Festival and Special Event Management 4 e Chapter

Festival and Special Event Management 4 e Chapter 9 Marketing Planning for Events

Festival de jour? • Also – Have a read of the questions re the Parkes Festival Ch 9 – Have a read of the Article ‘Partnership, social capital etc’ on Webct or online – Partnerships, social capital and teh successful management of small scale cultural festivals: A case study of Hobart’s Antartic Midwinter Festival’ (comes up in google)

Learning Objectives 1. 2. 3. 4. 5. 6. 7. 8. Describe how the marketing concept can be applied to festivals and special events Understand how event consumers can be segmented into markets Understand the consumer decision process for festivals and events Apply the principles of services marketing in creating marketing strategies and tactics for events and festivals Plan the event ‘service–product’ experience, including its programming and packaging Develop event pricing strategies or other entry options for special events Create strategies for place/distribution, physical setting and event processes that respond to consumer needs Apply the knowledge generated into an effective and efficient marketing plan

What is marketing? • Marketing is concerned with satisfying consumer needs and wants by exchanging goods, services or ideas for something of value • Event marketing is the process by which event managers and marketers gain an understanding of their potential consumers’ characteristics and needs in order to produce, price, promote and distribute an event experience that meets those needs, and the objectives of the event

What is marketing? The need for marketing • Marketing principles and techniques provide a framework for decision making • Sponsoring bodies need reassurance that their sponsorship is linking their brand with their target markets • All levels of government require a demonstration of marketing expertise before committing funding • Events must compete against other leisure activities

What is marketing? Events as ‘service experiences’ • The delivery and consumption of an event are inseparable • Because of the immediacy of service consumption, event experiences can have variations in quality each time it is held • Events are intangible • Events have credence qualities – characteristics that consumers aren’t able to understand or evaluate • The event experience is perishable

What is marketing? The nexus between event marketing and management

What is marketing? The role of strategic marketing planning • Strategies are – Longer term rather than short term – Not another word for tactics – Based on careful analysis of internal resources and external environments – Essential to survival

What is marketing? The role of strategic marketing planning

What is marketing? The role of strategic marketing planning

Event marketing research • Research is usually conducted at two levels: – Macro level – to understand external forces that may affect the event and its markets – Micro level – to gain insight into the event’s resources and strategic capability

Event marketing research Analysing event environments • The C-PEST analysis (see diagram next slide) • Marketing internal resource analysis – Human resources – Physical resources – Financial resources • The SWOT analysis

Event marketing research Analysing event environments

Event marketing research The event consumer’s decision-making process • Problem recognition • Information search • Evaluation and selection • Choosing whether to attend • Evaluation

Event marketing research Event satisfaction, service quality, repeat visits • Understanding perceived service quality is a primary goal of marketers • Perceptions of the event are based on technical and functional qualities • Five main dimensions of service quality: – – – Assurance Empathy Responsiveness Reliability Tangibles

Event marketing research Event satisfaction, service quality, repeat visits • Event satisfaction is related to perceived service quality • This is experience dependent • Dissatisfaction can occur based on perceived gap in event quality

Event marketing research Event satisfaction, service quality, repeat visits

Event marketing research Event satisfaction, service quality, repeat visits

Steps in the marketing planning process Segmenting and targeting the event market • Geographic segmentation • Demographic segmentation – – – Age Gender Occupation Income Education Cultural group

Steps in the marketing planning process Positioning the event 1. 2. 3. 4. 5. 6. 7. 8. 9. Existing reputation or image Charisma of director Focus on event programming Focus on performers Emphasis on location or facilities Event users Price or quality Purpose or application Event category

Steps in the marketing planning process Developing event marketing objectives • Profit orientated – Maximise ROI • Market orientated – Increase market share • Must be measurable

Steps in the marketing planning process Choosing generic marketing strategies and tactics for events

