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Wood 2009

This article discusses evaluating the effectiveness of experiential marketing techniques such as events. It reviews literature on event and experiential marketing as well as existing evaluation methods. Interviews with event marketing providers found that current methods do not comprehensively or reliably measure the intangible experience of events. The article develops a framework to guide future academic and industry research on measuring experiential marketing event effectiveness.

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0% found this document useful (0 votes)
52 views23 pages

Wood 2009

This article discusses evaluating the effectiveness of experiential marketing techniques such as events. It reviews literature on event and experiential marketing as well as existing evaluation methods. Interviews with event marketing providers found that current methods do not comprehensively or reliably measure the intangible experience of events. The article develops a framework to guide future academic and industry research on measuring experiential marketing event effectiveness.

Uploaded by

Afaf Saddok
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Evaluating Event Marketing: Experience


or Outcome?
a
Emma H. Wood
a
Leeds Metropolitan University, Leeds, England
Published online: 29 May 2009.

To cite this article: Emma H. Wood (2009): Evaluating Event Marketing: Experience or Outcome?,
Journal of Promotion Management, 15:1-2, 247-268

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Journal of Promotion Management, 15:247–268, 2009
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ISSN: 1049-6491 print / 1540-7594 online
DOI: 10.1080/10496490902892580

Evaluating Event Marketing:


Experience or Outcome?

EMMA H. WOOD
Leeds Metropolitan University, Leeds, England

The research presents a critical evaluation of the current methods


used to measure the effectiveness of experiential marketing tech-
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niques. The article begins by reviewing the literature relating to


event and experiential marketing and existing appropriate eval-
uation techniques. Secondary research is then used to highlight
specific tools and methods currently being used in the experiential
marketing industry. This secondary research is explored further
through interviews with four experienced providers of marketing
events. The findings indicate that current methods do not appear
to be comprehensive or reliable due largely to the intangibility of
the event experience. Based on these findings a framework is de-
veloped to guide future research, both academic and practitioner,
into measuring the effectiveness of experiential marketing events.

KEYWORDS evaluation, event marketing, experiential market-


ing, integrated marketing communications (IMC), measurement,
Return on Investment (ROI)

INTRODUCTION

Although there is very little existing research in the specific area of “event
marketing” (Gupta, 2003; Sneath, Finney, & Close, 2005; Krantz, 2006), work
undertaken in other fields can be used to develop the unique concepts and
models needed within this growing area of marketing communications. The
areas of academic research within marketing which have the most affinity

An earlier version of this study was presented in collaboration with Guy Masterman of
Northumbria University as a paper at the 7th International Marketing Trends Congress, January
17-19, 2008, in Venice, Italy.
Address correspondence to Emma H. Wood, Ph.D., UK Centre for Events Manage-
ment, Leeds Metropolitan University, Calverley Street, Leeds LS1 3HE, England. E-mail:
[email protected]

247
248 E. H. Wood

with event marketing are lifestyle marketing, experiential marketing, rela-


tionship marketing, public relations, and marketing communications. Indeed,
Schreiber and Lenson, in their 1994 practitioner-focused text on lifestyle and
event marketing, took up the development of event marketing. Unfortu-
nately, this did not appear to spark others to undertake research and author-
ship in the area. McCole (2004) recognizes this dearth of academic research
in the areas of experiential and event marketing as an indication of the divide
between academia and business and calls for marketing theory in these areas
to be more closely aligned with practice. Similarly, Gupta identifies a “lack
of a systematised body of knowledge and conceptual framework on which
to base scientific inquiry” (p. 94) as a major event marketing challenge.
Even in the sectors which naturally lend themselves to event marketing
practice there has been little evidence of research in the academic literature.
For example Williams (2006) makes a case for more event marketing research
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to lead practice within tourism and hospitality marketing, and Petkus (2004)
argues for a greater understanding of the relationship between events and
experience in marketing the arts. Event marketing has been more widely
utilized and researched within Germany over the last ten years, particu-
larly within the areas of sports marketing and sponsorship, but not within
academia in the United Kingdom and United States despite event marketing’s
growing importance as a communication tool (Wohlfeil, 2005).
Experiential marketing events can be defined in a number of ways.
Although Kotler’s (2003) definition, “occurrences designed to communicate
particular messages to target audiences” (p. 576), is, perhaps, overly broad,
it does encapsulate the communications potential of events. Other possible
definitions are:

• Any event that helps market a product/service, idea, place or person.


• Any event that communicates with a target audience.
• Any event which has the potential to communicate.

