SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN MANAGEMENT SUBMITTED BY: VARUN TANEJA MBA-(2009-2011) ENROLLMENT NO.-A30101909108 INDUSTRY GUIDE FACULTY GUIDE Mr. RAVI RANJAN Mrs.APARAJITA DAS GUPTA Director, GTEM PVT LTD. Faculty AGBS, NOIDA Sant Nagar, Delhi MARKET OPPORTUNITIES FOR EVENT MANAGEMENT COMPANIES 1
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SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN
MANAGEMENT
SUBMITTED BY:VARUN TANEJAMBA-(2009-2011)
ENROLLMENT NO.-A30101909108
INDUSTRY GUIDE FACULTY GUIDE
Mr. RAVI RANJAN Mrs.APARAJITA DAS GUPTA Director, GTEM PVT LTD. Faculty AGBS, NOIDA Sant Nagar, Delhi
AMITY GLOBAL BUSINESS SCHOOL, NOIDAAMITY UNIVERSITY – UTTAR PRADESH
MARKET OPPORTUNITIES FOR EVENT MANAGEMENT COMPANIES
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CERTIFICATE OF ORIGIN
This is to certify that Mr. VARUN TANEJA , a student of post graduate degree in business management , Amity Global Business School, Noida has worked in the ………… under the able guidance & supervision of Mr.RAVI RANJAN, DIRECTOR – GTEM PVT. LTD.The period for which he was on training was for 8 weeks, starting from 1st June 2010 to 31st July 2010. This summer internship report has the requisite standard for the partial fulfillment the post graduate degree in business management. To the best of our knowledge no part of this report has been reproduced from any other report & the contents are based on original research.
Signature Signature: (Faculty guide) (Student)
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ACKNOWLEDGEMENT
I have prepared this project report as a part of the course on Advertising and Marketing. I am grateful to the AGBS to have given me the opportunity to undertake this study. I would like to express my sincere gratitude to my project guide Mr. Ravi Ranjan(Director),Global Touch Event Management Pvt. Ltd. for his invaluable guidance in the preparation of this project study. I am also thankful to Mrs.Aprajita Dasgupta Amist(Faculty, AGBS
NOIDA), my internal faculty guide who helped me as and when required
with her big reservoir of experience and knowledge.
Last but not the least my thanks are due to the respondents who took their
time out to fill up my questionnaire.
PLACE : NOIDA Varun Taneja
Enr no. A30101909108
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DECLARATION
I Varun Taneja, student of AMITY GLOBAL BUSINESS SCHOOL,NOIDA (2009-2011) declare that every part of the project report “Market
Opportunities For Event Management Companies ” that I havesubmitted is original.I was in regular contact with the nominated guide and contacted several
times for discussing the project.
Date of project submission:
Faculty’s Comments:
Signature of Faculty guide
Name:
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S. NO. CONTENT PAGE NO.
1 Executive summary 7
2 Objectives of the study 9
3 Industry profile 10
a.) Introductionb.) Review of literaturec.) Major playersd.) Swot analysis
4 Company profile 25
a.) About GTEM
b.) SWOT analysis
5 Major Learnings 28
6 Event Management as a promotional tool 57
7 Research Methodology 92
8 Analysis and research findings 94
9 Major problems in event management industry 103
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10 Recommendations 106
11 Conclusion 107
12 Bibliography 108
13 Annexure (Questionnaire) 110
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1. Executive summary
The current condition of the event management companies in the city is not very well they are waiting for the response of the people so that in future they can encash it. In fact right now the role of event management companies is being played by either the hotels or the amusement parks or the community centers. In many cases newspapers work in collaboration with private parties to organize some event.
The findings of the project clearly states that the future of event management is very bright in the city although presently its in nascent stage but the people of Delhi have started accepting such events in the main line. Some such events are like theme based marriages and “Ladies Sangeet” in the marriages. Along with this the growing gathering in the fashion shows and musical concerts is also remarkable.
Right now the condition of event management in Delhi is not very good. The response of people has not been that good that it can attract any event management company here as a full fledged service provider, it will take some time to pick up nicely. Currently the main target segment of these partial or complete service providers are the defense class people or the high class people have accepted these concepts much widely then any other community.
It is expected that event management industry will gear up in Delhi in near future. The concept needs to be popularized, by proper media coverage. The existing companies should mould their service according to the taste and preference of the people.
