1. Chapter Five
Event Marketing

2. 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

3. Chapter learning objectives
5.6 Understand the approaches and techniques aimed at enhancing levels of customer service.
5.7 Understand the process of event marketing
5.8 Be aware of the marketing frameworks that may be used as a part of a situation analysis
5.9 Understand the key elements involved in marketing strategy development
5.10 Be aware of marketing mix decisions and how they are applied in an event management context
5.11 Appreciate the importance of implementation and control.

4. Units of Competence and Elements
SITXCCS501 Manage quality customer service
Develop quality customer service practices
Manage the delivery of quality service
Monitor and adjust customer service
SITXMPR404 Coordinate marketing activities
Plan and organise marketing activities
Undertake a general public relations role
Review and report on marketing activities
SITXMPR502 Develop and implement marketing strategies
Collect and analyse information on the internal business environment
Collect and analyse information on the external business environment
Develop marketing strategies

5. Units of Competence and Elements
4. Prepare marketing plan
5. Implement and monitor marketing activities
Conduct ongoing evaluation
BSBMKG401B Profile the market
Segment the market
Identify the target market
Profile the target audience
Develop a positioning strategy
BSBMKG607B Manage market research
Prepare market research plans for implementation
Engage external consultants or service providers
Manage market research activity
Evaluate research processes and findings

6. 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.

7. The marketing challenge
The basic challenge that marketers face is finding creative and innovative ways of:
recognising and understanding customer needs
satisfying customer needs
in a competitive and commercially viable manner.
Adopting a marketing focus means that the needs and wants of the customer come first.

9. The application of marketing to the event industry
Marketing events can be like a matching process.
It generally involves the segmentation of markets, that is, dividing customers into various groups based on age, income, special interest, or some other characteristics.
Segmentation is based on detailed market research and it allows event marketers to identify a target audience.
Once identified, it is the needs of this target audience that drive the marketing process.
Market segmentation – done based on market research. A target market can be identified and marketing is then conducted based on their needs.
Intangibility – can’t be felt or touched.
Simultaneity – the customer gets the service at the time of production.
Inseparability – service provider is not separate from the service.
Heterogeneity – the quality is unique, and unable to be standardised.
Perishability – services can’t be stored before consumption, they only exist at the time of consumption.

10. The application of marketing to the event industry
Events are services or perhaps more precisely, ‘service experiences’.
They generally provide customers with an intangible experience.
Eg. the excitement of a Grand Prix
the amusement and enjoyment of a comedy festival
a community festival that engages the interest of visitors in some way.

11. Events as services
It is important to distinguish between the marketing of products and services. They can be distinguished in terms of:
Intangibility
Simultaneity
Inseparability
Heterogeneity
Perishability

12. Events as services
Events are perhaps the ultimate in terms of intangibility and perishability.
Performances, shows, festivals or contests can’t be stored and can’t be tested for quality beforehand.
Event success depends critically on the skills, attitudes and expertise of human resources.
Success also depends on the appropriate application of marketing principles and concepts.

13. The importance of human resources
The quality of products can be improved, worked on and tested well before a customer ever sees or buys them. On the other hand, the quality of a service is only ever tested at the so-called ‘moment of truth’ when a customer actually consumes it.
The staging of an event represents the
ultimate ‘moment of truth’.
Event quality depends critically on the ability of key events people to respond in the right way at the right time.
Quality of services – are tested at the ‘moment of truth’ – at time of consumption. The quality will only be good if event staff are well trained and react appropriately at that time.
Expectations – marketing creates an expectation in a customer. The needs of those customers must be met or exceeded or damage will be done to future prospects of the event.

14. Key marketing concepts
Marketing as a way of thinking
applying the marketing concept implies a 100% focus on what customers want and expect from an event.
questions about event design should focus on audience impact rather than what is easiest, what we are currently best at doing, and so on.
all aspects of staging the event should focus on audience engagement, audience involvement, audience impact and ultimately, audience satisfaction.
Customer needs – Identifying customer needs and wants is central to production and marketing of products and services. Events can only succeed if they offer something to customers that they need or want.
Marketers need to be innovative in order to create new ways to satisfy customer needs.
Anticipating needs - is becoming increasingly important – not just doing what is expected or easiest, but doing something unexpected and amazing.
Marketing as a way of organising – all departments in a business need to be focused on the marketing concept, in order for the same direction and focus to be applied. This allows for a cohesive message, resulting in customer satisfaction through the meeting of their needs.

