Corporate Responsibility

There are many companies who are recognized for what they “Give Back”.  Forbes just published an article regarding the top companies who “give back” (Forbes- Oct 19).  What was interesting is they based this list on the amount of money each company gave in “Charitable contributions” and what percentage these donations were to pre-tax profits.  The top 10 on this list were Alcoa ($36.6m / 6.7% ), Merck ($72.6m / 4.4%), General Mills ($88.7m / 4%), Kroger ($69.7m / 4%), Xerox ($27m / 3.3%), Target ($126m / 3.3%), Goldman Sachs ($337m / 2.6%), Safeway ($21.6m / 2.5%), NW Mutual ($17m / 2.4%), and Starbucks ($30.5m / 2.12%).  It is impressive to see companies giving so much back. 

However, there is so much more to Corporate Responsibility than simply making charitable donations based on profits.  Of more importance is what a company does to truly benefit the communities and people as a whole.  This includes employees, the environment, citizens, and more.  Corporate Responsibility is defined in BusinessDictionary.com as “A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on the employed resources.” 

(http://www.businessdictionary.com/definition/corporate-social-responsibility.html).

On Wednesday November 14, Bloomberg Business Week reported Cisco Systems announced its 2012 Annual Corporate Responsibility Report.  The Report outlines what Cisco believes to be the core components of its Responsibility to the company and community: governance and ethics, supply chain, employees, society, and environment.  Cisco publishes this report “to illustrate the company's broad reach and innovative solutions designed to help Cisco, its customers, and its partners address social issues and promote environmental sustainability.”   Though some may see these reports as simply a marketing and public relations tool (which it is to some degree), it is refreshing to see companies make such a statement in regards to their conscious decision to ensure their organization benefits more than just shareholders. 

Topics addressed in this report include human rights (global), efforts to lead in ethics and employee compliance to ethics policies, privacy policies, global transparency, labor practices, women’s issues (Cisco launched the Women in Technology Conference), commitment to diversity, corporate and foundation cash and in-kind contributions worldwide, employee volunteers to various non-profit organizations, education programs, efforts to reduce GHG emissions, and more.  It shows a true commitment by an organization to give back to the community, environment, and employees, and work to use company resources to make a difference through a positive impact on the world in which we all live.

What makes a company truly great is the ability of the company to better the world in which we live.  Successful companies are in a position to have an amazing, positive impact on the world and all of the people who reside on this planet.  From working to ensure fair global labor practices, protecting the rights of minorities and women, and championing human rights to protecting the environment; companies have the resources to truly make a difference. 

Even small companies have the ability to present a positive impact on their communities. This could be something as small as ensuring recycling programs are in place to adopting training programs to educate employees on sexual harassment, discrimination, and tolerance, creating training and development plans to assist employees in advancing careers, providing balanced and fair employment practices and work expectations, and ensuring community outreach.  It is the job of company leadership to address these issues and ensure companies position resources, including human capital, to address these issues.

In my current company, we have numerous programs designed to assist the employee, and by definition of what we are (convention center), our mandate is to support the community, boost the economy, have an economic impact on the community, and present programs that better the world in which we live.  From recycling programs and blood drives to habitat for humanity volunteer days and food drives, our operation truly focuses on what we can do to better the world we all live in.   

For more information on Corporate Responsibility, visit Corporate Responsibility Magazine online at http://www.thecro.com. 

Sources:

Bloomberg BusinessWeek: Cisco Issues 2012 Corporate Social Responsibility Report.  SAN JOSE, CA -- (Marketwire) -- 11/14/12.  Accessed 11/16/12. Link: http://buswk.co/TJME6E

BusinessDictionary.com: Accessed 11/17/2012:  Link: http://www.businessdictionary.com/definition/corporate-social-responsibility.html

RADIO RADIO

I am noticing a number of friends and acquaintances in music posting comments on Facebook, Twitter, and other social media regarding Pandora’s efforts to push through the Internet Radio Fairness Act, and it is interesting to read.  I get it.  I get the argument and why artists are concerned.  But I am also not bought in to the artist’ reasoning and believe the fear of “lower royalties” from one industry segment is blocking people from seeing the forest through the trees.

