Sales promotion trade shows, events management and sponsorship


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Sales promotion trade shows, events management and sponsorship

  1. 1. Trade shows, eventsmanagement and sponsorship Presentation By Ben Mugerwa
  2. 2. overview• There are a variety of large scale events designed to communicate the benefits of the brand to the trade and consumer audiences alike• Increasing use is being made of trade shows and exhibitions to create events that can be used to achieve cost-effective communication to the members of the trade• Equally, sponsored events are gaining momentum to extend brand values and communicate, in many instances, those values to a world-wide audience
  3. 3. • The role of cause related marketing, in which a company or brand links with a charitable organisation to develop promotional activities
  4. 4. Session objectives• To consider the roles of trade shows and exhibitions• To examine the functions of events marketing and sponsorships• To appreciate the growth and scale of sponsorship activities• To understand the increasing role and importance of cause related marketing
  5. 5. Trade shows and exhibitions• Many companies participate in trade shows, professional shows and other events that provide them with a forum to promote their products and services• Some events represent a major opportunity to establish and maintain contact with trade.• Trade shows provide the opportunity to affect multiple phases of the industrial buying process in one location• They can create awareness in new prospects, reinforce existing customer relationships, provide product demonstrations for evaluation, establishing relationship between vendors and prospects and allow sales of products on the spot
  6. 6. • Trade shows significantly influence the industrial buying process during the need recognition and vendor evaluation stages of the purchase process• Pre-show promotion: is necessary.
  7. 7. The advantages of trade shows• A message delivered to a large number of qualified interested people• The introduction of new products to a large number of people. Many companies use major shows as the forum for the launch of new products eg cars are often launched at international motor shows, computers etc• Trade shows provide the opportunity to identify potential customers• Enhancing goodwill• Gaining free company publicity. Made representative attend the show
  8. 8. • Enhancing the corporate image among competitors, customers, industry and the media• Gathering competitor information• Selling at show itself• Gaining access to key decision makers• Disseminating facts about products or services• Servicing current account problems: opportunity to deal face to face with customers will often serve to alleviate problems that they may be having with the organisation
  9. 9. Trade show objectives• To enhance company/brand awareness amongst trade audience• To introduce new products• To reach customers-cost effectively• To generate additional sales• To identify sales opportunities/leads• To enhance relationships with existing customers• To gain information about competitive companies
  10. 10. The negatives of trade shows• Herbig et al[1998] suggest that trade shows have their downside• Tactical rather than strategic orientation might account for finding that only 23% of executives think trade show effort is very effective• This poor opinion of trade shows by executives is often exacerbated by the fact only 56% of firms participating in trade shows have specific objectives before participating in a given show• Only 46% of companies set goals before they exhibit, half are wishy-washy and one out of three exhibitors do not set quantifiable objectives
  11. 11. • Few exhibitors do any pre-show promotion to ensure that their key prospects reach their booth• Booth personnel training has improved but leaves much to be desired and lead qualification, tracking and return on investment evaluation are functions unexplored by most exhibitors• Barely 17% of all exhibitors provide their management executives with return on investment [ROI] data• Many firms have failed to measure quantifiably the return on their trade-show investment
  12. 12. • Other disadvantages with trade shows include taking sales people away from their territories, the crowded, confusing environment found in large shows, labour problems and unions, proliferation and excessive frequency of trade shows and high proportion of sight seers• Unknown effectiveness on return per shilling spent and difficulty of measuring efficiency, high and rising costs of participation• There is the cost of producing the company stand, maintaining continuous staff presence to meet both existing and potential customers, the cost of providing hospitality etc
  13. 13. The evaluation of trade shows• Substantial sums of money are devoted to exhibitions• Trade exhibitions are clearly regarded as an important tool of marketing communications• Despite that, few exhibitors have an accurate way of evaluating the return on their trade-show investments• Blythe[1999] points out that only a minority of visitors to trade exhibitions have a purchasing role• Their attendance is predicted on information gathering, particularly about new products
  14. 14. • He concludes that few exhibitors adopt a market- oriented approach towards their exhibition activities• The measurement of trade show effectiveness is made more difficult as a result of a number of factors• First, a firm`s participation in trade shows result in direct sales effects as well as attitudinal effects[creating product awareness and interest, building image and reputation, developing a favourable corporate image and handling customer complaints]• Second, the trade show is typically combined with other communication activities such as direct marketing, advertising and personal selling
  15. 15. • It is difficult to measure the contribution of each of the individual components• Different participants have different expectations of the benefits of trade show participation. Some are interested in generating leads, others in promoting their corporate image,whilst others seek to maintain contact with current customers
  16. 16. • According to Blythe[1999], ther e is an anomaly in that few large firms making a large commitment to exhibitions actually use rigorous research to confirm the success of the exercise• It is clearly important to define precisely what objectives are to be met by participants in such events and how they are to be measured
  17. 17. • Faria and Dicknson[1986] rated 34 trade show selection criteria on a nine-point scale• Their results indicated the firms that exhibited were concerned primarily with audience quality, audience quantity, display location and logistical aspects in that order• Another measure is exhibit efficiency, that is the percentage potential audience that receives person to person contact at the company`s exhibit• Other measures might include:• Personnel performance-the quality and the number of exhibit personnel on duty at the booth
