1. T H E P E R E G R I N E A G E N C Y • S T R AT E G I C E V E N T A L I G N M E N T
N O V E M B E R 2 0 0 8
What C-level executives need to know about improving
the efficiency and effectiveness of event marketing.
There’s an audible shift occurring across the marketing spectrum, as
executives brace themselves for a fundamental restructuring of
business and markets to better align with a changing economy.
Vibrant creative, high-impact messaging and packed meeting
rooms are no longer satisfactory indicators of success. The demand
for measurable outcomes is growing louder, and marketers are
hustling to find efficient and effective solutions. With event marke-
ting absorbing a third of the typical marketing budget, the need to
address this sector is paramount – and also challenging. Like
herding cats, trying to rein in the‘what, why, who, when and where’
of meetings and events can be daunting. In this white paper we
illustrate the most effective strategic approach to meeting and
event alignment, and address three common missteps.
2. Measuring up
In the 2005 annual survey by the Association of National
Advertisers (ANA), senior marketers placed accountability as
their top priority, outranking innovation, globalization and
impactful ad creative. "This survey confirms what has been
on the marketing radar over the past year, that accountabili-
ty is one of the most dynamic principles in this industry," said
Bob Liodice, President and CEO of ANA. "The rapidly
evolving marketing landscape is demanding measurable
results among the senior level marketers..."
THE LAST MAJOR STUDY ON
MARKETING ROI FOUNDTHAT
68% OF MARKETERSWERE
UNABLETO DETERMINETHE
ROI OFTHEIR INITIATIVES.
Yet the demand for measurement is at odds with the ability
to provide it. In his article, “The Bottom Line on Marketing
Accountability”marketing expert Peter DeLegge asserts that
accountability persists as a hot topic, but progress in structu-
ring and implementing a measurement tool is slow. He
points out that a recent study by the Chief Marketing Officer
(CMO) Council found less than 20% of top technology
marketers surveyed had developed “meaningful,
comprehensive measures and metrics for their marketing
organizations.”The last major study on marketing ROI found
that 68% of marketers were unable to determine the ROI of
their initiatives.
Where measurement tools are in place and results consis-
tently tracked, benefits range from getting more bang for
every marketing buck to reaping the reward of higher
annual budgets. Chief among the sectors that warrant
measurement is event marketing. Meetings and events
account for more than $120 US billion in annual business
volume in the United States alone1. According to the
National Business Travel Association, up to 3 per cent of
gross revenue can be designated to the annual event
marketing expenditure of large corporations ($9.3 CAD
billion was spent on corporate meetings in 20062). This
represents about one third of the overall marketing budget
(MPI Event View 2008) – almost the same amount eaten up
by Advertising.
Executives place increasing importance on meetings and
events to achieve their marketing objectives. Meetings are
considered to be among the top three tactics when calcula-
ting ROI – ahead of sales promotion, public relations and
online initiatives3. Clearly, meetings and events play a major
role in achieving a company’s business and marketing goals.
The fact is, however, up to 80% of all meetings within an
organization typically don’t adequately meet corporate and
marketing objectives. Leading the possible reasons for the
inability of events to measure up is the anemic state of their
strategic configuration.
MEETINGS AND EVENTS
ACCOUNT FOR MORETHAN
$120 US BILLION IN ANNUAL
BUSINESSVOLUME INTHE
UNITED STATES ALONE.
Consider the approach marketers take to advertising.
Amalgamated media buys are scheduled against an appro-
ved strategy. Target audiences, ad size, medium and creative
are weighed against objectives. Ads are tracked and an
analysis at the completion of each campaign determines
future initiatives. Brand equity, ROI and value are key
concerns. Marketers are quick to reveal statistics and graphs
that support the ROI of advertising campaigns, yet the
process for event marketing measurement falls short. Where
measurement does occur, however, results provide marke-
ters with sufficient ammunition to improve their plans and
often, increase budgets.
