product figured in the media.Positioning & BrandingWhen a company has decided to use Event Marketing they need to understand howEvent Marketing can change the perception of the product in the customers mind, and 51

the positioning of the product. According to Kotler, it is extremely important to havea specific positioning in the customer’s mind, due to the fact that if a similar producthas the same positioning there is no need for the customer to buy your product. It isimportant to create an image and a correct positioning for customers that createdifferentiation between products. The positioning distinguishes brands from eachother and creates a place on the market and in the consumer’s minds for a particularproject. The idea behind positioning is to create brand awareness, which ideally leadsto long-term brand loyalty. The positioning is a two-stage process, indicating whichcategory the brand should be placed in and the differences between the brands in thiscategory.Products are becoming more and more alike. A company needs to diversify itsproduct from competitors´ products. An organization has three main perspectives fordifferentiation. They are: total perspective, more value for money, producestrustworthy products at a reasonable price, product perspective, offer a better productthat is newer, faster, cheaper, with unique selling attributes, and customerperspective, to know the customer better, and thereby reply to their needs faster. Thelast perspective, the customer perspective, involves the relationship between thecustomer and the organization. An event is the physical meeting between customerand organization, and thereby Event Marketing can be used as a tool to buildrelationships and create differentiation. The idea behind positioning is to create brandawareness. Direct advantage of using Event Marketing is that it creates high brandawareness around the product. The value of the brand lies in the mind of the potentialbuyers, and not with the business itself. Branding is part of the marketing strategyand product differentiation. The brand can communicate more directly with theconsumer than the product itself can; if the brand is seen as having a personality andsymbolizing certain values. This is due to the fact that the brand has an emotionalappeal to the consumers. A trend within Event Marketing is to involve more culturalaspects at events.The cultural aspects of events are not used extensively today. He further argues thatculture and brand strategy go hand in hand. Over time, a relationship between thecustomer and the product can be developed into brand loyalty. This loyalty is 52

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 EvaluateAccording 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 thedepending on the relationship between event and the customer, the contact andknowledge of whom exactly attended the event decides weather it is easy or not toevaluate the event.Most brand-awareness events focus on the long-term success of the organization. Eventsthat are easier to evaluate are, according to Orreving, events where you know exactlywho 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 iseasier to follow up with questionnaires and to see if they actually bought a product.The Complexity Of Evaluating Event MarketingAn event is concerned with a message, an interaction and integration. A message createssomething valuable for the customer, and gives the customer some kind of experience.The interaction between the organization and the customer will create a relationship. Theintegration part is concerned with how the Event Marketing is part of the other marketingstrategies. 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 interviewedpersons agreed with this theory, and believed that ignorance made evaluationcomplicated. Furthermore, evaluations not conducted due to lack of time. The interviews 53

also discussed that Event Marketing is only one of the possible marketing channels thatcan be used when marketing a product, and therefore it is hard to evaluate it separatelyfrom the other marketing tools. The more complex the marketing strategy, the harder it isto see what influenced the customer to buy the product. Other reasons why it could behard 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 othermarketing 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 usingdirect marketing it is easy to follow up exactly where the customers have seen thecoupons, brochures etc. However, none of the interviewed persons mentioned that itwould be easier to evaluate direct marketing than Event Marketing.It is as easy to argue against direct marketing as being the perfect measurable evaluationtechnique as it is to argue that Event Marketing should be trickier to evaluate. This is dueto the fact that there is a possibility that the customers could be affected by other parts ofthe marketing as they are when it looks like it is the direct marketing that has made thembuy a product. As long as more than one tool of the marketing mix is used, there isalways a possibility that the customers can be affected by them, and thereby there is no100% accurate evaluation tool.The reason why it might be considered hard to evaluate an event depends on the fact thatit is hard to evaluate the intangible aspects of the event. When asking the interviewedpeople to elaborate on intangible factors, such as the weather affecting the event, most ofthem were sure that that just the weather was not of importance for the success of theevent, and therefore there was no need to try to evaluate it. There are factors that can notbe 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 evaluatethe event comparing to the external social happenings, the only way to elaborate on theexample weather is to work with the weather and use it. If possible, the external factorsshould be eliminated, but if that is not possible the event should try to use them andthereby work for the event. 54

Example:Event : Olympic Games 2000Venue : Sydney, AustraliaCategory : Competitive – SportsEvent Organizer : IOCClient : General Electric, NBCTheme : 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 EvaluationAdvertisements 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 thesubscriber base expected to increase from 59 million to 70 million. CNBC’s reach interms of the subscriber base expected to increase from 74 million to 80 million. 55

