Event Management Ignou1

8/8/2019 Event Management Ignou1

1/11

51

UNIT 8 CONVENTION MANAGEMENT I

Structure

8.0 Objectives8.1 Introduction8.2 Significance of Convention and Meeting Business8.3 Site Selection8.4 Convention Centres8.5 Convention Centre Location8.6 Types of Centres8.7 Centres Environment8.8 Sponsors8.9 Marketing and Promotion8.10 Let Us Sum Up8.11 Clues to Answers

8.0 OBJECTIVES

In this Unit attempt to answer the following questions:

What are convention centres all about? How we choose a destination for a convention?

What are the various marketing activities required for selling conventions? and What is the significance of conventions and meetings?

8.1 INTRODUCTION

Convention management requires a lot of hard work and labour. Unless and until everything runssmoothly the whole time, effort, and money invested is going to go waste. In this scenario it isimportant that every aspect from pre-planning to post-convention is taken care of in a veryorganized manner. In this Unit we are going to understand the importance of product design forholding a convention. We are also going to look at the importance of marketing in conventionmanagement. To recognise and define the main functions of a host property and to understand thevarious duties of the representatives of the host property is another aspect dealt with in the Unit.Lastly, the Unit attempts to understand the different types of host properties while differentiatingone from other.

8.2 SIGNIFICANCE OF CONVENTION AND MEETINGBUSINESS

The meeting and convention segment of the hospitality industry is divided into two main sections:corporate business and association business. According to Successful Meetings magazine in itsState of the Industry Report, corporations spent $37 billion sending their employees to meetings.


2/11

52

The average company spent $60,500 on meetings. Meetings and Conventions magazinereported that more than 7,06,000 corporate meetings are held annually in hotels and motelsthroughout the country.

On the association side of the question, Meetings and Conventions magazine reported that morethan 197,000 association meetings were held annually. Associations are also responsible for

sponsoring numerous educational seminars. Estimates of the attendance for both meetings andeducational seminars are over 31 million people annually. Government, social/fraternal,education, military, and entrepreneurial, while not as large as the association and corporatesegments, still makes up a significant portion of the meeting and convention business.

8.3 SITE SELECTION

Site selection is a very important process in conducting a convention. A poorly selected sitewould mean that the entire efforts of the people involved would go waste. We would be using theterm host property to refer to any facility used to house a meeting, convention, or exposition.

The site selection process is an extremely important part of the sponsoring organizationsactivities. Regardless of the type of meeting, convention, or exposition, the site is a critical factorin the success of or failure of the event. Convenience and cost are the two most important factorsin the site selection process. Based on surveys done by American Express, (U.S. Travel DataCentre) one can conclude that, although exciting locations and popular pastimes such as golf,tennis, and free time are important in the site selection process, they rank well behind cost andconvenience in the eyes of the meeting planner or exposition manager.

To begin the site selection process, the planner must first consider the goals and objectives thathave been established for the meeting, convention, or exposition. Based on these goals andobjectives, they develop a meeting plan or format. The next step is to develop a group prospectusthat will enable the meeting planner or exposition manager to determine the physicalrequirements for the meeting, convention, or exposition. We will be discussing the importance of prospectus in the next unit.

The purpose of the prospectus is to provide a clear and concise document that outlines in detailthe history of the sponsoring group and attendees as well as a proposal of the specificrequirements for the meeting or convention. All site requirements are to be included, such aspreferred dates; number and type of guest room; number, size and usage of meeting rooms andestimated times required; range of acceptable rates; dates and types of guest room; number, sizeand usage of meeting rooms and estimated times required; range of acceptable rates; dates andtypes of food and beverage events; exhibits and any other special events of activities; and anyrelated information such as complimentary requirements.

There are many types of facilities that host these types of events. These facilities fall into sixbroad categories: convention centres, conference centres, cruise ships resorts, hotels, andmultipurpose facilities. Each of these types of facilities is designed to meet the specific needs of aparticular group. We will address the differences between these six categories as well as provideinsight into the overall role of the host property.

