Table of Content 1. 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 28 2. 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 39 1
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Table of Content
1. 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 28
2. 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 39
3. 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
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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 76
5. ANALYSIS AND RESEARCH FINDINGS 78
5.1 PRIMARY DATA ANALYSIS 78
5.2 INTERVIEWS AND DETAILED DISCUSSIONS 87
6. RECOMMENDATIONS 90
7. CONCLUSION 91
8. BIBLIOGRAPHY 92
9. ANNEXURE 94
9.1 QUESTIONNAIRE 94
9.2 KEYS TO SUCCESFULL EVENT MARKETING 95
9.3 SPONSORSHIP CHECKLIST 97
9.4 CASE STUDIES 98
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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. Though
relatively small compared to the major components of the marketing communications
mix-advertising, sales promotions and P-O-P communications-expenditures on event
sponsorship 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 spent
on sponsoring entertainment tours or festival and fairs. Thousands of companies invest in
some form of event sponsorship. Defined, event marketing is a form of brand promotion
that ties a brand to a meaningful athletic, entertainment, cultural, social or other type of
high-interest public activity. Event marketing is distinct from advertising, sales
promotion, point-of-purchase merchandising, or public relations, but it generally
incorporates elements from all of these promotional tools. Event promotions have an
opportunity to achieve success because, unlike other forms of marketing
communications, events reach people when they are receptive to marketing messages and
capture people in a relaxed atmosphere.
Event marketing is growing rapidly because it provides companies alternatives to the
cluttered mass media, an ability to segment on a local or regional basis, and opportunities
for reaching narrow lifestyle groups whose consumption behavior can be linked with the
local event. MasterCard invested an estimated $25 million in sponsoring the nine-city
World Cup soccer championship in the United States in 1994 and will likely sponsor
other big events in many countries as well.
Olympics and its renowned five rings are “the world’s most effective property” in terms
of marketing tools. The Olympics sell sponsorship on a local and global basis, and every
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couple of year’s corporation’s line up to pay as much as $50 million to be the lord of the
rings. The Atlanta games in 1996 have a reported $3 billion in the bank as a result of
negotiating sponsorship, broadcast, and licensee fees.
The Olympics represents the creme de la creeme of event marketing and corporate
sponsorship. Event marketing is a lucrative game of “what’s in a name”, as consumers
purchase tickets and expose themselves to everything. The world of event marketing is a
fast growing, high profile industry worth over $20 billion annually, and one of the most
successful marketing strategies.
Event marketing integrates the corporate sponsorship of an event with a whole range of
marketing elements such as advertising, sales promotion, and public relations.
Corporations both large and small have grown this industry at a rate of 17 percent per
year, and they have achieved a high level of success.
1.1 CONCEPTUAL FRAMEWORK
What is Marketing?
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Marketing can be defined as a process by which individuals and groups obtain what they
want through creating, offering and exchanging products of value with others. All sport
and recreation organizations undertake marketing, although they are often unaware that
they are actually doing so. Listing in the yellow pages, telephone directory, placing
information in the local newspaper, offering a discount and special offers etc. are all
forms of marketing.
Marketing Tools
The “marketing mix” or marketing tools an organization can use can be classified into
four categories:
Product
Price
Place
Promotion
Tools of Promotion
Advertising
Public Relations
Direct marketing
Word of mouth
Hospitality
Advertising
Advertising
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It is the controlled method of communicating the message. The event manager can
manipulate 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,
Innovative
It can be done by the event manager or, if the event and promotional campaign is too big,
by an appointed advertising agency.
Public Relations
Often it is part of the event manager's job to gain maximum exposure for the event. PR is
different from advertising in that it is not self praise but carries the strength of
disinterested credibility. It communicates a more complex message than advertising. It is
free but the event manager looses control over the result. It can be publicity can be
positive or negative. To this end it is important that the event manager maintains control
over as much of the public relations as possible. A thorough knowledge of the media's
requirements 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 PR
strategy as part of the event risk management. Who will make public statements to the
press when there is an emergency? The PR campaign is a plan to gain maximum positive
publicity 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.
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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, the
journalist, 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 critical
path is ascertained to ensure continual and growing interest in the event. Milestones such
as important editorials at critical times can also be established. Specialist magazines and
newsletters with their highly targeted audience such as in-flight magazines, business
magazines, 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 from
organizing a media launch and handing out a press kit to just sending a out a one page
media release to selected media. News releases can be staggered over the planning period
to 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 'boutique'
events that target a specific audience. If the launch takes place in an interesting area, it
can be used as an opportunity to take photos and record interviews. Television requires
special facilities such as access, power and transmission links.