4.4 REACH INTERACTION MATRIXThe reach interaction matrix summarizes the generic characteristics of each of thecategory to enable a bird’s eye view on events. However, each category can be designedin 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 MatrixAmongst the various categories corporate interest have been concentrated on competitiveevents, especially so on cricket in India. Such events have a broad based character andhigh media coverage. This implies high reach and added excitement through livecoverage on various popular channels. Post-event benefits trough highlights aid in theevent recall over and above the normal benefits that an event can offer. The fact thatinteraction is given short shrift is an anomaly that needs to be corrected. Competitiveevents are closely followed by events for artistic expression, then by exhibitions, special 56

business events, cultural & charitable events in that order for popularity with event-savvysponsors.4.5 RETURN ON INVESTMENTSolely coming up with the sponsorship fee (cash expenditure paid out to be associatedwith the event) for a specific event is not nearly enough of a guarantee for tangiblebusiness results. The need to leverage the maximum benefits of the sponsorship is of thehighest priority. As a rule, this can be accomplished by spending at least two or threerupees per rupee invested in the sponsorship. In other words, the sponsorship fee is just amere ante, and you must budget to properly exploit the product that you have justpurchased. Too many companies spend the big bucks to get into the event marketingbusiness and then never do anything with it. Leveraging your sponsorship includes anintegrated marketing program involving product sampling, on-site signage, event logousage, and myriad multilevel cross-promotions.ROI MEASUREMENT TOOLS:1. QuantitativeIn the world of trade shows and corporate events, surveys are a frequent choice forevaluating results. Even if you use lead generation forecasts or gross margin from showsales to measure ROI on an event, a survey can help you understand the reasons why thebusiness 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

 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

 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 mixPost-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 shows2. Qualitative Tools:Qualitative metrics, while not projectable to the entire population, can be helpful inassessing your performance. Following are a few of the more beneficial qualitativeapproaches.  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

improvement in training, exhibit effectiveness, placement, and other marketing tactics during the trade show.  One Word of Caution Don’t rely too heavily on informal feedback from booth staff and senior management when assessing the value of the trade show. Such comments as “Booth was crowded,” “Mostly junior people,” and “Felt light to me” can do more harm than good.4.6 KEY ACCOUNT OR KEY PROSPECT ANALYSISKeeping track of key account attendance can be an important success metric, especiallyat trade shows where you expect a relatively high level of current customer attendance.Make a list of key accounts, noting which were invited in advance by the sales team tovisit the booth or attend a business event. Distribute the list to booth staff and othercompany representatives at the trade show. Ask them to check off any who were engagedin conversation, and make other comments. Subsequent analysis of customer spendingcorrelated to contact points can often then help identify the relative importance of thetrade show visit in helping to secure orders from specific customers.Competitive AnalysisAssessing the presence of the competition is best approached qualitatively. Check thetrade show guide to see who among your competitors is exhibiting, speaking, orsponsoring events. Assign competitive sleuthing duty to several of your booth staff andother company attendees, if possible. Provide them with a form to fill out that coverssuch items as booth size and location, products featured, staff size, visitor experience,etc. 60

Fig 2.2: Business Event Objectives and Associated Metrics4.7 HOW BUILD A SUCCESSFUL BUSINESS PROMOTION ANDMARKETING PLANA good marketing plan summarizes the who, what, where, when, and how muchquestions of the company:  Who are the target buyers?  What sources of uniqueness or positioning in the market does your product have?  Where will you implement your marketing spending plans?  When will marketing spending plans occur?  How much sales, spending, and profits will you achieve?The financial projections contained in your business plan are based on the assumptionscontained in your marketing plan. It is the marketing plan that details when expenditures 61

will be made, what level of sales will be achieved, and how and when advertising andpromotional expenditures will be made.The major elements of a marketing plan:  The situation analysis describes the total marketing environment in which the company competes and the status of company products and distribution channels.  The opportunity and issue analysis analyses the major external opportunities and threats to the company and the internal strengths and weaknesses of the company, along with a discussion of key issues facing the company.  The goals and objectives section outlines major company goals and the marketing and financial objectives.  The marketing strategy section provides the companys marketing strategy statement, summarizing the key target buyer description, competitive market segments the company will compete in, the unique positioning of the company and its products compared to the competition, the reasons why it is unique or compelling to buyers, price strategy versus the competition, marketing spending strategy with advertising and promotion, and possible R&D and market research expenditure strategies.The sales and marketing plan outlines each specific marketing event or action plan toincrease sales. For example, it may contain a summary of quarterly promotion andadvertising plans, with spending, timing, and share or shipment goals for each program.The sales and marketing plan outlines each specific marketing event or action plan toincrease sales. For example, it may contain a summary of quarterly promotion andadvertising plans, with spending, timing, and share or shipment goals for each program. 62

