Event Marketing is growing at a rate of three times that of traditional advertising. Though relatively small compared to the major components of the marketing communications mix-advertising, sales promotions and P-O-P communications-expenditures on event sponsorship are increasing. Corporate sponsorships in India in 2001 were estimated at $3.9 billion-with 65% of this total going to sports events and most of the remainder spent on sponsoring entertainment tours or festival and fairs. Thousands of companies invest in some form of event sponsorship. Defined, event marketing is a form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social or other type of high-interest public activity. Event marketing is distinct from advertising, sales promotion, point-of-purchase merchandising, or public relations, but it generally incorporates elements from all of these promotional tools. Event promotions have an opportunity to achieve success because, unlike other forms of marketing communications, events reach people when they are receptive to marketing messages and capture people in a relaxed atmosphere.
Event marketing is growing rapidly because it provides companies alternatives to the cluttered mass media, an ability to segment on a local or regional basis, and opportunities for reaching narrow lifestyle groups whose consumption behavior can be linked with the local event. MasterCard invested an estimated $25 million in sponsoring the nine-city World Cup soccer championship in the United States in 1994 and will likely sponsor other big events in many countries as well.Olympics and its renowned five rings are "the world's most effective property" in terms of marketing tools. The Olympics sell sponsorship on a local and global basis, and every couple of year's corporation's line up to pay as much as $50 million to be the lord of the rings. The Atlanta games in 1996 have a reported $3 billion in the bank as a result of negotiating sponsorship, broadcast, and licensee fees.
Objective of the Study
To study Event Marketing as a Generic Promotional Tool:
- The objective of this study is to understand the concept of event marketing, its benefits and implementation process.
- To evaluate the effectiveness of Event Marketing as a promotional tool.
- To identify the problems associated with event marketing in the Indian scenario.
- To offer suggestions for improvement to make it a more productive investment.
Also to study Event Management for organizing and managing the event in best way:
- The objective of this study is to understand the event management as a communication tool.
- Launching a product or a service.
- Communicate to a particular target audience.
- To make proper strategy , plan and execution of an event
The need of the project is to study and analyses certain issues in event marketing and event management, which need further attention. And some suggestions have been given to make the Event Marketing and event management industry more effective in order to utilize its full potential and serve the objective of an event and be mutually beneficial for the Event agency, the Corporate and the customer.
- To understanding the short coming of event marketing and event management.
- How these are perceived today.
- Problems faced by Indian event agencies.
- Understand and manage the event in the best and effective way.
The few reasons for choosing event marketing as a promotion tool are as follows:
- To accelerate your product into new markets.
- To judge your products against the competition.
- To launch new products/services.
- To appeal to special customer interests.
- To make more sales calls in a shorter time cycle.
- To meet potential customers for new applications.
- To change or improve the perception of your product.
- To network with customers not normally called upon.
- To present your products to buyers face-to-face.
- To promote positive product trends.
- To reposition your company in a market.
- To select a new approach to marketing your product.
- To target markets by types of visitors.
- To understand customer attitudes.
- To invite special customers to increase business
Communication Effects of Event Marketing
Communication is the process of moving a message that includes different elements. Those elements include source, message, channel, receiver and the process of encoding and decoding. The source is the organization, the message could be a new car launch, the channel could be the event, and attendees are the receivers. A problem many marketers have is to make sure that the noise that can disturb the message going from the sender to the receiver does not interfere with the message, and thereby influence the effect it has on the customer. The direct communication with the customer is one of the main advantages with Event Marketing compared to other marketing channels. In the definition of Event Marketing, it is said that "an event is an activity that gathers the target group in time and room." This means that the event is eliminated from the noise.
Event Marketing is marketing communication in four different dimensions. The first one is the emotional communication method. The Event Marketing is a form of "pull" marketing, where the organizations try to get closer to the feelings and emotions of the customers. They do this not by "pushing" their products at the customers, but by touching the customers' emotional feelings.
The second dimension touches the customers by involving them in activities. When the customer gets a feeling from a product, he/she is informed of the value of the product. An example of this in the car industry is the test-driving of new cars. The third dimension is the intellectual dimension and it regards the relevance of the event for the customers. The fourth dimension is the spatial dimension, how to get the three prior dimensions into action and to inform the customers through all marketing channels. Some researchers say that in the future, customers will not buy just the product, but the meaning, the event and the character, which in turn give the customers the possibility to create their own value for the product.
An event as a medium is in a tentative/favorable position now and will continue to remain so in the near future and tend towards becoming stronger. Event as a strategic marketing communication tool would gain significant followers and will bite into a much larger portion of the marketing budget.
The Complexity Of Evaluating Event Marketing
An event is concerned with a message, an interaction and integration. A message creates something valuable for the customer, and gives the customer some kind of experience. The interaction between the organization and the customer will create a relationship. The integration part is concerned with how the Event Marketing is part of the other marketing strategies. Event Marketing are not being evaluated to full extent due to lack-of time, ignorance and due to the fact that it is hard to evaluate it. Some of the interviewed persons agreed with this theory, and believed that ignorance made evaluation complicated. Furthermore, evaluations not conducted due to lack of time. The interviews also discussed that Event Marketing is only one of the possible marketing channels that can be used when marketing a product, and therefore it is hard to evaluate it separately from the other marketing tools. The more complex the marketing strategy, the harder it is to see what influenced the customer to buy the product.
Other reasons why it could be hard to evaluate the event is because someone's experience cannot be valued on a scale, and the interaction as a relation is not measurable. Furthermore, depending on all other marketing aspects it is hard to see why the customer has a specific feeling for a product. Kotler claims that the easiest marketing channel to evaluate is direct marketing. By using direct marketing it is easy to follow up exactly where the customers have seen the coupons, brochures etc. However, none of the interviewed persons mentioned that it would be easier to evaluate direct marketing than Event Marketing