THM 203 Introduction to MICE PDF

PALARIS COLLEGES San Carlos City, Pangasinan COLLEGE OF HOSPITALITY MANAGEMENT Second Semester 2020-2021 MODULE in INTRODUCTION TO MEETINGS, INCENTIVES, CONFERENCES AND EVENTS MANAGEMENT (MICE)  CHAPTER 1 THE MEAN...

PALARIS COLLEGES San Carlos City, Pangasinan COLLEGE OF HOSPITALITY MANAGEMENT Second Semester 2020-2021 MODULE in INTRODUCTION TO MEETINGS, INCENTIVES, CONFERENCES AND EVENTS MANAGEMENT (MICE)  CHAPTER 1 THE MEANING AND IMPORTANCE OF MICE Learning Outcomes At the end of this chapter, you should be able to; 1. Explain the meaning of MICE 2. Define meeting, incentive, conference, convention, exhibition, exposition, and event; 3. Describe the role of the MICE industry in the tourism and hospitality industry; 4. Identify the components of the MICE industry; 5. Describe the history of the MICE industry; 6. Explain the growth of the MICE industry, and 7. Discuss the importance of the MICE industry. Meaning of MICE MICE is an acronym for meetings, incentives, conferences, conventions, and exhibitions industry. The MICE industry is one of the fastest-growing and lucrative areas of the tourism and hospitality industry. Definition of Terms The following are the definitions of each sub-sector of MICE: 1. Meeting-gathering of people for a common purpose such as business, social, or religious purpose. Meetings do not include exhibits. 2. Incentive-reward event intended to showcase persons who meet or exceed sales or production goals. It is also called incentive program. 3. Conference-participatory meeting designed for discussion, fact-finding, problem-solving, and consultation. It is used by an organization to exchange views, convey a message, open a debate, or give publicity to some area of opinion on a specific issue. No tradition, continuity, or periodicity is required to convene a conference. Compared to a congress, a conference is smaller in scale. 4. Convention- gathering of individuals in which the planning activity of the attendees is to attend educational sessions, participate in meeting/discussions, socialize, or attend other organized events. Conventions include exhibits. Congress is the European term for convention. 5. Exhibition-the display of products or promotional material for purposes of pubic relations, sales, and/or marketing. It is an activity designed for suppliers of products, goods, and/or services to demonstrate and promote to a certain market. It is the European term for exposition. 6. Exposition- larger in scale than an exhibition. It generally consists of a huge public display of the goods and services of a particular industry. 7. Event- an occurrence, happening , and activity designed around various themes in order to create or enhance interest in a destination. The Role of MICE in the Tourism and Hospitality Industry The MICE industry is an exciting and profitable segment of the tourism and hospitality industry. A major source of revenue for the tourism and hospitality industry comes from the meetings, incentives, conventions, and exhibitions segment of the industry. As the tourism and hospitality industry saw great increases in expenditures, meetings, incentives, conventions, and 1 exhibitions experienced great growth as well. With the many changes the tourism and hospitality industry has undergone in the past 20 years, the importance of MICE has become more recognized. The need to communicate with one another face-to-face has been the driving force behind the growth of this industry. Components of the MICE Industry There are four major components of the MICE industry, namely: planners and groups they represent, host facilities, services, and exhibitors. Planners are individuals or groups that plan meetings, conventions, and exhibitions. Planners into a number of categories such as corporate meeting planners, association meeting planners, and independent meeting planners. Corporate meeting planners work exclusively for a corporation.Association meeting planners work exclusively for an association. Independent meeting planners contract their services to both associations and corporations. Host facilities provide lodging, meeting rooms, food and beverage, as well as a number of other services for groups attending meetings, conventions, or exhibitions. Host facilities include hotels, conference centers, resort hotels, universities, bed and breakfast inns, etc. Services refer to individuals and organizations that provide support for the meetings, conventions, and exhibitions, segment of the tourism and hospitality industry. Service suppliers include transportation companies, attractions, tour guide companies, and entertainers. Exhibitors are financially link with all segments of the MICE industry. They provide much of the revenue needed for the planners to hold meetings, conventions, and exhibitions. Exhibitors are persons who work for the company. Other names for an exhibitor are advertising director, communication director, or director of marketing. Who is involved with the corporate exhibit program. The main aim of exhibitors is to introduce their products, both new and old, to an interested audience. History of the MICE Industry Archaeologists who investigated ancient cultures have found ruins that served as places where primitive people gathered to discuss common interests such as hunting plans, war activities, peace, negotiations, and tribal celebrations. Each village or hamlet had its common gathering place. As geographical areas grew, cities became the meeting places for people who wanted to trade goods or discuss common problems. As cities became the center of activities for geographical regions and transportation improved, the desire of the people to gather and discuss things of common interest became more widespread. Trade associations, professional, fraternal, and religious organizations assembled to discuss relevant issues. Discussions of trade regulations, as well as selling or trading of goods, were the main reasons for convening. Many trade, professional, fraternal, and religious associations have historical roots in Europe. In the United States, such activity took place only in the mid-1800s. As America grew, so did its trade, professional, fraternal, and religious associations. In the Philippines, Manila, its capital, is proud to have pioneered the international meeting industry in Southeast Asia 1976 was a memorable year for the region. It was in this year that Manila 2 opened its door to Asia’s first fullfledge convention center- The Philippine International Convention Center (PICC)-to the International Monetary Fund/ Word Bank Meeting. Since then. Manila has developed its professionalism and expertise. It has developed an infrastructure of deluxe accommodations, efficient transportation network, and modern telecommunications to support a versatile range of meeting facilities. In 1996, manila celebrated 20 years as a leading destination for meetings, conventions, and exhibitions. The Growth of the MICE Industry The growth of the MICE industry has been remarkable. Most of this development has occurred within the past 10 years. This growth has been due to several factors: meeting planners associations, the airline industry, the lodging industry, convention centers, conference centers, meeting technology, and ground handlers. Meeting Planners Associations Development of associations is connected with meeting planners.These associations not only grew in numbers but also expanded the list of services they offered to their members. Majority of these associations increased their emphasis on education. Other growth factors included the rise of the independent meeting planners, the increase in the number of women planners, certification and development of standards, and the integration of travel agents into the profession. Airline Industry The advancement of the airline industry enabled people to travel quickly and efficiently. This was made possible by the introduction of the jet airplane-an invention that revolutionized transportation worldwide. A relevant factor was the deregulation of the airline industry which resulted in vigorous competition among airlines to attract more passengers. This caused a reduction in the cost of air travel. Lodging Industry The lodging industry recognized the financial importance of MICE. Hotels grew and became convention centers. Hoteliers learned to adapt their services to different clients. Property marketing directors learned how to work with meeting planners. Convention Centers Convention centers expanded in terms of exhibition spaces, accessibility, and storage facilities, They were able to accommodate all the activities of a convention and trade show under one roof. Traffic was improved, allowing large numbers of people to move quickly from one area to another. Convention Bureaus Convention bureaus grew rapidly both in numbers and size of operations. The number of bureaus has doubled since 1980, from 100 to more than 250. Their operators have become more professional. 3 They actively participate in industry and association affairs. Conference Centers Conference centers changed their appearances during the past two decades. For some time they maintained a “business only” appearance. This has been replaced by modern restaurants, recreational facilities, and the latest high-tech audiovisual equipment. Meeting Technology Modern audiovisual equipment gave meeting planners a greater degree of flexibility and creativity that was never possible in the past. Video projectors, 360-degree projection techniques, muti-image presentations, and unique sound systems have become very common. Ground Handlers Effective ground arrangements became necessary as MICE became more complex. Ground arrangements include planning tours, transportation, sightseeing, banquets, and hotel reservations. Convention service companies were established in the 1970s to develop creative meeting programs. Importance of the MICE Industry One of the most rapidly growing segments of the tourism and hospitality industry is the MICE industry. In the United States, it has developed into an industry that is worth more than $25 billion. The international convention and exhibition market has grown considerably in Western Europe mainly in France, Belgium, Great Britain, and Switzerland. Conventions and exhibitions generate a tremendous amount of revenue within the tourism and hospitality industry. Travel sales from meetings, conventions, and exhibitions are so important to the economy that all levels of government have organized, advertised, and provided services to attract these groups. The United states has offices in major industrial countries to help organizations with travel arrangements to the country. Each state allots a major part of its budget to advertising to encourage conventions and business travel to their state. Majority of cities with a population of around 200,000 have visitor and convention centers that aim to attract and support meetings, conventions, and exhibitions. Over the years, the International Association of Convention and Visitors Bureaus has undertaken an assessment of the economic impact of MICE. It was found out that ou-of-town convention delegates spend an average of $638 for a 3.5 day stay. Delegates to international, antional, or regional conventions/exhibitions stay an average of 4.1 days and spend an average of $818. Trade show delegate expenditures exceed $1,000, including exhibitor and association expenditures. The International Association of Convention and Visitors Bureaus has conducted these studies for several years involving the United States and non-U.S. cities. These studies showed that approximately 82 million delegates attended 267, 810 meetings with a direct economic impact of more than $56.6 billion. 