PRINCIPLES AND PRACTICES OF

EVENTS MANAGEMENT




THE MARKET DEMAND FOR EVENTS


Objectives

1. To examine the scope and scale of the events
business.

2. To apply the determinants of demand for
events.

3. To illustrate the structure of demand for
demands.

Essential reading

SHONE, A., and PARRY, B., 2010. Successful event
management. 3rd ed. London: Thomson. Chapter 2.

PRICKET, R., 2002. The key to the
show:http://www.ISPAL.org.uk[accessed 2 Nov 2010].
Please see reader.


IMPORTANT TO QUANTIFY
(MEASURE) AN EVENT

USEFUL TO KNOW SIGNIFICANT TO
A LOCALITY (LOCAL
ECONOMY/TOURIST BENEFITS)
DATA CRUCIAL FOR PLANNING
PURPOSES (E.G. SERVICES AND
SPORTS FACILITIES)
ORGANISATIONS (STAKEHOLDERS)
NEED DATA TO GAUGE DEMAND /
SUCCESS OF EVENTS
THE MARKET DEMAND FOR EVENTS

NEED TO PREDICT DEMAND

RAPID DEVELOPMENT OF SPECIALIST EVENT
MANAGEMENT COMPANIES
REASONS: Increased disposable income/wealth
Peace in western society
More travel and experience of events




THIS HAS COMBINED WITH AWARENESS
OF TRADITIONS (E.G. OPERA AT
GLYNDEBOURNE)


AS DEMAND GROWS THEN SERVICE
SUPPLIERS GROW






ORGANISERS ARE
INTERESTED IN WHAT
MOTIVATES US TO
PARTICIPATE/VISIT IN ORDER
TO ENSURE SUCCESS

(PRODUCT V SERVICE) WE
GENERALLY KNOW DEMAND
FOR PRODUCT, BUT SERVICE
DEMAND PROBLEMATIC.

DEMAND COULD BE SUPRESSED BY FACTORS
UNKNOWN E.G. LACK OF DISPOSABLE INCOME AT
SPECIAL TIMES OF YEAR

LATENT DEMAND MAY BE RELEVANT E.G. EXPANSION
OF EUROSTAR SERVICES TAPPED INTO LATENT
DEMAND TO VISIT EUROPE WITH EASE AND COMFORT






.
SIZE AND SCOPE OF EVENTS
MARKET

DIFFICULT TO JUDGE:
DIVERSITY/FRAGMENTATION OF
BUSINESS

HELPFUL TO LOOK AT EVENT
SECTORS (E.G. HOW MANY AND
PARTICIPANT NUMBERS).

- EXAMPLES:
REGIONAL EVENTS
WEDDING
BUSINESS
(APPROX. 2-6 BILLION)
SPORTING EVENTS/
SPECIFIC SPORTS


.
WEDDING BUSINESS BASED ON KNOWN WEDDINGS (REGISTERED) AND
AVERAGE COST OF WEDDINGS.

PROBLEM THAT MANY VOLUNTARY EVENTS DO NOT COLLECT DATA

PROFESSIONAL EVENTS NEED DATA TO INFLUENCE FUTURE PROVISION
(OFTEN ONLY FOR THAT EVENT)




NO COMMON FORMAT FOR GATHERING DATA
DEMAND IS OFTEN BASED ON CASUAL ESTIMATES

EVENT REPORTING LIMITED AND PREDOMINENTLY ONLY PROVIDED
AT ADMISSION PAID EVENTS.

GIVEN TIME WE CAN LOOK AT DEMAND E.G. WHO WILL ATTEND,
THEIR MOTIVES AND WHAT BENEFITS ACCRUE.
.

RICHARDS (1992) AREAS FOR CONTINUOUS MONITORING
VISITOR NUMBERS
VISITOR SPEND
VISITOR ACTIVITY AND PARTICIPATION
ADVERTISING EFFECTIVENESS
VISITOR SATISFACTION

INDUSTRY VIEW THAT ORGANISERS / EVENT MANAGEMENT
COMPANIES NEED TO RECORD MORE COMPREHENSIVELY
THESE INDICATORS AND PUBLISH IN PUBLIC DOMAIN.

