Introduction to Trade Show Marketing Where the

Introduction to Trade Show Marketing

Where the Marketing Dollars Go Direct Mail: 9. 0% Trade Publication/Journal Advertising: 11. 5% Public Relations: 6. 4% Telemarketing: 5. 2% Exhibitions: 13. 9% Direct Sales/Field Sales: 47. 2% Source: Center for Exhibition Industry Research “The Role of Exhibitions in the Marketing Mix”

Why Companies Exhibit Ø Generate qualified sales leads Ø Generate sales Ø Intensify awareness of company or products Ø Introduce a new product or service Ø Create a preference for products and company Ø Find new distributors for their goods Ø Provide dealer support Ø Test prototypes and judge reactions to new products Ø Find new applications for existing goods Ø Recruit sales representatives

Types of Shows Regional vs. National vs. Global Regional: California Dental Association National: National Autobody Congress Global: Hanover

Types of Shows Trade vs. Consumer: Wholesale (or to industrial users) vs. retail. Industrial: Food Marketing Institute Consumer: Boat Shows

Categories of Trade Shows, 1996 48% Trade Shows 36% Combination Shows 11% Consumer Shows Source: 1996 Tradeshow Week Data Book

Comparison of Average Size Consumer Shows Trade Shows 103, 841 Net Sq. Feet 119, 849 Net Sq. Feet 238 Exhibitors 401 Exhibitors 47, 522 Attendees 10, 385 Attendees Source: Trade Show Bureau “A Guide to the U. S. Exposition Industry”

Types of Shows Association vs. Independent Association Shows sponsored by a professional association, and often accompanied by a professional development conference. For example, California Dental Association. Independent Shows sponsored by a for-profit company, may or may not have a professional development conference. For example, American Contract Manufacturers’ Show

Types of Shows Vertical vs. Horizontal: One industry or profession versus many. Vertical: Central Texas Farm and Ranch Show Horizontal: Heart of Texas Business Expo

Leading Trade Shows in the U. S. by Industry Classification Number of Shows Medical & Health Care 468 Home Furnishings & Interior Design 277 Computer & Computer Applications 275 Education 263 Sporting Goods & Recreation 253 Building & Construction 233 Agriculture & Farming 177 Apparel 153 Industrial 150 Boats 149

Top 10 Show Sites for 1996 City Number of Shows 1. Atlanta 141 2. Chicago 140 3. Orlando (tie) 128 4. Toronto (tie) 128 5. New York City 124 6. Dallas 113 7. Las Vegas 109 8. Washington, D. C. 89 9. San Francisco 83 10. New Orleans 79

Who Goes To Shows? Previous Show Job Function First Time Attendees, % Top Management Attendees, % 15 25 Middle Management 11 9 Engineer, R & D 21 20 Production 4 2 Sales & Marketing Source: Center for Exhibition Industry Research “Power of Trade Shows” 11 11

Role in Buying 100 Percentage 90 78 85 80 70 60 50 40 30 20 10 0 55 40 29 Net Buying Influence Final Say 1 st Time Attendees 55 35 29 22 Specify Supplier Recommend Previous Attendees Source: Center for Exhibition Industry Research “Power of Trade Shows” 15 No Role

“Extremely Useful” Sources of Purchasing Information (Total Respondents) TRADE SHOWS Articles in Trade Publications Friends or Business Associates Directories & Catalogs Manufacturer Reps Ads in Trade Publications On-Site Visits Conference & Seminars User Groups In-House Purchase Dept. Outside Consultants Retail Sales Staff Newspapers Other Source: Center for Exhibition Industry Research “Power of Trade Shows” 91%

Decision Makers’ Perceptions of Trade Shows 85% Save my company time and money by bringing many vendors under one roof at the same time. 83% Bring me up-to-date on the latest trends and developments in my industry. 82% Allow me to be very productive in a concentrated amount of time. 80% Provide an invaluable opportunity to discuss problems/ideas with professionals in my industry. 79% Help me to decide what products/services to buy. 70% Are relied on by my company to keep up on important trends and new developments in the industry. Source: Center for Exhibition Industry Research “Power of Trade Shows”

Questions to Ask Yourself • • What do you want to achieve by exhibiting? Who is your target audience? Which industries cater to your target audience? At which shows do your major competitors exhibit? Which shows do your customers attend? Which shows do your suppliers attend? Which are your major industry shows? What is your budget?

