This document summarizes the results of a survey of 398 German marketing managers on trends and strategies in personal communication. Some key findings include: 1. Regular customers make up two-thirds of customer structures on average but most marketing focuses on new customers. Greater focus on regular customers is needed. 2. Tools must be used more strategically depending on the relationship phase, with live communication best for building trust and loyalty. 3. Trade fairs are seen as a universal tool across the relationship cycle but need new concepts to remain competitive on a global scale.

1. Uniplan LiveTrends®
Profitable customers
through
live communication
2006
In cooperation with the
HHL-Leipzig Graduate School
of Management

3. Uniplan LiveTrends 2006
Profitable customers through live communication
German marketing managers on the trends and strategies of personal
communication — results of a survey of 398 companies conducted by
Uniplan and the HHL-Leipzig Graduate School of Management

5. Contents 3
Foreword ................................................................................ 5
Facts and figures of the study ....................................................... 6
1. Customer structure as a planning base ......................................... 7
Regular customers require more attention
2. Potential in the relationship cycle ............................................... 8
Tools must be used in a more targeted manner
3. Marketing mix in the relationship cycle ....................................... 9
Live communication builds up trust and
promotes customer loyalty
4. Importance of participation in trade fairs ..................................... 10
Trade fairs are a universal tool in customer management
5. Uniqueness of trade fair presentations ......................................... 11
“People” and “brand” are the most important differentiation factors
6. Requirements for trade fairs ..................................................... 12
Exhibitors demand new trade concepts
7. Monitoring communication success ............................................. 13
Success monitoring must become widely established
8. Statement: World Cup 2006 ....................................................... 14
Raising profiles through live communication
9. LiveTrends ........................................................................... 15
Profitable customers through live communication
1 0. Contact and imprint ............................................................. 17

6. The authors
Prof. Manfred Kirchgeorg (47) studied business and management economics at the Westfälische Wilhelms-
Universität Münster and had an academic position at the Institute for Marketing in Münster from 1985
to 1989. After he was conferred a doctorate he became a senior lecturer and a habilitation candidate in
Münster. He took up numerous teaching posts and research assignments at different universities in Ger-
many and abroad, before he joined the HHL-Leipzig Graduate School of Management in 1998. As holder
of the marketing management chair, the focus of his research is on integrated brand development, market
research and media and trade fair management. Professor Kirchgeorg is a member of several managerial
associations and federations.
Christiane Springer (28) studied business and management economics at the University of Magdeburg.
During her degree she gained extensive professional experience at Microsoft, the German television
broadcaster ZDF, the Fraunhofer Institute and the Leipziger Messe (Leipzig Trade Fair), to name but a few.
After completing her degree she spent more than three years working as a consultant at the Ogilvy direct
marketing agency in Frankfurt am Main. Since May 2004 she has held an academic position at the
Marketing Management faculty chaired by Prof. Manfred Kirchgeorg at the HHL-Leipzig Graduate School
of Management.
Christian Brühe (44) studied business and management economics at the University of Cologne. After gra-
duation he began his professional career as a consultant at Roland Berger Strategy Consultants in Düssel-
dorf. In August 1990 he joined the Uniplan executive board. Together with Prof. Manfred Kirchgeorg, he
founded the first research centre for live communication in Germany in 2004. Today, Uniplan has 500
employees and locations in Europe and Asia and is one of the leading agencies for live communication.
Dagobert Hartmann (41) studied business and management economics at the University of Cologne. After
completing his degree he worked for seven years as the Strategic Planning Director at Grey Worldwide.
He is now the Director of Consulting and Research at Uniplan. The strategy consultant and brand expert
advises customers of the Uniplan Group on all matters concerning strategic brand management, integrated
communication and live communication management. He has so far supported more than 70 brands from
different industries in consulting projects. Hartmann is a member of numerous professional associations.