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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 hooks
Although PR involves the event's relation to the public, it is the relations that the event
manager develops with the media that can create interest in the event. It implies
developing a rapport with the media - finding out what they want and how best to supply
it. 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 organization
should consider hiring a PR company.
Direct Marketing
This is delivering the promotional message straight to the interested individual. The basis
of direct marketing is the establishment of a data bank and a strategy to best reach those
individuals. The mail out is the most common traditional method. The database can be
created from previous events through competitions, guest books, inquiries, point of sale
information or just by asking the participants if they would like to receive information on
other similar events.
The effectiveness of direct marketing can be seen in the Port Fairy Festival in southern
Victoria. The Festival has an overall budget of half a million and only spends $6,000 on
their promotion. Each person who comes to the festival is given the first rights to buy a
ticket. The tickets are sold out five months before the festival begins.
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Word of Mouth
Bill Hauritz of the Woodford Festival in Southern Queensland estimates their advertising
budget at less than $1000. The ticket sales generate over one million dollars. Their
promotion strategy is just word of mouth. An annual event, they have concentrated on the
quality of their program and site. This has built up a loyal following.
Hospitality
As part of the promotion tool kit, hospitality can be powerful. The special event or
festival has to promote itself to the sponsors. The diner for sponsors, for example, can be
an inexpensive way to promote the event. A tour of the site can be an effective way of
promoting the event.
Web Sites
The 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 view
of the event. The site can give real information, such as the program and map. Used in
conjunction with a other elements of the PR campaign, a web site can be used to
distribute photos and press releases. It transfers the some of the cost to the customer.
1.2 PROBLEMS ASSOCIATED WITH TRADITIONAL MEDIA
The problems associated with traditional media that has been used for satisfying
marketing 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.
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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 5PS
The five Ps of marketing: product, place, people, price and promotion play an essential
role in Event Marketing. To successfully use Event Marketing the marketer must
understand how Event Marketing fits together with the other parts of the marketing
strategy. Kotler describes the organization’s marketing mix as controllable variables that
are mixed so that the organization gets the response that they are asking for from the
target market. Event Marketing fits under promotion in the marketing mix. Other
marketing tools that goes under this section are advertising, sales promotion, personal
sales, direct sales, public relations, and sponsoring. Event Marketing is not a substitute
for any of the other components- it is a complement. It takes an imaginative mix of all the
communication tools available to extend the impact of the event.
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Fig 1.1: Marketing Mix vs. Event Marketing
If an organization uses Event Marketing, they still need to use the other parts of the
promotion mix before, during, and after the event. An example of this could be how a car
producer can have advertisements to inform about a new car launch, and then use events
to get people to test drive the new car, and then follow up with direct marketing with a
discount coupon. One of the main advantages with Event Marketing compared to the
other channels is that the objective can both be direct sales, and image building,
depending on how it is used.
1.4 EVOLUTION OF EVENT MARKETING
From its origins in event planning, the event marketing industry has seen great growth in
the last five years and has consistently been one of the most effective tools that marketing
professionals have at their disposal in terms of making a tangible connection to current
and potential customers. The increasing competitive pressures brought on by
globalization are forcing business professionals to find new ways to engage customers.
Not surprisingly, savvy event marketing professionals are therefore focusing the majority
of their efforts and budgetary spend on lead generation tactics such as trade shows. While
it is important to garner leads, marketing and specifically event marketing professionals
cannot lose sight of the fact that the sales cycle only begins at lead generation and that
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current and prospective customers must also be nurtured even beyond purchase.
Companies can benefit tremendously from the deeper event marketing touch points that
promote nurturing such as proprietary conferences that provide a controlled environment
for delivering messages and closing business. The nurturing process will allow the
customers to more effectively be funneled into the subsequent stages of the sales cycle
thus creating greater opportunities to develop into repeat customers.
EVENT MARKETING
An event is a live multimedia package with a preconceived concept, customized or
modified to achieve the clients objective of reaching out and suitably influencing the
sharply defined, specially gathered target audience by providing a complete sensual
experience and an avenue for two-way interaction.