As these demonstrate, in defining a marketing event, it becomes clear


that, in fact, all events can be seen as (or more importantly used as) “market-
ing” events. An event is a live “occurrence” with an audience. If an audience
exists, then a message or experience is being shared, transmitted, generated
and, therefore, all events can potentially communicate something. However,
to be able to usefully develop event marketing theory, it is necessary to limit
the type of events to those that are created primarily for marketing purposes.
This therefore, excludes events that exist for some other purpose but are used
later for marketing (i.e., sponsorship of pre-developed events) or events that
may have some marketing application but are primarily developed for other
reasons (e.g., community festivals). The well-known experiential marketing
agency, Jack Morton Worldwide (2006), provide a useful working definition
of marketing events. “Live events where audiences interact with a product
Evaluating Event Marketing 249

TABLE 1 Examples of Marketing Events

Incentive/reward events Product launches Open days


Events offered as a bonus forCreating an “occasion” Inviting employees,
achievements for internal around the development or customers, partner, local
staff, sales force, improvement of a product. community to activities
distributors, etc. Aimed at the media, hosted within the
distribution chain or organization (e.g., Family
consumer fun days, factory tours).
Conferences Product sampling Publicity events
Conferences, meetings and Creating the opportunity to Designed to gain maximum
seminars can all be used as try or experience a product media exposure often
marketing communication or service. Often combined through unusual or
vehicles. with product launch. controversial activities
linked to the product or
brand.
“Created” events Road shows Press conferences
Developing an event often as Mobile events which spread Inviting the press to hear
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a product in its own right to the brand message to about some important or
carry the brand values different locations. newsworthy development
(e.g., Guinness’ Witnness related to the company,
Festival in Ireland and product, brand, industry
Coca-Cola’s “Street Cred etc.
Games” in Scotland).
Corporate entertainment Exhibitions Product visitor attractions
Using events to entertain, Ranging from trade shows “Permanent” events
reward clients and hosting a number of developing involvement
partners. Ranging from golf organizations to art with the brand and often
days to theatre, safaris to exhibitions related to a marketed as a product in
paintballing. specific brand (e.g., Nike’s their own right (e.g.,
One Love photography Dewar’s World of Whisky;
exhibition linked to football Cadbury World; the
sponsorship). Guinness Experience).
Charity fundraisers Competitions/contests
Linking event marketing and An event created around
corporate social some form of contest and
responsibility. linked to the brand (e.g.,
Red Bull’s flying machines).

or brand face to face.” Examples of typical experiential marketing events


covered by this definition are given in Table 1.
Experiential events can generate short-term impact but also build
longer term changes in attitude and belief (Sneath et al., 2005); therefore,
as with any aspect of strategy, it is necessary to measure and evaluate the
effectiveness of this communications method (Chattopadhyay & Laborie,
2005). It would seem logical that the evaluation cycle begins with clearly
stated objectives developed from an understanding of what can be achieved,
followed by unbiased and reliable methods for measuring against these
objectives. The resulting measures are then evaluated and compared with
past performance and the performance of other marketing tools, and this
evaluation is used to determine future action and improvement in the
250 E. H. Wood

development of marketing events. This process gives the opportunity to


adjust plans, learn from experience, develop and improve the event format,
and to justify budgets. However, the measurement of the outcomes of
experiential events is rarely that simple. Their effectiveness is related to
individual emotional response, to the influence of other communications,
both marketing driven and in a wider social context, and to the previous
experience and expectations of each individual participant or spectator.
This article reviews a range of literature and research relating to expe-
riential marketing and its measurement and attempts to identify if, and how,
this research can be applied to experiential event marketing. Literature in
the areas of consumer behavior and experience, marketing communications
measurement, and other related fields is discussed and evaluated alongside
a practitioner perspective gained from interviewing those with experience in
the field. The objective of the paper is to use this understanding drawn from
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a number of related fields and exploratory primary research to develop an


initial framework to guide empirical research in this area.

EXPERIENTIAL MARKETING AND EVENT MARKETING

Experience, as defined within the realms of management, involves a per-


sonal occurrence with emotional significance created by an interaction with
product or brand related stimuli (Holbrook & Hirschman, 1981). For this to
become experiential marketing the result must be “something extremely sig-
nificant and unforgettable for the consumer immersed into the experience”
(Caru & Cova, 2003, p. 273). It follows that any old experience will not
achieve marketing objectives and that the greatest effect is gained through
peak experiences. These occur when a “flow state” is reached in that the
consumer is completely immersed in the experience. In order to achieve
this, the event needs to provide a high level of challenge and ensure that
this is met with an appropriate level of skill or experience in the consumer
(Csikszentmihalyi, 1997; Arnould, Price, & Zinkhan, 2004). The event mar-
keter has to create an event which provides the right level of challenge or
stimulation to the skill set of the target audience. Different consumers will,
therefore, experience the event differently. Some may be bored, others wor-
ried, others aroused, for example. Consider a test drive of a newly launched
saloon car around a race track. Depending on the abilities, knowledge, and
past experiences of the target audience, this could be seen as overly chal-
lenging and therefore uncomfortable or frightening or, for someone else,
exciting, stimulating, and novel.
As every experience has to be extraordinary to have an effect in event
marketing, the event must strive to create a “flowstate experience” for
the majority attending. This may involve surprise, novelty or challenge.
The author’s previous research (Wood & Masterman, 2007) into successful
Evaluating Event Marketing 251

marketing events identifies seven event attributes (the 7 “I”s) which enhance
the event experience:

