Solution Manual for Integrated Marketing

Communications, 4/E 4th Edition Keith J. Tuckwell

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Solution Manual for Integrated Marketing Communications, 4/E 4th Edition Keith J. Tuckwell

Chapter 10
Experiential Marketing, Events, and Sponsorships

Learning Objectives

Students will be able to:

1. Explain the role and importance of event marketing as a vehicle for building relationships with
customers
2. Explain the importance of event marketing and sponsorships in contemporary marketing

3. Differentiate among the various forms of sponsorships

4. Evaluate the role of event marketing in the marketing communications mix

5. Assess the criteria that a marketing executive considers before participating in event marketing
and sponsorships

6. Identify and assess the various evaluation techniques that determine the effectiveness of event
marketing and sponsorship activities

7. Describe the steps in the event marketing planning

8. Evaluate various marketing strategies for making an event successful

9. Identify and explain the key elements of event marketing execution

Chapter Highlights

Traditional forms of marketing tend to bombard consumers with messages, and they are used mostly
because of their extensive reach and frequency. In many of these mediums, the communication is non-
personal; hence there is not a true connection between the brand and the consumer. Experiential
marketing, however, focuses on giving a target audience a brand relevant customer experiences that adds
value to their lives. When used effectively it’s a dialogue between the brand and the consumer.
Experiential marketing is a form of marketing that creates an emotional connection with the consumer
in personally relevant and memorable ways. Although a new term, experiential marketing is not new. It
includes product sampling, special product promotions, public relations, product seeding, and special
events. Figure 10.3 illustrates some unique experiential marketing campaigns.

In terms of investment, marketing budgets are shifting towards engagement oriented activities. .
Marketers are particularly increasing marketing budgets on social networking activities. Facebook is used
commonly as a meeting place, and there are multiple sites for brands like Coke that are both corporate
and consumer originated. Many of these sites promote communication and events. Events are the
centerpiece of an experiential marketing campaign. Examples of events are product launches, trade shows
and customer appreciation days. Read IMC Highlight: Experiential Marketing Pays Off for insight
into experiential marketing campaigns and how they affect purchasing decisions.

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One key element of experiential marketing is shopper marketing. Shopper marketing involves
understanding how consumers behave as shoppers in all channels (retail, catalogue, and web), and
ensuring that the customer has a positive shopping experience no matter how they do business with the
company. Shopper marketing is essential since 3 out of 4 purchase decisions are made in-store.
Successful shopper marketing needs collaboration between supplier and retailer. Brand interaction and
communication should be consistent across these three shopping environments.
A. Event Marketing and Sponsorships

Event marketing is the process, planned by a sponsoring organization, of integrating a variety of

communication elements behind an event theme. It involves developing, managing and promoting the
event. Promotion is essential to build awareness, sell tickets, and to generate publicity. Molson Coors and
Labatt include events in their marketing mix.

Event sponsorship is the financial support of an event in return for specified advertising and promotion
privileges (e.g., Bell Canada is investing $200 million to sponsor the 2010 Winter Olympics in
Vancouver). Large events usually have numerous sponsors; some who contribute more financial support
than others. The larger the investment by the sponsor the greater the privileges granted.

The most recent information available suggests that the value of event marketing in North America is
$18.1 billion. The Canadian event marketing market is estimated to be $1.55 billion. Automobile
manufacturers, financial institutions, petroleum companies and packaged goods companies are among the
leading industries involved in sponsorships Figure 10.5 shows leading sponsorship investors in North
America.

