Discovering Marketing Essentials (DME)

Assignment Topic MY EVENT PRO

Student Name H.K.C. Lakmini
Reg. No. 0000026410

December 2019 Examination

Postgraduate Diploma in Marketing

Sri Lanka Institute of Marketing

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 Assignment Marking
Scheme December
2019

Subject Discovering Marketing Essentials (DME)

Student Registration 0000026410

Number

Marks
Criteria Awarded
Allocated
Aligning to the purpose of the assignment 20
Some of the answer addresses to the purpose of the 1-5
question
This has addressed the purpose of the assignment 6-10
Has addressed the purpose of the assignment coherently 11-15
This has addressed the purpose of assignment 16-20
comprehensively
Clarity of expression 20
An attempt to organize in a logical manner 1-5
Satisfactory showing of logical manner and organization 6-10
Shows higher level of Carefully and logically organized 11-15
Shows coherent structure with clearly expressed ideas 16-20
Using examples/evidences 20
Shows a little use of examples 1-5
Some use of examples. Some evaluation attempted 6-10
Some use of examples. Well evaluated 11-15
Shows appropriate examples are fully and reliably 16-20
evaluated
Critical analysis of concepts, theories, conclusions 20
Demonstrates limited evidence of critical analysis 1-5
Demonstrates some critical analysis of relevant theory 6-10
Demonstrates application of theory through critical analysis 11-15
Demonstrates application of critical analysis well integrated 16-20
Following assignment guidelines 20
Limited follow-up of assignment guidelines 1-5
Some level of follow-up of assignment guidelines 6-10
Good display of adherence to assignment guidelines 11-15
Excellent adherence to assignment guidelines 16-20

Total
100
Special Remarks

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Signature of the Examiner

MY EVENT PRO
“Event Pro” (Hereafter known as EP) is an industry leading event management company
which has operated in the market since 2010. The top management consists of with three (03)
board directors and the business started with capital investment of 10 million in 2010.
As an event management company, EP specializes as a fully integrated event management
company which caters to both business and the consumer market segments.
Business Events of EP

• Exhibitions Related to Specific Trades

• Product & Corporate Launches
• Press Briefings and Media Conferences
• Sales Promotions Projects
• Commercial Sports Events
• Roadshows
• Supermarket Promotions
• School Events and Competitions

Other Client Specific Events Consumer Market Events of EP

• Wedding events
• Birthday Parties
• Family Gatherings or any Anniversary Celebrations
• Kids Parties
• Other Client Specific Events

EP operates with a well-established supply chain of service providers and the operation is
managed internally with 12 Managers and 65 operational level staff members. Current
annual income of the company is 175 million as at 31st March 2019. EP’s financial objective
for the years 2019 - 20 is to reach 250 million and to capture 40% (increasing of 10%
growth) in the market share.
Most of the industries including event and exhibitions sector were highly affected with the
21/4 terrorist attack by the international Islamic terrorist organization (ISIS) in 8 locations in
the country. This resulted in the immediate cancellation of most of the local and international
events that were on the roadmap due to the security threat. This situation also negatively
affected EP as a company leaving the corporate targets/objectives and business plan in
danger to continue the business.
The management of EP decided to consult a professional organization in marketing and
business consultancy to design a contingency plan to overcome the situation.

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 Assumption: Your company Glocal Marketing Research and Consultancy (Hereafter known
as GMRC) was selected by EP for consultation and to design a future plan for the business.
You are expected to start the plan with the given inputs and provide an initial idea to EP on
the following aspects.
TASK ONE
a) Critically analyze the Marketing Environment framework (Marketing Audit) covering
internal and external micro and macro environment of Event Pro (EP).

b) Based on the marketing audit identify company’s Strengths and Weaknesses and
industry related Opportunities and Threats which is influencing the business.

c) Select minimum three (03) marketing environment factors from each Micro and
Macro environment and describe in detail.

