Trade Show Participation

A trade show is an exhibition at which businesses within a specific industry demonstrate their products and distribute information about their goods and services. Trade shows offer a unique opportunity for businesses to market their products and services to a large, targeted audience that tends to be seriously interested in purchasing the types of products and services that the organization offers. However, exhibiting at a trade show is not an inexpensive proposition. To maximize the success of the trade show experience as well as the return on investment from trade show participation, one must choose the right show, design an eye-catching exhibit, participate in targeted pre-show marketing efforts, actively work the show, and follow-up on all legitimate sales leads. By using such a concerted approach, participation at trade shows can be an effective addition to many marketing strategies.

Keywords Globalization; Market Niche; Marketing; Marketing Mix; Return on Investment (ROI); Strategic Marketing; Target Market; Trade Show

Marketing > Trade Show Participation

Overview

As globalization widens the markets for goods and services in many industries and fast-paced advances in technology make it essential to stay on the leading edge of the industry, it is increasingly important for organizations to get information about their products into the hands of potential consumers as quickly as possible. One of the ways that an increasing number of organizations attempt to market to customers is through integrated marketing communications, an approach to marketing that combines and integrates multiple sources of marketing information (e.g., advertising, direct response, sales promotions, public relations) to maximize the effectiveness of a marketing campaign. This approach to marketing allows an organization to change its strategic marketing plan to better reach different target markets or market niches.

One popular element of the marketing mix for many organizations is the trade show. This marketing venue is an exhibition at which businesses within a specific industry exhibit and demonstrate their products and distribute information about their goods and services. Typically, trade shows are not open to the public but are restricted to representatives within the given industry. Trade shows help organizations and individuals within an industry keep current with the state-of-the-art products and services within the industry as well as offer a single venue for businesses to market to a wide range of customers within their market niche. International trade shows can attract millions of participants. For example, 2007 Cairo International Book Fair — the largest book fair in the world — had 2,000,000 attendees (Voice of America, 2007) and the 2006 Bologna Motor show had 1,123,649 attendees (Motor Show, 2007). Although these trade shows have more attendees than most, many trade shows frequently attract thousands of visitors.

Despite the fact that trade shows offer businesses wide exposure to a specific market niche, trade shows should be only one part of a good marketing strategy. Marketing strategies typically include other media such as advertising, direct response, sales promotions, and publicity to maximize the effectiveness of the marketing campaign. Through an integrated marketing communications campaign, the organization can coordinate its marketing efforts to present a consistent face to customers while focusing the marketing campaign in an attempt to give the organization a competitive edge.

However, the trade show remains an enduring marketing technique with good reason. It has been consistently found that an average of 85 percent of the typical trade show audience comprises final decision-makers or others who influence the products or services that are purchased by the organization. Similarly, 50 percent of qualified sales leads are closed at trade shows (Keobke, 2004). There are a number of reasons for these impressive statistics. First, trade shows offer an opportunity not only to make face-to-face contact with potential customers, but to do so with a self-selected group that has indicated by their presence at the show that they are interested in the general types of offerings that the business is trying to sell. Although some attendees at trade shows are merely gathering information, many of them are ready to purchase. In addition, trade shows offer marketing personnel the opportunity to not only make a contact, but to establish rapport and present their products and services in one encounter.

Applications

Ensuring Success at Trade Shows

Although trade shows offer a unique opportunity to businesses to market their products and services to a large, targeted audience, exhibiting at a trade show is not an inexpensive proposition. In addition to the cost of leasing space on the exhibit floor, the business must also develop and print brochures and other literature, design and build an exhibit, transport the exhibit to the venue, hire people who can physically assemble and disassemble the exhibit, transport exhibit staff to the venue and pay for their expenses, as well as other costs. In addition, success at a trade show requires careful planning starting a year before the event. Further, trade show participation is not a passive marketing tool. It requires an on-site trained and knowledgeable staff that can demonstrate products, answer detailed technical questions, and present a polished image to represent the company throughout the show. Despite these costs, however, trade show participation continues to be a popular marketing tool in many industries because of its relatively high potential return on investment.