Some of the ways to market your product or service are  Write letters (on issues and news items that have SOME relation to your business) to the editors of local papers.  Have give-aways (e.g. bookmarks or pens) that are useful and give details of your business.  Send news releases about your products and your business to local papers, radio and TV shows.  Take out an ad in a publication of a local group.  Offer to make presentations, on a topic related to your product or service at appropriate fora.  Keep your eyes open for "specialized" newsletters, newspapers, or other publications which might welcome an article written by you.  Get on the Internet and connect to the world with your own home page.Remember marketing is the face you show to public, highlighting uniqueness and qualityof the product. Check the content and layout before releasing an advertisement ordistributing pamphlet. Marketing is becoming an ever important tool in the presentcompetitive scenario, tell what your product or services can do, but dont promise whatyou can not deliver. 63

4.8 STRAGEGIC ALTERNATIVES:STRAGEGIC ALTERNATIVES ARISING FROM ENVIRONMENTALANALYSES INTERNAL STRENGTHS WEAKNESSES OPPORTUNITIES Maintenance Strategy Developmental Strategy Utilizing company’s strengths Maximize Opportunities to take maximum by minimizing weaknesses advantage of opportunity EXTERNAL Survival Strategy Pre-Emptive Strategy THREATS Minimizing both weaknesses and Maximizing strengths threats by considering options and their usage to such as: overcome threats Joint Ventures, Retrenchment, Liquidation, etc Fig 2.3: SWOT Based Strategy MatrixMaintenance StrategyArising from a situation of strength and favorable opportunities, the maintenance strategyprovides reasons to carry out activities that maximize available advantages. This is theperfect position to be in. Beyond this, every activity gets focused on maintaining thewinning edge and the lead over competitors. The event company here can well afford tobe aggressive knowing very well that it has the relevant strengths to back its claim on theopportunity. 64

Developmental StrategyTo gin advantage of potential opportunities while not having sufficient strengths calls forgaining a winning edge by using tactical retreats where irrelevant yet not giving up. Itrequires passive and defensive strategy, which attacks relevant opportunities in such away as to cover up on inherent weakness. Analogy here could be from the game of testcricket where a side that knows victory is impossible also knows that it can ward off adefeat by trying for a draw. This can be called a developmental strategy where one triesto make the most of the opportunity by not giving in to weakness.Pre-emptive StrategyThis strategy is usually used by entrenched market leaders on new entrants on their turf.Potential threats are nipped in the bird by exercising the full power of the company’sstrength. This is a very powerful and aggressive strategy as it requires foresight to fullyunderstand the threats looming on the horizon. Selecting which one to tackle requirescareful study since some points of strength could get eroded if used unnecessarily.Survival StrategyThis strategy is used to ensure that the company is alive for a battle on another day whenit will have the requisite strengths to grab its share of opportunities in the market. Thisstrategy gives license to take decisions like leasing one’s soul to the devil if only with anintent to retrieve it later. In plain words, it allows one to make drastic decisions in theface of harsh environment. 65

STRATEGIC ALTERNATIVES ARISING FROM COMPETITIVE ALANYSISFurther to the strategy from the environmental analysis a mapping of event concepts canbe used as a variable component along with decisions on facing competition, which canlead to more detailed and in-depth strategic alternatives. EVENT CONCEPTS USE EXISTING CREATE NEW COMPETE Sustenance Strategy Rebuttal Strategy Manage critical success factors Respond to new initiatives by COMPETITION more effectively competition with a similar move AVOID HEAD-ON Venture Strategy CONFLICT Accomplishment Strategy Maximize user benefits by using path breaking, trend setting Relative superiority initiatives to take a lead vis-à-vis Exploit competitor’s weakness competition by being first in the market. Fig 2.4: Concept vs. Competition MatrixSustenance StrategyThis is a strategy to be used when faced with no options but to take on the adversary withthe existing arsenal of event concepts that may be out dated or still current but nearingthe end of its life cycle. It becomes essential that the event company manage its resourcesand advantages in terms of CSFs that have been identified with greater efficacy.Successful concepts need to be brushed up and revamped to meet customer expectationsin the face of competitive offerings. 66

