Marketing Evaluation and Control

1. Events Marketing
Week 10 - Marketing evaluation
and control

2. Today we are going to
1. Introduce the concept of marketing
evaluation and discuss its importance
2. Present some examples of operational and
financial marketing controls
3. Discuss the role of budget management
and provide a budget template

3. Implementation, Evaluation & Control
Implementation
Planning Control
Measurement
Evaluation
Source: Adapted from Masterman and Wood, 2006

4. Marketing Control Process
Marketing Plans
Actions
Outcomes
Compare outcomes with goals
Analyse deviations
Solve problems Exploit success
Learn & Revise
Formal
vs.
Informal
control
Information
processing
Feedback
Goals
Source: Brassington and Pettitt (2006)

5. Marketing Control Cycle
Communication objectives
Benchmarks/Standards
Measurement of
performance
Effectiveness (relevance, clarity,
credibility, response, satisfaction)
Efficiency (reach, frequency,
impact, cost)
Corrective
Action
Reactive control
Proactive control
Evaluation of
performance
Return on Investment (ROI)
Return on Objectives (ROO)

6. Marketing Communications Design
1. Setting marketing communications
objectives
2. Reviewing your stakeholders & formulating
marketing communications messages
3. Defining which channels to use and how
4. Setting the budget
5. Monitoring, evaluating & adjusting

7. Operational Marketing Control
Sales analysis
1. By customer (e.g. particular sponsor)
2. By product (e.g. session at a conference, exhibition space,
etc.)
3. By sales representative – account manager in the events
management team
4. By distribution channel (e.g. by a particular ticket retailer,
internet website, etc.)
5. By region

8. Operational Marketing Control
Marketing Costs & Profitability Analysis
What are the shortfalls of this kind of measurement
method?
Revenue
• Product types sold
• Quantity sold
• Prices
Marketing Costs
• Advertising
• Promotion
• Market Research
• Personal Selling
• Distribution etc
less = Marketing
profit

9. Tactical Metrics - Advertising
1. Universe
2. Reach
3. Frequency
4. Circulation (Paid and Controlled)
5. Readership
6. Opportunity to see (OTS)

10. Gross Reach, Net Reach, OTS
The Financial Times The Economist
20,00020,000 30,000
Gross Reach in numbers = 90,000
Net Reach = 40,000 + 50,000 - 20,000 = 70,000
OTS = 90,000 / 70,000 = 1.29
Adapted from a Slideshare by Prof Indrani Sen

11. Calculation of Average OTS
Event 1 Event 2 Event 3
50% see the event in total. 10% see ad twice.
AOTS = Gross reach/Net reach
= 60 / 50 =1.2 Average O.T.S
Reach
30%
Reach
20%
Reach
10%
Adapted from a Slideshare by Prof Indrani Sen

12. Tactical Metrics - Public Relations
1. Number of write-ups
2. Equivalent media cost
3. Positive vs negative coverage
4. Opinion leaders

13. Tactical Metrics Public Relations – The
Barcelona Principles
• Principle 1: 'Goal setting and measurement are fundamental
to communication and public relations'.
• Principle 2: 'Measuring communication outcomes is
recommended versus only measuring outputs'.
• Principle 3: 'The effect on organisational performance can
and should be measured where possible'.
• Principle 4: 'Measurement and evaluation require both
qualitative and quantitative methods'.
• Principle 5: 'AVEs are not the value of communications'.
• Principle 6: 'Social media can and should be measured
consistently with other media channels'.
• Principle 7: 'Measurement and evaluation should be
transparent, consistent and valid'.

14. Tactical Metrics - Sales promotion
1. Number of voucher redemptions
2. Sales related to a particular promotional activity
3. Enquiries generated by particular activities
4. Leads generated from a particular sales promotion
5. Direct responses to a particular sales promotion
6. Contact data collected during a particular sales promotion

15. Tactical Metrics - Personal selling
1. Sales per sales representative
2. Sales per lead
3. Number of pitches given
4. Invitations to bid

16. Tactical Metrics - Promotional events
1. Contacts made / opt ins
2. Attendance figures
3. Sales made at the event
4. Trials run at the event
5. Media coverage generated by the event
6. Intended word-of-mouth
7. Brand preference

17. Tactical Metrics
New media
1. Website: hits, registrations, opt-ins, click-throughs
2. Facebook: ‘likes’, members/friends/attendees
3. Twitter: followers, re-tweets
4. Videos: number of views, number of likes/dislikes
- CPC, CPA, CTR and Conversion ratios

18. Evaluation case study: Sense London
• Experiential event agency of the year 2012
• An overview of what they do
• Specialises in evaluation - examples

19. Operational Marketing Control
Other methods of operational control
1. Reports & Meetings – project status report
2. Delegation & self-control - subcommittees
3. Quality control – customer satisfaction surveys
4. Financial control – BUDGET, break even point,
ratio analysis
5. Timelines
6. Management system – observation, surveys

