MODULE

in
INTRODUCTION TO
MEETINGS, INCENTIVES,
CONFERENCES AND EVENTS
MANAGEMENT (MICE)
 CHAPTER 1 THE MEANING AND IMPORTANCE OF MICE

Learning Outcomes

At the end of this chapter, you should be able to;

1. Explain the meaning of MICE
2. Define meeting, incentive, conference, convention, exhibition, exposition, and event;
3. Describe the role of the MICE industry in the tourism and hospitality industry;
4. Identify the components of the MICE industry;
5. Describe the history of the MICE industry;
6. Explain the growth of the MICE industry, and
7. Discuss the importance of the MICE industry.

Meaning of MICE

MICE is an acronym for meetings, incentives, conferences, conventions, and

exhibitions industry. The MICE industry is one of the fastest-growing and lucrative areas of
the tourism and hospitality industry.

Definition of Terms

The following are the definitions of each sub-sector of MICE:

1. Meeting-gathering of people for a common purpose such as business, social, or religious

purpose. Meetings do not include exhibits.
2. Incentive-reward event intended to showcase persons who meet or exceed sales or
production goals. It is also called incentive program.
3. Conference-participatory meeting designed for discussion, fact-finding, problem-solving,
and consultation. It is used by an organization to exchange views, convey a message,
open a debate, or give publicity to some area of opinion on a specific issue. No tradition,

1
 continuity, or periodicity is required to convene a conference. Compared to a congress, a
conference is smaller in scale.
4. Convention- gathering of individuals in which the planning activity of the attendees is to
attend educational sessions, participate in meeting/discussions, socialize, or attend other
organized events. Conventions include exhibits. Congress is the European term for
convention.
5. Exhibition-the display of products or promotional material for purposes of pubic relations,
sales, and/or marketing. It is an activity designed for suppliers of products, goods, and/or
services to demonstrate and promote to a certain market. It is the European term for
exposition.
6. Exposition- larger in scale than an exhibition. It generally consists of a huge public
display of the goods and services of a particular industry.
7. Event- an occurrence, happening , and activity designed around various themes in order
to create or enhance interest in a destination.

The Role of MICE in the Tourism and Hospitality Industry

The MICE industry is an exciting and profitable segment of the tourism and hospitality
industry. A major source of revenue for the tourism and hospitality industry comes from the
meetings, incentives, conventions, and exhibitions segment of the industry. As the tourism
and hospitality industry saw great increases in expenditures, meetings, incentives,
conventions, and exhibitions experienced great growth as well. With the many changes the
tourism and hospitality industry has undergone in the past 20 years, the importance of MICE
has become more recognized. The need to communicate with one another face-to-face has
been the driving force behind the growth of this industry.

Components of the MICE Industry

There are four major components of the MICE industry, namely: planners and groups
they represent, host facilities, services, and exhibitors.

2
 Planners are individuals or groups that plan meetings, conventions, and exhibitions.
Planners into a number of categories such as corporate meeting planners, association
meeting planners, and independent meeting planners. Corporate meeting planners work
exclusively for a corporation.Association meeting planners work exclusively for an
association. Independent meeting planners contract their services to both associations and
corporations.

Host facilities provide lodging, meeting rooms, food and beverage, as well as a
number of other services for groups attending meetings, conventions, or exhibitions. Host
facilities include hotels, conference centers, resort hotels, universities, bed and breakfast
inns, etc.

Services refer to individuals and organizations that provide support for the meetings,
conventions, and exhibitions, segment of the tourism and hospitality industry. Service
suppliers include transportation companies, attractions, tour guide companies, and
entertainers.

Exhibitors are financially link with all segments of the MICE industry. They provide
much of the revenue needed for the planners to hold meetings, conventions, and exhibitions.
Exhibitors are persons who work for the company. Other names for an exhibitor are
advertising director, communication director, or director of marketing. Who is involved with the
corporate exhibit program. The main aim of exhibitors is to introduce their products, both new
and old, to an interested audience.

History of the MICE Industry

Archaeologists who investigated ancient cultures have found ruins that served as
places where primitive people gathered to discuss common interests such as hunting plans,
war activities, peace, negotiations, and tribal celebrations. Each village or hamlet had its
common gathering place. As geographical areas grew, cities became the meeting places for
people who wanted to trade goods or discuss common problems. As cities became the
center of activities for geographical regions and transportation improved, the desire of the
people to gather and discuss things of common interest became more widespread. Trade
associations, professional, fraternal, and religious organizations assembled to discuss
3
relevant issues. Discussions of trade regulations, as well as selling or trading of goods, were
the main reasons for convening. Many trade, professional, fraternal, and religious
associations have historical roots in Europe. In the United States, such activity took place only
in the mid-1800s. As America grew, so did its trade, professional, fraternal, and religious
associations.

In the Philippines, Manila, its capital, is proud to have pioneered the international
meeting industry in Southeast Asia 1976 was a memorable year for the region. It was in this
year that Manila opened its door to Asia’s first fullfledge convention center- The Philippine
International Convention Center (PICC)-to the International Monetary Fund/ Word Bank
Meeting. Since then. Manila has developed its professionalism and expertise. It has
developed an infrastructure of deluxe accommodations, efficient transportation network, and
modern telecommunications to support a versatile range of meeting facilities. In 1996, manila
celebrated 20 years as a leading destination for meetings, conventions, and exhibitions.

The Growth of the MICE Industry

The growth of the MICE industry has been remarkable. Most of this development has
occurred within the past 10 years. This growth has been due to several factors: meeting
planners associations, the airline industry, the lodging industry, convention centers,
conference centers, meeting technology, and ground handlers.

Meeting Planners Associations

Development of associations is connected with meeting planners.These associations

not only grew in numbers but also expanded the list of services they offered to their members.
Majority of these associations increased their emphasis on education. Other growth factors
included the rise of the independent meeting planners, the increase in the number of women
planners, certification and development of standards, and the integration of travel agents into
the profession.

4
Airline Industry
The advancement of the airline industry enabled people to travel quickly and efficiently.
This was made possible by the introduction of the jet airplane-an invention that revolutionized
transportation worldwide. A relevant factor was the deregulation of the airline industry which
resulted in vigorous competition among airlines to attract more passengers. This caused a
reduction in the cost of air travel.

Lodging Industry
The lodging industry recognized the financial importance of MICE. Hotels grew and
became convention centers. Hoteliers learned to adapt their services to different clients.
Property marketing directors learned how to work with meeting planners.

Convention Centers
Convention centers expanded in terms of exhibition spaces, accessibility, and storage
facilities, They were able to accommodate all the activities of a convention and trade show
under one roof. Traffic was improved, allowing large numbers of people to move quickly from
one area to another.

Convention Bureaus
Convention bureaus grew rapidly both in numbers and size of operations. The number of
bureaus has doubled since 1980, from 100 to more than 250. Their operators have become
more professional.
They actively participate in industry and association affairs.

Conference Centers
Conference centers changed their appearances during the past two decades. For
some time they maintained a “business only” appearance. This has been replaced by modern
restaurants, recreational facilities, and the latest high-tech audiovisual equipment.

5
Meeting Technology
Modern audiovisual equipment gave meeting planners a greater degree of flexibility
and creativity that was never possible in the past. Video projectors, 360-degree projection
techniques, muti-image presentations, and unique sound systems have become very
common.

Ground Handlers
Effective ground arrangements became necessary as MICE became more complex.
Ground arrangements include planning tours, transportation, sightseeing, banquets, and hotel
reservations. Convention service companies were established in the 1970s to develop
creative meeting programs.

Importance of the MICE Industry

One of the most rapidly growing segments of the tourism and hospitality industry is the
MICE industry. In the United States, it has developed into an industry that is worth more than
$25 billion. The international convention and exhibition market has grown considerably in
Western Europe mainly in France, Belgium, Great Britain, and Switzerland.

Conventions and exhibitions generate a tremendous amount of revenue within the

tourism and hospitality industry. Travel sales from meetings, conventions, and exhibitions are
so important to the economy that all levels of government have organized, advertised, and
provided services to attract these groups. The United states has offices in major industrial
countries to help organizations with travel arrangements to the country. Each state allots a
major part of its budget to advertising to encourage conventions and business travel to their
state. Majority of cities with a population of around 200,000 have visitor and convention
centers that aim to attract and support meetings, conventions, and exhibitions.

Over the years, the International Association of Convention and Visitors Bureaus has
undertaken an assessment of the economic impact of MICE. It was found out that ou-of-town
convention delegates spend an average of $638 for a 3.5 day stay. Delegates to international,
antional, or regional conventions/exhibitions stay an average of 4.1 days and spend an
6
average of $818. Trade show delegate expenditures exceed $1,000, including exhibitor and
association expenditures.
The International Association of Convention and Visitors Bureaus has conducted these
studies for several years involving the United States and non-U.S. cities. These studies
showed that approximately 82 million delegates attended 267, 810 meetings with a direct
economic impact of more than $56.6 billion.

7
 CHAPTER QUIZ

I. Identify the following:

_________________________1. A gathering of people for business, social, or religious
purpose
_________________________2. A reward given to individuals who exceed sales or
production goals.
_________________________3. The European term for “convention”.
_________________________4. A meeting designed for discussion, fact-finding, problem-
solving, and consultation.
_________________________5. An activity designed around various themes to enhance
interest in a destination.
_________________________6. An event in which products and services are displayed for
purposes of public relations, sales, and marketing.
_________________________7. Large facilities where meetings and events are held
_________________________8. An event in which the primary activity of the attendees is to
attend educational sessions, participate in
meetings/discussions, socialize, or attend other organized
events.
_________________________9. Individuals or groups that plan meetings, conventions, and
exhibitions.
_________________________10. An event which consists of a huge public display of the
goods and services of a particular industry.

II. Enumerate the following:

11-18 Factors which brought about the growth of the MICE industry
19-20 Two sub-sectors of the MICE industry

8
 CHAPTER 2 KEY PLAYERS IN THE MICE INDUSTRY AND THEIR ROLES IN THE
TOURISM AND HOSPITALITY INDUSTRY

Learning Outcomes
At the end of this chapter, you should be able to:
1. Describe the key players in the MICE industry and
2. Discuss the roles of the key players in the tourism and hospitality industry, which are:
a. Associations;
b. Convention centers
c. Conference centers
d. Tour operators;
e. Trade shows and expositions;
f. Hotels
g. Convention and visitors bureaus; and
h. The process of providing a MICE event

The size of the MICE industry has greatly expanded. At present, it includes several
players. These players are the following:
1. Associations
2. Convention centers
3. Conference enters
4. Tour operators
5. Trade shows and expositions
6. Hotels
7. Convention and visitors bureaus
8. The Proces of Providing MICE Event

Associations
An association is an organized body that promotes and enhances a common interest
activity or purpose. Modern associations find their roots in historical times. Roman and
Oriental craftsmen in ancient times formed associations for the improvement of their trade. In
the middle ages, associations were in the form of guilds, which were organized to obtain
proper wages to maintain work standards.
9
 Associations are classified into main categories-trade associations and professional
associations. Both are organized for the betterment of their members. The main activity for
both types of associations is to gather and exchange information through publications,
educational seminars, newsletters, and meetings.

Trade associations are nonprofit organizations that are designed to address the needs
of for profit businesses. The members are business agencies that have the same objective. A
good example is the Professional Convention Management Association (PCMA) whose
members are involved in the conventions and meetings industry.

Professional associations, are nonprofit organizations that are not business-oriented.

They are designed to help their members realized their objectives. Professional associations
are divided into three sections. The first sector consists of the members with the same
interest such as the American Association of the Retired Person (AARP). The second sector
consists of scientific , engineering, and learned associations such as the Council of the Hotel,
restaurant and Institutional education (CHRIE). The third sector is concerned with religious,
charitable, and public services such as the American Heart association.

Convention Centers
A comprehensive convention center is a public agency whose aim is to host meetings
and exhibits in a venue. It provides banquet, food and beverage, and concession services.
Majority of convention centers are owned by the city, country, or state government and are
operated by an appointed board or authority. An example of a convention center is the PICC.
Other examples are the Jacob K. Javits Convention Center in New York and the Anaheim
Convention Center in California. In some cases, convention centers may be managed by
private management companies.

Convention centers provide big, flexible rooms for trade shows and smaller spaces for
banquets, meetings, and association parties. The convention and visitors bureau assists in
marketing convention centers.

10
 Historically, convention centers were organized to serve the community. However, at
present, convention centers are profit centers. Many convention centers obtain revenues by
renting their exhibition and meeting rooms. Other sources of revenue come from food and
beverage catering, concessions, and vending. Many convention centers offer specialized
services to exhibitors who take part in shows held in it. Examples are electrical telephone,
stage construction, lighting, plumbing, air, and sound.

