Introduction to Trade Show Marketing
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Transcript of Introduction to Trade Show Marketing
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