Fig: 1.2: Events Definition In-Short
EVENTS
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REACH LIVE INTERACTION
Right Communication
from the client
WITHLive
Audience
CREATESDesiredImpact
This is a diagrammatic representation of the above definition. From the model it is
evident that an event is a package so organized has to provide, reach and live interaction
between the target audience and the client to achieve the desired impact.
Event marketing involves canvassing for clients and arranging feedback for the creative
concepts during and after the concept initiation so as to arrive at a customized package
for the client, keeping the brand values and target audience in mind. Marketing plays an
important role in pricing and negotiations as well as identifying opportunities to define
and retain event properties by gathering marketing intelligence with regard to pricing,
timing etc.
In fact, ideally event marketing involves simultaneous canvassing and studying the brand
prints; understanding what the brand stands for, its positioning and values, identifying the
target audience and liaison with the creative conceptualizes to create an event for a
prefect mesh with the brand’s personality.
PUBLICITY AND PROMOTION
If one knows how to organize an event he should also know how to market it. If there is
something very peculiar or special about the event then that main point has to be
highlighted. A product launch for example requires a sales promotion campaign either
before or after the launch. In that case the product is advertised through banners and
media and even door to door canvassing. Effort is taken to ensure that people sit up and
take notice of the event. Sometimes it could be an event like an award ceremony, which
is to be shown on television and different companies make a beeline for sponsoring their
respective products in the due course of the programme. This is the way publicity and
promotions work.
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1.5 KEY ISSUE FOR EVENT MARKETING
The Human Dimension
A key issue for Event Marketing is having the right human resources communicating the
brand values. The importance of having people working that truly understand the brand
was emphasized by almost all the interviewees. The human dimension of Event
Marketing is what creates the uniqueness to the brand in an event, especially for high-
involvement purchases. In the capital goods industry, where high involvement decisions
are 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, the
consumer is more sensitive and might require more than one-way communication to
convert to another brand. What makes the 3D advertisement more unique is adding a
human dimension, by placing someone who is familiar with and can communicate the
company brand and product.
The Human Context
To add a human dimension might sound an easy solution in order to communicate the
brand identity. However, the human being is rather complex in her way of learning,
interpreting and understanding, since she, is characterized by her context. Everything the
human being experiences will affect the way she interprets situations. Unless she
experiences a situation, which requires new behavior and this behavior is positive, she
will not change her way of acting. However, if she is put in a situation in which she has
to experience a new way of acting and if the experience is interpreted as positive, it is
most likely that she will repeat the behavior in a similar situation.
Mental Models are deeply ingrained assumptions and generalizations that influence how
we understand the world and how we take action. The models keep us in the same pattern
of both thinking and acting. By questioning the Mental Models people see matters from a
different perspective and openness. But in order to be able to question the Mental Models
we 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 identity
program, but in the future the company “brand” will have to encapsulate and
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communicate what an organization is and what it stands for. Therefore the manager must
change the interpretation of the brand. It is as important to win a distinguished and
distinctive place in the perception of a company’s actual and perspective customers, as it
is the same with the employees. Since it is the human dimension that adds the value to a
customer/prospect in an event, all members and functions in the organization must not
only be market orientated in general but also market orientated in combination with the
brand values. It is a common fact that people are different and cannot adjust to all
situations.
Several interviewees supported this when mentioning that there has to be a match
between the individual values and the company values. One crucial factor might be the
individual’s ability to learn, since the individual must not only understand the added
values in the brand identity but also learn to interpret the different situations that might
occur during an event, and combine the behavior to the specific situation. It is the
individual’s perception of the current situation together with how he/she translates the
added values to fit to that specific situation that will help or not help the company.
Integrated Organization
When working with Event Marketing it is important to have a well-integrated
organization, therefore we agree, “that internal marketing builds service quality”. Internal
marketing 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 employees
by training and motivating both consumer contact and support staff as a team. These
definitions might be too static, since they are not teaching the employees; rather they are
persuading how great the business idea of the company is.
By learning how different components in a system interact will increase the
understanding of how the entire system works. Understanding just one component by
itself that is isolated from the others will not be enough. A company itself is a complex
system that is connected by a series of contacts and the components in this system are
highly integrated. Since we are a part of this network, we most often only see specific
components and are puzzled by that we cannot find good solutions to our greatest
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problems. System thinking is a term that contains knowledge and different tools, which
can help us, understand and influence the entire patterns in an organization.