TASK TWO
Due to the present condition, Event Pro (EP) decided to focus mainly on the Business
customers (B2B). Develop a two-page report covering with the business buying patterns
including Business Buying Process and other relevant theoretical model that relevant to the
given case.
Your report on this task study must cover following:
 Factors influencing B2B buying

 B2B Buying Process

 B2B decision making unit

TASK THREE
Explain the importance of relationship marketing and discuss five (05) benefits of
relationship marketing to Event Pro (EP) in the context of B2B.

IMPORTANT:

Please refrain from copying-and-pasting information from the Internet or another source and
make sure to reference your work according to the Harvard referencing format.

Word allocation for each task

Task Content Weightage
Task one 40%
Task two 30%
Task three 30%
Total ( word count 1000 – 1500) 100%

Note: Please refer the given assignment marking scheme for marks allocation.

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Table of Content

Executive Summary...................................................................................................................7

01. Task One - Analysis of Marketing Environment framework...............................................8

01.1 Marketing environmental analysis.................................................................................8

01.2 SWOT Analysis............................................................................................................10

01.3 Marketing environment factors....................................................................................11

01.3.1 Macro environmental factors.................................................................................11

01.3.2 Micro environmental factors..................................................................................12

02. Task Two – Report on Business customers.......................................................................13

02.1 Factors Influencing Buyer Behavior............................................................................13

02.2 Buying Decision Making Process................................................................................13

02.3 B2B decision making unit.............................................................................................14

03. Task Three - Importance of Relationship Marketing.........................................................15

04. References..........................................................................................................................16

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Executive Summary

This study has been carried out three tasks. The first task is to critically analyze the
Marketing Environment framework (Marketing Audit) covering internal and external micro
and macro environment of Event Pro (EP). Thereafter, based on the marketing audit
company’s Strengths and Weaknesses and industry related Opportunities and Threats which
is influencing the business have been analysed. Finally, marketing environment factors from
each Micro and Macro environment have been described in detail.

The second task consists of three parts namely Factors influencing B2B buying, B2B Buying
Process and B2B decision making unit

Finaly, task three explain the importance of relationship marketing and discuss five benefits
of relationship marketing to Event Pro (EP) in the context of B2B.

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01. Task One - Analysis of Marketing Environment framework

01.1 Marketing environmental analysis

Macro environment are the larger societal forces that affect the micro environment.

Factors Description Impact

Level
Political After the Easter attack on 21st April 2019, After the High
Easter attack, Sri Lankan current government is not
now in a stable phenomenon.
The government revised the Tax policy in 2018 to High
increase direct tax. Now it has become a very
complicated tax policy for businessman.
Economic After the Easter attack, the economic growth rate in High
2019 has been forecasted as 2%.
After the Easter attack, Interest rates on loans have High
been reduced.
Per capita Income is USD 4,065.22. This will High
encourage customers to spend on other activities.
The attack has badly hurt Sri Lanka’s tourism sector. High
It was estimated to earn USD 5 Bn. But now it would
be below USD 2 Bn.
Social & Cultural A positive attitude towards products and services is High
changing to value for money
Currently, there are 6.8 Mn Facebook user in Sri High
Lanka and most of them are actively participate and
engage in Facebook pages.
Eastern cultures are westernizing High
Elder population is increasing High
Technology Currently most of companies are systematic using High
advance technology and try to offer their service to

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 customers in an innovative way.
Environmental Due to pollution and depleting fossil fuels consumers High
are demanding ecofriendly technologies
Legal Securing Intellectual property right to all new High
Inventions/Trademarks.

Micro factors are the actors close to the company that affect its ability to serve its customers.