BASED ON AN ESTIMATED
SPEND REDUCTION OF 10-30%
THROUGH ALIGNMENT, A $10
MILLION ANNUAL EVENT BUDGET
CANYIELD 20% IN COST SAVINGS -
THAT’S A HEFTY $2 MILLION.
The cost of meetings and events
Which brings us to the current buzz around event marketing
water coolers – the strategic alignment of meeting and
event management. It started as whispered conversations in
the mid-1990s among an enlightened few. When the siren
sounded in the glass tower to reduce costs, it became
apparent that event management was a sector where
savings could be significant. Based on an estimated spend
reduction of 10-30% through alignment, a $10 million
annual event budget can yield 20% in cost savings – that’s a
hefty $2 million.
The realization that aligning event management could
achieve cost savings, as well as other benefits, came with a
dilemma – how to corral all those meetings and their
associated spend? Without the controls that marketing
vehicles like advertising have in place, event planning had
become the domain of almost every department. The
executive assistant, marketing coordinator, HR manager,
sales specialist and financial analyst could all lay claim to the
role of event planner. Somehow, it had become acceptable
for millions of marketing dollars to be dispersed among
individuals of varying degrees of experience and ability. One
can only imagine the result if the responsibility for adverti-
sing had been treated similarly.
Meeting Professionals International (MPI) Foundation Canada White
Paper,“The Economic Impact of Meetings and Events’
Annual Market Report 2006, M&IT Magazine
MPI whitepaper, Change of Events, 2003
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T H E P E R E G R I N E A G E N C Y • S T R AT E G I C E V E N T A L I G N M E N T
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3. Strategic Event Alignment – the recipe for success
Successful event alignment requires several essential,
inter-dependent elements: effective leadership, a
well-planned strategy, strong and comprehensive support,
commitment, investment, and the right technology. A tall
order, but not much different from building a sound marke-
ting campaign.
HAVING IT, PROCUREMENT OR
MEETING AND EVENT PLANNING
CARRYTHETORCH OF ALIGNMENT
IS LIKE ASKINGYOUR ELECTRICIAN,
PLUMBER OR PAINTERTO
BUILDYOUR HOME.
It starts with the right leadership. Having IT, Procurement or
Meeting and Event Planning carry the torch of alignment is
like asking your electrician, plumber or painter to build your
home. Each offers a specific area of expertise and is an essen-
tial part of the alignment project team, but none are
qualified to take on the all-encompassing management role.
(See the section 'Three Common Event Alignment Missteps' on page 3.)
Outside event alignment strategists like The Peregrine
Agency often offer the best strategic business solution.
Solely focused on alignment, the global consultancy has
specialized strategic skills and experience. Joining forces,
directly with C-level executives, they collaborate with and
coach stakeholders and the project team (comprised of
participants from key departments such as Finance and IT)
to determine benchmarks, build and co-deliver the plan.
COST REDUCTION-BASED MEETING
MANAGEMENT PROGRAMS RESULT
IN CHEAPER EVENTS, BUTTHEY
MISSTHE BIGGER PICTURE –
STRATEGICALLY ALIGNED EVENTS
THAT DELIVER BUSINESS GOALS.
The value proposition – beyond cost reduction
Most meeting management approaches focus on process
and corralling event spend, and the current plethora of‘how
to’manuals, seminars and articles testifies to this.The #1 goal
of these approaches is cost reduction, and the primary focus
is often heavily weighted to the consolidation of the travel
component. Although the most visible in terms of spend
and activity, and the one executives gravitate to when
looking for cost efficiencies, travel is only one of several key
elements that must be taken into account. Moreover, cost
reduction-based meeting management programs result in
cheaper events. And that’s all. They miss the bigger picture
– strategically aligned events, defined objectives and
measurements that weave into the marketing plan and
deliver business goals.
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T H E P E R E G R I N E A G E N C Y • S T R AT E G I C E V E N T A L I G N M E N T
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Strong willed, determined,
focused, attentive individual with
in-depth understanding of
company culture and structure.
Unobstructed access to C-level
management is a plus.
Must have proficiency in: change
management, communication,
technology, marketing and
finance. Must understand corpo-
rate and marketing strategy.