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2. Classifications of Event Marketing

Event marketing is divided into three main areas:

 Sports Sponsorship – Support of amateur and professional sports varies from global participation
down to grassroots participation in local communities. In Canada, sports sponsorships account for
46 % of all sponsorship investments. This is larger than investment in festivals, the Arts, cause
marketing, or entertainment. Large organizations such as banks and financial institutions,
automobile manufacturers, oil companies, and beer companies are active in sports event marketing.
Ambush marketing is a recent trend in sport marketing. An ambush marketer leaves an impression
of being a sponsor by advertising near the event. Their presence confuses consumers as to who the
actual sponsor is. A classic example is Nike’s efforts to plaster Atlanta, the site of the 1996 Atlanta
Olympics, with billboards. This despite the fact that they had made a choice not to be official
sponsor of the Olympics Games. Venue marketing or venue sponsorship is another hot trend. This
involves naming rights to sports facilities for considerable sums of money (e.g., Air Canada Centre
and Bell Centre). Another trend is value-added sponsorships. This usually involves sponsorship of
a prominent participant in a sports event Reebok has invested heavily in Crosby hoping he will help
build their hockey business.
 Entertainment, Tours and Attractions – This involves company and celebrity relationships among
high profile entertainers and events. They are and are very popular with companies wishing to reach
younger audiences (e.g., Molson wanting to reach 19 to 14 year-olds at rock concerts).
Opportunities in this area include film festivals and a variety of television sponsorships (e.g., the
successful Canadian Idol show on CTV). Coca-Cola replaced PepsiCo for the Academy Awards.
This is because the target audience for the show tends to be an older demographic and PepsiCo is
aiming at a younger group.

 Film Festivals – Film festivals reach a cross-section of adult audiences. Sponsors get to hobnob
with the stars when involved in this activity. Very often the festival organizers will tailor a
sponsorship package to meet the specific needs of a potential sponsor. In other words, different
sponsors have different objectives and need to leverage the event in different ways. The Toronto
Film Festival (TIFF) attracts a young, hip, urban, educated and affluent target market, which
appeals to sponsors. Bell Canada averages $4 million to the TIFF.

 Culture and the Arts – This area embraces dance, film, literature, music, painting, sculpture and
theatre. Audience size is the differentiating feature of cultural sponsorships. Typically, the audience
is smaller but more upscale so it is attractive to marketers of luxury goods (e.g., luxury automobiles
such as BMW and Infiniti) and financial services companies (e.g., RBC Financial and others). Arts
and cultural sponsorships generate goodwill for the sponsor. The public perceives such sponsors as
good contributing members of the community. Most firms view this type of sponsorship as
strategies for reaching their corporate citizenship objectives.

 Cause Marketing Sponsorships – This involves supporting issues that are important to the company
and its customers. Companies often do marketing research to determine what issues are paramount
among its customers. CIBC, for example, supports “Run for the Cure” and McDonald’s supports its
own initiative called “Ronald McDonald Children’s Charities.” These types of programs are fully
supported by media advertising that encourage the public to participate or give.

 Television – Television sponsorships represent new opportunities in the wake of the declining
impact of the standard 30-second commercial. Hockey Night in Canada is sponsored by Molson’s,
GM, Canadian Tire and Tim Horton’s. The sponsorship is a perfect fit for each brand’s positioning.

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C. Considerations for Participating in Event Marketing

Generally when companies are considering an event sponsorship, they aim to achieve two goals – the first
is creating a favourable impression with their target audience, and the second being audience engagement
with their brand. An important consideration is “fit.” The event is a good fit if it enhances the reputation
of the company and the consumer’s awareness of the brand. Generally speaking, event sponsorship is a
vehicle for building brand awareness and enhancing the reputation of a company or brand. Several
considerations should be examined before jumping in:

 Select Events Offering Exclusivity – Direct competitors must not be involved. Also, if there are too
many sponsors, the value of the sponsorship is diluted. Many companies signing a sponsorship deal
for an event are looking for exclusivity. For example, as a major sponsor of the Vancouver 2010
Olympics, McDonald’s shuts out all other fast food restaurants from the event. Sponsors should be
prepared for possible ambush marketing, and anticipate competitive promotional tactics to combat
the profile they have gained from such a sponsorship.