The situation: Pandora Radio (NYSE: P. www.pandora.com) is trying to mobilize its more than 150 million listeners behind the Internet Radio Fairness Act, a bill that would lower the royalty fees paid by online radio stations for playing a song.  On the other side of the issue are record labels and artists, who believe that the existing rates are fair and accuse Pandora and others of wanting to deprive copyright holders of the income they deserve.

The problem is royalties from satellite/cable and internet mediums vary to such a degree, they are unfair.  The worlds of satellite/cable and internet radio continue to converge, resulting in an unbalanced competitive environment where one entity faces licensing and royalty expenses of less than 10% of revenues while another faces costs close to 50% for the same product.

Last year, Pandora paid about half its revenue to labels and performers. Sirius’s current rate is 8 percent. (Both kinds of services also pay separate royalties to songwriters and publishers.) 

• Total Revenue - 2011

• Sirius XM Radio (SIRI) Annual Revenues 2011: $3.01B

• Pandora Media Inc Annual Revenues 2011: $137.76M

• Percentages of Revenues Paid in Music Royalties: 

• Sirius XM Radio (SIRI): Approximately 8% (estimated $248m)

• Pandora Media Inc.: Approximately 49% ($69.5m)

• Productivity of Businesses:

• SiriusXM Net Profit/Loss: $426.9M

• Pandora Net Profit/Loss:  $(1.76M)

• Total Royalties Earned: $317.5M

(source: MarketWatch / published 2011 corporate financial statements)

Pandora is championing the Internet Radio Fairness Act (introduced in the House by Jason Chaffetz, Republican of Utah, and Jared Polis, Democrat of Colorado) which proposes to put online radio under the 801(b) standard of the Copyright Act, which is the same standard used by the Copyright Royalty Board when setting royalty rates for cable and satellite radio. Pandora argues that this would stop discrimination against Internet radio services.  Much to the dismay of my fellow musicians, I agree… sort of.

Let me explain:

The industry of music has moved from terrestrial radio to satellite radio and Internet streaming.  The majority of music is now published, promoted, sold and traded online and in space.  The organizations that compete in this field bring options to artists.  Business Management 101: the more entities competing in a free market to distribute goods and services, the better the environment for the producer of these goods and services.  Business can’t continue to compete in an environment that does not present a level playing field. 

As a former professional musician (ok… a drummer, but I used to hang out with musicians), I can look at this from the artist’s perspective and agree all artists should be paid their value for their creative work.  I will NEVER disagree with this position, and will fight to support royalty payments to artists across the board.  But as an executive in business, I also understand the perspective of Pandora and believe something has to be done to level the playing field as these markets (as well as future markets to arise through advances in technology) continue to converge.  In addition, a competitive landscape of promotional and publishing vehicles benefits the artists through more choices and resulting leverage throughout the negotiating and contracting process. 

So how do we ensure we manage a level playing field AND protect the artist’s pay for works created?  Put internet radio under the 801(b) standard of the Copyright Act so the playing field is fair, and ensure this standard is based upon a flat standard % of revenues (company makes more with your music, they pay more for your music) as well as the contribution this music has to the overall revenues generated.  This is, to the basic degree, what the IRFA is trying to do.  But I would go a step further.  RAISE THE OVERALL RATE established under the 801(b) standard! 

What is SiriusXM doing paying artists only 8% of revenues while making a profit of almost $427 Million dollars?  I would ensure the “fair rate” established is raised from the current status in addition to lowering the rates paid by companies such as Pandora.  Looking at the financials from both SirusXM and Pandora for 2011, look at the impact such a move would have on the industry overall: 

Total Revenue - 2011

Sirius XM Radio (SIRI) Annual Revenues 2011: $3.01B

Pandora Media Inc Annual Revenues 2011: $137.76M

Percentages of Revenues Paid in Music Royalties: 

Sirius XM Radio (SIRI): 25% = $775m (increase of 348.1M)

Pandora Media Inc.: 25% = $34.44m (decrease of 35.1m)

Productivity of Businesses ADJUSTED:

SiriusXM Net Profit/Loss: $78.8M

Pandora Net Profit/Loss:  $36.8M

Total Royalties Earned: $809.4M… increase of almost $492M in royalties to artists.

