Unit 3 - The Demand Side Of The Business Event Industry Flashcards
Defining the Buyer
What is Business Travel?
Business travel is concerned with people who are traveling for purposes to do with work.
It includes those who travel as part of their job.
Who is the buyer?
Buyer refers to the organization that initiates and pays for the event.
Business traveller is rarely the buyer of the event.
ORGANISERS
Plan and set up the exhibition.
EXHIBITORS
Initiate and pay for their own presence at the event.
THE CUSTOMER
The customer is whoever makes the decisions, or gives permission; also, it is the customer who ultimately pays the bills for the event.
The buyer in the business events industry is referred to as the customer i.e, the organization which is hosting and paying for the event.
THE CONSUMER
The consumer is the person who actually travels and consumes services. They may pay their own travel or delegate fee; however, they are not responsible for the bills at the event itself.
CORPORATE
Corporate sector is for profit. Organization exists in order to make money.
Corporate events take the form of meetings, exhibitions, incentive trips, corporate hospitality, conferences, product launches etc.
TRADITIONAL SECTORS
Traditional sectors to initially stage business events are: oil, gas, petrochemicals, medical and pharmaceutical, financial and professional.
NEW SECTORS
New sectors in the business events market : creative industries, electronic currency and finance, biotechnology and specialist sciences.
ASSOCIATION
➡️Association - act of being associated for certain common purposes. Often run by an elected committee.
➡️ Exists to provide a service to members.
➡️ Association buyers - ‘not for profit’
GOVERNMENT
➡️ Type of buyer known as the ‘public sector’
➡️ Sometimes included as part of the association market.
ACADEMIC
➡️ Events normally take the form of seminars, conferences, public lectures and other knowledge sharing activities.
➡️ Academic events might be devoted to a single subject area or may be inter-disciplinary.
➡️ Academic associations likely to hold regularly conferences to share research findings.
S.M.E.R.F
➡️SMERF - Social, Military, Educational, Religious, Fraternal.
➡️ Associations which are not work-related.
DELEGATE
➡️ Pays little attention to the planning stage.
➡️ Buyers make their decisions based on their experience and knowledge of what they believe delegates want.
➡️ Delegate does not make choices at the planning stage; however, he or she is central to the decisions made by others.
CORPORATE DELEGATES
➡️ Average corporate delegate is 38.
➡️ 64% are male.
➡️ Jobs are likely to be senior or middle management.
➡️ Attend on average 3 events per year.
➡️ Partners or friends are rarely expected or welcomed to attend corporate events.
ASSOCIATION DELEGATES
➡️Average age is 40.
➡️ 55% are male.
➡️ Attend on average 1.7 events per year.
➡️ Charged an attendance fee to cover costs.
➡️ Price sensitive.
➡️ Can choose whether or not to attend an event.
➡️ Destination’s perceived attractiveness may influence in deciding whether they will attend event.
EXHIBITION VISITORS
➡️ Usually trade-to-trade.
➡️ Professional business people.
➡️ Invest time and money to attend event.
➡️ Expect a high quality experience.
Broken down into types: ➡️ Tyre kickers ➡️ Wheeler dealers ➡️ Technocrats ➡️ Foxes ➡️ Day-trippers
Only the wheeler-dealers, and therefore only 10% of exhibition visitors are likely to be planning a purchase at the event.
INCENTIVES AND CORPORATE HOSPITALITY
➡️ End users in incentive travel are usually company employees being awarded for performance.
➡️ Organizations use corporate hospitality as opportunity to convert customers into loyal clients.
➡️ End users are existing or prospective customers of the buyer organization.