7. Foreword
Dear readers,
Growth euphoria is sweeping the Asian markets. Conducting business in our domestic markets is thus
becoming more difficult. The task of meeting turnover and yield expectations is a hard one. Differenti-
ation potential seems to be largely exhausted, an increasing number of brand manufacturers are being
gripped by the spiral of price competition and competitors are experiencing more and more pressure —
a development which American strategy expert Tom Peters warned would happen. According to Peters,
a very important factor could fall between the cracks in this situation: efforts to make customers loyal.
At the same time, the trend towards moving away from traditional communication towards customer
communication aimed at target groups continues. This development is particularly beneficial for live
communication tools such as events, roadshows and showrooms. After all, this personal encounter
between people and brands achieves goals in areas where traditional communication tools have already
reached their limits — the initiation of a trusting dialogue with customers and sustained strengthening
of customer loyalty.
The current study “Uniplan LiveTrends 2006” outlines the superior role that live communication plays
in the targeted establishment and strengthening of valuable customer relationships. The study has been
conducted for the third time in succession by Uniplan, the Live Communication agency, in conjunction
with the Marketing Management faculty of the HHL-Leipzig Graduate School of Management. Almost
400 decision-makers were questioned in this representative survey, which was carried out by TNS
Infratest.
One of the most important findings was that Peters was justified in his criticism of customer neglect.
According to the results of our survey, regular customers in Germany are decisive for determining the
success or failure of a company. It is therefore essential for business to pay them as much attention as
possible. One thing is certain — only those marketing officers who attract customers and gain customer
loyalty by using marketing tools in a targeted manner and combining them efficiently will be successful
in future.
Enjoy reading!
Regards,
Prof. Manfred Kirchgeorg
Christiane Springer
Christian Brühe
Dagobert Hartmann

8. Survey design
Facts and figures of the study
This is the third time that Uniplan has carried out the “Uniplan LiveTrends” study in conjunction with
the Marketing Management faculty of the HHL-Leipzig Graduate School of Management.
Information was provided by a total of 398 leading companies and their Marketing and Communication
managers from nine key sectors. These include:
•Automotive •Supplier
•Finances •Health & Lifestyle
•Food •Fashion
•Tourism •Industry
•High-tech/telecommunications
In autumn 2005 TNS Infratest Holding conducted 30-minute telephone interviews for the study.
Marketing decision-makers from the 2,000 best performing companies were asked if they would like
to take part. Around a fifth of them agreed, 59.2 % of whom are divisional heads.
There is above-average representation of large-scale enterprises in the survey. A total of 36.6 % of all
companies surveyed post turnover of more than one billion euros. Medium-sized businesses with turnover
of up to 50 million euros account for 17 % of the companies surveyed.
With regard to the line of business, 22.6 % can be clearly assigned to the consumer goods industry and
40.5 % to the capital goods industry (the rest have mixed forms). A total of 67.8 % of the companies
surveyed are based in Germany.
In view of the comprehensive survey sample, the study provides important benchmark information for
key industries as well as for large and medium-sized businesses.

9. 1. Customer structure as a planning base
Regular customers require more attention 7
The customer structure comprises two thirds regular customers over all sectors. Nevertheless, the majority of
German companies gear their marketing activities primarily towards new customers. The enormous potential
of regular customers is largely underestimated.
They are the focal point of companies’ interest and efforts — new customers. Since regular customers are
considered to have been won over, all attention is turned towards new customers. The mobile communica-
tions sector is partly responsible for this widespread way of thinking and acting, since new customers still
get better deals than existing customers. Furthermore, there is extensive media coverage of the neck-and-
neck race for new customers, and the duration and quality of a longer business relationship very rarely
gets mentioned at all.
The advantages of maintaining existing customer relationships are obvious: there are no acquisition costs
and the existing potential can be easily and effectively increased through communication and cross-selling
activities. And this can be proven, as F. Reichheld postulated back in the 1990s. With an improvement in
rates of just five per cent, the “loyalty effect” will yield a 25 to 125 % increase in profits, depending on the
industry. However, in the age of saturated markets and growing international competition, the acquisition
of new customers has reached its limits.
A fatal cycle thus begins. The high costs of acquiring new customers come at the expense of maintaining
relationships with profitable regular customers. Neglected customers look elsewhere. Almost half of the
newly acquired customers are needed to make up for these severe losses alone. The only way out of this
situation is to concentrate the marketing resources on the most effective tools and the customer group
that not only has the greatest potential but also offers the greatest added value —regular customers.