Match The Event To Your Market
Choose the kind of event that appeals to your target market suits your product’s image
and fits your marketing objectives.
If, for example, you are looking for reach and you are selling a low cost product with
wide general appeal, sports sponsorship may be the avenue for you. If your product is an
up 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 a
good corporate citizen, put your sponsorship money into good causes. The Children’s
Hospital, 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 and
arts represents a combined 35 percent of event spending as compared 45 percent for
sports-related events. Event marketing also continues to thrive as traditional advertising
rate 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 to
cross-promote (promote with other companies that have related products or services),
offer sample products (give-always), and build strong relationship with various channels
of distribution, such as retail outlets.
Charities go out of their way to meet both their own fund-raising needs and the profit
requirements of the firms they team up with. It is a commercial relationship and the entire
better for it. Charities need funds, and the businesses need promotions, which show their
worth in extra profit.
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1.6 WHY EVENTS
1. Brand Building
Creating awareness about the launch of new products/brand
Enormous nos. of brand/product are launched every month. Similarly innumerable new
music albums, films, etc get released periodically. This tends to create clutter of product
launches. 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 the
time of launch becomes very important. Meticulously planned events for the launch of a
product/brand seldom fail to catch the attention of the target audience.
Presentation of brand description to highlight the added features of product/services
Sometimes technological changes pave the way for manufactures or service providers to
augment their products. To convey this via traditional modes of communication to the
existing and potential customer base may sometimes be futile. Special service camps of
exhibitions are the perfect events that provide the opportunity for a two way interaction
and error free communication. For Example, IMTEX, the Industrial Machine Tools
Exhibition, is an event used by most machine tool manufactures to explain and highlight
the new and improved features of their product.
Helping in rejuvenating brands during the different stages of product life cycle
The massive amount of money that is spent during the introduction stage of products gets
drastically 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 the
same time maintaining the customer base is felt. And events offer the best medium for
such a focused approach. It helps in generating feelings of brand loyalty in the products’
end user by treating them as royally as possible.
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Helping in communicating the repositioning of brands/products
Events 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 market
Citibank is an elite bank where people do banking with pride. Hence, other premium
brands would like to associate themselves with the same audience so as to benefit from
the rub-off effect. An exhibition-cum-sale event organized exclusively for Citibank credit
card holders, small merchandisers get to do business with the Citibank customers, as well
as build and maintain a premium image for themselves. Here Citibank acts as the event
organizer and small merchandisers acts as participants so that they can associate the
personality of their products with the personality of Citibank customers.
Creating and maintaining brand identity
Australia-based Foster’s Brewing Group’s Asian subsidiary in its plan to launch its bear
brand Foster’s Lager in India choose the game of cricket – in which the Aussies are
known as the best team in the world. By becoming the official sponsors of Australian
cricket team on its India tour, Foster’s hoped to achieve its goal of brand identity building
and positioning itself at the premium end of the market.
Rennie Solomito, Marketing Manager for Coors Light (Beer Company) explains that in
order to increase awareness and personality of the brand, Coors Light tries to find the
distinguishing “look of the leader” in each market. Coors Light select events that are fast
paced and young minded, for example, Coors Light Silver Bullet Concert Series featuring
artists like Bryan Adams and Celin Dion
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2. Image Building
Over and above the brand identity that a company encourages, events such as The Great
Escape conceived by Mahindra and Mahindra, exclusively for the owners of their four
wheelers, 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&M
charts out an off beat route that emphasizes the difference between normal and four
wheel driving, and lets the participant experience the high, one feels when steering and
navigating an Armada.
Coke is associated with Olympics since 1928, the rationale behind this is similar values
and ideologies: International peace, brotherhood, standard of excellence and fun.
Fig 1.3: Constructing the Brand Value Chain
3. Focusing the Target Market
Helping in avoidance of clutter
Even though some events do get congested with too many advertisements, events still
provide and effective means of being spotted. For example, Title sponsorship of a major
event provides the sponsor immense benefit since the sponsors name is mentioned along
with the event like Hero Cup, Femina Miss India, Lux Zee Cine Awards.
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Enabling interactive mode of communication
Events generally provide an opportunity for buyers and sellers to interact. They also
provide 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 will
give it a chance to create an emotional tie with the participants through onsite brand
usage and product presentation.
