Event Marketing

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Chapter Five

• Event Marketing

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Chapter learning objectives

• 5.1 Appreciate the universal relevance of
  marketing and its application in the event
  industry
• 5.2 Understand key marketing concepts including
  marketing as a way of thinking, a way of
  organising, and a set of techniques
• 5.3 Appreciate the main benefits to be gained
  from the appropriate application of marketing
  concepts in the event industry
• 5.4 Understand the relevance and application of
  the extended marketing mix
• 5.5 Have an awareness of the challenges
  associated with event marketing and how those
  challenges can be addressed

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Chapter learning objectives

• 5.6 Understand the approaches and techniques
  aimed at enhancing levels of customer service.
• 5.7 Understand the process of event marketing
• 5.8 Be aware of the marketing frameworks that may
  be used as a part of a situation analysis
• 5.9 Understand the key elements involved in
  marketing strategy development
• 5.10 Be aware of marketing mix decisions and how
  they are applied in an event management context
• 5.11 Appreciate the importance of implementation
  and control.

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Units of Competence and Elements

• SITXCCS501 Manage quality customer service
• Develop quality customer service practices
• Manage the delivery of quality service
• Monitor and adjust customer service
• SITXMPR404 Coordinate marketing activities
• Plan and organise marketing activities
• Undertake a general public relations role
• Review and report on marketing activities
• SITXMPR502 Develop and implement marketing
  strategies
• Collect and analyse information on the internal
  business environment
• Collect and analyse information on the external
  business environment
• Develop marketing strategies

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Units of Competence and Elements

• 4. Prepare marketing plan
• 5. Implement and monitor marketing activities
• Conduct ongoing evaluation
• BSBMKG401B Profile the market
• Segment the market
• Identify the target market
• Profile the target audience
• Develop a positioning strategy
• BSBMKG607B Manage market research
• Prepare market research plans for implementation
• Engage external consultants or service providers
• Manage market research activity
• Evaluate research processes and findings

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Introduction

• Marketing is more than just advertising and
  personal selling.
• Involves identifying, anticipating and
  satisfying customers requirements profitably.
• Marketing focus starts with customer needs, not
  the product.

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The marketing challenge

• The basic challenge that marketers face is
  finding creative and innovative ways of
• recognising and understanding customer needs
• satisfying customer needs
• in a competitive and commercially viable manner.
  
• Adopting a marketing focus means that the needs
  and wants of the customer come first.

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The application of marketing to the event industry

• Marketing events can be like a matching process.
• It generally involves the segmentation of
  markets, that is, dividing customers into various
  groups based on age, income, special interest, or
  some other characteristics.
• Segmentation is based on detailed market research
  and it allows event marketers to identify a
  target audience.
• Once identified, it is the needs of this target
  audience that drive the marketing process.

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The application of marketing to the event industry

• Events are services or perhaps more precisely,
  service experiences.
• They generally provide customers with an
  intangible experience.
• Eg. the excitement of a Grand Prix
• the amusement and enjoyment of a comedy festival
• a community festival that engages the interest of
  visitors in some way.

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Events as services

• It is important to distinguish between the
  marketing of products and services. They can be
  distinguished in terms of
• Intangibility
• Simultaneity
• Inseparability
• Heterogeneity
• Perishability

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Events as services

• Events are perhaps the ultimate in terms of
  intangibility and perishability.
• Performances, shows, festivals or contests cant
  be stored and cant be tested for quality
  beforehand.
• Event success depends critically on the skills,
  attitudes and expertise of human resources.
• Success also depends on the appropriate
  application of marketing principles and concepts.

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The importance of human resources

• The quality of products can be improved, worked
  on and tested well before a customer ever sees or
  buys them. On the other hand, the quality of a
  service is only ever tested at the so-called
  moment of truth when a customer actually
  consumes it.
• The staging of an event represents the
• ultimate moment of truth.
• Event quality depends critically on the ability
  of key events people to respond in the right way
  at the right time.

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Key marketing concepts

• Marketing as a way of thinking
• applying the marketing concept implies a 100
  focus on what customers want and expect from an
  event.
• questions about event design should focus on
  audience impact rather than what is easiest, what
  we are currently best at doing, and so on.
• all aspects of staging the event should focus on
  audience engagement, audience involvement,
  audience impact and ultimately, audience
  satisfaction.

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Key marketing concepts

• Marketing as a way of organising
• from the development of an event concept through
  to staging of the event and event shutdown,
  customer wants, needs and interests must be
  paramount
• this involves integrating all aspects of the
  organisation with the customer in mind
• the quality of the event needs to be measured
  from a customer perspective
• success also needs to be measured and thought of
  in terms of customer satisfaction, customer
  reactions and customer feedback.

