Unit 3
Unit 3
Structure
3.0 Objectives
3.1 Introduction
3.2 Characteristics of Events
3.3 Impact of Events
3.4 The Advantages of Events
3.5 Let us Sum Up
3.6 Keywords
3.7 References and Suggested Readings
3.8 Check Your Progress – Possible Answers
3.0 OBJECTIVES
The objective of this Unit is to highlight the key characteristics of events as an
integral aspect to the understanding of the business of events. Events have
significant social, cultural, economical and political implications that affect our
societies. Besides these, the services of the modern event industry reveal that
events are highly advantageous over press advertisements and TV commercials.
The benefits of the event experience tell us that they are memorable, provide
great opportunities for interaction and reach, and as a marketing tool, they have
great advantage over traditional media.
After completing this Unit, you will be able to:
• Identify the key characteristics of events as a service activity;
• Understand the social, economical, cultural and political impact of running
events;
• Examine how to basically balance these impacting factors; and
• Understand the advantages of the event experience.
3.1 INTRODUCTION
From our earlier Units, we could identify the key characteristics of events as
‘non-routine’, ‘unique’, ‘one-time’ and a ‘one in a life-time’ experience for the
participants. You would have also ascertained that events are generally expensive
to stage and require long and careful planning.While planning the event, the
purpose of the event, the event theme, the venue, the audience, available resources,
the timing of the event, and the skills of the team have to be considered. The
demands on an event manager are far greater than one could expect.
Some events take place only once or are held annually / biannually usually at the
same time every year. Many of them carry high level risks, including financial
risks and safety risks. There is a lot at stake. Every performer whether athlete or
entertainer wants to deliver her or his best performance.On her wedding, the
bride wants the day to be a perfect and memorable one. The marketing manager
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Introduction to Event and the design team want the new product to be taken positively by the consumer.
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Imagine a big budget product launch where there are 500 key industry players
and the media are in attendance. If it is taking place at a fancy or unusual location,
what would be the demands for logistics, lighting, sound and special effects?
These are the challenges that come up while organizing events, just to name a
few.
This also suggests that events have certain characteristics inherent in them. In
order to understand events better and to deliver a successful event, it is important
to learn about these characteristics.
It is necessary to create the event based on the kind of people who are going to be
a part of it, because an event’s success or failure is attributed to the actions and
reactions of people attending the event. The same event that was successful, if
repeated, may be a success or failure depending on the background of the audience,
their interactions and reactions. Hence a vital aspect that has to be considered by
event planners is the kind of target audience.
Just as events are regarded as unique, they are also considered tremendously
perishable. No event can be repeated the same way. The International
FilmfareAwards or Oscar Awards held every year might not be similar to the one
that was held in the previous year. Events like workshops, seminars and brand
building, though mostly organised by Event Management Companies (EMCs)
in a particular way will be different on every occasion, while being brief and
time-bound. Perishability also relates to the use of facilities for events. Let us
suppose we have a banqueting room for weddings. Its peak usage might be on
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Introduction to Event Sunday evenings for weddings, and so on the remaining days of the week, its
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revenue generating potential may not be exploited. Hence for the remaining days,
the revenue-generating potential of each day is lost forever, thus suggesting that
it is perishable. The day on which the hall is empty cannot be replayed and used
for an event, another perishable characteristic.
Events like the LIC Zee Cine Awards, the Lakme Fashion Week, Sunburn,
Mahindra Blues Festival and IIFA are popular and unique event properties. Further
events are also exploited via multiple mediums like webcasting, internet, audio
and video programmes. Hence an event manager’s role would be to ensure the
extent of facilities and services that can be used effectively for the event, because
of its uniqueness and infrequent occurrence. Because of the perishable nature of
events, events could be expensive to provide. The cost of losing an opportunity
in event management (often referred to as loss due to perishability), can be
countered by many event managers, by applying different techniques. Differential
pricing or discount days are used to draw in business in cycles or days when the
business trend is low. For example, the ‘Kingdom of Dreams’ in Gurugram,
Haryana, offers discounted rates for its entertainment shows on weekdays.