4. Implementation of Marketing Plan
Enabling authentic test marketing
Events bring the target audience together, thereby creating opportunity for test marketing
of products for authentic feedback. The seller can identify exactly the traits and other
characteristics that are desired. For example, marketing events that the Frito-Lay
Company used before it launched its WOW! brand of potato chips.
Enabling focused sales and communication to a captive audience
In an event the audience is more or less bound to witnessing one particular event. In such
a situation it is very favorable for sellers to put forth their presentations without any
diversions. Such a situation is very valuable given the ineffectiveness of traditional
modes 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 New
York Palladium. Burger King received onsite signage and distribution of bounce back
coupons.
Increasing customer traffic in stores
Events can be conceptualized to increase customer traffic. They can be customized to
make available, concepts ranging from retail store specific events to mega events like one
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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 well
as increasing the awareness among the upper class of the existence of new McD’s outlets.
Enabling sales promotion
Weekly events conducted by Crossword Bookstore helps in generating more revenue
during the weekends as compared to the revenue generated in the weekdays.
Help in relation building and PR activities
Practitioners of this marketing function believe that event marketing campaigns have the
ability to create long lasting relationships with closely targeted market segments.
Relationship building is not restricted to end user customers but also targeted at
enhancing new distributors and sales representative relations.
For example: Techfest organized by IIT Bombay, is an annual technological festival held
by IIT Bombay has helped the sponsors in establishing their relationship with the
Institute 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 foremost
special event in the world.
Motivating the sales team
The need for interaction is not restricted to external customers only and end consumers
are not always the focus of live media exercises. This is especially popular amongst
pharmaceutical and other FMCG companies. For Example, during the cricket world cup
held in England HSBC introduced a unique pattern of motivating the sales force by
awarding them runs instead of the traditional points system. This resulted in conversion
of almost all of its employees into sales person.
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Generate immediate sales
Most events let firms install and exclusive boot and give the permission to exploit the
opportunity to merchandise. Events such as the annual limited period discount sales from
Wrangler and Van Heusen are authentic stock clearance and seconds sales aimed at
generating immediate sales.
Generating instant publicity
An event can be designed to generate instant publicity upon the implementation of
marketing strategy. The e-commerce start up Half.com, which wanted to sell products
such as CDs, Books, Movies and Games over the internet was up against major and
strong competition. The result of this publicity stunt started the ball rolling towards
getting this company purchased by eBay for more than $300 million.
Enabling market database assimilation, maintenance and updating
By keeping track of the reach and its effectiveness as well as interacting with the
audience that actually turns up for the event, event sponsors can assimilate and authentic
database. The database can be used to track various marketing trends. Events can then
help in maintaining and updating the database.
1.7 SPONSORSHIP vs. EVENT MARKETING
However, there are many other marketing tools that can build brand-awareness and create
image and not confuse them with event marketing the most common confusion will be
explained 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, the
organization works with the event as part of the marketing strategy. When sponsoring an
event, the organization buys exposure during the event at different levels of the event
itself. International Events Group (IEG) defines sponsorship this way: “The relationship
between a sponsor and a property in which the sponsor pays a cash or in-kind fee in
return for access to the exploitable commercial potential associated with the property.”
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By using the commercial right, the sponsor could associate the brand and have an
effective selection of the target group to market themselves to. The association makes the
brand synonymous with the sponsored happening, and thereby the sponsoring has been
called association by event. Today sponsorship is one of the world’s fastest growing
forms of marketing and together with Event Marketing they begin to play a more
dominant role in many companies´ marketing budgets.
This model shows one way to look at where traditional sponsoring fits in compared to
Event Marketing.
Fig 1.4: Traditional Marketing vs. Event Marketing
When the organization is sponsoring an event, (upper left corner) there is always a
business agreement between at least two parties, which Event Marketing does not
necessarily have. Usually this is the case when there is a sport competition such as the
Olympics or a World Championship. This kind of sponsoring limits the possibilities for
the organization to market their products since they have no control over the happenings
at the event, etc. There is a concept called the double lever effect, which explains the
relationship between different events. When organizations move to EM (1), EM (2) and
EM (3) the organizations increase their control and also the risk is increased. When the
control is increased, there is also a larger possibility for organizations to use the event
integrated with the other marketing strategies. This fig 1.5 shows how it comes to be a
double lever effect:
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Fig 1.5: Control & risk depending on activity
As we can see, there is a risk in using Event Marketing. There is no possibility to test the
event for the target group, and everything has to work during the event. The risk
associated with the event could be one of the reasons why some organizations choose to
use pre-existing events instead of own events. Preexisting events are events that are
created by someone else for another purpose.