Impact
Treat of new entrance High
Initial Capital investment is significantly low High

Need for skilled human resources High

Bargaining Power of Customers High
Customer bargaining power for a better price High
The switching costs of the customers are very low High
Customers can easily compare service and the products High
Bargaining Power of Suppliers Medium
Ability to bargain for better price due to the higher order volume Medium
The switching costs are very low Low
Threat of substitutes High
The switching costs are low High
Large number of service providers High
Technological innovation High
Rivalry High
Strong and experienced service providers and their financial strength in the High
market

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01.2 SWOT Analysis
Strengths Weaknesses

1. More than 10 years’ experience in the 1. Only one production house

market
2. Higher Employee Turnover
2. Engage with well-established supply
3. Higher operating cost
chain of service providers

4. Brand establishment is low

3. Experienced, creativity and dedicated
management

4. Strong financial position

5. Strong Brand establishment

Opportunities Threats

1. Expanding new markets internationally 1. Threats of imitators

and locally for marketing services.
2. Threats of New entrance
2. New technologies always come
3. Unknown brand among other clients
3. Increasing demand for digital marketing
4. Many players in the industry
and event management activities

5. Fear from Bombs

4. Emerging online marketing business

6. Blocking social media by the government

5. University students are allowed to work
due to ethnic outrage.
as a part of their educational program.

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01.3 Marketing environment factors

01.3.1 Macro environmental factors

 Economic Factor

Bomb blasts and terrorist attacks have an obvious effect on the tourism industry of Sri Lanka.
In 2009, the number of tourists visiting Sri Lanka was less than half a million. However, in
2018, the same number had climbed to over two million and as a result, many events were
organized to attract more tourists. However, with the bomb blast, several economic activities
including Tourism have showed a dropped due to the lower number of tourists.

 Social and Cultural Factor

Events are highly connected with the respective culture as Sri Lanka is a multi-cultural
country. Therefore, there is high demand for customized services. Also, peoples’ life style
has enhanced through increasing salaries. With the busy lifestyle, everyone is looking for
options to outsource the event rather than doing by themselves. In addition to that, currently
social media in Sri Lanka has been very powerful tool. As a result, during the Easter attack,
social media was blocked by the government to prevent the spread of misinformation.

 Technological Factor

When it comes to the event management business, websites and social media appearance is
the most reachable and convenience way to reach our customers. There will be many
customers who are looking for event management information from internet. “Event Pro’ has
created the web page and social media accounts to expose the details of the business such as
the service it offers, special features, testimonials, contact information, locations, etc. The
contact information also will be given in globalize internet platforms such as whatsapp, skype
and viber. Upgrading these internet appearances with latest technology and keep the webpage
information up to date will be helpful to provide excellent service to the customers.

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01.3.2 Micro environmental factors

 Competitive Revelry

Industry competition is one thing which Event Pro cannot hide from. When it comes to the
event planning in Sri Lanka, there are few key players already well established in the
industry. “Vibes Events”, “3N Events” are some of these key players.

These players have a good reputation in the industry and they have a good customer base.
Also, these are well experienced because they have been in the industry for quite some time.
Hence, they have a good past record as well.

 Threat of Substitute

Event planner business have a unique and limited set of substitutes. Mainly its hotel and
banquet hall facilities, people who plan event by their own and person who designated to
arrange the event in some organization.

Hotel and banquet hall facilities – Key strength for this substitute is they have a number of
support staff in the venue. And also, they have all the facilities and other equipment’s on the
event venue. But the weakness is these support staff is not a well skilled labour. And also, if
the hotel has many occasions on the same day there will be less focus. Generally, these
services are very expensive.

 Threat of New Entrants

The threat of new entrants is really high in the event management business. It’s because the
initial capital is low and less barriers to enter into the market. Also, new entrants can start the
business even with few products and services. In addition, there are several private
institutions in Sri Lanka which release many professionals yearly to the industry.
Accordingly, there would be high bargaining power due to attractiveness to the industry is
very high as explained.

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02. Task Two – Report on Business customers
02.1 Factors Influencing Buyer Behavior

The below underlined factors pertaining to the tendencies, attitude and priorities of people
must be given due to importance to have a fairly good understanding of the purchasing
patterns of Event Pro’s B2B consumers.

 Marketing Stimuli

The Marketing campaigns done on regular basis can influence the consumer purchasing
decision.