Rebuttal StrategyIf the competition forces new concepts first than the rebuttal strategy should be used. Inthis, the event company can launch its own new concepts of a similar vein and regain itsdominant position by aggressively promoting the same as a better alternative. This waythe education of the market about the new concept is left to the new competition and anadvantage gained is that market reaction to certain new concepts is fore known. Thedisadvantage lies in the fact that the first mover advantage is lost.Accomplishment StrategyThis strategy is viable when an existing concept is doing better than any of thecompetitors’ equivalent offering. This strategy, therefore, essentially says that stick to thewinning concepts and exploit the fact that competition cannot offer a similar qualityconcept and thereby wants to avoid a head-on conflict by itself. The danger here is thatcompetition may use any of the other strategic alternatives available to a challenger tocombat the situation.Venture Strategy This strategy envisages making use of the first mover advantage by creating newconcepts ahead of competition thereby creating niche markets. This may even involve are-definition of market segmentation. By maximizing user benefits and creating pathbreaking trend setting concepts the event company positions itself to take a lead vis-à-viscompetition by being first in the market. This is a double-edge strategy in that failure isas devastating as the benefits of a successful launch. 67

STRATEGIC ALTERNATIVES ARISING FROM DEFINED OBJECTIVES EVENT CONCEPTS EXISTING NEW EXISTING INCREASE PRODUCTIVITY RETAIN CLIENTS OF CLIENTS CLIENTS INCREASE PRODUCTIVITY NEW MARKET DEVELOPMENT OF CONCEPTS Fig 2.5: Client/Concept Fit MatrixThe above matrix provides options that event organizers have an offer in terms ofconcepts and their market. The basic strategic alternatives here revolve around whetherthe objective is to retain customers or market development. These objectives further leadto the strategic options of achieving them either to customization or new conceptdevelopment. By offering new concepts to a existing customers, a strategy of increasingbusiness from increasing clients can be discerned. Similarly by offering an existing eventto a new client, a strategy of increasing productivity of the event concept can befollowed. 68

PREP MODELThis framework has its roots, in the fact that, events as a business proposition forcorporatisation is relatively nascent in nature. Therefore, the concept of strategicperspective to growth through and along with clients is a major decision to be taken byan event agency having major growth plans. This model deals with the strategic optionsavailable by playing off objectives relating to market development against growth incompetition. CLIENTS EXISTING NEW EXISTING Enrichment Strategy Predatorial Strategy COMPETITION NEW Retaliatory Strategy Proactive Strategy Fig 2.6: PREP MatrixThe above matrix provides the choices before the event company when it comes to atrade off between clients and competition in terms of assigning priorities in decisionmaking. 69

Predatorial Market Development StrategyIf the development of new clients from existing competitors is the need of the situationthen the event company would be adopting this strategy. This is essentially an offensivethrough focused strategy wherein clients of other event companies are targeted.Enrichment StrategyIn a market situation where the event company is forced to compete fiercely for retainingits market this strategy is followed. It is used where the need to maintain an improve thequality of service becomes predominant.Retaliatory StrategyThis is basically a defense mechanism wherein the event company tries to defend it selffrom preditorial strategies of essentially new entrants. This strategy involves takingaction aimed at retaining its existing clientele and potential client base.Pro-active StrategyThe event company here can explore new client bases and stretch the limit of its conceptsacross untried event categories. Every event category has its own special environmentaland competitive structures. 70

4.9 RISK VERSUS RETURN MATRIX Time Pre-Planned Ad-hoe Low Risk Sponsored Type of Finance for Funds & Revenue Assured Returns Fully Zero Risk (can charge extra Assured Returns since chances of failure are high) Medium Risk High Risk Sponsored & Ticketed Partially Assured Returns Assured Returns to cover costs + to cover costs but chances of loss lower chances of are low profit Very High Risk High Risk Ticketed Very less time to Fully Chances of high ensure reach profits with equal Chances of failure chances of losses & loss are high Fig 2.7: Risk vs. Return MatrixThe above matrix considers two of the most important risk factors as well as the degreeto which it can affect the events company – Planning Lead Time and Type of Finance.Events based on time can be divided into pre-planned i.e., events carried out afterthorough planning with enough time for taking conscious decisions and ad-hoc eventsi.e., those that are taken up on the spur of the moment. On the basis of finance, events canbe fully sponsored, fully ticketed or partially ticketed and sponsored. Each decisioncarries with it an element of risk, the gradations of which can vary from zero risk to veryhigh risk as shown in the Fig 2.7. 71