4  CHAPTER ACTIVITY Contact your local tourist office. Identify the method being used to attract MICE business to the area. CHAPTER QUIZ I. Identify the following: _________________________1. A gathering of people for business, social, or religious purpose _________________________2. A reward given to individuals who exceed sales or production goals. _________________________3. The European term for “convention”. _________________________4. A meeting designed for discussion, fact-finding, problem-solving, and consultation. _________________________5. An activity designed around various themes to enhance interest in a destination. _________________________6. An event in which products and services are displayed for purposes of public relations, sales, and marketing. _________________________7. Large facilities where meetings and events are held _________________________8. An event in which the primary activity of the attendees is to attend educational sessions, participate in meetings/discussions, socialize, or attend other organized events. _________________________9. Individuals or groups that plan meetings, conventions, and exhibitions. _________________________10. An event which consists of a huge public display of the goods and services of a particular industry. II. Enumerate the following: 11-18 Factors which brought about the growth of the MICE industry 19-20 Two sub-sectors of the MICE industry 5  CHAPTER 2 KEY PLAYERS IN THE MICE INDUSTRY AND THEIR ROLES IN THE TOURISM AND HOSPITALITY INDUSTRY Learning Outcomes At the end of this chapter, you should be able to: 1. Describe the key players in the MICE industry and 2. Discuss the roles of the key players in the tourism and hospitality industry, which are: a. Associations; b. Convention centers c. Conference centers d. Tour operators; e. Trade shows and expositions; f. Hotels g. Convention and visitors bureaus; and h. The process of providing a MICE event The size of the MICE industry has greatly expanded. At present, it includes several players. These players are the following: 1. Associations 2. Convention centers 3. Conference enters 4. Tour operators 5. Trade shows and expositions 6. Hotels 7. Convention and visitors bureaus 8. The Proces of Providing MICE Event Associations An association is an organized body that promotes and enhances a common interest activity or purpose. Modern associations find their roots in historical times. Roman and Oriental craftsmen in ancient times formed associations for the improvement of their trade. In the middle ages, associations were in the form of guilds, which were organized to obtain proper wages to maintain work standards. Associations are classified into main categories-trade associations and professional associations. Both are organized for the betterment of their members. The main activity for both types of associations is to gather and exchange information through publications, educational seminars, newsletters, and meetings. Trade associations are nonprofit organizations that are designed to address the needs of for profit businesses. The members are business agencies that have the same objective. A good example is the Professional Convention Management Association (PCMA) whose members are involved in the conventions and meetings industry. 6  Professional associations, are nonprofit organizations that are not business-oriented. They are designed to help their members realized their objectives. Professional associations are divided into three sections. The first sector consists of the members with the same interest such as the American Association of the Retired Person (AARP). The second sector consists of scientific , engineering, and learned associations such as the Council of the Hotel, restaurant and Institutional education (CHRIE). The third sector is concerned with religious, charitable, and public services such as the American Heart association. Convention Centers A comprehensive convention center is a public agency whose aim is to host meetings and exhibits in a venue. It provides banquet, food and beverage, and concession services. Majority of convention centers are owned by the city, country, or state government and are operated by an appointed board or authority. An example of a convention center is the PICC. Other examples are the Jacob K. Javits Convention Center in New York and the Anaheim Convention Center in California. In some cases, convention centers may be managed by private management companies. Convention centers provide big, flexible rooms for trade shows and smaller spaces for banquets, meetings, and association parties. The convention and visitors bureau assists in marketing convention centers. Historically, convention centers were organized to serve the community. However, at present, convention centers are profit centers. Many convention centers obtain revenues by renting their exhibition and meeting rooms. Other sources of revenue come from food and beverage catering, concessions, and vending. Many convention centers offer specialized services to exhibitors who take part in shows held in it. Examples are electrical telephone, stage construction, lighting, plumbing, air, and sound. Conference Centers A conference center is a specialized hospitality operation which aims to facilitate and support small to medium size meeting of 20 to 50 people. Conference centers are different from convention centers because majority of conference centers provide overnight accommodations for their participants. The guest at a conference center do not need to leave the center during the entire duration of their conference because all their needs, such as meals accommodations, and leisure activities, will be provided by the conference center. The conference center was established to meet the growing demand for specialized meetings. The design of the conference center emphasizes comfort and privacy for the attendees. A unique characteristic of a conference center is that it provides continuous refreshment throughout the meeting, thus, allowing the attendees to take a break whenever they feel like doing so. Another unique feature of a conference center is that it charges only one price that includes meals, room rates, meeting rooms, audiovisual equipment, coffee breaks, and paper supplies needed by the participants. Tour Operators Tour operators play an important role in the MICE industry. They work with meeting planners in arranging tours and activities for meeting attendees and their families who combine business with 7 pleasure. Most often, convention delegates stay in the convention city for a few days after the convention to relax, sightsee, or enjoy the entertainment in the city. Tour operators often create tour packages for the spouse, guest, or children of the attendees. Thus, while the participants attend their meetings, their spouses and guests may be brought to a local museum or art gallery while the children may be brought to a theme park or a zoo. The convention delegates usually receive information about the tours several weeks before the convention. Because there is a growing trend for meeting attendees to bring their families with them. The job of the tour operator is becoming more important in the MICE industry. Trade Shows and Expositions Trade shows, expositions, and scientific/technical conferences are terms that are used interchangeably in the MICE industry. Exhibition was historically a European term. As we become more global, Americans have adopted the term to refer to traveling shows such as art exhibitions. According to the CLC glossary, expositions are public shows. Historically, trade shows are private shows which are open only to those involved in the industry. Although some trade shows open themselves to the public on their final days, majority are still private. All these terms describe an activity which aims to represent a major industry marketing event. Trade shows provide a venue in which individuals associated with a particular industry can bring their products and exhibit them together. The forum allows the attendees and exhibitors to exchange information about their products. For example, an annual trade show is sponsored by the American Hotel and Motel Association every November in New York City. This trade show brings together all the suppliers associated with the hotel and motel industry. Trade shows have a very interesting history. According to Evan St. Lifer, trade shows or expositions started when caravans crossing the dessert would meet and exchange products. In the United States, the history of trade shows dates back to 1876 when Alexander Graham Bell showed his telephone at the Philadelphia Centennial Exposition, a show celebrating America’s first 100 years. With the advent of the industrial era, marketing of products became very important. Salesmen spent most of their time on the road selling their products. Because it was impractical to call on customers individually, salesmen began to rent hotel rooms to display their wares. They invited their customers to look at their display. This practice was beneficial to individual companies. As the trade shows industry expanded, hotel became insufficient to use. By the mid-1920’s, hardworking individuals developed an exhibit hall in which large groups exhibitors who shared a common product showcased their wares together. This gave trade shows a new look. Clients were no longer crowded in small hotel rooms and not allowed to leave the room until they placed their orders. In exhibit halls, clients were allowed to roam freely from one booth to another. At present, the trade show industry is the most exciting, dynamic, and economical means for marketing individuals to achieve their sales goals.Because of the great number of attendees in trade shows, cities are now competing for the trade show business. 