Another key characteristic is the network with the vendors / supply chain. EMCs
are the essential link between client and vendor. They have the ability to source,
negotiate and get the work done by the vendors who are various service providers.
There must be a commitment from the supply chain to offer the latest and most
efficient solutions including technology. Being able to identify the right type of
vendor for a particular requirement determines the EMC’s ability to deliver quality
work.
The staff working at most events have limited opportunity for training, hence
job breakdowns and task sheets become essential aspects of planning. This
requires high level of communication between the team members, even where
the event may be repeating a well-known formula, or operating within a common
operating framework such as a conference. A wedding reception in an open space
of 400 people will not only require catering staff, but also jockeys to conduct a
musical evening, cleaners and staff to set up and break down the set up. Hence
the importance of team structure is crucial to successful event management. A
host of skilled and unskilled staff need to be guided effectively. Staffing needs
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Introduction to Event are also likely to peak at certain times. An event manager will have to forecast
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staffing needs directly from the requirements of running the event.
Functional level responsibilities need to be addressed within the team for a specific
event. For example, a gaming event such as an athletic competition will require
a completely different staffing structure to support it (including competitions,
judges, time keepers etc) than a grand traditional wedding which would have
more of catering staff, lighting technicians etc. Besides the above, stakeholders
such as police, emergency services, the environmental protection agency as well
as local transit authority have all sorts of requirements that would challenge the
feasibility of the event and these must be investigated.
While planning an event, time requirements regarding preparation for the event-
pre and post, and wrap up etc. are decided by the magnitude and size of the
event. You will have to work out the schedule of the event because you need to
know how long an event will last, whether it will be for an hour or two, what
will happen during the event and how much time each activity in the event will
take. The criticality of right timing is to be kept in mind. Imagine a product
launch where the product is revealed while the chairman is still introducing the
product, when the schedule specifies that the product reveal must happen after
the speech. Sometimes, the fixed timescale also gets varied, particularly in events
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that have an informal setting. A birthday party,may carry on longer than intended Characteristics of Events
because ‘it just happened.’ Sometimes a formal event like a fair where there are
many stakeholders, may get extended in a planned way for some special reason,
eg. to recover the costs.
Financial Planning
Financial planning is very important for the event. It depends upon how big the
event is going to be and the number of visitors attending it. It also depends on
what it will cost to hold the event and whether it has to be profitable. Every
event differs in the way it is priced. This issue of pricing is very important as
inexperienced organizers typically underestimate the various costs. This is why
accurate and well-thought of budget should be negotiated and finalised by the
EMC with the client before the start of any activity. It is a crucial factor in
controlling costs within budget and ensuring efficient resource utilisation. There
is a tendency on the part of everyone to say “Oh well, it will cost about....”
without actually checking. When someone does get around to checking the real
amount, it comes as a shock. Every event has a level of risk associated with it.
The scope of pricing an event depends on the level of risk the event organizer is
ready to take. This helps in doing the pricing for the clients separately and pricing
the tickets for the target audience separately. Sometimes the organizers keep the
ticket price low and land the event in serious financial difficulties. The ticket
price has to be based on actual costings.
A calculation about the break-even point of the event should be included in the
budget and cash-flow statement. This can be achieved through break-even
analysis. Break-even analysis is the comparison of production and selling expenses
against the sales projections on a market-based price. This helps in finding out if
the event is worth carrying out. In case of ticketed events it depends on how
many tickets can be sold and at what price. For this, calculation of the break-
even point has to be done. For example if the ticket prices are INR 10, and the
costs are INR 600, for the event to be break-even, this means that 60 tickets have
to be sold. What if the seats at the venue are only 55 instead of 60? You will not
make profit. Hence, once the full costs of the event are known, the ticket price
can be calculated bearing in mind that enough tickets have to be sold to cover
eventualities. There could be cost risks related to quality management and
standards, cost risks related to the expense of putting on the event, and cost risks
related to the effective timing and scheduling of events. The issues related to
event pricing and risk will be dealt in detail in Course 5 on Event Financing and
Accounting.
