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The Impact of Relationship Marketing Strategy on Host Community through Special Events and Festivals Razaq Raj and Sai Suman.Yerrapatruni UK Centre for.

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Presentation on theme: "The Impact of Relationship Marketing Strategy on Host Community through Special Events and Festivals Razaq Raj and Sai Suman.Yerrapatruni UK Centre for."— Presentation transcript:

1 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

2 Main Aims of the Paper Explore the role of relationship marketing within special events Explore the role of relationship marketing within special events Examine role of Festivals in the Events Companies. Examine role of Festivals in the Events Companies. Mini case studies has been used to offer discussion points on the hosting of outdoor events. Mini case studies has been used to offer discussion points on the hosting of outdoor events.

3 Definitions of Relationship marketing The concept of marketing mix paradigm was introduced around 40 years ago. 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. Today it started to loose its importance as markets tend to change and new approaches and trends are adopted in the markets.

4 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 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

5 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. 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.

6 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). The term special events can be categorized from western music concerts to devout religious festivals, glitzy sports contests to natural phenomena (Mintel, 2005).

7 Special Events Sector The term ‘Special Events’ is used to describe events that are first-class or extraordinary in terms of the widespread public recognition they receive. 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 enrich the quality of life for local people and attract tourists from outside the area on account of their uniqueness.

8 Special Events Sector Special events sometimes become synonymous with and dependent on the place where they are held. 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. The primary goal of special events is to develop recognition for the local community and festival organisers.

9 Special Events Sector The host community benefits from special events both socially and economically. The host community benefits from special events both socially and economically. Special events are also typically dependant on the large outlay of public monies. Special events are also typically dependant on the large outlay of public monies.

10 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. 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.

11 The Impact of Tourism on Host Community

12 Reason for staging Festivals Generic reasons why nonprofit and government entities stage festivals: Recreation/socialization Recreation/socialization Culture/education Culture/education Tourism Tourism Internal revenue generation Internal revenue generation Natural resources Natural resources Agriculture Agriculture External revenue generation External revenue generation Community pride/spirit. Community pride/spirit.

13 Methodology The sample was selected by the interviews methods. 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, The research was conducted by three approaches. It was broken down into three sections to reflect the three areas, - background information of the organisation. organisation. - why the company wants to build relationships with its customers or stakeholders. with its customers or stakeholders. - completely focussed on the events Industry

14 Findings, Analysis and Discussion 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. 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 A key and a common factor for the developing relationship are the personal or social relationships with the individual or a company

15 Average number of customers per year

16 Contribution of highest earnings for the companies annual income

17 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. 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.

18 Internal Marketing Four companies does not involve all the staff in developing relationships they work with other internal departments when building their relationships 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. 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.

19 Communication Process All companies do a planned communication process to maintain and develop relationships with their customer/participants. 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. 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 There is evidence of increase use of technology in developing relationships with the customers/participants

20 Conclusion Business-to-business marketing firms create what might be called a collaborative advantage by demonstrating special skills in managing relationships with key customers. 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. 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. 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.

21 Let’s move along to a new topic. "20 years from now the things in life you'll regret are those you didn't do!" Benjamin Franklin


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