Managing Risk in a New Event Launch
By John Failla, CEO, Tesoro Events
Reprinted with permission from min's b2b - May 5, 2008
Based on my experience, a well-executed validation process will transform your event idea into a well-defined product that will do the following:
- Clearly define targeted attendee and marketer segments and their respective needs.
- Position the event effectively against competitors in the space.
- Create the foundation for messaging anchored in meaningful value propositions.
- Secure preliminary support for the event from industry "influentials" (key associations, companies and individuals).
- Provide a preliminary financial picture of the event.
The process of validating an event idea in the market with prospective attendees and marketers before committing resources to a launch is a critical risk management technique and the secret sauce in the event launch process. More often than not, the discipline associated with this phase of the process is overlooked. The objective of validation in the launch process is to ensure that the event idea not only sounds good internally, but is confirmed in the market as an event that meets legitimate market needs of both targeted attendees and marketers.
Validation process
In launching trade shows and conferences over the past 15 years in numerous markets, I have refined and fine-tuned validation of the launch process into seven specific steps:
- Define targeted audience segments and marketer categories. Your probability of success with a new event increases when you target a specific audience segment. This step in the process will provoke discussion that clarifies who you are specifically trying to serve with the event.
- Identify current needs of both targeted attendees and marketers. As most markets are already crowded with events, the success of your launch will be determined by your ability to meet a current market need more effectively than existing events or to address an unmet need in the market.
- Identify competitive events and their relative value. As attendees and marketers in most markets have numerous event options, it is important to conduct a solid competitive SWOT (strength, weaknesses, opportunities and threats) analysis on the events that currently address the audience segments and market needs that your event intends to serve.
- Make a detailed description of the new event concept. The result of the first three steps come together in a crystallized definition of the event including a focused look at who the event is serving, what market needs the event is meeting and an articulation of how your event will meet these needs in a superior manner to existing event alternatives in the market.
- Secure the support of "influentials." As most markets are highly influenced by key associations, companies and individuals, this step provides a methodology for securing their support for your launch.
- Prepare a preliminary budget. With market feedback in place you can refine your model and develop a preliminary pro-forma budget.
- Decide whether to pursue, modify or abandon the event launch. With qualitative market feedback and a framework for the commercial opportunity at hand, it's decision time.
While all validation efforts do not automatically result in an actual launch, in some cases market feedback dictates a major modification of the event concept, and in other cases an abandonment of the idea. In the latter, your alternatives are to revisit the idea generation process with deeper insight into audience and marketer needs, or shift your energy and efforts entirely to an alternative audience segment and a new event idea. Disciplined application of this proven process for validating your event idea prior to launch is one of the most important risk management techniques you can utilize to increase the probability of success for your new event launch.
John Failla can be reached at 914.819.0693 or by e-mail at john@tesoroevents.com.