Ambience
Ambience is that very essential characteristic that seeks to ensure whether the
event is a success or a failure. At a personal event, such as a birthday party, the
ambience may be simply created by the people who are there, without the need
for anything else - good company amongst friends can make an excellent event.
However, for many events, the right ambience is created by the desired services.
The presence of expensive venue, themed decor, gifts, foods and games might
not necessarily make an anniversary party a success. A well organised event can
lighten up the moods of guests who have had a busy day or have travelled long
distances to reach the venue.
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Introduction to Event The event manager has to employ enough creativity while blending these services.
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Careful attention has to be given to every detail and by trying to bring out the
desired outcome.
The greatest skill for the event manager is to use creativity in providing an event.
Ideation and creativity are the key strengths of the event industry today. A wedding
planner will use a colour theme to emphasize the mood or symbolism of the
event. The staging of events in a creative manner shows the event manager’s
creative skills. Events typically have a team based work environment and a project
type of organisation structure. Once the event concept is finalised with the client,
the very first step begins when the creative conceptualiser works on ‘the brief’with
the creative team. A brief is a detailed list of input and specific instructions from
the client for the event. The creative team also has to work with hard practical
realities such as the logistics, like transportation of material, travel, stay
arrangements etc and the networking aspects, namely media plan, ad designs,
ticket designs, printing etc. With these constraints the creative team tries to create
the perfect picture of the event. Indian sponsors are looking for innovations in
properties every year, with the help of creativity. Creativity as a tool is required
by advertisers, is essential for growth of revenues and retention of business.
The first edition of the Jaipur Art Summit was held in November 2013 at Hotel
Clarks, Amer and Jawahar Kala Kendra, Jaipur, in Rajasthan. The summit
showcased creative expressions across many media and formats like canvas,
visual and digital art, art installations, sculptures, interactive art, other
contemporary and folk centric expressions. The works of 150 artists were
showcased including senior renowned artists like Anjolie Ela Menon, Jatin Das
and Jai Zharotia. Features like art camp, installation art works, seminars, display
of folk traditions and art ‘haat’ (market) were different elements that gave a
creative touch to the summit.
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The ‘Wow’ factor of events is an essential characteristic, which owes the event a Characteristics of Events
memorable experience. For example, the ‘Wow’ factor can be created by using
an interplay of unusual venues, artistic expressions in decor, other creative touches
and activities that can make the event a success. Venues are also used to reveal
the message or culture of a company, like - a contemporary and futuristic building
for a new and trendy company, and a historical building for a traditional firm.
For example, the Roundhouse is an 1846 steam engine repair-shed, in North
London that was at the heart of the swinging 1960s scene with famous rock-n-
roll bands like The Rolling Stones, Jimi Hendrix and The Doors, all playing
there. In recent years, product launches, award ceremonies, the ‘X Men’ movie
premiere, video productions and Music Week Awards were held there. Clients
for events like brand promotion, annual corporate events and product launches
prefer to choose unusual venues like palaces, historical monuments and ‘havelis’
(old traditional big homes), museums, etc that raise the curiosity of audiences
and give a wonderful feel to the event.
Intext Activity 1
Observe an event that is happening in your city. Write down its major
characteristics.
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Introduction to Event
Management 3) Why is networking with the right vendors important?
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4) Why is financial planning crucial to event management?
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5) Explain the importance of creativity in events. How does the ‘Wow
factor’ help in making an event memorable?
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Political implications of events have also been huge, right from historical times.
