24687200 event-marketing-project

18,313 views

Published on

0 Comments
14 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
18,313
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
954
Comments
0
Likes
14
Embeds 0
No embeds

No notes for slide

24687200 event-marketing-project

  1. 1. 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
  2. 2. 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
  3. 3. 1. INTRODUCTION “We GENERATE Quality Business Leads We ENHANCE Your Profile We CREATE New Business Opportunities Everyone Knows Us as EVENTS”Event marketing is growing at a rate of three times that of traditional advertising. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7.  List ideas for continuous exposure such as interesting media ready stories, competitions, public appearances, stunts, speeches, feeding the chooks.When these lists are prepared, the ideas prioritized and the story angles determined, 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
  8. 8. What is the Media Kit?  Press release including the 5 Ws  Press ready photos or video footage  Event program  Sponsor information  Interview possibilities, times and contact details of any ‘stars’  Press gifts such as complimentary tickets, invitations or smart 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
  9. 9. 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
  10. 10. 2. The increasing no. of TV channels and the greater no. of programs have led to fragmentation of the viewer-ship. Hence, the need for narrow-casting of campaigns to the sharply defined target audience. 3. Proliferation of low intensity television viewers who view a little of each channel leads to the need for capturing the full attention of the target audience. 4. Media cost inflation – Due to rising inflation which has been eroding the advertising budget, advertisers are demanding the beat return from every ad-rupee spent. Media planning has become more complex and therefore the need for increase the effectiveness in terms of tangible impact which can be instantly evaluated has risen. 5. Proliferation of various media channels, therefore the requirement for intelligent media buying.1.3 RELATION BETWEEN EVENT MARKETING AND THE 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. day international cricket tournament. For example, Nescafe 3-in-1 treasure hunt, co-sponsored by McDonald’s is a combined effect in increasing the customer traffic as 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
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. 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
  28. 28. Importance of Infrastructure Indian business events, particularly large trade fairs, are underdeveloped as a result of poor infrastructure outside Delhi. New exhibition and convention centers developed in Chennai and Hyderabad will help spur the industry’s growth. If a new facility of international standard can finally be built in Mumbai, this will generate a huge opportunity for business media companies. Smaller, traveling events, road shows which move around the country’s many secondary markets will also be significant income generators for some business media firms.Event 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
  29. 29. Example of Key Elements of Event:  Event L’Oreal Femina Elite Model Look’98  Venue  Shoot location: The Retreat, Marve  Official Host: Taj Mahal Hotel  Target Audience Youth and Family though with a younger mindset or young at heart.  Media  Pre-Event: Magazines and news papers to inform about event and call for entries with entry forms in them.  Electronic Medium: TV and FM Radio to inform target audience about event coverage, date & time.  During Event: Live coverage on DD2 for widest coverage.  Post Event: Re-telecast on Star Plus.  Interviews and appearance of winner on shows sponsored by L’Oreal on the electronic media.  Report on the event in the print media.  Clients  Main Sponsor: L’Oreal  Gifts Sponsors: Onida, Siemens, Bosh and Lomb, Global Tele-systems, Akbarallys Department Store, Trussardi, Catwalk Shoes, Estelle, The Orchids, Lakme, Sony Music.  Ground Transportation: Adarsh Rent-a-Car – an H.B Kedia/Anil Kedia Enterprise.  Communication Convenience: Global Tele-systems 29
  30. 30.  Beverages: Coca-Cola 2. CRITICAL REVIEW OF 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
  31. 31. 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
  32. 32. 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
  33. 33. 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
  34. 34. 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
  35. 35. 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
  36. 36. 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
  37. 37. 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
  38. 38. 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
  39. 39. 3.3 SCOPE OF THE PROJECT 1. To understanding the short coming of event marketing and event management. 2. How these are perceived today. 3. Problems faced by Indian event agencies. 4. Understand and manage the event in the best and effective way.The few reasons for choosing event marketing as a promotion tool are as follows: 1. To accelerate your product into new markets. 2. To judge your products against the competition. 3. To launch new products/services. 4. To appeal to special customer interests. 5. To make more sales calls in a shorter time cycle. 6. To meet potential customers for new applications. 7. To change or improve the perception of your product. 8. To network with customers not normally called upon. 9. To present your products to buyers face-to-face. 10. To promote positive product trends. 11. To reposition your company in a market. 12. To select a new approach to marketing your product. 13. To target markets by types of visitors. 14. To understand customer attitudes. 15. To invite special customers to increase business 39
  40. 40. 3.4 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
  41. 41. 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
  42. 42. 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
  43. 43. the Hindu Mythological event in which Prahalad emerges unscathed from a fire arranged by his father King Hiranyakashyap and aunt Holika to kill him.  Background  Title of the Event : RANG BARSE  Place : Mumbai  Venue : Parking lot of an amusement park  Year : 1997  Duration : 2 Days  Target Audience : City dwelling families  No. of Audience : 1500  Ambience : Rural Mela  Costing : Rs. 7 lakhs  Event Type : Partially sponsor and partially ticketed  Initial Concept For Holi 2000 A2Z wanted to repeat the previous year’s event ad verbatim  Costing Costing for Holi 2000 worked out to Rs. 10 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