15. Key marketing concepts
Marketing as a way of organising
from the development of an event concept through to staging of the event and event shutdown, customer wants, needs and interests must be paramount
this involves integrating all aspects of the organisation with the customer in mind
the quality of the event needs to be measured from a customer perspective
success also needs to be measured and thought of in terms of customer satisfaction, customer reactions and customer feedback.

16. Key marketing concepts
Marketing as a set of techniques
Used to understand customers and their needs
Market research
5 C, PEST and SWOT analyses
Market segmentation
Identification of target markets
Positioning the product
Product development
Price and ticket program development
Promotional campaign development
Evaluation
These techniques should be used in conjunction with one another in order to allow a customer focused/driven marketing strategy.

17. 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
Marketing philosophy – using techniques and thinking from a marketing perspective makes events more likely to be customer focused.
Financial implications – events that are seen to be marketed well have more chance of successfully gaining funding.
Sponsors – will be more confident if they can see that the event is a marketing investment.
Customer focus – if the event is perceived as being able to satisfy needs, more people will choose to attend.

18. The marketing mix The 4 Ps Product Price Place Promotion Event itself
Surrounding elements – service, food, theming
Price
Set by several factors
Place
Venue
Includes host community and facilities
Promotion
Total marketing communication program
Price – costs to the event decides the lower limit for price, but guests’ perceptions of value and other factors will guide final price.
Place – includes emergency procedures, accommodation and distribution channels for tickets/registrations.
Promotion – all of the marketing tools used to tell people about the event.
 Discussion: Think of a large public event, such as a State of Origin game or a music festival. As a class, break down that event into the 4 Ps, and then discuss what you might do to improve upon the marketing of that event.

19. 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
Participation and people – All those who have an impact on the perceived value e.g.: performers, volunteers.
Process – All aspects of the event and the marketing mix need to be integrated.
Physical evidence – Certain parts of the event may provide ‘tangibility’ to assist marketing, such as the layout of the venue, location, physical presence of performers and staff.
Packaging and programming – Bundling the total parts into a package for marketing helps perception.
Positioning – Identifying needs that the event can satisfy and then positioning it so it is perceived as adding value to their life.
Power and partnership – Developing relationships with sponsors, government bodies and regulatory bodies can ensure marketing is more successful.
Public – Ensuring the public image of the event adds value to customer perceptions. Current areas where this is important are in environmental sustainability and social responsibility.
Managing the marketing mix – It is important to choose elements of the marketing mix in relation to the other. For example, if the event product is well know, put less resources into marketing this, and more into marketing other, less well known elements.

20. 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.
Strong focus on people – the service received throughout the event experience, number of people encountered, reputation of the event and the organisation delivering it can all impact on perceptions of value and customer satisfaction.
Physical evidence – providing merchandise from previous events for people to enjoy, newsletters, merchandise, etc. Use of an iconic venue may also assist.
Personal course of information – encourage people to seek word-of-mouth advertising from others, and provide incentives such as discounts for bringing friends or attending more than one event.

21. 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.
Pre-purchase – Web pages, customer service officers answering phone enquiries and promotional materials can affect potential customers’ perceptions of quality, value for money and expectations.
Purchase and pre-event – Ease of purchase for tickets and other event materials will affect satisfaction. Accessibility to the venue and security at the event will also affect perceived quality.
Staging – The contact with event staff and volunteers, quality of service, goods and services available at the event all affect perceptions of quality. This is also where guests’ expectations are either met, exceeded or not met.
Post-event – Quality will be perceived based on the ease in leaving the venue and whether merchandise is available.

22. Enhancing customer service
In the current competitive environment, advantages gained from lower price, higher quality, and even better promotion, can be quickly copied and eroded.
This dilemma can be addressed by offering exceptional customer service.
Rather than treating customer service as an additional service it needs to be treated as a strategic initiative.
Hence, rather than an emphasis on price, product, place or promotion, the focus is on the client experience.

