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Corporate Hospitality and Events
Corporate Hospitality
Opportunities whereby the company can make
face-to-face contact with selected publics in
a prestigious context
thereby strengthening and personalising
relationships
with decision-makers, trade channels and
business associates
Meenaghan, T (1983)
Creating goodwill in an informal context
Pelsmacker (2000)
A key tool in maximising the potential of
sponsorship
Increasingly important as the cost of customer
acquisition has soared
A vital role in developing..customer and
employee relations
(Kolah 2004)
The changing role (Mintel 2002)
• Integrated more closely with company
communications strategies
• Part of Customer Relationship Management
– to establish and maintain individualised
relationships..to encourage loyalty and retention
– in conjunction with regular personal
communication in other formats
Company Objectives
16%
27%
Sales
Marketing
Communications
Event
Relationships
and rewards
Networking
& intelligence
12%
82%
Derived from NOP/Sodexho 2000
‘The future is measured’
• Subject to the usual disciplines of marketing
– targeting, measurement and justification
• informal impressionistic evaluation of relationships
• only 49% measured increased sales
• only 24% used MR or evaluation forms
• Match clients to events
– smaller numbers, more personal attention
• Centralised purchasing
– better service and prices
Segmentation and growth
£m
£350
£300
£250
Spectator sports
Cultural events
Participatory activities
Others
£200
£150
£100
£50
£0
1997
2001
Participatory events
team building, sports, simulations etc
40% growth, 27% market share
• a change from Ascot or Wimbledon
• more places available and cheaper
– from £35 a head compared to £2,000
– less exclusive, wider market
• customised, proactive, evolving
• from hospitality to experience
All our incentives are custom-made. At the race you
and your guests stay at the same hotels as the drivers or
relax aboard a luxury yacht..GP Incentives offer
exclusive access to the pits and paddock. Instead of
being a visitor, you become part of the Formula 1
circus!
The supply side
Venues
Caterers
Event
organisers
Brokers/
agents
Activity
operators
Suppliers
Corporate Events Association
Companies:
Pharmaceuticals
IT & telecoms
Financial
City Law firms
Trends
• ‘Disappointment, mistrust and bad feelings
from use of unscrupulous suppliers’ CHEA
• Vertical integration
– Sodexho, Compass
• Economic environment uncertainty
• Diversification of events and target sectors
• Poor public perception
The ethics of corporate hospitality
• ‘far less serious than actual bribery but
arguably on the same continuum’ Fill (1999 p 63)
• Corruption..to include hospitality that could
be shown to have led to the award of a
contract. Law Commission report 1998
• In contrast entertaining ..to pass on
information, talk business or cement
relationships is legitimate
• Meenaghan T (1983) Commercial Sponsorship European Journal of
Marketing 7, 2-73
• Fill, C (1999) Marketing Communications Prentice Hall
• Mintel (2002) Corporate Hospitality and Events
• Corporate Hospitality and Events Association website
• De Pelsmacker et al (2000) Marketing Communications
• Kolah, A (2004) Maximising the value of hospitality Sportbusiness