• Involvement—an emotional involvement with the brand, the event, the


experience
• Interaction—with brand ambassadors, with other attendees, with exhibits,
with the brand
• Immersion—of all senses, isolated from other messages
• Intensity—memorable, high impact
• Individuality—unique, one-to-one opportunities, customization. Each ex-
perience is different
• Innovation—creative in content, location, timing, audience, for example
• Integrity—seen as genuine and authentic and providing real benefits and
value to the consumer
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Caru and Cova (2003) suggest that marketers need to recognize the dif-
ference between “consumer experience” and “consumption experiences”, as
well as, between those that are ordinary and commonplace and those that
are extraordinary and result in changes in learning, attitude, or behavior. Ex-
periential events can be both consumer and consumption experiences and
are far more likely to be effective in reaching communication goals if they
involve some “extraordinary” aspect for the majority of the audience. These
experience characteristics (Caru & Cova’s conceptualisation of experience,
Csikszentmihalyi’s [1997] experience typology, and Wood & Masterman’s
[2007] 7 “I”s—see Table 2) may serve as a useful guide for evaluating the
effectiveness of an event through developing measurements relating to level
of challenge, newness, surprise, match with the audience’s prior experi-
ence, skill level, for example. However, the usefulness of measuring these
attributes of the event depends upon the assumption that an event that is
strong in those attributes will effectively create a memorable and potentially
behavior changing experience.

TABLE 2 Experiential Marketing to Experiential Events

Experience → → Consumer experience Experiential events

Csikszentmihalyi Caru and Cova Wood and Masterman


A typology of experience Recognizes the breadth of Experience characteristics
sensations related to level experience from everyday that make an event into an
of skill and level of to unusual in both effective marketing tool
challenge commercial and
non-commercial contexts.
Apathy; boredom; anxiety; Consumption vs. consumer Involvement; interaction;
worry; arousal; relaxation; experience immersion; intensity;
control; flow Ordinary vs. extraordinary individuality; innovation;
experience integrity
252 E. H. Wood

The Growth of Experiential Event Marketing


Schmitt (1999) ascertains that experiential marketing has arisen as a response
to today’s “prosumers” who seek marketing that is relevant to them as an
individual and which respects and recognizes their need for novelty and
excitement. However, the consumer’s desire for stimulating experiences is
not new, only the recognition by marketers that this desire can be success-
fully exploited through more sophisticated experiential marketing techniques
(Holbrook, 2000).
Experiential events group people according to their values, enjoyment,
personality type, and (loose) social group. This can create groups with quite
diverse traditional segmentation characteristics. Once the brand resonates
with this value-set the link between individual and brand becomes emo-
tional rather than merely functional, and the customer is, therefore, far more
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likely to be loyal (McCole, 2004). Indeed the event becomes an end in it-
self through hedonic participation of the target audience in the marketing
communications of the organization/brand. Experiential consumption can
be primarily hedonic (pleasure seeking, consumption as an end in itself)
or instrumental (rational, problem solving, need driven) or a combination
of the two (Lofman, 1991). Although this theory relates to consumption of
the product it also applies to consumption of the marketing communication.
Pleasure is gained from viewing the ad, surfing the website, or attending the
event. In this way the marketing event becomes a product in its own right
rather than merely a promotional tool. For example, consider the consump-
tion experience of attending a Land Rover country pursuits day; visiting the
Ideal Home Show or taking the children to one of Persil’s “dirt is good”
fun days. Many successful large scale music festivals, originally created as
promotional vehicles, are also testament to this (Guinness’ Witnness Festival
and Tennent’s “T” in the Park).
The growth of experiential marketing events appears to be due to a
number of factors. Firstly, the overuse of traditional media and therefore the
need to do something different from competitors; secondly, the consumer’s
desire for novelty, individualism and added value; and thirdly, the need to
build an emotional attachment to brands that are largely functionally un-
differentiated. This growth is further fuelled by the proliferation of event
marketing specialist agencies growing out of a number of related areas such
as field marketing, event planning, brand management, public relations, and
advertising. The agencies’ belief in the effectiveness of event marketing and
their ability to produce ever more creative, unique, and highly tailored events
has led many large organizations to switch marketing expenditure to this
method. Published survey results, such as the Jack Morton (2006) marketing
agency’s online survey of 1,625 respondents in the United States, United
Kingdom, Australia, and China, stimulate further growth. The headlines from
this survey were that live marketing events are one of the most effective
Evaluating Event Marketing 253

methods for influencing behavior (Latham, 2006). However, very little objec-
tive and reliable research has been undertaken to ascertain the effectiveness
of marketing events.

Events, Marketing Communication, and Measurement


Vital to understanding the effectiveness of experiential marketing events is
a recognition of the variety of communication effects that can be achieved.
In understanding these effects it is possible to develop better evaluation
measures which can be linked directly to the experiential marketing activity.
Experiential events have a variety of components and are further enhanced
by their integration with other communication tools. All of these aspects
need to be taken into account if their “success” is to be credibly evaluated.
It is unlikely, therefore, that measures of footfall, attendance, media cover-
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age, and attendee satisfaction questionnaires will suffice. What need to be


