Introduction to Trade Show Marketing

1
Introduction to Trade Show Marketing
2
Where the Marketing Dollars Go
Public Relations 6.4
Direct Mail 9.0
Telemarketing 5.2
Trade Publication/Journal Advertising 11.5
Exhibitions 13.9
Direct Sales/Field Sales 47.2
Source Center for Exhibition Industry Research
The Role of Exhibitions in the Marketing Mix
3
Why Companies Exhibit

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

4
Types of Shows

• Regional vs. National vs. Global
• Regional California Dental Association
• National National Autobody Congress
• Global Hanover

5
Types of Shows

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

6
Categories of Trade Shows

• 48 Trade Shows

36 Combination Shows
11 Consumer Shows
Source 1996 Tradeshow Week Data Book
7
Comparison of Average Size

• Consumer Shows
• 103,841 Net Sq. Feet
• 238 Exhibitors
• 47,522 Attendees

Trade Shows 119,849 Net Sq. Feet 401
Exhibitors 10,385 Attendees
Source Trade Show Bureau A Guide to the U.S.
Exposition Industry
8
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

9
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

10
Leading Trade Shows in the U.S. by Industry
Classification
Number of Shows

• Medical Health Care
• Home Furnishings Interior Design
• Computer Computer Applications
• Education
• Sporting Goods Recreation
• Building Construction
• Agriculture Farming
• Apparel
• Industrial
• Boats

468 277 275 263 253 233 177 153 150 149
11
Top 10 Show Sites
Number of Shows
City

• 1. Atlanta
• 2. Chicago
• 3. Orlando (tie)
• 4. Toronto (tie)
• 5. New York City
• 6. Dallas
• 7. Las Vegas
• 8. Washington, D.C.
• 9. San Francisco
• 10. New Orleans

141 140 128 128 124 113 109 89 83 79
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Who Goes To Shows?

• Previous
• First Time Show
• Job Function Attendees, Attendees,
• Top Management 15 25
• Middle Management 11 9
• Engineer, R D 21 20
• Production 4 2
• Sales Marketing 11 11
• Purchasing 3 2
• Data Processing 7 7
• Professional 9 10
• Consultant 1 3
• Educator 1 1
• All Others 12 8
• Undefined 5 2

Source Center for Exhibition Industry Research
Power of Trade Shows
13
Role in Buying
100 90 80 70 60 50 40 30 20 10
0
85
78
Percentage
55
55
40
35
29
29
22
15
Net Buying Final Specify
Recommend No Influence
Say Supplier
Role
1st Time Attendees Previous Attendees
Source Center for Exhibition Industry Research
Power of Trade Shows
14
Extremely Useful Sources of Purchasing
Information(Total Respondents)

• TRADE SHOWS
  91

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
15
Decision Makers Perceptions of Trade Shows

• Save my company time and money
• by bringing many vendors under one roof at the
  same time.
• Bring me up-to-date
• on the latest trends and developments in my
  industry.
• Allow me to be very productive
• in a concentrated amount of time.
• Provide an invaluable opportunity
• to discuss problems/ideas with professionals in
  my industry.
• Help me to decide
• what products/services to buy.
• Are relied on by my company to keep up
• on important trends and new developments in the
  industry.

85
83
82
80
79
70
Source Center for Exhibition Industry Research
Power of Trade Shows
16
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?

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Companies Involved in Trade Shows

• Facility/ Trade Association or
• Convention Show Organizer
• Visitors Bureau
• Show Decorator Co.
• Member/Attendee Exhibitor
  Drayage Co.
• Shipping Co.
• Exhibit Builder
• Audio-Visual Supplier
• Specialty Advertising Co.
• Advertising Agency

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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.
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How Your Customers Hear About the Show

• Other
• Radio
• Newspaper
• TV
• Word of Mouth
• Exhibitor Invitation
• Article or Editorial
• Trade Publication Ad
• Direct Mail

Percentage
Previous Attendees 1st Time Attendees
Source Center for Exhibition Industry Research
Power of Trade Shows
20
Trade Shows the Marketing Mix
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TRADE SHOWS ARE A COMPLETE MARKETING TOOL!

• MARKETING MIX ELEMENT SHOWS PROVIDE
• PRODUCT New product ideas
• Buyer feedback on new products
• Access to competitive product intros
• PRICE Access to competitive pricing
  info. Buyer reaction to pricing
  programs
• PLACE A place to sell
• PROMOTION Awareness of company and/or
  product Communication of marketing
  message
• Access to media

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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

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WHAT HAPPENS AT THE BOOTH?

• Salespeople meet potential prospects
• Current customers can see whats 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

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SALES VERSUS PROMOTION GOALS

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

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WHEN ARE SALES GOALS IMPORTANT?

• the company is small
• technological change is rapid
• the companys strategy is to be a product
  leader/innovator
• product development times are short
• buying or ownership cycles are short
• companies compete against many competitors

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WHEN ARE PROMOTION GOALS IMPORTANT?

• Trying to change corporate image held by market
• Dont have a corporate image
• Compete in a market composed of a few large
  competitors and many small competitors
• Serve a market composed of a few large customers
• Ownership cycle is long
• Products are customized
• Follow a premium price strategy

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Implementing a Trade Show Program
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ELEMENTS OF TRADE SHOW STRATEGY

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

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Setting Show Goals

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

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Three Stage Process Model of Trade Show
Performance
Exhibition Attendees Target Attendees Target
Attendees Visiting Booth Target Visitors
Contacted Target Contacts Converted to Leads
Stage 1 EFF1 Attraction Efficiency
Stage 2 EFF2 Contact Efficiency
Stage 3 EFF3 Conversion Efficiency
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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

32
Success Factors

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

33
Factors Separating Successful from Unsuccessful
Exhibitors

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

34
Factors Used in Choosing Shows

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

35
WHY USE A THEME?

• UNIVERSAL COMMUNICATION
• DIFFERENT
• FUN
• GIVE A COMPANY HEART
• PROVIDE A FOLLOW-UP HOOK
• FIT ALL BUDGETS

36
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

37
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.

38
GRAPHICS ISSUES

• Eye level usually blocked
• Industrial show feature company name
• Consumer show feature product name
• MUST grab attention

39
Booth Staffing

• Visitor Profile Staff Requirement
• Create a New Direction Technical Upper
  Management
• Know Problem - Dont Technical
• Know Solution
• Know Solution - Shopping Salespeople Technical
• Vendors
• Existing Customers Upper Management Technical
• Press Upper Management PR Staff
• Source Chonko, Tanner, and McKee, Marketing
  Management 1993 p. 40-43.

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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

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EVALUATION OF SUCCESS

• ANECDOTES
• NUMBER OF LEADS
• TRAFFIC
• RETURN ON INVESTMENT
• AUDIENCE MEMORABILITY
• NUMBER OF PRESS PRESENT
• POST-SHOW PRESS PLACEMENTS

42
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

43
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

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Why Customers Dont Buy From Exhibitors
45
Amount of Time a Visitor Will Wait for a Rep in a
Booth
1 minute 41
3 minutes 28
5 minutes 14
Will not wait 6
30 seconds 11
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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