events marketing week 10
TRANSCRIPT
Events MarketingWeek 10 - Marketing evaluation and control
Today we are going to
1. Introduce the concept of marketing evaluation and discuss its importance
2. Present some examples of operational and financial marketing controls
3. Discuss the role of budget management and provide a budget template
Implementation, Evaluation & Control
Implementation
Planning Control
Measurement
Evaluation
Source: Adapted from Masterman and Wood, 2006
Marketing Control Process
Marketing Plans
Actions
Outcomes
Compare outcomes with goals
Analyse deviations
Solve problems Exploit success
Learn & Revise
Formal vs.
Informal control
Information processing
Feedback
Goals
Source: Brassington and Pettitt (2006)
Marketing Control CycleCommunication objectives
Benchmarks/Standards
Measurement of performance
Effectiveness (relevance, clarity, credibility, response, satisfaction)Efficiency (reach, frequency, impact, cost)
Corrective Action
Reactive controlProactive control
Evaluation of performance
Return on Investment (ROI)Return on Objectives (ROO)
Marketing Communications Design1. Setting marketing communications
objectives2. Reviewing your stakeholders & formulating
marketing communications messages3. Defining which channels to use and how 4. Setting the budget5. Monitoring, evaluating & adjusting
Operational Marketing Control
Sales analysis1. By customer (e.g. particular sponsor)2. By product (e.g. session at a conference, exhibition space,
etc.)3. By sales representative – account manager in the events
management team4. By distribution channel (e.g. by a particular ticket retailer,
internet website, etc.)5. By region
Operational Marketing Control
Marketing Costs & Profitability Analysis
What are the shortfalls of this kind of measurement method?
Revenue• Product types
sold• Quantity sold• Prices
Marketing Costs• Advertising• Promotion• Market Research• Personal Selling• Distribution etc
less = Marketing profit
Tactical Metrics - Advertising
1. Universe2. Reach 3. Frequency4. Circulation (Paid and Controlled)5. Readership 6. Opportunity to see (OTS)
Gross Reach, Net Reach, OTS
The Financial Times The Economist
20,00020,000 30,000
Gross Reach in numbers = 90,000Net Reach = 40,000 + 50,000 - 20,000 = 70,000
OTS = 90,000 / 70,000 = 1.29
Adapted from a Slideshare by Prof Indrani Sen
Calculation of Average OTS
Event 1 Event 2 Event 3
50% see the event in total. 10% see ad twice. AOTS = Gross reach/Net reach
= 60 / 50 =1.2 Average O.T.S
Reach30%
Reach20%
Reach10%
Adapted from a Slideshare by Prof Indrani Sen
Tactical Metrics - Public Relations
1. Number of write-ups2. Equivalent media cost3. Positive vs negative coverage 4. Opinion leaders
Tactical Metrics Public Relations – The Barcelona Principles
• Principle 1: 'Goal setting and measurement are fundamental to communication and public relations'.
• Principle 2: 'Measuring communication outcomes is recommended versus only measuring outputs'.
• Principle 3: 'The effect on organisational performance can and should be measured where possible'.
• Principle 4: 'Measurement and evaluation require both qualitative and quantitative methods'.
• Principle 5: 'AVEs are not the value of communications'.• Principle 6: 'Social media can and should be measured consistently with
other media channels'.• Principle 7: 'Measurement and evaluation should be transparent,
consistent and valid'.
Tactical Metrics - Sales promotion
1. Number of voucher redemptions2. Sales related to a particular promotional activity3. Enquiries generated by particular activities4. Leads generated from a particular sales promotion5. Direct responses to a particular sales promotion6. Contact data collected during a particular sales promotion
Tactical Metrics - Personal selling
1. Sales per sales representative
2. Sales per lead
3. Number of pitches given
4. Invitations to bid
Tactical Metrics - Promotional events
1. Contacts made / opt ins2. Attendance figures3. Sales made at the event4. Trials run at the event5. Media coverage generated by the event6. Intended word-of-mouth7. Brand preference
Tactical MetricsNew media
1. Website: hits, registrations, opt-ins, click-throughs
2. Facebook: ‘likes’, members/friends/attendees
3. Twitter: followers, re-tweets
4. Videos: number of views, number of likes/dislikes
- CPC, CPA, CTR and Conversion ratios
Evaluation case study: Sense London
• Experiential event agency of the year 2012• An overview of what they do• Specialises in evaluation - examples
Operational Marketing Control
Other methods of operational control
1. Reports & Meetings – project status report2. Delegation & self-control - subcommittees3. Quality control – customer satisfaction surveys4. Financial control – BUDGET, break even point,