measured are the communication effects and the measures developed based
upon the communication objectives of the event.
Marketing events have the potential to create an extraordinary expe-
rience for the consumer, use this experience to develop relationships with
customers, link the brand to good causes, and build, change, reinforce brand
image through association with the qualities of the event. The objectives of
marketing events can, therefore, incorporate a wide variety of communica-
tion effects. These range from building awareness and liking to purchase,
loyalty, and partnership. Specific objectives can range from facilitating a
relaxed and informal twenty minute chat with the CEO of a major client
organization, to building brand awareness among 20,000 consumers, to re-
ceiving exposure in the international media, and all these potentially from
one event. The multi-purpose nature of marketing events and the possible
variety within them (size, location, timing, and content) leads to a number
of questions yet to be answered. Can the communication effects of such
events be measured in any meaningful way? Can measures be standardized
across all types of event? Can the effects be isolated from the other influ-
ences both within the planned campaign and outside of it? Should they be
isolated? These illustrate the complexity of the task in hand but are not jus-
tifications for avoiding meaningful measurement of experiential marketing
event effects.
Integrated marketing communication theory suggests that measurement
of any one component is meaningless as the effect of integrating a variety of
marketing communication tools is synergistic and it is therefore impossible,
or at least very difficult, to separate this into individual effects (Pickton
& Broderick, 2001). However, as organizations are increasingly switching
a large proportion of their marketing budget from advertising and other
traditional methods to experiential events (EventView, 2006), the need for
some measure to show a return on that investment is needed. It is, therefore,
254 E. H. Wood

necessary to attempt to develop credible, objective, and reliable methods


for delivering this—but at the same time recognizing and accepting their
inevitable limitations and shortcomings.

Potential Measurement Tools


ECONOMETRIC ANALYSIS
Econometric analysis may offer insights into the causes of change in out-
comes through quantitative modelling. Used in the advertising research in-
dustry for over twenty years, econometric analysis relates movements in
sales, awareness, and image perception, for example, to changes in the level
of causal factors. What results is a model which explains changes in “sales”
to the factors that have been identified as likely to change levels of sales.
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However, this is not simply a matter of looking at changes in ad spend and


sponsorship investment, for example. It also requires an understanding and
incorporation of the duration of media effects, the type/form of message,
seasonal factors, competitor activity, and synergy within multi-media cam-
paigns. To do this accurately and consistently, collected data is required over
a historic period (several years and for sales plus all causal variables). The
fit of the model is often a trade-off between the number of causal factors
included and predictive power.
Using econometrics to measure the payback of experiential events re-
quires planning the overall integrated marketing campaign in such a way so
as to allow econometric modelling to assess the differences depending on
the combination of media used. However, the results can be more reliable
if used to measure the total IMC effect and the effects of primary media
only (Cook, 2004). It may therefore be useful for evaluating experiential
events only when this equates to a relatively large proportion of the over-
all campaign emphasis or for comparing the outcomes (sales) of campaigns
with or without experiential events, if this is a relatively new communication
medium.
A further issue is the measure to be used for dependent and indepen-
dent variables. What, for example would be the measure for the “experiential
event” variable? It could be cost, duration, attendance, media coverage, and
number of events, for example. Whatever is deemed to be the most ap-
propriate, it is vital that data is gathered on the variable, consistently and
accurately, over a number of campaigns in order to provide usable historical
data on which to base the analysis.
In order to successfully use econometric analysis, Cook (2004) suggests
that it is necessary to:

– Archive all historic data (external, internal and anecdotal);


– Seek to improve the accuracy and coverage of data sources;
Evaluating Event Marketing 255

– Modify the media schedule where possible to facilitate component


evaluation;
– Specify clearly what the expected outcomes are;
– Use wider research data and tracking studies, for example; and
– Categorize factors into those that “must” be measured and those that it
would be “nice” to measure.

Whether econometric analysis or some other technique is being used,


the previously described advice holds true. An understanding of the effects
of experiential events is reliant on the interpretation and analysis of past data
covering outcomes related to objectives and recognizing the wide ranging
causal factors which also influence outcome.
Although econometric analysis can provide useful statistical models to
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help predict how changes in marketing media will affect results (sales,
etc.) the technique is of less use in describing and explaining consumer
behaviour prior to and after the sale. The “woollier” aspects of aware-
ness, attitude, perception, and motivation are often key elements in the
objectives for experiential events. Evaluating these will still require longi-
tudinal data tracking changes over time, or at least before and after each
event, but the data is less likely to be gathered through internal trans-
action systems or in a consistent numerical format. Use of interviews, fo-
cus groups, consumer panels, surveys, and control groups can obtain data
which can be used to enhance and better understand simple numerical
results.
A further factor to consider is whether to focus the research on the event
attendee or on the wider “audience” who may or may not be aware of the
event through related media coverage. In this area, much can be learned
from sponsorship evaluation which has progressed in the last ten years from
a fairly simple comparison of media coverage (equivalent media cost) to
a focus on direct sales effect, pre and post event surveys, and comparisons
with results in areas and times of no sponsorship with those after sponsorship
campaigns (Lainson, 1997).

TOOLS USED IN SPONSORSHIP MEASUREMENT


In advertising, and more recently in sponsorship, awareness has been used
as a surrogate measure for effectiveness, although these two constructs do
not always have a close relationship (Tripodi, Hirons, Bednall, & Sutherland,
2003). Awareness measurement is a less useful tool for experiential events as
attendees will undoubtedly be aware of the brand. Awareness measurement
can be applied to the wider non-attending audience to measure awareness
of the event and/or awareness of the brand message communicated through
the event.
256 E. H. Wood

A complex relationship often exists between audience, brand, and event.