Conference Centers
A conference center is a specialized hospitality operation which aims to facilitate and
support small to medium size meeting of 20 to 50 people. Conference centers are different
from convention centers because majority of conference centers provide overnight
accommodations for their participants. The guest at a conference center do not need to leave
the center during the entire duration of their conference because all their needs, such as
meals accommodations, and leisure activities, will be provided by the conference center. The
conference center was established to meet the growing demand for specialized meetings.
The design of the conference center emphasizes comfort and privacy for the attendees.

A unique characteristic of a conference center is that it provides continuous

refreshment throughout the meeting, thus, allowing the attendees to take a break whenever
they feel like doing so. Another unique feature of a conference center is that it charges only
one price that includes meals, room rates, meeting rooms, audiovisual equipment, coffee
breaks, and paper supplies needed by the participants.

Tour Operators
Tour operators play an important role in the MICE industry. They work with meeting
planners in arranging tours and activities for meeting attendees and their families who
combine business with pleasure. Most often, convention delegates stay in the convention city
for a few days after the convention to relax, sightsee, or enjoy the entertainment in the city.
Tour operators often create tour packages for the spouse, guest, or children of the attendees.
Thus, while the participants attend their meetings, their spouses and guests may be brought
to a local museum or art gallery while the children may be brought to a theme park or a zoo.

11
 The convention delegates usually receive information about the tours several weeks
before the convention. Because there is a growing trend for meeting attendees to bring their
families with them. The job of the tour operator is becoming more important in the MICE
industry.

Trade Shows and Expositions

Trade shows, expositions, and scientific/technical conferences are terms that are used
interchangeably in the MICE industry. Exhibition was historically a European term. As we
become more global, Americans have adopted the term to refer to traveling shows such as art
exhibitions. According to the CLC glossary, expositions are public shows. Historically, trade
shows are private shows which are open only to those involved in the industry. Although
some trade shows open themselves to the public on their final days, majority are still private.

All these terms describe an activity which aims to represent a major industry marketing
event. Trade shows provide a venue in which individuals associated with a particular industry
can bring their products and exhibit them together. The forum allows the attendees and
exhibitors to exchange information about their products. For example, an annual trade show
is sponsored by the American Hotel and Motel Association every November in New York City.
This trade show brings together all the suppliers associated with the hotel and motel industry.

Trade shows have a very interesting history. According to Evan St. Lifer, trade shows
or expositions started when caravans crossing the dessert would meet and exchange
products. In the United States, the history of trade shows dates back to 1876 when Alexander
Graham Bell showed his telephone at the Philadelphia Centennial Exposition, a show
celebrating America’s first 100 years.

With the advent of the industrial era, marketing of products became very important.
Salesmen spent most of their time on the road selling their products. Because it was
impractical to call on customers individually, salesmen began to rent hotel rooms to display
their wares. They invited their customers to look at their display. This practice was beneficial
to individual companies.

12
 As the trade shows industry expanded, hotel became insufficient to use. By the mid-
1920’s, hardworking individuals developed an exhibit hall in which large groups exhibitors
who shared a common product showcased their wares together. This gave trade shows a
new look. Clients were no longer crowded in small hotel rooms and not allowed to leave the
room until they placed their orders. In exhibit halls, clients were allowed to roam freely from
one booth to another.

At present, the trade show industry is the most exciting, dynamic, and economical
means for marketing individuals to achieve their sales goals.Because of the great number of
attendees in trade shows, cities are now competing for the trade show business.

There are several key players within the trade show industry: the trade show sponsors,
exposition or show managers, and service contractors.
Trade show sponsors are trade or professional associations who use the trade show
as an important part of their meetings or conventions to generate revenue. For example, the
National Restaurant Association is the sponsor for the NRA trade show which is held in
Chicago every May. The exposition or show manager is responsible for all aspects of the
trade show. The service contractors are individuals responsible for providing all the services
needed to run the facilities for a trade show. A general service contractor is multi-talented,
creative, and equipped to serve all exhibit requirements.

Hotels
Hotels play an important role in the MICE industry. Hotels provide comfortable
overnight accommodations for out-of-town guests for a meeting, convention, or trade show.
IN addition, many hotels provide meeting rooms, convention facilities, and small exposition
halls for meetings and conventions. Meetings and conventions have become a major source
of revenue for many hotels. This revenue is generated through the rental of sleeping rooms,
food and beverage, as well as rental of meeting places.
The most important person in a hotel is the convention service manager. He or she
acts as a liaison between the meeting planner and the hotel. This position has increased the
marketability of hotels as convention sites because the primary aim of the convention service
is to service the meeting or convention. Meeting planners need not deal with different
13
department heads within the hotel. The convention service manager can help them with all
their needs.

Convention and Visitors Bureaus

A convention and visitors bureau is a nonprofitable organization designed to solicit
visitors and conventions to a community. Majority are privately owned although some are
housed within the state government. They are funded through the hotel accommodations tax.
The convention and visitors bureau coordinates all activities of meetings and conventions.
These include marketing the destination, providing information about possible host facilities,
coordinating familiarization tours for meeting planners and association executives, and acting
as liaison between the group and several suppliers within the community.

The Process of Providing a MICE Event

According to Rutherford, the process of providing a MICE event is often compared with
the design of a wheel. At the center of the wheel is the MICE event which may be a
conference or exhibition that will be managed by a conference organizer. All specialists who
provide services are located on the spokes of the wheel (see Figure 2.1). During the planning
of the MICE event, one or more of the services specialists or suppliers might assume a
specific role that is very important for the success of an event. An example is the transport
supplier who provides transfers of international delegates from the airport to the venue.
Around the edge of the wheel are the delegates or customers. Any time during the events, the
delegates will come into contact with the suppliers. Their overall experience of the event will
be influenced by each of the service specialists or suppliers. Hence, the interrelationship
between each supplier and the delegates is very important to the success of the MICE event.
The key players of the MICE industry include hotels, facilities, support services, associations,
professional congress organizers, incentives travel organizers, and convention and visitors
bureaus.
CHAPTER ACTIVITIES

1. Develop a familiarization trip to introduce a meeting planner to your city.

2. Make a list of potential conference venues to your town, city, or area. What are the range
and extent of the facilities available? Who might be attracted to these venues?

14
3. Critically evaluate the role of a convention visitors bureau within a city or region. Discuss
the services it provides for the potential conference organizer.

CHAPTER QUIZ

I. Identify the following:

__________________________1. An organized body that promotes a common activity or

purpose
__________________________2. A public assembly facility designated to host meetings and
exhibits under one roof.
__________________________3. The person responsible for all aspects of a trade show.
__________________________4. A nonprofit organization that solicits meetings and
conventions to a city.
__________________________5. The person who acts as a liaison between the meeting
planner and the hotel.
__________________________6. Individuals who provide services and products needed for
the show.
__________________________7. He or she arranges tours and activities for meeting
attendees and their families.
__________________________8. Nonprofit organizations that are not involved with business
firms.
__________________________9. Trade or professional associations who sponsor shows to
generate revenue.
__________________________10. Organizations whose aim is to meet the needs of
businesses.

II. Enumerate the following:

11-17 Key players in the MICE industry
18-20 Kinds of professional associations

15
 CHAPTER 3 MICE PLANNERS

Learning Outcomes
At the end of this chapter, you should be able to:
1. Explain the meaning of a MICE planner;
2. Understand the characteristics of successful MICE planner;
3. Explain the responsibilities of MICE planners; and
4. Discuss the following activities of MICE planners, which are:
a. pre-meeting activities;
b. on-site activities; and
c. Post-meetinga activities

Meaning of MICE Planner

Individuals or groups who sponsor meetings usually appoint a single individual or
committee to coordinate the meeting. The person coordinating the meeting is called several
names-MICE planner, meeting planner, meeting manager, coordinator, meeting director, and
professional congress organizer (PCO).

Characteristics and Responsibilities of MICE Planners

16
 MICE planners must possess strong administrative and leadership qualities. In a study
conducted by Strick and Montgomery, the following are the 10 personality characteristics of
success ful MICE planners:
1. Organized
2. Efficient
3. Responsive
4. Attentive
5. Intelligent
6. Prompt
7. Courteous
8. Hardworking
9. Friendly
10. Hospitable

Majority of association and corporate meeting planners are between the ages of 35
and 55. More than 50 percent are women and 66 percent have a college education. Most of
them have more than four years of experience in the field.

Responsibilities of MICE Planners

In general, MICE planners are responsible for the following:

Pre-meeting Activities:
1. Plan the agenda of the meeting
Before a MICE planner can start planning the meeting, he or she must know
why the meeting is being held. Meetings and conventions are often held for several
reasons-training, problem-solving, brainstorming, planning, networking, team building, etc.

2. Establish the objectives of the meeting

The meeting agenda provides the basis for the establishment of objectives. The
meeting objectives, in turn, will provide the groundwork for the budget, the site selection,
and the site facility.

3. Predict the attendance

17
 Attendance determines the success of a meeting or convention. To solicit
attendance, the MICE planner should develop a marketing plan. To develop a marketing
plan, the MICE planner must know what he or she and the sponsoring organization are
marketing and who are the prospective attendees are. The work of the MICE planner is
easier if he or she has a list of attendees has demographic, psychographic, and historical
data regarding past meeting participants.Id the MICE planner is not familiar with the
potential attendees, that person should develop a profile of them through discussions with
the executive directors of the association or corporation. The planner must develop
questionnaires too determine the needs, desires, and expectations of the group. These
questionnaires should be administered before the event.

4. Set the budget of the meeting

Setting a budget for the meeting is a difficult task. It is successful if the MICE
planner is consulted before the budget is finalized. A working budget should be
established and used as a guideline in making decisions.

Income for a meeting, convention, or exposition could include the following:

a. Registration fees
b. Exhibitor fees
c. Company or sponsoring organization money revenues
d. Advertising revenues
e. Revenues from the sale of educational materials
f. Event sponsor contributions
g. Registration fee interest
h. Grants or contributions

Expenses for a meeting, convention or exposition could include the following:

a. Meeting planner fees
b. Marketing expenses
c. Printing and copying expenses
d. Mailing
e. Shipping
f. Support supplies such as office supplies
18
 g. Support staff
h. Audiovisual equipment
i. Signage
j. Speaker fees, honorarium, and expenses
k. Mementos for guests and attendees
l. Tours
m. Ground transportation
n. Spousal programs
o. Food and beverage events
p. Gratuities
q. Interpreter
r. On-site personnel
s. Rental fees for meeting and exposition space

5. Select the site of the meeting

The success of a meeting, convention, or exposition depends on the site and
facilities chosen. When selecting a host city, the following are the questions that should be
answered:
a. Have you used the site before?
b. Is the site easily accessible for the majority of your participants?
c. Does the geographic area lend itself to pre and post- meeting or conference
excursions?
d. Is the ground transportation appropriate for the group?
e. What is the reputation of the site?
f. Is the climate acceptable to your participants?
g. Are there enough meeting places and sleeping rooms available to
accommodate you group during the desired period?

6. Select the meeting facility and the hotel

When choosing the meeting facility and the hotel, service is the first priority.
MICE planners must provide a level of service that makes the guests feel at home, well
cared for, and anxious to return. Along with the service attitude of the staff, MICE planners

19
are also looking for a higher level of services for their special attendees-the physically
handicapped and those with special dietary needs.
Another important area to be considered is the ability to meet the needs of their
international attendees. The facilities, services, and amenities that have to be provided
are multilingual staff, easy exchange of currency, interpreters, international codes and
symbols on guest information and signage, and the ability to accommodate special dietary
considerations.
When choosing the meeting facilities, the specific questions to be asked are:
a. Have you stayed in the facility?
b. What have you heard from other groups with regard to this facility?
c. Is the facility accessible from the airport?
d. Is the physical appearance appealing?
e. Is the facility kept in good repair?
f. What kind of first impression does the facility make?
g. Does the facility have the needed space available?
h. What are the number, size, and caliber of meeting rooms and guest rooms?
i. Does the facility provide VIP accommodations?
j. Are nonsmoking rooms available?
k. Does the facility provide appropriate food and beverage services?
l. Does the facility provide appropriate recreational opportunities?
m. What time is check-in?
n. Can special arrangements be made for early check-in and late check-out?
o. Can special rates apply before the meeting and after the meeting in case the
participants would like to arrive early or stay late?
p. What are the check-in and check-out procedures?
q. Are staff members appropriately dressed, knowledgeable, and courteous?
r. Does the facility provide the support staff the group will need to successfully
host the meeting, convention, or exposition?
s. Is the signage appropriate?
t. What is the proximity of the facility to shopping, dining, and entertainment
facilities?
u. Is the room rate appropriate for the group?
v. What kind of deposit is required?
20
 w. What is the guarantee and cancellation policy?
x. What other groups will be on-site during your meeting?
y. What kind of room block will they provide?
z. Are the safety and security features working and up-to-date?

7. Negotiate contracts
The person in charge of site should never sign a contract with a facility unit after just
one site visit. It is suggested that the MICE planner makes two visits to the site-one
announced and one unannounced. After completing the two site visitation, the planner
can negotiate and sign the contract.