We have already talked about the significance of the convention and the meeting industry. Thenumbers speak for themselves. Clearly a hotel, motel, or resort that has the physical facilities tohost meetings or conventions should review their marketing plan to ascertain the viability of attracting these markets.


3/11

53

Role of Host Property

The role of the host property is to provide the facilities and services needed to assist in theexecution of meetings, conventions, and expositions. In the past, when people thought about therole of the host facility, they thought of only rooms and food. Today the host property is muchmore intricately involved with the overall planning and execution of the meeting. This

involvement may include helping to design and market the program, assisting in the planning of hospitality programs, theme parties, and sporting events, and training new meeting planners. Wewould be talking about the planning part of the conventions in the next unit.

Many of the major convention hotels actually go so far as to provide training seminars for themeeting planner. Hilton Hotels has designed a Host (Hilton on-site Training) program to improvecommunication between the host property and planner. This program gives the planner theinsights into the inner workings of the hotel, thus stripping away any lines of miscommunicationand ultimately increasing the efficiency from both sides (Tannenhaus 1986). Sheraton has asimilar program called Sheraton Showcase, which teaches planners the ABCs and XYZs of meeting planning (Lieberman 1991, p.33). In India we do not have any of this insight probablybecause the industry is not so well developed and also because there is less interest on the part of

both the private sector and the public sector in these activities.Although the practices just discussed are good business, they are also just another sign of thegrowing emphasis placed on service. Service is the buzzword of today. Increasing competition inan overbuilt economy had forced the hospitality industry to reevaluate all its affected areas of theindustry, but none more than those hotels, motels and resorts that derive a large percentage of their income from conferences and meetings. Because of the recession and the decrease of discretionary income, associations and corporation who typically host conventions and meetingsare faced with decreasing revenues. Therefore, they are becoming very selective in the way theyspend their extra money. For the hospitality industry this means that they must work harder togain their portion of this discretionary income. In the past, this has meant offering newer roomsand more amenities, but the industry is also facing their own revenue shortage, thus the quality of

service has become the point of distinction. Since todays conference attendees are more selectivein the number of conferences they are attending, suppliers must focus on providing a level of services that leads the guest to feel at home, well cared for, and anxious to return

All those associated with the host property must exude this hospitable service attitude. Everyonefrom the general manager to the housekeeper must understand the importance of service in his orher daily activities. For this to take place, commitment to a positive service attitude must start atthe top.

8.4 CONVENTION CENTRES

Convention centres have their own importance when compared to any other location for holding aconvention. Most of the prestigious companies like to hold their conventions at sites that areequivalent to their status. Furthermore, convention centres are also more useful than ordinaryhalls. At any one-time convention centres can usually house a larger number of people than canthe largest meeting room in most hotels. A convention centre meetings seating capacity can bein the thousands. Because of the high costs involved in convention centre construction, thesecentres generally must be financed by public funds with the justification that this expenditure of public fund allows more conventioneers to be accommodated, thus extending the need for morelocal employment. However, the need for full-time employees at a centre is somewhat limited,


4/11


5/11

55

building special convention centres to add to the hotels inventory of meeting-room space. Ourcountry has not been able to take advantage of the convention boom still because it has notrealized the importance of centre location and does not have a very supportive and enthusiasticgovernment.

8.6 TYPES OF CENTRES

A number of different types of convention centres have emerged. One of these is the ExecutiveCentre designed to handle the specialized requirements of top corporate management. Suchfacilities feature sophisticated audio-visual equipment and similar convention aids run by highlyprofessional convention coordinators. Perhaps a relevant example of this kind would be theerstwhile Vigyan Bhavan hall, a centre used primarily for exclusive conferences and conventions.

Another type is the Corporate Convention Centre used primarily for a companys in-house use,although sometimes this type of centre will be rented out to others. An example of this type of centre can be the FICCI auditorium in New Delhi.

A third type is the non-profit centre, usually part of a university campus where the emphasis is onadult (not necessarily corporate) continuing education. This type of centre may offer dormitoryaccommodations only to attendees. All conference and convention centres of the universities fallunder this category.