Close, Finney, Lacey, and Sneath’s (2006) research shows that the event
attendee’s knowledge of the sponsor’s products and their perceived level of
community involvement is linked to positive brand opinion and to purchase
intention, and that this link was moderated by the attendee’s enthusiasm and
activeness in the event itself (sport, arts, fun days, etc.). The connection is
made with the brand and with the brand’s support for the community and
sport arts, for example.
Sneath et al. (2005) researched attendees at a major sponsored event
and found positive links between sponsorship and favorable brand percep-
tion and indications that purchase intention was also favorably influenced
by the attendees brand experience. However, the survey took place during
the event and, therefore, does not indicate the longer term effects, time-lags,
or memory decay factors. As with other studies, Sneath et al. recognized the
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need to allow for the effects of other communication tools on the outcomes
and the difficulty in isolating the event effects from the rest of an IMC
program.

STOCHASTIC SYSTEMS
A technique which combines the logic of econometrics with the realities
of complex interaction and human behavior can be developed through the
use of stochastic systems. The basis of a stochastic system is to describe a
relationship between variables alongside a recognition that nothing exists
in isolation, there are no one-to-one relationships between variables, there
are few linear relationships, and most importantly that the nature of relation-
ships can only be determined through versatile analysis and good judgement
(Archer & Hubbard, 1996). In the short term this should involve an analysis
of each marketing event using questions such as:

– How well are target audiences being reached and involved?


– What messages are consumers receiving about the brand?
– What are consumers doing?
– What would they prefer to do?
– Why would they prefer to do that?
– What is hindering or helping them?

The longer term strategic measures can then be used for the overall
IMC campaign and include analysis of share of voice, attitude, behavior, and
image, for example. For each experiential marketing event the measures are
stimuli focused (researching and involving target audience) and, in the long
term, more holistically outcome focused (Archer & Hubbard, 1996).
Evaluating Event Marketing 257

MEASURING EVENT RELATED OUTCOMES AND BEHAVIOR


Young and Aitken (2007) put forward a pragmatic case for measuring out-
comes rather than outputs suggesting that many marketing communication
metrics are inappropriate and create an illusion of ROI rather than actual
bottom-line effects. They suggested the following measures as they can eas-
ily be tied to purchase, revenue, and profitability: intention to buy; brand
penetration (trial); repeat volume; loyalty; retention rate; price premium;
and customer profitability. Of course, these need to be decided upon prior
to developing the campaign, rather than made to fit afterwards, to avoid the
pitfalls of much agency based evaluation which often tells a “good story,”
whatever the result.
A more controversial view is articulated by Schultz (2005) who states
that marketers should stop measuring based on marketing activities and as-
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sess brand value through the people (customers) and their market place
networks. He argued that what brands are and what they mean is not con-
trolled or even greatly influenced by marketers but by the consumers and
their observations, conversations, and recommendations. Brand success can
only, therefore be measured using barometers of opinion change and not
necessarily equated to marketing activity. Consumer marketplace networks
are the key factor to measure and evaluation needs to focus on what cus-
tomers know, understand, accept, and believe about the brand. This gives
an overall view of brand value, as well as, changes in this over time, but
it is not necessarily useful in determining what has caused or created any
change in value.
Lofman (1991) is similarly focused on the consumer rather than the
marketing result and considered experiential consumption research from a
psychological and consumer behavior perspective. He suggested that there
are many factors to consider including the environmental context (event set-
ting); the consumer’s thought processes; feelings; activities and evaluations;
and the consumer’s level and responses to sensory stimulation. Within this
is the need to recognize that the appeal of some experiential events is he-
donic (art, sport, music), others have instrumental appeal (sampling, trade
shows) and others combine both (test-drives, consumer shows). Evaluation,
therefore, needs to consider both the hedonic and instrumental experience
of the consumer.
In order to evaluate the outcomes of particular marketing activities (i.e.,
event marketing), it may be more practical to measure the “value” to the
customer. This requires both benefits and costs of the experience to be con-
sidered. Costs can be monetary, cognitive, psychic, and psychological, as
can the benefits. These costs and benefits tend to be situational, personal,
and idiosyncratic and, therefore, perhaps difficult to research in a generaliz-
able way. Ponsonby and Boyle (2004) suggested a three factor conceptual
model (based largely on Lofman’s work [1991]) to guide future research
258 E. H. Wood

which takes into account 1) contextual factors (environment and ambience)


affecting the consumer and the event; 2) the factors related to the consumer
which are long term in terms of personality, psychological make up, social
circumstances, and culture, as well as, immediate in terms of mood; and 3)
the event itself, which has its characteristics and value as a good or bad
experience. It is through the interplay of these three factors that experiential
value and cost is created (Ponsonby & Boyle).

SCHMITT’S EVENT EXPERIENCE SCALE


In an attempt to quantify the consumer’s experience, Schmitt’s (1999) as-
sessment scale measures whether a particular experience (ExPro) appeals
to a specific “strategic experiential module” (SEM), the consumers ability to
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Sense, Feel, Think, Act and Relate with the brand.