8  There are several key players within the trade show industry: the trade show sponsors, exposition or show managers, and service contractors. Trade show sponsors are trade or professional associations who use the trade show as an important part of their meetings or conventions to generate revenue. For example, the National Restaurant Association is the sponsor for the NRA trade show which is held in Chicago every May. The exposition or show manager is responsible for all aspects of the trade show. The service contractors are individuals responsible for providing all the services needed to run the facilities for a trade show. A general service contractor is multi-talented, creative, and equipped to serve all exhibit requirements. Hotels Hotels play an important role in the MICE industry. Hotels provide comfortable overnight accommodations for out-of-town guests for a meeting, convention, or trade show. IN addition, many hotels provide meeting rooms, convention facilities, and small exposition halls for meetings and conventions. Meetings and conventions have become a major source of revenue for many hotels. This revenue is generated through the rental of sleeping rooms, food and beverage, as well as rental of meeting places. The most important person in a hotel is the convention service manager. He or she acts as a liaison between the meeting planner and the hotel. This position has increased the marketability of hotels as convention sites because the primary aim of the convention service is to service the meeting or convention. Meeting planners need not deal with different department heads within the hotel. The convention service manager can help them with all their needs. Convention and Visitors Bureaus A convention and visitors bureau is a nonprofitable organization designed to solicit visitors and conventions to a community. Majority are privately owned although some are housed within the state government. They are funded through the hotel accommodations tax. The convention and visitors bureau coordinates all activities of meetings and conventions. These include marketing the destination, providing information about possible host facilities, coordinating familiarization tours for meeting planners and association executives, and acting as liaison between the group and several suppliers within the community. The Process of Providing a MICE Event According to Rutherford, the process of providing a MICE event is often compared with the design of a wheel. At the center of the wheel is the MICE event which may be a conference or exhibition that will be managed by a conference organizer. All specialists who provide services are located on the spokes of the wheel (see Figure 2.1). During the planning of the MICE event, one or more of the services specialists or suppliers might assume a specific role that is very important for the success of an event. An example is the transport supplier who provides transfers of international delegates from the airport to the venue. Around the edge of the wheel are the delegates or customers. Any time during the events, the delegates will come into contact with the suppliers. Their overall experience of the event will be influenced by each of the service specialists or suppliers. Hence, the interrelationship between each supplier and the delegates is very important to the success of the MICE event. The key players of the MICE industry include hotels, facilities, support services, associations, professional congress organizers, incentives travel organizers, and convention and visitors bureaus. 9  CHAPTER ACTIVITIES 1. Develop a familiarization trip to introduce a meeting planner to your city. 2. Make a list of potential conference venues to your town, city, or area. What are the range and extent of the facilities available? Who might be attracted to these venues? 3. Critically evaluate the role of a convention visitors bureau within a city or region. Discuss the services it provides for the potential conference organizer. CHAPTER QUIZ I. Identify the following: __________________________1. An organized body that promotes a common activity or purpose __________________________2. A public assembly facility designated to host meetings and exhibits under one roof. __________________________3. The person responsible for all aspects of a trade show. __________________________4. A nonprofit organization that solicits meetings and conventions to a city. __________________________5. The person who acts as a liaison between the meeting planner and the hotel. __________________________6. Individuals who provide services and products needed for the show. __________________________7. He or she arranges tours and activities for meeting attendees and their families. __________________________8. Nonprofit organizations that are not involved with business firms. __________________________9. Trade or professional associations who sponsor shows to generate revenue. __________________________10. Organizations whose aim is to meet the needs of businesses. II. Enumerate the following: 11-17 Key players in the MICE industry 18-20 Kinds of professional associations 10  CHAPTER 3 MICE PLANNERS Learning Outcomes At the end of this chapter, you should be able to: 1. Explain the meaning of a MICE planner; 2. Understand the characteristics of successful MICE planner; 3. Explain the responsibilities of MICE planners; and 4. Discuss the following activities of MICE planners, which are: a. pre-meeting activities; b. on-site activities; and c. Post-meetinga activities Meaning of MICE Planner Individuals or groups who sponsor meetings usually appoint a single individual or committee to coordinate the meeting. The person coordinating the meeting is called several names-MICE planner, meeting planner, meeting manager, coordinator, meeting director, and professional congress organizer (PCO). Characteristics and Responsibilities of MICE Planners MICE planners must possess strong administrative and leadership qualities. In a study conducted by Strick and Montgomery, the following are the 10 personality characteristics of success ful MICE planners: 1. Organized 2. Efficient 3. Responsive 4. Attentive 5. Intelligent 6. Prompt 7. Courteous 8. Hardworking 9. Friendly 10. Hospitable Majority of association and corporate meeting planners are between the ages of 35 and 55. More than 50 percent are women and 66 percent have a college education. Most of them have more than four years of experience in the field. Responsibilities of MICE Planners In general, MICE planners are responsible for the following: Pre-meeting Activities: 1. Plan the agenda of the meeting Before a MICE planner can start planning the meeting, he or she must know why the meeting is being held. Meetings and conventions are often held for several reasons-training, problem-solving, brainstorming, planning, networking, team building, etc. 11 2. Establish the objectives of the meeting The meeting agenda provides the basis for the establishment of objectives. The meeting objectives, in turn, will provide the groundwork for the budget, the site selection, and the site facility. 3. Predict the attendance Attendance determines the success of a meeting or convention. To solicit attendance, the MICE planner should develop a marketing plan. To develop a marketing plan, the MICE planner must know what he or she and the sponsoring organization are marketing and who are the prospective attendees are. The work of the MICE planner is easier if he or she has a list of attendees has demographic, psychographic, and historical data regarding past meeting participants.Id the MICE planner is not familiar with the potential attendees, that person should develop a profile of them through discussions with the executive directors of the association or corporation. The planner must develop questionnaires too determine the needs, desires, and expectations of the group. These questionnaires should be administered before the event. 4. Set the budget of the meeting Setting a budget for the meeting is a difficult task. It is successful if the MICE planner is consulted before the budget is finalized. A working budget should be established and used as a guideline in making decisions. Income for a meeting, convention, or exposition could include the following: a. Registration fees b. Exhibitor fees c. Company or sponsoring organization money revenues d. Advertising revenues e. Revenues from the sale of educational materials f. Event sponsor contributions g. Registration fee interest h. Grants or contributions Expenses for a meeting, convention or exposition could include the following: a. Meeting planner fees b. Marketing expenses c. Printing and copying expenses d. Mailing e. Shipping f. Support supplies such as office supplies g. Support staff h. Audiovisual equipment i. Signage j. Speaker fees, honorarium, and expenses k. Mementos for guests and attendees l. Tours m. Ground transportation 12  n. Spousal programs o. Food and beverage events p. Gratuities q. Interpreter r. On-site personnel s. Rental fees for meeting and exposition space 5. Select the site of the meeting The success of a meeting, convention, or exposition depends on the site and facilities chosen. When selecting a host city, the following are the questions that should be answered: a. Have you used the site before? b. Is the site easily accessible for the majority of your participants? c. Does the geographic area lend itself to pre and post- meeting or conference excursions? d. Is the ground transportation appropriate for the group? e. What is the reputation of the site? f. Is the climate acceptable to your participants? g. Are there enough meeting places and sleeping rooms available to accommodate you group during the desired period? 6. Select the meeting facility and the hotel When choosing the meeting facility and the hotel, service is the first priority. MICE planners must provide a level of service that makes the guests feel at home, well cared for, and anxious to return. Along with the service attitude of the staff, MICE planners are also looking for a higher level of services for their special attendees-the physically handicapped and those with special dietary needs. Another important area to be considered is the ability to meet the needs of their international attendees. The facilities, services, and amenities that have to be provided are multilingual staff, easy exchange of currency, interpreters, international codes and symbols on guest information and signage, and the ability to accommodate special dietary considerations. When choosing the meeting facilities, the specific questions to be asked are: a. Have you stayed in the facility? b. What have you heard from other groups with regard to this facility? c. Is the facility accessible from the airport? d. Is the physical appearance appealing? e. Is the facility kept in good repair? f. What kind of first impression does the facility make? g. Does the facility have the needed space available? h. What are the number, size, and caliber of meeting rooms and guest rooms? i. Does the facility provide VIP accommodations? j. Are nonsmoking rooms available? k. Does the facility provide appropriate food and beverage services? l. Does the facility provide appropriate recreational opportunities? m. What time is check-in? n. Can special arrangements be made for early check-in and late check-out? 13  o. Can special rates apply before the meeting and after the meeting in case the participants would like to arrive early or stay late? p. What are the check-in and check-out procedures? q. Are staff members appropriately dressed, knowledgeable, and courteous? r. Does the facility provide the support staff the group will need to successfully host the meeting, convention, or exposition? s. Is the signage appropriate? t. What is the proximity of the facility to shopping, dining, and entertainment facilities? u. Is the room rate appropriate for the group? v. What kind of deposit is required? w. What is the guarantee and cancellation policy? x. What other groups will be on-site during your meeting? y. What kind of room block will they provide? z. Are the safety and security features working and up-to-date? 7. Negotiate contracts The person in charge of site should never sign a contract with a facility unit after just one site visit. It is suggested that the MICE planner makes two visits to the site-one announced and one unannounced. After completing the two site visitation, the planner can negotiate and sign the contract. 8. Plan exhibition After the site has been selected, the actual meeting, conference, or exhibition can be planned. A detailed agenda can be made which will include meeting rooms and recreational activities. 9. Prepare the exhibitor correspondence and packet 10. Create a marketing plan In corporate training meeting, the marketing may only be a flier or memo discussing the time, date, place, and agenda. If the event is a major convention, marketing starts one year before the event. In general, the convention is marketed in the registration packet of the previous year’s convention.The type of information that should be included in the marketing piece should be dates, places, and general overview of the theme. 