Do the math! 

Though passing IRFA could include lowering rates paid by Pandora and the internet community, it could raise the rates paid by Satellite and Cable companies.  By keeping the markets fair, they become more competitive.  It also potentially reduces financial hurdles to the development of new markets based on expanding technology (such as internet radio), reduces barriers to entry for new businesses, and allows expansion of the industry as a whole.

The IRFA legislation expands 801(b), and includes the creation of a panel of judges whose primary function is to consider evidence both on the value of the music and on the effect the royalty rate would have on the industry over all. To ensure the artists receive fair market value for their work, have artists represented on the panel of federal judges that will establish royalty rates so the artists have a voice.   

As a result, you have a fair and balanced competitive landscape fostering growth and expansion of the industry and an industry paying fair market value for products ensuring artists are justly compensated for their work.  In negotiating terms, this is a win-win. 

Now obviously the satellite and cable industry will argue their costs of infrastructure and operations are considerably higher than Pandora.  But the facts are SiriusXM made over $400M in profits in 2011.  They can afford an increase in royalties (and the artists deserve this).  They can’t pass this directly to the consumer because the consumer has options through companies like Pandora.  (Just yesterday, I streamed Pandora through my iPHone while in my truck, listening to Pandora on my truck radio in place of XM.  I can promise you if XM raised my rate, I would simply cancel and utilize services available to me such as Pandora over my phone!)

Actually, the profitability concerns of Sirius or Pandora is of no concern to me, other my desire to see a healthy, competitive environment so artists grow options and receive true value for goods and services produced.  My support of this bill is for the betterment of the artists in the long-run; not the corporate health of the individual players in the industry. 

Pandora did not make a profit because they are not effectively managing their business.   It is an issue with their business model… not the royalties.  If I were the CEO of Pandora, I would be working to push through the internet radio fairness act to level the playing field, but at the same time, would be reviewing my entire business model to ensure efficiency and productivity and possibly firing my VP of Sales and Marketing for a lack-luster performance in generating revenues needed to support the business in the field we compete in.

The Internet Radio Fairness Act will not bring Pandora a long-term, sustainable, competitive advantage in the market served.  A productive, efficient and effective business model, creative products, efficient operations, effective marketing, and high sales performance are the key to success in a free market.

But unfair business practices and an uneven playing field can ensure these keys are not achieved… not just for Pandora, but all other organizations striving to compete in this industry, which will hurt the artist and industry in the long-run.

IRFA can actually be a good piece of legislation… not just for Pandora, but for all artists, listeners, and the industry as a whole.  As long as it is fairly administered with the artist having a voice, it is a win-win.

Some of my friends sit around every evening

And they worry about the times ahead

But everybody else is overwhelmed by indifference

And the promise of an early bed

You either shut up or get cut up, they don't wanna hear about it

It's only inches on the reel-to-reel

And the radio is in the hands of such a lot of fools

Tryin' to anaesthetise the way that you feel 

Elvis Costello – Radio Radio

Sources:

New Your Times: http://www.nytimes.com/2012/09/24/business/media/proposed-bill-could-change-royalty-rates-for-internet-radio.html?_r=0

Wall Street Journal: http://online.wsj.com/article/PR-CO-20120921-906857.html?mod=crnews

MarketWatch: http://www.marketwatch.com/

The Hill: http://thehill.com/blogs/hillicon-valley/technology/258881-pandora-aims-for-sopa-repeat-in-battle-over-online-music-royalties 

LA Times: http://www.latimes.com/entertainment/music/posts/la-et-ms-house-bill-pandora-internet-radio-fees-20120921,0,3290862.story

Digital Trends: http://www.digitaltrends.com/music/is-internet-radio-about-to-get-rocked/

2011 Corporate Annual Report – SiriusXM: http://files.shareholder.com/downloads/SIRI/2102812002x0x559248/2AED8B19-6E00-43EA-B61E-A42B2C473CC2/Sirius_XM_AR.pdf

2011 Corporate Annual Report – Pandora Radio: http://investor.pandora.com/phoenix.zhtml?c=227956&p=proxy

Times are a changin’...

