"TABLE OF CONTENTSAbstract………...................................................................................................................... IAcknowledgement................................................................................................................ II1. Introduction....................................................................................................................... 11.1 History of Even Marketing……………………………………………………………...11.2 Conceptual Framework…………………………………………………………………11.3 Objectives……………………………………………………………………………….41.4 Structure of the Research………………………………………………………………..52. Literature Review.............................................................................................................. 62.1 Introduction………………………………………………………………………………62.2 Definitions of Marketing…………. ..............................................................................…62.3 Types of Marketing……………………………. ............................................................ 72.3.1 Event Marketing……………………………………………………………………….82.4 Event Marketing Trends………………………………………………………………….92.5 Characteristics of Event Marketing……………………………………………………..152.6 Event Marketing Methods………………………………………………………………..212.7. Advantages and Disadvantages of Event Marketing……………………………………..232.8 Application of Event Marketing Methods in the Automotive Industry………………….372.9 Summary………………………………………………………………………………….38 3. Methodology ...................................................................................................................... 393.1 Event Study design ...........................................................................................................393.1.1 Event Study and Marketing............................................................................................. 403.1.2 Underlying Assumptions................................................................................................ 41 3.2 Event Study Methodology................................................................................................... 423.2.1 Event Window .................................................................................................................. 433.2.2 Period of Estimation......................................................................................................... 453.2.4 Sample of Firms................................................................................................................ 463.2.5 Normal, Abnormal & Cumulative Returns Calculations................................................... 463.2.6 Abnormal Returns and Cumulative Abnormal Returns Statistical Significance…...........473.3 Interviews............................................................................................................................. ..484. Results and Discussion ............................................................................................................ 494.1 Empirical Results………………………………………….................................................... 504.2 The Role of Event Marketing Through Motor Shows to Improve Firm Value & BrandLoyalty…………………………………………………………………………………………...524.3 The Use of Press and Media Tools…………………………………………………………..535. Conclusion and Implications.................................................................................................. 545.1 Conclusion............................................................................................................................. 545.2 Implications............................................................................................................................ 555.3 Further research Recommendations....................................................................................... 56References..................................................................................................................................... 58 ABSTRACTThe research is aimed at identifying the characteristics, benefits and limitations of eventmarketing within the automotive industry. The practical and theoretical knowledge gained fromthe research will prove very useful to the automotive industry and may also be beneficial in otherindustries. CHAPTER 1 - INTRODUCTION1.1 HISTORY OF EVENT MARKETINGThe term ''Event Marketing'' was first coined in the 1980s when the economic boom justified theneed for companies to include an entertainment budget for their customers. In particular, theautomotive industry has over the years adopted event marketing as a key business toll. Whenevent marketing first gained acclamation, event marketing was perceived to be such simplegestures as providing dinner and alcohol as entertainment for their customers.Event marketingstarted taking shape and becoming more dynamic in the 1990s (Stewart, 2009). The informationtechnology age saw a surge in new inventions in the realm of event marketing where firms werenow introducing all kinds of events for their customers. As this field of event marketing rose, anew breed of entrepreneurs was born and these new business people established event managedcompanies. In the new millennium beginning in the year 2000, companies begun to focus on theuse of event marketing for more profitable ends(Williams, 2011). Companies were keener on thetarget demographic and on how these events were in line with their bottom line. There was asudden shift from mass-events to targeted events where a specific niche was the focus of mostfirms where they aimed at creating a more intimate relationship with their target demographic.Another reason for this shift was the economic recession which tightened the marketing budgetsof most firms forcing them to be more creative with the available funds (Vallo & Hayrinen,2008)1.2 CONCEPTUAL& CONTEXTUAL BACKGROUND Event marketing is currently under immense pressure as a marketing strategy to exhibitits contribution to many firms? performance. The call for event marketing to demonstrate itscontribution as well as become more accountable for sales and brand loyalty started as early asthe 1960s (Stewart, 2009). These early demands came primarily from outside the marketingsphere as other departments such as that of finance in firms were also under pressure to justifybudgets. Stock market pressure, recession and global competition fuelled by China?s phenomenaleconomic growth set the stage for firm executives to deliver “the numbers”. This led to anincreased questioning of marketing initiatives as well as budget cuts (Lehmann & Reibstein,2006). An exhaustive survey carried out by CMO is indicative of a trend that event marketing inmost industries including the auto industry is facing the risk of being marginalized and that entiremarketing initiatives are being reduced to a set of tactics that are controlled through costsjustification.In the past decade, marketing researchers have embarked on studies to investigate the effectsof marketing initiatives on firms? financial performance (Williams, 2011). All marketinginitiatives are regarded as having the objective of increasing or contributing to the creation of ademand-function for a firm?s products. All these initiatives are primarily hinged on traditionalmarketing metrics such as sales revenue figures. Therefore marketing initiatives and particularlyevent marketing in the automotive industry is under pressure to show its