4.10 APPLICABILITYDifferentiation and Focus in Event MarketingEvent Marketing has several advantages with multiple purposes, which normal marketingmedia do not have. For example, when advertising in a magazine, a company needs todecide which message they want to communicate as well as with whom they want tocommunicate. For companies using differentiation as a competitive advantage, spreadingseveral messages in many different magazines, the result might not cover investment. Onthe other hand, for companies using focus as a basic strategy, the cost for gatheringinformation about the specific target group must match the possibility to actually reachthe right segment. Depending on how Event Marketing is used both differentiation andfocus can be achieved.There are two major differences when using events. The events are pre-communicated;the companies have a possibility to control who will attend, or the event just happens;whoever is there has an opportunity to be a part of the event. Of course, depending onwhich place the company selects for the event, different types of consumers will bereached. When using general events; meaning that no single target group is invited, thecompany can still gain on the situation since they have a chance to adjust the added valueto specific customers during the event. The employees working during the event “read”the situation and adjust his/her behavior. Further the event itself might also communicatean added value to other people, although they might not be interested in the specificevent.On the other hand mean that Event Marketing can also be used when focusing on specifictarget groups. 72

4.11 ADVANTAGES OFFERED BY EVENTSAs is clear from the preceding section, use of events as a marketing communication toolnot only take care of the problems associated with traditional media but also offer certainadvantages because of which events are gaining importance over them. Some of theadvantages are detailed below: 1. Events have the ability to bring together sharply defined participants since the capacity for a particular event is usually limited. A specific no. of the target audience could be invited of enticed to buy tickets for a show especially created for a particular profile of the target audience. 2. Since the audience is actively targeted, the option of control reach can be exercised and ideal audience for narrow-casting of information can be gathered. This leads to lowering of the media networking budgets and focused communication with the specially gathered audience. The audience that has been specially invited invariably is an ideal audience. 3. An event carried out professionally and cleanly is invariably a memorable experience. The word-of-mouth publicity that this generates is an advantage that lingers on a long time after the event is actually been carried out. This provides an advantage of higher brand recall to the client. 4. The involvement of all the senses in experiencing the event is one of the greatest advantages that events can offer. Events can be designed such that the audience is actively involved in every part of the event and made to feel good. Thus, events as a live media offer a certain amount of immediacy to the experience – of being there while it‘s happening. For the audience, it is undoubtedly a thrilling situation. 5. Live media also enables interactive communication. Live media scores over conventional advertising in terms of reach, impact and tangible immediacy of 73

measurement. Live media communication is a complete sensual experience as compared to a press advertisement or TV/Radio commercial. This is so because of press ad is basically a flat piece of paper and a commercial is just an audiovisual experience. The high recall value of live media communication is also a major factor.6. No other media can boast of the ability to provide such massive collection of feed back instantly as events. Being a live media, it is possible to feel and deduce the reactions of the audience to the aim or objective that the event was conceived for.7. Easily customizable nature of events, mean that specific traits of the local inhabitants can be incorporated in the big picture to ensure that the event is socially and culturally in tune with the local culture. Thus, the localization of events is very easy.8. The advantage in terms of post-event publicity that events can offer over and above the paid or bartered media is the benefit associated with reports of the event in the newspaper and news on the electronic media. For such reports there is no extra cost to be borne – neither by the sponsor nor by the event organizer. This is a double edged sword because, in case the event is not up to the mark or is dogged y controversies, then the same is also reported impartially.9. The conversion of good events into television software for future use either by the sponsors for their commercials or by media house for programming is also a unique benefit that events offer. Such software become products by themselves and can be used profitability in the future. 74

5.ANALYSIS & RESEARCH FINDINGS5.1 PRIMARY DATA ANALYSISThe present study has been undertaken to get the first hand exposure on the mindset ofpeople towards Event Marketing concept and their involvement in events as and whenthey come across, if any.A questionnaire was designed keeping in mind the requirements for study & analysis ofmy thesis for comparing the hypothesis with the outcome of this survey.A general survey conducted with a sample size of 100 respondents revealed the followingfacts regarding the mindset of people towards the Event Marketing concept.This survey also gave scope to take necessary steps for organizing an event at right place,right time and in front of the right target audience.Event Marketing companies were also targeted and their response was also taken whichadded value to my thesis.Let’s have a look at what people feel about Event Marketing.When people were asked what they feel about a particular company which promotes itsproduct/service through Event Marketing 82% of the respondents replied that it gives apositive impression about the company and establishes the quality of theirproduct/service. 75

