EVENTS & INDUSTRY Introduction to MICE Special religious holy days - Christmas and Easter before the fall of Western Roman Empire (AD 476) - Holiday – came from Holy Day Sovereign rules and other leaders - Organizing events as a way of controlling the public Traditional religious and national festivals - The key focus for community celebrations Individual milestones - Modern western society events such as anniversaries and achievements Festival - A gathering of a community or an event which is centered on some theme and held annually or less frequently for a limited period of time Event management - Is the capability and control of the process of purpose, people, and place - Happenings with objectives. The primer objective for an event can be strictly defined Qualitative o Emotions before and after the event Quantitative o Sales Events - - Event objective components Purpose (private, personal, business) - Community - Contact - Cultural - Commercial - Celebration - Ceremonial - Compete - Contest - Corporate - Carnival - Converse - Confer - Concert - Challenge - Civic - Championship - Campaign - Contract - Charity - Change - Confirm - Faith - Fun - Financial - Fair - Festival - Feelings - Funeral - Function - Familiarize - Fashion People - Community - Citizens - Customers - Crowds - Competitors - Contestants - Clients - Congress - Company - Comrades - Colleagues - Companionship - Family - Friends Place - Community - City - Country - Continent - Calendar - Capital city - Civic - Cosmos Events cannot be precisely defined Community can either local, international, business, cultural Size of events within the sector Small event - Clear objectives - Few stakeholders Massive event - Many stakeholders - Complex objectives Events industry - - The common link that binds all of these diverse event organizers together is the multitude of suppliers who rely on events for all part of their business Combination of different industries (music, - Celebration of creativity - Fun with friends - Promote a sense of belonging Sporting - These range from the largest of international events to local leagues and competitions for communities and children Personal and private - Are celebrations of special occasions with friends and family - Mostly and widely used event - Funerals, weddings, birthdays, graduations Political and governmental - These events may be commercial in that they can be costly to organize, but the profit they seek is not financial currency but political change Commercial and business - Involves a whole section of the industry or business - B2B - Competing for customer of clients Corporate - This type involve just one single business, company, corporation or organization - Townhall (general assembly), award ceremonies - Can be used to attract and maintain customer loyalty - Large scale o Lumalabas yung audience o Cultural or lifestyle events - Corporate hospitality o Who want to entertain clients or prospective clients Other types of events Types of events Religious - Enormous gatherings of people that share the objective components of faith and feelings, culture, community, ceremony, and contact Cultural - Some have a religious aspect – Sinulog - The primary purpose of such events is the celebration or confirmation of culture - Important economic opportunities Musical - Often commercial in their purpose but they are also about culture and fashion Special - Events that are first class or extraordinary in terms of the widespread public recognition they deserve Leisure - Ex: Olympics, - Bidding process - Important for the host country – they create legacies long after the event has taken place - Are capable of attracting substantial numbers of visitors, gaining global media coverage and reaping vast economic benefits from the hosts Charity – not really considered - Ex: met gala – employment - Have developed as a major provider of employment for event professionals Performing arts Historic sites and monuments Heritage sites Educational tours Museums Religious festivals Events Concepts & Management Lesson 2: Events Destination Management Events Tourism - Originated in the 1980s; a brand to attract consumers and reassure tourists the promised benefit from the chosen destination Essential activities - Travel motivators Physical - Visiting the actual place Cultural Interpersonal - Meeting people Prestigious/ status - Attracting additional visitors (not only to the local community) Promoting the local area, by offering a strong identity for the place Enhancing the visitor experience Developing community welfare through cultural festivals Offering the local community the opportunity to participate in the festival Developing the skills for local people and sharing good practices with visitors Events tourism - Semi-public but autonomous tourism organizations engaged in partnerships with private and regional and/or local authorities Cultural tourism - - Sense of identity, traditions, Tourists who take part in cultural activities while away from their home of cities The purpose of cultural tourism is for travelers to discover heritage sites and cultural monuments on their visits Seek to