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Event Marketing

Event Marketing
Definition
"Whereas marketing outside the voluntary sector generally involves clarifying customer needs and then satisfying them with appropriate products or services, arts marketing more usually involves finding the right audience for the product and bringing audience and product together. It is a matching process rather than one in which the public is simply given what it wants." (Fishel, D. (1994), 7-8) From the author’s point of view, this statement contradicts in itself, but unfortunately it is advocated by some representatives of the arts industry. Of course, there are major differences between marketing physical products and arts experience, some of which are described further in this chapter. However, the marketing process should still involve segmentation of the markets and targeting the potential groups on the basis of comprehensive market research, which serves as a source for a clear definition of their needs and motivation. Many examples in the music industry have shown that certain music styles have been created or changed in order to please the changed social needs of the audience, i.e. the "sweetening" or "softening" (Truly, D. (Spring Sem. 1999) of music genres in order to appeal to a bigger audience.

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Michael Hall defines event marketing as "the function of event management that can keep in touch the event’s participants and visitors, read their needs and motivations, develop products that meet these needs, and build a communication programme which expresses the event’s purpose and objectives." (Watt, D.C. (1998), 61) The event’s objectives and purpose must be integrated in the event marketing strategy, which serves as a basis for the design of an effective marketing mix. Generally speaking, marketing is seen nowadays more as a philosophy or a way of thinking and not just as a company’s function or strategy. Creating customer value and satisfaction are the heart of marketing in the service industry. (Cf. Kotler et al. (1998), 3) Therefore, they are stressed in a separate chapter.
A further aspect which event marketing should consider is the specifications of events: they are intangible (customers feel the benefit and the enjoyment, but cannot touch it), perishable (the event experience is short-lived), inseparable (one event is associated with the next and is identified with the organiser’s reputation; the production and consumption of the arts is at the same time), consistent (customers demand consistency of the quality of services and facilities offered at the event), and finally events are not owned by anyone but they are temporarily enjoyed by many. (Cf. Watt, D.C. (1998), 61)
When using the words "event" and "marketing" together one must differ between two concepts with regard to their purpose. One concept is using an event as a marketing tool incorporated in the marketing mix of a destination in order to attract certain types of tourists and increase the name of recognition as well as the positive image of the destination. The other concept involves the design of an event-marketing mix necessary to market a festival. The latter will be stressed in this chapter. Prof. Dr. Dreyer states that the marketing actions which need to be undertaken in both cases are very alike and should focus or at least integrate the destination where the event takes place in the event’s marketing process. (Cf. Dreyer, A. (1997)) C.H.Weber says that despite the perishability of special events, effective event marketing has a great impact on the local tourism industry, which is why more and more tourist destinations use events in order to attract additional visitors. (Cf. Weber, C.H. (1996), 66)
Marketing process
According to Dreyer, the stages of the event marketing process, shown in the following figure, are analogous to the steps of the management process for the most part. The contents are slightly modified.
1. Event Marketing Process (Cf. Dreyer, A. (1997), 250)
1. Situational analysis
Internal analysis of the organisation
• Skills of the festival organisation (Strengths, Weaknesses)
• Lon-term objectives, policies and strategies of the organisation
Capabilities and willingness of other parties involved (e.g. local authorities) and administration.
Analysis of the target markets
• Market segmentation
• Competing festivals and their marketing activities
• Trends, especially changing demands and expectations
Suppliers
Environmental factors
Opportunities and Threats
• Socio-demographic trends
• Natural environment
• Technology, esp. Internet
• Government, politicians, and laws
Economy
2. Planing

a) Festival objectives and Identification of the target groups
b) Festival marketing strategy and objectives
c) Budgeting marketing expenses
d) Design of marketing-mix tools

Product Price Place Promotion
e) Organisational arrangements, action plans, time scales, etc.

3. Implementation of marketing-mix activities
e.g. press releases, design and distribution of promotional material, etc.
