Introduction to Trade Show Marketing

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  • You make some good points. Trade shows are about much more than just showing up and having a booth. Identifiable goals, pre-event marketing, engaged booth staff, giveaways and post-event follow-up all play an important role in successful trade show participation.
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Introduction to Trade Show Marketing

  1. 1. Introduction to Trade Show Marketing
  2. 2. 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%
  3. 3. Why Companies Exhibit <ul><li>Generate qualified sales leads </li></ul><ul><li>Generate sales </li></ul><ul><li>Intensify awareness of company or products </li></ul><ul><li>Introduce a new product or service </li></ul><ul><li>Create a preference for products and company </li></ul><ul><li>Find new distributors for their goods </li></ul><ul><li>Provide dealer support </li></ul><ul><li>Test prototypes and judge reactions to new products </li></ul><ul><li>Find new applications for existing goods </li></ul><ul><li>Recruit sales representatives </li></ul>
  4. 4. Types of Shows <ul><li>Regional vs. National vs. Global </li></ul><ul><li>Regional: California Dental Association </li></ul><ul><li>National: National Autobody Congress </li></ul><ul><li>Global: Hanover </li></ul>
  5. 5. Types of Shows <ul><li>Trade vs. Consumer: </li></ul><ul><li>Wholesale (or to industrial users) vs. retail. </li></ul><ul><li>Industrial: </li></ul><ul><li>Food Marketing Institute </li></ul><ul><li>Consumer: </li></ul><ul><li>Boat Shows </li></ul>
  6. 6. Categories of Trade Shows, 1996 <ul><li>48% Trade Shows </li></ul>36% Combination Shows 11% Consumer Shows Source: 1996 Tradeshow Week Data Book
  7. 7. Comparison of Average Size <ul><li>Consumer Shows </li></ul><ul><li>103,841 Net Sq. Feet </li></ul><ul><li>238 Exhibitors </li></ul><ul><li>47,522 Attendees </li></ul>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. 8. Types of Shows <ul><li>Association vs. Independent </li></ul><ul><li>Association </li></ul><ul><li>Shows sponsored by a professional association, and often accompanied by a professional development conference. For example, California Dental Association. </li></ul><ul><li>Independent </li></ul><ul><li>Shows sponsored by a for-profit company, may or may not have a professional development conference. For example, American Contract Manufacturers’ Show </li></ul>
  9. 9. Types of Shows <ul><li>Vertical vs. Horizontal: </li></ul><ul><li>One industry or profession versus many. </li></ul><ul><li>Vertical: </li></ul><ul><li>Central Texas Farm and Ranch Show </li></ul><ul><li>Horizontal: </li></ul><ul><li>Heart of Texas Business Expo </li></ul>
  10. 10. Leading Trade Shows in the U.S. by Industry Classification <ul><li>Medical & Health Care </li></ul><ul><li>Home Furnishings & Interior Design </li></ul><ul><li>Computer & Computer Applications </li></ul><ul><li>Education </li></ul><ul><li>Sporting Goods & Recreation </li></ul><ul><li>Building & Construction </li></ul><ul><li>Agriculture & Farming </li></ul><ul><li>Apparel </li></ul><ul><li>Industrial </li></ul><ul><li>Boats </li></ul>468 277 275 263 253 233 177 153 150 149 Number of Shows
  11. 11. Top 10 Show Sites for 1996 <ul><li>1. Atlanta </li></ul><ul><li>2. Chicago </li></ul><ul><li>3. Orlando (tie) </li></ul><ul><li>4. Toronto (tie) </li></ul><ul><li>5. New York City </li></ul><ul><li>6. Dallas </li></ul><ul><li>7. Las Vegas </li></ul><ul><li>8. Washington, D.C. </li></ul><ul><li>9. San Francisco </li></ul><ul><li>10. New Orleans </li></ul>141 140 128 128 124 113 109 89 83 79 Number of Shows City
  12. 12. Who Goes To Shows? <ul><li> Previous </li></ul><ul><li> First Time Show </li></ul><ul><li>Job Function Attendees, % Attendees, % </li></ul><ul><li>Top Management 15 25 </li></ul><ul><li>Middle Management 11 9 </li></ul><ul><li>Engineer, R & D 21 20 </li></ul><ul><li>Production 4 2 </li></ul><ul><li>Sales & Marketing 11 11 </li></ul><ul><li>Purchasing 3 2 </li></ul><ul><li>Data Processing 7 7 </li></ul><ul><li>Professional 9 10 </li></ul><ul><li>Consultant 1 3 </li></ul><ul><li>Educator 1 1 </li></ul><ul><li>All Others 12 8 </li></ul><ul><li>Undefined 5 2 </li></ul>Source: Center for Exhibition Industry Research “Power of Trade Shows”