Times are a changin’...

Well, the news of the move of IDCE to the Morial Convention Center in New Orleans is taking the Trade Show and Convention industry by storm.  This move marks the first time a Tier-1 Convention Center in the United States has undertaken such a bold move.  The reaction from the industry has been interesting (to say the least).   A BOLD move!  Others have referred to this deal as “Risky”… “Crazy”…  “Questionable”.  I, however, like to better characterize it as “Exciting”…  “Adventurous”… and my favorite… “Self Determining”! 

If you have not heard, the New Orleans Ernest N. Morial Convention Center has purchased the International Disaster Conference and Expo (IDCE) from Atlanta-based Imago Productions, Inc.   The two parties began working on IDCE in a first-of-its-kind joint venture in 2010.  To understand this move, you have to understand the background of IDCE.

After Imago Productions attempted to launch the National Disaster Reconstruction Expo in 2009, New Orleans witnessed the strengths of the idea as well as the weaknesses of execution in this event.  The producers were simply not in a position to bring much needed senior level government participation to this event.  Given the relationships of the facility to State Government in Louisiana and additional resources available through the convention center, the facility offered a partnership with the producers on the event.   It made sense:  The facility would bring in resources the producers didn’t have, such as government relationships and in-house services (a/v , f&b, security, additional staff).  The producers would bring in the show management expertise and personnel needed to launch and manage the event… sales, marketing, conference operations, exposition operations, vendor procurement, housing and logistics. 

The marriage of these two teams resulted in an amazing, successful launch of what is quickly becoming the premier event uniting the disciplines of Homeland Security, Emergency Management, first response, resiliency, business continuity, loss mitigation, and all silos related to disaster preparation, response, recovery, and mitigation.   The initial launch netted over 1700 attendees representing public and private sector leadership from 27 different countries, and over 170 exhibitors.  The follow-up event, scheduled for January 2013, is expecting to draw close to 5,000 international attendees and 250 exhibiting companies.  The growth projections for this event are staggering.

The relationship of the State of Louisiana to IDCE resulted in the ability of the event to secure leadership that is second to none.  IDCE is led by an Event Executive Committee consisting of 16 individuals representing Federal, State, and Municipal Government, industry associations, academia, and private sector service providers.  Leadership includes the Honorable Tom Ridge, the creator of the Department of Homeland Security and former Governor of Pennsylvania and co-chair of IDCE2013.  Also sitting on the Event Executive Committee is Director of Emergency Services for Wal-Mart, Mark Cooper (who is also a member of the FEMA National Advisory Council); Ky Luu, former director of USAid’s Office of Foreign Disaster Assistance; Joey Booth, Executive Director of the LSU Stephenson Disaster Management Institute; Kevin Davis and Pat Santos of the Governor’s Office of Homeland Security and Emergency Preparedness for the State of Louisiana; Tres Hurst from Cotton Global Disaster Solutions…  the list just continues to impress.  These relationships and leadership contributions have been a direct result of the involvement of the Convention Center in IDCE. Simply put, the involvement of the Convention Center IS the reason IDCE is becoming so successful.    

What was realized through the launch and growth of IDCE is that the Convention Center had resources reaching far beyond the scope of facility space rentals and minimal ancillary services.   What was also recognized through this experiment of a marriage between a convention center and show production team was the ability of a facility to become much more self-reliant in regards to business opportunities.  Producing events “in-house” would give a facility the ability to create business where none existed.  The facility would be able to target slow dates, create events, fill holes, and generate a new revenue stream in the process, while staying true to the goals and objectives of the facility… to bring visitors to the city of New Orleans and State of Louisiana, presenting a positive economic impact on the city and State through increased tourism revenues, not to mention expansion of industries served by IDCE (as an example, check out this article: http://neworleanscitybusiness.com/thenewsroom/2011/07/14/disaster-recovery-firm-makes-new-orleans-its-new-home-base/) .