contribution to firms?performance and this is underscored by the recent body of research undertaken in the last 10years. The present upswing in event marketing initiatives is indicative that firms have begun torediscover the importance of brand presence and product exhibition as an opportunity to showcase new products, implement new customer contact and communication strategies, anddifferentiate their brands and products from those of their competitors. The automotive eventmarketing business model for the entire global auto industry is gradually being influenced by thedevelopment and growth of China?s automotive industry.With the increased use of eventmarketing in the automotive industry, it has become increasingly important to gain in-depthknowledge on the trends and characteristics of event marketing in the United States (Stewart,2009). Drawing from this background, this study will seek to examine how event marketing inthe auto industry affects branding and product sales which translate to a firm?s financialperformance. The following problem and knowledge gaps provide a rationale for the importanceof this study:How do event marketing activities affect brand loyalty and firm value in an increasinglycompetitive global auto industry?This problem and knowledge gap will be addressed by answering the following sub- questions:1. What is event marketing?2. How can event marketing contribute to a firm?s value and brand loyalty?3. How do consumer markets react to event marketing initiatives?Having provided the main problem to be addressed by this study, it is then necessary toidentify the research scope as this will help narrow down the investigation to a manageablereview. The global automotive industry is known to be highly competitive in as much as everyauto manufacturing firm produce different models and aim to develop their own brands. This is because consumers do not merely buy automobiles for transportation purposes only. Theautomobiles they opt to buy represent their individual values and this by extension must becaptured by the auto manufacturers. Marketing therefore plays a key role and function in the autoindustry as product function or differentiation or specification is consistently proving to be futile.Advertising in the auto industry is becoming more and more reliant on appealing to consumers?emotional biases as this helps the brands connect with the values and the norms of theircustomers.Having established the conditions that the global automobile industry is highlycompetitive especially in China; these industry seems an excellent contextual choice to study theimpact of event marketing initiatives on brand loyalty and firms? value.1.3 OBJECTIVESThe aim of this research is to explore the impact of event marketing in automotive industry.To attain this aim, the research will try to address the following research objectives:1. To identify the characteristics of event marketing;2. To explore event marketing methods used in the automotive industry;3. To examines the advantages and disadvantages of using event marketing in the automotiveindustry.By adequately addressing and implementing the information brought forth by this research,firms within the automotive industry can be able to properly plan and organize their promotionalevents. 1.4 STRUCTURE OF THE RESEARCH The first chapter of this dissertation serves as an introduction to the formalization and field ofinterest of what knowledge the research intends to contribute, comprising the history of eventmarketing, conceptual and contextual background which will include the research problem to beaddressed and how it contributes to a firm?s brand loyalty and firm value. Chapter 2 offers areview of the body of literature on event marketing and how it has evolved over the years as wellas its relevance in the automotive industry. In chapter 3, the research methodology implementedfor this dissertation will be explained as well a detailed description of the data collectionprocesses is given. Chapter 4 provides an overview of the results gathered from the empiricalanalysis. Finally chapter 5 and chapter 6 provide a discussion, limitations of the research,conclusion and recommendations for further study respectively. CHAPTER 2- LITERATURE REVIEW2.1 INTRODUCTIONEvent marketing initiatives and issues have gradually gained importance in business. Theinterest and literature from practitioners in event marketing have undergone various stagessinceThis chapter will begin by providing an overview of marketing in general, the concept ofevent marketing.. So as to have a primary focal point for the research, a review of the availablebody of literature review must be undertaken. The points of focus include, automotive eventmarketing, automotive trade shows and integrated marketing communication mix. These factorswill be used to identify the role of event marketing in creating and maintaining brand loyalty aswell as increasing the firm?s value.The pertinent concepts will be discussed in relation to eachother but only within the context of the automotive industry. Finally an abridged summary willbe provided. 2.2 DEFINITIONS IN MARKETINGBy definition, marketing is the activity, institutions and processes used to create,communicate, deliver and exchange offerings that create value for customers, clients, businesspartners and the society.2.3 TYPES OF MARKETINGA firm can pursue various forms of marketing. Traditional marketing is one of the forms ofmarketing which has been in use for a long time and is still being applied today. However, intoday's world, the internet is playing a big role in the success of companies as people come up with new and more creative ways of marketing their products and services. Some new types ofmarketing include; Internet Marketing, Search Engine Marketing (SEM), Direct Marketing,Event marketing, Niche Marketing, Social Media Marketing, Referral Marketing, GuerrillaMarketing, Affiliate Marketing, Viral Marketing, telemarketing and finally PersonalizedMarketing (Gelder, 2002). 2.3.1 Event Marketing The term “events” is defined as those non-routine actions set apart from the normal activities offirms or a group of people (Shone & Parry 2004). When looking at the event marketingcharacteristics, it is, in fact, hard to write theory that works with all the different variations anddynamics. Different variations require different strategies on each area, right from the planningphase through to the implementation and post-implementation activities. So as to start craftingthe right strategy for any specific event, it is necessary to categorize of the event (Stewart, 2009). 2.4 EVENT MARKETING TRENDSAutomotive events are a significant aspect of many marketing mix initiatives (Tanner &Chonko, 1995), and have attracted increasing attention as a point of interaction between all themajor stakeholders. Lacagnina (2012) asserts that the currently notable trend of decreasedhuman-to-human interaction for marketing occasions due to increasingly busier lifestyles makethe automotive events and exhibitions more valued. Additionally, Song (2003) suggests thatKorean trade shows have progressively grown at an annual growth rate of between 16% to 45%from 1999. Furthermore, the entire automotive exhibition industry has grown by 1.5% from 2011to date (Center for Exhibition Industry Research [CEIR], 2013). According to a market research "