Download The impact of Relationship Marketing Strategy

The Impact of Relationship
Marketing Strategy on Host
Community through Special Events
and Festivals
Razaq Raj
and Sai Suman.Yerrapatruni
UK Centre for Events Management
Leeds Metropolitan University
Main Aims of the Paper
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Explore the role of relationship
marketing within special events
Examine role of Festivals in the
Events Companies.
Mini case studies has been used to
offer discussion points on the hosting
of outdoor events.
Definitions of Relationship marketing


The concept of marketing mix paradigm
was introduced around 40 years ago.
Today it started to loose its importance as
markets tend to change and new
approaches and trends are adopted in the
markets.
Definitions of Relationship marketing

Gummesson (1990) defined relationship
marketing as ‘Marketing can be viewed as
the building, maintenance, and liquidation
of networks and interactive relationships
between the suppliers and customers,
often with long-term implications
Definitions of Relationship marketing

Gronroos (1996) provided his definition of
relationship marketing, He defined
‘relationship marketing is to establish,
nurture and enhance relationships with
customers and other partners, at a profit,
so that the objective of the partners
involved are met.
Special Events Sector

The term special events can be
categorized from western music concerts
to devout religious festivals, glitzy sports
contests to natural phenomena (Mintel,
2005).
Special Events Sector
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The term ‘Special Events’ is used to
describe events that are first-class or
extraordinary in terms of the widespread
public recognition they receive.
Special events enrich the quality of life for
local people and attract tourists from
outside the area on account of their
uniqueness.
Special Events Sector
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Special events sometimes become
synonymous with and dependent on the
place where they are held.
The primary goal of special events is to
develop recognition for the local
community and festival organisers.
Special Events Sector
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The host community benefits from special
events both socially and economically.
Special events are also typically dependant
on the large outlay of public monies.
Hosts' Perceptions of Events

Wicks (1995) found that business owners
and managers felt it was most important
that the production of the event brought
the community together generated an
economic benefit to businesses, and
promoted a Positive image for the host
town.
The Impact of Tourism on Host Community
Reason for staging Festivals
Generic reasons why nonprofit and
government entities stage festivals:
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Recreation/socialization
Culture/education
Tourism
Internal revenue generation
Natural resources
Agriculture
External revenue generation
Community pride/spirit.
Methodology


The sample was selected by the interviews
methods.
The research was conducted by three
approaches. It was broken down into three
sections to reflect the three areas,
- background information of the
organisation .
- why the company wants to build relationships
with its customers or stakeholders.
- completely focussed on the events Industry
Findings, Analysis and
Discussion


The main reason for these companies to
develop long-term relationships was
financial which a common thing was also
across their company objectives.
A key and a common factor for the
developing relationship are the personal or
social relationships with the individual or a
company
Average number of customers per
year
100
90
80
70
60
Series1
50
40
30
20
10
0
360
Wiz
DNA
Encore
ESP
Rainbow
Contribution of highest earnings for
the companies annual income
30%
25%
20%
15%
Series1
10%
5%
0%
360
Wiz
DNA
Encore
ESP
Rainbow
Internal Marketing

The two companies which are smaller
compared to the others in the case studies
interviewed, ESP (Entertainment Solution
Provider) and Rainbow events, were the
only ones to involve all the staff in their
relationship development process.
Internal Marketing
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Four companies does not involve all the
staff in developing relationships they work
with other internal departments when
building their relationships
They do not want all of their staff to
develop relationships if they do so then
the costs will increase which the
companies are not ready to bear them.
Communication Process
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All companies do a planned communication
process to maintain and develop relationships
with their customer/participants.
Have limited levels of interaction with the
customers of the organisations.
There is evidence of increase use of technology
in developing relationships with the
customers/participants
Conclusion
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Business-to-business marketing firms create what might
be called a collaborative advantage by demonstrating
special skills in managing relationships with key
customers.
By drawing on both special events and literature, it was
identified that special events have a very important role
to play in all the stages of relationship development.
The case study approach helped to exploratory study
into the way in which special events companies try to
build and develop long-term relationships through their
events.
"20 years from now the things in
life you'll regret are those you
didn't do!"
Benjamin Franklin
Let’s move
along to a
new topic.