The final category is the resort conference centre at which there is more emphasis on recreationthan is typical of the other three types. Resort centres, during the off peak time for conventions,will often try to draw transient guests. These centres would have apart from the requirements of the business traveller some sort of recreational aspects also. Recreational facilities generallywould include tennis courts, a swimming pool, and maybe an indoor games room.

8.7 CENTRES ENVIRONMENTConvention centres need to create the right environment for their market, that is, an environmentfor learning and seriousness. Apart from any recreational facilities they may have, they will needto avoid any distractions that nightlife and nearby shopping and other attractions might create.They are thus often located in remote, rustic places far enough away from the corporationsoffices that attendees are not readily inclined to go back to the office to catch up on work. Theirremote locations thus require good efficient transportation routes and possibly transportationfacilities (limousine pickup) to nearby airports.

Because these centres have a captive market, usually for two or three days , that cannot usuallydine elsewhere, both the foods facilities and the quality of the food must be first class. Thesefood and beverage operations also must be based on the convention schedule and not the centresschedule. S Buffet food service is often found at these centres.

Although many convention centres have been created from existing hotels and resorts, theconversion of bedrooms and meeting rooms does not always fit what is required. Today,therefore, many new convention centres are being specially designed and built for educationaland/or business conventions. The conventions can range from less than fifty to as many as threehundreds attendees. If a group is larger than this, the size of hotel required will begin to detractfrom the needs of the typical convention group.


6/11

56

There are many groups that are considered consumers of meetings and conventions. These groupsvary from corporations to associations to religious groups. They sponsor meetings for numerousreasons dealing with the specific purpose of their organization. In this unit we will also look at thegroups sponsoring meetings, conventions and expositions, their reasons and purposes in doing soand the specific types of meetings, conventions and expositions sponsored.

8.8 SPONSORS

Sponsors of conventions, meetings and expositions are as varied as the convention, meeting orexposition itself. They may be groups or individuals. Taking an overview, the sponsors of conventions, meetings or expositions can be:

Associations Corporations Trade unions

Independent companies who sponsor and operate trade shows Religious groups Tour groups Theatre and arts groups Social organizations

These organizations decide to sponsor a convention, meeting or exposition for many reasons. Inthe case of corporations, conventions may be designed to disseminate information, solveproblems, train people, or plan for the future. Associations may sponsor conventions, meetingsand expositions for the purpose of networking, educating members, solving problems, orgenerating revenue.

Conventions serve a valuable function within corporations and associations. The following listdelineates just a few of the functions of meetings (Woods and Berger, 1988, pp. 101-102):

Generate a spirit of unity and cooperation that contributes to the formulation of a collectiveidentity;

Enhance communication by creating a pool of shared knowledge; Provide a forum for the generation of new ideas; Afford management an opportunity to define and promote the collective aim of the

organization;

Obtain increased commitment to decisions by involving more individuals in the decisionmaking process; and

Provide a setting in which company leaders can act like leaders on a very visible level.

Sponsors of conventions, meetings and expositions are responsible for the conceptualisationphase of a convention, meeting or exposition. This phase must occur before the logistics of ameeting are planned. In fact, without the proper conceptualisation, a meeting is likely to beunfocused and unproductive. This phase involves, first of all, determining whether or not there is


7/11

57

even a valid need for the convention, meeting or exposition. Once the sponsor can justify holdingthis convention or meeting, they can then attend to the other aspects of the conceptualisationphase, such as establishing a list of potential attendees and developing the philosophy of theconvention, meeting or exposition.

Determining whether or not there is a need for the convention, meeting is the first and perhaps the

most important step in planning a convention or a meeting, and yet this is the step most oftenoverlooked. Many executives consider conventions and meetings an unproductive use of theirtime. There have been numerous surveys done to ascertain individual perceptions of theimportance of conventions. These surveys report that participants rate nearly on half of all theconventions they attend as a waste of time ( Ashendrenner 1998, p. 43). This is particularlydistressing, considering that that the average business convention of ten to twelve managers costsa lot to the company. Perhaps the reason so many of these meetings are considered unproductiveis because many of the individuals charged with the responsibility of organizing meetings havenever received any formal training in meetings management.