Companies Involved in Trade Shows Facility/ Convention & Visitor’s Bureau Trade Association or Show Organizer Show Decorator Co. Member/Attendee Exhibitor Drayage Co. Shipping Co. Exhibit Builder Audio-Visual Supplier Specialty Advertising Co. Advertising Agency

Where the Exhibit Dollars Go Space Rental: 25% Specialty Advertising: 3% Specialty Personnel: 4% Pre-Show Promotion: 4% Miscellaneous: 6% Refurbishing: 10% Transportation: 11% Show Services: 22% Construction: 15% Source: Exhibit Surveys, Inc.

How Your Customers Hear About the Show Other Radio Newspaper TV Word of Mouth Exhibitor Invitation Article or Editorial Trade Publication Ad Percentage Direct Mail Previous Attendees 1 st Time Attendees Source: Center for Exhibition Industry Research “Power of Trade Shows”

Trade Shows & the Marketing Mix

TRADE SHOWS ARE A COMPLETE MARKETING TOOL! MARKETING MIX ELEMENT SHOWS PROVIDE: PRODUCT product ideas New Buyer feedback on new products Access to competitive product intros PRICE competitive pricing info. PLACE sell PROMOTION Access to Buyer reaction to pricing programs A place to Awareness of

WHAT HAPPENS AT THE SHOW? • Seminars - on trends in the industry, new technologies, legal issues, and professional development • Exhibits - of companies’ new products • Press Conferences - called by companies to introduce new products, new marketing programs, or new personnel • Hospitality Functions - from breakfast to a night on the town, companies entertain clients; trade associations sponsor hospitality functions for their members, too

WHAT HAPPENS AT THE BOOTH? • Salespeople meet potential prospects • Current customers can see what’s new as well as resolve any current issues • Executives can meet with potential distributors, suppliers, or partners • Members of the press see new products, interview staff • Competitors gather information from each other

SALES VERSUS PROMOTION GOALS SALES GOALS PROMOTION GOALS Generate sales company or products Generate qualified leads Intensify awareness of Create awareness of a new product, service, or new marketing program Find new distributors company Create a preference for products or Demonstrate product company/products (make sales presentation) Change attitudes toward Provide dealer support

WHEN ARE SALES GOALS IMPORTANT? Øthe company is small Øtechnological change is rapid Øthe company’s strategy is to be a product leader/innovator Øproduct development times are short Øbuying or ownership cycles are short Øcompanies compete against many competitors

WHEN ARE PROMOTION GOALS IMPORTANT? Ø Trying to change corporate image held by market Ø Don’t have a corporate image Ø Compete in a market composed of a few large competitors and many small competitors Ø Serve a market composed of a few large customers Ø Ownership cycle is long Ø Products are customized Ø Follow a premium price strategy

Implementing a Trade Show Program

ELEMENTS OF TRADE SHOW STRATEGY 1. 2. 3. 4. 5. 6. 7. 8. 9. MARKETING OBJECTIVES SHOW SELECTION THEME BOOTH DESIGN STAFFING PRE-SHOW PROMOTION POST-SHOW FOLLOW-UP EVALUATION SYSTEM

Setting Show Goals Ø What is our marketing message? Ø How are we communicating that message in other media? Ø Where are visitors to our booth in their buying process? Ø What do they want to achieve at the show? Ø What actions do we want potential buyers to take as a result of visiting our booth? Ø What image of our company and products do we want buyers to have after visiting with us?

