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Trade shows, events
management and sponsorship
        Presentation
             By
        Ben Mugerwa
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
• The role of cause related marketing, in
  which a company or brand links with a
  charitable organisation to develop
  promotional activities
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
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
• 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.
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
• 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
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
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
• 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
• 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
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
• 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
• 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
• 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
• 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
• 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
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
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
• 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
• 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
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
• 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?
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
• 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
• 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
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]
Evaluating sponsorship
• Kover[2001] proposes that pay-off can be
  measured by”
• Attitudinal effects
• Direct market effects
• The impact on stock prices
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
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
• 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
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

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Trade Shows, Event Management and Sponsorship Optimization

  • 1. Trade shows, events management and sponsorship Presentation By Ben Mugerwa
  • 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. • The role of cause related marketing, in which a company or brand links with a charitable organisation to develop promotional activities
  • 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. 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. • 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. 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. • 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. 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. 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. • 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. • 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. 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. • 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. • 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. • 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. • 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. • 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. 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. 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. • 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. • 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. 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. • 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. 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. • 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. • 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. 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. Evaluating sponsorship • Kover[2001] proposes that pay-off can be measured by” • Attitudinal effects • Direct market effects • The impact on stock prices
  • 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. 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. • 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. 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