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

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<ul><li><p>Festival and Special Event Management 4eChapter 9Marketing Planning for Events</p></li><li><p>Festival de jour?</p><p>Also Have a read of the questions re the Parkes Festival Ch 9Have 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 Hobarts Antartic Midwinter Festival (comes up in google)</p></li><li><p>Learning ObjectivesDescribe how the marketing concept can be applied to festivals and special eventsUnderstand how event consumers can be segmented into marketsUnderstand the consumer decision process for festivals and eventsApply the principles of services marketing in creating marketing strategies and tactics for events and festivalsPlan the event serviceproduct experience, including its programming and packagingDevelop event pricing strategies or other entry options for special eventsCreate strategies for place/distribution, physical setting and event processes that respond to consumer needsApply the knowledge generated into an effective and efficient marketing plan</p></li><li><p>What is marketing?Marketing is concerned with satisfying consumer needs and wants by exchanging goods, services or ideas for something of valueEvent 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</p></li><li><p>What is marketing?The need for marketingMarketing principles and techniques provide a framework for decision makingSponsoring bodies need reassurance that their sponsorship is linking their brand with their target marketsAll levels of government require a demonstration of marketing expertise before committing fundingEvents must compete against other leisure activities </p></li><li><p>What is marketing? Events as service experiencesThe delivery and consumption of an event are inseparableBecause of the immediacy of service consumption, event experiences can have variations in quality each time it is heldEvents are intangibleEvents have credence qualities characteristics that consumers arent able to understand or evaluateThe event experience is perishable</p></li><li><p>What is marketing? The nexus between event marketing and management</p></li><li><p>What is marketing? The role of strategic marketing planningStrategies areLonger term rather than short termNot another word for tacticsBased on careful analysis of internal resources and external environmentsEssential to survival</p></li><li><p>What is marketing?The role of strategic marketing planning </p></li><li><p>What is marketing?The role of strategic marketing planning </p></li><li><p>Event marketing researchResearch is usually conducted at two levels:Macro level to understand external forces that may affect the event and its marketsMicro level to gain insight into the events resources and strategic capability</p></li><li><p>Event marketing researchAnalysing event environmentsThe C-PEST analysis (see diagram next slide)Marketing internal resource analysisHuman resourcesPhysical resourcesFinancial resourcesThe SWOT analysis</p></li><li><p>Event marketing researchAnalysing event environments </p></li><li><p>Event marketing researchThe event consumers decision-making processProblem recognitionInformation searchEvaluation and selectionChoosing whether to attendEvaluation</p></li><li><p>Event marketing researchEvent satisfaction, service quality, repeat visitsUnderstanding perceived service quality is a primary goal of marketersPerceptions of the event are based on technical and functional qualities Five main dimensions of service quality:AssuranceEmpathyResponsivenessReliabilityTangibles</p></li><li><p>Event marketing researchEvent satisfaction, service quality, repeat visitsEvent satisfaction is related to perceived service qualityThis is experience dependentDissatisfaction can occur based on perceived gap in event quality</p></li><li><p>Event marketing researchEvent satisfaction, service quality, repeat visits</p></li><li><p>Event marketing researchEvent satisfaction, service quality, repeat visits</p></li><li><p>Steps in the marketing planning processSegmenting and targeting the event marketGeographic segmentationDemographic segmentationAgeGenderOccupationIncomeEducationCultural group</p></li><li><p>Steps in the marketing planning processPositioning the event Existing reputation or imageCharisma of directorFocus on event programmingFocus on performersEmphasis on location or facilitiesEvent usersPrice or qualityPurpose or applicationEvent category</p></li><li><p>Steps in the marketing planning processDeveloping event marketing objectives Profit orientatedMaximise ROIMarket orientatedIncrease market shareMust be measurable</p></li><li><p>Steps in the marketing planning processChoosing generic marketing strategies and tactics for events </p></li><li><p>Steps in the marketing planning processSelecting the events 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)</p></li><li><p>Steps in the marketing planning processSelecting the events 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)</p></li><li><p>Planning event product experiencesEvents contain three elements:The core service and benefits that the customer experiencesThe tangible expected product (e.g. venue)The augmented product what differentiates it from other eventsInteractions with people are also part of the product, so marketers need to:Ensure visitor segments within audience are compatibleEnsure an ease of interaction at the event</p></li><li><p>Planning event product experiencesDeveloping the eventMajor event innovationsMajor process innovationsProduct (event) line extensionsProcess (event delivery) extensionsSupplementary service innovationsService improvementsStyle changes</p></li><li><p>Planning event product experiencesProgramming the eventHave a distinguishing core conceptMarry the event program with its site or environmentNote the role of directors as program gatekeepers and talent poachers</p></li><li><p>Planning event product experiencesProgramming the event (cont)Establish criteria for program content:Compatibility of performers or exhibits to the event marketSuccess of the performer or exhibit being consideredRatio of innovation and tradition in the event program</p></li><li><p>Planning event product experiencesPackaging 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</p></li><li><p>People and partnershipsSense of sharing a common vision pervades the team of staff, volunteers and sponsors behind successful eventsPrinciples of relationship marketing and management may be applied with a range of event or festival stakeholdersThe people element in marketing events extends to building relationships with the residents where an event is staged</p></li><li><p>PricingNon-cash costs for consumerTime opportunity to do other things with that leisure timePsychic costs social and emotional costs of attendance, mental effort to engage in the social interaction requiredPhysical efforts effort to travel to and then comsume the leisure experience Sensory costs unpleasant environment, unnecessary loud noise</p></li><li><p>PricingNet value = the sum of all perceived benefits minus the sum of all perceived costsThe greater the positive difference between the two, the greater the net value to the consumer</p></li><li><p>PricingEvent managers should account for two cost categories when setting the price strategy for the event:Fixed costs (those that do not vary with volume of visitors, i.e. venue rental, power costs)Variable costs (those that do vary with volume of visitors, i.e. catering costs, staffing costs)</p></li><li><p>PricingEvent managers should also consider competitive leisure experiences when establishing a pricing strategyFor similar experiences, there are three choices:Match the priceAdopt a cost leadership strategy charge the same plus 25%Adopt a differentiation strategy increase the price but use marketing to promote the value of the event </p></li><li><p>PricingPricing strategies can be:Revenue orientated: maximises revenue by charging the highest priceOperations 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</p></li><li><p>Event place, physical setting and processesPlace 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 satisfactionProcesses of service delivery is also an important element of the marketing mix</p></li><li><p>Event place, physical setting and processesTicketing distribution is a marketing element in itself, but it is also a process of interaction with consumers that deserves careful planningTicketing agencyInternetOther operational processes like security checks, entry/exit procedures, the ability to readily access ATMs or toilets can also make or break market satisfaction</p></li><li><p>The marketing plan</p></li><li><p>And then ......During the Event Collect information about what people thought This feeds into the evaluation process Of the Event itselfOf the Marketing of the Event </p></li><li><p>**************</p></li></ul>