10. 2. Potential in the relationship cycle
Tools must be used in a more targeted manner
Customers remain loyal to strong brands for a long time. Strong brands turn potential new customers
into loyal regular customers. To ensure an optimum “customer transfer”, the marketing resources must
be used as needed along the customer-relationship cycle.
Successful marketing accompanies a customer in all phases of buying a brand. When making contact
with potential new customers for the first time, it is important to grab their attention and gain their trust.
If this is done successfully, the customers will shortlist the brand, buy it and then try it out. If they are
pleased with their choice of brand, they will opt for it again when making their next purchase. This is
how loyal “regular customers” are gained.
It sounds easy, but the reality is somewhat different. There are risks in all phases that could threaten
the relationship between brand and customer. A particularly high number of customers are lost in the
transition period from brand awareness to trust and from purchasing to loyalty. However, by using the
right tools, the loss of customers can be reduced. Anyone wishing to bypass the critical problem zones
without suffering damage needs to know which tools can be used most effectively at which time.
But how much do companies actually know about the tools? Which are the right tools in marketing
practice? How can they be combined effectively? The results are sobering. Companies often focus on
past values or competition standards. Here, a lack of understanding about role allocation and the in-
terplay between the tools is replaced by operating by rule of thumb. The results of such behaviour are
serious misallocations of marketing resources and considerable losses with regard to communication
efficiency.

11. 3. Marketing mix in the relationship cycle
Live communication builds trust and promotes customer loyalty 9
Individual tools must be used according to their role in the relationship cycle. Classical advertising is used
to raise awareness of the brand and thus becomes less important. Live communication bypasses the critical
problem zones — building trust and gaining customer loyalty.
Which tool is the best to use at which point of gaining brand/customer loyalty and which tool is regarded
as being “best in class”? “Uniplan LiveTrends” also addressed this question.
The following picture can be drawn from the results. In phase one — raising awareness of the brand,
two thirds of the companies surveyed rely on classical advertising. For the next phase, building trust in
the brand, a great deal of confidence is placed in events for higher achievement of objectives. Events are
also the preferred choice when it comes to strengthening customer relations. With regard to increasing
sales, more than half of the companies rely on promotional activities. Trade fair participations are used
as a “universal tool” at all times and in all phases of customer relationships.
Live communication is used to bypass the critical problem zones — establishing trust and gaining customer
loyalty — since no classical advertising medium can make products and brand worlds so accessible and
turn them into experiences in the same way that an event can.
Conclusion: each tool has its advantages and limits. Synergies can only be used to their full effect if the
“orchestration” and coordination is right. In addition to integration in form and content, the time aspect is
becoming increasingly important, which means that those who use the tools along the purchasing process
will make higher turnover and returns.

12. 4. Importance of participation in trade fairs
Trade fairs are a universal tool in customer management
Once again, more than two thirds of marketing decision-makers rate trade fairs as being very important
in the communications mix. Trade fairs are an all-round tool in the customer relationship cycle. No other tool
is as effective when it comes to acquiring new customers and gaining the loyalty of existing customers.
With around 170 international trade fairs and exhibitions and more than 160,000 exhibitors, Germany
is the number one trade fair country. According to the Association of the German Trade Fair Industry
(AUMA), two-thirds of the world’s leading trade fairs are held in Germany. Visitor figures lie between
nine and ten million.
These figures clearly show that, despite all the criticism, trade fairs remain one of the most important
tools for companies in the marketing mix. In terms of budget they rank second after classical advertising.
Trade fairs are often even the key strategic tool for medium-sized and B2B companies. Their popularity
is primarily due to their multifunctionality with regard to customer acquisition, care and loyalty. They
are therefore promoted as being an “all-round tool” for the management of customer relationships.
If the preparation and follow-up work are good, the advantages of trade fair participations are obvious.
However, trade fairs cost money. Due to their relatively high portion of costs and budget, a lot of com-
panies are putting them to the test. Over the next few years, the question will increasingly be raised as
to how the efficiency of trade fair participations can be significantly improved.