20. Operational Marketing Control
1. So what is the bottom line?
2. Having a good plan and tracking its
implementation
i. Analyse the resources available
ii. Identify tasks and responsibilities to be done
iii. Schedule the tasks
iv. Monitor Work in Progress (WiP)
v. Project evaluation – projected vs. actual
results

21. Financial Operational Control
1. Budget – a tool for planning and control
of financial inflow/outflow
2. Cash flow control – discrepancy between
receiving revenues and cost deadlines
3. Essential prerequisite for obtaining
external funding for events

22. Financial Control - Budget
 Master budget vs. Functional Budget
 Budget creation:
 Identifying sources of income
 Specifying cost items
 Following guidelines from supervisors/clients relating to
allocation of income/expenses
 Budget approval
 Budget tracking/adjustments
 Planned vs. Actual Budget

23. Financial Control - Budget
 Principles of budget setting:
 Inertia based
 Business based
 Media based
 Competition based
 Dynamic based

24. Marketing Budgets –
Potential sources of income:
1. Ticket sales / exhibitor sales
2. Sponsorships/Partnerships
3. Funds & Grants (local and national government)
4. Donations
5. Concessions (food/drinks)
6. Merchandising (T-shirts, mugs, event photos,
etc.)
7. Advertising
8. Broadcast rights
9. Special features (raffles, auctions, lottery, etc.)
10. Membership/loyalty cards/fees (repeat visits)

25. Marketing Budgets –
Major marketing expenditure items:
1. Administration
2. Documentation (contracts etc.)
3. TV/radio costs
4. Print media costs
5. Digital media costs
6. Publicity stunts (guerrilla marketing – various
operational costs, e.g. permits, production of
materials, etc.)
7. Hospitality
8. Insurance
9. Volunteers

26. Sample Marketing Budget
INCOME £ EXPENDITURE £
1. GRANTS 2,000.001. Print marketing 15,700.00
1.1. Local council 2,000.00 1.1. Magazines 5,600.00
1.1.1. Magazine 1 2,500.00
2. TICKET SALES 7,000.00 1.1.2. Magazine 2 3,100.00
2.1. Early bird tickets 3,000.00 1.2. Newspapers 4,500.00
2.2. Family tickets 4,000.00
2. E-marketing 1,000.00
3. SPONSORSHIPS 23,000.00 2.1. Online banners
3.1. Sponsor 1 10,000.00 2.1.1. Banner design 250.00
3.2. Sponsor 2 8,000.00 2.1.2. Banner space 750.00
3.3. Sponsor 3 5,000.00
3. Guerrilla marketing 2,900.00
4. CONCESSIONS 7,700.00 3.1. Leaflets (3000 pcs) 150.00
4.1. Concession 1 3,200.00 3.2. Costumes/props 750.00
4.2. Concession 2 4,500.00 3.3. Staff 2,000.00
TOTAL 39,700.00 19,600.00
PROFIT (LOSS) 20,100.00

27. Financial Control – Cash Flow
1. Event cash flow
2. Supplier goodwill
3. Negotiating payment terms, buying on credit
4. All purchases relating to the event should be
approved and controlled by the event
manager
5. Watch out for taxes and extra charges (e.g.
service fees/charges)
6. Clarify delivery details, impose penalties for
goods that are delivered late or do not meet
the standards required by the event

28. Scheduling - Gantt Chart
Steps in the creation of a Gantt chart:
1. Defining the tasks to be completed
2. Setting a timescale for each task
3. Prioritising the tasks set
4. Grid
5. Emphasizing milestones

29. Scheduling -Gantt Chart
Advantages of a Gantt chart:
1. Visually clear summary of the event schedule
2. Effective communication and control tool
3. Can point out problem areas or clashes in
scheduling
4. Readily adaptable to all event areas
5. Provides a summary of the history of the event

30. Scheduling
Jul Aug Sep Oct Nov Dec Jan Feb Mar
Activity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Investigate competition
Create marketing budget
Decide on the marketing tools
Contact last year's sponsors
Contact new sponsors
Finalize and sign sponsorship contracts
...
...
...
...
...
...
...
...
...
...
...
Gantt Chart

31. Scheduling
How to do it
1. Work from the date(s) of the event backwards
2. Make a list of all the activities that have to be
done and highlight the milestones – set the
dates for these to be finalised
3. Have one master timeline with all the
milestones highlighted & lots of separate
functional timelines, staff timelines, period
timelines (e.g. monthly, weekly, even daily...)
4. Clear identification of tasks and staff
responsibilities

32. Follow-up reading
Evaluation and Control
• Masterman and Wood (2006)
– Chapter 14
• Brassington and Pettitt (2004)
– Chapter 21
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