The two teams decided it would be in the best interests for all involved to move IDCE “in house” with the convention center.  In addition, a new department would be created, through which the facility would work with community resources to identify new opportunities for events, conduct feasibility assessments, and launch events presenting the best opportunities to meet goals and objectives.  This department would also become an incubator for new ideas and opportunities; great ideas that only need resources to become reality.  The production company would move all human capital and event resources to the facility, with all staff becoming employees of the convention center. 

This department is now the MCCNO Trade Shows and Conventions Department, and officially opened on August 1, 2012.  In addition to IDCE, three new events are now under review for possible launch by 2013. 

So why sell?  This has been the biggest question hitting the producers.  This is simple.  Why not?  The purpose of IDCE was to respond to the effects of Katrina on the city of New Orleans and State of Louisiana.  Through the assistance of State resources, this event is now meeting its goals and objectives.  Imago was a small company with minimal resources.  In addition to the monumental increase in event production resources available to IDCE, this move allows the team to work on new events and opportunities as they grow the MCCNO event portfolio.  It brings additional satisfaction to all involved, and brings the most benefit to all who have worked so hard to make IDCE not just a reality, but a success.

The purpose of Imago Productions, Inc. was not one of financial goals, but to make a difference.  The motto of Imago was always “Markets That Matter”.  With the move to the State of Louisiana and the New Orleans Ernest N. Morial Convention Center, this leadership team has a much greater opportunity to do just that… create and implement markets that matter; that make a difference. 

The reaction of the industry has been mixed.  This is expected when you try something new.  Show Organizers seem to feel threatened by the move of a facility owning and operating their own event.  The leadership from a major global event production company publically stated such a move would threaten the availability of facilities to their respective events, falsely prophesying events would forgo independent events to ensure in-house events had preferential treatment for scheduling.  Huh? 

The primary purpose of an event facility is to present a positive economic impact on the communities they represent.  They create tourism opportunities… bringing visitors to spend money on hotel rooms, in restaurants, and gift shops.  The business on facility books represents multiple events, serving multiple industries, each having a unique impact on the city.  These books are managed with the specific purpose of maximizing the use of the facility space to the benefit of the communities served. 

As such, decisions are made regarding which events get what space over specific dates based on the size and scope of what they present as a whole.  Facilities constantly protect specific date patterns and space in an effort to attract events that will benefit their community.  It is a simple concept… the best business gets the best dates and space.  Why would a facility owning an event in place of an independent production group be any different?

The primary purpose of the MCCNO Trade Shows and Conferences department is to fill holes on books, in turn allowing the facility to be less dependent on third parties to assist when schedules are slow.  Events will continue to be evaluated on an impact basis.  Available dates to in-house events will meet the same guidelines and objectives as any third party event.  The only difference… there is less risk of event halls, hotel rooms, restaurants and gift shops being vacant during slow periods due to the lack of possible buyers. 

Today, the Ernest N. Morial Convention Center can help meet its own needs.  That, my friend, is the trend of tomorrow. With the announcement of the MCCNO, other facilities are beginning to follow suit.  Clarion North America recently announced a deal to produce events with the Georgia World Congress Center in Atlanta.  Numerous other facilities are actively engaging event producers to consider launching local and regional consumer and B2B events focused in industries unique to their region.  The trend will continue, and the industry will be better off for it. 

It took a city that experienced catastrophic losses and re-birth to bring this concept to fruition.  Now the industry we serve is experiencing change and re-birth.  Innovation, economic growth, and industry stability will be the result.   New ideas… new events… new jobs.  Isn’t this what the industry is all about?  Yes… times are changing…. But for the better, and we all benefit.   THANK YOU New Orleans… Laisse le bon temps rouler!