13. 5. Uniqueness of trade fair presentations
“People” and “brand” are the most important
differentiation factors
The majority of trade fair presentations are interchangeable. It is not the hard factors such as architecture or
product presentation that create a unique atmosphere, but the soft factors. However, the opportunities for
emotional differentiation through qualified personnel and brand message are by no means exploited to the full.
Trade fairs are the scene of “hyper-competition”. Nowhere else does demand meet supply in such a concen-
trated form and area and in such a short timespan. Differentiation is a top priority for anyone wishing to stand
out among the mass of trade fair stands. At least, that’s the theory. But in practice the situation is somewhat
different: According to last year’s “LiveTrends” study, almost 65 % of the companies surveyed claimed that
trade fair presentations are interchangeable.
What is the explanation behind this? Uniplan also addressed this question in “LiveTrends 2006”. The question
as to which criteria are most suitable for standing out from competitors’ trade fair presentations was asked.
The result was surprising. It is not the hardware, in other words the architecture of product presentation that is
responsible for success, but rather the factors “people” and “brand”. Or to put it another way, those companies
that create a special atmosphere at their booths will turn their trade fair presentation into an unforgettable
experience.
This realisation is slowly becoming accepted. Forward-looking companies are no longer investing in increasingly
homogeneous products, but instead in training their staff and in trade fair communication that supports the key
messages. Effective brand promotion is thus the result of the product presentation.

14. 6. Requirements for trade fairs
Exhibitors demand new trade concepts
The trade fair business seems to have come out of the trough. Trade fairs will continue to play an important
role in the future communications mix. However, a rethink of conventional concepts is a priority. In times
of globalisation, new concepts are needed in order to further develop Germany as a trade fair location.
The trade fair business is currently undergoing a structural change. A large number of new trade fair
centres are being set up all over the world, established trade fairs are expanding their exhibition space
and infrastructure, and trade fairs are changing their venues both nationally and internationally. Trade
fair organisers are trying to outstrip one another in terms of topics, visitors and exhibitors.
What do today’s exhibitors expect from tomorrow’s trade fairs? Once again “Uniplan LiveTrends” provides
the answer. The majority of people surveyed believe that an improvement of the trade fairs is necessary: they
need to move away from being simple renters of space to becoming a permanent “partner of the customer”.
In concrete terms, a modernisation of the infrastructure, an improvement in the service quality and a reduc-
tion in the participation fees are expected. The bottom line is, trade fair centres need to be more appealing
and of a higher quality.
But is that enough? The companies surveyed regard raising the profile in competition as the most important
challenge. Three points are of particular importance to them: the focused address of the target audience,
the offer of experience-based event formats and a higher degree of professionalism in trade fair adver-
tising and marketing. In short, the greater the success of turning a trade fair into a “trade fair brand” with
a clear position, the greater the future prospects.

15. 7. Monitoring communication success
Success monitoring must become widely established 3
Companies invest high budgets in live communication but only spend a negligibly small amount on monito-
ring success. And this has serious consequences, as it becomes increasingly difficult to justify investments in
live communication to top management without sufficient proof of success.
It seems strange that companies invest huge sums of money in live communication, but have reservations
when it comes to monitoring the success of the money spent. At present, 6.6 % of the marketing budget
is spent on monitoring all communication measures. However, by taking a look at the measures individu-
ally, it becomes clear how serious the “controlling deficit” is. Only half of companies measure success at
all (see LiveTrends 2005). If a company measures the ROI of a leading fair, it invests just 10,000 euro in
the monitoring, which is a mere fraction of what the entire brand promotion costs.
Monitoring success is considered to be a superfluous cost factor. This way of thinking and acting often
has drastic consequences. In times of limited resources, live communication activities increasingly have
to compete with the other marketing tools. Anyone wishing to score points for live communication within
the company’s budget allocation process, needs solid arguments. Without proof of success, it becomes
even more difficult for the marketing officer to argue in its favour.
Live communication is rightly regarded as a promising discipline. If it is to prevail over other disciplines
in future, professional controlling is indispensable. This involves introducing suitable test procedures,
motivating all those involved and determining appropriate budget funds.