The scope of event management companies in Delhi is not very good. As per our findings and the calculations the results are not very encouraging at present. But the projections help us to draw a conclusion that there is a scope for event management companies in near future.
Event management generally means conceptualizing, meticulous planning, organizing and finally executing an event.
It is a set plan involving networking of a multimedia package, thereby achieving the clients objectives and justifying their needs for associating with events.
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Events can bring community together for purpose of fundraising, change a town or city’s image, expand its trade, stimulate its economy, help companies to market and introduce its product and also for the entertainment of society.Not only do events enhance the quality of our life, they can provide significant economic benefits. Events require a high degree of planning, a range of skills, a lot of energy and funds.
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2.0 OBJECTIVES OF THE STUDY
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.
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3.0Industry profile
INTRODUCTION TO THE PROJECT
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.
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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
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.
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CRITICAL REVIEW OF LITERATURE
EVENT MARKETING SURVEY 2006
– conducted by
Fifth Edition of Global Study Shows Steady March of Events Business at the Dawn
of a New Era
The secret is out. Five years of research has shown that meetings and events can play a
strategic 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 provide
the greatest opportunity to learn about a company’s brand, value proposition and (new)
products/ services. Companies can derive business value from events to strengthen
product or brand awareness; differentiate from the competition; educate or train
employees and ultimately increase sales.
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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 prior year.
2. The proportion of the overall marketing budget dedicated to event marketing decreased
slightly from the prior year.
3. The perceived future importance of event marketing has declined less than 3% from
2005. While these results at first glance could be considered disappointing, none of these
indicators should be taken as a sign of a downward trend within the event marketing
industry. In fact, these are clear signs of an industry that is stabilizing and showing signs
of maturation.
A Watershed Event
While the meeting and events industry may be developing a beachhead within
companies’ marketing mixes, it continues to face increasing scrutiny as it slides under the
CFO’s budgeting microscope. Additionally, CMOs continue to face mounting pressure to
show ever-increasing value and return on their investments.
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Enter the CMO’s white knight in the quest for the enigmatic and much sought after
integrated marketing campaign — the evolution from event marketing to experiential
marketing — an integrated campaign model offering the opportunity for an audience to
“live the brand.” Although it is too soon to measure how transformational the evolution
to experiential marketing will be for the meetings and events industry, high level findings
from the 2006 global research indicate that overall, awareness of and interest in
experiential marketing has the opportunity to bring the meetings and events industry to
new heights.
The Key Take-Away
Event marketing continues to play an important role in the corporate setting but has seen
some minor setbacks in growth patterns from prior years in terms of perceived
importance and value, perhaps due in part to the high visibility gained in years past. As
opposed to potentially being discouraged by these findings, event marketing
professionals should consider these early signs as an insightful call to action to innovate
and create opportunities for even greater ROI. Event marketing professionals must
therefore develop either more focused traditional tactics or adopt new approaches such as
experiential marketing. Between May and June 2006, almost 900 individuals in
marketing management positions from North America, Europe and Asia Pacific in
industries including automotive, high technology, healthcare, and financial were
interviewed via telephone with hopes of bringing clarity to the events component of the
marketing mix as it compares to other elements in a marketer’s arsenal.
The Role of Event Marketing Remains Important In the Marketing Mix
As the world economy continues its 2006 recovery, companies face ever-increasing
financial pressures to generate additional revenues and improve profit margins.
Globalization has created a myriad of new opportunities for companies but has
simultaneously brought with it new challenges in terms of newfound competitors vying
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for the same pool of clients and the inherent need to communicate one cohesive message
to the diversifying marketplace. It is not surprising therefore to see that almost one third
of the marketing professionals surveyed this year stated that their top marketing concern
currently is reaching new customers. Building brand awareness was respondents’ second
most frequent concern, coming in at a distant 13%.
Due to the increased competitive pressures, companies large and small, local and global
must therefore constantly evaluate the mix of marketing tactics to ensure the best possible
approach at reaching both current and potential customers. It is perhaps because of this
need to freshen the marketing mix that we see survey respondents’ state that event
marketing was either a lead tactic or vital component of the marketing plan slightly less
than half the time (49%) — a slight decrease from last year insofar as it was less of a vital
component and taken more under consideration with other mediums. Although the
current marketing mix shows in Chart 2 a slight decline as compared to last year, almost
50% of respondents stated that the future importance of event marketing was either
increasing or increasing strongly. Furthermore, an additional
40% of respondents stated that the future importance would remain constant. This
stability in event marketing’s role is corroborated by the fact that event marketing
represents more than 25% of survey respondents’ overall marketing budget, which is only
slightly less than a one percent reduction from last year’s figure.
