1. © 2006, Educational Institute Chapter 6 Selling Other Markets Convention Management and Service Seventh Edition (478CSB)

2. © 2006, Educational Institute 1 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.

3. © 2006, Educational Institute 2 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 ConferenceAffordable Meetings

4. © 2006, Educational Institute 3 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

5. © 2006, Educational Institute 4 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

6. © 2006, Educational Institute 5 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

7. © 2006, Educational Institute 6 SMERF Groups Price Conscious Good numbers Fill soft spots People like to join social groups

8. © 2006, Educational Institute 7 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

9. © 2006, Educational Institute 8 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 (continued)

10. © 2006, Educational Institute 9 Military and Other Reunions 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 NewsTRN News Reunions, The Magazine Military Reunion News The Military Reunion Handbook: A Guide for Reunion Planners (continued)

11. © 2006, Educational Institute 10 Military & Other Reunions Flexible weekend business Military Sept/Oct. Annual, biennially Banquet, Service, Meeting Price conscious Share rooms Class & Family Recreational amenities F&B, no meetings Pay own way Double occupancy

12. © 2006, Educational Institute 11 Educational Broad & Diverse Fill summer slow periods Teacher associations Continuing education Accessibility & Value Short Extremely price sensitive

13. © 2006, Educational Institute 12 Educational Groups Characteristics Fill rooms in summer months Local, regional, and national meetings Short in length Accessibility and value considered important (continued)

14. © 2006, Educational Institute 13 Educational Groups 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 (continued)

15. © 2006, Educational Institute 14 Religious Small & Large Summer months Family oriented locations Pay own way Price sensitive Double occupancy Community Service projects Example: Promise KeepersPromise Keepers

16. © 2006, Educational Institute 15 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

17. © 2006, Educational Institute 16 Fraternal The Greeks Multiple occupancy General membership, retreats, institutes, board or council meetings Professional honorary societies Service Groups Elks, American Legion Holiday parties Fund raising Annuals

18. © 2006, Educational Institute 17 Fraternal Groups Lead Sources Fraternity Executives Association National Panhellenic Conference National Interfraternity Council Alumni associations, Student Activities divisions at schools Yellow pages: Fraternal Organizations; Fraternities & Sororities (continued)

19. © 2006, Educational Institute 18 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) (continued)

20. © 2006, Educational Institute 19 Government Agencies Lead Sources Phone book: Blue pages or other special pages Society of Government Meeting Professionals (SGMP)Society of Government Meeting Professionals Society of Travel Agents in Government (STAG) Commerce Business Daily List property in Official Airline Guide— Government Edition (continued)

21. © 2006, Educational Institute 20 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

22. © 2006, Educational Institute 21 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 (continued)

23. © 2006, Educational Institute 22 Labor Unions 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: secretary- treasurer (continued)

24. © 2006, Educational Institute 23 Other These are part of corporate and association market…….but deserve attention Incentive Insurance Medical

25. © 2006, Educational Institute 24 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 (continued)

26. © 2006, Educational Institute 25 Incentive Meetings 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 (continued)

27. © 2006, Educational Institute 26 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)

28. © 2006, Educational Institute 27 Medical Meetings Characteristics Market growing rapidly Usually 200 attendees or fewer Great potential for repeat business Held during peak periods for hotels (continued)

29. © 2006, Educational Institute 28 Medical Meetings 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 (continued)