gain knowledge Cultural and economic impacts - Publicity for the event Developing employment Additional trade and business development Infrastructure investment Long-term promotional benefits Tax revenues High-status tourism profile Lesson 3: Event Entrepreneurship Entrepreneur You can experience in cultural tourism French word dating back to 1700 Commission to carry out a particular business - Now: someone who undertakes a venture, particularly starting a new business Entrepreneurship - - Activity which leads to the creation and management of a new organization designed to pursue a unique and innovative opportunity in the marketplace Entrepreneurial process o Asked by an entrepreneur o Should I start a business o Identifying gaps in the market - The businesses may have established markets (market share) - There is a history of the business - Established suppliers - Established customer base - Seller may provide management training to run the business Disadvantages of buying - Market is saturated and there is intense competition - Hidden costs associated with the business - Seller is dishonest and may back out - Inadequate market potential - The business is not worth much Event business 1. Skills and capabilities a. What skills and capabilities do I possess? 2. Experience and expertise a. What business experience and expertise do I have? 3. Rationale and motivation a. What is my rationale and motivation for starting a new business? Next week – quiz 25 items (30mins) - All topics discussed And then lecture Activity Lesson 4: Project Management Concept planning Event business - Research the market Who are your customers and where are they? Feasibility study Identify whoa re your potential competitors Seek out trends in events Develop a business plan and design a business strategy Start the venture from your home Always negotiate the terms and conditions of any contract Existing event business Advantages of buying - Risk associated are lower (already established) - Lower asset costs - Seller may finance whole/part of the business - Buyer has a clearer idea of the operations - It is essential when organizing, a new event and important in evaluating the event’s strategic direct Purpose - To inform and educate the community about a cause To obtain media coverage for an activity or organization To raise funds To celebrate a community’s strength and cohesiveness Awards or presentation ceremony o People - The local community A national audience Organization members Current and potential sponsors Media Potential members - A presenter, musician, musical group, dancers or actor Exhibitors o Are marketers who display their products in a controlled setting o Interactive, VR Key stakeholders Feasibility of event (key questions to determine the success) - - What physical resources are available or accessible to support the event? o Facilities, equipment (lights and sound), in-house dj What are the rough costs? How can any potential barriers be overcome? Is there sufficient time for planning? Event objectives and scope (SMART) S – Specific M – Measurable A – Achievable / Attainable R – Realistic T – Time-bound Key components of the event Multiple contractor - An organization can hire independent contractor to plan, organize, and manage the whole of an event, or just some particular aspects of the event - Bigger event – more contractors Substantial catering - Catering is the business of providing food service at a remote site or a site such as a hotel, public house (pub), or other location Multiple speakers, performers, and exhibitors - Multiple speakers o Speakers are people whose main occupation is speaking from the platform o Aims to education, inspire, etc. - Performers - Event principal Local community Organizing committees Local authorities Customers Colleagues Staging contractors Entertainers Organized committees o Secure and attain the enthusiasm of the team - Strong leadership o Shows how you manage the team and how you work with them - Effective meetings o Meetings are well-planned with research and time contributions o Minutes of the meeting – note of agreed actions - Delegation o Delegate tasks to make efficient use of time and skills - Broad involvement o All committee members are encouraged to contribute and share their skills Scope of event - Theme / motif of event Size and number of guests Audience / participant needs (parking) Location(s) Duration Financial investment and others Internal and external factors - - Resource availability o Human o Financial Potential for attraction of additional resources Level of management commitment Restrictions on lead time Potential levels of participation and interest Competitive environment Timing and duration factors (impact of public event or holidays) Potential contributors Talent requirements Climate Access factors Marketing and promotional issues Product Life cycle (PLC) Concept and initiation - Establish a ‘need or opportunity for the product, facility or service’ and to conduct a feasibility study Design and development - The second phase is concerned with very important tasks Implementation or construction - It uses the