Sponsorships Must Complement Other Promotional Activity – The event must fit in with
advertising and promotion strategies. Tire companies and oil companies are a natural fit for
automobile racing sponsorships as cars and speed may be part of advertising messages placed
elsewhere. In the months preceding the Super Bowl game, PepsiCo leverages their sponsorship of
the Super Bowl with advertising of a Super Bowl contest associated with their Pepsi-Cola and Frito
Lay brands.

 Choose the Target Carefully – Make sure the event reaches your target. For example, symphonies
reach older, upscale targets while rock concerts reach younger audiences. Matching the target is
more important than the size of the audience.

 The Event Must Have an Image that Sells – Can you benefit from the prestige and status of the
event? The Olympics are a global event and very suitable for a global marketer such as Coca-Cola
or Visa. They reap positive publicity from this association. The event and the products that sponsor
the event should have comparable images.

 Formalize Established Selection Criteria – Determine the long-term benefits and assess them
against the short-term costs. Events come and go quickly! It is wiser to be associated with an event
that is popular and long-term. Objectives for such things as brand association with the event, image
improvement, and sales should be determined in advance of the event.

Refer to IMC Highlight: Hockey Sponsorships Recession-Proof for insight into how companies make
sponsorship decisions.

D. Measuring the Benefits of Event Marketing

Despite large sums of money spent on event marketing, true results are difficult to measure. However, the
same can be said for a lot of other forms of marketing communications. Primary research in the form of
pre-event and post-event measures may be necessary to gauge effectiveness. Some indicators of
effectiveness include the following:

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  Awareness – Do people recall the event sponsor and is there an association of the brand with the
event?

 Image – Was there a change in image among the target audience based on event participation?

 New Clients – Did the event produce a new list of customers?

 Sales – Did sales or market share increase in the post-event period?

 Target Reach – Did the event delivery constituency? Reaching the desired target in small numbers
is more important than reaching a large audience that is not part of the target.

 Media Coverage – What editorial coverage was generated? A common benchmark in sports event
marketing is 4:1, meaning $4 in coverage for every $1 invested in the event.

Successful sponsorships are integrated seamlessly with corporate marketing and marketing
communications plans.

E. Planning the Event

Planning an event is an exhaustive process so the task is best left to a specialist. An organization’s
primary role is to identify the objectives, the target audience and the timing. How much money is
available to plan and promote the event is another consideration. The event planners role is to stage the
event, have adequate and trained staff available, ensure that operations run smoothly, and be prepared on
safety and security issues. Figure 10.7 lists the key elements of an Event Proposal.

 Event Concept Development – The initial planning stage involves concept development. The
event’s purpose must be established. Will the event inform or entertain prospective clients? The
purpose will have an impact on the tone and style of event. For example, a trade show is very
different from an annual fair such as the Calgary Stampede. The theme of the event is linked to the
purpose and should consider the needs of the audience. The next consideration is venue. Will the
venue be a traditional setting or some place unique. Technical issues such as sound and lighting will
influence the venue decision. Financial resources must be considered immediately. Event planners
make quick decisions based on the funds that are available. Finally, timing is considered. Some
events are held at the same time each year while others are linked to the season or the weather. Time
related factors include season, day of week, time of day, and duration of the event.

 Designing the Event – With the concept in place, attention turns to design. The text gives an
illustration for designing a business conference. Design considerations include venue, room layout
(for various functions), how to employ technology, managing food and beverage requirements,
dealing with external suppliers and ensuring adequate numbers of hotels rooms are available.

Setting Objectives – Quantitative objectives are needed to justify the financial investment. Objectives
may relate to the size of audience reached, the ability to reach a specific audience (the quality of reach),
sponsor recognition levels, sales of sponsor products, the economic impact of the event, and profit. A
direct link to sales is not possible but it may be possible to measure changes in awareness or intent to
purchase based on attendance at an event.
 Planning Tools – The initial stage of planning is the proposal. The proposal identifies the
objectives and details about organization, layout, venue, technical requirements, and any other key
considerations. A timeline chart is a vital planning tool. The timeline indicates when various
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 planning activities start and finish. A schedule of daily events, often called a run sheet, is also
essential. Figure 10.18 provides a sample run sheet for the Ontario Colleges’ Marketing
Competition, November, 2002.