According to Ashenbrenner , a meeting or a convention should be viewed as a last resort. Hesuggests a number of questions that should be asked before a convention is called(Ashenbrenner 1988, p.43):

1) Do I need the resource capability of the group?

2) Will a meeting be faster, and can we accomplish more?

3) Can I gain commitment to ideas and decisions by having the group present?

4) Can I prepare for and conduct this meeting properly?

5) Will a convention tie up people too long?

6) Will a convention cost too much in term of salary and lost productivity?

7) Will people have adequate time to prepare?

8) Will personality clashes or disagreements sabotage the meeting or the convention?

9) Will the convention have solid leadership?

10) Do the advantages outweigh the disadvantages?

Once these questions are answered and a need for a meeting or a convention established, theindividual responsible for the convention must decide how to plan the event. Planning is often leftto individuals who have little if any knowledge about how to plan, organize, and executeconventions. Therefore, it is no wonder that conventions appear to be poorly organized and theparticipants become frustrated with the apparent waste of time. Many sponsoring organizationsfind that it is much more practical to hire an individual whose primary responsibility is to plan,organize and execute meetings. This is turn saves the sponsors money by avoiding some of theproblems just discussed.

8.9 MARKETING AND PROMOTION

The most carefully selected site in conjunction with a well planned, dynamic program orexposition will be all for naught if no one is there to see it. Therefore, the sponsoring organizationneeds to assure attendance. This is done through careful attention to the marketing materials


8/11

58

provided to the potential attendee of the upcoming event. This provides the first impression.Therefore, this material is responsible for setting the tone of the conference, meeting, orexposition.

Obviously, marketing and promotion is less of an issue for corporations, who by their very naturecan assure attendance at meetings. Therefore, this segment of this unit deals specifically with

those groups who have to encourage people to attend their functions.In order to successfully market and promote a convention or an event, the sponsoringorganisation must:

1) Determine their break-even attendance figures.

2) Develop a marketing plan

3) Develop a timetable

4) Implement the programme

5) Evaluate the program.

Marketing procedures should start with determining the breakeven attendance figures. Thebreakeven attendance figures is the minimum number of paying attendees the convention musthave in order to not lose money. If the convention is supposed to generate profit, the minimumnumber of attendees must, at the very least, create enough revenue to cover expenses. During theinitial planning phase, the planner and the sponsor should establish the absolute minimum numberof participants. Determining this number requires that the sponsors have a clear understanding of their budget.

Once the break-even figures are determined, the marketing plan must be designed. A marketingactivities plan must be done with respect to a particular meeting, convention, or exposition.Although this unit discusses marketing for a specific event that is a convention, one must alwaysremember the impact that the marketing has on the overall reputation of the sponsoringorganization. Marketing for a specific annual event also has carryover from year to year. Meaningwhereby that if marketed well the first few years then a particular annual convention wouldrequire lesser efforts the succeeding years.

A marketing plan should begin with a clear and concise understanding of the goals and objectivesfor the marketing and promotion of the convention. For instance, a sponsor may determine thatthe goal of the marketing plan is to increase awareness of the organization and its annual meetingor that the goal is specifically to increase attendance at said meeting. These goal and objectivesshould be explicit in nature and be easily measurable.

Next it is important to identify the target market. The sponsor must decide who they want toattend the event. In most cases this group has already been targeted and described in the

prospectus. Once the sponsor understands their targeted audience, they must develop appropriatemarketing and promotional strategies. For example if the target market is upper segment then adifferent strategy has to be undertaken in comparison to the low end market.

In determining the market strategies for the marketing and promotional activities, the sponsormust keep in mind what strategies will effectively reach the intended market and hold theirattention long enough to convey the message. The marketing strategy most often used for thetransferral of information regarding meetings, conventions, and expositions is direct mail. The


9/11

59

most common methods and things people most often responded to are brochures, invitations, andpersonal letters. Direct mailing tends to yield the best results for the money spent.

Secondary marketing strategies might consist of advertisements in trade journals or magazines,flyers, paid endorsements, telephone calls, or word of mouth. These strategies may or may not becost effective when compared with the overall effect of direct mail.