When people were asked about the reasons for which they have participated 53% repliedthat the event appeared amusing which was followed by reasons like a powerful brand oreye catching signs & banners.Graph A: Buying Behavior after a positive experience of an EVENT 90 88 80 78 70 69 60 50 40 30 29 20 16 10 6 10 3 3 0 More less neither More less neither More less neither likely likely likely likely likely likely a b cWhere,a = Product/service you have heard but not checked out yetb = Product/service you have never heard ofc = Product/service you already useInterpretation 76

If people had a positive experience, about the event 88% are more likely to buy a productjust when they were aware of it. Surprisingly, 78% are more likely to enter into thebuying process even if it’s a new product.Graph B: Gender influence on purchase 180 160 140 87 120 76 70 100 80 60 27 90 82 40 67 11 20 6 18 32 3 3 8 7 11 2 2 0 More likelyless likely neither More likelyless likely neither More likelyless likely neither a b c Female 70 3 27 87 3 11 76 6 18 Male 67 2 32 90 2 8 82 7 11Where,a = Product/service you already useb = Product/service you have heard but not checked out yetc = Product/service you have never heard ofInterpretation 77

After a positive experience of the events, women are more likely to purchase a productthey already use while men are a bit more adventures and may even be inclined topurchase a product that they are not using or haven’t yet heard about that product.Graph C: Men are explorers whereas women love samples 70 68 60 50 40 36 30 24 20 18 12 12 8 9 10 8 5 0 I get to touch and I get to learn I get to ask I get a free I get to have fun feel a more about a questions about a sample of a by participating in product/services product/services product/services product/services activities Male FemaleInterpretationThe female folk are drawn towards the event because they love samples which wasconfirmed when 68% out of the female respondents gave the same reply where as themale counter part are more interested in exploring the product inside out. 78

Graph D: Create events for right ages 70 70 60 60 52 50 40 38 30 25 21 21 20 14 13 12 10 10 10 12 9 8 7 5 6 6 4 0 I get to touch and I get to learn more I get to ask I get a free I get to have fun feel a about a questions about a sample of a by participating in product/services product/services product/services product/services activities 22-29 yrs 30-44 yrs 45-54 yrs 55+ yrs 79

InterpretationFun and free best describes the motivation of younger event attendees while educationand interaction are what the older crowd is looking for.Graph E: Events spur immediate sales 15% 26% 2% 4% 4% 24% 25% immediately within a week within a month within 3 months within 6 months more than 6 months Do not purchase 80

Interpretation26% of the attendees are ready to purchase a product immediately after the event, 25%within a month and 15% wont purchase the product at all.Graph F: Reasons for participation in any event80 8070 66 63 606050403020 18 16 13 14 13 9 1010 7 7 3 2 3 3 3 3 1 0 The The product or My friend/relative The event offered Other product/services company was had a positive an activity I could matched my sponsoring an experience participate interest activity I enjoy 22-29 yrs 30-44 yrs 45-54 yrs 55+ yrs 81

InterpretationOver all the age groups it was observed that if the product/service is of interest to theattendees they are more likely to participate in an event. The next best reason forparticipation across all age groups is the activity which the attendees enjoy.Graph G: People spend time at mobile events 8% 24% 68% 1-15 mins 15-30 mins over 30 mins 82

Interpretation68% of the total respondents spend approximately 15 mins on a mobile event and everyless people spend over 30 mins.Graph H: Mobile events create better product understanding 1% 24% 75% better same less 83