23. Enhancing customer service
Exceptional customer service involves:
Creating an organisational culture which emphasises the importance of every customer contact
Continuously improving customer service by listening to, and acting on, customer feedback
Maintaining a positive approach to customers as well as professional and courteous communications.
Always delivering what is promised and, in fact, seeking to give customers more than they expect
Under promise and over deliver

24. 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
Market opportunities – the gaps between what people want and what is currently available.
5 C analysis – Conducting market research about your own company and competitors.
Company – strengths, resources, weaknesses. Product line, image, technology, expertise, organisational culture, mission and goals of the company. Ensures that image projected is what the company wants. Customer feedback, including complaints, is a rich source of information, which can be gained through surveys, etc.
Competitors – Need information about direct competitors, who provide the same products to your target market, and indirect competitors, who provide alternatives to your product that may be taken up instead. The more you know about your competitors and what they offer, the more opportunities you can identify for your own business.
Customers – Identifying market segments available to the event, and the needs that you have to achieve. You need to find out about decision-making processes and who is responsible, what motivates people to attend events, when people make decisions to attend events, where they get information about events and why they choose certain events over others.
Collaborators – sponsors, ticket sellers, suppliers, regulator authorities, etc. Need to assess relationships and how they are maintained, agreements made, and the needs of collaborators that you have to satisfy.
Climate – the context in which the event is happening. Political and regulatory environment which may affect how the event is run. Economic environment, which may affect who can attend, what markets may be hit by unfavourable conditions. Socio-cultural environment – will influence the types of events that are popular, currently includes those with an environmental or CSR focus. Technological environment – use of AV and tech equipment, and distribution and sales of tickets and merchandise.

25. 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

26. 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.
Strengths – company attributes that assist with achievement of event objectives eg reputation
Weaknesses – company attributes that hinder the achievement of event objectives eg poor training
Opportunities – external conditions that assist with achievement of event objectives eg increase in demand for company’s product
Threats – external conditions that hinder the achievement of event objectives eg downturn in economic conditions
Conversion strategy - a rethink is needed in order for the event company to move into more successful conditions. They are currently looking at events out of habit or former success rather than following current trends and opportunities
 Activity: Have students break into groups and conduct a SWOT analysis of events they have been to recently. What are the outcomes. Is there opportunity for matching strategies to occur? What about conversion strategies?

27. 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
Market segmentation – Identify those interested in attending the event. May have several groups interested in attending whom you need to target differently due to different demographics. May segment according to age, gender, location, income, education.
Tailoring – making the product what those segments want, ensuring price is consistent with their perceptions and capabilities, distributing tickets to meet their needs and running a promotional campaign that is most likely to reach them.

28. 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.
Positioning the product
Location – best suited to the event and the needs of the segment.
Attention span – use promotional materials well – be clear and concise.
Competitive costs – entry price must cover costs but also be in line with what guests usually pay and are prepared to pay.
Program – something to make it unique.
Customer value proposition – benefits promised in return for buying a ticket. It is what the customer gets out of the experience. Want to pay a fair price and get value for money.

29. 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
Product – design of the event and the items that should be included as part of the product.
Price – who has to pay it, what their capacity is to pay and what they consider a fair price. Cost recovery and profit margins needs to be considered – reflect the objectives of the event.
Place – venue will impact on perception of the event. Other requirements such as certain facilities or accommodation need to be considered. Also need to consider distribution channels for tickets
Promotion – continuous reinforcement of a clear integrated message.
Participation and people – Performers, etc. that will attract and audience due to filling a need. Also relates to recruitment of the best staff and volunteers. Audience participation may need to be managed to ensure it does not ruin the event for some parts of the audience.
Process – situation analysis, marketing strategy development, marketing mix decision, implementation and control.
Physical evidence – Try to incorporate tangible aspects such as decorations, venue and staffing.
Packaging and programming – creating a package for the event, including other activities and experiences.
Positioning – making the event unique for the market segment, including location, getting their attention and cost of attendance.
Power and partnership – Ensuring a strategic and clear communication with sponsors and maintaining a good public image through good relationships.
Public – Social responsibility and environmental responsibility.

30. 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.

31. 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.