Marketing Analysis of Events By: Zhou Chunlin School of Tourism, Conference and Exhibitions Henan University of Economics and Law

Learning Objectives Sponsorship of Events Identify potential sponsors Prepare sponsorship proposals Manage the ongoing relationship with sponsors Budgeting of events as HR contexts of eventsLegal considerations

What is Marketing? The management process responsible for identifying, anticipating and satisfying customer requirements profitably. --CIM Social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. -- Kotler, et al Needs & Wants of Customers Valuables: Product, Service, Experience Communications! (Understanding)

MANAGING STRATEGICALLY & COMPETITIVE ADVANTAGE Comparison of I/O, Resource-Based, & Guerilla Views of Competitive Advantage I/O ViewResource-Based ViewGuerilla View CompetitivePositioningPossessing uniqueTemporary Advantagein industryorganizational assets DeterminantsCharacteristicsType, amount,Ability to change and ofof industry;and nature ofradically surprise Profitabilityfirm’s positionfirm’s resourcescompetitors with within industrystrategic actions Focus of AnalysisExternalInternalExternal and internal MajorCompetitionResources—Continual, radical, and Concerncompetencies chaotic conditions StrategicChoosing DevelopingRapidly and repeatedly Choicesattractive unique resourcesdisrupting current situation industry and capabilitiesand surprising competitors Positioning in industry Characteristics of industry; firm’s position within industry External Competition Choosing attractive industry Possessing unique organizational assets Type, amount, and nature of firm’s resources Internal Resources— competencies Developing unique resources and capabilities Temporary Ability to change and radically surprise competitors with strategic actions External and internal Continual, radical, and chaotic conditions Rapidly and repeatedly disrupting current situation and surprising competitors

E XTERNAL A NALYSIS An Organization’s External Environment Organization Specific Environment Industry-Competitors Substitute Products Bargaining Power of Suppliers Bargaining Power of Buyers Potential Entrants Current Rivalry General Environment Technological Political-Legal Sociocultural Demographic Economic

A Quick Review of Organizational Resources The Strategic Role of Organizational Resources And Organizational Capabilities Organizational Resources Financial assets Physical assets Human resources Intangible assets Structural-cultural assets Organizational Capabilities Organizational processes and routines Accumulated knowledge Actual work activities Core Competencies Distinctive Organizational Capabilities Competitive Advantage Performance Results

From Capabilities to Distinctive Capabilities & Core Competencies Organizational Capabilities Organizational Capabilities Org. capabilities come first Fundamental building block for developing core competencies Every organization has processes and routines to get the work done Core Competencies Core Competencies Not a source of competitive advantage Develop distinctive organizational capabilities Improve and enhance organizational capabilities Fundamental skills and capabilities (internal) Exploitable by organization Major value-creating skills and capabilities Distinctive Organizational Capabilities Distinctive Organizational Capabilities Special and unique capabilities Distinguish from competitors (external) Sustainable competitive advantage Outperform competition

SWOT Matrix  Strengths-Opportunities (SO)  Weaknesses-Opportunities (WO)  Strengths-Threats (ST)  Weaknesses-Threats (WT) Four Types of Strategies

SO Strategies Use a firm’s internal strengths to take advantage of external opportunities SO Strategies Strengths Weaknesses Opportunities Threats SWOT

WO Strategies Improving internal weaknesses by taking advantage of external opportunities WO Strategies Strengths Weaknesses Opportunities Threats SWOT

ST Strategies Use a firm’s strengths to avoid or reduce the impact of external threats ST Strategies Strengths Weaknesses Opportunities Threats SWOT

WT Strategies Defensive tactics aimed at reducing internal weaknesses & avoiding environmental threats WT Strategies Strengths Weaknesses Opportunities Threats SWOT

SWOT Matrix Developing the SWOT  List firm’s key internal Strengths  List firm’s key internal Weaknesses  List firm’s key external Opportunities  List firm’s key external Threats

SWOT Matrix Leave Blank Strengths – S List Strengths Weaknesses – W List Weaknesses Opportunities – O List Opportunities SO Strategies Use strengths to take advantage of opportunities WO Strategies Overcoming weaknesses by taking advantage of opportunities Threats – T List Threats ST Strategies Use strengths to avoid threats WT Strategies Minimize weaknesses and avoid threats

Develop a new employee benefits package = Strong union activity (threat) + Poor employee morale (weakness) Develop new products for older adults = Decreasing numbers of young adults (threat) +Strong R&D (strength) Pursue horizontal integration by buying competitor's facilities = Exit of two major foreign competitors from the industry (opportunity) + Insufficient capacity (weakness) Acquire Cellfone, Inc.= 20% annual growth in the cell phone industry (opportunity) + Excess working capacity (strength) Key Internal FactorKey External FactorResultant Strategy Matching Key Factors to Formulate Alternative Strategies

Limitations with SWOT Matrix Does not show how to achieve a competitive advantage Provides a static assessment in time May lead the firm to overemphasize a single internal or external factor in formulating strategies

Questions