Are you listening? Really… ARE YOU LISTENING?

With all of the discussion over the past few months (years) regarding the economic struggles of the Tradeshow, Meetings, and Events industry, there has been solution after solution pitched to show management lineups worldwide on how to weather the storm, keep the attendance average up, and possibly hit the home run on the next event. Most of these prescriptions have been standard – streamline business units; reduce costs through budget cuts; re-evaluate products and services offered; re-identify with the markets served; downsize programs; collocate events or share resources; yada, yada, yada.

My response; If you are effectively managing your business, you should basically be doing this already; constantly evaluating your business units and managing costs to ensure efficient operations; monitoring the performance of products and services in the market and shifts in market demands; consistently redefining all strengths, weaknesses, opportunities, and threats; managing sales efforts to ensure peak performance; ensuring strong performers are in the right seat on the bus throughout the organization, etc…

Though “Business Management” includes reacting to unforeseen obstacles taking place within the markets served, "Management Excellence" is being prepared for challenges BEFORE they arrive. Preparation = effective response and quick recovery. The key to effective preparation: INFORMATION and COMMUNICATION!

Information and Communication! Has a nice ring to it, doesn’t it!

We could go on and on regarding the tools available to businesses regarding information and communication; from business intelligence services to CRM and marketing platforms, the market is inundated with options. I just recently consulted with a supplier to Hewlett-Packard (Network Training Services) regarding the design and enterprise implementation of a new CRM system. Funny; so many options offer so few differentiators and approach the concepts of communication and information from the same perspective: how information and communication can assist in identifying new customers, communicating the company message to these customers and the markets served, and manage expectations in the process.

This approach needs to be taken a step further. Why not look at communication, not for what we want to say, but to hear what your customers have to say, not just to you, but to their clients and the industry they serve? Why not look for information, not just about your customer, but the information your customers want to learn regarding THEIR customers? This information “service” is easier to provide than you think, and the advantage you can obtain for the business by providing and monitoring such service is invaluable.

WhosOn by Parker Software (http://www.whoson.com/) is an all-in-one solution for Live Web Statistics, Live Visitor Chat, Proactive Visitor Engaging, Prospect Detection, Web Analytics, Click-to-Call Back, Click Fraud Detection & More. Though the program provides management with market intelligence regarding website marketing programs and assists with sales efforts and data mining, the primary advantage of the software program is the real-time communication portal through the web; customer “live chat”, and the real-time site analytics we are able to capture while leads and opportunities are crawling on our site. We are able to listen to our clients tell us what is of interest to them by monitoring their traffic habits on our website and listening to their real-time comments through our chat program. Though we can communicate to them, it is their communication to us through this tool that is of most value.

One of the special features our registration vendor, EShow (http://www.goeshow.com/), brings to our events is the addition of a networking service to the registration system which allows exhibitors and attendees to chat prior to the event; Exhibitor and Attendee, Attendee and Attendee, Exhibitor and Exhibitor. We are working to take this a step further, deploying WebEx conference services to our event, allowing all exhibitors and attendees to hold free, online conference calls and pre-event meetings through our website. These programs will allow us to witness the conversations of the market we serve and ensure we are continuing to offer products relevant to their respective needs and interests while eliminating those that are not beneficial to their business. In addition, and of more value to our clients, this program will serve as a tool for all attendees to discuss the event and plan their attendance; set up meetings; identify specific products on the show floor they wish to review; invite specific buyers to visit their booth on the show floor; identify key speakers / presenters and topics they wish to experience; comment on who they would like to see at the event, and more. This information will allow us to continue tweaking the event according to what our clients and their industry peers are saying through this service. We are able to capture this data, analyze the sales and communication habits of our clients, understand their true interests, and refine our products and services to better match their needs.

In a day and age where business must think outside of the box to gain a strategic, competitive advantage, we must be creative and resourceful with the customer in mind; not just focused on how we can serve, but listening to how our customers want to be served. As the market rebounds and power shifts, the customer will tell you where your business needs to be. The question is… are you listening?