1.8 SIZE OF EVENTS
In terms of size events maybe categorized as follows:
1. Mega Events
The largest events are called mega events, which are generally targeted at international
markets. All such events have a specific yield in terms of increased tourism, media
coverage and economic impact.
Example: The Olympic Games, World Cup Soccer, Super Bowl, Maha Kumbh Mela.
2. Regional Events
Regional events are designed to increase the appeal of a specific tourism destination or
region.
Example: Delhi Half Marathon.
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3. Major Events
These events attract significant local interest and large no of participants as well as
generating significant tourism revenue.
Example: Chinese New Year Celebrations.
4. Minor Events
Most events fall into this category and it is here that most event managers gain their
experience. Annual events fall under this category. In addition to annual events, there are
many one time events including historical, cultural, musical and dance performances.
Meetings, parties, celebrations, conventions, award ceremonies, exhibitions, sporting
events and many other community and social event fit into this category.
Example: Annual Trade Fair organized in Delhi, Chandipur Beach Festival
1.9 TYPES OF EVENTS
1. Sporting Events
Sporting events are held in all towns, cities, states and throughout the nation. They attract
international sports men & women at the highest levels.
2. Entertainment Arts and Culture
Entertainment events are well known for their ability to attract large audience. This
includes musical concerts, celebrity performances, movie releases and mahurats etc
3. Commercial Marketing and Promotional Event
Promotional events tend to have high budgets and high profiles. Most frequently they
include product launches, often for computer hardware and software, perfume, alcohol or
motor cars. The aim of promotional events is generally to differentiate the product from
its competitors and to ensure that it is memorable. The audience for a promotional
activity might be sales staff such as travel agents, who would promote the tour of the
clients or potential purchasers. The media is usually invited to these events so that both
the impact and the risk are high, Success is vital.
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4. Meetings & Exhibitions
The meetings & convention industry is highly competitive. Many conventions attract
thousands of people, whereas some meetings include only a handful of high profile
participants.
5. Festivals
Various forms of festivals are increasingly popular providing a particular region the
opportunity to showcase its product. Wine and food festivals are the most common events
falling under this category. Religious festivals fall into this category as well.
6. Family
Weddings, anniversaries, divorces and funerals all provide opportunities for families
together. 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 of
these changing social trends.
7. Fund Raising
Fairs, which are common in most communities, are frequently run by enthusiastic local
committees. The effort in the organization required for these events are often
underestimated. As their general aim is raising funds, it is important that rides and other
such contracted activities contribute to, rather than reduce, revenue.
1. What are your feelings about a company that creates or sponsors events?□ They are willing to let people try them out□ Support activities that I enjoy□ They understand my interests and needs□ They like to have fun with me□ They want to know more about me
2. Assuming you had a positive experience, would you be more or less inclined to purchase a product or service after having participated in an event?
a) Product/service you have heard but not checked out yet More likely Less likely Neither more nor less
b) Product/service you have never heard of More likely Less likely Neither more nor less
c) Product/service you already use More likely Less likely Neither more nor less
3. What was it that got you to notice or participate in the event?□ It looked like fun□ I recognize the company/brand running the event□ Signs and Banners□ Somebody invited me to participate□ The crowd that was already taking part in the event□ Others
4. Which of the following is your favorite part of marketing events?□ I get to touch and feel a product/services
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□ I get to learn more about a product/services□ I get to ask questions about a product/services□ I get a free sample of a product/services□ I get to have fun by participating in activities
5. Which would most likely cause you to participate in a product demonstration or event?□ The product/services matched my interest□ The product or company was sponsoring an activity I enjoy □ My friend/relative had a positive experience□ The event offered an activity I could participate□ Other
6. How long did you stay at the mobile event?□ 1-15 minutes□ 15-30 minutes□ over 30 minutes
7. Which of the following is true? After leaving the mobile event I understood the company/product…
□ better□ same □ less
8. How soon after attending a company-sponsored event at/near a store did you purchase the product or service being offered?
□ Immediately□ Within a month□ Within a week□ Did not purchase□ Within 3 months□ Within 6 month□ More than 6 months