11. Plan travel to and from the site 12. Arrange ground transportation 13. Organize shipping 14. Organize audiovisual needs On-site Activities: 1. Conduct pre-event briefing 14  During the pre-event briefing, the participants will brief each other regarding the changes that have been taken since the event guide was developed. Each department head will discuss the arrangements he or she has made to service the group.The MICE planner should arrive at least one hour before the event in the case of a single meeting. In case of a major convention or exposition, the MICE planner should arrive several days before the event to oversee the move-in activities. 2. Prepare executive plan In order to execute the plan properly, it is necessary to have a thorough event guide and maintain open lines of communication between the sponsoring organization and the host venue. 3. Move people in/out 4. Troubleshoot 5. Approve invoices Another important function of MICE planner is to approve all invoices. It is the practice of host venues to present an invoice at the end of each major food and beverage function. It is the responsibility of the planner to check the accuracy of these invoices and to make the necessary changes, if any. The MICE planner should arrive at least one hour before the event in the case of a single meeting. In case of a major convention or exposition, the MICE planner should arrive several days before the event to oversee the move-in activities. Post-meeting Activities 1. Debrief The aim of the debriefing is to allow all those involved to discuss openly their perceptions about the meeting. At this time, the items of contention will be discussed and resolved. 2. Evaluate The MICE planner is also responsible for administering the evaluation. This can be done in a number of ways. The sponsoring organization may place evaluation information in every session so that it can evaluate the perception of the attendees for each event. An evaluation form may also be encouraged to complete the evaluation form before they leave the site. The evaluation may also be mailed to the attendees once they leave the meeting. A summary of the evaluation should be compiled and used in the planning of future events. 3. Provide recognition and appreciation 4. Arrange shipping 5. Plan for the next year These responsibilities may vary due to the nature of the association, corporation, or group that the planner is representing. In general, the association and corporate planners are responsible for all aspects of the meeting, including the agenda, while the independent meeting planner may only 15 be responsible for certain aspects of the meeting, such as site selection, agenda planning, budgetary matters, and negotiations. CHAPTER ACTIVITIES 1. Develop a checklist for site visits that would help thoroughly examine potential sites for your meeting, convention, exhibit. 2. Develop a checklist for inspecting potential host properties. CHAPTER QUIZ I. Identify the following: ________________________1. The place where the meeting is held ________________________2. A list of items to be discussed at a meeting ________________________3. Activities held before the meeting ________________________4. The aim of the meeting ________________________5. An individual attending the meeting session ________________________6. Procedures for guest arrivals and registration at hotels for meeting ________________________7. An assembly or gathering of people for business, social, or religious purpose ________________________8. Personal investigation of a facility ________________________9. An estimate of income and expenses procedure for guest departure from hotels ________________________10. Procedure for guest departure from hotels II. Enumerate the following: 11-17 Personality characteristics of successful MICE planners 18-20 Responsibilities of MICE planners 16  CHAPTER 4 MICE PLANNING Learning Outcomes At the end of the chapter, you should be able to: 1. Describe the role of the MICE sponsor; 2. Discuss the different steps in planning MICE; 3. Explain the importance of goals and objectives in planning MICE; 4. Differentiate fixed expenses with variable expenses; and 5. Discuss the factors to be considered in order to successfully market MICE. Sponsors of MICE Sponsors of MICE can be: 1. Associations 2. Corporations 3. Trade Unions 4. Independent companies who sponsor and operate trade shows 5. Religious groups 6. Theater and arts groups 7. Social organizations These organizations have varied reasons for sponsoring MICE. In the case of corporations, meetings may be designed to disseminate information, solve problems, train people, or plan for the future. Associations may sponsor meetings and exhibitions for purposes of networking, educating members, solving problems, or generating revenue. The Process of MICE Planning There are several steps to be followed in the process of MICE planning. These are the following: 1. Establishing goals and objectives 2. Targeting the population 3. Designing the program 4. Creating a budget 5. Selecting a site 6. Negotiating contracts 7. Formulating committees 8. Establishing a marketing and promotional plan 9. Hiring sub-contractors 10. Designing food and beverage functions 17  The process continues on-site during the actual event. Activities include move-in/move-out, implementing the plan, coordinating the various participants in the event, and managing the overall meeting. Post-event activities include evaluation, feedback, and planning for the future. Goals and Objectives The goals and objectives of MICE should be established by the sponsor. One of the first responsibilities of a MICE planner is to meet with the sponsor of the event in order to know the reasons for holding the meeting. The MICE planner should understand whether the sponsor of the meeting or convention is interested in providing an educational experience for the attendees, entertaining the attendees and their families, boosting the morale of the attendees, solving a specific problem, or a combination of these objectives. MICE objectives should be specific, measurable, achievable, realistic, and time (SMART). Targeting the Population After determining the goals and objectives, those involved in the planning stage of the meeting, convention, and exhibition must determine who should attend. In the case of exhibitions, the development of the exhibitor list, as well as the target audience, must be considered. The sponsoring organization must attract exhibitors to their exhibition. To do this, the sponsor should convince exhibitors that the show will provide an excellent marketing opportunity for them. The sponsoring organization should provide the exhibitor with a prospectus outlining the proposed audience, thus, allowing the exhibitor to determine whether or not the attendees are their targeted audience. Targeting the population is very important to both meetings and exhibitions. Designing the Program The program design is the structuring, balancing, and pacing of the program by combining major topics and sub-topics, passive and active sessions, and serious and fun presentations to provide professional and personal growth, and networking opportunities for participants. The program design should include the theme and the agenda of the meeting, convention, and exhibition. In designing the theme for the meeting, convention, and exhibition, planners should ensure that the theme should take into consideration the needs of the audience, the objectives of the event, and should provide continuity. For example, the theme for the Annual Convention Tourism Educators of Schools, Colleges and Universities (TESCU) held at the Traders Hotel was “Innovating Tourism Education: Creating a Research Culture”. Included in the agenda were several resource speakers who spoke on the value of research in tourism education, different research methodologies, as well as trends in tourism research. Hospitality Programs/Spousal Programs At present, conference attendees no longer use the conference as an excuse to get away from their families. Now, they use the conference as an excuse to take a mini-vacation with their families. The programs for guests of conference participants are called hospitality programs or spousal programs. These programs are designed to entertain the guests of the conference attendees. These 18 programs usually have an extensive itinerary that keeps the participants busy. Hospitality programs increase attendance at conferences. They also increase revenue for the host property because guests of attendees eat in the restaurant, shop in stores, and use other services offered by the host facility. For this reason, many host properties include in their bids hospitality programs designed to entertain conference attendees and their guests. At present, the wants and desires of hospitality program participants are different from those of past participants. The addition of children as hospitality program participants must be considered when planning hospitality programs. In addition to the meeting planner and the association executives, the host property should take an active role in the planning of a hospitality program. Design of Hospitality Programs The History of a group must be reviewed carefully before planning a hospitality program. The Program evaluations fro previous years should be analyzed to determine the likes and dislikes of the group. After the historical review, the meeting planner and the host property should survey the participants to determine the likes and dislikes of the group. The survey will include the following areas: 1. Hobbies 2. Sports they enjoy 3. Ages of the participants 4. Gender of the participants A list of the local sites and attractions as well as the services provided by the hotel should also be included. After reviewing the sites, attractions, and the host property services, the participants should be surveyed to find out whether or not they are interested in any of the suggested activities. After compiling this information, the meeting planner and the host property can start planning a hospitality program. In designing the program, meeting planners may use the services of destination management companies who know the location of local sites and attractions as well as their unique qualities. They are also familiar with all the local contacts and are able to work as a liaison for the group in developing the hospitality program. Tour companies may also provide services for the meeting planner, such as transportation, planned tours, theme parties, airport greetings, and staffing for the hospitality room. The host property can provide service by helping meeting planners contact local businesses that service conventions, meetings, and exhibitions. 