The Impact of Relationship The Impact of Relationship Marketing Strategy on Marketing Strategy on Host Host Community through Community through Special Special Events and FestivalsEvents and Festivals

Razaq RajRazaq Rajand Sai and Sai

Suman.YerrapatruniSuman.YerrapatruniUK Centre for Events ManagementUK Centre for Events Management

Leeds Metropolitan UniversityLeeds Metropolitan University

Main Aims of the PaperMain Aims of the Paper

Explore the role of relationship Explore the role of relationship marketing within special eventsmarketing within special events

Examine role of Festivals in the Examine role of Festivals in the Events Companies.Events Companies.

Mini case studies Mini case studies has been used has been used to offer discussion points on the to offer discussion points on the hosting of outdoor events.hosting of outdoor events.

Definitions of Relationship Definitions of Relationship marketingmarketing

The concept of marketing mix The concept of marketing mix paradigm was introduced around 40 paradigm was introduced around 40 years ago.years ago.

Today it started to loose its Today it started to loose its importance as markets tend to importance as markets tend to change and new approaches and change and new approaches and trends are adopted in the markets.trends are adopted in the markets.

Definitions of Relationship Definitions of Relationship marketingmarketing

Gummesson (1990) defined Gummesson (1990) defined relationship marketing as ‘Marketing relationship marketing as ‘Marketing can be viewed as the building, can be viewed as the building, maintenance, and liquidation of maintenance, and liquidation of networks and interactive networks and interactive relationships between the suppliers relationships between the suppliers and customers, often with long-term and customers, often with long-term implications implications

Definitions of Relationship Definitions of Relationship marketingmarketing

Gronroos (1996) provided his Gronroos (1996) provided his definition of relationship marketing, definition of relationship marketing, He defined ‘relationship marketing is He defined ‘relationship marketing is to establish, nurture and enhance to establish, nurture and enhance relationships with customers and relationships with customers and other partners, at a profit, so that the other partners, at a profit, so that the objective of the partners involved are objective of the partners involved are met. met.

Special Events SectorSpecial Events Sector

The term special events can be The term special events can be categorized from western music categorized from western music concerts to devout religious festivals, concerts to devout religious festivals, glitzy sports contests to natural glitzy sports contests to natural phenomena (Mintel, 2005). phenomena (Mintel, 2005).

Special Events SectorSpecial Events Sector

The term ‘Special Events’ is used to The term ‘Special Events’ is used to describe events that are first-class or describe events that are first-class or extraordinary in terms of the extraordinary in terms of the widespread public recognition they widespread public recognition they receive.receive.

Special events enrich the quality of life Special events enrich the quality of life for local people and attract tourists from for local people and attract tourists from outside the area on account of their outside the area on account of their uniqueness. uniqueness.

Special Events SectorSpecial Events Sector

Special events sometimes become Special events sometimes become synonymous with and dependent on synonymous with and dependent on the place where they are held. the place where they are held.

The primary goal of special events is The primary goal of special events is to develop recognition for the local to develop recognition for the local community and festival organisers.community and festival organisers.

Special Events SectorSpecial Events Sector

The host community benefits from The host community benefits from special events both socially and special events both socially and economically.economically.

Special events are also typically Special events are also typically dependant on the large outlay of dependant on the large outlay of public monies.public monies.

Hosts' Perceptions of Hosts' Perceptions of EventsEvents

Wicks (1995) found that business Wicks (1995) found that business owners and managers felt it was owners and managers felt it was most important that the production most important that the production of the event brought the community of the event brought the community together generated an economic together generated an economic benefit to businesses, and promoted benefit to businesses, and promoted a Positive image for the host town.a Positive image for the host town.

The Impact of Tourism on Host The Impact of Tourism on Host CommunityCommunity

Reason for staging Festivals Reason for staging Festivals

Generic reasons why nonprofit andGeneric reasons why nonprofit andgovernment entities stage festivals:government entities stage festivals:

Recreation/socializationRecreation/socialization Culture/educationCulture/education TourismTourism Internal revenue generationInternal revenue generation Natural resourcesNatural resources AgricultureAgriculture External revenue generationExternal revenue generation Community pride/spirit.Community pride/spirit.

MethodologyMethodology The sample was selected by the interviews The sample was selected by the interviews

methods. methods. The research was conducted by three The research was conducted by three

approaches.approaches. It was broken down into three It was broken down into three sections to reflect the three areas, sections to reflect the three areas,

- - background information of thebackground information of the

organisation organisation ..

- - why the company wants to build why the company wants to build relationships relationships

with its customers or stakeholders.with its customers or stakeholders.

- completely focussed on the events Industry - completely focussed on the events Industry

Findings, Analysis and Findings, Analysis and DiscussionDiscussion

The main reason for these companies The main reason for these companies to develop long-term relationships was to develop long-term relationships was financial which a common thing was financial which a common thing was also across their company objectives.also across their company objectives.

A key and a common factor for the A key and a common factor for the developing relationship are the developing relationship are the personal or social relationships with personal or social relationships with the individual or a company the individual or a company

Average number of customers Average number of customers per yearper year

0

10

20

30

40

50

60

70

80

90

100

360 Wiz DNA Encore ESP Rainbow

Series1

Contribution of highest Contribution of highest earnings for the companies earnings for the companies

annual incomeannual income

0%

5%

10%

15%

20%

25%

30%

360 Wiz DNA Encore ESP Rainbow

Series1

Internal MarketingInternal Marketing

The two companies which are smaller The two companies which are smaller compared to the others in the case compared to the others in the case studies interviewed, ESP studies interviewed, ESP (Entertainment Solution Provider) (Entertainment Solution Provider) and Rainbow events, were the only and Rainbow events, were the only ones to involve all the staff in their ones to involve all the staff in their relationship development process.relationship development process.

Internal MarketingInternal Marketing

Four companies does not involve all the Four companies does not involve all the staff in developing relationships they staff in developing relationships they work with other internal departments work with other internal departments when building their relationshipswhen building their relationships

They do not want all of their staff to They do not want all of their staff to develop relationships if they do so then develop relationships if they do so then the costs will increase which the the costs will increase which the companies are not ready to bear them.companies are not ready to bear them.

Communication ProcessCommunication Process

All companies do a planned All companies do a planned communication process to maintain and communication process to maintain and develop relationships with their develop relationships with their customer/participants.customer/participants.

Have limited levels of interaction with the Have limited levels of interaction with the customers of the organisations. customers of the organisations.

There is evidence of increase use of There is evidence of increase use of technology in developing relationships technology in developing relationships with the customers/participants with the customers/participants

ConclusionConclusion

Business-to-business marketing firms create what Business-to-business marketing firms create what might be called a collaborative advantage by might be called a collaborative advantage by demonstrating special skills in managing demonstrating special skills in managing relationships with key customers.relationships with key customers.

By drawing on both special events and literature, By drawing on both special events and literature, it was identified that special events have a very it was identified that special events have a very important role to play in all the stages of important role to play in all the stages of relationship development.relationship development.

The case study approach helped to exploratory The case study approach helped to exploratory study into the way in which special events study into the way in which special events companies try to build and develop long-term companies try to build and develop long-term relationships through their events. relationships through their events.

Let’s movealong to anew topic.

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