Introduction to Trade Show Marketing

Where the Marketing Dollars Go

Trade Publication/Journal

Advertising: 11.5%

Exhibitions: 13.9%

Telemarketing: 5.2%

Public Relations: 6.4%

Direct Sales/Field Sales: 47.2%

Source: Center for Exhibition Industry Research “The Role of Exhibitions in the Marketing Mix”

Direct Mail: 9.0%

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

Types of Shows

Regional vs. National vs. Global

Regional: California Dental Association

National: National Autobody Congress

Global: Hanover

Types of ShowsTrade vs. Consumer:

Wholesale (or to industrial users) vs. retail.

Industrial:

Food Marketing Institute

Consumer:

Boat Shows

Categories of Trade Shows

48% Trade Shows

36% Combination Shows

11% Consumer Shows

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

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

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

Number ofShows

Top 10 Show Sites

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

Number ofShowsCity

Who Goes To Shows?

Previous First Time Show

Job Function Attendees, % Attendees, %

Top Management 15 25Middle 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”

Role in BuyingP

erce

nta

ge

Net Buying Final Specify Recommend No

Influence Say Supplier Role

1st Time Attendees Previous Attendees

100

90

80

70

60

50

40

30

20

10

0

7885

29

40

29

35

55 55

22 15

Source: Center for Exhibition Industry Research “Power of Trade Shows”

0 20 40 60 80 100

“Extremely Useful” Sources of Purchasing Information(Total Respondents)

TRADE SHOWS 91%

Articles in Trade Publications

Friends or Business Associates

User Groups

Conference & Seminars

On-Site Visits

Ads in Trade Publications

Directories & Catalogs

Manufacturer Reps

Retail Sales Staff

Outside Consultants

In-House Purchase Dept.

Other

Newspapers

Source: Center for Exhibition Industry Research “Power of Trade Shows”

Decision Makers’ Perceptions of Trade Shows

Save my company time and moneyby bringing many vendors under one roof at the same time.

Bring me up-to-dateon the latest trends and developments in my industry.

Allow me to be very productivein a concentrated amount of time.

Provide an invaluable opportunityto discuss problems/ideas with professionals in my industry.

Help me to decidewhat products/services to buy.

Are relied on by my company to keep upon important trends and new developments in the industry.

85%

70%

79%

80%

82%

83%

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/ Trade Association or

Convention & Show Organizer

Visitor’s Bureau

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%

Show Services: 22%

Construction: 15%

Transportation: 11%

Refurbishing: 10%

Miscellaneous: 6%

Pre-Show Promotion: 4%

Specialty Personnel: 4%Specialty Advertising: 3%

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

Direct Mail0 20 40 60

Previous Attendees 1st Time Attendees

Percentage

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 New product ideasBuyer feedback on new productsAccess 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

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 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

WHEN ARE SALES GOALS IMPORTANT?

the company is smalltechnological change is rapidthe company’s strategy is to be a

product leader/innovatorproduct development times are shortbuying or ownership cycles are shortcompanies compete against many

competitors

WHEN ARE PROMOTION GOALS IMPORTANT?

Trying to change corporate image held by market

Don’t have a corporate imageCompete in a market composed of a few large

competitors and many small competitorsServe a market composed of a few large

customersOwnership cycle is longProducts are customizedFollow a premium price strategy

Implementing a Trade Implementing a Trade Show ProgramShow Program

ELEMENTS OF TRADE SHOW STRATEGY

1. MARKETING OBJECTIVES 2. SHOW OBJECTIVES3. SHOW SELECTION4. THEME5. BOOTH DESIGN6. STAFFING7. PRE-SHOW PROMOTION8. POST-SHOW FOLLOW-UP9. EVALUATION SYSTEM

Setting Show GoalsWhat 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?

Three Stage Process Model of Trade Show Performance

Exhibition AttendeesTarget Attendees

Target AttendeesVisiting Booth

Target Visitors Contacted

Target ContactsConverted to Leads

Stage 1: EFF1 =AttractionEfficiency

Stage 2: EFF2 =ContactEfficiency

Stage 3: EFF3 =ConversionEfficiency

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

percentagehospitality suites more effective across industry types

effectiveness of various methods varies by industry

size of booth staff important

Conversion Efficiency:Visitors turned in to qualified leads.

function of staff training

pre-show promo

quality of give-aways

Success Factors

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.

Factors Used in Choosing Shows

1. Attendance/Lead Performance

2. Marketing Synergy

3. Participation Costs

4. Staffing Capability

5. Show Environment

WHY USE A THEME?UNIVERSAL COMMUNICATIONDIFFERENTFUNGIVE A COMPANY “HEART”PROVIDE A FOLLOW-UP HOOKFIT 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 SizeMinimum 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 yourproduct 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 ISSUESEye level usually blockedIndustrial show – feature company nameConsumer show – feature product name

MUST grab attention

Booth StaffingVisitor 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 Upper Management & Technical

Press Upper Management & PR Staff

POST-SHOW FOLLOW-UP GRADE THE QUALITY OF THE 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

ANECDOTESNUMBER OF LEADSTRAFFICRETURN ON INVESTMENTAUDIENCE MEMORABILITYNUMBER OF PRESS PRESENTPOST-SHOW PRESS PLACEMENTS

Average Cost of Closing a Sale without Developing Leads at Trade Shows

Average Cost

of Sales Calls $ 357

Avg. # of calls

to close sale x 3.7

Cost of closing

as in field $ 1321

Avg. Cost of Closing a Sale with Leads Developed at Trade Shows

Average Cost of Sales Calls $ 357

Avg. # of calls to close sale with trade show leads 0.8

Avg. cost per visitor reached $ 300

Additional cost of field sales calls ($ 357 * 0.8) $ 286

Cost of closing with Trade Show leads $ 586

Cost of closing without Trade Show leads $1321

Average Amount Saved per Closed Sale $ 735

Why Customers Don’t Buy From Exhibitors

Salespersondidn’tunderstandneeds

No one availableto assist

No follow up

Didn’t trustsalesperson

42%

28%

20%16%

Amount of Time a Visitor Will Wait for a Rep in a Booth

1 minute41%

3 minutes28%

5 minutes14%

Will not wait6%

30 seconds11%

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