8. Plan exhibition
After the site has been selected, the actual meeting, conference, or exhibition can be
planned. A detailed agenda can be made which will include meeting rooms and recreational
activities.

9. Prepare the exhibitor correspondence and packet

10. Create a marketing plan

In corporate training meeting, the marketing may only be a flier or memo
discussing the time, date, place, and agenda. If the event is a major convention,
marketing starts one year before the event. In general, the convention is marketed in the
registration packet of the previous year’s convention.The type of information that should
be included in the marketing piece should be dates, places, and general overview of the
theme.

11. Plan travel to and from the site

12. Arrange ground transportation

13. Organize shipping

14. Organize audiovisual needs

21
On-site Activities:
1. Conduct pre-event briefing
During the pre-event briefing, the participants will brief each other
regarding the changes that have been taken since the event guide was developed. Each
department head will discuss the arrangements he or she has made to service the group.The
MICE planner should arrive at least one hour before the event in the case of a single meeting.
In case of a major convention or exposition, the MICE planner should arrive several days
before the event to oversee the move-in activities.

2. Prepare executive plan

In order to execute the plan properly, it is necessary to have a thorough event
guide and maintain open lines of communication between the sponsoring organization and
the host venue.

3. Move people in/out

4. Troubleshoot

5. Approve invoices
Another important function of MICE planner is to approve all invoices. It is the practice
of host venues to present an invoice at the end of each major food and beverage function.
It is the responsibility of the planner to check the accuracy of these invoices and to make
the necessary changes, if any.

The MICE planner should arrive at least one hour before the event in the case of a
single meeting. In case of a major convention or exposition, the MICE planner should arrive
several days before the event to oversee the move-in activities.

Post-meeting Activities
1. Debrief

22
 The aim of the debriefing is to allow all those involved to discuss openly their
perceptions about the meeting. At this time, the items of contention will be discussed and
resolved.

2. Evaluate
The MICE planner is also responsible for administering the evaluation. This can
be done in a number of ways. The sponsoring organization may place evaluation information
in every session so that it can evaluate the perception of the attendees for each event. An
evaluation form may also be encouraged to complete the evaluation form before they leave
the site. The evaluation may also be mailed to the attendees once they leave the meeting. A
summary of the evaluation should be compiled and used in the planning of future events.

3. Provide recognition and appreciation

4. Arrange shipping
5. Plan for the next year

These responsibilities may vary due to the nature of the association, corporation, or
group that the planner is representing. In general, the association and corporate planners are
responsible for all aspects of the meeting, including the agenda, while the independent
meeting planner may only be responsible for certain aspects of the meeting, such as site
selection, agenda planning, budgetary matters, and negotiations.

CHAPTER ACTIVITIES

1. Develop a checklist for site visits that would help thoroughly examine potential sites for
your meeting, convention, exhibit.
2. Develop a checklist for inspecting potential host properties.

CHAPTER QUIZ

I. Identify the following:

23
________________________1. The place where the meeting is held
________________________2. A list of items to be discussed at a meeting
________________________3. Activities held before the meeting
________________________4. The aim of the meeting
________________________5. An individual attending the meeting session
________________________6. Procedures for guest arrivals and registration at hotels for
meeting
________________________7. An assembly or gathering of people for business, social, or
religious purpose
________________________8. Personal investigation of a facility
________________________9. An estimate of income and expenses procedure for guest
departure from hotels
________________________10. Procedure for guest departure from hotels

II. Enumerate the following:

11-17 Personality characteristics of successful MICE planners
18-20 Responsibilities of MICE planners

24
 CHAPTER 4 MICE PLANNING

Learning Outcomes
At the end of the chapter, you should be able to:
1. Describe the role of the MICE sponsor;
2. Discuss the different steps in planning MICE;
3. Explain the importance of goals and objectives in planning MICE;
4. Differentiate fixed expenses with variable expenses; and
5. Discuss the factors to be considered in order to successfully market MICE.

Sponsors of MICE
Sponsors of MICE can be:
1. Associations
2. Corporations
3. Trade Unions
4. Independent companies who sponsor and operate trade shows
5. Religious groups
6. Theater and arts groups
7. Social organizations

These organizations have varied reasons for sponsoring MICE. In the case of
corporations, meetings may be designed to disseminate information, solve problems, train
people, or plan for the future. Associations may sponsor meetings and exhibitions for
purposes of networking, educating members, solving problems, or generating revenue.

The Process of MICE Planning

There are several steps to be followed in the process of MICE planning. These are the
following:
25
1. Establishing goals and objectives
2. Targeting the population
3. Designing the program
4. Creating a budget
5. Selecting a site
6. Negotiating contracts
7. Formulating committees
8. Establishing a marketing and promotional plan
9. Hiring sub-contractors
10. Designing food and beverage functions

The process continues on-site during the actual event. Activities include move-in/move-
out, implementing the plan, coordinating the various participants in the event, and managing
the overall meeting. Post-event activities include evaluation, feedback, and planning for the
future.

Goals and Objectives

The goals and objectives of MICE should be established by the sponsor. One of the first
responsibilities of a MICE planner is to meet with the sponsor of the event in order to know
the reasons for holding the meeting. The MICE planner should understand whether the
sponsor of the meeting or convention is interested in providing an educational experience for
the attendees, entertaining the attendees and their families, boosting the morale of the
attendees, solving a specific problem, or a combination of these objectives. MICE objectives
should be specific, measurable, achievable, realistic, and time (SMART).

Targeting the Population

After determining the goals and objectives, those involved in the planning stage of the
meeting, convention, and exhibition must determine who should attend.

In the case of exhibitions, the development of the exhibitor list, as well as the target
audience, must be considered. The sponsoring organization must attract exhibitors to their
26
exhibition. To do this, the sponsor should convince exhibitors that the show will provide an
excellent marketing opportunity for them. The sponsoring organization should provide the
exhibitor with a prospectus outlining the proposed audience, thus, allowing the exhibitor to
determine whether or not the attendees are their targeted audience. Targeting the population
is very important to both meetings and exhibitions.

Designing the Program

The program design is the structuring, balancing, and pacing of the program by
combining major topics and sub-topics, passive and active sessions, and serious and fun
presentations to provide professional and personal growth, and networking opportunities for
participants .

The program design should include the theme and the agenda of the meeting,
convention, and exhibition. In designing the theme for the meeting, convention, and
exhibition, planners should ensure that the theme should take into consideration the needs of
the audience, the objectives of the event, and should provide continuity. For example, the
theme for the Annual Convention Tourism Educators of Schools, Colleges and Universities
(TESCU) held at the Traders Hotel was “Innovating Tourism Education: Creating a Research
Culture”. Included in the agenda were several resource speakers who spoke on the value of
research in tourism education, different research methodologies, as well as trends in tourism
research.

Hospitality Programs/Spousal Programs

At present, conference attendees no longer use the conference as an excuse to get
away from their families. Now, they use the conference as an excuse to take a mini-vacation
with their families. The programs for guests of conference participants are called hospitality
programs or spousal programs. These programs are designed to entertain the guests of the
conference attendees. These programs usually have an extensive itinerary that keeps the
participants busy. Hospitality programs increase attendance at conferences. They also
increase revenue for the host property because guests of attendees eat in the restaurant,
shop in stores, and use other services offered by the host facility. For this reason, many host
properties include in their bids hospitality programs designed to entertain conference
attendees and their guests.
27
 At present, the wants and desires of hospitality program participants are different from
those of past participants. The addition of children as hospitality program participants must be
considered when planning hospitality programs.

In addition to the meeting planner and the association executives, the host property
should take an active role in the planning of a hospitality program.

Design of Hospitality Programs

The History of a group must be reviewed carefully before planning a hospitality
program. The Program evaluations fro previous years should be analyzed to determine the
likes and dislikes of the group.

After the historical review, the meeting planner and the host property should survey the
participants to determine the likes and dislikes of the group. The survey will include the
following areas:

1. Hobbies
2. Sports they enjoy
3. Ages of the participants
4. Gender of the participants

A list of the local sites and attractions as well as the services provided by the hotel
should also be included. After reviewing the sites, attractions, and the host property services,
the participants should be surveyed to find out whether or not they are interested in any of the
suggested activities. After compiling this information, the meeting planner and the host
property can start planning a hospitality program.

In designing the program, meeting planners may use the services of destination
management companies who know the location of local sites and attractions as well as their
unique qualities. They are also familiar with all the local contacts and are able to work as a
liaison for the group in developing the hospitality program.
28
 Tour companies may also provide services for the meeting planner, such as
transportation, planned tours, theme parties, airport greetings, and staffing for the hospitality
room. The host property can provide service by helping meeting planners contact local
businesses that service conventions, meetings, and exhibitions.

The design of the program will vary from group to group. The program will vary from
year to year. Some components that do not vary are the hospitality suite, planned social
activities, food and beverage activities, and free time.

The hospitality suite provides a space for the participants to meet new friends,
reacquaint themselves with new friends, meet for tours, ask questions, or just to relax. The
hospitality room should be located near the meeting rooms to provide easy access to the
attendees. The hospitality suites are staffed by a host property employee, a volunteer from
the community, or a member of the association’s local chapter. The attendant should know
the group’s itinerary in order to provide important information about the local community to the
program participants.

Planned social activities for hospitality programs include the following:

1. Tours
2. Plays
3. Concerts
4. Sporting events
5. Tournaments
6. Guest speakers
7. Shopping trips
8. Demonstrations
9. Cooking lessons
10. Craft activities
11. Movies

These activities are chosen based on the interest of the group as well as the budget for
the hospitality program. Programs are financed in various ways. Some groups pay for the
29
program out of registration fees. Others get corporate sponsorship. Another way is to have
the participants pay the cost. Social activities can also be financed by combining some of the
above options.

Food and beverage take several forms in a hospitality program. Some groups have a
continental breakfast, afternoon tea, evening cocktails, and late-night snacks all served in the
hospitality suite. Others may just provide soda and coffee. The degree of service depends on
the funding of the program.

Although a hospitality program should be structured, there should be free time built
into the program. The free time enables the participants to sightsee, relax, or visit friends. In
addition, it enables the attendees to fully enjoy their free time by having information already
provided with regards to major attractions, prices for the activities, and transportation options
to and from activities.

Children’s programs are another area that hospitality programs should consider.
Children’s programs are designed to entertain the young guests of program participants.
These programs can be elaborate such as providing whole day activities in the form of day
camps or they can be simple such as a trip to the zoo. Programs can be designed to include
both parents and children or they can be designed to entertain children while their parents
attend their social functions. The inclusion of children’s programs is becoming popular with
several groups. Individual or group babysitting is usually provided through the hospitality
program. If the hospitality program does not provide babysitting services, many host
properties offer babysitting services for a fee.

Once the program is developed, the itinerary must be marketed properly to ensure
adequate participation. This usually requires at least two mailings of the itinerary and several
brochures describing the events to the program participants. The host property should make
sure that a full-color brochure of their property and a detailed description of all their amenities
are included in the first mailing.

Marketing of the hospitality program must continue on-site as soon as the guests
arrive. This can be done through posters in the lobby, brochures, and itineraries being placed
30
in the registration packet and fliers strategically placed in the host property. If the host
property has a television information system that shows the conference agenda, the itinerary
of the hospitality program should be included in the daily calendar.

Servicing the participants require careful attention. The primary goal of the hospitality
program is to make the participants feel comfortable, well cared for, and anxious to return.

Budget
According to P.C. Dotson, a budget is an estimate of income and expenses and a plan
to adjust the anticipated expenses to the expected income . Overall budget figures are usually
provided by the sponsoring organization, but specific guidelines are normally obtained from
previous conferences, meetings, or exhibitions budgets.

A budget includes fixed expenses, variable expenses, and sources of revenue.Fixed

expenses are not dependent o the number of attendees.Examples of fixed expenses are
administrative fees, postage and printing, advertising and promotion, staff travel, speaker
gees, and contracts with certain suppliers such as audiovisual firms.

Variable expenses are those that fluctuate depending on the number of attendees.
Examples are food and beverage, hospitality programs, exhibition expenses, guest room,
gratuities, registration materials, printed materials such as programs proceedings and hand-
outs, support personnel, and evaluation materials.

After determining the expenses, sources of revenue to support the activities must be
developed. Registration fees to support the activities must be developed. Registration fees
are the most constant source of income for conferences. Other sources of revenue are
advertising, educational material from the event, sponsorship, grants, company funding, and
funding provided by the sponsoring organization or company. It would be impossible to host a
meeting, convention, and exhibition without these sources.

Site Selection

31
 The site selection process is a significant activity of the sponsoring organization. The
site is very important for the success of the event. Convenience and cost are very important in
site selection.

In site selection,the planner must first determine the aims of the meeting, convention,
and exhibition. A meeting plan of format is formulated based on the aims. Thus, a group
prospectus is made to help the MICE planner to know the physical requirements for the
meeting, convention, and exhibition.

