1. business and industrial

Understanding the Association
Market and Convention Business
Saint Petersburg 2014
Content:
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Anatomy of Associations
Conventions vs. Other Markets
Convention Market Profile
Trends and Business Drivers
Marketing to Associations
Definition of Association
Two or more entities
with a
shared objective
Conventions - Business
Objectives
Political – G20 Summit
Religious - World Ecumenical Forum
Economics - World Economic Forum
Scientific - World Genetics Congress
Trade - Intl. Union of Food Science & Technology
Professional - International Chartered Accountants
Interest groups - Windows User Group
World organisations - Rotary
Sports - IOC
Types of Associations
Trade = Company members, represent
the interest of an industry
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Lobbying
Standard setting / maintenance
Promotion
Business development
Education
Types of Associations
Professional (Professional Society or Community) =
Individual members, represent the interest of
people or a profession
 Education
 Certification
 Voluntary
 Non-voluntary
 Networking
 Buyers / Suppliers
Types of Associations
User Groups (mainly technology)
= Customer Communities
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Users of a specific vendor
Independence
Education
Networking
Product enhancement
Types of Associations
Federations = Association of
Associations
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Limited mandate
Avoid competition
Share resources
Define roles
“who owns what pieces of the pie?”
Intra-industry dialogue
Example of a Federation
Nature of Associations
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Not for profit organisations
Non government organisations (NGOs)
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Organised independently from government
Often to pursue a wider social aim
That may have policy implications (influencing
government policy, not making it)
What Associations Do
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Political lobbying
Standard setting, accreditation, self regulation
Industry promotion
Business development
Education
Industry trends and research
Product development (user groups)
The Association Model
Goal:
Deliverables:
Activities:
Member Value
Professional Development
Certification
Business Development
Industry Development
Education
Standards
Meetings
Industry Trends & Research
Communications & Lobbying
Board
Governance:
Staff
Management:
Resources:
Business Networking
Regulatory Environment
Member Fees
Membership
Volunteers
Participation Fees
Corporate Support
Content:
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5.
Anatomy of Associations
Conventions vs. Other Markets
Convention Market Profile
Trends and Business Drivers
Marketing to Associations
The Convention and Exhibition Industries vs. Tourism and Leisure
Tourism
Conventions & Exhibitions
Participants
Tourists
Professionals / Business People
Participant Motivations
Fun / Self Actualization
Business / Networking / Learning
Purpose of Visit
Leisure
Work Related
Customer Needs
Bargains
High Level of Service and Product
Buyers
Tour wholesalers / Travel agents
Meeting Planners / AMCs / PEOs
Buyer Motivations
Fees & Commissions
Successful Meetings / Profitable Shows
Decision Criteria
Destination Appeal
Facilities / Business Links / Market Issues
Buyer Service Needs
Reservations / Itineraries
Housing / Registration / Event Services
Distribution Channels
Travel Agents / Tour Wholesalers / GDS
Corp and Association HQs / AMCs / PEOs
Supply Chain
Hospitality Industry
PCOs / DMCs / Venues / Event Suppliers
Market Approach
Advertising / Marketing / Packaging
Direct Sales
Securing the Business
Strategic / Marketing Oriented
Tactical / Sales Oriented
Size of Groups
Individuals or small groups
300 – 10,000 delegates
Main Economic Impact
Direct Spending
Trade and Investment
Experienced
Tourism Offices
Not Experienced
Conventions vs. Other Markets
Location of meetings
Influencers
Association
Well known cities
Easy access
Good infrastructure
Association
Association
Board of Directors,
Chapters, Members, Meeting planner,
committees, Board
Staff, AMC
of Directors
Association
Delegates decide
and pay to attend
(Marketing)
Corporate
Smaller luxury
hotels
HQ/Branch locations
Corporate
Customers and
Clients
VP of Sales
Corporate
Meeting planner,
VP of Sales
Corporate
Company decides
and pays
Incentive
Emerging
destinations
Luxury oriented
Sizzle
Incentive
Clients and
employees,
purchasing,
VP of sales,
program objectives
Incentive
Third party
(incentive house
companies)
Incentive
Winners attend
Decision Makers
Attendance
Content:
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Anatomy of Associations
Conventions vs. Other Markets
Convention Market Profile
Trends and Business Drivers
Marketing to Associations
Tracking the Industry
International Convention & Congress Association
Meetings must
 have 50 participants minimum
 be organised on regular basis
 move between at least 3 countries
Union of International Associations (UIA)
Meetings must
 have 300 participants minimum
 40 % foreigners
 Nationalities: 5
 Minimum duration: 3 days
ICCA & UIA statistics do not reflect the whole market
Exclude national meetings (tremendous impact on overnights)
Exclude all international meetings not qualified
Exclude the corporate market (meetings, incentives, product launches)
Where Associations are Based
International Association HQs
Source: ICCA Statistics 2010
Where Conventions Meet
Convention Rotation Patterns - 2013
3.3%
Worldwide
5.8%
Europe
Asia/Pacific
45.2%
30.3%
Latin America
Asia
Europe/North America
Interamerican
Nordic Countries
Ibero-America
Source: ICCA Statistics 2013
Size of Conventions
Number of Delegates at Conventions 2008 - 12
12.10% 5.10%
3.00%
Under 250
250 - 499
56.30%
500 - 999
1,000 - 1,999
23.50%
Over 2,000
79.8% have attendance of 500 or less
Source: ICCA Statistics 2013
When Conventions Meet
Source: ICCA Statistics 2013
How Frequently Conventions are
Held
3.1%
10.6%
2.0%
4.7%
Annual
Biennial
22.0%
57.6%
Triennial
Every 4 years
Biannual
Other
Source: ICCA Statistics 2013
Convention Venue Preference
Conventions Held in 2008 - 12
9.20%
22.40%
44.20%
Hotels
Convention Centres
24.30%
University
Other
Source: ICCA Statistics 2013
How Far in Advance Conventions
Decide on Destinations
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Medium to Long term planning
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National: 1 – 2 years
Regional: 2 – 4 years
Global:
4 – 7 years
Key Issues
 Longer term focus
 Understanding the difference between business
occurring and future business booked
Relates to
investment and
effort over the
past 5 years
2010
2011
2012
Future business booked in 2015
and when it will occur
2013
Business Occurring in 2015
and when it was booked
2014
2015
2016
2017
2018
2019
2020
Relates to 2015
investment and
effort
Content:
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5.