Another sign of the evolution of companies’ marketing mix appears in the budget
allocations for events. Much like in 2005, 59% of respondents stated that the majority of
their event marketing budget is currently allocated to trade shows while 35% are spent on
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conferences. 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.
Event Marketing Continues to Deliver ROI
Although the results of this year’s survey suggest that the current role of event marketing
may have slipped slightly in companies’ marketing mix, the data also shows conflicting
information insofar as event marketing remains the marketing element that provides by
far the highest returns on investment.
Chart 3 shows that almost one in four respondents to the 2006 survey believes that event
marketing provides the greatest ROI in Marketing. Although the figure is almost identical
to last year’s estimate (and decreasing over time), it is a statistical bragging right that
event marketing has held for the last three straight years, as well as four of the five years
of this study (see Chart 4).
The most common reasons given for event marketing’s high returns on investment come
from the fact that it provides the greatest opportunity for direct, in-person, face-to-face
contact (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 it
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provides one of the only opportunities to reach a large and engaged audience in one
venue (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 to
provide the greatest ROI due primarily to their ability to attract new customers. When
asked 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 to
provide the greatest ROI.
Measurement Impacts Event Marketing Budgets
Seventy-one percent of respondents to this year’s survey (see Chart 5) cite that they do
engage in some post-event measurement activities. Not only is this a significant increase
from last year’s 60% mark, it is also the highest rate of measurement recorded in the
history of this study. This is a clear sign that event marketing professionals and CMOs
continue to need to demonstrate the ROI that comes from producing successful events as
greater financial scrutiny comes from corporate finance departments.
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The survey data shows that not only has the number of companies who measure increased
considerably from last year, but there has also been a slight increase in the marketing
budget allocated to measurement — up one tick from last year — to 12%. When asked
what key performance indicators (KPI) companies were measuring, over one third of
respondents (36%) cited number of qualified leads, with overall communication
effectiveness and sales increases each receiving 31% of the votes. The most 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 to
demonstrate value, this year’s survey does show one striking benefit of measurement. As
can be seen in Chart 6, companies who do engage in some form of measurement are three
times more likely to see an increase in their budgets than those who do not engage in any
measurement. This data is further proof that tangibly demonstrating the value of an event
marketing program can significantly increase the chances of getting increased funding.
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TRANSITION TO EXPERIENCE MARKETING
As the event marketing industry continues to face mounting pressures from the business
world to demonstrate value, event marketing professionals find themselves in need to
move towards the next evolutionary, if not revolutionary step within the world of events.
CMOs and event marketing professionals are now looking for a solution that can provide
a more complete approach to interacting with customers and prospects. Senior marketing
professionals are looking beyond traditional event marketing tactics for an integrated
campaign that offers the opportunity for an audience to interact with a company’s
product/service and its brand before, during and after event(s) through the combination of
advertising, direct, interactive and traditional event marketing. Over half of survey
respondents (55%) in fact gave this definition to the term “experience marketing.” This
year’s research also shows that 80% of respondents are currently adding experiencing
marketing in some form or another to their marketing mix. Not only have a significant
number of companies tried some experience marketing strategies, but a vast majority also
feels as if there are tangible benefits to the updated approach. A remarkable 87% have
said that they may eventually transition towards experiential marketing, while 74% have
definitively said they will be moving forward with more experiential marketing within
the next twelve months (see Chart 7). The most common reason given by survey
respondents for moving towards experience marketing was that it provides a better
method to convey the persuasive difference between their brand and the competition’s.
The second most frequent reason given was that it provides an opportunity to leverage
marketing spend across all of a company’s marketing disciplines. Although rooted
heavily in event marketing, experience marketing should be considered a hybrid of many
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disparate forms of marketing finally coming together looking to cohesively interact with
the customer. It is as evolutionary as it is revolutionary in as much as it brings new
meaning to the term “integrated marketing campaign.” Experience marketing provides a
unique opportunity to redefine the marketing landscape as well as how companies
interact with customers and prospects. Marketing and event marketing professionals who
can effectively cross this chasm and adapt to this new paradigm have a great opportunity
to become leaders within their organizations.