  13. 13. Role in Buying Perce ntage 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 78 85 29 40 29 35 55 55 22 15 Source: Center for Exhibition Industry Research “Power of Trade Shows”
  14. 14. “ Extremely Useful” Sources of Purchasing Information (Total Respondents) <ul><li>TRADE SHOWS 91% </li></ul>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”
  15. 15. Decision Makers’ Perceptions of Trade Shows <ul><li>Save my company time and money </li></ul><ul><li>by bringing many vendors under one roof at the same time. </li></ul><ul><li>Bring me up-to-date </li></ul><ul><li>on the latest trends and developments in my industry. </li></ul><ul><li>Allow me to be very productive </li></ul><ul><li>in a concentrated amount of time. </li></ul><ul><li>Provide an invaluable opportunity </li></ul><ul><li>to discuss problems/ideas with professionals in my industry. </li></ul><ul><li>Help me to decide </li></ul><ul><li>what products/services to buy. </li></ul><ul><li>Are relied on by my company to keep up </li></ul><ul><li>on important trends and new developments in the industry. </li></ul>85% 70% 79% 80% 82% 83% Source: Center for Exhibition Industry Research “Power of Trade Shows”
  16. 16. Questions to Ask Yourself <ul><li>What do you want to achieve by exhibiting? </li></ul><ul><li>Who is your target audience? </li></ul><ul><li>Which industries cater to your target audience? </li></ul><ul><li>At which shows do your major competitors exhibit? </li></ul><ul><li>Which shows do your customers attend? </li></ul><ul><li>Which shows do your suppliers attend? </li></ul><ul><li>Which are your major industry shows? </li></ul><ul><li>What is your budget? </li></ul>
  17. 17. Companies Involved in Trade Shows <ul><li>Facility/ Trade Association or </li></ul><ul><li>Convention & Show Organizer </li></ul><ul><li>Visitor’s Bureau </li></ul><ul><li> Show Decorator Co. </li></ul><ul><li>Member/Attendee Exhibitor Drayage Co. </li></ul><ul><li> Shipping Co. </li></ul><ul><li> Exhibit Builder </li></ul><ul><li> Audio-Visual Supplier </li></ul><ul><li> Specialty Advertising Co. </li></ul><ul><li> Advertising Agency </li></ul>
  18. 18. Where the Exhibit Dollars Go <ul><li>Space Rental: 25% </li></ul>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.
  19. 19. How Your Customers Hear About the Show <ul><li>Other </li></ul><ul><li>Radio </li></ul><ul><li>Newspaper </li></ul><ul><li>TV </li></ul><ul><li>Word of Mouth </li></ul><ul><li>Exhibitor Invitation </li></ul><ul><li>Article or Editorial </li></ul><ul><li>Trade Publication Ad </li></ul><ul><li>Direct Mail </li></ul>Previous Attendees 1st Time Attendees Percentage Source: Center for Exhibition Industry Research “Power of Trade Shows”
  20. 20. Trade Shows & the Marketing Mix
  21. 21. TRADE SHOWS ARE A COMPLETE MARKETING TOOL! <ul><li>MARKETING MIX ELEMENT SHOWS PROVIDE: </li></ul><ul><li>PRODUCT New product ideas </li></ul><ul><li>Buyer feedback on new products </li></ul><ul><li>Access to competitive product intros </li></ul><ul><li>PRICE Access to competitive pricing info. Buyer reaction to pricing programs </li></ul><ul><li>PLACE A place to sell </li></ul><ul><li>PROMOTION Awareness of company and/or product Communication of marketing message </li></ul><ul><li>Access to media </li></ul>
  22. 22. WHAT HAPPENS AT THE SHOW? <ul><li>Seminars - on trends in the industry, new technologies, legal issues, and professional development </li></ul><ul><li>Exhibits - of companies’ new products </li></ul><ul><li>Press Conferences - called by companies to introduce new products, new marketing programs, or new personnel </li></ul><ul><li>Hospitality Functions - from breakfast to a night on the town, companies entertain clients; trade associations sponsor hospitality functions for their members, too </li></ul>