16. 8. Statement: World Cup 2006
Raising profiles through live communication
by Prof. Manfred Kirchgeorg
Out of the large number of applicants to hold the World Cup 2006, the FIFA Executive Committee accepted
Germany’s bid on 6th July 2000. The World Cup is one of the most outstanding sporting events in the world
and provides the host country, Germany, with rare opportunities to present itself to the general public all
over the world.
Germany will assume its role as host with the World Cup slogan “A time to make friends”. Hospitality and
friendliness are not exactly the primary dimensions that are associated with Germany. The World Cup can
significantly spruce up Germany’s image. However, the motto can only achieve the desired effect if all of
the cities staging the event as well as the German citizens and public institutions focus their activities on
the motto.
A total of 83 % of the companies surveyed see good prospects here, and rate the importance of the World
Cup for boosting Germany’s image as high to very high. For this reason, important marketing plans were
planned in 2005 to take place in 2006. The most important of these include events, followed by promotions
and traditional advertising. This means that live communication tools will prevail over classical
communication tools here.
However, to ensure a successful relationship with the sponsors, it is important that the companies not
only concentrate on the events during the World Cup, but are also present in the run-up to this major
event as well as after it is over. Only a well thought-out communications concept can ensure that the
numerous sponsors focus their attention as much as possible on the target groups.

17. 9. LiveTrends
Profitable customers through live communication —
superior role in the customer relationship cycle
An increasing number of German companies are operating in saturated markets. In such markets, the
potential for new customers is limited and the cost of acquiring new customers is high. The maintenance of
regular customers thus becomes the key factor for success. Live communication is an important tool here
for building trust in the brand and strengthening customer loyalty. Seven LiveTrends from the representative
study carried out in 2006 reflect the most important results.
LiveTrend 1
Regular customers require more attention
Two-thirds of all customers are regular customers. However, this extensive growth field lies idle. Instead of
focusing on this area, the majority of companies continue to gear a substantial amount of their activities
towards the new customer business, which is becoming increasingly difficult. Those companies wishing to
grow in the saturated markets should develop their relationships with regular customers and increase their
customer value.
LiveTrend 2
Tools must be used in a more targeted manner
A strong brand can gain the loyalty of a regular customer for a long time and turn a new customer into
a regular customer. This is provided that each phase of the customer relationship cycle is supported by
precisely those marketing tools that are tailored directly to the respective needs. An optimal combination
of communication tools helps prevent customer losses in critical phases.
LiveTrend 3
Live communication builds trust and promotes customer loyalty
From the initial contact to repeat purchases — the right communication channel is decisive for success.
Classical advertising is used to raise the awareness of the brand, live communication bypasses the problem
zones of building trust and gaining customer loyalty.
LiveTrend 4
Trade fairs are a universal tool in customer management
Marketing decision-makers rate trade fairs as being very important in the communications mix. Trade fairs
are an all-round tool in the customer relationship cycle. No other tool is as effective when it comes to
acquiring new customers and gaining the loyalty of existing customers.

18. LiveTrend 5
“People” and “brand” are the most important differentiation factors
The majority of trade fair presentations are interchangeable. It is not the architecture or the product pre-
sentation that makes a trade fair presentation unique, but the atmosphere at the stand. The opportunities
for emotional differentiation through qualified personnel and brand message are by no means exploited
to the full.
LiveTrend 6
Exhibitors demand new trade concepts
Trade fairs need to change. In times of globalisation, new concepts for developing Germany as a trade fair
destination are called for. Tomorrow’s trade fairs need to move away from being local renters of space to
become full-service providers with a strong “trade fair brand”.
LiveTrend 7
Success monitoring must be established
Companies invest large budgets in live communication but only spend a negligibly small amount on mo-
nitoring success. And this has serious consequences, as it becomes increasingly difficult to justify invest-
ments in live communication to top management without sufficient proof of success.

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