F. Marketing the Event

Marketing an event is no different than marketing a product. An event requires strategic use of the
marketing mix:

 Product Strategy – Features and benefits of the event are identified in order to attract the desired
target audience. Why should someone attend? This question must be answered. What will motivate
the target to want to participate in the event?

 Pricing Strategy – Price plays a role in motivating attendance. Charge too much and the value is
questioned. Charge too little and the value is questioned. The price-value relationship has to be
perceived as fair. Pricing an event is much like pricing a product – considerable psychology is
involved. How people will actually purchase the tickets must be considered as well. Plan for
purchasing of tickets is also important.

 Marketing Communications Strategy – Initial communications decisions are branding decisions

(e.g., name, logo, color scheme, and image). A consistent presentation results in a “branded” look
for the event. Advertising strategies are based on the target market profile and how best to reach the
target given the resources available. The content of the message and the style of delivery are such
that it will motivate the audience to attend. The size of the media budget dictates media decisions.
Many events also have sponsorship partners who help defray operational costs. The sponsor’s brand
advertising and promotion strategies are often tied to the event and help create awareness and
interest in the event. Public relations play a role in generating publicity for the event. Appropriately
timed press conferences and press releases help build pre-event publicity. See Figure 10.20 for a
press release announcing details of the Tim Horton’s Brier, Edmonton, 2013. An event website is
also a mandatory. The site must provide all of the essential information a potential participant would
want to know.

G. Event Marketing Execution

Execution involves specific details and planners usually work from checklists to ensure that all activities
occur on time.

 Site Selection and Staging – The scene of the action (the stage) is determined based on
considerations such as theme, sound and lighting requirements, and availability of essential services
(e.g., food, accommodation, technical support and venue management experience).

 Staffing – How many people are required to make the event a success. Organization charts that
outline roles and responsibilities are needed in the pre-event, event, and post-event stages.

 Operations and Logistics – Everything must start and finish on time. Event set-up is referred to as
bump-in and involves setting up structures and facilities required for the event. Logistics is about
getting people and equipment into the right place at the right time so things run smoothly. The
process of tearing everything down is called bump-out.

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  Safety and Security – There must be a plan that considers crowd behaviour and methods for
controlling crowds should the need arise. Risk management plans for major events such as Grand
Prix racing need to prepare for nearly every eventuality. This includes managing crowd behaviour
and controlling crowds should the need arise. Everyone at an event, including participants,
volunteers, and staff must feel safe. Refer to the text for some examples of disasters that have
occurred at sporting events around the world. You only have to look at some of the disasters that
have happened with crowd control at soccer matches, to understand that you need to have a risk
management plan in place to ensure the safety and security of the people attending your event.

Answers to End of Chapter Questions

Review Questions

1. Marketing communications activities include all forms of promotion and any kind of interaction
that a consumer or business has with your brand. Experiential marketing pertains specifically to a
consumer or businesses interaction with your brand that utilizes one or more of our five senses.
The goal is to create a unique, memorable and hopefully emotional connection with the consumer
which creates a positive impression of that brand in their mind. The key benefits are that it is truly
interactive and engages your target audience with your brand directly.

2. Shopper marketing involves managing a consumers experience across all retail mediums.
Shopper marketing ensures that consumers are engaged, and that they are having a positive,
consistent retail experience with your brand no matter the medium.

3. Event Marketing involves, planning, managing and promoting an event whereas sponsorship only
involves paying a fee to be part of an event and get advertising privileges in return.

