With the current economic downturn and criticism of extravagant corporate spending, especially on incentive trips, is there still a need for event marketing? Suppliers and service  providers answer with an unequivocal “yes”. Upmarket restaurants and entertainment venues have seen a 25 to 40 per cent drop in overall business. 

“Creating meaningful events that showcase products and reinforce companies’ branding and positioning in the market are an invaluable part of the marketing mix,” says Nik Laming, Carlson Marketing’s managing director — Singapore and vice-president Asia Pacific. 

Divided opinions
However, opinions among corporate end-users are divided. When marketing budgets are cut, advertising and promotional activities are often among the first to go. Doing away with this season’s product launch, sales meeting, roadshows, client dinners and networking cocktails save money and time.

But exclusive events are designed to meet specific objectives, engage guests and provide greater interaction. For example, Cisco Systems’ Unified Communications Summit includes partners and industry analysts in a multifaceted presentation, allowing attendees to experience technologies ‘live’. Sun Microsystems’ popular annual Sun Tech Days never fail to draw business partners and participants. The opening ceremony on January 21 saw more than 1,000 IT developers merrily playing Chinese rattledrums to celebrate the Lunar New Year. Conference tracks interspersed with product demonstrations at partners’ booths, games and lucky draws also attracted interest.

Corporate sponsorship
Companies also use sponsorship to leverage major events. Rajan Menon, senior manager public relations, Pernod Ricard Singapore, says: “As the official F1 champagne, G.H. Mumm was served at our Paddock Club and Sky Suites with specially catered cuisine from top restaurants. “There were over ten F1-related parties, and two exclusive food-pairing dinners prepared  by the F1 executive chef.”

Experiential marketing 
Experiential marketing can be effective even with a tight rein on costs. To stretch budgets, Laming suggests employing fresh ideas – but with the same level of creativity. “Focus on things that really matter to your business,” he says. For example, a global IT player has consolidated its incentive travel reward programme for all regions into one destination somewhere in Asia. The event is back-to-back over three weeks for maximum economies of scale, without compromising on quality. “Over 3,000 attendees will participate in a series of fourto six-day programmes to deliver a memorable event tailored for different cultures in the one destination,” says Laming. 

Cameron Day, global business development director of iris Experience, sees the focus shifting from large trade events to experiential marketing, engaging audiences on their terms and in locations more relevant to them. “The overall spend is actually increasing, but there is a definite change in focus. We work with clients on setting hard targets for their activity,” he says. Because experiential events produce quantifiable results, Day even suggests that clients could offer agencies “part-payment by results”.

A brave and bold move – but will such offers find takers?