The scale uses a number of items rated by the consumer from “not at
all” to “very much.” For example, to measure “sense” the items are suggested
as:

• The event tries to engage my senses. (+)


• The event is perceptually interesting. (+)
• The event lacks sensory appeal for me. (−)

And to measure “feel” the items are:

• The event tries to put me in a certain mood. (+)


• The event makes me respond in an emotional manner. (+)
• The event does not try to appeal to my feelings. (−)

This tool offers simplicity and comparability and has been empirically
tested for validity (Schmitt, 1999). However, its ability to measure emotional
attachment and longer term attitude and behavioral change is questionable.

MEASURING EVENT CREATED WORD-OF-MOUTH


Creating buzz, word-of-mouth, or consumer conversations about the brand
can be one of the main goals of an experiential marketing event and is,
therefore, one of the potential outcomes which needs to be evaluated. Jack
Morton’s 2006 Experiential Marketing Study found that live experiences are
the number one medium most likely to generate word of mouth. According
to the survey, 85% of respondents said that participating in experiential mar-
keting would cause them to talk about a product or brand (Bigham, 2006).
Krueger and Casey (2009) suggested that one possible tool for measur-
ing WOM following an event is to interview the friends of those that attended
Evaluating Event Marketing 259

the activity in order to establish what has/or has not been said about the
activity. These qualitative measures may take the form of in-depth interviews
(or “friend depths”) or focus groups (“friend-groups”) and are limited by the
accessibility of “friends” to researchers. An alternative way to measure word
of mouth is to ask event attendees how likely it is that they would recom-
mend the brand to a friend or colleague. Reichheld (2006) recommends that
respondents should answer this question using a rating scale with “0” rep-
resenting the extreme negative and “10” representing the extreme positive.
Those scoring themselves 9 or 10 are seen as “loyal enthusiasts” who keep
buying from a company and urge their friends to do the same; whereas,
those who answer less than 6 are viewed as “detractors” and are “unhappy
customers trapped in a bad relationship.” Although this is a useful measure,
as it is simple to obtain and again allows for some comparison, it has a
number of drawbacks. Firstly, self-assessment can be unreliable as scoring
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can vary according to perception of the scale, mood, and timing. Secondly,
the method only measures the potential for word of mouth and not actual
recommendations.

MEASURING EVENT CREATED BELIEFS AND FEELINGS


A major problem in evaluating the outcomes of an experiential marketing
event is the need to measure and attribute the cause of subconscious feelings
toward a brand. A complex but thorough technique developed by Zaltman
(2003) helps marketers to understand the underlying motivations that influ-
ence a person’s decision to buy a product or form an opinion.
Using techniques adapted from psychotherapy, cognitive neuroscience,
psychology, and sociology, interviewers take participants through a series of
exercises designed to reveal the fundamental feelings and beliefs that drive
their actions (Zaltman, 2003; Peter & Olson, 2008). Although, this technique
would prove overly expensive and time-consuming for practitioners to ap-
ply, it could provide the basis for academic research into how and why
experiential events affect consumer opinion and behavior. In turn this could
lead to a better understanding of the attributes of experiential marketing
events which are most effective.
Other research on event evaluation (Pol & Pak, 1995), experiential value
(Mathwick, Malhotra, & Rigdon, 2001; Chattopadhyay & Laborie, 2005) and
measuring consumption emotion (Richins, 1997) could also prove useful in
experiential event marketing. The story that seems to emerge is that a variety
of tools and measures exist which could be adapted and combined to provide
evaluation methods which would give significant insights into the consumer
experience at marketing events, the effectiveness of event marketing, and its
role in integrated marketing communications (IMC) outcomes.
260 E. H. Wood

Exploratory Research
In order to further understand how the success of event marketing activ-
ity could be evaluated secondary research was conducted which identified
published material in the form of reports, surveys, and practitioner articles
which give an overall picture of current evaluation practice in the field.
Findings from this research and key concepts developed in the literature
review were then used to frame questions asked of key informants in the
event marketing industry. The interviewees were selected based on their
level of experience in the sector and on their broader knowledge of activity
gained from being long term members of event marketing related networks
and associations. Potential interviewees were initially identified through the
experiential marketing forum (IXMA, 2007) and through a UK industry list
of “top” experiential marketing agencies. These were then narrowed down
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through a preliminary discussion of their experience and expertise and their


willingness to be interviewed.
Four respondents were finally selected. The first runs a small but highly
successful event marketing and team building agency which has undertaken
a wide variety of event design and management contracts for a range of
clients over the last fifteen years. The second respondent is the chief execu-
tive officer of a multinational event management company involved in larger
scale events for blue-chip companies. A third respondent is a strategic plan-
ner for a high profile experiential marketing agency with many international
clients. Finally the marketing director of an award winning Scottish based
event marketing agency was selected.
The in-depth interviews focused on their understanding of how events
are used within the wider marketing context, what they can and cannot
achieve and, most importantly, how marketing event success can be mea-
sured.