InterpretationMobile events which demonstrate product features are more likely to generate betterunderstanding about a company or its product.5.2 INTERVIEWS AND DETAILED DISCUSSIONS with various event managersand corporate helped me identify the problems in the event marketing industry. 1. The event marketing industry in India is highly unorganized. 2. Corporate are not fully aware of the concept, implementation process and effectiveness of event marketing. 3. No post-event analysis is carried out to evaluate the effectiveness of an event. As a result of which a lot of money is wasted and nothing productive happens. 4. Lately, event marketing has become a fad and even small entrepreneurs are blindly following the multinationals such as Coke and Pepsi that have presence all over in the event marketing industry (cricket, music, movies & road shows) 5. Even when large sums of money are involved, sponsorships have too often been handed out on nothing stronger than the managing director’s whim. In such cases, virtually no thought is given to their likely benefit to the company, or even how such a benefit could be measured. In the late 1980s, the Hill & Knowlton sports marketing division conducted a survey of Western Australian companies involved in sponsorship. Many were giving more than $100,000 a year. Yet a staggering 68% of them had no procedures in place to check the value of their sponsorships. How many of those companies would spend $100,000 on advertising without monitoring every year 84

stage of the campaign? How many would pay an executive $100,000 a year without demanding accountability for performance.6. Sponsorship today should be made as accountable as any other part of the marketing mix. Some forms of sponsorship have long-term networking goals that don’t lend themselves to immediate measurement. But if sponsorship is linked directly to a product, measurement should be possible through the only criteria that ultimately matter, Sales.7. T.V. and press coverage of the event cannot be equated with success-even if a company’s logo appears often and prominently. Instead, we need to take a close look at the sales results and see if they go up during the sponsorship period.8. Not all sponsorships are readily measurable. There are many, especially in the non-sporting field, where it’s almost impossible to establish a direct cause-and- effect relationship between sponsorship and sales. Carefully planned sponsorships can be a cost-efficient way to enhance corporate profile. They can link a company and brand with their customers’ lifestyles and aspirations. They can create a difference for the product, boost the effectiveness of the total promotional program, and put one in touch with people who can do a great deal for the business.9. Sponsorship itself never is a major communications thrust. It is always and only a complement to it. For every Rs. 100,000 you spend on sponsorship, you need to spend at least another Rs. 100,000 on more conventional promotional activities. And your sponsorship venture must not happen in isolation from them. It must be an integral part of your total promotional program. It must tie in closely in theme and message with everything else you are doing. Only then, will you get real benefit from your sponsorship investment.10. Commit large amounts of time and marketing expertise to it as well in order to bring about a long-term product association with the event. It means monitoring the event constantly, to ensure that your name, logo, product and so on are being featured, exactly as agreed. It means developing reliable ways of measuring its 85

results, if that’s possible. It means thinking about extensions-spin-off consumer and trade promotions, staff motivation programs, hospitality functions and so on.11. It also means being willing to keep it going for several years at least. The longer you stay with your sponsorship, the better the results you can expect-and the better, for the event too. If its name chops and changes from one year to the next, its image will become confused and tarnished. Then its value as a sponsorship property will drop.12. There is no consistency of operations and quality of events on the part of event management firms. Event marketing firms in India are very unprofessional and lack integrated marketing expertise.13. Situation analysis and TOMA effect which are done by advertising agencies is not done by event marketing agencies.14. Event marketing firms do not have retained accounts as advertising agencies.15. They also provide poor services as compared to advertising agencies. Hence corporate prefer to give their accounts for event marketing also to their own advertising agencies. These advertising agencies may further forward the contract to the event management firms in case they do not have the infrastructure and facilities for event management themselves. This results in lesser profits for the event management firms as a cut off percentage of at least 13.5% is retained by the advertising agency itself. Hence there is a need to build a more qualified and professional image of the event-marketing firms to gain corporate trust, and remove this intermediary to achieve higher profits. 86

6. RECOMMENDATIONSTo improve the condition of the event marketing industry and make it more professionaland profitable, the following recommendations have been listed: 1. Understand the corporate objectives, target audience, brand image and positioning clearly. 2. Do not go overboard with your concept or preference for a certain event. 3. Conduct a situational analysis for appropriate event selection which synergies with the company objective and brand personality. 4. Create extensive databases of the target consumers in order to conduct pre- and post-event analysis and evaluation to check the success of the event and consumer perception, also to assess the top of mind awareness and brand recall. 5. Conduct extensive market research to establish which parts of the program are working and which ones are not. Those in the first category should be maintained and strengthened. Those in the second should be relinquished. 6. In all sponsorship activities, it is important to protect the integrity of the activity being supported. If it is cheapened or its identity threatened, the sponsorship could rebound on the sponsor’s head. 87