About This Study
EventView, the annual and first-of-its-kind event marketing trends study for senior
marketing executives, was originated in 2002 by The George P. Johnson Company. The
MPI Foundation has co-sponsored this important research since 2003. Now in its fifth
year, EventView is the number-one published event marketing trends report globally and
the longest-running study for the event marketing industry, providing the insight and
guidance corporations and event marketing professionals within this field need to develop
strategic marketing programs.
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Between May and June 2006, almost 900 individuals in marketing management positions
from North America, Europe and Asia Pacific in industries including automotive, high
technology, healthcare, and financial were interviewed via telephone with hopes of
bringing clarity to the events component of the marketing mix as it compares to other
elements in a marketer’s arsenal. The results of the 2006 survey have a +/− 3% margin of
error.
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MAJOR COMPANIES
1) 360 degrees (Launch events, Conferences & Seminars, Conventions, Trade (B2B) Events , TV Events, Film Entertainment & Award Nights , Press Events , Brand Promotions , Sales Promotions, Consumer Promotions , Retail Promotions , Rural Promotions , Road shows) 2) Percept D Mark(Celebrity management, Stage shows, Fashion shows, Wedding management, Conferences, brand promotion, Product launches, Mrs. India World, Mrs. world pea gent, Golf Event Management. Provides complete movie and entertainment related solutions to film production houses and corporates.) 3) Wizcraft International Entertainment Pvt Ltd(High profile events, entertainment, sports, wedding, Film Awards, Artist Concerts, TV Events, Exhibitions, Productions, Response management, Contact management, Consumer Insight, Retail Visibility, Promotions, Lead Generations etc) 4) DNA Networks Pvt Ltd.(international and domestic concerts, event production, Creative integration of sponsor branding, Production of television specials, Co-ordinate advertising, publicity and public relation activity for events, Design, development and manufacture of quality merchandising) 5) Cineyug Entertainment 6) Cox and King (Meetings, Incentives, Conferences and Exhibitions) 7) Sita Conferences (International Conferences and Exhibitions) 8) E-Factor (weddings, concerts, International Conferences, Seminars, Television Based Events, Exhibitions, special occasions, corporate events, Road Shows)
SWOT Analysis is necessary for the smooth functioning of every business. In the case of this business :
STRENGTH
1. Strong Funding2. Less Investments3. Huge Profit Margin
WEAKNESS
1. Seasonal Parties2. Less Experience in the business
OPPORTUNITIES
1. Change in social environment2. Improving business
THREATS
1. Increasing Competition2. Fights in parties
CRITICAL SUCCESS FACTORS
1. Excellent communication system2. Proper and systematic advertisement3. Good social contacts
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ORGANIZATION PROFILE
Global Touch Event Management Pvt. Ltd.
This is a Delhi based Event Management Company. It was established two years back by Mr.Ravi Ranjan. The size of their events depend upon the customer needs and requirement. This is a five member team.
The events they organize are:
Concerts & Shows
Annual Dance Competition
Fashion Shows
Annual Functions and Cultural Evenings of Schools and Colleges
Celebrity Show
Club Promot
Exhibitions
Night life parties
Recently they have done few events :
“NASHA live in Concert with Ustad Rahet Fateh Ali Khan” at Gymkhana Club Gurgaon.
Fifa Grand Final Live and Party at Kuki !!, g.k. II,New Delhi.
Going to organise Global Deejays Night at Kuki !!,g.k. II,NewDelhi on
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28taugust,2010.
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SWOT ANALYSIS
Strengths :
Sales and profits have grown steadily. Has a good reputation for quality.
Able to react to changing conditions effectively.
Good relationship with clients.
Weaknesses :
Lack of marketing expertise
Less Experience in the business
Opportunities:
New management team, wanting to improve overall organizational effectiveness through organizational development and cultural management programs.
A developing market such as the Internet
Threats:
Price wars with competitors.
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MAJOR LEARNINGS
What is Marketing?
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
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Word of mouth
Hospitality
Advertising
Advertising
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
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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.
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.
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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.
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.
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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.
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
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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.
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.
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.
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5. Proliferation of various media channels, therefore the requirement for intelligent
media buying.
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.
Fig : 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
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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.
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
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
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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.
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REACH LIVE INTERACTION
Right Communication from the client
WITH Live Audience
CREATESDesiredImpact
EVENTS
Fig : Events Definition In-Short
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.
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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.
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-
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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
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
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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
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
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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.
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-
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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.
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
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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
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
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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
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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.
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
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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
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
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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.
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.
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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.”
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.
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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 : 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.
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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.
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
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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.
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.
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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□ 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
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□ 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