Current Practice and Thinking


Based upon the findings of several published practitioner led surveys, there is
a mixed picture regarding current evaluation practice. For example, although
1 in 4 marketing executives believe that event marketing provides the best
return on investment (EventView, 2006), 79% of event marketing agencies
do not have specific tracking or measurement systems for evaluating their
programs (Business Development Institute, 2006). The mismatch between a
belief in the effectiveness of event marketing and proof of that effectiveness
is perhaps a reflection of the relative infancy of event marketing communi-
cations. However, as expenditure increases, so will the desire for measures
of a return on that expenditure. Event managers currently explain the low
levels of evaluation as being due to a number of factors including a lack of
understanding of how to approach measurement, a lack of agreed measures
Evaluating Event Marketing 261

TABLE 3 Measuring Return on Investment (ROI) and the Consumer Experience at Marketing
Events

2005 2006

Return on Investment
Event headcount 49.5% 45.7%
Register sales data per event days 37.9% 45.7%
Future likelihood to purchase 37.4% 45.7%
Internet hits post-event 34.7% 43.6%
Samples, coupons distributed 30.0% 37.2%
Length of time engaged 18.4% 25.0%
Other 4.7% 5.9%
Consumer Experience
Sales Volume 54.2% 66.0%
Expressed purchase intent 41.1% 39.9%
Brand preference altered 27.9% 29.3%
Other (Brand awareness, loyalty, email hits, etc.) 7.9% 7.4%
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Source: Johannes (2007).

between agency and client, and a lack of funds to undertake meaningful


evaluation (Roythorne, 2006).
A study undertaken in 2007 gives a different view of current evaluation
practice showing the percentage of firms (agencies and clients) professing
to use each type of measurement (Johannes, 2007) (Table 3). Although a fair
proportion use some form of measure, these tend to be limited to the easy
to measure aspects at or soon after the event itself. The more intangible, but
more valuable, measures of brand awareness, preference, and loyalty are
evaluated rarely.
Despite the need to show a return on investment very few companies
are managing to do this for their marketing expenditure (Patterson, 2004).
This is partly due to a lack of meaningful metrics against which performance
can be measured. Patterson suggests a range of metrics that can be applied to
all marketing expenditure and, therefore, adapted for evaluating marketing
events. These are:
Customer acquisition:
– Customer growth rate
– Share of preference
– Share of voice
– Share of distribution
Customer relationship management:
– Frequency and recency of purchase
– Share of wallet
– Purchase value growth rate
– Customer tenure
– Customer loyalty and advocacy
262 E. H. Wood

Value enhancement:

– Price premium
– Customer franchise value
– Rate of new product acceptance
– Net advocate score

A first stage, therefore, in evaluating the effectiveness of experiential


marketing events is to determine the most appropriate metrics (and ways of
measuring these). It is then necessary to evaluate these against benchmarks.
Although mainly literature review and secondary research, this paper
has also sought to gather the views of experienced practitioners operating
in the event/experiential marketing field. The views reported here are from
CEOs, marketing directors, and strategic planners, all with a wide variety
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of experience of creating, hosting, and evaluating experiential events for a


range of clients.
Experiential marketing is defined by the interviewees as:

“what your customer thinks, feels and associates you with,” “it’s some-
thing that creates a sublimely emotional/mental connection with the
business/product” and “any activity that uses multi-sensory engagement
of consumers to create an emotional response to the message/brand/
promotion.

Clearly the practitioner view emphasizes the emotional, hedonic nature


of experiential marketing. The experience created at the event needs to be
something more than an instrumental, practical exposure to the product or
brand.
The reasons for using experiential marketing rather than more traditional
methods were typically explained as:

It brings the brand to life, turns it from a name/logo into an interactive


life form, it gives it DNA. An opportunity to interface with customers.

It provides essential emotional connections with their message/brand/


promotion. The consumer experiences the message/brand/promotion in
a way that is physical, audible and visual. The consequence is a greater
affinity with the message/brand/promotion and longer retention of the
message/brand/promotion.

And:

Only by achieving emotional connections can today’s brands hope to get


onto people’s portfolios, and more importantly, facilitate word of mouth
(net promoter).
Evaluating Event Marketing 263

The main benefits appear to be again related to the emotional setting in


which the brand message is delivered. The event becomes the brand, rep-
resenting the brand values in a physical and interactive form. This suggests
then that one of the most important aspects to measure is the strength and
characteristics of the emotional connections made as a result of the event.
All the interviewees agreed that clear objectives are imperative for suc-
cessful marketing events and that these are usually initially set by the client
and moderated by the agency in terms of what can realistically be achieved.
Objectives are set at two levels in terms of meeting the needs of the organi-
zation using the event and in terms of the audience, guests, and attendees
of the event.
For example the objectives for one event were:
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to achieve early contact with the brand in a controlled environment for 8


to 11 year olds. To make sure this early contact is fun while educationally
robust, thus engaging pupils as well as their teachers.

