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. © 2006, Educational Institute 1 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 © 2006, Educational Institute 2 Nonprofit Organizations • • • • • • • • • 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 © 2006, Educational Institute 3 Nonprofit Organizations— Sales Tactics • Start with local chapters • Expect short lead times (1 to 2 years) • Assure planners of hotel’s assistance • Point out economic benefits to community of holding national meetings locally • Expect to deal with professional planners at the national level of nonprofit organizations © 2006, Educational Institute 4 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 © 2006, Educational Institute 5 SMERF Groups • • • • Price Conscious Good numbers Fill soft spots People like to join social groups © 2006, Educational Institute 6 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 © 2006, Educational Institute 7 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 © 2006, Educational Institute (continued) 8 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 © 2006, Educational Institute 9 Military & Other Reunions • Flexible weekend business • Military • Sept/Oct. • Annual, biennially • Banquet, Service, Meeting • Price conscious • Share rooms © 2006, Educational Institute • Class & Family • Recreational amenities • F&B, no meetings • Pay own way • Double occupancy 10 Educational • • • • • • • © 2006, Educational Institute Broad & Diverse Fill summer slow periods Teacher associations Continuing education Accessibility & Value Short Extremely price sensitive 11 Educational Groups Characteristics • Fill rooms in summer months • Local, regional, and national meetings • Short in length • Accessibility and value considered important © 2006, Educational Institute (continued) 12 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 © 2006, Educational Institute 13 Religious • • • • • • • • Small & Large Summer months Family oriented locations Pay own way Price sensitive Double occupancy Community Service projects Example: Promise Keepers © 2006, Educational Institute 14 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 © 2006, Educational Institute 15 Fraternal • The Greeks • Multiple occupancy • General membership, retreats, institutes, board or council meetings • Professional honorary societies © 2006, Educational Institute • • • • • Service Groups Elks, American Legion Holiday parties Fund raising Annuals 16 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 © 2006, Educational Institute 17 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) © 2006, Educational Institute (continued) 18 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 © 2006, Educational Institute 19 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 © 2006, Educational Institute 20 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 © 2006, Educational Institute (continued) 21 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 © 2006, Educational Institute 22 Other • These are part of corporate and association market…….but deserve attention • Incentive • Insurance • Medical © 2006, Educational Institute 23 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 © 2006, Educational Institute (continued) 24 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 © 2006, Educational Institute 25 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) © 2006, Educational Institute 26 Medical Meetings Characteristics • Market growing rapidly • Usually 200 attendees or fewer • Great potential for repeat business • Held during peak periods for hotels © 2006, Educational Institute (continued) 27 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 © 2006, Educational Institute 28