The MICE planner should bring a checklist during the site selection. The checklist
include the following areas: sleeping rooms, meeting and exhibition space, transportation
(airport and ground), food and beverage, recreation ( on-site and local attractions), and
services.

The MICE planner should determine the following when he or she reviews the
sleeping rooms. These are the number of available of rooms, types of rooms, quality of
furnishings, security of the rooms and corridors, accessibility for handicapped persons, quality
of lighting for reading, and adequacy of work surfaces.

The following should be determined in reviewing the meeting rooms. These are the
number, shape, and size or rooms, quality of furnishings, lighting, accessibility of audiovisual
equipment, and suitability for exhibits. The following should be determined during the
inspection of accessibility: limitations placed on move-in and move-out activities, utilities,
policies regarding storage, and exclusivity of sub-contractors.

Room Setup and Layout

In order to meet the requirements of clients, it is important that the venue has the
necessary amount of space and the proper type of space to service the conferences or
meetings. The capacity of meeting room space is affected by a number of factors such as the
number of attendees, the physical configuration of the room, as well as the audiovisual
requirements needed.

The following are the different kinds of room setups:

32
1. Theater or auditorium setup- it is the most functional setting arrangement especially
when the meeting involves a large group of participants. It involves placing chairs in rows,
either straight or in a semicircle.Chairs should be placed 4-6 inches apart, with
approximately 2 1/2 feet from the back of one chair to the front of the chair behind it. This
setup is suitable for lecture type meetings. The main advantage is it can accommodate
large groups of participants. The disadvantages are it is difficult for note-taking and there
is poor visibility from the back of the room.

2. Schoolroom or classroom setup- it is conductive to participants taking notes, reading

materials, or working on projects. It is suitable for small lectures and workshops where
note-taking is required. Its advantages are it uses a large amount of space per person,
and its is good for note-taking. Its disadvantage is it has poor visibility from the back of the
room.

3. Hollow square, U-shape, and the herringbone layout-these setups are suitable for
board meetings, management meeting, and small group discussions. The main
advantage is they encourage discussions and interaction among participants. The
disadvantages are they use a large amount of space per person, and the use of
audiovisuals may be difficult.

4. Banquet or round table layout-this layout is suitable for banquets, seminars, and round
table discussions. The advantages are it can be used when meetings break up into
smaller discussion groups without participants having to exchange rooms, and it can
accommodate food and beverage service comfortably. The disadvantages are it uses a
large amount of space per person, and the use of audiovisuals may be difficult.

Hiring Sub-contractors-Technical Transportation

Because a large part of its budget is allotted to transportation, there are two issues that
need to be considered. First, the planner should determine how to transport the participants to
the host city where the meeting is to be held. Second, the planner should determine how to
transport them from one place to another within the host city. The planner must also
determine how to transfer the exhibit material, office supplies, and registration materials to the
exhibit site.
33
 The MICE planner should examine all possible means of transportation such as airport
shuttles taxis, city buses, and car rentals.

A ground services operator may be contacted if the program design requires transporting
attendees from one facility to another during the conference. A ground services operator is a
company or person in a destination city that provides local transportation and other travel
needs. They transport attendees to special events that are held far from the host city.

The MICE planner should give special care to attendees with special needs such as the
older attendees, those traveling with small children, and the handicapped attendees.

The MICE planner should also consider the service attitude of individuals who will be
interacting with the attendees.

During the site selection process, the MICE planner should examine the ability of the
host city and property to provide services and facilities for leisure time activities. According to
J. Conlin, golf, free time, tennis, and tours are the four main leisure activities which are
important for the success of MICE.

Negotiations and Contracts

After the site selection, the negotiation of price and services will start. Negotiations are
held between the representative of the host property and the sponsoring organization.
Examples of negotiable areas are the sleeping rooms, function space, safety, accessibility,
food and beverage , renovation and construction, contingencies, restrictions, and
cancellations.

A contract is written and signed after the negotiations have concluded. A contract is legal
document that explains the responsibilities of the concerned parties.

34
Formulating Committees
The formulation of committees is essential in sponsoring a meeting convention, or
exhibition. Each committee must have its own aims. If a professional association is the
sponsor of the conference, the association is authorized by its constitution to form a
committee that will plan, organize, and operate the conference. Each committee should have
a chairman.

Marketing and Promotion

The following should be determined in order to ensure a successful conference:
1. Know the number of break-even attendance
2. Establish a marketing plan
3. Establish a time table
4. Carry out the program
5. Appraise the program

The break-even attendance is the minimum number of attendees who have paid for the
conference. This is done to avoid losing of money.

A marketing plan must be established after determining the break-even figures. A

marketing plan is a written record of the marketing activities of an organization with regard to
a particular meeting, convention, and exhibition.

According to P.C. Watson, all significant information with regard to registration,

transportation, housing, seminars, etc. Should be sent 6-8 weeks before the meeting,
convention, and exhibition.

Food and Beverage Functions

The food and beverage functions must harmonize with the program design and budget
for the meeting, convention, and exhibition. The sponsor is responsible for the following:
1. Ascertain the number of food and beverage functions needed for the conference.
2. Ascertain the kind of food and beverage functions needed for the conference
35
3. Guide on the cuisine
4. Determine the number of attendees
5. Establish a system for record-keeping

The sponsor must keep in mind the overall budget when he or she decides on the
number of food and beverage functions that will be included in a meeting, convention, and
exhibition.

After deciding on the number of food and beverage functions, the kind of function
should be determined. There are several ways of providing food and drink to the participants.
These are:
1. Breakfast
2. Lunch
3. Dinner
4. Refreshment breaks
5. Reception
6. Hospitality suites
7. Theme parties
8. Late-night suppers
9. Recreational activities

In choosing the cuisine for a meeting or convention, the MICE planner should know the
desires of the attendees. Although there is a trend toward lighter menu choices, there are still
some attendees who prefer heavier food. The planner, therefore, must know his or her group
and choose menus accordingly.

Once the MICE planner has determined the number, type, and cuisine for the food and
beverage functions, attendance figures must be established. Because food and beverage
functions are very expensive, the sponsoring organization and the MICE planner must give
special attention to the number of guarantees according to C.Price, a guarantee is the
minimum number of meals to be served and will have to be paid for. Host properties generally
requires 24-48 hours advanced minimum guaranteed number of attendees. This allows both
the planner and the host property to operate within a margin of safety.
36
 The area to be considered in food and beverage is record-keeping. There are many
ways of ascertaining the number of people served at food and beverage functions. The most
common methods are head count , ticket count, plate count, and food consumed.

On-site Management
On-site management involves overseeing every aspect of the meeting or convention
from the time the registration table opens until the last guest departs. For large meetings that
last several days, one person cannot attend every activity. Thus, the planner and sponsor
should have a good working relationship with the site staff and suppliers to be sure that every
activity is carried out on the scheduled time.

Evaluation
A meeting has to be evaluated in order to ascertain whether the goals that were
established during the conceptualization phase were realized.

There are several ways of evaluating meetings. Smaller meetings can be evaluated
through informal methods. Comment cards and informal conversations with the planner can
be sued to obtain general feedback. Another method is a focus group which may give
suggestions for improvement.

Formal methods such as questionnaires or surveys are other ways of evaluating the
meeting or convention. Questionnaires should be short and easy to understand. To increase
the return rate, questionnaires should be designed in such a way that it can be easily and
quickly completed. Thorough evaluation makes poor programs good and good programs
excellent(Jeurgens, 2000.)

37
 CHAPTER ACTIVITIES

1. Develop an agenda for pre-convention meeting.

2. Develop a food and beverage program for a two-day mini-conference.

CHAPTER QUIZ
I. Identify the following:
_________________________1. Costs that remain the same regardless of the number of
attendees.
_________________________2. Bargaining or discussing with the aim toward reaching an
agreement.
_________________________3. An estimate of income and expenses.
_________________________4. Expenses that fluctuate depending on the number of
attendees
_________________________5. Choosing a venue for a meeting or convention
_________________________6. A minimum number of paying attendees the event must
have in order not to loose money.
_________________________7. A meeting that takes place before the convention
_________________________8. Formulating ideas based on observation and experience
_________________________9.A written blueprint of an organization’s marketing activities
regarding a particular meeting or convention
_________________________10. A group of people chosen to perform a specific service
38
II. Enumerate the following:
11-20 Steps to be followed in MICE planning

CHAPTER 5 MICE MANAGEMENT

Learning Outcomes:
At the end of the chapter, you should be able to:
1. Define management;
2. Explain the main functions of management;
3. Describe the steps to follow in choosing an organizational structure;
39
4. Discuss the three types of plans which are essential for an event;
5. Explain the importance of motivation in MICE management;
6. Describe the different methods of communication;
7. Discuss the communication process;
8. Clarify the importance of creativity in MICE management;
9. Explain the different steps in problem-solving;
10. Describe the other management concepts that are relevant to MICE management; and
11. Discuss the different steps in resolving crises.

Meaning of Management
The dictionary defines management as getting things done through effective people
and efficient processes. Peter F. Drucker defines manager as “one who has the task of
creating a true whole that is larger than the sum of its parts; a productive entity that turns out
more tan the sum of the resources put into it”.

Good management is the key to a successful MICE organization. The practical

implementation of sound organizational and individual management principles and practices
is vital to effectiveness.

Main Functions of Management

In studying management, it is important to examine its principles or functions that are
very relevant to organizing events. The following are its main functions:
1. Organizing
2. Planning
3. Motivating
4. Communicating
5. Creating
6. Controlling
7. Problem-solving

40
Organizing
Organizing is the process of determining the special activities to be accomplished
toward the end objectives; the gathering of these activities into relevant structures and the
allocation of the achievement of objectives through these activities to the appropriate groups
or individuals.

Organization is the way in which ideals and aims are turned into reality. The focus of
any organization must be to achieve the necessary action through its personnel. There are
several steps to follow in choosing an organizational structure for an event.

1. Define the aims and objectives of the project

2. Analyze the background situation in which the event has to be achieved
3. List all the tasks to be undertaking
4. Group together all related tasks
5. Establish links between these groups of tasks
6. Establish an understanding of respective roles for all those involved
7. Identify possible communication lines between various groups

Planning
Planning is the process of setting goals and deciding on the best approach to achieve
them. Careful planning is essential to successful events. Things do not happen by accident;
they are produced by effective planning. Careful planning is vital because it decreases
uncertainty, eliminates wasteful effort, and produces unity of purpose There are three types
of plans which should be produced for an event.

1. Strategic plans direct an organization toward its overall objectives and consider the major
influences-political, economic, environmental, etc.
2. Specific plans are designed to achieve specific objectives such as budget estimates,
resource production, and promotion plans.
3. Administrative, organizational, and structural plans explain how the objectives will be
achieved.

Motivating
41
 In any demanding work situation, it is important to keep the staff motivated and
interested. Special effort is necessary to keep motivation high because events demand an
extraordinary commitment from every individual concerned.

The MICE leader should know how to motivate his or her employees. The MICE leader
should try his or her best to fulfill their individual and group needs. A good example of
motivation is public recognition, especially in a local event. Giving small rewards such as free
meals and free t-shirt help motivate people and increase their productivity.

Communicating

Communication is “giving, receiving or exchange of information so that the material

communicated is completely understood by everyone concerned and that appropriate action
follows. Effective communication is necessary to produce good coordination and efficient
organization.

The following are the aims of communication:

1. To transit a message
2. To have the message accepted
3. To guarantee understanding
4. To attain correct action
5. To give and receive information

Verbal communication is important but should not be overused. Nonverbal

communication consists of body gestures, facial expression, eye contact, and personal
appearance. If used properly, it can help bring about good relationships. Written
communication is the most common in MICE management, but it is often used ineffectively.
Paperwork should be minimized because it is time-consuming to read and write. Visual
communication is becoming popular. Videos are used for product promotion and staff training.
An effective logo communicates a message and helps in the success of an event. Visual
communication also helps to generate and retain interest among the staff members.
Electronic communication is the most modern method of communication. Examples are
42
computer, email, fax, and mobile phones. They are very beneficial to MICE management
because events often take place in a big location or in several locations that are far apart.

When information is transferred, it should result in correct understanding and

appropriate action. Thus, the information should be clear, concise, courteous, correct,
complete, and correctly directed.

Creating
Creating is the ability to produce an original idea or thought through the use of
imagination. A good MICE manager should equipped with innovative thinking skills that will
help create an interesting event based on the needs of the client. He or she should be able
to link together suitable ideas to achieve the objectives in an innovative and encouraging
manner.

Controlling
Controlling is monitoring the performance of systems and resources. Control is a
management function which checks whether what is supposed to happen is happening or is
going to happen. It is a vital part of the MICE management because it is necessary for things
to actually happen, not just promised to happen. Control systems must be established in the
planning stages of an event to find out if the objectives are achieved within the prescribed
timetable. The following are the four stages of effective control:
1. Plan what you intend to do
2. Measure what has been done
3. Compare achievements with the blueprint
4. Take action to correct anything that is not as it should be

Problem-solving
Problem solving is an important skill for people who are working on events. Problems
will always exist. A positive, innovative thinker is needed to solve them. Problem-solving has
different stages, namely:
1. Obtain the facts;
2. Specific the objectives
3. Identify the problem;
43
4. Formulate alternative solutions;
5. Select the best solutions;
6. Put the selected solution into practice;
7. Continue making observations to make sure that the chosen solution works; and
8. Select anew solution or adjust any corrective action or go back to step 1.