Excellent project management
and presentation skills are essen-
tial. Be prepared to devote at least
800 hours over 5-6 months
to this initiative.
A TYPICAL RECRUITMENT AD
FOR AN EVENT ALIGNMENT
LEADER MIGHT READ:
W A N T E D
4. Strategic Event Alignment answers the escalating call by C-level executives to increase effectiveness and efficiencies in the delivery
of their corporate and marketing strategies. It provides a comprehensive solution to achieve results greater than mere cost reduc-
tion. Accomplishing and sustaining event alignment positions businesses to meet the demands of the new global economy.
The Peregrine Agency is a global event alignment consultancy that helps C-level executives achieve their business goals through
the strategic alignment of events that meet objectives and can be measured efficiently and effectively.
The goal of The Peregrine Agency’s Strategic
Event Alignment is event effectiveness (how
events fit in with a corporation’s business goals)
and efficiency (cost reduction and best
practices). This is delivered in three stages:
1. The initial discovery and benchmarking phase, which
determines why events are being held, the annual volume,
cost, type and size of events and who is holding them.
2. Implementation, which encompasses aspects such as
communications and change management, policies,
vendor management and technology. This allows flexibility
in scheduling and hands-on involvement by the project
team and event management department.
3. Measurement of events following implementation.
Measurement from a financial (ROI) and strategic (ROO)
perspective gives a better picture of event marketing and
allows C- level executives to chart the course for future
events with an understanding on how they fit with both
event objectives and overall business goals.
The value proposition of Strategic Event
Alignment can be summarized under two areas:
Event Effectiveness
• Increased ability to deliver on event objectives and
strategic business goals.
• Improved customer value propositions for employees,
clients and the marketplace.
• Integral to other corporate improvement initiatives.
Event Efficiency
• Increased productivity of the event management
department; competencies and skills can be enhanced
and leveraged for the benefit of the entire company.
• Reduced contractual risk; streamlined support infrastruc-
ture, processes and local practice resources; enhanced
management facilitates control (over costs and events)
and supports ongoing improvements.
• Significant long term cost savings and leveraged
purchasing power through preferred vendor selection;
applied effective negotiations skills to external
spend activities.
THREE COMMON EVENT ALIGNMENT MISSTEPS
The meeting planner or manager leads the alignment. This is the
primary audience for most of the meeting management programs in the
market today. But it’s like putting the electrician in charge of building the
house. Yes, event alignment affects the meeting planning team the most,
and planners typically have extensive knowledge of the industry and
event logistics, but even senior level event managers don’t necessarily
have a sufficient understanding of marketing, strategy, or finance to head
up the entire implementation. Moreover, meeting managers can rarely
spare the time to head up an exercise of this magnitude. The event
manager does play a pivotal, active key role in the alignment initiative, as a
member of the project team, and in the ongoing sustainability plan.
IT drives the implementation, or worse, selects the technology in
advance of the alignment strategy. This is a classic case of the tail wagging
the dog. Currently the overriding perception within the marketplace is that
implementation of specialized technology is the primary resource and tool
in achieving an enterprise event alignment. The technology is, in fact,
primarily the enabler supporting the tracking, measuring and evaluating
requirements of events. A common lament among meeting management
software providers is how often clients implement the technology without
first defining alignment parameters. When the technology leads the
alignment, it inevitably has to be reassessed when the need for an overall
strategy becomes apparent – a time-consuming and costly misstep.
Procurement manages the initiative. Good for office product contracts,
bad for the intangible and non-financial aspects of event alignment. In the
2008 FutureWatch report, published by MPI, the value of procurement as a
key stakeholder in the meetings function did not score well. Only 24% said
procurement processes had led to significant cost savings and15.3% said
procurement had led to reductions in service quality. A whopping 42%
said procurement had“created significant frustration or difficulty”with
contracting processes, timing, or decision-making. Procurement has a
place on the project team, just not at the head of it.
T H E P E R E G R I N E A G E N C Y • S T R AT E G I C E V E N T A L I G N M E N T
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