Eg. Facebook page of Event Pro has highly supported to create brand popularity in the
industry.

 Psychological Factors

There are four major psychological factors that affect the purchasing behavior of consumers
namely perception, motivation, learning, beliefs and attitudes. Event Pro can change
psychological factors of customers with special campaigns in this regard.

 Personal Factors

Personal factors may also affect consumer behavior. Some of the important factors that
influence personal buying behavior are economic status, occupation, personality and self-
esteem.

Eg. MAS, Brandix, Dialog etc tend to deal with reputed parties to maintain their social status
of the organizational culture.

02.2 Buying Decision Making Process

Generally, a B2B customer walks through the following process when he makes a purchasing
decision.

1. Problem Recognition

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Customers feel that they should fulfill a need, which is created internally or externally.

Organizing an event requires a wide range of expertise. Hiring a large enough staff to cover
all bases is not often feasible, and it is expensive even when it is. Those customers believe
that outsourcing can save money in salaries and overhead, also the outsourcing partner can
also save a company money in direct purchases on marketing programs as well.

2. Information Search

When a consumer’s interest is aroused by stimuli, they normally try to look for information.
Two levels of interest can be identified namely Heightened attention and Active information
search.

3. Evaluation of Information

During this stage consumer usually compare services based on their various features and
benefits using the information from the previous stage such as Experience in the industry,
Nature of Clients, Reliability and Quality of Service, Timely Services and Use of latest
technology etc.

4. Purchase Decision

Characteristics of the consumer, the circumstances of the decision and social context all play
a part in the decision-making process. Everyday purchases do not require such a formal
process. However, services like event management will be selected after long process.

5. Post Purchase Evaluation

At this stage the Company must make sure that the customer should not reach disappointment
and should be either satisfied, of delighted. An after-sale survey could help to retrieve this
information.

02.3 B2B decision making unit

B2B customers consider more information before selecting a service provider. B2B decision
making unit is more complex than B2C where the decision to choose an event management

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service is generally made by one or two people, the decision to get a service on behalf of the
business commonly involves several decision makers, each with a different area of expertise.

03. Task Three - Importance of Relationship Marketing

Acquiring new customers can be challenging and costly. Relationship marketing helps retain
customers over the long term, which results in customer loyalty rather than customers
purchase once or infrequently.

Relationship marketing is important for its ability to stay in close contact with customers. By
understanding how customers use a brand’s products and services and observing additional
unmet needs, Event Pro can create new features and offerings to meet those needs, further
strengthening the relationship.

Some of the benefits of relationship marketing include:

 Loyal customers will help to expand the business by recommending Event Pro’s
service to friends and family.
 Loyal customers are more willing to try the new products and services, because they
will trust Event Pro.
 Loyal customers are more likely to accept price increases because they are loyal to
Event Pro and trust its products and services.
 Loyal customers are more likely to provide feedback which enables Event Pro to
improve its product and services. They can even support innovation by identifying
gaps in the market and suggesting ideas for the business.
 Loyal customers will usually continue to provide Event Pro with custom after there is
a lapse in the customer service.

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04. References

Bartels, R. and Jenkins, R. (1977) ‘Macro marketing’, Journal of Marketing 41 (October):17–

20.

Hooley et al (2008), Marketing strategy and competitive positioning. 4th ed. Harlow,
England: Prentice Hall Financial Times, pp.361, 365.

Kotler P and Keller., Principles of Marketing, 11th ed. (New Delhi: Prentice-Hall, 2006),
Liyanage U., Profiling the Sri Lankan Consumer Multiple Portraits and Manifest Patterns,
2nd ed. (Colombo: Postgraduate Institute of Management, University of Sri
Jayewardenepura, December, 2005), pp.1-9.

Learn Marketing (2019), Benefits of Relationship Marketing. [Online]. Available from:

https://www.learnmarketing.net/benefitsofrelationshipsmarketing.htm (Accessed on
01.11.2019)

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