  23. 23. WHAT HAPPENS AT THE BOOTH? <ul><li>Salespeople meet potential prospects </li></ul><ul><li>Current customers can see what’s new as well as resolve any current issues </li></ul><ul><li>Executives can meet with potential distributors, suppliers, or partners </li></ul><ul><li>Members of the press see new products, interview staff </li></ul><ul><li>Competitors gather information from each other </li></ul>
  24. 24. SALES VERSUS PROMOTION GOALS <ul><li>SALES GOALS PROMOTION GOALS </li></ul><ul><li>Generate sales Intensify awareness of company or products </li></ul><ul><li>Generate qualified leads Create awareness of a new product, service, or new marketing program </li></ul><ul><li>Find new distributors Create a preference for products or company </li></ul><ul><li>Demonstrate product Change attitudes toward company/products </li></ul><ul><li>(make sales presentation) </li></ul><ul><li>Provide dealer support </li></ul>
  25. 25. WHEN ARE SALES GOALS IMPORTANT? <ul><li>the company is small </li></ul><ul><li>technological change is rapid </li></ul><ul><li>the company’s strategy is to be a product leader/innovator </li></ul><ul><li>product development times are short </li></ul><ul><li>buying or ownership cycles are short </li></ul><ul><li>companies compete against many competitors </li></ul>
  26. 26. WHEN ARE PROMOTION GOALS IMPORTANT? <ul><li>Trying to change corporate image held by market </li></ul><ul><li>Don’t have a corporate image </li></ul><ul><li>Compete in a market composed of a few large competitors and many small competitors </li></ul><ul><li>Serve a market composed of a few large customers </li></ul><ul><li>Ownership cycle is long </li></ul><ul><li>Products are customized </li></ul><ul><li>Follow a premium price strategy </li></ul>
  27. 27. Implementing a Trade Show Program
  28. 28. ELEMENTS OF TRADE SHOW STRATEGY <ul><li>MARKETING OBJECTIVES </li></ul><ul><li>SHOW OBJECTIVES </li></ul><ul><li>SHOW SELECTION </li></ul><ul><li>THEME </li></ul><ul><li>BOOTH DESIGN </li></ul><ul><li>STAFFING </li></ul><ul><li>PRE-SHOW PROMOTION </li></ul><ul><li>POST-SHOW FOLLOW-UP </li></ul><ul><li>EVALUATION SYSTEM </li></ul>
  29. 29. Setting Show Goals <ul><li>What is our marketing message? </li></ul><ul><li>How are we communicating that message in other media? </li></ul><ul><li>Where are visitors to our booth in their buying process? </li></ul><ul><li>What do they want to achieve at the show? </li></ul><ul><li>What actions do we want potential buyers to take as a result of visiting our booth? </li></ul><ul><li>What image of our company and products do we want buyers to have after visiting with us? </li></ul>
  30. 30. 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
  31. 31. Success Factors <ul><li>Attraction Efficiency : Proportion of target audience that visits the booth. </li></ul><ul><li>Larger booths attract higher percentage. </li></ul><ul><li>Pre-show & at-show promo leads to higher </li></ul><ul><li>percentage </li></ul><ul><ul><li>hospitality suites more effective across industry types </li></ul></ul><ul><ul><li>effectiveness of various methods varies by industry </li></ul></ul><ul><ul><li>size of booth staff important </li></ul></ul>
  32. 32. <ul><li>Conversion Efficiency : </li></ul><ul><li>Visitors turned in to qualified leads. </li></ul><ul><ul><li>function of staff training </li></ul></ul><ul><ul><li>pre-show promo </li></ul></ul><ul><ul><li>quality of give-aways </li></ul></ul>Success Factors
  33. 33. Factors Separating Successful from Unsuccessful Exhibitors <ul><li>Successful exhibitors set quantifiable, written objectives. </li></ul><ul><li>Successful exhibitors depend more on trade shows. </li></ul><ul><li>Successful exhibitors more likely to integrate shows with trade advertising, direct mail and PR efforts. </li></ul><ul><li>No difference in integration of field sales force into show. </li></ul>
  34. 34. Factors Used in Choosing Shows <ul><li>1. Attendance/Lead Performance </li></ul><ul><li>2. Marketing Synergy </li></ul><ul><li>3. Participation Costs </li></ul><ul><li>4. Staffing Capability </li></ul><ul><li>5. Show Environment </li></ul><ul><li>Source: Kijewski, Yoon, and Young (IMM 1993) </li></ul>