The Roman Gladiator games in Rome were political in nature, and the ability of
the Roman Emperors to put on a major spectacle of a huge scale contributed
much to their royal status. In today’s time too, holding of global events like the
Olympics, or World Cup Cricket and Football events speak much about the
political status and superiority that the hosting country enjoys. The politicians
and ruling governments get a platform to showcase their popularity, success and
achievements during inauguration ceremonies in these events. Media coverage
on such events, which include a lot of information on the host city and country,
showcase the economic, social and cultural development there, which all goes
as political benefit to the government at work. Shrewd politicians and
governments always have an eye on large scale events that will keep the population
happy, and themselves in power. They use hallmark events to highlight their
coming into and going out of power, as these events are retained in public memory
for a long time. Such events could arouse nationalism, patriotism and are
eventually linked to the government as a positive impact. Corruption arising out
of politics can have negative impacts on an event too, example the negative
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Introduction to Event publicity that came out of media coverage of the corruption in the Commonwealth
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Games in Delhi raised many question marks on the integrity of the organizers,
and the ruling party.
The event planner holds the critical task of assessing and balancing all the above
impacting factors. Social and cultural factors, along with economic and political
issues could have positive outcomes if managed well, but could bring about
negative, and sometimes disastrous results if not managed and planned well.
Governments also need to have a long term view while planning mass events.
Though these bring huge social, cultural and economic benefits and urban
development, the governments need to assess long term political and social
impacts, while keeping costs and integrity of managing these events in mind.
However small or large scale the event maybe, one cannot ignore or overlook
the criticality of planning and analysis of all the above factors, which may impact
the long, medium or short term social and economic environment.
One of the greatest advantages offered by an event is the involvement of all the
senses while experiencing the event. When the audience participates in an event,
they get to see and do activities happening (in real time), hence the ‘feel good’
factor and ‘thrill’ sets in. Events have the greatest advantage over other media,
by boasting of instantly collecting feedback. Being a live media, it is possible to
feel and deduce the reactions of the audience to the objective that the event was
meant for.
Intext Activity 2
Attend an event or watch an event on a state or national tourism website.
Highlight those aspects of the event that provided you with the ‘feel good
factor.’ Also indicate the live communication tools used for the event
experience.
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Introduction to Event Above all events can be easily customized. This means that specific traits of the
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local inhabitants can be incorporated in the core concept and design of the event,
to ensure that the event is socially and culturally in tune with the local culture.
The advantage in terms of post-event publicity that events can offer, apart from
the media involved in the event, is the benefit associated with reports of the
event in the newspapers and news on the electronic media. For such reports
there is no extra cost to be borne – neither by the sponsor nor by the event
organizer.
We have also tried to understand the impact of events. The event manager has to
work towards generating an overall positive impact from the event. Events bring
about social, political, cultural and economic implications on a community or a
nation. The event planner holds the critical task of assessing and balancing all
the above factors. Towards the end we look at the various advantages of events.
They provide ample opportunities to ideate and create. They are effective
communication tools, provide great opportunities for interaction and reach,
provide marketing opportunities for the corporate sector, enable promotion of
arts, entertainment, enjoyment etc. The involvement of all the senses while
experiencing an event is its greatest advantage. Events can be easily customised
and there are no extra costs for post-event publicity.
3.6 KEYWORDS
Uniqueness : No two events are the same and differ from each
other because every event offers a different
experience to the audience. Hence it is unique.
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Perishability : However similar the events may be, they don’t Characteristics of Events
get repeated the same way. This refers to the
perishability of events.Perishability also relates
to the use of facilities for events. There are peak
times of events such as awedding happening in
a banqueting hall on Saturdays and Sundays
only. The day on which the hall is empty cannot
be replayed. Hence it is perishable.
Pulsing Organisation : The event manager is supported by a team that
sometimes grows enormously as the event draws
closer. This phenomenon has been described as
‘pulsing organisation’ by A. Toffler.
Vendor : Vendor is the supplier who provides service to
the EMC such as catering, decoration,
technology requirements etc.
Break-even point : The point at which an event’s costs equal the
revenue received for it.
Break-even analysis : It is the comparison of production and selling
expenses against the sales projections on a
market-based price.