  18. 18. • Product interest-the percentage of booth visitors who said they were interested in seeing the company`s type of products/services• Buying influence-the percentage of an average exhibit`s visitors who claimed a buying influence for its products/services• Buying plans-the % of an exhibit`s visitors who said they were planning to buy the company`s products/services as a result of what they saw at the show• Memorability-the percentage of visitors who stopped at the exhibit and remember doing so
  19. 19. Other measures of effectiveness generally used• The number of leads generated• The quantity of actual sales that result from these leads• The cost per lead generated• Feedback about the show given to sales force• The amount of literature distributed at the show
  20. 20. Event marketing and sponsorships• The term event marketing is used to describe a wide range of activities in which a brand is linked to some form of event• Certainly, for many organisations, such activity is an extension of their normal sales promotion planning• Elsewhere, however it takes on greater significance, especially within the strategic framework of the brand and some companies have an individual or division specifically responsible for managing events in which the company is involved
  21. 21. • In some intsnces, this activity may be designed to associate the brand with a particular lifestyle and augment the barnd image• When marketers associate their brands with events that already provide an emotional appeal, they may be able to associate these feelings with the brand• By careful selection of the sponsored event, marketers can target activities that appeal to specific segments of the market• Robinsons, which has long been associated with tennis, has mounted a road show to strengthen its ties• The play tennis roadshow, which coincides with the Wimbledon championships event, will run for 4 months
  22. 22. • Players can test their serve at some 40 locations, including supermarkets and shopping centres with coaches on hand to give advice.• Prize draw runs alongside the event with one participant at each event given the chance to win a tennis racket.• One winner will receive shs 500,000= worth of tennis coaching• Event is created especially for the purpose of promoting the brand• Events are used for the purpose of distributing samples or information about the brand to potential consumers• Some events are designed to forge links with charitable organisations, others to commemorate specific moments in brand`s history, such as anniversary etc
  23. 23. Issues to consider in identification of an event• Is the event compatible with the image[actual or desired] or the brand or the company sponsoring it? Events can be used to reinforce a brand`s existing image or assist in the process of changing that image if it is felt to be in appropriate or out of date• Sponsorship has its own characteristics that contribute to making it commercially attractive to corporations aiming to build favourable associations and identities for their brands
  24. 24. • Will th event attract an appropriate segment of the target audience• Does it offer potential for trade entertainment?• Will the event provide exclusivity of association or will it be shared with other sponsors[some of whom might be competitors]?• Is it intended as one-off or a long term association?• Will the event attract media interest and create publicity for the brand?
  25. 25. sponsorship• a major area that is often included within sales promotion armoury is that of sponsorship• Erdogan and Kitchen [1998] define sponsorship as the practice of promoting a company`s interest and its brand by tying them to a specific and meaningful related event, organisation or charitable cause• It has become an increasingly popular medium of corporate communication especially among companies operating in consumer markets• Sponsorship is a versatile method of communication
  26. 26. • It is used to achieve a variety of objectives• It can persuade indirectly and by association• Many companies now sponsor events routinely as part of their promotional activities, however, in many instances the objectives tend to be vague• Although various definitions of sponsorship are given, they recognize that sponsorship is first and foremost a commercial activity
  27. 27. • Sponsorship is often an extension of event management, although it may take on a variety of different forms• An event such as the olympics represents a very large expenditure for corporate sponsors, but provides a superb marketing platform• Sponsorship if it is associated with human causes, philanthropic is likely to create positive feeling among consumers• These positive emotional reactions would then extend to attitudes towards the sponsor or the brand
  28. 28. Objectives of sponsorship• Enhancing corporate image• Increasing awareness of brands• Stimulating the sales of products or services• Leveraging corporate good will• Sponsorship is the underwriting of a special event with the object of supporting organisational objectives according to Javalgi[1994]
  29. 29. Evaluating sponsorship• Kover[2001] proposes that pay-off can be measured by”• Attitudinal effects• Direct market effects• The impact on stock prices
  30. 30. Methods of evaluation of sponsorship activities• Monitoring the quality and nature of the media coverage obtained from sponsored event• Estimating direct and indirect audiences• Tracking techniques can be used to evaluate the awareness, familiarity and preferences engendered by sponsorship based on consumer surveys
  31. 31. ambushing• An official sponsorship becomes increasingly expensive to some companies prohibitively so• Some seek alternative routes towards associating their brands with major events• In some instances companies purport to be the sponsors of an event without paying fees associated with the event• By having a strong presence in the area outside of the event, eg outside football stadiums or atheletics tracks, manufacturers can associate their brands with the event taking place inside
  32. 32. • Ambush occurs when companies try to create the perception that they are associated with the an event without actually being sponsor• Cause related marketing is an area of promotional activity that is receiving increasing attention and support• The purpose is to associate the company with some form of charity activity in order to create positive attitude towards itself through that association
  33. 33. Impacts of cause related marketing• Enhancing reputation and image• Making corporate social responsibility and corporate community investment visible• Increased loyalty• Building relationships• Aiding differentiation• Increasing sales• Generating awareness