Other Management Concepts

There are other management concepts that are relevant to MICE management. These
are decision-making, team building, delegation, leadership, staff appraisal and training,
authority, responsibility of power, and crisis management.

Decision- making
Decision making involves the assessment and implementation of possible strategies.
In an event, it is better to use democratic decision-making and involve as many people as
possible. It is advisable to use the collective knowledge of the group in order to arrive at the
correct decision.

Team Building
Team building is the ability of an organized group of people to work together. A good
MICE manager should exert effort to build his or her team. Unity of purpose and cooperation
are necessary to attain success in MICE management. Formal training, informal meetings,
group decision-making, and the involvement of the staff ( paid or volunteers) will help build an
effective team.

Delegation
Delegation means giving people something to do which they are capable of achieving.
Delegation is an important management activity and is essential to the success of any event.
Delegation is not dumping all the boring and difficult tasks on people. Delegation is designed
to attain success by using everyone’s time, expertise, and effort to the best advantage.

Leadership

44
 According to D.C. Watt, leadership is an interpersonal influence exercise in a situation
and directed through the communication process toward the attainment of the specific goal or
goals. To be successful, an event needs a leader who is productive and capable of
influencing or inspiring a large number of people.

Staff Appraisal and Training

Staff appraisal is an evaluation of the accomplishment, strengths and weaknesses of
the employees in order to improve their performance and commitment to duty. Staff training
is necessary for MICE management. There are two kinds of training for event employees:
1. Desirable training, which improves personal skills such as decision-making and creativity
2. Essential training, which makes sure that personnel are aware of legal requirements such
as health and safety legislation and can perform word processing and computing tasks.

Staff training will help improve the quality of the event and enable it to be carried out
more efficiently and effectively.

Authority, Responsibility, and Power

The management of the event must make it clear where the authority, responsibility,
and power lie. It is important that every individual knows where he or she stands so that he or
she will not be tempted to underplay or overplay his or her role. For every decision,
someone must take responsibility, and everyone must know that person is.

Crisis Management
In general, crises happen during an event. MICE planners must be skillful in managing
crisis. An efficient MICE manager must be able to control crisis in an effective manner. The
employees must be ready to apply suitable solutions to the crisis. The following are different
ways to control crisis:
1. Examine the crisis in a pleasant way
2. Re-asses the aims or goals
3. Analyze the potential solution
4. Study the effects of many solutions
5. Choose the most appropriate courses of action
6. Carry out the best activity
45
7. Undertake follow-ups to prevent unnecessary reputation

46
 CHAPTER ACTIVITY

Draft an organizational chart of your MICE organization. Evaluate the chart and answer the
following questions:
a. What can be done to the chart to increase employee retention?
b. What are the promotional and growth opportunities for employees based on the chart?

CHAPTER QUIZ

I. Identify the following:

______________________1. The process of determining the activities to be accomplished
toward the end objectives
______________________2. Getting things done through effective people and efficient
processes
______________________3. Plans that direct the organization toward its overall objectives
______________________4. The ability of an organized group of people to work together
______________________5. The assessment of the performance, strengths, and
weaknesses of the personnel to improve their work.
______________________6. The ability to handle crisis
______________________7. The process of setting goals and objectives and deciding on the
best approach to achieve them
______________________8. Giving people something to do that they are capable of doing
______________________9. Plans that are intended to achieve specific objectives
______________________10. The process of monitoring the performance of systems and
resources

II. Enumerate the following:

11-17 The main functions of management
18-20 Types of plans

47
 CHAPTER 6 MARKETING MICE

Learning Outcomes:
At the end of the chapter, you should be able to:
1. Define marketing;
2. Explain the meaning and importance of customer care;
3. Discuss the important factors in marketing;
4. Explain the marketing concepts that are applicable to MICE;
5. Discuss the four P’s of marketing mix;
6. Explain the meaning and aim of promotion; and
7. Describe the different aspects of promotion

Meaning of Marketing
There are many definitions of marketing. The dictionary defines marketing as an
integrated process of producing, distributing, and selling goods and services.

48
 Marketing is a management process responsible for identifying, anticipating, and
satisfying customer requirements-profitability (Institute of Marketing).

Customer Care
Customer care is an essential element of MICE marketing. The needs of event
customers must be given special attention. If they enjoy the event, they will come back and
perhaps even invite their friends to a future event.

Important Factors in Marketing

There are several factors in marketing that event organizers must be aware of.
1. Location-environmental factors such as traffic and scenery as well as attractiveness and
accessibility of the location should be considered.
2. Social factors- the attitude of people to what is appropriate might be affected by the
attitude of friends and colleagues.
3. Cultural influences- different groups in society with different ethnic origins and social
classes will see events in different ways.
4. Fashion- during certain historical periods, certain types of events will be popular and will
attract many participants.
5. Political factors- local and central government will support events that fit with their
beliefs.
6. Economic factors-assess how much money is available at a corporate and individual
level, consider the exchange rates and similar economic factors.
7. Philosophy- the beliefs and attitudes of groups, individuals, and other agencies will affect
of events that are provided.

Marketing Concepts
The marketing concepts which are applicable in commerce can also be applied to
events. These are market research, self-analysis, target groups, and marketing mix.

Market Research

49
 Market research is the objective gathering, recording, and analyzing of all facts relating
to the provision of services for the appropriate consumer. It can help decrease the risk of
failure. It is also helpful in planning an effective marketing strategy.

SWOT Analysis
The situational analysis can best be done by SWOT, an acronym for strengths,
weaknesses, opportunities, and threats of a specific event.

Strengths- the internal strengths of the organization

Weaknesses- the internal weaknesses of the organization
Opportunities- the external opportunities which may raise
Threats- the external threats facing the organization

The following are some examples that are applicable to events:

Strengths
1. Staff ability
2. Detailed specialist knowledge
3. Local reputation
4. Political support
5. Enthusiasm and commitment

Weaknesses
1. Poor transport facilities
2. Limited financial resources
3. Lack of general management skills
4. Poor public image

Opportunities
1. Increased public awareness
2. Developing partnerships
3. Financial returns
4. Changing attitudes
5. Offering new possibilities
50
Threats
1. Lack of commercial support
2. Competition from similar promotions
3. Changes in funded priorities
4. Economic trends

SWOT analysis helps in the practical planning of the event and particularly with the
marketing strategy to be used.

Target Groups
For events, it is necessary to identify the targets- the potential participants, potential
spectators, potential sponsors and potential staff.

Marketing Mix
Marketing mix is a combination of factors to get the correct balance for an enterprise.
The four basic factors are place, product, price, and promotion. The following are the
different aspects of each factor:

Place-the various aspects are:

1. Venue
2. Accommodations
3. Ancillary facilities
4. Signposting
5. Maps
6. Carpark
7. Catering location
8. Transportation
9. Emergency access host town
10. Region
51
11. Country or administrative subdivision
12. Environmental conditions
13. Geographical location

Product-it is the end result; it may be the tournament, exhibition, seminar, or show. It also
includes ancillary contributions such as programs, presentation, quality production, and
customer care.

Price- the cost of the event which is acceptable to the customers

Promotion- the various aspects are:

1. Advertising
2. Media relations
3. Publicity
4. Merchandising
5. Pamphlets
6. Posters
7. Logo
8. displays

There are other P’s which should be included for events. These are:

1. People- Proper customer care, teamwork, well-trained and competent staff are major
marketing tools
2. Packaging- it is the method of presenting events. It may be presented once or as part of
a season or festival. Marketing will depend on the package such as a family package or a
season ticket.
3. Partnership- it is support of others which is very beneficial to the success of an event.
4. Programming- it is the way an event is scheduled.

Mascot
A mascot is a person, animal, or thing considered to bring good luck. A mascot should
be identifies with the event, it should be appropriate and attractive.
52
Advertising
Advertising is expensive, but despite its cost, successful advertising is very valuable.
Television advertising is expensive, but it is very effective in reaching the mass audience.
Effective advertising is necessary to encourage people to attend event.

Media Relations and Publicity

Media relations and publicity should be given much attention. The publicity campaign
should be undertaken together with the advertising campaign. The campaign should be done
several months until the beginning of the event.
Early contact with media is important. Some media outlets that can be contacted are
national and local newspapers, trade and professional magazines, radio, and television. The
Following are the rules of media liaison:
1. It is better to be proactive than reactive when dealing with the media.
2. Write the name of your contact person instead of writing “ To Whom It May Concern”.
3. Think in headlines when writing a press release. This may be eye-catching.
4. When talking to journalists, it is safe to assume that nothing is off the record.
5. Look for the best spokesperson for the MICE promotion and appoint the, as the media
contact.
6. Retain copies of all radio, ad other media coverage.

Press Conferences
A press conference can be a very effective way of getting important press coverage
and briefing several journalists at the same time. There are several reasons for holding a
press conference:
1. To launch the event or conference
2. To relate genuine news about a famous person who is taking part in the event.
3. To explain a controversial issue about the event because media speculation can be
damaging
4. To reveal a major exclusive.

To justify a press conference, the appointed spokesperson must be adequately

prepared to answer questions accurately and confidently.
53
Photo Opportunities
It is essential to create a visual as well as a verbal impressions. Photographs can
attract much attention. Although photographs require more imagination, they can be very
valuable.

Public Relations
The public handling and public image of the organizing group are important factors in
the success of an event. Getting a positive image is very vital for many events. Effective
public relations can be achieved by influencing people through influential individuals.

Selling
Everyone involved in the event has a selling job to do. Everyone in the team is a sales
representative. Some of the direct financial sales which can be greatly contribute to the
income of the event are merchandising, souvenir sales, franchising, and trading.

Event presentation
There are two basic aspects of event presentation- the promotional presentation and
the event presentation itself. The promotional presentation is for sponsors, spectators, media,
and participants. The actual event presentation can range from an attractive documentary,
high-cost multimedia, or audiovisual production. To generate interest, the presentation must
be accurate, thorough, and error-free.

54
 CHAPTER ACTIVITITIES

1. Develop a marketing plan for your event that identifies the competitive advantages, target
markets, strategies, budgets, schedule, and evaluation methodologies.
2. Describe how you will increase your marketing performance through creative and
innovative tactics despite a significant reduction in the marketing budget.

CHAPTER QUIZ
55
I. Identify the following:
______________________1. Promotion of goods or services by an identified sponsor
______________________2. An integrated process of producing, distributing, and selling
goods and services
______________________3. The objective gathering, recording, and analyzing of facts
related to the provision of services for the appropriate consumer.
______________________4. Persons who are relevant to particular events
______________________5. The product, service, presentation, communication, and
distribution that directly affects the consumer
______________________6. The cost of goods or services
______________________7. The organized attempt by a business to get favorable stories
concerning their products or services
______________________8. The method of presenting events
______________________9. Techniques used by organizations to promote their services
______________________10. The format used in public relations to create a story

II. Enumerate the following:

11-14 The elements of a SWOT Analysis
15-18 The marketing concepts
19-20 The basic aspects of event presentation

56
 CHAPTER 7 FINANCIAL MANAGEMENT OF MICE

Learning Outcomes
At the end of the chapter, you should be able to:
1. Explain the importance of funding in MICE management;
2. Discuss the significance of budgeting and financial control in MICE management;
3. Clarify the meaning and importance of sponsorship; and
4. Describe some tips on how to look for sponsorship and how make sponsorship work.

Funding
Adequate funding is essential for a successful event. The biggest mistake of event
organizers is to host an event without adequate financial support. To do so will result in the
failure of the event.

Budgeting
Careful budgeting is vital for the success of an event. A budget is an estimate of
income and expenses. It is necessary to budget carefully to find out the funding needed by
the event and to provide a monitoring system in the planning and implementation of the event.

Financial Structures
Financial structures may be simple with a treasurer controlling all finances or it may be
very complicated involving several committees and even paid staff to manage the finances.
When the structure involves committees, there are two options;
1. Finance as a free-standing committee; everyone requests money and awaits their
decision.
2. Each committee or subcommittee has a treasurer to look after its allocated budget.

Control
57
 The careful control of financial transactions is a vital aspect of MICE management.
Various control systems are necessary to keep spending within agreed limits. The following
are practical steps to follow for effective financial control:
1. Limit the number of people who can incur expenditure
2. Keep accurate records of all income and expenditure
3. Use appropriate record-keeping methods to keep financial information correct, and
readily available
4. Ensure that relevant structures channel financial commitment through financial record
keepers.
5. Ensure that financial information is widely circulated to all those who require it.
6. Produce systems and information that are clear and understood by everyone involved.