Choosing a Trade Show

Successful participation in a trade show requires much more than merely setting up a booth and expecting potential customers to walk in. Before even considering what information one will present, it is important to choose the right show. Obviously, one needs to choose a show whose attendees will likely be potential customers. To do this, it is helpful to familiarize oneself with the upcoming trade show opportunities within target industries, and then to choose those that are directly related to the organization's marketing strategy. However, even within an industry, there is often a wide range of shows available. For example, although there are many book fairs available, a publisher of medical books would be unlikely to be successful at a book fair that focused on children's publications or even at a trade show that focused on medical equipment. On the other hand, the same publisher might be very successful at a medical trade show targeted toward physicians or at a medical conference even though the show was not specifically focused on medical books. To choose the "right" trade show to attend, there are several things that need to be taken into account.

• First, one must investigate the reputation of the trade shows under consideration. The potential exhibitor must ask whether or not the trade show is in keeping with the organization's image, budget, and overall marketing plan. A manufacturer of high end goods is unlikely to get much business from exhibiting at a low end trade show just as a manufacturer of low end goods is unlikely to get much business from a high end trade show.
• Another question to ask oneself about a potential trade show is whether or not that particular show has a consistent attendance record and whether or not that record makes attendance worth the investment.
• It is also helpful at this point to find out who has exhibited at that particular show in the past and who the other likely exhibitors are for the upcoming show.

Setting Objectives & Budgets

It is also essential to establish measurable objectives for participation in the show and to establish a budget. Before investing in trade show participation, it is helpful not only to determine the costs of various booth sizes, but also the location of the booths. For example, booths closer to the entrance of the show floor are more likely to attract attendees than are booths in a corner off the beaten path. No matter how well designed and exhibitors display is, if it is located on the show floor in an area where it is unlikely to attract attendees, it is also unlikely to bring in sufficient revenue to justify the cost of participation. Some of the top criteria that many exhibitors use in determining which trade show to attend include audience quality (e.g., proportion of decision-makers attending the trade show, proportion of attendees in one's target market), audience quantity (e.g., expected number of attendees, extensive promotion by the show's organizers), exhibit parameters (e.g., booth location on the exhibit floor, ability to specify or negotiate size, location, or other parameters of the exhibit), and logistical aspects (e.g., easy registration or pre-and concerns registration, security, ease of moving in and out of the exhibit space).

Exhibit Size

Another decision that needs to be made early on is what size exhibit one should display. It has been found, for example, that larger booths in trade shows receive a greater response from attendees. However, in general, one should only set up an exhibit with an average of 50 square feet of exhibit space per person who will man the booth. For a minimal staff of one or two salespeople, it is typically not advisable to book over 200 square feet of space.

Geographic Location

Another type of location and needs to taken into account when one is considering exhibiting at a trade show, is the geographic location of the show. Although one may potentially reach a larger segment of the market and in international show, for example, if one cannot afford the transportation costs for subsequently providing goods and services internationally, the costs of exhibiting at the show will not provide adequate return on investment. Even within the same country, if the cost of extensive travel is prohibitive, the resultant sales will be unequal to the investment.

Sound Design Principles

A good trade show exhibit requires planning and the application of sound design principles. Trade show exhibits should be physically designed to facilitate the movement of attendees at the booth. It is typically sound practice to set aside part of the exhibit area for in-depth discussions with potential customers who need extensive additional information or are ready to make a purchase. In addition, the booth should be designed so that potential customers are not forced to wait outside the exhibit while the staff deals with other potential customers. An exhibit at a trade show is a marketing tool. As with any marketing tool, the message needs to be carefully crafted to make clear what the business has to offer, what the benefit of the business's products and services are, and how the business's offerings can satisfy the needs of the potential customers. Similarly, the principles of good graphics design should be taken into account when designing a trade show exhibit. For example, bright colors, the use of photographs and graphic art, and hands-on demonstrations are more likely to attract potential customers to the exhibit than are those with only bare walls and black-and-white spec sheets. In addition, any text on display should be clearly visible and easily readable and graphics or photographs used in the display should be clear, simple, and support the organization's message. At all times, the exhibit should reinforce the reputation and message of the organization.

Outreach

Although a compelling exhibit design is essential for maximizing the success of trade show participation, the experienced trade show participant understands that there are other activities that can also increase the return on investment achieved by trade show participation. For example, press releases and media kits advertising newsworthy aspects of the company and its products can be sent to the media. In addition, personal invitation letters can be sent to current prospects and trade show attendees to let them know that the organization is exhibiting at the show. Similarly, a direct-mail campaign can be conducted to prospective customers within 100 mile radius of the show to encourage them to attend and see the organizations exhibit.