19  The design of the program will vary from group to group. The program will vary from year to year. Some components that do not vary are the hospitality suite, planned social activities, food and beverage activities, and free time. The hospitality suite provides a space for the participants to meet new friends, reacquaint themselves with new friends, meet for tours, ask questions, or just to relax. The hospitality room should be located near the meeting rooms to provide easy access to the attendees. The hospitality suites are staffed by a host property employee, a volunteer from the community, or a member of the association’s local chapter. The attendant should know the group’s itinerary in order to provide important information about the local community to the program participants. Planned social activities for hospitality programs include the following: 1. Tours 2. Plays 3. Concerts 4. Sporting events 5. Tournaments 6. Guest speakers 7. Shopping trips 8. Demonstrations 9. Cooking lessons 10. Craft activities 11. Movies These activities are chosen based on the interest of the group as well as the budget for the hospitality program. Programs are financed in various ways. Some groups pay for the program out of registration fees. Others get corporate sponsorship. Another way is to have the participants pay the cost. Social activities can also be financed by combining some of the above options. Food and beverage take several forms in a hospitality program. Some groups have a continental breakfast, afternoon tea, evening cocktails, and late-night snacks all served in the hospitality suite. Others may just provide soda and coffee. The degree of service depends on the funding of the program. Although a hospitality program should be structured, there should be free time built into the program. The free time enables the participants to sightsee, relax, or visit friends. In addition, it enables the attendees to fully enjoy their free time by having information already provided with regards to major attractions, prices for the activities, and transportation options to and from activities. Children’s programs are another area that hospitality programs should consider. Children’s programs are designed to entertain the young guests of program participants. These programs can be elaborate such as providing whole day activities in the form of day camps or they can be simple such as a trip to the zoo. Programs can be designed to include both parents and children or they can be designed to entertain children while their parents attend their social functions. The inclusion of children’s programs is becoming popular with several groups. Individual or group babysitting is 20 usually provided through the hospitality program. If the hospitality program does not provide babysitting services, many host properties offer babysitting services for a fee. Once the program is developed, the itinerary must be marketed properly to ensure adequate participation. This usually requires at least two mailings of the itinerary and several brochures describing the events to the program participants. The host property should make sure that a full- color brochure of their property and a detailed description of all their amenities are included in the first mailing. Marketing of the hospitality program must continue on-site as soon as the guests arrive. This can be done through posters in the lobby, brochures, and itineraries being placed in the registration packet and fliers strategically placed in the host property. If the host property has a television information system that shows the conference agenda, the itinerary of the hospitality program should be included in the daily calendar. Servicing the participants require careful attention. The primary goal of the hospitality program is to make the participants feel comfortable, well cared for, and anxious to return. Budget According to P.C. Dotson, a budget is an estimate of income and expenses and a plan to adjust the anticipated expenses to the expected income. Overall budget figures are usually provided by the sponsoring organization, but specific guidelines are normally obtained from previous conferences, meetings, or exhibitions budgets. A budget includes fixed expenses, variable expenses, and sources of revenue.Fixed expenses are not dependent o the number of attendees.Examples of fixed expenses are administrative fees, postage and printing, advertising and promotion, staff travel, speaker gees, and contracts with certain suppliers such as audiovisual firms. Variable expenses are those that fluctuate depending on the number of attendees. Examples are food and beverage, hospitality programs, exhibition expenses, guest room, gratuities, registration materials, printed materials such as programs proceedings and hand-outs, support personnel, and evaluation materials. After determining the expenses, sources of revenue to support the activities must be developed. Registration fees to support the activities must be developed. Registration fees are the most constant source of income for conferences. Other sources of revenue are advertising, educational material from the event, sponsorship, grants, company funding, and funding provided by the sponsoring organization or company. It would be impossible to host a meeting, convention, and exhibition without these sources. Site Selection The site selection process is a significant activity of the sponsoring organization. The site is very important for the success of the event. Convenience and cost are very important in site selection. 21  In site selection,the planner must first determine the aims of the meeting, convention, and exhibition. A meeting plan of format is formulated based on the aims. Thus, a group prospectus is made to help the MICE planner to know the physical requirements for the meeting, convention, and exhibition. The MICE planner should bring a checklist during the site selection. The checklist include the following areas: sleeping rooms, meeting and exhibition space, transportation (airport and ground), food and beverage, recreation ( on-site and local attractions), and services. The MICE planner should determine the following when he or she reviews the sleeping rooms. These are the number of available of rooms, types of rooms, quality of furnishings, security of the rooms and corridors, accessibility for handicapped persons, quality of lighting for reading, and adequacy of work surfaces. The following should be determined in reviewing the meeting rooms. These are the number, shape, and size or rooms, quality of furnishings, lighting, accessibility of audiovisual equipment, and suitability for exhibits. The following should be determined during the inspection of accessibility: limitations placed on move-in and move-out activities, utilities, policies regarding storage, and exclusivity of sub-contractors. Room Setup and Layout In order to meet the requirements of clients, it is important that the venue has the necessary amount of space and the proper type of space to service the conferences or meetings. The capacity of meeting room space is affected by a number of factors such as the number of attendees, the physical configuration of the room, as well as the audiovisual requirements needed. The following are the different kinds of room setups: 1. Theater or auditorium setup- it is the most functional setting arrangement especially when the meeting involves a large group of participants. It involves placing chairs in rows, either straight or in a semicircle.Chairs should be placed 4-6 inches apart, with approximately 2 1/2 feet from the back of one chair to the front of the chair behind it. This setup is suitable for lecture type meetings. The main advantage is it can accommodate large groups of participants. The disadvantages are it is difficult for note-taking and there is poor visibility from the back of the room. 2. Schoolroom or classroom setup- it is conductive to participants taking notes, reading materials, or working on projects. It is suitable for small lectures and workshops where note-taking is required. Its advantages are it uses a large amount of space per person, and its is good for note- taking. Its disadvantage is it has poor visibility from the back of the room. 3. Hollow square, U-shape, and the herringbone layout-these setups are suitable for board meetings, management meeting, and small group discussions. The main advantage is they encourage discussions and interaction among participants. The disadvantages are they use a large amount of space per person, and the use of audiovisuals may be difficult. 22 4. Banquet or round table layout-this layout is suitable for banquets, seminars, and round table discussions. The advantages are it can be used when meetings break up into smaller discussion groups without participants having to exchange rooms, and it can accommodate food and beverage service comfortably. The disadvantages are it uses a large amount of space per person, and the use of audiovisuals may be difficult. Hiring Sub-contractors-Technical Transportation Because a large part of its budget is allotted to transportation, there are two issues that need to be considered. First, the planner should determine how to transport the participants to the host city where the meeting is to be held. Second, the planner should determine how to transport them from one place to another within the host city. The planner must also determine how to transfer the exhibit material, office supplies, and registration materials to the exhibit site. The MICE planner should examine all possible means of transportation such as airport shuttles taxis, city buses, and car rentals. A ground services operator may be contacted if the program design requires transporting attendees from one facility to another during the conference. A ground services operator is a company or person in a destination city that provides local transportation and other travel needs. They transport attendees to special events that are held far from the host city. The MICE planner should give special care to attendees with special needs such as the older attendees, those traveling with small children, and the handicapped attendees. The MICE planner should also consider the service attitude of individuals who will be interacting with the attendees. During the site selection process, the MICE planner should examine the ability of the host city and property to provide services and facilities for leisure time activities. According to J. Conlin, golf, free time, tennis, and tours are the four main leisure activities which are important for the success of MICE. Negotiations and Contracts After the site selection, the negotiation of price and services will start. Negotiations are held between the representative of the host property and the sponsoring organization. Examples of negotiable areas are the sleeping rooms, function space, safety, accessibility, food and beverage , renovation and construction, contingencies, restrictions, and cancellations. A contract is written and signed after the negotiations have concluded. A contract is legal document that explains the responsibilities of the concerned parties. Formulating Committees 23  The formulation of committees is essential in sponsoring a meeting convention, or exhibition. Each committee must have its own aims. If a professional association is the sponsor of the conference, the association is authorized by its constitution to form a committee that will plan, organize, and operate the conference. Each committee should have a chairman. Marketing and Promotion The following should be determined in order to ensure a successful conference: 1. Know the number of break-even attendance 2. Establish a marketing plan 3. Establish a time table 4. Carry out the program 5. Appraise the program The break-even attendance is the minimum number of attendees who have paid for the conference. This is done to avoid losing of money. A marketing plan must be established after determining the break-even figures. A marketing plan is a written record of the marketing activities of an organization with regard to a particular meeting, convention, and exhibition. According to P.C. Watson, all significant information with regard to registration, transportation, housing, seminars, etc. Should be sent 6-8 weeks before the meeting, convention, and exhibition. Food and Beverage Functions The food and beverage functions must harmonize with the program design and budget for the meeting, convention, and exhibition. The sponsor is responsible for the following: 1. Ascertain the number of food and beverage functions needed for the conference. 