  35. 35. WHY USE A THEME? <ul><li>UNIVERSAL COMMUNICATION </li></ul><ul><li>DIFFERENT </li></ul><ul><li>FUN </li></ul><ul><li>GIVE A COMPANY “HEART” </li></ul><ul><li>PROVIDE A FOLLOW-UP HOOK </li></ul><ul><li>FIT ALL BUDGETS </li></ul>
  36. 36. CRITICAL ELEMENTS OF BOOTH DESIGN <ul><li>LOGISTICS ISSUES </li></ul><ul><li>FLEXIBILITY </li></ul><ul><li>WEIGHT </li></ul><ul><li>EASE OF INSTALLATION AND DISMANTLE </li></ul><ul><li>OWN OR RENT? </li></ul><ul><li>FUNCTIONALITY ISSUES </li></ul><ul><li>FIT WITH OBJECTIVES </li></ul><ul><li>ATTENTION-GETTING ABILITY </li></ul><ul><li>TRAFFIC FLOW </li></ul><ul><li>PRIVATE PLACES </li></ul>
  37. 37. Calculating Optimal Booth Size <ul><li>Minimum Booth Space = Attendance X Product Interest % X AIF X 50 </li></ul><ul><li> Show Hours X Salesperson Rate </li></ul><ul><li>Attendance Total attendance less exhibitor personnel, </li></ul><ul><li>students, and spouses </li></ul><ul><li>Product Interest Projected % of attendees interested in seeing your </li></ul><ul><li>product categories </li></ul><ul><li>AIF ( Audience Interest Factor ) % of audience that tend to visit many exhibits. </li></ul><ul><li>Show hours Total number of hours the show is open </li></ul><ul><li>Salesperson Rate # of visitors a salesperson can talk to in an hour </li></ul><ul><li>Add space required for products, storage & conference rooms to minimum space calculated using the formula. </li></ul>
  38. 38. GRAPHICS ISSUES <ul><li>Eye level usually blocked </li></ul><ul><li>Industrial show – feature company name </li></ul><ul><li>Consumer show – feature product name </li></ul><ul><li>MUST grab attention </li></ul>
  39. 39. Booth Staffing <ul><li>Visitor Profile Staff Requirement </li></ul><ul><li>Create a New Direction Technical & Upper Management </li></ul><ul><li>Know Problem - Don’t Technical </li></ul><ul><li>Know Solution </li></ul><ul><li>Know Solution - Shopping Salespeople & Technical </li></ul><ul><li>Vendors </li></ul><ul><li>Existing Customers Upper Management & Technical </li></ul><ul><li>Press Upper Management & PR Staff </li></ul><ul><li>Source: Chonko, Tanner, and McKee, Marketing Management 1993 p. 40-43. </li></ul>
  40. 40. POST-SHOW FOLLOW-UP <ul><li>GRADE QUALITY OF LEAD </li></ul><ul><li> HOT TO </li></ul><ul><li> BUY NOW - </li></ul><ul><li> SALESPERSON CALL </li></ul><ul><li> MAY BUY SOON – </li></ul><ul><li> TELEMARKETER CALL </li></ul><ul><li> MAY BUY IN THE NEXT YEAR – </li></ul><ul><li> DIRECT MAIL </li></ul><ul><li> WILL NEVER BUY – </li></ul><ul><li> NO FOLLOW-UP </li></ul>
  41. 41. EVALUATION OF SUCCESS <ul><li>ANECDOTES </li></ul><ul><li>NUMBER OF LEADS </li></ul><ul><li>TRAFFIC </li></ul><ul><li>RETURN ON INVESTMENT </li></ul><ul><li>AUDIENCE MEMORABILITY </li></ul><ul><li>NUMBER OF PRESS PRESENT </li></ul><ul><li>POST-SHOW PRESS PLACEMENTS </li></ul>
  42. 42. Average Cost of Closing a Sale without Developing Leads at Trade Shows <ul><li>Average Cost </li></ul><ul><li>of Sales Calls $ 292 </li></ul><ul><li>Avg. # of calls </li></ul><ul><li>to close sale x 3.7 </li></ul><ul><li>Cost of closing </li></ul><ul><li>as in field $ 1080 </li></ul>
  43. 43. Avg. Cost of Closing a Sale with Leads Developed at Trade Shows <ul><li>Average Cost of Sales Calls $ 292 </li></ul><ul><li>Avg. # of calls to close sale 0.8 </li></ul><ul><li>__________________________________ </li></ul><ul><li>Avg. cost per visitor reached $ 185 </li></ul><ul><li>Additional cost of field sales calls </li></ul><ul><li>($ 292 * 0.8) $ 234 </li></ul><ul><li>Cost of closing w/TS leads $ 419 </li></ul><ul><li>Avg Amt Saved /Closed Sale $ 661 </li></ul>
  44. 44. Why Customers Don’t Buy From Exhibitors Salesperson didn’t understand needs No one available to assist No follow up Didn’t trust salesperson 42% 28% 20% 16%
  45. 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%
  46. 46. What Should A Booth Staffer Do? <ul><li>Greet Quickly </li></ul><ul><li>Determine Interest </li></ul><ul><li>Pass Along to Appropriate Party or Qualify as Prospect </li></ul><ul><li>Demonstrate Product if Appropriate </li></ul><ul><li>Close for appropriate follow-up </li></ul>

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