Proper Staff Conduct & Expertise

If done correctly, participation in a trade show is hard work. Exhibitors need to do more than passively sit in their booth and wait for potential customers to ask them questions. Potential customers who are seriously considering purchasing the business's goods or services will typically have specific questions that cannot be answered by generic brochures and spec sheets. To help maintain the potential customer's interest, exhibit personnel need to be able to answer these questions. In addition, most trade show attendees come to a trade show looking for more than generic information about products or services: They want to evaluate new products, renew business contacts, discuss alternative solutions to specific problems, and make purchasing decisions. Particularly with the ever-increasing high cost of travel, it is important that such questions be answered not only from the point-of-view of the exhibitor to show a reasonable return on investment for participating in the trade show, but also for the point-of-view of the attendee who must report back to his or her management on the degree to which their own agenda was met and questions answered at the trade show. Therefore, one's booth needs to be staffed at all times that the exhibit floor is open with staff members who are well-informed in the business's products and services. In addition, it is important that the appearance and conduct of the staff at the exhibit portrays the same type of positive image of the organization as does the exhibit itself. This means that the staff persons should wear business attire appropriate to their industry, be well-groomed, and pay attention to their posture and body language. Similarly, staff personnel should not eat, drink, smoke, or chew gum within the exhibit area. Staff members should remember at all times that this is a business situation and that they are representing their organization.

Working a trade show is not only mentally difficult work, but physically difficult as well. Most exhibit areas have concrete floors under a thin layer of carpeting. Because of this, it is helpful to include extra padding for the floor as part of the design of the exhibit. Similarly, experienced trade show staff members know to bring and wear comfortable shoes. Further, it is important for staffers to restrict their evening activities. Some people at trade shows view them as opportunities to spend long nights with their friends. However, this is a business situation and it is important to restrict such activities in order to maintain a positive image for the organization as well as to be fresh and ready for the next day's activities at the show. Exhibit staff members are also well advised not to carry on conversations with each other even if no attendees are currently in the booth. Conversations between staff members often discourage attendees from visiting the exhibit or asking questions because they do not want to interrupt. In addition, even when there have not been any attendees for an extended period of time during the exhibit hours, it is important to always have one's exhibit staffed until the show is officially over.

Proper Follow-Up

Just as success at a trade show requires groundwork and preparation, so, too, it requires follow-up in order to be maximally effective. The marketing strategy for trade shows should include a formal process for following up on qualified leads after the show. All legitimate prospects should be personally contacted within the first few days after the trade show, even if the specific material they requested is not yet available. Activities that should be performed as soon as possible after the end of the trade show include compiling a complete list of contact information for distributors, agents, and prospects; sending personal thank you letters or e-mails to prospects; and following up on requests for additional information that could not be provided at the show. As when following up on any good sales lead, requested information should be sent to the prospect as soon as possible. In all these matters, the more timely the response, the more professional and customer-oriented the organization will appear.

Conclusion

One of the traditional ways in which organizations attempt to market to potential customers is through participation in trade shows. At these exhibitions, businesses can exhibit and demonstrate their products and distribute information about their goods and services. Despite the fact that there are newer, more high tech marketing techniques available, trade shows continue to prove to be a successful way to reach a large number of potential clients who are ready to purchase. Because of this track record, trade show attendance continues to be an important part of the marketing mix for many organizations. Exhibiting at trade shows, however, is not a passive marketing technique. One must choose the right show, design an eye-catching exhibit, participate in a targeted pre-show advertising and direct mail campaign, actively work the show, and follow-up on all legitimate sales leads. With such a concerted approach, participation at trade shows can be an effective addition to many marketing strategies.

Terms & Concepts

Globalization: Globalization is the process of businesses or technologies spreading across the world. This creates an interconnected, global marketplace operating outside the constraints of time zone or national boundary. Although globalization means an expanded marketplace, products are typically adapted to fit the specific needs of each locality or culture to which they are marketed.

Integrated Marketing Communications: An approach to marketing communications that combines and integrates multiple sources of marketing information (e.g., advertising, direct response, sales promotions, public relations) to maximize the effectiveness of a marketing campaign.