  44. 44. 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
  45. 45. 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
  46. 46. Relative Importance Of Events As A Marketing Communication Tool Dominant Relative Position Strong Favorable Tentative Weak Introduction Growth Maturity Decline Life Cycle Stages Fig 1.9: Position of Events and traditional modes of communication vis-à-vis the life cycle stage Events Traditional Modes of 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
  47. 47. 1. Measuring Reach Reach is of two types – external and actual, since events require massive external publicity, press, radio, television and other media are needed to ensure that the event is noticed and the benefit of reach is provided to the client. External reach can be measured by using the circulation figures of newspapers and promotion on television and radio. The DART & TRP ratings that rate the popularity of programs on air and around which the promotion is slotted. Measurement of external reach should be tempered with the timings of the promotions as effectiveness of recall and action initiated among the target audience is highly dependent on this important variable. A ratio of the external reach to the actual event reach is a very tangible and useful measurement criteria. Ideally, External Reach =1 Actual Reach The ideal situation in real life is very rare since the external reach gets drastically reduced in terms of reaching out to the target audience and is therefore impractical in most cases. This is because the target audience is derived from the target population which is invariably very large. It is impractical to assume that all the constituents of the target population can make it to the event. The above ratio is usually found to be greater than 1 in practice. External Reach >1 Actual 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
  48. 48. The no. of direct and indirect interaction points that have been planned and arranged for an event provide the first important measurement tool. The greater the no. of interaction points the better for the client.  No. of interactions The opportunity for interaction between the client and the audience before, during and after the event is also a very tangible measurement criterion. The greater the opportunity for increasing the no. of interaction, the better for the client.  Quality of interactions One-way or two-way communication during interaction has a profound impact on the quality of interaction that takes place. The quality of interaction is perceived as good when there is an avenue for two-way interaction  Time duration of interaction Every event has a limited time period within which both benefits the other issues such as controversies are effective. The amount of time that is available for interaction is very important in that the greater the duration of the interaction, more are the chances that there are some meaningful and decisive interaction between the client and the audience.Important Points To Consider When Evaluating Event 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
  49. 49. The most common criteria for a goal to be valid is that it has a time limit, is challenging, measurable, realistic, result oriented, clear and that it could be followed. If the goal is challenging, it is more interesting to try to reach it. If it is too, simple it is not inspiring to work for, but at the same time it has to be realistic. Time limit and measurable goals give a possibility to do a qualitative study. It is important that they are clear so that everyone understands them and that they can easily be followed by developing a strategy for how to 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
  50. 50. Marketing can be seen as a value community. In regards to Maslow’s thoughts,humans have needs that need to be satisfied. The Value community creates groups,where three concepts for group development need to be filled in order to create 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
  51. 51. 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
  52. 52. 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
  53. 53. characterized by a positive attitude towards the brand, and over time continued purchase of the same brand. A company seeks high brand loyalty because it creates stability and provides an opportunity to gain high market share and profit. The development of brand loyalty can be seen as a three-step model. The first step is to create an interest for the product in the consumer. When time has past, the consumers will simplify their buying detour through the product and the connection between the brand and the target audience is strengthened. The third step is where brand recognition is created, which is important for creating the long-term brand loyalty.Events Less Complex To 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
  54. 54. 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
  55. 55. 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
  56. 56. 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
  57. 57. 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
  58. 58.  Attitude or image change  Message impact  New product consideration  Audience profile Booth Exit Interviews To measure the immediate effectiveness of the booth and attendee experience there, an exit interview can be helpful, especially for exhibitors using a sizable booth footprint. An interviewer intercepts visitors on their way out of the booth, and requests that they answer some quick questions. Exit interviews can explore such areas as:  What prompted you to visit the booth?  Were you treated well by the staff?  Did someone approach you right away?  How useful was the product demo?  As a result of your visit to the booth, how likely are you to add the company to your short list of considered vendors? One of the big advantages of the exit interview, when done early in the business event, is that it allows mid-course correction of any problems uncovered. Post-Event Surveys Contacting a sample of show attendees to ask questions about their experience is another method of evaluating trade show and corporate event results. Depending on your information needs, you may want to survey the entire attendee population, the people who visited your booth, or the group that participated in a certain activity at the business event. Surveys typically support the following event objectives:  Perform detailed reporting and benchmarking of the attendee profile 58

×