Choosing the marketing or promotional strategy is just the beginning. The targeted audienceprobably receives large quantities of mail each day. The challenge becomes to create a maile r thatstands out in the whole lot target audience receives and makes them want to open the envelope toread the contents. If they have solicited the information, they are very likely to read it. If themailing is unsolicited, they are unlikely to read it, and so designing an eye - catching mailing thatattracts attention is doubly important.

Once the marketing or promotional strategies have been determined, a timetable must be created.When do each of these strategies need to be implemented? Timing may be everything. Does thefirst suggestion of an annual conference appear in the previous years program? How much lead-time does each strategy require? For instance, it may require several months to shoot acommercial or to design and print a glossy brochure.

Professional Convention and Meeting Association, New York suggests that for an annual meetingthe following timetable be used as a guideline for pre- conference marketing strategies:

52 weeks before the event is the best time to announce the date and location of the meeting.

24 to 36 weeks before the event send out the first set of press releases. If budgets permit, a secondmailing of press releases should follow with any key pieces of information, such as keynotespeakers, educational seminars, and so on.

24 weeks before the event is the time to start advertising in key industry publications.

18 to 24 weeks prior to the event mail a second round of brochures to the targeted population.

Include registration and transportation information.14 weeks before the date of your event mail a second round of brochures to your targetedaudience.

8 to 12 weeks before the event mail a final reminder to your targeted audience.

2 to 6 weeks in advance of the conference, meeting or exposition send out badges, final programs,and any other promotional pieces that attendees should bring with them.

(Professional Meeting Management 1988, pp. 282 -283)

If budget or marketing strategies allow only one mailer to be sent to potential attendees, it issuggested that all of the relevant information concerning registration, transportation, housing,seminars, and so on, be sent six to eight weeks prior to the convention, meeting, conference, orexposition.

Marketing continues once attendees are at the event. Promotional gimmicks, such as pins,balloons, mints, banners, programs, table tents, proceedings, and fliers, can all be used tocontinue the promotion of special activities taking place within the main event. On- sitepromotional activities also include the marketing and promotion of future events. This can bedone through inserts in programs, handouts, fliers, and gimmicks. In developing the marketing


10/11

60

plan, certain criteria should be followed. Alastair Morrison states that the criteria for a marketingplan should be (Morison 1989, pp.201-202):

1) Based on fact;

2) Organized and coordinated;

3) Programmed;4) Budgeted;

5) Flexible;

6) Controllable;

7) Internally consistent and interrelated; and

8) Clear and simple

Implementing the marketing plan is closely tied to the timetable just discussed. Different parts of the plan need to the implemented at various times within the overall game plan. Timing is criticalto the success of a marketing plan. Evaluation should be considered in every step of themarketing plan. The evaluation of a program must be based on the desired results, which areclearly stated in the goals and objectives for the marketing plan. These goals and objectives havebeen carefully written to provide easy forms of measurement. Often, in the case of conventions,meetings, and expositions, the success of the marketing plan is judged by comparing currentattendance figures with previous years figures. While this might in part reflect the success of themarketing plan, other areas must be reviewed also. For example, if the event were exposition andattendance figures down, yet the exhibitors had a more successful exposition with more qualifiedleads and sales, then attendance figures would not be a good indication of the success of amarketing plan.

Check Your Progress

1) Who performs the site selection process? Why it holds crucial position in list of sponsoringorganisations activities?

..

..

..

2) Enlist types of centres. Do they vary from the perspective environment?

..

..

..

8.10 LET US SUM UP

We saw in this unit that it is very important to choose the correct site and location for a successfulconvention. It is also important to give the right environment to he attendees and the correct


11/11

61

image to the potential clients by good marketing efforts and by planning well in advance. In anutshell convention management is not about on site management but about management muchbefore and after the meeting.

8.11 CLUES TO ANSWERS1) See Sec.8.3.

2) Secs.8.6 and 8.7 deal with these aspects.

Activity

Visit convention centres in and around your locality. Prepare a list of major sponsors of theseevents.

Event Management Ignou1

Documents

Transcript of Event Management Ignou1