4. Ambush marketing occurs when a sponsor places advertising (usually a lot of it) near an event
that is being sponsored by a competitor. The presence of the ambusher instills some confusion
into the minds of consumers to the point they may not be sure which brand is the actual sponsor.
Compared to the high cost of sponsoring big events, this is a cost-effective way to reap marketing
benefits. Some believe such a practice is unethical.

5. The main classifications of event marketing are sports marketing: entertainment, tours and
attractions; culture and the arts; cause marketing; and product promotional tours. Refer to the
chapter highlights section if a brief description is needed.

6. The basic criteria an executive might consider prior to participating in event marketing include: is
there exclusivity; will the sponsorship compliment other advertising and promotions; will the
event reach the target; does the event have an image that sells; and will it help achieve sales and
market share objectives.

7. Some common measures of event marketing effectiveness include: awareness improvement

(association with the event), image enhancement, ability to attract new clients, increases in sales
and market share, ability to reach as specific target, and media coverage (publicity generated by
the event).
8.

9. The basic steps in the event marketing planning process include: developing the event concept
(purpose, theme and venue); designing the event (venue, layout, suppliers, and rooms); setting
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 objectives; developing an event marketing strategy (applying the marketing mix to the event); and
marketing execution (schedules and timelines to ensure everything happens on time).

10. When developing the event concept the key decision areas include: defining the purpose of the
event; establishing an event theme that can be marketed to the intended target; selecting the right
venue; identifying adequate resources so that the event will be successful; and timing the event so
as to maximize participation.

11. When designing the event the key decision areas include: determining who should attend (there
could be a variety of targets); making sure that the venue meets all expectations (location and
facilities available); ensuring that the layout of all rooms meets expectations and that technology
is available); and ensuring that proper and experienced suppliers can meet demands in the time
frame provided.

12. A proposal includes the objectives of the event, details about organization, layout, venue,
technical requirements, and any other key considerations. A timeline chart indicates when
various activities start and finish. The timeline chart is an essential tool in the planning stages (it
constantly changes). A run sheet is a schedule of daily events that shows the dates, times, and
locations of all activities.

13. Defining the event involves product related decisions. An event is much like a product so unique
selling points and benefits must be determined. The benefits are used in marketing
communications strategies and executions to attract potential participants to the event.

14. A key decision is site selection The site is selected based on the size of the event, the suitability
of the site for planned activities, the availability of accommodations, food and attractions, and the
availability of technical support. Staging involves the layout of the event.. Staffing usually
involves the use of paid staff and volunteers and determining the roles and responsibilities of all
staff involved in the event. Operations and logistics involve allocating time for proper set-up
(bump-in), executing the event smoothly; and tearing down materials after the event (bump-out).
Safety and security is concerned with implementing the event with a minimum of disruption and
ensuring that all participants and staff are in a safe and protected environment.

Discussion and Application Questions

1. Students should uncover some good reasons why a company should be involved with cause-
related event marketing. For certain it helps promote goodwill and presents a solid and desirable
corporate image. Many people don’t perceive big business in a favourable light, but the facts
show that businesses do make a very worthwhile social contribution to society.

2. Answers to this question will vary. It could be a big waste of money, particularly if the celebrity
fades fast. Benefits for Reebok to sponsor Sidney Crosby include buiding Reebok’s hockey
business, increasing the value of the Reebok brand, and reinforcing the Reebok slogan “I am
what I am”.

3. Responses to the mix and match question (company with type of sponsorship) will vary. Ask the
students to provide an explanation for their choices. Also remind students that the “fit” is the
most important factor. Sometimes small sponsorships that reach the intended target specifically
are much better than large scale events that go well beyond the target profile.
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S o l u t i o n M a n u a l f o r

4. Responses will vary. Ensure that the students develop both qualitative and quantitative
objectives.
5. Experiential marketing involves street level marketing campaigns and product promotional tours.
Students should be able to develop a reasonable list of strengths and weaknesses and be able to
determine situations when such a technique is worthwhile.

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V i s i t T e s t B a n k B e l l . c