Sales & Marketing in 2010

CLICHÉ – A cliché is a saying, expression, idea, or element of an artistic work which has been overused to the point of losing its original meaning or effect rendering it a stereotype, especially when at some earlier time it was considered meaningful or novel (From Wikipedia, the free encyclopedia). MY TURN: “It’s hard to believe the New Year is already here!” YOUR TURN… (Insert Response Cliché). Given the dismal economic performance of 2009, we can all think of many come-backs… but the one we most certainly agree would be… “Let’s hope 2010 is better than 2009”. Unfortunately, the word “better” remains subjective.

Leading economists are forecasting 2010 to mark recovery from “The Great Recession”. We are currently witnessing trends of lowering unemployment and increasing GDP. However, amidst positive trends and recent economic data, we will continue to feel the bite of this recession for a while. We must also remember there is no guarantee 2010 will bring relief. 2010 presents a looming giant of economic catastrophe. Today’s stability, however welcome, is worryingly fragile (see “The Great Stabilisation”; The Economist, Print Edition, Dec 17, 2009). As such, we can expect the business sector to continue operating in the world of economic downturn, no matter what economic indicators and leading economists suggest… hope for the best; plan for the worst, right?

It’s the “planning for the worst” that gets me. It is no secret that when the economy tightens, so do the belts of business. Faced with a slowing / receding economy, our clients (exhibitors and attendees) slice budgets in 3 areas that directly affect the tradeshow / B2B marketing industries: Business Marketing, Training, and Travel. We all agree that fiscal management is a necessity. Efficiency is mandatory to weather economic storms. The problem doesn’t lie in tighter fiscal policies; the problems lie in how fiscal restraint is applied. Simply put; management seems to forget the fundamentals of HOW to market and sell in a recession. What’s ironic is while we complain furiously about the erroneous financial decisions of our clients, we do the SAME THING!

When we look at our slumping exhibit and sponsorship sales, or dropping attendance rates, we blame the economy and the market’s response. We continuously state our frustrations with our market for slicing marketing dollars, training budgets and travel allowances. We continue to bark about our customer’s buying trends and spending habits affecting our ability to sell floor space, sponsorships, conference sessions, and event attendance. We do this without consideration to adjustments we have (or have not) made as well.

There was an article published February 19, 2008 in BusinessWeek Magazine (originally published in The Financial Times of London on February 19, 2008), written by John Quelch, a professor at Harvard Business School since 1979. Mr. Quelch is one of ten marketing experts profiled in the 2007 book, “Conversations with Marketing Masters” by Laura Mazur and Louella Miles, and is known world-wide for his research on global marketing, global branding, and marketing communications. He is a non-executive director of WPP Group plc., the world’s second largest marketing services company, and of Pepsi Bottling Group. I don’t think many can question his credentials.

Mr. Quelch’s article, “How to Market in a Recession” touches on EIGHT factors a company should consider when creating marketing plans during a recession. It is a reminder of how companies should focus marketing efforts when facing bad economic conditions ahead, and offers great insight as to why each factor must be considered. Many, if not all, apply to our industry as well.

Do WE increase customer research to ensure value positioning and differentiation? Do WE change our marketing message focus more towards “family values in place of images of extreme sports, adventure and rugged individualism”? Do WE maintain our marketing spending or cut according to falling revenues? Do WE adjust our product portfolios according to the changing needs of our customer? Do WE adjust our pricing tactics? Do WE emphasize core values? Is our marketing message on target with the changing environment, and are we continuing to allocate adequate resources? (Read full article HERE)

Just as we look to our client market to respond to economic conditions appropriately, so must we. All in all, 2010 will present another year of battle within the markets we serve. We will battle for market share within the industries our events serve. We will also battle the forces our client’s are engaged with, working to help them overcome challenges and survive. Sales and Marketing tactics will be the primary catalyst to success or failure in 2010. We expect our customers to adjust; we must do the same.