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Key marketing concepts

• Marketing as a set of techniques
• Used to understand customers and their needs
• Market research
• 5 C, PEST and SWOT analyses
• Market segmentation
• Identification of target markets
• Positioning the product
• Product development
• Price and ticket program development
• Promotional campaign development
• Evaluation

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The key benefits of marketing

• Adopting a marketing philosophy
• Decision-making framework
• Financial implications
• Proposals for funding
• Sponsorship success
• Provide confidence
• Customer focus
• Attractive to potential customers

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The marketing mix

• The 4 Ps
• Product
• Event itself
• Surrounding elements service, food, theming
• Price
• Set by several factors
• Place
• Venue
• Includes host community and facilities
• Promotion
• Total marketing communication program

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The marketing mix

• The extended marketing mix
• More Ps apply to marketing services
• Participation and people
• Process
• Physical evidence
• Packaging and programming
• Positioning
• Power and partnership
• Public
• Managing the marketing mix
• Need to balance each element for maximum
  effectiveness

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The challenges of event marketing

• Intangibility
• Tangible items customer knows what they are
  getting
• Intangible events rely on expectation
• Place a strong focus on people and organisational
  image
• Can reduce perceived risk and add value
• The people involved can make a difference
• Use physical evidence
• Photos, websites, merchandise
• Use personal sources of information
• People source information from friends
  encourage this.

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The challenges of event marketing

• Simultaneity and inseparability
• Events are performed in real time
• No separation between the event and those who
  create it
• People have parts to play at all stages
• The pre-purchase stage
• The purchase and pre-event stage
• The staging of the event
• The post-event stage.

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Enhancing customer service

• In the current competitive environment,
  advantages gained from lower price, higher
  quality, and even better promotion, can be
  quickly copied and eroded.
• This dilemma can be addressed by offering
  exceptional customer service.
• Rather than treating customer service as an
  additional service it needs to be treated as a
  strategic initiative.
• Hence, rather than an emphasis on price, product,
  place or promotion, the focus is on the client
  experience.

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Enhancing customer service

• Exceptional customer service involves
• Creating an organisational culture which
  emphasises the importance of every customer
  contact
• Continuously improving customer service by
  listening to, and acting on, customer feedback
• Maintaining a positive approach to customers as
  well as professional and courteous
  communications.
• Always delivering what is promised and, in fact,
  seeking to give customers more than they expect
• Under promise and over deliver

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The process of event marketing

• Situation analysis
• Developing an understanding of customer needs
• Identifying opportunities for meeting those needs
• Identifying market opportunities
• 5 C analysis
• Company
• Competitors
• Customers
• Collaborators
• Climate

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The process of event marketing

• Situation analysis (continued)
• PEST Analysis
• A focus on the political, economic, social and
  technological factors in the external environment
• Additional models have been developed to reflect
  changing needs
• SLEPT social, legal, economic, political,
  technological
• PESTEL political, economic, social
  technological, environmental, legal
• STEEPLED social technological, economic,
  environmental, political, legal, demographic

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The process of event marketing

• Situation analysis (continued)
• SWOT analysis
• Should be carried out around the objectives of an
  event
• Strengths
• Weaknesses
• Opportunities
• Threats
• Matching strategy strength matches opportunity
• Conversion strategy focusing on unpopular
  events.

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The process of event marketing

• Marketing strategy development
• Strategies should maximise ticket sales from
  target markets
• Allow resources to be utilised most effectively
• Build on information from situation analysis
• Market segmentation
• Targeting specific parts of the market
• Segmentation allows for better use of promotional
  materials
• Targeting the appropriate market segment
• Tailoring marketing mix to segments most
  interested

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The process of event marketing

• Marketing strategy development (continued)
• Positioning the product within the target market
• How the event will fulfil customer needs
• Unique nature of the event
• Consider
• location
• attention span
• competitive costs
• program
• Developing a value proposition for the target
  market
• Customer value proposition price-based and
  value-based
• Needs to line up with customer needs for that
  segment.

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The process of event marketing

• Marketing mix decisions
• Product
• Price
• Place
• Promotion
• Participation and people
• Process
• Physical evidence
• Packaging and programming
• Positioning
• Power and partnership
• Public

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The process of event marketing

• Implementation and control
• While each stage of the event is implemented it
  needs to be closely monitored
• Gaps may be identified between planned and actual
  results
• Control measures may then be required.

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Chapter summary

• A marketing focus starts with the customers
  needs.
• Events are services and face the challenge of
  marketing an intangible experience.
• The extended marketing mix of 11 Ps is relevant
  to marketing intangible services.
• Following the sequential marketing process will
  allow event managers to get to know their target
  markets and the event.
• This process should then result in an integrated
  and targeted marketing campaign.