4. Evaluation
Reviewing marketing results using set objectives, market analysis, consumer research, promotion effectiveness studies, etc
Event marketing from an operational perspective focuses on the design of the marketing-mix. For each target group a different marketing-mix needs to be configured in order to appeal to it. Throughout the event marketing decision process information can be drawn from former experience, evaluation of the media coverage on the festival, as well as through visiting similar festivals and through market research. Market research can reduce uncertainty and therefore the risk of failure. It can also help determining an effective marketing strategy. It is vital in determining demographics and psychographics of the targeted audience, their expectations and trends, as well as price-sensitivity and promotions assessment. Moreover the likely behaviour of the audience can be determined which is important when planning for precaution against aggressive behaviour, if this kind of behaviour is expected.
The target groups for festivals can be quite varied, especially regarding their age, attitudes, profiles, awareness and perceptions. However, it must still be clearly identified in order to both approach them more effectively through appropriate messages and cater to specific needs and expectations. Target groups for a specific event may be potential performers, audience, sponsors, event staff, media, commercial sector, government agencies, and local authorities. All require differing marketing approach and positioning to obtain their support. (Cf. Watt, D.C. (1998), 65-66)
Research regarding market segmentation can be carried out using various techniques including focus groups, interviews, surveys, brainstorming and discussions, and information from trade associations. "This process must be undertaken with care, as this will be the basis of the processes that the organization will put into place. Not only can the organization confuse the wants, needs and perceptions of the various consumers, it can also influence how the customer thinks." (Ireland, T. (2000), 22) Customer expectations are also set by leading festival organisations who have implemented innovative ideas and approaches. (Cf. Ireland, T. (2000), 22)
Marketing-Mix
The marketing mix is the specific collection of actions employed by an organization to stimulate acceptance of its ideas, products, or services. (Cf. Dalrymple, D.J. et al. (1990), 5) The mix consists of functional marketing strategies regarding product/services, price, place/location, and promotion, the so called traditional 4 P’s of the marketing mix. For events there are a number of other aspects (other P’s) which should also be considered. The so-called new P’s of tourism marketing that are applicable for event marketing are as follows: (Cf. Freyer, W. (1997), 417)
• Participation and people,
• Physical evidence,
• Process,
• Packaging and programming,
• Positioning,
• Power and partnership, and
Public.
Traditional Elements (P's) Of The Marketing-Mix

Promotion
The promotion mix, a company’s total marketing communications program, includes advertising, sales promotion, public relations, and personal selling. (Kotler et al. (1998), 489)
"The risks involved in one off or first time events mean that the event manager has to be acutely aware of the tools of promotion. The audience does not have a reference point for the event other than that created by the promotion. With repeat events and festivals the audience and suppliers have at least an idea of the type of event, venue and scale. For special one off events, the promotion is strongly linked to the reputation of the organising company, sponsors and other stakeholders as well as the actual program or event content. As with all areas of event management, event promotion must be dynamic and able to respond to opportunities as they arise. Other areas of the event planning should also be able to respond to the unforeseen products of promotion." (O’Tool, W. http://www.rootsworld.com/pangaea/events/promotion.html, accessed 20/02/2000) O’Tool stresses advertising, public relations, direct marketing, word of mouth, and hospitality as the main promotional tools of event marketing.
According to David Watt the most important aspects for the promotion of an event are advertising, media relations, publicity, merchandising, pamphlets, posters, logo and displays. An appropriate logo can have a considerable impact on the public image and merchandising revenues. It should reflect the event, pass on what it is about, be attractive and eye-catching, portray an event image, give relevant messages, and be preferably colourful. A mascot is also related to image and can help to promote the event in various ways. "Well-targeted, cost-effective advertising can make the difference between success and failure." A successful advertising campaign has several key features: (Watt, D.C. (1998), 66-69)
• Promote awareness of the event,
• Pass on knowledge of relevant event details,
• Encourage the desire to participate in or attend the event,
• Promote the conviction that the event is worthwhile,
• Aim to establish attendance patterns in the long run for future events,
• Encourage the decision that turns the interest into attendance or participation,
• Promote the event image and logo,
• Be positive and interesting to attract attention.
