Transcript Top Industrial 5 By Attendance

Introduction to Trade
Show Marketing
Where the Marketing Dollars Go
Direct Mail: 9.0%
Public Relations:
6.4%
Telemarketing: 5.2%
Trade Publication/Journal
Advertising: 11.5%
Exhibitions: 13.9%
Direct Sales/Field Sales: 47.2%
Source: Center for Exhibition Industry Research “The Role of Exhibitions in the Marketing Mix”
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 Shows
Trade vs. Consumer:
Wholesale (or to industrial users) vs.
retail.
Industrial:
Food Marketing Institute
Consumer:
Boat Shows
Categories of Trade Shows, 1996
48% Trade Shows
36% Combination Shows
11% Consumer Shows
Source: 1996 Tradeshow Week Data Book
Comparison of Average Size
Consumer Shows
Trade Shows
103,841 Net Sq. Feet
119,849 Net Sq. Feet
238 Exhibitors
401 Exhibitors
47,522 Attendees
10,385 Attendees
Source: Trade Show Bureau “A Guide to the U.S. Exposition Industry”
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
Number of
Shows
Medical & Health Care
468
Home Furnishings & Interior Design
277
Computer & Computer Applications
275
Education
263
Sporting Goods & Recreation
253
Building & Construction
233
Agriculture & Farming
177
Apparel
153
Industrial
150
Boats
149
Top 10 Show Sites for 1996
City
Number of
Shows
1.
Atlanta
141
2.
Chicago
140
3.
Orlando (tie)
128
4.
Toronto (tie)
128
5.
New York City
124
6.
Dallas
113
7.
Las Vegas
109
8.
Washington, D.C.
89
9.
San Francisco
83
10. New Orleans
79
Who Goes To Shows?
First Time
Job Function
Attendees, %
Top Management
15
Middle Management
11
Engineer, R & D
21
Production
4
Sales & Marketing
11
Purchasing
3
Data Processing
7
Professional
9
Consultant
1
Educator
1
All Others
12
Undefined
5
Previous
Show
Attendees, %
25
9
20
2
11
2
7
10
3
1
8
2
Source: Center for Exhibition Industry Research “Power of Trade Shows”
Percentage
Role in Buying
100
90
80
70
60
50
40
30
20
10
0
78
85
55
40
29
55
35
29
22
Net Buying
Influence
Final
Say
1st Time Attendees
Specify
Supplier
Recommend
Previous Attendees
Source: Center for Exhibition Industry Research “Power of Trade Shows”
15
No
Role
“Extremely Useful” Sources of Purchasing Information
(Total Respondents)
TRADE SHOWS
91%
Articles in Trade Publications
Friends or Business Associates
Directories & Catalogs
Manufacturer Reps
Ads in Trade Publications
On-Site Visits
Conference & Seminars
User Groups
In-House Purchase Dept.
Outside Consultants
Retail Sales Staff
Newspapers
Other
0
20
40
Source: Center for Exhibition Industry Research “Power of Trade Shows”
60
80
100
Decision Makers’ Perceptions of Trade Shows
85%
Save my company time and money
by bringing many vendors under one roof at the same time.
83%
Bring me up-to-date
on the latest trends and developments in my industry.
82%
Allow me to be very productive
in a concentrated amount of time.
80%
Provide an invaluable opportunity
to discuss problems/ideas with professionals in my industry.
79%
Help me to decide
what products/services to buy.
70%
Are relied on by my company to keep up
on important trends and new developments in the industry.
Source: Center for Exhibition Industry Research “Power of Trade Shows”
Questions to Ask Yourself
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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/
Convention &
Visitor’s Bureau
Trade Association or
Show Organizer
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%
Specialty Advertising: 3%
Specialty Personnel: 4%
Pre-Show Promotion: 4%
Miscellaneous: 6%
Refurbishing: 10%
Transportation: 11%
Show Services: 22%
Construction: 15%
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 Mail
0
Previous Attendees
20
40
1st Time Attendees
Source: Center for Exhibition Industry Research “Power of Trade Shows”
Percentage
60
Trade Shows & the
Marketing Mix
TRADE SHOWS ARE A
COMPLETE MARKETING TOOL!