Sources of Funding
There are several agencies that MICE organizers can approach for funding such as:
1. Local authority leisure department;
2. Education authority;
3. Local or national sports council;
4. Local or national arts council;
5. Foundation for Sports and the Arts;
6. Local or national tourist authorities;
7. Sponsorship agencies;
8. Business agencies;
9. Professional institutes
10. Hoteliers
11. Heritage agencies
12. Local or national charities
13. Voluntary agencies
14. National Lottery

In addition, MICE organizers can produce income from various activities such as:
1. Franchising;
2. Ticketing;
3. Entry fees;
58
4. Fundraising;
5. Donations;
6. Programs;
7. Raffles;
8. Souvenirs;
9. Catering
10. Advertising
11. Licensing (logos, etc.)
12. Trade exhibitors
13. Participant contributions;
14. Sales stalls
15. Bar
16. Corporate hospitality

Fundraising
There are many forms of fundraising. The following are some suggestion:
1. Sponsored runs, swims, and cycles
2. Dances and discos
3. Marathon swims and walkathons
4. Lotteries and raffles
5. Gambling evenings such as casino nights and race nights

Sponsorship
Sponsorship is a mutually beneficial business arrangement between the sponsor and
sponsored in order to achieve the agreed objectives. Commercial sponsorship is very difficult
to find and requires a lot of effort to service it. Finding sponsors is not easy. Information about
possible sponsors may be obtained from:

1. Yellow pages and telephone directories;

2. Local and national newspapers;
3. Business organization such as Chambers of Commerce;
4. Professionals such as lawyers and architects;
5. Participants and their personal contacts;
59
6. Libraries-local, regional, and national;
7. Market research through learned centers, consultancies;
8. Partners that have supported previous events; and
9. Existing sponsors

Some Tips on Looking for Sponsorship

1. Use imagination and innovation- a new idea might convince a person to be a potential
sponsor.
2. Put in the marketing effort- be sure that the product and price are correct, and the quality
of the event is widely known.
3. Clearly define the type of market- specify the type of market-if the participants are rich,
middle-aged, or young people.
4. Consider changing the nature of your activity, event, or promotion-adapt the event to suit
the sponsor’s idea, desires, and requirements.
5. Access your sponsors through the Chamber of Commerce or the Rotary Club.
6. Assess respective images- sponsors must be compatible with the event and the
participants.
7. Approach unlikely targets-approach somebody who has not sponsored an event before.
8. Do the necessary research-do detailed research using the media and the local library.
9. Check existing sponsors-find out what active companies are already sponsoring.
10. Get media support-the support of the media is needed to attract sponsors.

How to Make the Sponsorship Work

Sponsorship can be very worthwhile. Both parties must work to make it effective . The
MICE organizers must not promise what they cannot deliver. The technical skills and
knowledge of the organizers must be used in the planning and delivery in order to make the
sponsor’s support justified.

The Bidding Process

The bid is a proposal to host an event. It is the most critical marketing tool in obtaining
business. The bid should answer all the needs and requirements specified by an organization
in a clear and concise manner.

60
Preparation
1. Ask for a copy of a “bid form” or information regarding the specific requirements of the
organization. The bid form is a document that gives a detailed explanation of the
requirements of the association in hosting a meeting. It could be short or long.
2. Research on the history of the association for the past four years. Examine if there are
conflicts and clear them with the association planner.
3. Evaluate the strengths and weaknesses of your destination from the point of view of the
planner.
4. Find out how the bid will be made; whether the association will accept an oral
presentation, a written presentation, or both.
5. Research the details of bid presentation such as location, date, and time.
6. Meet the leader of the local district to discuss the strengths of the local organization.
Make clear the role of the local leaders in the bid presentation. Find out if the neighboring
areas will support the bid.
7. Categorize the organization according to kind-social, educational, political, scientist, etc.
8. Examine your market position. Find out what makes your destination different from other
destinations. The positioning of a destination is essential to find out its importance as a
good location for a meeting, convention, or trade show due to its being unique or
unusual.
9. Communicate with previous host cities and request them to help you in dealing with the
organization’s planner.
10. Request local representatives to help you pre-sell your destination through letter writing,
accompanied by several photographs or pictures.

Presentation
1. Make sure that the presentation document is complete and easy to read without spelling
and grammar mistakes.
2. Make the bid document personalized by engraving the name of decision-makers on the
cover of the bid document.
3. Send a letter of invitation following the protocol order to congressmen, senators,
governors, mayors, local members, and the bureau.

61
4. In case there is a “bid form” from the organization, make sure that it is completely filled
out and contains the necessary supplemental information. Include colored photographs
and brochures that will sell your destination.
5. In case an oral presentation is needed, prepare the scripts of every person who will
participate in the presentation. Have a local member of the group open the presentation,
followed by the mayor or another high-ranking local government official.Next, the
bureau's sales executive should make a short but detailed presentation. The local
members will end the oral presentation.

After the Presentation

Upon winning the bid, a memorandum of agreement will be signed between the bid
proponent, which is the local association, and the international organization. Upon losing the
bid, the proponent will revise the bid and bid again.

How to Bid for International Events

For international events, it is the host federation or national governing body that
formally makes a bid to its international federation to secure an event. Once the event is
secured, and the contractual agreement with the international federation has been made, the
host federation will have to enter into a contract with its chosen host city. The host federation
is the one that selects the appropriate venue.

Financing of Bids and Events

The cost of bidding and organizing international events can often be a financial
burden to the host city. Many governing bodies require the prospective host city to fund the
bid process and shoulder the total cost of the event.

Importance of Hosting International Events

The significance of hosting international events can be seen from the way events
stimulate the local economy through multiplier effects. These events can contribute
significantly to a city’s overall economic regeneration plan. The expenditures in the city
participants, spectators, officials, and visitors will boost the local economy. Hotels,
restaurants, clubs, shopping centers, and local transportation will all benefit from the event.
CHAPTER ACTIVITY
62
 Your MICE management organization is willing to accept the project if the total gross
profit for the event is more than PHP 5,000. Your client estimates that there will be between
100 and 300 guests. The company pays Php100 per person with a minimum of Php10,000.
Your variable cost is Php4,000. Calculate the maximum and minimum gross profit you can
achieve for this event.

CHAPTER QUIZ
I. Identify the following:
______________________ 1. A game of chance in which tickets are sold and one or more
ticket holders may qualify for a prize.
_______________________2. Money that is readily available
_______________________3. A financial contribution to an organization
_______________________4. A company or organization sponsoring an exhibit booth
_______________________5. A lottery in which the prizes are goods rather than money.
_______________________6. The right to market a service or product granted by the
manufacturer or distributor for a fee.
_______________________7. The process of regulating financial transactions
_______________________8. A series of performances presented at a scheduled time.
_______________________9. Agencies which render services without compulsion
_______________________10. A proposal to host an event

II. Enumerate the following:

11-20 Give some tips when looking for sponsorships.

63
 CHAPTER 8 RISK MANAGEMENT

Learning Outcomes
At the end of the chapter, you should be able to:
1. Explain the reasons for complying with existing laws and regulations;
2. Describe the basic component of an event management agreement or contract;
3. Clarify the other clauses or components of an event contract;
4. Discuss other event management agreements;
5. Describe the synergistic relationship of contracts, permits, and licenses;
6. Explain the risk management procedures; and
7. Discuss the risk control measures.

According to Dr. Peter Tarlow, risk management and safety expert, all events carry
two risks: (1) the risk of a negative occurrence both on-site and off-site and (2) the negative
publicity that comes from this negative occurrence. Whenever people are brought together,
there is an element of risk.

Compliance with Existing Laws and Regulation

There are many reasons why an event must comply with existing laws and
regulations. The four primary reasons are:
64
1. To protect one’s legal interests;
2. To abide by ethical practices;
3. To ensure the safety and security of the event stakeholders; and
4. To protect one’s financial investment

Protecting One’s Legal Interests

Preparing contracts, permits, and licenses that are required and complying with other
legal requirements will ensure that the event may proceed without interruption. Contracts or
agreements may range from a simple letter or memorandum of understanding to complex
documents with long riders or attachments. The event manager should hire a competent legal
counsel to review all standard agreements such as hotel contracts to ensure their validity
prior to execution. The process of obtaining permits and licenses may require weeks or even
months to accomplish, so, the event manager must carefully research each jurisdiction where
he or she will produce a n event and meet the time requirements. The cost of permits and
licenses are usually nominal. However, larger events or events that pose high risks such as
the Grand Prix auto racing may require the posting of expensive bonds.

Adherence to Ethical Practices

One of the requirements of a profession is to follow a code of ethical conduct.
Because event management has emerged as a modern profession, a code of ethics has been
developed by the International Special Events Society (ISES). A code of ethics shows what
is standard and customary in both a profession and a geographic area.

Ensuring the Safety and Security of Event Stakeholders

A safe event environment is one that is protected from future harm. The event
manager is one that is protected from future harm. The event manager is responsible for
constructing a safe, secure environment and sustaining it during the course of an event. The
event manager should not transfer the responsibility to others. The event manager has a
legal and ethical responsibility to event stakeholders to design and maintain a safe and
secure event environment.

Protecting One’s Financial Investment

65
 Practicing thorough legal, ethical, and risk management proactive measures may help
the event produce greater revenues. Lapses in legal , ethical , and risk management
judgment may acuse not only loss of property, life, and money but also loss of the event’s
good name.

Basic Components of an Event Management Agreement or Contract

The event management contract shows the agreement between two or more parties
regarding their mutual interests as specified in the agreement. A binding contract must
contain the following basic components: the parties, the offer, consideration, and
acceptance.

Parties
The names of the parties must be clearly identified. The agreement must be described
as being these parties and the names that are used in the agreement must be defined. The
typical event management agreements are between the event manager and his or her client
or between the event manager and his or her vendor. Other contracts may be between an
event professional and an insurance company, an entertainment company, a bank, or other
lending institution.

Offer
The offer is the service or product given by one party to another. The event manager
may offer consulting services to client, or a vendor may offer products to an event manager.

Consideration
The consideration clause defines what one party will provide the other upon the
acceptance of offer.

Acceptance
When both parties accept an offer, they execute or sign the agreement conforming
that they understand and agree to comply with the terms and conditions of the agreement
confirming that they understand and agree to comply with the terms and conditions of the
agreement.

66
Other components
In addition to the key components, event management agreements usually include
other clauses or components.

The most typical clauses are:

Terms
The terms clause defines how and when the funds will be paid to the person making
the offer. If the event manager offers consulting services, he or she may request a deposit in
the amount of the first and last month’s retainer and then require that the client submit
monthly payments of a certain amount on certain date every month. These terms define the
financial conditions under which agreement is valid.

Cancellation
Events are always subject to cancellation. Thus, it is is important to provide for this
contingency legally with a detailed cancellation clause. The cancellation clause usually
defines under what circumstances either party may cancel, how notification must be provided,
and what penalties may be required in the event of cancellation.

Force Majeure (Act of God)

In the force majeure clause, both parties agree on which circumstances, deemed to be
beyond their control, will allow an event to be canceled without penalty to either party. These
occurrences may include hurricanes, earthquakes, floods, volcanic eruptions, tornadoes,
wars, famines, or other disasters.

Arbitration
It is a common practice to include in event management agreements an arbitration
clause in place of a legal judgment when both parties fail to agree. The use of arbitration
may save both parties substantial costs over traditional litigation.

Billing
Because may events involve entertainers, the agreement must define how entertainers
will be listed in advertising and in the program.
67
Time is of the Essence
The time-is-of-the-essence clause instructs both parties that the agreement is valid
only if its is signed within a prescribed period of time. This clause is usually inserted to protect
the person making the offer from loss of income due to late execution by the buyer.

Assignment
Agreements should contain clauses indicating that the contact may not be assigned
to other parties. For example, if Mary Santos has executed the agreement on behalf of XYZ
Company, the agreement may not be transferred to Santos’s successor if Mary Santos
leaves the XYZ Company.

Insurance
Agreements usually detail the type and limits of insurance that must be in force by both
parties as well as a requirement that each party co-insure the other.

Arbitration
It is a common practice to include in event management agreements an arbitration
clause in place of a legal judgment both parties fail to agree. The use of arbitration may save
both parties substantial costs over traditional litigation.

Billing
Because any events involve entertainers, the agreement must define how entertainers
will be listed in advertising and in the program.

Time is of the Essence

The time-is-of-the-essence clause instructs both parties that the agreement is valid
only if it is signed within a prescribed period of time. This clause is usually inserted to protect
the person making the offer from loss of income due to late execution by the buyer.

Assignment
68
 Agreements should contain clauses indicating that the contract may not be assigned
to other parties. For example, if Mary Santos has executed the agreement on behalf of XYZ
Company, , the agreement may not be transferred to Santos’s successor if Mary Santos
leaves the XYZ Company.

Insurance
Agreements usually detail the type and limits of insurance that must be in force by
both parties as well as a requirement that each party co-insure the other.