Advertising includes give-aways (e.g. leaflets, posters, brochures), radio (e.g. commercial, community, or national radio), Internet (e.g. web sites, e-mail), television (e.g. cable, free to air, or satellite TV), and Press advertising (e.g. in newspapers, special magazines), non-media alternatives (e.g. outdoor advertising, street banners, aerial) and other innovative advertising techniques. The advertising campaign can be carried out by an appointed Advertising Agency depending on the scale of the festival. (Cf. O’Tool, W. http://www.rootsworld.com/pangaea/events/promotion.html, accessed 20/02/2000)
Product
The product is the end result, or the festival itself. It also involves "all the ancillary contributions like programmes, presentation, quality production and customer care." (Watt, D.C. (1998), 66) Further elements of the product mix are food and beverage, entertainment, accommodation, queuing time, decoration, theme, lighting, number of service staff, degree of training, uniforms, standard of service quality, (Cf. McDonnell, I. et al. (1999), 110) cleanliness and safety.
If the product is so well known that it is sold out through Word of Mouth, the promotion campaign’s importance decreases. This aspect is supported by the statement of Michael Eavis, the organiser of Glastonbury Festivals, given to the question of how the Festival is marketed, in terms of a promotional campaign and the image that is created. He says that "There is no need (for a huge promotion campaign, ed. by author), as the festival always runs to full capacity. Adverts are placed around the country, stating when the festival is on and giving the information about what is in it…" (Interview with Michael Eavis, Glastonbury Festival Resources) Some marketers would say that the festival has an established brand name, since many festival goers associate the name Glastonbury with the biggest European festival even though it is originally the name of the town near by.
Price
The price must be co-ordinated with product design, distribution, and promotion decisions to form a consistent and effective marketing program. There are several factors influencing pricing decisions. Internal factors include marketing objectives, marketing-mix and strategy, costs, pricing strategy, organisation for pricing, etc. External factors include the nature of the market and demand, competition, the economical situation of the region, resellers, government, and psychological factors. "While the costs set the lower limits of prices, the market and demand set the upper limit… like any other marketing decision, pricing decisions must be buyer oriented… Effective, buyer-oriented pricing involves understanding the value that consumers place on the benefits they receive from the product. Such benefits include both actual and perceived benefits." (Kotler et al. (1998), 403-412) Thus the price must be acceptable to festival-goers. The prices for sponsorships are discussed into further detail in the chapter ‘Sources of Capital’ of this site.
There are three main foundations of pricing strategies: costs, competition, and value to the customer. This value is seen as the difference between perceived benefits and perceived costs. The benefits can be divided into core benefit (e.g. a variety of entertainment), tangible elements (help deliver the core benefit, e.g. good sound quality and appropriate viewing areas), and augmented product (additional features, e.g. decoration, food and beverage, etc.). Additionally to the ticket price, customers also perceive other elements as costs, e.g.: time (the opportunity cost of the time spent consuming the event experience compared to another leisure activity), physical efforts (travel to the event), psychic costs (social interaction), and sensory costs (unpleasant climate, decoration). There are three main pricing strategies that are used by event organisers: an operations-oriented pricing strategy, which aims to balance supply and demand and can also include discounted prices at times of low demand; revenue-oriented strategy focuses on maximising the revenue from target audiences; target market strategy emphasises on different prices for different target markets. (Cf. McDonnell, I. et al. (1999), 125-126) Glastonbury, for examples lets children in for free.
Place
Place includes the venue, accommodation, emergency access, host town, region, county, environmental conditions, geographical location. (Cf. Watt, D.C. (1998), 66) Furthermore, the venue facilities, also seen as "place" in terms of marketing, should be attractive and clean to create a quality image. The locality should be easily accessible with appropriate maps, sign-posting, parking, to make the arrival of visitors a pleasurable experience and, thus, create a positive first impression.
