Transcript Document

Chapter 6
Selling Other Markets
Convention Management and Service
Seventh Edition
(478CSB)
© 2006, Educational Institute
Competencies for
Selling Other Markets
1. Describe the nonprofit organizations market, and
explain how to sell meeting services and products to it.
2. Identify SMERF organizations and explain how to sell
meeting services and products to them.
3. Summarize sales considerations for selling meeting
services and products to the following markets:
government agencies, labor unions, incentive
meetings, insurance meetings, and medical meetings.
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Nonprofit Organizations—
Structures & Leads
Structures of Nonprofit Organizations
• Structured like associations
• Have members
• Formed for a common purpose
Lead Sources
• Directories: see the Guide to American
Directories
• HSMAI's Affordable Meetings
Exposition and Conference
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Nonprofit Organizations
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Many exist through fundraising
Similar to trade associations
Central source difficult to find
Solicit local chapters of national groups
Permanent staff, volunteer, board of directors
Shorter lead time
Offer to assist local chapter
Economic community benefit
National organization has experienced meeting
planners
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Nonprofit Organizations—
Sales Tactics
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Start with local chapters
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Expect short lead times (1 to 2 years)
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Assure planners of hotel’s assistance
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Point out economic benefits to community of
holding national meetings locally
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Expect to deal with professional planners at the
national level of nonprofit organizations
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Characteristics of SMERF Groups
SMERF stands for
• Social groups
• Military and other reunions
• Educational groups
• Religious groups
• Fraternal groups
SMERF Groups
• Nonprofit groups
• Tend to be price conscious
• Good source of business for slow months
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SMERF Groups
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Price Conscious
Good numbers
Fill soft spots
People like to join social
groups
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Social Groups
Characteristics
• Local, regional, and national in scope
• Wide variety of interests and purposes
• Hold both large and small meetings
• Examples: chess clubs, ethnic groups,
bowling leagues
Lead Sources
• Yellow pages of phone book: Clubs; Social,
Political, and Athletic Organizations
• Property’s employees
• Property’s suppliers
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Military and Other Reunions
Characteristics
• Rapidly growing market
• Planners becoming increasingly knowledgeable
Military Reunions
• Combine reunions with vacations
• Price conscious/double occupancy
• Meet in September or October and on weekends
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Military and Other Reunions
(continued)
Family and Class Reunions
• Recreational amenities very important
• Often hosted by nonprofessional planners
• Need less meeting space than other markets
Lead Sources
• THE Reunion Network: TRN News
• Reunions, The Magazine
• Military Reunion News
• The Military Reunion Handbook: A Guide for
Reunion Planners
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Military & Other Reunions
• Flexible weekend business
• Military
• Sept/Oct.
• Annual, biennially
• Banquet, Service,
Meeting
• Price conscious
• Share rooms
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• Class & Family
• Recreational amenities
• F&B, no meetings
• Pay own way
• Double occupancy
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Educational
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Broad & Diverse
Fill summer slow periods
Teacher associations
Continuing education
Accessibility & Value
Short
Extremely price sensitive
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Educational Groups
Characteristics
• Fill rooms in summer months
• Local, regional, and national meetings
• Short in length
• Accessibility and value considered important
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(continued)
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Educational Groups
(continued)
Lead Sources
• Educational Associations and
Directories (pamphlet)
• National Directory of College Athletics
• Local board of education
• Alumni offices and divisions of
continuing education at universities
• Administrative offices of schools
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Religious
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Small & Large
Summer months
Family oriented locations
Pay own way
Price sensitive
Double occupancy
Community Service projects
Example: Promise Keepers
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Religious Groups
Characteristics
• Local, regional, and national meetings
• Tend to choose family-oriented sites
• Price conscious/double occupancy
• Meetings last from 3 days to 2 weeks
• Often meet in summer months
Lead Sources
• Religious Conference Management
Association (RCMA): Highlights
• Yellow pages: Churches; Religious
Organizations; Synagogues; Mosques
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Fraternal
• The Greeks
• Multiple occupancy
• General membership,
retreats, institutes, board
or council meetings
• Professional honorary
societies
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Service Groups
Elks, American Legion
Holiday parties
Fund raising
Annuals
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Fraternal Groups
(continued)
Lead Sources
• Fraternity Executives Association
• National Panhellenic Conference
• National Interfraternity Council
• Alumni associations, Student Activities
divisions at schools
• Yellow pages: Fraternal Organizations;
Fraternities & Sororities
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Government Agencies
Characteristics
• Per diem allowances; price conscious
• Mostly training meetings
• Slow to pay bills
• Short lead time
• Request for Proposal (RFP)
• Invitation for Bids (IFB)
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Government Agencies
(continued)
Lead Sources
• Phone book: Blue pages or other special pages
• Society of Government Meeting Professionals
(SGMP)
• Society of Travel Agents in Government (STAG)
• Commerce Business Daily
• List property in Official Airline Guide—
Government Edition
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Labor Unions
• 150 in U.S.
• Regular, repeat business
• National Conventions
• East/west, spouses, social programs, F&B, high
dollars, every two years
• Regional Conferences
• Central locations, 200-500, 2-3 days
• Executive & Committee meetings
• Many a year, small, headquarters city
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Labor Unions
Characteristics
• Usually hold meetings only at unionized properties
National Conventions
• Held every 2 years; alternate between East and West
• High spouse attendance, high expenditures
• Need lots of meeting space, sophisticated AV
equipment
Regional Conferences
• Held annually near center of region; last 2 to 3 days
• Attendance: 200 to 500
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Labor Unions
(continued)
Executive and Committee Meetings
• Up to 4 meetings per year; last 2 to 3 days
• Held in union’s headquarters city
• Hosts of these are considered for larger meetings
Lead Sources
• National conventions: general secretary of union
• Executive and committee meetings: secretarytreasurer
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Other
• These are part of corporate and association
market…….but deserve attention
• Incentive
• Insurance
• Medical
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Incentive Meetings
Characteristics
• Offered as reward to motivate employees
• Recreation is key value
• Most programs mix business and pleasure
• High spouse attendance, high expenditures
• Key industries: automobile parts and
accessories, electronics, and insurance
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Incentive Meetings
(continued)
Incentive Travel Houses
• Represent several different companies
• Can provide repeat business
Lead Sources
• Society of Incentive Travel Executives
(SITE): annual directory, trade show
• International trade shows
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Insurance Meetings
Characteristics
• Spend more on meetings than any other industry
• High expenditures; not very price conscious
• Most programs mix business and recreation
• Spouses often attend the largest meetings
Lead Sources
• Start with the insurance company’s home office
• Meeting Professionals International (MPI)
• Insurance Conference Planners Association (ICPA)
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Medical Meetings
Characteristics
• Market growing rapidly
• Usually 200 attendees or fewer
• Great potential for repeat business
• Held during peak periods for hotels
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Medical Meetings
(continued)
Reasons for Rapid Growth
• Changing technology and reform in health care
• New treatments and cures developed
• Continuing education requirements
• New medical areas emerging
• Globalization
Lead Sources
• Professional Convention Management
Association (PCMA)
• Medical periodicals and journals
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