2. Ascertain the kind of food and beverage functions needed for the conference 3. Guide on the cuisine 4. Determine the number of attendees 5. Establish a system for record-keeping The sponsor must keep in mind the overall budget when he or she decides on the number of food and beverage functions that will be included in a meeting, convention, and exhibition. After deciding on the number of food and beverage functions, the kind of function should be determined. There are several ways of providing food and drink to the participants. These are: 1. Breakfast 2. Lunch 3. Dinner 4. Refreshment breaks 5. Reception 6. Hospitality suites 7. Theme parties 24 8. Late-night suppers 9. Recreational activities In choosing the cuisine for a meeting or convention, the MICE planner should know the desires of the attendees. Although there is a trend toward lighter menu choices, there are still some attendees who prefer heavier food. The planner, therefore, must know his or her group and choose menus accordingly. Once the MICE planner has determined the number, type, and cuisine for the food and beverage functions, attendance figures must be established. Because food and beverage functions are very expensive, the sponsoring organization and the MICE planner must give special attention to the number of guarantees according to C.Price, a guarantee is the minimum number of meals to be served and will have to be paid for. Host properties generally requires 24-48 hours advanced minimum guaranteed number of attendees. This allows both the planner and the host property to operate within a margin of safety. The area to be considered in food and beverage is record-keeping. There are many ways of ascertaining the number of people served at food and beverage functions. The most common methods are head count , ticket count, plate count, and food consumed. On-site Management On-site management involves overseeing every aspect of the meeting or convention from the time the registration table opens until the last guest departs. For large meetings that last several days, one person cannot attend every activity. Thus, the planner and sponsor should have a good working relationship with the site staff and suppliers to be sure that every activity is carried out on the scheduled time. Evaluation A meeting has to be evaluated in order to ascertain whether the goals that were established during the conceptualization phase were realized. There are several ways of evaluating meetings. Smaller meetings can be evaluated through informal methods. Comment cards and informal conversations with the planner can be sued to obtain general feedback. Another method is a focus group which may give suggestions for improvement. Formal methods such as questionnaires or surveys are other ways of evaluating the meeting or convention. Questionnaires should be short and easy to understand. To increase the return rate, questionnaires should be designed in such a way that it can be easily and quickly completed. Thorough evaluation makes poor programs good and good programs excellent(Jeurgens, 2000.) 25  CHAPTER ACTIVITIES 1. Develop an agenda for pre-convention meeting. 2. Develop a food and beverage program for a two-day mini-conference. CHAPTER QUIZ I. Identify the following: _________________________1. Costs that remain the same regardless of the number of attendees. _________________________2. Bargaining or discussing with the aim toward reaching an agreement. _________________________3. An estimate of income and expenses. _________________________4. Expenses that fluctuate depending on the number of attendees _________________________5. Choosing a venue for a meeting or convention _________________________6. A minimum number of paying attendees the event must have in order not to loose money. _________________________7. A meeting that takes place before the convention _________________________8. Formulating ideas based on observation and experience _________________________9.A written blueprint of an organization’s marketing activities regarding a particular meeting or convention _________________________10. A group of people chosen to perform a specific service II. Enumerate the following: 11-20 Steps to be followed in MICE planning 26  CHAPTER 5 MICE MANAGEMENT Learning Outcomes: At the end of the chapter, you should be able to: 1. Define management; 2. Explain the main functions of management; 3. Describe the steps to follow in choosing an organizational structure; 4. Discuss the three types of plans which are essential for an event; 5. Explain the importance of motivation in MICE management; 6. Describe the different methods of communication; 7. Discuss the communication process; 8. Clarify the importance of creativity in MICE management; 9. Explain the different steps in problem-solving; 10. Describe the other management concepts that are relevant to MICE management; and 11. Discuss the different steps in resolving crises. Meaning of Management The dictionary defines management as getting things done through effective people and efficient processes. Peter F. Drucker defines manager as “one who has the task of creating a true whole that is larger than the sum of its parts; a productive entity that turns out more tan the sum of the resources put into it”. Good management is the key to a successful MICE organization. The practical implementation of sound organizational and individual management principles and practices is vital to effectiveness. Main Functions of Management In studying management, it is important to examine its principles or functions that are very relevant to organizing events. The following are its main functions: 1. Organizing 2. Planning 3. Motivating 4. Communicating 27 5. Creating 6. Controlling 7. Problem-solving Organizing Organizing is the process of determining the special activities to be accomplished toward the end objectives; the gathering of these activities into relevant structures and the allocation of the achievement of objectives through these activities to the appropriate groups or individuals. Organization is the way in which ideals and aims are turned into reality. The focus of any organization must be to achieve the necessary action through its personnel. There are several steps to follow in choosing an organizational structure for an event. 1. Define the aims and objectives of the project 2. Analyze the background situation in which the event has to be achieved 3. List all the tasks to be undertaking 4. Group together all related tasks 5. Establish links between these groups of tasks 6. Establish an understanding of respective roles for all those involved 7. Identify possible communication lines between various groups Planning Planning is the process of setting goals and deciding on the best approach to achieve them. Careful planning is essential to successful events. Things do not happen by accident; they are produced by effective planning. Careful planning is vital because it decreases uncertainty, eliminates wasteful effort, and produces unity of purpose There are three types of plans which should be produced for an event. 1. Strategic plans direct an organization toward its overall objectives and consider the major influences-political, economic, environmental, etc. 2. Specific plans are designed to achieve specific objectives such as budget estimates, resource production, and promotion plans. 3. Administrative, organizational, and structural plans explain how the objectives will be achieved. Motivating In any demanding work situation, it is important to keep the staff motivated and interested. Special effort is necessary to keep motivation high because events demand an extraordinary commitment from every individual concerned. The MICE leader should know how to motivate his or her employees. The MICE leader should try his or her best to fulfill their individual and group needs. A good example of motivation is public recognition, especially in a local event. Giving small rewards such as free meals and free t-shirt help motivate people and increase their productivity. Communicating 28  Communication is “giving, receiving or exchange of information so that the material communicated is completely understood by everyone concerned and that appropriate action follows. Effective communication is necessary to produce good coordination and efficient organization. The following are the aims of communication: 1. To transit a message 2. To have the message accepted 3. To guarantee understanding 4. To attain correct action 5. To give and receive information Verbal communication is important but should not be overused. Nonverbal communication consists of body gestures, facial expression, eye contact, and personal appearance. If used properly, it can help bring about good relationships. Written communication is the most common in MICE management, but it is often used ineffectively. Paperwork should be minimized because it is time- consuming to read and write. Visual communication is becoming popular. Videos are used for product promotion and staff training. An effective logo communicates a message and helps in the success of an event. Visual communication also helps to generate and retain interest among the staff members. Electronic communication is the most modern method of communication. Examples are computer, email, fax, and mobile phones. They are very beneficial to MICE management because events often take place in a big location or in several locations that are far apart. When information is transferred, it should result in correct understanding and appropriate action. Thus, the information should be clear, concise, courteous, correct, complete, and correctly directed. Creating Creating is the ability to produce an original idea or thought through the use of imagination. A good MICE manager should equipped with innovative thinking skills that will help create an interesting event based on the needs of the client. He or she should be able to link together suitable ideas to achieve the objectives in an innovative and encouraging manner. Controlling Controlling is monitoring the performance of systems and resources. Control is a management function which checks whether what is supposed to happen is happening or is going to happen. It is a vital part of the MICE management because it is necessary for things to actually happen, not just promised to happen. Control systems must be established in the planning stages of an event to find out if the objectives are achieved within the prescribed timetable. The following are the four stages of effective control: 1. Plan what you intend to do 2. Measure what has been done 3. Compare achievements with the blueprint 4. Take action to correct anything that is not as it should be 29 Problem-solving Problem solving is an important skill for people who are working on events. Problems will always exist. A positive, innovative thinker is needed to solve them. Problem-solving has different stages, namely: 1. Obtain the facts; 2. Specific the objectives 3. Identify the problem; 4. Formulate alternative solutions; 5. Select the best solutions; 6. Put the selected solution into practice; 7. Continue making observations to make sure that the chosen solution works; and 8. Select anew solution or adjust any corrective action or go back to step 1. Other Management Concepts There are other management concepts