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 Sales Relationships and rewards Marketing Communications Networking & intelligence Event 82% 27% 16% 12% 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

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 Event organisers Activity operators Caterers Suppliers Brokers/ agents Companies: Pharmaceuticals IT & telecoms Financial City Law firms Corporate Events Association

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