ch10 8/16/04 4:35 PM Page 269 Part Four EVENT MARKETING 1247.ch10 8/16/04 4:35 PM Page 270 Facing Page Innovation and creativity are needed to capture the guests’ imagination as demonstrated by these underwater divers’ promotion of “The Mystic Powers of Atlantis” Incentive Program Event for Viasys Healthcare Inc. at Atlantis, Paradise Island, Bahamas. Produced by Harith Productions Ltd. Photograph courtesy of Harith Productions Ltd.ch10 8/16/04 4:35 PM Page 271 Chapter 10 ADVERTISING, PUBLIC RELATIONS, PROMOTIONS, AND SPONSORSHIP 1247.ch10 8/16/04 4:35 PM Page 272 272 Chapter 10 ADVERTISING, PUBLIC RELATIONS, PROMTIONS, AND SPONSORSHIP IN THIS CHAPTER YOU WILL LEARN HOW TO: ■ Conduct event marketing research ■ Develop an integrated marketing program ■ Use the five P’s of event marketing ■ Incorporate both internal and external marketing programs ■ Develop retail marketing events ■ Promote fairs and festivals ■ Launch new products ■ Develop, design, and execute print, electronic, and other advertising programs ■ Develop comprehensive public relations programs ■ Organize street promotions and creative stunts ■ Develop and manage effective sponsorship programs ■ Create and conduct successful cause/event-related marketing programs ■ Integrate the Internet into the event marketing strategy ■ Comprehensively evaluate event marketing programs and measure return on event (ROE) The international television program Who Wants to Be a Millionaire™ was de- scribed in the media as event television, and the Broadway musical version of Saturday Night Fever was labeled event theater by the Wall Street Journal be- cause the audience is encouraged to dance in the aisles at the conclusion of each show.
It seems that, everywhere you look, someone is marketing events or events are being used to market products and services. The first step in the Event Management process, research, is mirrored in the marketing process. Without valid and reliable research, you may waste scarce time and resources. Therefore, the first step in the event marketing process must be careful, thoughtful, and comprehensive research.
The out- come of this research must result in the identification of measurable goals and objectives for your event marketing campaign or program. A campaign is usually an extended series of marketing activities designed to market an event, cause, product, or service, whereas a program may include many campaigns targeted at a wide variety of different market segments. For example, regional shopping centers design and implement annual marketing programs that may include a separate campaign for each of the four seasons or for specific events such as the expansion of the center or introduction of a new major anchor store. Regardless of whether you are designing a campaign or an entire program of marketing activities, the resources and channels available to you are ex- panding rapidly.
However, with this expansion, there is also greater competi- tion than ever before. This growth and competition is well documented.ch10 8/16/04 4:35 PM Page 273 PRODUCT 273 In 2000, Advertising Age, the weekly tabloid that many in advertising con- sider the bible of their profession, added a feature to its editorial section in addition to the traditional mix of advertising, public relations, and promo- tions. The new section is entitled “Events and Promotions.” According to an editorial in Advertising Age, the editors have determined that events are a crit- ical component of marketing. Traditionally, marketing students have recognized that product, promo- tion, price, public relations, and location, or place, are critical components in the marketing process.
Each of these five P’s of marketing is a catalyst for sales. Although marketing has become more sophisticated in the twenty-first cen- tury, savvy event marketers recognize that, ultimately marketing, is only a three-syllable word for sales. The founder of Parade magazine, Red Motley, once wrote: “Nothing really happens until someone sells something.” According to some marketing ex- perts, the most efficient and cost-effective way to make sales is through events. Whether you are selling a product, service, idea, or cause, an event allows you to use all of the senses to persuade the prospect to make an investment.
The components of product, promotion, price, public relations, and place directly influence the desire and decision to make this investment. However, it is im- portant to remember that a festival, fair, wedding, meeting, exposition, or other event is a legitimate product that also must be developed and sold. PRODUCT Successful salespeople have both expert product knowledge and effective sales skills. Expert product knowledge is essential in today’s competitive en- vironment.
The expertise the salesperson demonstrates regarding the spon- sorship package or other event component will differentiate this person from the competition. More important than sales skills, demonstrated product ex- pertise shows the client that he or she is making a purchase that has added value and helps to develop confidence as well as long-term loyalty. Every event product combines history, quality, and value to produce a unique program. Even new events may draw from the experience or history of the organizers.
This demonstration of consistent capability to produce similar events will influence prospective clients to recognize the overall quality of the event organization. Finally, every event product must convey not only per- ceived value, such as dollar-for-dollar worth, but also added value. The con- cept of added value is perhaps best described with the Cajun word lagniappe. This term literally means “everything one deserves and a little bit more.” The little bit more may mean providing the client with the home telephone num- ber of the key contact person, developing a unique approach to achieving the event objectives, or perhaps simply spending additional time with the client to better understand his or her needs.ch10 8/16/04 4:35 PM Page 274 274 Chapter 10 ADVERTISING, PUBLIC RELATIONS, PROMTIONS, AND SPONSORSHIP PROMOTION You may have the best-quality event product, but unless you have a strategic plan for promoting this product, it will remain the best-kept secret in the world.