Hold Harmless and Indemnification

In the event of negligence by either party, the negligent party agrees to hold the other
party harmless and to defend (indemnify) them against harm.

Reputation
Some event managers include a specific clause that recognizes the importance of the
purchaser’s reputation as states that the event manager will exert his or her best efforts to
protect the purchaser’s reputation during the event.

The Complete Agreement

The complete agreement is the final clause which states that the agreement
constitutes the full understanding of both parties.

Other Agreements
There are other management agreements aside from the main event agreement.
These are:

1. Consulting agreement- an agreement in which one party, usually the event manager,
agrees to give consulting services to another party.
2. Employment agreement- an agreement in which an employee agrees to particular terms
of employment.
3. Exhibitors contract- an agreement between the exhibitors and the sponsor of an exhibit
to rent a booth at the exhibit.

69
4. Hotel contract- an agreement between the hotel and the organization holding an event
to furnish rooms, function space, and food and beverages services for a particular event r
several events.
5. Non-compete agreement- an agreement in which an employee agrees not to engage in
a contract in a particular industry for a certain period of time after the conclusion of
employment.
6. Purchase order- an order to a seller to supply products or services.
7. Sponsorship agreement- an agreement between a sponsor and an event organizer in
which the event organizer agrees to give marketing services to the sponsor for specific
payment.
8. Vendor agreement- an agreement between the seller and the event manger to supply
particular services or products for an event.
Meaning of Permits
Permits are issued by local governments. They allow the event manager to hold event
activities. A permit is issued only after the necessary documents have been and the
necessary payment has been made.

Meaning of Licenses
A license is issued by a government agency or by a private association. It allows the
event manager to hold a particular activity. There is a slight difference between a permit and a
license. There are strict requirements for obtaining a license than those required for obtaining
a permit. Permits and licenses must be acquired for several events. The bigger the event, the
more permits and licenses must be acquired.

Synergistic Relationship of Contracts, Permits, and Licenses

The event manager must comprehend the importance of contracts, permits, and
licenses in organizing modern events. Contract permits and licenses have legal, ethical, and
risk management effect. To produce positive results, event managers should cooperate with
the concerned agencies.

Risk Management Procedures

When people gather together for celebration, reunion, and business or education
purposes, there is a corresponding risk of losing life or property. Several accidents have
70
happened at events. The effects of these disastrous happenings are increased expense, loss
of money, and loss of business. Experts in risk management have established basic rules to
manage risks during events. These are:

1. Avoid or diminish the risk- each circumstance should be assessed for possible risks.
These risks should be determined and avoided.
2. Transfer the risk- for risks that cannot be avoided and for which the event manager
should not be held liable, the event manager should review and check whether they are
the responsibility of someone else, as in the case of a delegate slipping on a wet floor in
the restroom. Suppliers in events are required to share in the liability for the event.
3. Devise backups and alternatives-alternative plans should be ready to be put into place.
4. Distribute the risk- obtaining various sources of revenue for an event including many
sponsors can reduce the risk of failure to generate the needed revenue.

Risk Control Measures

The following are the risk control measures:
1. Elimination plans- for example, removal of dangerous children’s equipment
2. Substitution plans- for example, replacing slippery tiles in the restroom with non-slippery
tiles
3. Isolation plans- for example, isolating dangerous or noisy equipment
4. Engineering controls- for example, using fences to prevent access to busy roads
5. Administrative controls- for example, using warning signs, trained staff, and well-
developed procedures.
6. Contingency plans- for example, evacuation as a contingency plan in case the risk
cannot be completely avoided.

CHAPTER ACTIVITIES

1. Design a risk management plan for your event. Describe how the plan will change based
on changing weather conditions.

71
2. Research on the types of insurance that must be purchased to reduce your financial
exposure.

CHAPTER QUIZ

I. Identify the following:

___________________________1. A legal document defining responsibilities for all parties
concerned
___________________________2. A document giving official permission to conduct a
specific activity
___________________________3. An order to a vendor to provide services or products
___________________________4. An agreement in which an employee agrees to specific
trms of employment
___________________________5. A means of safeguarding or protecting against risk or
injury
___________________________6. A judicial proceeding
___________________________7. An agreement between a vendor and an event manager
to provide specific services or products for an event
___________________________8. A clause which defines how and when the funds will be
paid to the person making the offer
___________________________9. The service or product given by one party to another
___________________________10. A clause which defines what one party will provide the
other upon the acceptance of the offer

II. Enumerate the following:

11-12 The risks of an event
13-16 Reasons why an event must comply with existing laws and regulations
17-20 Rules in risks management

72
 CHAPTER 9 THE ROLE OF ETHICS IN THE MICE INDUSTRY

Learning Outcomes
At the end of the chapter, you should be able to:
1. Define ethics;
2. Describe the role of ethics in society;
3. Discuss the unethical practices in the MICE industry; and
4. Explain the importance of a code of ethics.

Meaning of Ethics
According to the New Encyclopedia Britannica, ethics is a discipline concerned with
what is morally good and bad , right and wrong. The word ethics comes from the Greek word
ethos which means “character” or “guiding beliefs, standards, or ideals that permeate
society”. The study of ethics is the viewing of ethical concerns and the possible
consequences in the light of one’s values (Keiser, 2005).

The Role of Ethics in Society

The study of ethics has now become an important topic in society. At present, ethical
dilemmas plague society. The government is haunted by the unethical behavior of past
officials. Corporations are suffering from allegations of misconduct.
73
 James Keiser gives the following reasons for the current interest in business ethics:
1. A drift toward materialism and greed, pushing people to acquire wealth or status beyond
their needs and to want more regardless of what it takes to get it;
2. The deregulation of some industries, intensifying competition and encouraging mangers
to cut corners;
3. The growing size of business enterprises which dilutes and spreads personal
responsibility for unethical acts;
4. A growing hedonism, leading people to be more concerned with their own happiness than
responsibility to other;
5. A lack of moral leadership among prominent people and abundant examples of people
who prosper from moral laxity and greed;
6. The breakdown of the family and the sense of familial responsibility traditionally
transmitted to children; and
7. An increased reliance on government which has decreased the individual’s sense of
responsibility for himself or other.

Ethical practices are the result of an organization’s commitment to serve its clients in a
fair and equitable manner. The structure of an organization dictates its ability to respond to
situations in an ethical manner.

According to Solomon and Hanson, there are three reasons why ethics is important.
1. Ethical errors and careers end more quickly and more definitely than any other mistake in
judgment or accounting.
2. Ethics provides the broader framework within which buiness life must be understood.
3. Nothing is more dangerous to a business than a tarnished public image.

Unethical Practices in the MICE Industry

In the MICE industry, there are plenty of opportunities for unethical behavior. There are
certain practices within the MICE industry that are more likely to lead to unethical behavior.
The following are some of the practices:
1. Familiarization tours
74
2. Overbooking
3. Commissions
4. Gift-giving
5. Employment, rates of pay, and working conditions

The Importance of a Code of Ethics

Ethics is a way of life that depends on honesty, integrity, and courtesy. Individuals
should develop their own personal code of ethics. They must determine what exactly they
believe in and what truths govern their lives. Based on these truths, they can develop their
own personal code of ethics. They must then judge all actions based on this code. MICE
organizations need to develop and maintain both good business and ethical practices.
Professional associations related to the MICE industry have developed codes of ethics for
their members to adhere to.

75
 CHAPTER ACTIVITIES

1. Develop your own personal code of ethics

2. Make a checklist of poor ethical judgments that would affect one’s career

CHAPTER QUIZ

I. Identify the following:

______________________1. A complimentary or reduced rate tour for MICE organizers to

acquaint them with a specific destination.
______________________2. A fee allotted to an agent for services rendered
______________________3. The study of the moral value of human conduct
______________________4. The practice of committing more rooms or seats that are
available
______________________5. Rules and principles that govern the moral value of human
conduct
______________________6. Conduct which is morally wrong
______________________7. The doctrine that the pursuit of pleasure is the highest good
______________________8. Salary which is approved or accepted.
______________________9. The state of being employed
______________________10. The act of giving presents

II. Enumerate the following:

76
11-15 Unethical practices in the MICE industry
16-18 Reasons why ethics is important
19-20 The importance of a code of ethics

CHAPTER 10 Technology for the MICE Industry

Learning Outcomes:
At the end of the chapter, you should be able to:
1. Determine the role and scope of technology in the MICE industry
2. Explain the advantages of technology over manual systems
3. Discuss the data processing systems;
4. Describe the types of hardware configuration;
5. Explain the significance of the Internet; and
6. Discuss the technology trends.

77
The Role and Scope of Technology in the MICE Industry
The major role of technology in the MICE industry is to gather,store, and provide data
to the different levels of users. The significant advantages of technology over manual systems
are:
1. Opportunities to use data in a more effective and appropriate way;
2. Greater dependability; less possibility of human error;
3. Harmonious operations;
4. Safer data; and
5. Real-time analysis and review

Data Processing Systems

Data processing systems are divided into three types:
1. Batch processing
2. Online real-time processing
3. Time-sharing and service bureaus

Batch Data Processing

In batch data processing systems, event negotiations are gathered and prepared in
groups. All income for a simple day are considered batch negotiations and will be prepared
as a group. For example, all sales for one day are considered as “one day sale” and ill be
recorded in a computer system as s single batch. The system is simple and reliable. In
general, the rule technology is that the more complex a system is, the greater is the possibility
of errors. The biggest benefit of batch processing is that it is cheap.

Real-Time Data Processing

In a real-time processing system, negotiations are recorded as soon as they occur.
Because the database negotiations are continuously updated, the condition of all accounts
such as sales income, admission income, and inventory can be easily resolved. The data
processing systems of many MICE auxiliaries can be integrated into the processing unit of the
main office.

Hardware Configuration
Many types of hardware configuration are common in the MICE industry. These are:
78
1. Online systems;
2. PC systems; and
3. Distributed data processing.
Online Systems
Online systems are unique because each transaction is entered via a communication
device connected to a computer. A good example of such systems is magnetic cards.
Online systems may or may not be real-time systems depending on whether transactions are
processed and updated as soon as they occur.

Electronic data interchange (EDI) is being adopted by several large MICE companies.
EDI is a computer-to-computer exchange of intercompany information and data in a public
standard form. In an EDI system, documents such as purchase orders, invoices, attendance
projections, and checks are converted into standard form, allowing other employees to read
and accept them. The direct and indirect methods are used to implement the EDI. The direct
method connects the computer system of a MICE company with a major client or supplier.

The indirect method uses a network of several computers of companies that provides
a “mailbox” to be used by all. The network converts the message of senders into a format
preferred by receivers. The advantage of this method is that the sender can transmit
documents to several receivers without changing the format.

Distributed Data Processing

Several large MICE companies use PCs for both data processing and analysis. MICE
companies with branches across different locations usually use networks to process the
transactions of each branch and transmit them to the main office through communication
links.

Access Control
Access should be limited only to authorized persons in order to prevent unauthorized
use and change of files and data. In an online , integrated file system and EDI, access is
limited through control of the passwords. Password are codes used to access several parts of
a database. Some passwords allow the examination and recovery of data. Others allow
change of data. It is important that at least two people have master access to the database so
79
that if a person with master access is not available, the operation of the company will not be
affected.

Interactive Web
One of the most important events of the decade was the development of the Internet.
At first, it was only to academic institutions and the military. Later, it became a significant part
of the business community. As a start, companies set up websites that serve as an
information tool. Small MICE companies use websites to give basic information about their
services and how to contact them. The websites are use to attract potential customers and
can serve as a good marketing tool.The following are the advantages that a site can provide
to a MICE company:
1. Wide market reach
2. Ability to update information quickly and easily.
3. Ability to gather data about potential customers
4. Ability to decrease marketing expenses

The internet is a great equalizer. It gives small and middle-sized MICE companies the
same opportunities as large MICE companies to reach potential clients.

MICE Industry Database

The MICE industry is growing very fast. A major problem of MICE companies is how to
keep their database up-to-date. Very often a number found in a catalog has already been
changed when the number is dialed. Almost every catalog is outdated as soon as it leaves the
print shop. The accuracy of documents decreases over time. One way of solving this problem
is by getting online. Internet databases are the most reliable in the MICE industry.

A database has two major criteria. The first is its resources. The more resources a
database has, the more reliable it becomes. The second is its search features. A database
can be searched in many ways such as alphabetically by region , by services offered, by
price, and by age. The more criteria a database has, the more reliable it becomes. Search
criteria should be user-friendly and easy to customize.

Trends in Technology
80
 At present, almost all MICE offices have a computer, internet access, and email. In the
next 10 years, technology will be more customized. An important innovation in the global
high-technology revolution is the development of the wireless application protocol or WAP.
WAp was developed within the wireless industry from companies such as Nokia, Phone. Com
and Ericson. The WAP serves Internet content and services to wireless clients with the sue
of WAP devices such as mobile phones and terminals. According to the International Event
Society, more than 90 percent of MICE professionals use cellular technology. The cell phone
is an indispensable tool in the MICE industry.

