16 Oct The Value of a Budget Spent on an Event
Conferences, exhibitions, corporate events, incentive meetings, gala dinners, teambuilding… All these events are part of a global strategy that your company may implement in order to increase its return on investment, to find new clients or to strengthen ties between employees. But when it comes to organizing an event, the budget allowed by the financial department might not reach the marketing department’s expectations. Too expensive, too fancy… Thus, how can you demonstrate the value for a budget spent on an event, in order to justify its importance?
FROM PRODUCT/SERVICE TO BRAND
Until the 1980s, marketing was mainly focusing on the products or the services a company could provide. The subtle balance between supply and demand could work, as the population’s average purchasing power was high enough to assure a strong economic growth.
At the beginning of the 1980s, as growth rates started to stagnate, unemployment and inflation rates started to increase, as well as the important competition from new countries. Supply was completely exceeding the demand. In order to keep clients and gain new ones, marketers decided to explore the importance of brand equity.
FINANCIAL AND CONSUMER-BASED BRAND EQUITY
Indeed, if clients are given the choice to select between similar products or services, with the same features, but from different brands, they will be more likely to go for the one they know and trust the most. Other variables, such as brand image, logos, ads…may influence their choice.
Thus, when your company participates to an exhibition, it should mainly focus on improving customer experience and building a strong and lasting brand image. It should definitely allocate an appropriate budget in order to implement this strategy of customer’s engagement.
This strong brand value will have a positive impact on your sales. The more clients trust your brand, your company and its ethical values, the more they will positively talk about and favor your brand in the future. This is an important argument in case you plan to raise funds in order to develop your firm. Investors, much like consumers, will evaluate the brand equity as much as your products/services’ quality.
A strong brand is a brand that develops an added value to a product/service in your clients’ mind, as well as a financial value for your investors. This is the first way to demonstrate the value of a budget spent on an event.
EMPLOYEE-BASED BRAND EQUITY
Last but not least, you should take into account the importance of your brand’s value to your staff. Indeed, the persons that are the most likely to talk positively (or negatively) about a company are the staff members. As well as consumers may identify themselves to a brand, employees will identify themselves to their company, agree/disagree with its values, be proud of being part of its development.
Managing takes here on its full meaning: be sure that employees feel comfortable, confident and engaged toward your company. Otherwise, they might become indifferent or even mistrustful and influence relatives and friends, affecting your brand image and your sales in the end.
An important budget allocated to strategic corporate events might help to reinforce your staff’s engagement. Teambuilding, through various activities, gala dinners or incentive travels, may definitely strengthen employees’ ties. The collective emotion created during these events favors the brand’s attachment: staff members are boosted and become more productive.
Thus, you understand why organizing events is not only a matter of budget. This budget has a very important value, as it will create positive internal and external engagement to your brand, directly affecting your production and your sales.