outcome of the second phase to implement the project - Interdependence when it comes to time, budget which can affect the whole project Commissioning and handover - Confirms that the project has been implemented or built to design - And in the end terminates the project (usually annual events, improvements) - Supports event organizers with clearly structured plans and schedules if developed and implemented in the right way - Detailed plans since there is only one opportunity to get it right Production of event annual - Implementation stage - Monitoring and controlling of all actions undertaken; offers the opportunity to compare the initially set objectives with reality - Event folio (portfolio) all details needed for the event - List of committee members and head, as well as contact information Live event - The event takes place; any last-minute difficulties have to be solved on site - Risks that may arise in the actual event Evaluation and completion of the event - It is an opportunity to evaluate an event’s success and to improve the way an event is planned, monitored, controlled and brought forward Event proposal template – contains the main information needed for the event - - Name of project Name of contact person Background of the project Goals and objectives Scope of the project Target audience Partners/ supporters Risks and key assumptions (event security) Budget Time scale (projected timeline) Event date Event life cycle Event outline and idea - Presentation of the project’s ideas, for which objectives have to be set - Which can include the feasibility study to determine if the idea has to be rejected - Offers decision makers the opportunity to evaluate if any investment should be undertaken or not Planning for the event Project management tools and events (not all of the, may not be beneficial, so tools depend on the kind of event) Breakdown structure - Work breakdown structure o The graphical subdivision of an event into manageable work packages o Clear structures that support all team members about their tasks - Resource breakdown structure o Subdivided the event in terms of the total resources available (money, manpower) - Contract breakdown structure o Simply helps to understand the relationship between large numbers of contractors that might exist in an event - Location breakdown structure o Supports a listing of physical locations of the work - Breakdown by sub-projects o The process and structure of the vent is demonstrated graphically to reconstruct the project’s progress Critical path method (CPM) - Helps to determine the local time needed to accomplish a project and to identify critical tasks which might endanger a project’s completion on time - See relationship and interdependency - earliest ending time - EET - Earliest starting time - EST Gantt chart - Definite advantage: puts all activities in a time sequence manner - How long it should take and when we should finish it Events finance Lesson 5: Financial Management in the Events Industry Sources of finance for events and festivals (usually have insufficient funds) Internal source - Personal savings o Most commonly used to gain funds o The savings invested are normally those of the business owner, partner, or shareholder o Usually businesses in the early stages of development - Sales of assets o Sell some of their surplus fixed assets in order to raise fund for current or future projects, to expand the business or to pay off debts - Retained profit o The simplest method by which a business can finance its own activities o From the net profit of the business o Help them buy new asset or expand External sources (leasing, debt, credit) - Bank loans o The traditional method used by businesses to raise funds for their current and future projects - Overdrafts o Kind of a bank loan o Most common form of debt available to businesses in the short term o Since there is no limit – flexible o Can be drawn easily o Getting money depends on the business - Leasing o The most common method of obtaining assets without immediate large-scale capital expenditure by the company - - - - - - Business angels o Individual investors who provide finance to support either the start-up or further growth of business which can demonstrate the opportunity for good future returns o Individuals who are prepared to make a long term investment in business with possible growth in the future Corporate sponsorship o It may take the form of cash donations, goods or services from a large corporation in return for specific opportunities to promote their business Formal stock markets o The most efficient and proven technique used by large corporations to raise finance Debentures o A loan which is given to an organization for a long period of time, by a wealthy investor Share capital o Company can grace finance o This method involves a permanent interest-free loan, given in exchange for a part share in the ownership and profits of the business Government grants o Both in the form of grants and through provision of expert advice and information LESSON 6: EVENT SPONSORSHIP Role of sponsorship - - Sponsorship acquisition - - 3:00-4:00PM - - Attend zoom before starting exam Olympic games dates back to Ancient Greece when prominent citizens support financial support Sponsorship has developed and become an enormously complicated mechanism in driving a product/service to potential consumers on a global scale The XIth Olympic Games, Berlin 1936 - Hitler attended, campaign for the Hitler regime London Olympic July 29 1948 – 14 august LA Olympics - Multiple choice 50 items Obtain historical data on the type of events sponsored by the company you are looking at A profile of events sponsored, frequency of sponsorship deals, and long-term sponsorship deals including financial assistance Major sponsorship deals PRELIMS: Seeking out an appropriate sponsor, or sponsors, to meet the combined strategic vision of the event and sponsoring company Securing support, partnership & strategic alliances Fundraising strategies for events organizations Financing through sponsorship and ticketing Generating revenue through ticket sales (musical events) Sales of merchandise Donations Not all sponsorship deals look to increase market share or competitive edge for the company product or service directly Needed to maintain brand image - Games of the XXIIIrd Olympiad Los Angeles 1984 Major sponsor Official sponsor Official supplier 34 companies with IOC as official sponsors Seoul 1988 - Increase value of spots - Barcelona 1922 - Increase market value of the event Atlanta 1996 - - All expenses were covered by private funding through tv rights, sponsors, ticket sales, tv viewers Sell 11M tickets - Establish other competitive events o Different needs to gain more customer engagement o Unique selling proposition How many people will attend What time people will arrive What price they will be willing to pay Type and quantity of promotional activities How the tickets to the event can reach the target market Degree of success for marketing events Sydney 2000 - 64% sponsors 37% Australian government Araneta Coliseum – Smart Araneta Naming rights - Is a tool to acquire intangible and tangible benefits by purchasing the space and length of time to apply a name to a facility Marketing functions - - Managing change Co-ordinating marketing planning control o Two different group of people o Co Managing the effects of competition Ensuring the survival of the business Designing & implementing of events strategy LESSON 7: MARKETING PROCESS Marketing era - developments in marketing 1950s – consumer marketing o Independent commercial TV o Mass medium TV advertising 1960s – industrial marketing 1970s – non-profit marketing 1980s – services marketing 1990s – relationship marketing 2000s – collaborative marketing 2010s - - - Event evaluation - Event marketing - A management process to achieve the objectives of an organization through identifying, anticipating and satisfying the need of the customers who attend an event and building strong customer relationships Event marketing activities - Analyze the target market Analysis o Crucial area o Aim is to find out the market in which the company plans to enter Planning o Follows logically for the analytical data derived from the research o Position their markets for exploitation Control o Important for the productivity of the organization - Security /police o Traffics, incidents Co-ordinators Council Specialists and department leaders Visitor observation Sponsors Staff & volunteers Mystery guests o Event organizing team, perspective of the crowd o Participant observation Consumer behavior - Why is the service ______ - - - - Intangible o Service is tangible: the customer cannot pick, touch or try an event before ethe ticket is purchased o Recommendations from family & friends o Word of mouth o Promotional or advertising campaigns o Brand image Inseparable o Production and consumption of the service are inseparable in events o Unlike purchasing and consuming a product elsewhere Perishable o Produced and consumed on the day of the event itself Variable o Markets that are tightly segmented into a group of people with a common interest, members of the group may have differing perceptions of the benefits LESSON 8: BRAND CO-CREATION AND SOCIAL MEDIA Co-creation - Is getting the community outside the event organization involved in the creation of the event Benefits of co-creation - - Increased innovation capacity o Skills of people in the organization without having to hire a new team Increased innovation velocity Reduced innovation risk Increase flow of quality ideas and concepts into your development pipeline Accelerated time to market with new products and service Product ideas Service concepts Promotional ideas Brand development Facebook for events management - - Before the event o Create a company and event page o Communicate While the event is taking place o Live and wider audience After the event o Capture customers Twitter for events management - - - Before the event o Share the importance o Hashtag in all marketing platforms During the event o Share tweets o Set up a twitter wall o Hashtag After the event o Plan next event Next week - Retreat Wednesday – Friday Long quiz on Saturday 2 sets of 25 items quizzes