that are relevant to MICE management. These are decision-making, team building, delegation, leadership, staff appraisal and training, authority, responsibility of power, and crisis management. Decision- making Decision making involves the assessment and implementation of possible strategies. In an event, it is better to use democratic decision-making and involve as many people as possible. It is advisable to use the collective knowledge of the group in order to arrive at the correct decision. Team Building Team building is the ability of an organized group of people to work together. A good MICE manager should exert effort to build his or her team. Unity of purpose and cooperation are necessary to attain success in MICE management. Formal training, informal meetings, group decision-making, and the involvement of the staff ( paid or volunteers) will help build an effective team. Delegation Delegation means giving people something to do which they are capable of achieving. Delegation is an important management activity and is essential to the success of any event. Delegation is not dumping all the boring and difficult tasks on people. Delegation is designed to attain success by using everyone’s time, expertise, and effort to the best advantage. Leadership According to D.C. Watt, leadership is an interpersonal influence exercise in a situation and directed through the communication process toward the attainment of the specific goal or goals. To be successful, an event needs a leader who is productive and capable of influencing or inspiring a large number of people. Staff Appraisal and Training Staff appraisal is an evaluation of the accomplishment, strengths and weaknesses of the employees in order to improve their performance and commitment to duty. Staff training is necessary for MICE management. There are two kinds of training for event employees: 30 1. Desirable training, which improves personal skills such as decision-making and creativity 2. Essential training, which makes sure that personnel are aware of legal requirements such as health and safety legislation and can perform word processing and computing tasks. Staff training will help improve the quality of the event and enable it to be carried out more efficiently and effectively. Authority, Responsibility, and Power The management of the event must make it clear where the authority, responsibility, and power lie. It is important that every individual knows where he or she stands so that he or she will not be tempted to underplay or overplay his or her role. For every decision, someone must take responsibility, and everyone must know that person is. Crisis Management In general, crises happen during an event. MICE planners must be skillful in managing crisis. An efficient MICE manager must be able to control crisis in an effective manner. The employees must be ready to apply suitable solutions to the crisis. The following are different ways to control crisis: 1. Examine the crisis in a pleasant way 2. Re-asses the aims or goals 3. Analyze the potential solution 4. Study the effects of many solutions 5. Choose the most appropriate courses of action 6. Carry out the best activity 7. Undertake follow-ups to prevent unnecessary reputation 31  CHAPTER ACTIVITY Draft an organizational chart of your MICE organization. Evaluate the chart and answer the following questions: a. What can be done to the chart to increase employee retention? b. What are the promotional and growth opportunities for employees based on the chart? CHAPTER QUIZ I. Identify the following: ______________________1. The process of determining the activities to be accomplished toward the end objectives ______________________2. Getting things done through effective people and efficient processes ______________________3. Plans that direct the organization toward its overall objectives ______________________4. The ability of an organized group of people to work together ______________________5. The assessment of the performance, strengths, and weaknesses of the personnel to improve their work. ______________________6. The ability to handle crisis ______________________7. The process of setting goals and objectives and deciding on the best approach to achieve them ______________________8. Giving people something to do that they are capable of doing ______________________9. Plans that are intended to achieve specific objectives ______________________10. The process of monitoring the performance of systems and resources II. Enumerate the following: 11-17 The main functions of management 18-20 Types of plans 32  CHAPTER 6 MARKETING MICE Learning Outcomes: At the end of the chapter, you should be able to: 1. Define marketing; 2. Explain the meaning and importance of customer care; 3. Discuss the important factors in marketing; 4. Explain the marketing concepts that are applicable to MICE; 5. Discuss the four P’s of marketing mix; 6. Explain the meaning and aim of promotion; and 7. Describe the different aspects of promotion Meaning of Marketing There are many definitions of marketing. The dictionary defines marketing as an integrated process of producing, distributing, and selling goods and services. Marketing is a management process responsible for identifying, anticipating, and satisfying customer requirements-profitability (Institute of Marketing). Customer Care Customer care is an essential element of MICE marketing. The needs of event customers must be given special attention. If they enjoy the event, they will come back and perhaps even invite their friends to a future event. Important Factors in Marketing There are several factors in marketing that event organizers must be aware of. 1. Location-environmental factors such as traffic and scenery as well as attractiveness and accessibility of the location should be considered. 2. Social factors- the attitude of people to what is appropriate might be affected by the attitude of friends and colleagues. 3. Cultural influences- different groups in society with different ethnic origins and social classes will see events in different ways. 4. Fashion- during certain historical periods, certain types of events will be popular and will attract many participants. 5. Political factors- local and central government will support events that fit with their beliefs. 33 6. Economic factors-assess how much money is available at a corporate and individual level, consider the exchange rates and similar economic factors. 7. Philosophy- the beliefs and attitudes of groups, individuals, and other agencies will affect of events that are provided. Marketing Concepts The marketing concepts which are applicable in commerce can also be applied to events. These are market research, self-analysis, target groups, and marketing mix. Market Research Market research is the objective gathering, recording, and analyzing of all facts relating to the provision of services for the appropriate consumer. It can help decrease the risk of failure. It is also helpful in planning an effective marketing strategy. SWOT Analysis The situational analysis can best be done by SWOT, an acronym for strengths, weaknesses, opportunities, and threats of a specific event. Strengths- the internal strengths of the organization Weaknesses- the internal weaknesses of the organization Opportunities- the external opportunities which may raise Threats- the external threats facing the organization The following are some examples that are applicable to events: Strengths 1. Staff ability 2. Detailed specialist knowledge 3. Local reputation 4. Political support 5. Enthusiasm and commitment Weaknesses 1. Poor transport facilities 2. Limited financial resources 3. Lack of general management skills 4. Poor public image Opportunities 1. Increased public awareness 2. Developing partnerships 3. Financial returns 4. Changing attitudes 5. Offering new possibilities Threats 34 1. Lack of commercial support 2. Competition from similar promotions 3. Changes in funded priorities 4. Economic trends SWOT analysis helps in the practical planning of the event and particularly with the marketing strategy to be used. Target Groups For events, it is necessary to identify the targets- the potential participants, potential spectators, potential sponsors and potential staff. Marketing Mix Marketing mix is a combination of factors to get the correct balance for an enterprise. The four basic factors are place, product, price, and promotion. The following are the different aspects of each factor: Place-the various aspects are: 1. Venue 2. Accommodations 3. Ancillary facilities 4. Signposting 5. Maps 6. Carpark 7. Catering location 8. Transportation 9. Emergency access host town 10. Region 11. Country or administrative subdivision 12. Environmental conditions 13. Geographical location Product-it is the end result; it may be the tournament, exhibition, seminar, or show. It also includes ancillary contributions such as programs, presentation, quality production, and customer care. Price- the cost of the event which is acceptable to the customers Promotion- the various aspects are: 1. Advertising 2. Media relations 3. Publicity 4. Merchandising 5. Pamphlets 35 6. Posters 7. Logo 8. displays There are other P’s which should be included for events. These are: 1. People- Proper customer care, teamwork, well-trained and competent staff are major marketing tools 2. Packaging- it is the method of presenting events. It may be presented once or as part of a season or festival. Marketing will depend on the package such as a family package or a season ticket. 3. Partnership- it is support of others which is very beneficial to the success of an event. 4. Programming- it is the way an event is scheduled. Mascot A mascot is a person, animal, or thing considered to bring good luck. A mascot should be identifies with the event, it should be appropriate and attractive. Advertising Advertising is expensive, but despite its cost, successful advertising is very valuable. Television advertising is expensive, but it is very effective in reaching the mass audience. Effective advertising is necessary to encourage people to attend event. Media Relations and Publicity Media relations and publicity should be given much attention. The publicity campaign should be undertaken together with the advertising campaign. The campaign should be done several months until the beginning of the event. Early contact with media is important. Some media outlets that can be contacted are national and local newspapers, trade and professional magazines, radio, and television. The Following are the rules of media liaison: 1. It is better to be proactive than reactive when dealing with the media. 2. Write the name of your contact person instead of writing “ To Whom It May Concern”. 3. Think in headlines when writing a press release. This may be eye-catching. 4. When talking to journalists, it is safe to assume that nothing is off the record. 5. Look for the best spokesperson for the MICE promotion and appoint the, as the media contact. 6. Retain copies of all radio, ad other media coverage. Press Conferences A press conference can be a very effective way of getting important press coverage and briefing several journalists at the same time. There are several reasons for holding a press conference: 1. To launch the event or conference 2. To relate genuine news about a famous person who is taking part in the event. 3. To explain a controversial issue about the event because media speculation can be damaging 4. To reveal a major exclusive. To justify a press conference, the appointed spokesperson must be adequately prepared to answer questions accurately and confidently. 