Anatomy of Associations
Conventions vs. Other Markets
Convention Market Profile
Trends and Business Drivers
Marketing to Associations
Examples of Key Association Trends
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Generation change
Globalization / Emerging markets
Event rotation
Extended reach of events
Risk adversity
Safety
Social media
CSR / legacy
Increasingly crowded market
Emphasis on outcomes, not destinations
Examples of Key Association Drivers
 Financial Outcomes
o Costs / Revenues / Subvention
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ROI
Transparency
Professional management
Partnerships
Convenience
They Often Want to Work Through CVBs
 Client Expectations
 One stop shop
 Impartial advice
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Destination Information and Support
Coordinating Bids
Liaison with Government / Airlines
Non-Commercial / Independent / Unbiased
Destination Selection - Associations
 Step 1: Qualification (Information)
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Adequate air access?
Adequate congress facility?
Adequate hotel package?
Adequate service?
 Step 2: Short listing – (Processing)
 Step 3: Differentiation – (Being sold)
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Price/value
Will the meeting achieve its goals?
Will my delegates want to go there?
Qualitative issues
“Hygene
Factors”
Competitive Factors
Strengths and weaknesses analysis of your destination and of the competing
destinations.
Bidding
• CB experience
• Professional network
• Unified sales approach
• Subvention
• Business image
Economic
• Demand base
• Supply base
• Corporate base
• Innovation
• Population
• Economy
• GDP
Staging
• Location
• Air access
• Air convenience
• Customs & Immigration
• Distance from airport
• Logistics
• Hotel stock
• Facility package
• Meeting space
• Plenary seats
• Exhibition space
• PCOs & DMCs
• Exhibition service support
• Association member interest
• Exhibitor interest
• Incentive participant interest
• Value
Source: GainingEdge City Competitiveness Scoring System
Destination
• New to rotation
• Industry experience
• Destination appeal
• Service standards
• Skilled labour
• Safety & security
• National capital
• Entertainment
• Food
• Shopping
• Resorts
Key Destination Issues
 Local Experience and expertise
 Local support i.e. Government & industry
 Cost / Subvention
 Strength of local industry / host organisation
 Affordability
 Safety and security
 Compatibility with Organisational goals
Examples:
- New membership potential
- Research in developing countries
- Financial results
 Destination appeal for delegates (less important than it
used to be)
Other Factors
 Universities and scientific institutions
 Local expertise in area of interest
 International headquarters and corporations
 Sponsor support
 Competitive prices
 Efficient Convention Bureau
 Professional service structure (well coordinated supply)
 Political fit or advantage
 Promoting a cause
 Avoiding places that conflict with cause
Content:
1.
2.
3.
4.
5.
Anatomy of Associations
Conventions vs. Other Markets
Convention Market Profile
Trends and Business Drivers
Marketing to Associations
Marketing to Associations
Research
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ICCA (International Congress and Convention
Association)
UIA (Union of International Associations)
ESAE (European Society of Association Executives)
IAPCO (International Association of Professional
Conference Organisers)
Marketing to Associations
Leads Development
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Identify key industry strengths within city / country /
region
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Indentify major R & D facilities i.e. research
institutes, universities
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Key government priorities for development and
growth
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Find matching international association
Marketing to Associations
Bid Development
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Obtain bid criteria
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Match against destinations credentials
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Prepare and implement bid strategy
Marketing to Associations
Sales Development
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Trade shows
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Europe – EIBTM, IMEX
North America – ASAE, PCMA, IMEX America, AIBTM
Asia – AIME, IT & CMA, GIBTM
Conference – ICCA, DMAI, MPI, UIA
Sales calls
Site inspections
Thank You