81
 CHAPTER ACTIVITIES

1. Your MICE organization is planning to purchase a small MICE company with insufficient
technology resources. You are assigned to manage the technology transaction. Make a
checklist of possible high-risk areas in technological integration that your organization
may face during and after the purchase.
2. Research on the role of technology in the future of the MICE industry.

CHAPTER QUIZ

I. Identify the following:

______________________1. A data processing system in which event transactions are
collected and processed in groups.
______________________2. A company that processes transactions for other agencies.
______________________3. It is an exchange of intercompany information and data in a
public standard form.
______________________4. Codes used to access several parts of a database
______________________5. A system in which each transaction is entered via
communication device connected to a computer.
______________________6. A marketing tool which is used to attract potential customers.
______________________7. A data processing system in which transactions are entered as
they happen
______________________8. A system that services more than one branch of a company
______________________9. A method that connects the computer system of a company
with a major client or supplier
______________________10. An entire body of methods and materials used to achieve
commercial and industrial objectives

II. Enumerate the following:

11-15 Advantages of technology over manual systems
16-18 Kinds of data processing systems
19-20 Criteria of a database
82
 CHAPTER 11 CHANGES AFFECTING THE MICE INDUSTRY IN THE NEXT MILLENIUM

Learning Outcomes
At the end of the chapter, you should be able to:
1. Describe the expectations of MICE attendees in the future;
2. Discuss the changes affecting the host cities;
3. Explain the importance of professional education in the next millennium;
4. Clarify the role of professional and trade associations in adult education in the future; and
5. Analyze the impact of the globalization of the world on the MICE industry.

Expectations of Attendees
In the future, there are thee specific areas that attendees will be looking at to
determine whether or not they will attend a convention or event.
1. They expect the event to be productive.
2. They expect that the event will allow them to do serous business and at the same time
enable them to grow personally.
3. Attendees expect the convention or event to provide a high level of service.

Changes Affecting Host Cities

83
 Conventions and events generate revenue for the cities that host them. Many cities are
looking to the MICE industry to provide new revenue. This entails many changes for some
cities. These changes often involve large expenditures to money to upgrade existing facilities
or to create new ones. Cities need to implement the necessary changes that will make their
communities easily accessible to group business.They also need to look at their intercity
transportation systems to make sure that groups can move easily in and around the city.

Existing tourist attractions need to be best promoted and other tourist attractions have
to be developed to make the city attractive to group business. Cities that have developed their
facilities have obtained huge returns on their investments.

Professional Education in the NEXT Millennium

Professional education has played an important role in the past and will play an even
more important role in the future. Members of professional organizations have learned
through apprenticeships with master craftsmen, attending professional meetings, reading
professional publications, and participating in professional certification programs.

The Impact of Globalization on the MICE Industry

In the future, the composition of the convention and events market will continue to
change due to global communications and expanding travel. Our global society opens a new
worldwide market for conventions and events. There is a need for those involved in the MICE
industry to be able to deal with many different cultures in the same environment. It is
important for the leaders of the industry to understand how to process information about
various cultures to enable the multicultural participants to communicate with each other.

According to Marjina Kaplan, company or association executives should discuss three

key factors before they decide to organize an international convention or event. These key
factors are:
1. They must review the complete demographic profile of the participants.
2. The executives planning the convention or event must carefully review the objectives of
the event.
3. The decision-makers must carefully review the benefits obtained by the attendees of the
international convention or event.
84
85
 CHAPTER ACTIVITIES

1. Research on how MICE professionals can prepare themselves for the future.
2. Conduct a study on how changes in host cities will affect the MICE industry.

CHAPTER QUIZ

I. Identify the following:

__________________________1. An individual attending a convention or meeting
__________________________2. A requirement of professional groups in which members
must certify participation in formal education programs
__________________________3. A nonprofit organization designed to assist individuals in
their pursuit of common goals and interests
__________________________4. A city used as venue for a convention, meeting, or
exposition
__________________________5. A period of one thousand years
__________________________6. A type of service which is friendly, cheerful, and gracious
__________________________7. A person who is tolerant of other cultures and customs
__________________________8. A meeting held outside one’s home country
__________________________9. Education for mature individuals
__________________________10. A set of beliefs, values, attitudes, behavior of a group of
people that are transmitted from generation to generation

II. Enumerate the following:

11-13 Expectations of MICE attendees in the future
86
14-17 Changes affecting host cities
18-20 Factors to consider before organizing international events

CHAPTER 12 SPECIAL EVENTS MANAGEMENT

Learning Outcomes:
At the end of this chapter, you should be able to know:
1. A special event;
2. Kinds of special events;
3. History and background of special events;
4. Planning tools for a special event;
5. Importance of city and community infrastructure when hosting special event;
6. Merchandising and promotion of special events;
7. Sponsorships for special events;
8. Target market for a special event;
9. Budget for a special event;and
87
10. Breakdown of components of a special event.

The term special event is used as an umbrella term that includes all functions that
bring people together for a unique purpose. Most events require planning by an organizer. A
special event, such as a city fair or festival, can mean working with community infrastructure,
merchandising, promoting, and in some cases, dealing with the media.

Definition of a Special Event

According to the Convention Industry Council (CIC), a special event is a one-time
event that is for the purpose of celebration; a unique activity.

Goldblatt defines a special event as a unique moment in time celebrated with

ceremony and ritual to satisfy specific needs.

Kinds of Special Events

1. Civic wants
a. Centennials
b. Founders Day
2. Mega-Events
a. Olympics
b. America’s Cup
c. World fairs
3. Festivals and Fairs
a. Community Events
b. Fairs (not-for-profit)
c. Festivals (for-profit)
4. Expositions
a. Meeting place for suppliers and buyers
b. Education
c. Entertainment
5. Sporting Events
a. Super Bowl
b. World Series
88
c. Masters Golf Tournament
6. Social Life Cycle Events
a. Weddings
b. Anniversaries
c. Birthdays
d. Reunions
7. Meetings and Conventions
a. Political National Conventions
b. National Restaurant Association Convention
c. Professional Convention Management Association Annual Conference
8. Retail Events
a. Long-range promotional events
b. Store openings
c. Celebrity appearances
d. New product rollouts
9. Religious events
a. Papal inaugurations
b. Hajj (Mecca)
c. Easter

History and Background of Events

Special events have been part of human history since ancient times. Peeople
celebrated births, weddings, and deaths throughout history and hold special gatherings such
as Olympic games and gladiatorial contests. Modern historians credit the use of the term
“special event” to Robert Janni, a Disney imagineer. The Problem Walt Disney faced was that
families who visited the theme park were tired after a day of adventure. Most of them left the
park at 5 p.m. each day even though the park stayed open many hours longer. To keep the
attendees at the park. Robert Janni proposed producing a nightly parade called the “Main
Street Electric Parade” with many floats decorated with lights. It was successful keeping
people in the park at night. When asked by a reporter what he called the parade, he
answered “ A Special Event” Since then, the use of special events to attract or to maintain
crowds has become a mainstay.

89
Planning Tools for a Special Event
Special events management requires planning tools. The first of these tools is a vision
statement of the event. The vision statement should identify the who, what, when,where,
and why of the event. Though involved, the event should focus on the vision. This can be
done by continuously monitoring, evaluating, and measuring the progress toward the goals of
the event.

Who-are the people or organizations who would like to host and organize it.
What- is a parade which demonstrates the pride and local tradition of the people of the city.
Where- is the downtown area of the city with the floats and bands marching down the main
avenue.
Why- is the tradition, fun, pride, and tourism that promotes the city and brings revenues to
local businesses.

The following are some management tools that are used in staging events:
1. Flow charts and graphs are used for scheduling such as the start of the meeting, the time
for coffee breaks, time for the meeting to resume and to end.
2. There should be a well-defined set up and break down schedules.
3. Policy statements should be made to guide in the decision- making process.

Understanding Community Infrastructure

The main component in planning a successful event is an understanding of the
community infrastructure. The infrastructure may include the CEO of the company, politicians,
prominent business leaders of the community, civic and community groups, the media, and
other leaders of the community. The role of business leaders is to provide sponsorships,
donations, staff, or a workplace for the event. Frequently, community groups serve as
volunteer workers for the event. They provide not only financial commitment but also physical
and emotional commitment.

Merchandising and Promotion of Special Events

90
 Merchandising and promotion of special events are other planning tools to attract
attendance and increase the profitability of the event. The two main objectives of a special
event are profit for the vendors and a memorable experience for the attendees. The elements
of the promotional mix for successful special event management.

These are advertising, direct marketing, interactive or Internet marketing, sales

promotion, publicity or public relations, and personal selling.

Distinctive Roles of the Promotional Mix Model

A. Advertising
B. Direct marketing
C. Interactive or Internet marketing
D. Sales promotion
E. Publicity and Public Relations
F. Personal Selling

Sponsorships for Special Events

Company sponsorships have increased due to the following:
1. Change in the economy
2. Power to attract several groups of buyers
3. Power to evaluate outcomes
4. Disintegration of the media
5. Increase in the number of several groups of people

Target market for a Special Event

Target marketing is determining the persons who like to attend a particular event.
Target markets are the people who would like to participate in a specific event.

Preparation for a Special Event

The following steps need to be followed in preparing a special event:
1. Choose a venue.
2. Obtain permits
a. Parade permits
91
b. Liquor permits
c. Sanitation permits
d. Sales permits or licenses
e. Fire safety permits
3. Involve the necessary government agencies. For example, to use the city recreation
facilities, work with the Department of Parks and Recreation.
4. Involve the health department if there will be food and beverage at the event.
5. Meet all pertinent parties in person to clear up any misconceptions early on.
6. Be aware of the complexities of dealing with the public sector.
7. Acknowledge the logistics that a community must contend with for a certain types of
special events such as street closures for a marathon.
8. Establish a security plan which may include the security given by the venue and
professional law enforcement.
9. Obtain liability insurance. The most vulnerable area is the liability regarding liquor and
liquor laws.
10. Determine a ticket prices if the special event involves ticketing.
11. Determine ticket sale distribution if the special event involves ticketing.
12. Take charge of the following basic businesses that support the function:
a. Accounting systems such as a genera ledger, financial reporting, accounts payable,
accounts receivable, and payroll
b. Human resources system such as recruitment, personal records, jb classification, and
description
c. Registration
d. Ticketing which includes mail order, seat inventories, seat assignments, and gate sales
e. Scoring and results which include scoreboard and displays

The type of preparation will depend on the type of special event being held. A wee-
prepared event will produce more profit.

Budget for a Special Event

A special event must be both successful and profitable. Profitability requires an
understanding of the important areas involved in the cost of an event. These six areas are :
1. Rental costs
92
2. Security costs
3. Production costs
4. Labor costs
5. Marketing costs
6. Talent costs

Breakdown of a Special Event

Breaking down the event usually involves various tasks that an organizer must
complete. First, the parking staff should hasten the flow of traffic away from the event.
Second, a debriefing of the staff should be made to find out what happened or did not happen
at the event. There may be some issues that will need documentation. It is essential to have
written reports to refer to for next year’s event.

The following sources may add information to the report:

1. Participants- interview some of the participants from the event.Their perceptions and
expectations may provide valuable insight.
2. Media and the press-ask whether it was or was nos a press-worthy gathering.
3. Staff and management- get feedback from the staff and management.
4. Vendors- ask vendors how the event would be improved.

The following steps should be taken in a final assessment of the event:

1. Complete the income and expense statement.
2. Finalize all contracts from the event. Compare final billing with actual agreements.
3. Send the media a final press release regarding the overall success of the event. Arrange
interviews with the press. This could be newsworthy if the event generated high revenue
for the community.
4. Send thank you letters to the volunteers who were involved in the event. A celebration
with the volunteers should be made, especially if the event was financially and socially
successful.

After the breakdown of the elements hss taken place, the organizers can examine the
important lessons learned in staging the event

93
 CHAPTER ACTIVITIES

1. Conduct a study on the benefits that will be gained by a community for sponsoring a
festival or event.
2. Research on why volunteers are one of the key factors in the success of special events.

94
 CHAPTER QUIZ

I. Identify the following:

__________________1. A unique activity that is celebrated with ceremony or ritual to satisfy
special needs.
__________________2. A special celebration usually involving a community
__________________3. A paid form of nonpersonal communication about the event
__________________4. A marketing activity that provides incentives to the sales force,
distributors, and consumers in order to stimulate sales
__________________5. A form of person-to-person communication in which a seller tries to
persuade prospective event attendees
__________________6. Consumers who would like to attend an event
__________________7. It is a a marketing tool that helps in paying the expenses of a special
event
__________________8. The first planning tool for a specific event
__________________9. A form of promotion whose aim is to establish a positive image of
the special event
__________________10. Income or financial return

II. Enumerate the following:

11-16 The costs of special event
17-20 Steps in the final assessment of the event

95
96
97