Download The process of event marketing Situation analysis

Chapter Five
Event Marketing
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Chapter learning objectives
5.1 Appreciate the universal relevance of marketing and its
application in the event industry
5.2 Understand key marketing concepts including marketing
as a way of thinking, a way of organising, and a set of
techniques
5.3 Appreciate the main benefits to be gained from the
appropriate application of marketing concepts in the
event industry
5.4 Understand the relevance and application of the extended
marketing mix
5.5 Have an awareness of the challenges associated with
event marketing and how those challenges can be
addressed
Copyright © 2011 McGraw-Hill Australia Pty Ltd
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Chapter learning objectives
5.6 Understand the process of event marketing
5.7 Be aware of the marketing frameworks that may be used
as a part of a situation analysis
5.8 Understand the key elements involved in marketing
strategy development
5.9 Be aware of marketing mix decisions and how they are
applied in an event management context
5.10 Appreciate the importance of implementation and
control.
Copyright © 2011 McGraw-Hill Australia Pty Ltd
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Introduction
• Marketing is more than just advertising and personal
selling.
• Involves ‘identifying, anticipating and satisfying
customers’ requirements profitably’.
• Marketing focus starts with customer needs, not the
product.
Copyright © 2011 McGraw-Hill Australia Pty Ltd
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The application of marketing to the
event industry
• Marketing events can be like a matching process.
• Market segmentation – dividing customers according
to a demographic feature.
• Events as services
– Events are generally intangible experiences.
– Different methods for marketing tangible products and
intangible services.
– Main differences involve:
• Intangibility

Simultaneity
• Inseparability

Heterogeneity
• Perishability
Copyright © 2011 McGraw-Hill Australia Pty Ltd
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The application of marketing to the
event industry
• Events as services (continued)
– Quality of services are tested only at time of purchase
– Quality is dependant on event staff
– Expectations must be met
– Events are the ultimate in perishable and intangible
services.
Copyright © 2011 McGraw-Hill Australia Pty Ltd
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Key marketing concepts
• Marketing as a way of thinking
– Marketing is an approach to doing business
– Research can identify customer needs and wants
– Anticipating customer needs is very important
• Marketing as a way of organising
– The marketing concept is a whole of business ideal
– For events, the whole process must be customer focused.
Copyright © 2011 McGraw-Hill Australia Pty Ltd
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Key marketing concepts
• Marketing as a set of techniques
– Used to understand customers and their needs
• Market research
• PEST and SWOT analyses
• Market segmentation
• Identification of target markets
• Positioning the product
• Product development
• Price and ticket program development
• Promotional campaign development
• Evaluation
Copyright © 2011 McGraw-Hill Australia Pty Ltd
PPT slides to accompany Event Management: Theory and Practice 1e by Wrathall and Gee
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The key benefits of marketing
• Adopting a marketing philosophy
– Decision-making framework
• Financial implications
– Proposals for funding
• Sponsorship success
– Provide confidence
• Customer focus
– Attractive to potential customers
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The marketing mix
• The 4 Ps
– Product
• Event itself
• Surrounding elements – service, food, theming
– Price
• Set by several factors
– Place
• Venue
• Includes host community and facilities
– Promotion
• Total marketing communication program
Copyright © 2011 McGraw-Hill Australia Pty Ltd
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The marketing mix
• The extended marketing mix
– More Ps apply to marketing services
• Participation and people
• Process
• Physical evidence
• Packaging and programming
• Positioning
• Power and partnership
• Public
• Managing the marketing mix
– Need to balance each element for maximum effectiveness
Copyright © 2011 McGraw-Hill Australia Pty Ltd
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The challenges of event marketing
• Intangibility
– Tangible items – customer knows what they are getting
– Intangible events – rely on expectation
– Place a strong focus on people and organisational
image
• Can reduce perceived risk and add value
• The people involved can make a difference
– Use physical evidence
• Photos, websites, merchandise
– Use personal sources of information
• People source information from friends – encourage this.
Copyright © 2011 McGraw-Hill Australia Pty Ltd
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The challenges of event marketing
• Simultaneity and inseparability
– Events are performed in real time
– No separation between the event and those who create it
– People have parts to play at all stages
• The pre-purchase stage
• The purchase and pre-event stage
• The staging of the event
• The post-event stage.
Copyright © 2011 McGraw-Hill Australia Pty Ltd
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The process of event marketing
• Situation analysis
– Developing an understanding of customer needs
– Identifying opportunities for meeting those needs
– Identifying market opportunities
– 5 C analysis
• Company
• Competitors
• Customers
• Collaborators
• Climate
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The process of event marketing
• Situation analysis (continued)
– PEST Analysis
• A focus on the political, economic, social and technological
factors in the external environment
• Additional models have been developed to reflect changing
needs
– SLEPT – social, legal, economic, political, technological
– PESTEL – political, economic, social technological,
environmental, legal
– STEEPLED – social technological, economic,
environmental, political, legal, demographic
Copyright © 2011 McGraw-Hill Australia Pty Ltd
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The process of event marketing
• Situation analysis (continued)
– SWOT analysis
• Should be carried out around the objectives of an event:
– Strengths
– Weaknesses
– Opportunities
– Threats
• Matching strategy – strength matches opportunity
• Conversion strategy – focusing on unpopular events.
Copyright © 2011 McGraw-Hill Australia Pty Ltd
PPT slides to accompany Event Management: Theory and Practice 1e by Wrathall and Gee
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The process of event marketing
• Marketing strategy development
– Strategies should maximise ticket sales from target markets
– Allow resources to be utilised most effectively
– Build on information from situation analysis
– Market segmentation
• Targeting specific parts of the market
• Segmentation allows for better use of promotional materials
– Targeting the appropriate market segment
• Tailoring marketing mix to segments most interested
Copyright © 2011 McGraw-Hill Australia Pty Ltd
PPT slides to accompany Event Management: Theory and Practice 1e by Wrathall and Gee
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The process of event marketing
• Marketing strategy development (continued)
– Positioning the product within the target market
• How the event will fulfil customer needs
• Unique nature of the event
• Consider
– location
– attention span
– competitive costs
– program
– Developing a value proposition for the target market
• Customer value proposition – price-based and value-based
• Needs to line up with customer needs for that segment.
Copyright © 2011 McGraw-Hill Australia Pty Ltd
PPT slides to accompany Event Management: Theory and Practice 1e by Wrathall and Gee
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The process of event marketing
• Marketing mix decisions
– Product
– Price
– Place
– Promotion
– Participation and people
– Process
– Physical evidence
– Packaging and programming
– Positioning
– Power and partnership
– Public
Copyright © 2011 McGraw-Hill Australia Pty Ltd
PPT slides to accompany Event Management: Theory and Practice 1e by Wrathall and Gee
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The process of event marketing
• Implementation and control
– While each stage of the event is implemented it needs to be
closely monitored
– Gaps may be identified between planned and actual results
– Control measures may then be required.
Copyright © 2011 McGraw-Hill Australia Pty Ltd
PPT slides to accompany Event Management: Theory and Practice 1e by Wrathall and Gee
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Chapter summary
• A marketing focus starts with the customer’s needs.
• Events are services and face the challenge of
marketing an intangible experience.
• The extended marketing mix of 11 Ps is relevant to
marketing intangible services.
• Following the sequential marketing process will
allow event managers to get to know their target
markets and the event.
• This process should then result in an integrated and
targeted marketing campaign.
Copyright © 2011 McGraw-Hill Australia Pty Ltd
PPT slides to accompany Event Management: Theory and Practice 1e by Wrathall and Gee
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