WILL HELP RAISE INDUSTRY PROFILE / HELP PLANNING
FACILITIES / TRAINING / AND FOCUS MARKETING AND
PROMOTIONAL EFFORTS

DETERMINANTS AND MOTIVATIONS
ASSESSMENT OF MARKET FORCES IS A CHALLENGE
GIVEN VARIETY/FRAGMENTATION OF BUSINESS
HISTORICALLY DEMAND FOR EVENTS DETERMINED
BY SOCIAL FACTORS E.G. NEED FOR SOCIAL
INTEGRATION, RE-ENFORCEMENT OF SOCIAL
NORMS, INTERACTION BETWEEN INDIVIDUALS AND
COMMUNITIES







IN CONTEMPORARY TIMES THESE NEEDS
DRIVEN BY ECONOMIC / ORGANISATIONAL /
POLITICAL / STATUS/PHILANTHROPIC AND
CHARITABLE NEEDS.

PRIVATE SECTOR INVOLVED DUE TO CLEAR
DEMAND AND MARKET OPPORTUNITIES
DRIVEN BY DEMOGRAPHICS AND IMPROVED EDUCATION

EVENTS AS VISITOR OR PARTICIPANT

GROWTH OF CONFERENCES / EXHIBITIONS / PRODUCT
LAUNCHES

RANGE OF MOTIVES FOR EVENT (PRIMARY /
SECONDARY)
E.G. DINNER PARTY: Primary = Entertain
Secondary = Show off house, belongings
E.G. ATHLETICS COMP: Primary = Competition
Secondary = Raise funds / social integration


MOST EVENTS DO NOT HAVE JUST ONE MOTIVE

GETZ (1997) STATES PERSONAL MOTIVATION IS KEY
(SATISFIES PERSONAL NEEDS)

HOWEVER NOT ALWAYS THE CASE E.G. MAY ATTEND
CONFERENCE BECAUSE SENT THERE






POTENTIAL MOTIVES
- PERSONAL EXPECTATIONS
- TOURISM
- SUPPORT FOR OTHERS
- RELAXATION / ENTERTAINMENT

FOR PAY EVENTS ABILITY TO PAY IS AN ISSUE FOR
EVENTS MANAGERS
(SECONDARY COSTS: TRANSPORT / CATERING)










WHEN PLANNING THERE MAY BE NO MARKET
INFORMATION TO HELP ASCERTAIN DEMAND (STILL
SEARCH FOR CLUES)

ATTENDANCE ESTIMATES ARE JUST ESTIMATES

MARKET RESEARCH ON LIKELY ATTENDANCE USUAL.
HOWEVER DIFFERENCE BETWEEN INTEREST AND
ACTION

MANY EVENTS HAVE EVENTS WITHIN THEM (E.G.
FESTIVAL MAY HAVE SMALLER EVENTS WITHIN)

VILLAGE FETE WILL HAVE DIFFERENT SEGMENTS
DIFFERENT MARKET SEGMENTS

THE STRUCTURE OF DEMAND FOR EVENTS

SUCCESSFUL DEPENDENT ON ORGANISERS BEING
INTERESTED IN POTENTIAL DEMAND

MARKET (CONSUMER) EXPECTATIONS WILL ONLY BE
MET IF YOU UNDERSTAND AND PROVIDE FOR THEM

ANNUAL / BI-ANNUAL EVENTS HAVE A DEGREE OF
ATTENDANCE PREDICTABILITY


AWARENESS OF PERISHABILITY
(WEATHER IMPLICTIONS E.G. 2000
BRITISH GRAND PRIX AT SILVERSTONE)
EVENTS BEYOND YOUR CONTROL


DEMAND COULD BE ONE OF FOUR
CURRENT DEMAND.
That which our event satisfies at the moment
FUTURE DEMAND
That which our event could satisfy over a normal growth period
3. LATENT DEMAND
That which is sleeping until you provide an event for
it
4. SUPPRESSED DEMAND
That which exists for our event but cannot get to it due to being suppressed by
price, time, availability, lack of disposable income

OTHER EXAMPLES: A TOWN MAY HAVE
DIFFERENT EVENTS CATERING FOR DIFFERENT
DEMAND / PARTICIPANTS

DOES THE EXPERISE STILL EXIST TO CONTINUE
AN EVENT?

SUMMARY
FRAGMENTATION MAKES IT DIFFICULT TO
MEASURE
LOOK AT DEMAND FOR INDIVIDUAL
EVENTS
EVENTS ARE LARGELY SOCIAL OCCASIONS