ratio analysis5. Timelines6. Management system – observation, surveys
Operational Marketing Control
1. So what is the bottom line?
2. Having a good plan and tracking its implementationi. Analyse the resources availableii. Identify tasks and responsibilities to be doneiii. Schedule the tasksiv. Monitor Work in Progress (WiP)v. Project evaluation – projected vs. actual
results
Financial Operational Control
1. Budget – a tool for planning and control of financial inflow/outflow
2. Cash flow control – discrepancy between receiving revenues and cost deadlines
3. Essential prerequisite for obtaining external funding for events
Financial Control - Budget Master budget vs. Functional Budget
Budget creation: Identifying sources of income Specifying cost items Following guidelines from supervisors/clients relating to
allocation of income/expenses Budget approval Budget tracking/adjustments
Planned vs. Actual Budget
Financial Control - Budget
Principles of budget setting:
Inertia based Business based Media based Competition based Dynamic based
Marketing Budgets – Potential sources of income:
1. Ticket sales / exhibitor sales2. Sponsorships/Partnerships3. Funds & Grants (local and national government)4. Donations5. Concessions (food/drinks)6. Merchandising (T-shirts, mugs, event photos, etc.)7. Advertising 8. Broadcast rights9. Special features (raffles, auctions, lottery, etc.)10. Membership/loyalty cards/fees (repeat visits)
Marketing Budgets –Major marketing expenditure items:
1. Administration2. Documentation (contracts etc.)3. TV/radio costs4. Print media costs5. Digital media costs6. Publicity stunts (guerrilla marketing – various
operational costs, e.g. permits, production of materials, etc.)
7. Hospitality8. Insurance9. Volunteers
Sample Marketing BudgetINCOME £ EXPENDITURE £ 1. GRANTS 2,000.001. Print marketing 15,700.001.1. Local council 2,000.00 1.1. Magazines 5,600.00
1.1.1. Magazine 1 2,500.002. TICKET SALES 7,000.00 1.1.2. Magazine 2 3,100.002.1. Early bird tickets 3,000.00 1.2. Newspapers 4,500.002.2. Family tickets 4,000.00
2. E-marketing 1,000.003. SPONSORSHIPS 23,000.00 2.1. Online banners 3.1. Sponsor 1 10,000.00 2.1.1. Banner design 250.003.2. Sponsor 2 8,000.00 2.1.2. Banner space 750.003.3. Sponsor 3 5,000.00
3. Guerrilla marketing 2,900.004. CONCESSIONS 7,700.00 3.1. Leaflets (3000 pcs) 150.004.1. Concession 1 3,200.00 3.2. Costumes/props 750.004.2. Concession 2 4,500.00 3.3. Staff 2,000.00
TOTAL 39,700.00 19,600.00PROFIT (LOSS) 20,100.00
Financial Control – Cash Flow
1. Event cash flow2. Supplier goodwill3. Negotiating payment terms, buying on credit4. All purchases relating to the event should be
approved and controlled by the event manager
5. Watch out for taxes and extra charges (e.g. service fees/charges)
6. Clarify delivery details, impose penalties for goods that are delivered late or do not meet the standards required by the event
Scheduling - Gantt Chart
Steps in the creation of a Gantt chart: 1. Defining the tasks to be completed2. Setting a timescale for each task3. Prioritising the tasks set4. Grid 5. Emphasizing milestones
Scheduling -Gantt Chart
Advantages of a Gantt chart:
1. Visually clear summary of the event schedule2. Effective communication and control tool3. Can point out problem areas or clashes in
scheduling4. Readily adaptable to all event areas5. Provides a summary of the history of the event
Scheduling
Jul Aug Sep Oct Nov Dec Jan Feb MarActivity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Investigate competition
Create marketing budget
Decide on the marketing tools
Contact last year's sponsors
Contact new sponsors
Finalize and sign sponsorship contracts
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Gantt Chart
SchedulingHow to do it
1. Work from the date(s) of the event backwards2. Make a list of all the activities that have to be
done and highlight the milestones – set the dates for these to be finalised
3. Have one master timeline with all the milestones highlighted & lots of separate functional timelines, staff timelines, period timelines (e.g. monthly, weekly, even daily...)
4. Clear identification of tasks and staff responsibilities
Follow-up reading
Evaluation and Control
• Masterman and Wood (2006) – Chapter 14
• Brassington and Pettitt (2004)– Chapter 21
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