Steps in the marketing planning process Selecting the event’s ‘services marketing’ mix • Event product experience (the core service); Programming (event components, their quality or style); Packaging of opportunities within the event or packaging the event with external elements (attractions, transport, accommodation)

Steps in the marketing planning process Selecting the event’s ‘services marketing’ mix • The place (where the event is held and tickets are distributed); physical setting (venue layout to satisfy visitor needs) and processes (on-site queuing etc) • People (cast, audience, hosts and guests) and partnerships (sponsors, media etc) • Price (or exchange of value) • Integrated marketing communication (the strategic mix of media and messages to address markets)

Planning event ‘product’ experiences • Events contain three elements: – The core service and benefits that the customer experiences – The tangible ‘expected’ product (e. g. venue) – The augmented product – what differentiates it from other events • Interactions with people are also part of the product, so marketers need to: – Ensure visitor segments within audience are compatible – Ensure an ease of interaction at the event

Planning event ‘product’ experiences Developing the event • Major ‘event’ innovations • Major process innovations • Product (event) line extensions • Process (event delivery) extensions • Supplementary service innovations • Service improvements • Style changes

Planning event ‘product’ experiences Programming the event • Have a distinguishing core concept • Marry the event program with its site or environment • Note the role of directors as program ‘gatekeepers’ and talent ‘poachers’

Planning event ‘product’ experiences Programming the event (cont) • Establish criteria for program content: – Compatibility of performers or exhibits to the event market – Success of the performer or exhibit being considered – Ratio of innovation and tradition in the event program

Planning event ‘product’ experiences Packaging the event • Strategies to package different types of entertainment, food and beverage, and merchandise as a single market offer (a service bundle) • Strategies to package the event with accommodation, transport and other attractions in the vicinity

People and partnerships • Sense of sharing a common vision pervades the team of staff, volunteers and sponsors behind successful events • Principles of relationship marketing and management may be applied with a range of event or festival stakeholders • The people element in marketing events extends to building relationships with the residents where an event is staged

Pricing • Non-cash costs for consumer – Time – opportunity to do other things with that leisure time – Psychic costs – social and emotional costs of attendance, mental effort to engage in the social interaction required – Physical efforts – effort to travel to and then comsume the leisure experience – Sensory costs – unpleasant environment, unnecessary loud noise

Pricing • ‘Net value’ = the sum of all perceived benefits minus the sum of all perceived costs • The greater the positive difference between the two, the greater the net value to the consumer

Pricing • Event managers should account for two cost categories when setting the price strategy for the event: 1. Fixed costs (those that do not vary with volume of visitors, i. e. venue rental, power costs) 2. Variable costs (those that do vary with volume of visitors, i. e. catering costs, staffing costs)

Pricing • • Event managers should also consider competitive leisure experiences when establishing a pricing strategy For similar experiences, there are three choices: 1. Match the price 2. Adopt a cost leadership strategy – charge the same plus 25% 3. Adopt a differentiation strategy – increase the price but use marketing to promote the value of the event

Pricing • Pricing strategies can be: – Revenue orientated: maximises revenue by charging the highest price – Operations orientated: balances supply and demand by adjusting price in relation to low or high demand periods – Market based: uses differential pricing, may be linked to alternate event packages

Event ‘place’, physical setting and processes • ‘Place’ refers to both the site(s) where the event takes place (the venue) and the place(s) where event goers can purchase tickets (ticket outlets) • The physical setting is crucial for consumer satisfaction • Processes of service delivery is also an important element of the marketing mix

Event ‘place’, physical setting and processes • Ticketing distribution is a marketing element in itself, but it is also a process of interaction with consumers that deserves careful planning – Ticketing agency – Internet • Other operational processes like security checks, entry/exit procedures, the ability to readily access ATMs or toilets can also ‘make or break’ market satisfaction

The marketing plan

And then. . . • During the Event – Collect information about what people thought – This feeds into the evaluation process • Of the Event itself • Of the Marketing of the Event