Three Stage Process Model of Trade Show Performance Exhibition Attendees Target Attendees Stage 1: EFF 1 = Attraction Efficiency Target Attendees Visiting Booth Stage 2: EFF 2 = Contact Efficiency Target Visitors Contacted Stage 3: EFF 3 = Conversion Efficiency Target Contacts Converted to Leads

Success Factors Attraction Efficiency: Proportion of target audience that visits the booth. • Larger booths attract higher percentage. • Pre-show & at-show promo leads to higher percentage hospitality suites more effective across industry types effectiveness of various methods varies by industry size of booth staff important

Success Factors Conversion Efficiency: Visitors turned in to qualified leads. function of staff training pre-show promo quality of give-aways

Factors Separating Successful from Unsuccessful Exhibitors ü Successful exhibitors set quantifiable, written objectives. ü Successful exhibitors depend more on trade shows. ü Successful exhibitors more likely to integrate shows with trade advertising, direct mail and PR efforts. ü No difference in integration of field sales force into show.

Factors Used in Choosing Shows 1. 2. 3. 4. 5. Attendance/Lead Performance Marketing Synergy Participation Costs Staffing Capability Show Environment Source: Kijewski, Yoon, and Young (IMM 1993)

WHY USE A THEME? ØUNIVERSAL COMMUNICATION ØDIFFERENT ØFUN ØGIVE A COMPANY “HEART” ØPROVIDE A FOLLOW-UP HOOK ØFIT ALL BUDGETS

CRITICAL ELEMENTS OF BOOTH DESIGN LOGISTICS ISSUES • FLEXIBILITY • WEIGHT • EASE OF INSTALLATION AND DISMANTLE • OWN OR RENT? FUNCTIONALITY ISSUES • FIT WITH OBJECTIVES • ATTENTION-GETTING ABILITY • TRAFFIC FLOW • PRIVATE PLACES

Calculating Optimal Booth Size Minimum Booth Space = Attendance X Product Interest % X AIF X 50 Show Hours X Salesperson Rate Attendance Total attendance less exhibitor personnel, students, and spouses Product Interest Projected % of attendees interested in seeing your product categories AIF (Audience Interest Factor) % of audience that tend to visit many exhibits. Show hours Total number of hours the show is open Salesperson Rate # of visitors a salesperson can talk to in an hour Add space required for products, storage & conference rooms to minimum space calculated using the formula.

GRAPHICS ISSUES ØEye level usually blocked ØIndustrial show – feature company name ØConsumer show – feature product name ØMUST grab attention

Booth Staffing Visitor Profile Staff Requirement Create a New Direction Technical & Upper Management Know Problem - Don’t Know Solution Technical Know Solution - Shopping Vendors Salespeople & Technical Existing Customers Technical Upper Management & Press Management & PR Staff Source: Chonko, Tanner, and Mc. Kee, Marketing Management 1993 p. 40 -43. Upper

POST-SHOW FOLLOW-UP GRADE QUALITY OF LEAD HOT TO BUY NOW SALESPERSON CALL MAY BUY SOON – TELEMARKETER CALL MAY BUY IN THE NEXT YEAR – DIRECT MAIL WILL NEVER BUY – NO FOLLOW-UP

EVALUATION OF SUCCESS ØANECDOTES ØNUMBER OF LEADS ØTRAFFIC ØRETURN ON INVESTMENT ØAUDIENCE MEMORABILITY ØNUMBER OF PRESS PRESENT ØPOST-SHOW PRESS PLACEMENTS

Average Cost of Closing a Sale without Developing Leads at Trade Shows Average Cost of Sales Calls $ 292 Avg. # of calls to close sale x 3. 7 Cost of closing as in field $ 1080

Avg. Cost of Closing a Sale with Leads Developed at Trade Shows Average Cost of Sales Calls $ 292 Avg. # of calls to close sale 0. 8 _________________ Avg. cost per visitor reached $ 185 Additional cost of field sales calls ($ 292 * 0. 8) $ 234 Cost of closing w/TS leads $ 419 Avg Amt Saved /Closed Sale $ 661

Why Customers Don’t Buy From Exhibitors 42% 28% 20% 16% Salesperson didn’t understand needs No one available to assist No follow up Didn’t trust salesperson

Amount of Time a Visitor Will Wait for a Rep in a Booth 1 minute 41% 5 minutes 14% 3 minutes 28% 30 seconds 11% Will not wait 6%

What Should A Booth Staffer Do? 1. Greet Quickly 2. Determine Interest 3. Pass Along to Appropriate Party or Qualify as Prospect 4. Demonstrate Product if Appropriate 5. Close for appropriate follow-up