Ideation : Ideation refers to all the processes involved in
taking an idea from its critical ‘conception
through to its realisation. The novel ideas and
concepts give a distinct appeal to the event.
Wow Factor : A memorable event gives it the ‘wow factor.’
This factor is created for an event by using an
interplay of unusual venues, artistic decor, ideas,
innovation, activities and other creative aspects
that can make the event a success.
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Introduction to Event McDonnel, I., Allen, J. and O’ Toole, W. (1999). Festival and Special Event
Management
Management. Brisbane: John Wiley & Sons.
Reic, Ivna (2017). Events Marketing Management: A Consumer Perspective.
Oxon: Routledge.
Robinson, P., Wale, D., and Dickinson, G. (2010). Events Management. UK:
CABI.
Shone, A. and Parry, B. (2013). Successful Event Management: A practical
handbook. 4th edn. Andover: Cengage Learning, EMEA.
Silvers, Julia R. (2004). Professional Event Coordination. New Jersey: John
Wiley & Sons.
Singh, Sita Ram (2009). Event Management. New Delhi: A P H Publishing
Corporation.
Toffler, Alvin (1970). Future Shock. New York: Random House.
Wagen, Lynn Van Der and Carlos, Brenda R. (2005). Event Management: For
Tourism, Cultural, Business, and Sporting Events. New Delhi: Pearson Prentice
Hall.
• Events however similar they may be are not repeated the same way.
The workshops, seminars or exhibitions organised by the same EMC
in a particular way will differ on every occasion. Perishability also
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relates to the use of facilities for events. For eg: the revenue generating Characteristics of Events
potential of a banqueting hall for weddings is lost on each day of the
week as it has its peak usage on Sunday evenings. The day on which
the hall is empty cannot be replayed. Hence it is perishable. The losses
incurred due to perishability can be overcome by differential pricing or
discount days.
3) Event management companies (EMC) are the essential link between client
and vendor / the supply chain. An EMC should have the ability to source,
negotiate and get the work done by the right vendors who are various service
providers such as catering, flower decoration, etc., to deliver quality work.
There must also be a commitment from the supply chain to offer the latest
and most efficient solutions including technology.
4) Financial planning is one of the most crucial factors for successful event
management. This is because there are certain risks involved such as if the
ticket prices are low, the event can land in serious financial difficulties.
Similarly, there could be cost risks related to quality management and
standards, cost risks related to the expense of putting on the event, and cost
risks related to the effective timing and scheduling of events. Financial
planning depends on how big the event will be, number of visitors, the
costs to hold an event and how profitable the event will be. Pricing has to be
done for clients separately and for the tickets of the target audience separately.
The ticket price has to be based on actual costings. Break-even analysis
should be done to include break-even point in the budget and cash flow
statement.
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Introduction to Event 2) Economic impacts are created by a large number of people attending the
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event, promotion of tourism and more business for the local community as
in the case of the Commonwealth Games. There are indirect effects on local
business, services and infrastructure. Events also become catalysts and
marketing tools for attracting visitors and tourists, while creating a profile
for destinations. Besides income from tourists, merchandise and related items
within the event get sold. Local restaurants, hotels and shops benefit a lot.
Transports, services, vendors, photographers, videographers, contractors and
other types of suppliers also see huge gains in their business.
3) Since early times and even today, events have generated political benefits.
Events like the World Cup Football, Commonwealth Games and the
Olympics speak about the political status and superiority enjoyed by the
host country. The politicians and ruling governments showcase their
popularity and achievements during inaugural ceremonies. This is enhanced
by media coverage. Hallmark events highlight coming and going of power
of the governments, besides evoking a feeling of nationalism and generating
positive impact.
• They provide great opportunities for interaction and reach and are
beneficial to sponsors, and opening up new marketing horizons for the
corporate sector. Talent shows and award functions enable the promotion
of arts, entertainment and enjoyment. Events that are used for image-
building, to support tourism, or improve the environment have a positive
outcome.
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