Place in terms of marketing also includes distribution channels of tickets. Glastonbury Festivals sell tickets via national outlets, mainly record shops and their own ticket office. (Interview with Michael Eavis, Glastonbury Festival Resources)
New Elements (P's) Of The Marketing-Mix
Participation And People
There are three different meanings of participation and people. Firstly, festival goers are affected by other festival goers that is part of the festival experience- to meet other people with similar interests. Secondly, the event staff who is a crucial factor in delivering a good event, especially their creativity, contributions, and their excitement when in contact with festival goers ("customer care") and other guests. Their effective teamwork is another meaning of this marketing element. (Cf. Watt, D.C. (1998), 67) It means that internal marketing in terms of creating a common basis of long-term and flexible short-term objectives is important for creating the necessary excitement and commitment, which is necessary for keeping the festival experience alive. From the author’s point of view, training the event staff (especially volunteers and security guards) as to how to deal in a friendly and competent manner with festival goers is a very inefficient method of influencing this contact (the so called ‘Moment of Truth’ in the hospitality marketing circles), which is so important for the festival experience. It is linked to certain attitudes and experience that cannot be changed easily. It is more effective to combine the personal strengths and weaknesses of every individual involved in the creation of the festival. It is also more effective to choose the right people with fitting attitudes and give them the opportunity of both creating what they want themselves, and technical training instead of trying to change their attitudes. As Groenroos has said "I think the 4 P’s of services are people, people, people, people". (Freyer, W. (1997), 416)
The third meaning of people and participation is the contact between local people and festival goers. From the author’s point of view, the hospitality of local people or their rejection can influence the festival experience on one hand and the locals’ attitude towards the event on the other. This aspect cannot be examined further due to the limits of this paper.
Physical Evidence
Physical evidence concerns the geographic location, environmental conditions, climate, ambience of the festival, noise, physical appearance of the event staff (uniforms), sign-posting, host town and other venue conditions or facilities. David Watt defines physical evidence as "place" including the above in addition to accommodation, ancillary facilities, maps, car parking, catering location, transport, emergency access, region, and county. (Cf. Watt, D.C. (1998), 66)
Process
This element, in contrast to the marketing in producing industries, defines tourism marketing as being a dynamic process that requires all marketing instruments to be integrated in a specific tourism marketing model. (Cf. Freyer, W. (1997), 416) Thus, event marketing being close to tourism marketing must also be seen as a dynamic process that goes side by side to the planning cycle, continues during and after the event and finishes with the evaluation of the marketing functional strategies. The marketing process is described in the above sections of this chapter.
Packaging And Programming
Packaging describes the way events are presented in terms of marketing and programming that includes performers, other sub-events and services as part of the festival. (Cf. Watt, D.C. (1998), 67) An open-air concert could be part of a bands’ tour which would mean that the concert is part of a touring package and all marketing activities for the concerts in different venues should be integrated. From the author’s point of view, various festivals throughout Europe that attract audiences with common preferences and needs could also be promoted with joint-marketing efforts to travellers from overseas. This would also reduce the overall marketing costs for each festival organiser.
Special travel-hospitality packages, including travel arrangements and accommodation can be assembled by tour-operators and offered through travel agents or directly through the Internet. (Cf. Kotler et al. (1998), 9) Many tour-operators have already specialized their event-tourism catalogues with packages like this. A suitable package for a certain festival depends on all the specifications of the actual festival, its tourism infrastructure, its organization with good negotiation skills, and the attractiveness and image of the region or festival. A possible package would need to be assessed first for its feasibility and rentability, which could easily blow up the frame of this paper. The focus of the paper is the organizational element of the festival, however the possibilities of extending its appeal through linking it with other tourism companies like tour-operators or travel agencies is given. Student travel agencies or tour-operators focused on students could be possible partners of open-air music festival organizers if the target is young people.