36 Photo Opportunities It is essential to create a visual as well as a verbal impressions. Photographs can attract much attention. Although photographs require more imagination, they can be very valuable. Public Relations The public handling and public image of the organizing group are important factors in the success of an event. Getting a positive image is very vital for many events. Effective public relations can be achieved by influencing people through influential individuals. Selling Everyone involved in the event has a selling job to do. Everyone in the team is a sales representative. Some of the direct financial sales which can be greatly contribute to the income of the event are merchandising, souvenir sales, franchising, and trading. Event presentation There are two basic aspects of event presentation- the promotional presentation and the event presentation itself. The promotional presentation is for sponsors, spectators, media, and participants. The actual event presentation can range from an attractive documentary, high-cost multimedia, or audiovisual production. To generate interest, the presentation must be accurate, thorough, and error-free. 37  CHAPTER ACTIVITITIES 1. Develop a marketing plan for your event that identifies the competitive advantages, target markets, strategies, budgets, schedule, and evaluation methodologies. 2. Describe how you will increase your marketing performance through creative and innovative tactics despite a significant reduction in the marketing budget. CHAPTER QUIZ I. Identify the following: ______________________1. Promotion of goods or services by an identified sponsor ______________________2. An integrated process of producing, distributing, and selling goods and services ______________________3. The objective gathering, recording, and analyzing of facts related to the provision of services for the appropriate consumer. ______________________4. Persons who are relevant to particular events ______________________5. The product, service, presentation, communication, and distribution that directly affects the consumer ______________________6. The cost of goods or services ______________________7. The organized attempt by a business to get favorable stories concerning their products or services ______________________8. The method of presenting events ______________________9. Techniques used by organizations to promote their services ______________________10. The format used in public relations to create a story II. Enumerate the following: 11-14 The elements of a SWOT Analysis 15-18 The marketing concepts 19-20 The basic aspects of event presentation 38  CHAPTER 7 FINANCIAL MANAGEMENT OF MICE Learning Outcomes At the end of the chapter, you should be able to: 1. Explain the importance of funding in MICE management; 2. Discuss the significance of budgeting and financial control in MICE management; 3. Clarify the meaning and importance of sponsorship; and 4. Describe some tips on how to look for sponsorship and how make sponsorship work. Funding Adequate funding is essential for a successful event. The biggest mistake of event organizers is to host an event without adequate financial support. To do so will result in the failure of the event. Budgeting Careful budgeting is vital for the success of an event. A budget is an estimate of income and expenses. It is necessary to budget carefully to find out the funding needed by the event and to provide a monitoring system in the planning and implementation of the event. Financial Structures Financial structures may be simple with a treasurer controlling all finances or it may be very complicated involving several committees and even paid staff to manage the finances. When the structure involves committees, there are two options; 1. Finance as a free-standing committee; everyone requests money and awaits their decision. 2. Each committee or subcommittee has a treasurer to look after its allocated budget. Control The careful control of financial transactions is a vital aspect of MICE management. Various control systems are necessary to keep spending within agreed limits. The following are practical steps to follow for effective financial control: 1. Limit the number of people who can incur expenditure 2. Keep accurate records of all income and expenditure 3. Use appropriate record-keeping methods to keep financial information correct, and readily available 4. Ensure that relevant structures channel financial commitment through financial record keepers. 5. Ensure that financial information is widely circulated to all those who require it. 39 6. Produce systems and information that are clear and understood by everyone involved. Sources of Funding There are several agencies that MICE organizers can approach for funding such as: 1. Local authority leisure department; 2. Education authority; 3. Local or national sports council; 4. Local or national arts council; 5. Foundation for Sports and the Arts; 6. Local or national tourist authorities; 7. Sponsorship agencies; 8. Business agencies; 9. Professional institutes 10. Hoteliers 11. Heritage agencies 12. Local or national charities 13. Voluntary agencies 14. National Lottery In addition, MICE organizers can produce income from various activities such as: 1. Franchising; 2. Ticketing; 3. Entry fees; 4. Fundraising; 5. Donations; 6. Programs; 7. Raffles; 8. Souvenirs; 9. Catering 10. Advertising 11. Licensing (logos, etc.) 12. Trade exhibitors 13. Participant contributions; 14. Sales stalls 15. Bar 16. Corporate hospitality Fundraising There are many forms of fundraising. The following are some suggestion: 1. Sponsored runs, swims, and cycles 2. Dances and discos 3. Marathon swims and walkathons 4. Lotteries and raffles 5. Gambling evenings such as casino nights and race nights Sponsorship 40  Sponsorship is a mutually beneficial business arrangement between the sponsor and sponsored in order to achieve the agreed objectives. Commercial sponsorship is very difficult to find and requires a lot of effort to service it. Finding sponsors is not easy. Information about possible sponsors may be obtained from: 1. Yellow pages and telephone directories; 2. Local and national newspapers; 3. Business organization such as Chambers of Commerce; 4. Professionals such as lawyers and architects; 5. Participants and their personal contacts; 6. Libraries-local, regional, and national; 7. Market research through learned centers, consultancies; 8. Partners that have supported previous events; and 9. Existing sponsors Some Tips on Looking for Sponsorship 1. Use imagination and innovation- a new idea might convince a person to be a potential sponsor. 2. Put in the marketing effort- be sure that the product and price are correct, and the quality of the event is widely known. 3. Clearly define the type of market- specify the type of market-if the participants are rich, middle- aged, or young people. 4. Consider changing the nature of your activity, event, or promotion-adapt the event to suit the sponsor’s idea, desires, and requirements. 5. Access your sponsors through the Chamber of Commerce or the Rotary Club. 6. Assess respective images- sponsors must be compatible with the event and the participants. 7. Approach unlikely targets-approach somebody who has not sponsored an event before. 8. Do the necessary research-do detailed research using the media and the local library. 9. Check existing sponsors-find out what active companies are already sponsoring. 10. Get media support-the support of the media is needed to attract sponsors. How to Make the Sponsorship Work Sponsorship can be very worthwhile. Both parties must work to make it effective. The MICE organizers must not promise what they cannot deliver. The technical skills and knowledge of the organizers must be used in the planning and delivery in order to make the sponsor’s support justified. The Bidding Process The bid is a proposal to host an event. It is the most critical marketing tool in obtaining business. The bid should answer all the needs and requirements specified by an organization in a clear and concise manner. Preparation 1. Ask for a copy of a “bid form” or information regarding the specific requirements of the organization. The bid form is a document that gives a detailed explanation of the requirements of the association in hosting a meeting. It could be short or long. 2. Research on the history of the association for the past four years. Examine if there are conflicts and clear them with the association planner. 41 3. Evaluate the strengths and weaknesses of your destination from the point of view of the planner. 4. Find out how the bid will be made; whether the association will accept an oral presentation, a written presentation, or both. 5. Research the details of bid presentation such as location, date, and time. 6. Meet the leader of the local district to discuss the strengths of the local organization. Make clear the role of the local leaders in the bid presentation. Find out if the neighboring areas will support the bid. 7. Categorize the organization according to kind-social, educational, political, scientist, etc. 8. Examine your market position. Find out what makes your destination different from other destinations. The positioning of a destination is essential to find out its importance as a good location for a meeting, convention, or trade show due to its being unique or unusual. 9. Communicate with previous host cities and request them to help you in dealing with the organization’s planner. 10. Request local representatives to help you pre-sell your destination through letter writing, accompanied by several photographs or pictures. Presentation 1. Make sure that the presentation document is complete and easy to read without spelling and grammar mistakes. 2. Make the bid document personalized by engraving the name of decision-makers on the cover of the bid document. 3. Send a letter of invitation following the protocol order to congressmen, senators, governors, mayors, local members, and the bureau. 4. In case there is a “bid form” from the organization, make sure that it is completely filled out and contains the necessary supplemental information. Include colored photographs and brochures that will sell your destination. 5. In case an oral presentation is needed, prepare the scripts of every person who will participate in the presentation. Have a local member of the group open the presentation, followed by the mayor or another high-ranking local government official.Next, the bureau's sales executive should make a short but detailed presentation. The local members will end the oral presentation. After the Presentation Upon winning the bid, a memorandum of agreement will be signed between the bid proponent, which is the local association, and the international organization. Upon losing the bid, the proponent will revise the bid and bid again. How to Bid for International Events For international events, it is the host federation or national governing body that formally makes a bid to its international federation to secure an event. Once the event is secured, and the contractual agreement with the international federation has been made, the host federation will have to enter into a contract with its chosen host city. The host federation is the one that selects the appropriate venue. Financing of Bids and Events 42  The cost of bidding and organizing international events can often be a financial burden to the host city. Many governing bodies require the prospective host city to fund the bid process and shoulder