7. CONCLUSION• Event marketing allows a company to break through the advertising clutter and target an audience by enhancing or creating an image through an association to a particular event.• Brand awareness reinforces the product or service, and drives sales.• Property or event, also profits, a financial partner, a supplemented advertising budget, and added leverage.• Event marketing also offers companies the flexibility to reach specific geographic and demographic audiences. It is a benefit that allows depth of exposure, as opposed to the breadth of exposure.• As CMOs continue to face increasing financial pressures, they must continuously provide higher levels of value, both in pure financial terms and overall measurement of ROI.• When considering the entire sales cycle, marketing professionals must think beyond traditional methods and bring transparency and measurement to their activities in order to demonstrate the fundamental value of their field. To answer this challenge, the event marketing industry must redefine itself to recognize the power of the “brand” to forge deep 88

connections, as well as also adapt events to contribute to branding in more sophisticated ways. • The perception of events as a form of media is quickly moving away from standalone activities to integrated forms of communication. These forms of communication synchronize with overall marketing goals through new applications of techniques rooted in traditional event marketing that project the brand more powerfully. Defining what an organization stands for, mapping out a clear brand strategy, and then formulating event activities that align with overall marketing goals is the next great step in the evolution of the industry. 8. BIBLIOGRAPHYBASIC COVERAGE  Event Management Lynn Van Der Wagen & Brenda R. Carlos  Principles of Marketing  Kotler & Amstrong  Marketing Management  Philip Kotler  Marketing is Business  Walter E. Vieira  The Fundamentals & Practice of Marketing  John WilmshurstWEBSITES  www.indiatradepromotion.org  www.exhibitionsindia.com  www.supercommindia2004.com  www.branders.com  www.viewcentral.com  www.eventmarketer.com  www.marketersadvantage.net/articles.htm?k=Network%20Marketing  www.mobilemarketingjoblist.com  www.flugsimulatoren.de/strategic-marketing.htm 89

 www.global-electronics.net  www.indianchild.com/marketing/india-marketing-scenario.htm  www.fundsmanagementworld.com/india  www.hedgefundsworld.com  www.sbinfocanada.about.com/cs/marketing/g/promotion.htm  www.wilsonweb.com  www.TradeshowDisplayPRO.com  www.clk.about.com  www.inventors.about.com  www.marketingnpv.com  www.businessknowhow.com  www.3rdfloorup.com  www.exchange4media.com  www.exhibitmanagement.com  www.dmoz.org/Sports/Events  www.biztradeshows.com/india/  www.classifieds.sulekha.com  www.pib.nic.in  www.india.gov.in/business/growing_business.php  www.blonnet.com  www.belowtheline.org/  www.frost.com/prod/servlet/events-asia-pac.pag  www.indialine.com/events/automotive.html  www.hindustantimes.com/3g/  www.informatm.com  www.asia.advertising.msn.com  www.ibef.org  www.tradeshowplaza.comPERIODICALS  Business & Economy  4Ps Business & Marketing  Business World 90

NEWSPAPERS  Times of India  Economic Times  Mint 9. ANNEXURE9.1 Annexure.1 QuestionnaireName :Age :Gender :Occupation :1. What are your feelings about a company that creates or sponsors events? □ They are willing to let people try them out □ Support activities that I enjoy □ They understand my interests and needs □ They like to have fun with me □ They want to know more about me2. Assuming you had a positive experience, would you be more or less inclined to purchase a product or service after having participated in an event? a) Product/service you have heard but not checked out yet  More likely  Less likely  Neither more nor less b) Product/service you have never heard of  More likely  Less likely  Neither more nor less c) Product/service you already use  More likely  Less likely  Neither more nor less 91

3. What was it that got you to notice or participate in the event? □ It looked like fun □ I recognize the company/brand running the event □ Signs and Banners □ Somebody invited me to participate □ The crowd that was already taking part in the event □ Others4. Which of the following is your favorite part of marketing events? □ I get to touch and feel a product/services □ I get to learn more about a product/services □ I get to ask questions about a product/services □ I get a free sample of a product/services □ I get to have fun by participating in activities5. Which would most likely cause you to participate in a product demonstration or event? □ The product/services matched my interest □ The product or company was sponsoring an activity I enjoy □ My friend/relative had a positive experience □ The event offered an activity I could participate □ Other6. How long did you stay at the mobile event? □ 1-15 minutes □ 15-30 minutes □ over 30 minutes7. Which of the following is true? After leaving the mobile event I understood the company/product… □ better □ same □ less8. How soon after attending a company-sponsored event at/near a store did you purchase theproduct or service being offered? □ Immediately □ Within a month □ Within a week □ Did not purchase □ Within 3 months □ Within 6 month □ More than 6 months  Thank you for your cooperation  92

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