Market Niche: A sub-segment of a particular market where the consumers' needs are not being met and on which an organization focuses its efforts.

Marketing: According to the American Marketing Association, marketing is "an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders" (American Marketing Association, 2008).

Marketing Mix: The combination of product, price, place, and promotion that is used to get a product into the hands of the consumer. One of the primary tasks of marketing is to optimize the mix to best position the product for success in the marketplace.

Return on Investment (ROI): A measure of the organization's profitability or how effectively it uses its capital to produce a profit. In general terms, return on investment is the income that is produced by a financial investment within a given time period (usually a year). There are a number of formulas that can be used in calculating ROI. One frequently used formula for determining ROI is (profits — costs) ÷ (costs) x 100. The higher the ROI, the more profitable the organization.

Strategic Marketing: The subfunction of marketing that examines the marketplace to determine the needs of potential customers, the strategy of the competitors in the market, and attempts to develop a strategy that will enable the organization to gain or maintain a competitive advantage in the marketplace.

Strategy: In business, a strategy is a plan of action to help the organization reach its goals and objectives. A good business strategy is based on the rigorous analysis of empirical data, including market needs and trends, competitor capabilities and offerings, and the organization's resources and abilities.

Target Market: The people or organizations to whom a business wishes to sell goods or services.

Trade Show: An exhibition at which businesses within a specific industry exhibit and demonstrate their products and distribute information about their goods and services. Typically, trade shows are not open to the public but are restricted to representatives within the given industry.

Bibliography

American Marketing Association. (2008). AMA adopts new definition of marketing. Marketing Academics. Retrieved January 2, 2008, from http://www.marketingpower.com/content24159.php

Eyre, J. (2013). Considering exhibiting?. Builders Merchants Journal, 16. Retrieved November 15, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=91623584&site=ehost-live

Kimmick, N. (2013). Practical tips for maximizing the return on your trade show budget. HVACR Distribution Business, 22-23. Retrieved November 15, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=89755845&site=ehost-live

Kiobke, B. (2004, Summer). Show stoppers: The power of trade shows. Export Wise, 4-5. Retrieved January 2, 2008, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=14080855&site=ehost-live

Laurie, C. A. (1993). Getting the most from your trade show exhibit. Franchising World, 25(1), 38-39. Retrieved January 2, 2008, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9308306988&site=ehost-live

Motor Show. (2007, 18 Dec). The first GL events-owned motor show is a resounding success. Retrieved January 8, 2008, from http://www.motorshow.it/uk/news.asp?codcat=87&tab=Pagine&cod=3511

Vanderleest, H. W. (1994). Planning for international trade show participation: A practitioner's perspective. SAM Advanced Management Journal, 59(4), 39-44. Retrieved January 2, 2008, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9502151657&site=ehost-live

Voice of America. (2007, 4 Feb). Cairo International Book Fair attracts two million visitors. Retrieved January 8, 2008, from http://www.voanews.com/english/archive/2007-02/2007-02-04-voa16.cfm?CFID=179641025&CFTOKEN=49602115http://www.voanews.com/english/archive/2007-02/2007-02-04-voa16.cfm?CFID=179641025&CFTOKEN=49602115

Suggested Reading

Brandl, P. J. (2002). Measuring trade show ROI. Appliance Manufacturer, 50(9), 52. Retrieved January 2, 2008, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=7385157&site=ehost-live

Friedman, S. (2002). Thinking of cutting your trade show budget — big mistake! Canadian Manager, 27(4), 20-21. Retrieved January 2, 2008, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9089394&site=ehost-live

Kramer, K. L. (1998). Capitalizing on your trade show investments. Adhesives & Sealants Industry, 5(4), 6. Retrieved January 2, 2008, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=563188&site=ehost-live

Mapes, S. & Padden, K. (2006). Conventional wisdom. Pharmaceutical Executive, 26(Supp), 14-22. Retrieved January 2, 2008, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=20034442&site=ehost-live

Tanner, J. F. Jr. (1992). Trade shows mean bigger business. Baylor Business Review, 10(1), 16-18. Retrieved January 2, 2008, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9607036332&site=ehost-live

Tucker, R. B. (2001). Trade show success. American Salesman, 46(9), 3-6. Retrieved January 2, 2008, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9509276707&site=ehost-live