MARKETING MIX ELEMENT
SHOWS PROVIDE:
PRODUCT
New product ideas
Buyer feedback on new products
Access 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
(make sales presentation)
Change attitudes toward company/products
Provide dealer support
WHEN ARE SALES GOALS IMPORTANT?
the company is small
technological change is rapid
the company’s strategy is to be a
product leader/innovator
product development times are short
buying or ownership cycles are short
companies compete against many
competitors
WHEN ARE PROMOTION GOALS IMPORTANT?
Trying to change corporate image held by
market
Don’t have a corporate image
Compete in a market composed of a few large
competitors and many small competitors
Serve a market composed of a few large
customers
Ownership cycle is long
Products are customized
Follow a premium price strategy
Implementing a Trade
Show Program
ELEMENTS OF TRADE SHOW
STRATEGY
1.
2.
3.
4.
5.
6.
7.
8.
9.
MARKETING OBJECTIVES
SHOW OBJECTIVES
SHOW SELECTION
THEME
BOOTH DESIGN
STAFFING
PRE-SHOW PROMOTION
POST-SHOW FOLLOW-UP
EVALUATION SYSTEM
Setting Show Goals
What 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 Attendees
Target Attendees
Stage 1: EFF1 =
Attraction
Efficiency
Target Attendees
Visiting Booth
Stage 2: EFF2 =
Contact
Efficiency
Target Visitors Contacted
Stage 3: EFF3 =
Conversion
Efficiency
Target Contacts
Converted to Leads
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
percentage
hospitality suites more effective across industry types
effectiveness of various methods varies by industry
size of booth staff important
Success Factors
Conversion Efficiency:
Visitors turned in to qualified leads.
function of staff training
pre-show promo
quality of give-aways
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.
2.
3.
4.
5.
Attendance/Lead Performance
Marketing Synergy
Participation Costs
Staffing Capability
Show Environment
Source: Kijewski, Yoon, and Young (IMM 1993)
WHY USE A THEME?
UNIVERSAL
COMMUNICATION
DIFFERENT
FUN
GIVE A COMPANY “HEART”
PROVIDE A FOLLOW-UP
HOOK
FIT 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 Size
Minimum 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 your
product 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 ISSUES
Eye level usually blocked
Industrial show – feature company name
Consumer show – feature product name
MUST grab attention
Booth Staffing
Visitor 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
Source: Chonko, Tanner, and McKee, Marketing Management 1993 p. 40-43.
POST-SHOW FOLLOW-UP
GRADE QUALITY OF 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
ANECDOTES
NUMBER OF LEADS
TRAFFIC
RETURN ON INVESTMENT
AUDIENCE MEMORABILITY
NUMBER OF PRESS PRESENT
POST-SHOW PRESS PLACEMENTS
Average Cost of Closing a Sale without
Developing Leads at Trade Shows
Average Cost
of Sales Calls
$ 292
Avg. # of calls
to close sale
x 3.7
Cost of closing
as in field
$ 1080
Avg. Cost of Closing a Sale with Leads
Developed at Trade Shows
Average Cost of Sales Calls
$ 292
Avg. # of calls to close sale
0.8
__________________________________
Avg. cost per visitor reached
$ 185
Additional cost of field sales calls
($ 292 * 0.8)
$ 234
Cost of closing w/TS leads
$ 419
Avg Amt Saved /Closed Sale
$ 661
Why Customers Don’t Buy From Exhibitors
42%
28%
20%
16%
Salesperson
didn’t
understand
needs
No one
available
to assist
No
follow up
Didn’t trust
salesperson
Amount of Time a Visitor Will Wait for a Rep
in a Booth
1 minute
41%
5 minutes
14%
3 minutes
28%
30 seconds
11%
Will not wait
6%
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