Even large, well-known mega-events such as the Super Bowl, Rose Pa- rade, and Olympic Games require well-developed promotion strategies to achieve the success they require. Following is a systematic checklist to assist you with identifying and bud- geting for your event promotion: 1. Identify all event elements that require promotion from the proposal through the final evaluation. Develop strategies for allocating scarce event promotion resources with efficient methods.
Identify promotion partners to share costs. Target your promotion carefully to those market segments that will sup- port your event. Measure and analyze your promotion efforts throughout the campaign to make corrections as required. The promotion strategy you identify for your event requires a careful study of past or comparable efforts, expert guidance from people who have specific ex- pertise in this field, and, most important, benchmarks for specific measure- ment of your individual promotion activities.
There are a variety of ways to measure promotion efforts. First, you may measure awareness by your target market. Anticipation of the event may be tantamount to ultimate participation. Next, you may measure actual atten- dance and the resulting investment.
Finally, you may measure the post-event attitudes of the event promotional activity. Did the promotions you designed persuade the participants or guests to attend the event? Promotion is the engine that drives the awareness of your event. Through- out event history, legendary promoters such as Bill Veck, Joe Engel, and, per- haps most important, P. Barnum realized that you must shamelessly promote your event product to attract the attention of the public.
Veck did this in Major League Baseball by hiring midgets as players. At the time of this stunt, there was no height requirement, and Veck took advantage of this oversight to promote his Chicago team. Engel, a Minor League Baseball promoter in Chattanooga, Tennessee, staged a fake elephant hunt on the base- ball diamond to generate capacity attendance for his losing team. And, of course, P.
Barnum continually amused the public with his legendary promo- tions, such as the smallest man (Tom Thumb) and the biggest mammal (Jumbo). Most event marketers use a variety of media to promote their products. However, it is essential that Event Managers carefully select those media out- lets that will precisely target the market segments that are appropriate for their events. Targeting promotion strategies is essential to ensure the alignment of the event’s attributes with the needs, wants, and desires of potential attendees.ch10 8/16/04 4:35 PM Page 275 PUBLIC RELATTIONS 275 PRICE Market research will help you determine price.
Part of this market research will include conducting a competitive analysis study of other organizations offering similar event products. You may initially believe that your product is uniquely different from every other event. However, when you interview po- tential ticket buyers or guests, you may be surprised to learn that they con- sider your event similar to many others. Therefore, you must carefully list all competing events and the prices being charged to help you determine the ap- propriate price for your event.
Typically, two factors determine price. First, the Event Manager must de- termine the financial philosophy of the event. If the event is a not-for-profit venture, the organization may not be concerned with a large commercial yield from the event. Instead, the philosophical purpose of the event may be to gen- erate overall awareness and support.
However, if the event is a commercial venture, the goal is probably to generate the greatest potential net profit. Once the philosophy is clear, the Event Manager will be able to determine price. The price must reflect the cost of all goods and services required to produce the event, plus a margin of profit or retained earnings. The second factor is the perceived competition from similar events.
If your event ticket costs $100 and does not offer the same perceived value as a sim- ilar event selling for $50, your prospective guests are more likely to select the latter event. Therefore, you must be price-competitive. Becoming price- competitive does not mean lowering your ticket price. Rather, it may require raising the perception of value (as discussed earlier) to justify the slightly higher price.
These two factors—the cost of doing business and the marketplace com- petition—certainly influence price. A third area that may also influence price is the general economic conditions, not only in your area, but also the region, your country, and, increasingly, the world. During times of recession, some events with lower ticket prices will flourish, while other upscale event prod- ucts may not be as successful. Keep a close eye on market economic indica- tors to make certain that your price matches the purchasing power of your tar- get market.
PUBLIC RELATIONS Advertising is what you say about your event, whereas public relations is what others (their perceptions) are saying about your event. Since many events re- quire a second-party endorsement or even review to encourage people to at- tend, public relations is significantly more valuable and effective than tradi- tional advertising.ch10 8/16/04 4:35 PM Page 276 276 Chapter 10 ADVERTISING, PUBLIC RELATIONS, PROMTIONS, AND SPONSORSHIP In the 1930s and 1940s, public relations consisted primarily of press agents who worked diligently to convince the print media to devote editorial space to their clients. With the influence of leaders such as Edward Bernays, the public relations effort soon became more complex and respected. Bernays recognized the psychological factors that govern a person’s decision-making ability.
Therefore, he advocated that public relations professionals first engage in research, including focus groups, to determine the values, attitudes, and lifestyles of their target markets and carefully match their messages to these important factors. Today, in many event marketing campaigns, public relations is at least equal to and, in many cases, even more important than traditional advertis- ing. However, public relations involves much more than merely grinding out a short press release. The effective event public relations campaign will involve research with event consumers as well as the media; the development of collateral materi- als such as media kits, fact sheets, and other tangibles; the organization and implementation of media conferences; the development of a speaker’s bureau; and on-site media relations assistance at the event.