The achievement of objectives appears to be the responsibility of both


the agency and the client and sometimes an external research agency where
greater objectivity is needed. Discussion of the measures to be used and
methods of measurement form part of the contract and “must be agreed
before the event in order to protect both parties.”
Most agencies include evaluation for each event organized. This varies
in depth and breadth according to clients’ needs and willingness to pay.
Evaluation is also conducted as part of the agencies’ internal systems in
order to build their own “knowledge and capability.” Furthermore, all the
interviewees believe that all aspects, tangible and intangible, can be mea-
sured but that measurement is constrained by time, money, and the need for
assumption.
The range of methods used to evaluate experiential marketing events
included qualitative and quantitative approaches ranging from a fairly formal-
ized adaptation of the balanced score card methodology to simple measures
of volume of attendees (using door counters; gift distribution; diarized visita-
tion). Also used are face-to-face or self completion questionnaires to assess
visitor attitudes to the event content, staff questionnaires to establish staff
experiences and areas for evolution, and media cutting services to measure
media exposure achieved.
Although many of these measures focus on the event itself rather than
its effects, practitioners recognize the importance of longer-term in-depth
evaluation.

We very rarely get the budget to complete post research to measure


the impact of the event after it has passed. This could and should be
done by measuring attendee attitude some weeks/months after the event
264 E. H. Wood

has passed; changing consumer habits; sales volume comparisons with


non-promotional periods etc.

The interviewees also recognized the need for a greater amount of


evaluation to be undertaken within the industry. However, problems were
also envisaged in terms of the scope of the industry and, therefore, the
difficulty in standardizing methods and measures, the problem with isolating
the effect of an event from overall IMC activity, and a lack of resources as
any budget being spent tends to go on event delivery and content rather
than research.
In developing evaluation, the respondents would like to see “a spectrum
of techniques that people can adopt, develop and grow with” and a change
to longer-term thinking and commitment, that would, in turn, “increase the
value placed on post-event research as clients seek to improve their events
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each time; year on year.” “Short-termism” is seen as one of main obstacles to


improving event evaluation as the brand manager is often “on the brand for
a short period” and “thus they are not brand building but winning market
share for a short time.”

CONCLUSIONS

In reviewing both the literature on experiential marketing evaluation and


through discussions with practitioners, this paper has perhaps created more
questions than answers. Before practical methods of experiential marketing
event evaluation are developed, there is much more research to be done
in understanding the effects of such methods on consumers, in isolating
those effects from other influences, and then on determining methods for
controlling or maximizing the effects.
Although much of the practical research being done is currently led by
the agencies providing the events, the onus should lie with the user (client)
not the provider (agency) and with marketing academics. Otherwise, we are
in danger of relying on research that is driven by the need to prove the value
of a particular event or of the industry as a whole and being undertaken by
those without an insight into the holistic nature of the marketing campaign.
Due the variety of types and sizes of experiential marketing events, a
consistent approach can only be developed through focusing on consumer
experience, objectives, and outcomes rather than content and form. For ex-
ample, a method developed to measure attitude change related to one event,
should be applicable whenever attitude change is an objective. If direct sales
are the objective, or customer retention or product trial, then different evalu-
ation techniques need to be employed. The overall effectiveness of the event
may therefore require the summation of a number of evaluations on each
objective.
Evaluating Event Marketing 265

TABLE 4 The Three Levels of Marketing Event Evaluation

Stage Measured Pros Cons

1. The Event Attendance, media Focuses on the event Does not measure
coverage, effectiveness
satisfaction
2. Consumer Value = Focuses on consumer Assumes positive
Experience Benefits-costs Focuses on event experience
(experience of experience equates to
event) marketing
effectiveness
3. Consumer Feelings, attitudes, Focuses on results, Difficult to isolate
Response intentions, behavior outcomes effects, longer term
(response to the
experience)
a) Attitude change as Perceived brand
a result of values, preference,
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experience liking
b) Behavioral change Purchase behavior,
as a result of WOM,
experience recommendations,
advocacy, trial

A further problem to overcome is that experiential events are often a


small part of a much greater integrated marketing communications campaign
(Pitta, Weisgal, & Lynagh, 2006). The “value” of the event may not easily be
assessed separately from the overall effect of the campaign. It may be nec-
essary, therefore, to assume an outcome based upon measures of consumer
experience and emotional resonance with the brand before and after the
event.
Pine and Gilmore (1999) suggest that those companies who stage ex-
periences alone, without considering the effect these experiences will have
on participants and without designing the experiences in such a way as to
create a desired change, will eventually see their experiences become com-
moditised. If marketing events remain, as they should, as unusual events,
not continuous and not commoditized, it will be more feasible to isolate
their effects within IMC measurement as there will be comparisons available
between periods with and without experiential events.
However, a generalizable methodology is unlikely due to the diversity
of “marketing events” and the individualistic nature of the consumer experi-
ence. Research now needs to move away from a reliance on data collected
about the event and move towards research that focuses on developing a
clearer understanding of the consumer experience at the event and, more
importantly, the consumer’s longer-term response to that experience (see
Table 4).
Mixed methods are needed to gain this understanding using a combi-
nation of the trends and models used within econometrics and stochastic
266 E. H. Wood

modelling and the in-depth individualized techniques of consumer psychol-


ogy. It is unlikely that a methodology can be developed that is perfectly
applicable to every event or that any methodology will be error free, how-
ever, recognizing these limitations and striving to develop better methods
will always be far better than not attempting to evaluate at all.
The worth of experiential events is not in question. What is now needed
is an understanding of how and why they work. Only after this is understood
will we know what to measure and how.

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