Positioning
Positioning can also be seen as a separate marketing tool. It requires activities that combine the elements price, promotion, product quality and distribution. (Cf. Freyer, W. (1997), 418) It can also be seen as ‘reputation’ meaning where the event is to be positioned in terms of consumer demand. The prominence given to the name of the festival and what that name means to customers is called branding, (Cf. McDonnell, I. et al. (1999), 110) a mixture of intangible, but valuable associations and expectations. For each target group a different positioning strategy is required

Partnership
Partnership with sponsors and other organisations is crucial in terms of funding or other ways of support. Their marketing presence can be very beneficial when designing promotional activities. (Cf. Watt, D.C. (1998), 67) The level of involvement of government agencies, especially working together with licensing bodies will influence the way various health and safety regulations are interpreted and met. A good way of developing good partnerships is taking good customer care of them in terms of hospitality, which is seen as an important marketing tool. Moreover, the interests of the various parties involved in the festival should not be opposing to avoid controversy.
Regarding the obtaining of a licence for the Glastonbury Festival, "…the fact that the festival used to support CND caused problems as many councillors (of the Mendip District Council, ed. by author) did not agree with its principles. The fact that Greenpeace is being supported in its place is causing less controversy among the locals." (Interview with Michael Eavis, Glastonbury Festival Resources)
Selling franchises to local people at a reduced rate also contributes to a better public image and can be seen as an economical benefit for the local community. The Glastonbury Festival’s policy is to give as many trading opportunities as possible to charitable organisations even when it would be financially considerably more beneficial to offer the sites to commercial companies... Many charities and organisations also use the festival as a forum to launch their campaigns, e.g. Greenpeace, Oxfam, Water Aid, Amnesty International and many other smaller charity groups. (Glastonbury Festival Markets, Glastonbury Festival Resources)
Public
This element of the marketing mix places a special importance on public relations. Alongside the advertising campaign, a lot of attention should be given to the public relations campaign, which seems to be one of the most cost-effective publicity tools in media. It costs less than direct mail (excluding e-mail) and TV or press advertising. (Cf. Kotler et al. (1998), 571) "PR is different from advertising in that it is not self praise but carries the strength of disinterested credibility. It communicates a more complex message than advertising. It is free but the event manager looses control over the result that is largely influenced by the journalist’s attitude towards the festival or the interests of the media company that presents the event to the public. They can have a positive or negative impact on the festival’s reputation. To this end it is important that the event manager maintains control over as much of the public relations as possible. A thorough knowledge of the media's requirements and beneficial interaction with the media personnel are sensible methods. Although PR is mostly proactive, it is important for an event to have a reactive PR strategy as part of the event risk management." (O’Tool, W. http://www.rootsworld.com/pangaea/events/promotion.html, accessed 20/02/2000)
Public relations activities for festivals can include press releases, interviews, up-dates on the festival’s homepage, and sometimes press conferences. For an effective PR campaign both a media list of suitable targeted media and a contact list as well as a club list with interested people and opinion leaders (media talent who can be contacted to support the event by making suitable comments or actions) should be prepared. Ideas about stories for the media and a media kit should be designed in order to gain continuous exposure. The main contents of a media kit are press releases, press ready photos or video footage, event program, sponsor information, interview opportunities, times and contact details of performers and media talent, press gifts such as complimentary tickets, invitations or smart hooks. (Cf. O’Tool, W. http://www.rootsworld.com/pangaea/events/promotion.html, accessed 20/02/2000) Glastonbury Festivals, for example, used to offer free press tickets to those who have written about the festival in advance. They also give a free ticket to everybody of the village of Pilton, where the festival’s grounds are, which is seen by marketers as ‘internal marketing’ that stresses the importance of involving local people in the event. Glastonbury’s public image in the media improved after it started supporting Greenpeace and Oxfam instead of the trouble causing political associations with its `80s main partner- CND, which is looked at in the overview chapter of Glastonbury on this site.
Public as a factor and as an ingredient of the marketing mix is further examined under: ‘partnerships’, ‘participation and people’ (above in this chapter); and in the following chapters about ‘Internet’; ‘Customer Care’, and ‘Hospitality’.

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