1. Lecture 6 Promotional Strategy 2 -Exhibitions

2. Lecture Outline About WTM - 3 minute version - YouTube Why exhibitions? Why exhibit? Why visit? Reasons for participation Planning Evaluation

3. Exhibitions

4. Why Exhibitions? Welcome to the website for the NEC Group What's On - Search Results - The NEC, Birmingham What's On - Search Results - The NEC, Birmingham An influential and highly effective business tool – as well as being significant wealth generators in their own right. In established economies they are a vital part of the marketing mix, alongside direct selling and the Internet (Why Exhibitions, 2010)

5. Why Exhibitions? In new and emerging markets they are a major stimulus for industrial and commercial development: Driving industrial development and technology transfer Boosting regional and national industry Stimulating foreign investment in industry and infrastructure (Why Exhibitions, 2010)

6. Why Exhibitions? Exhibitions also have a major impact on local and national economies: Generating direct spending on local hotels, restaurants, transport etc. Creating employment – directly, in convention centres, hotels, restaurants etc, and indirectly, by assisting the development of small and medium enterprises Raising city/regional profile (Why Exhibitions, 2010)

7. Why Exhibit? Highly targeted Flexible A two-way communications process The buyer comes to you Neutral sales environment A three-dimensional medium Fast market penetration

8. Why Visit? Evaluate competing solutions Discover new, more effective solutions Test drive the latest products Connect with new suppliers, customers and business partners Stay up-to-date with emerging trends Upgrade your skills Further your career (Tips for Success, 2012)

9. Why Visit? Gain new ideas and insights to grow your business Celebrate outstanding achievements in your industry Network with your peers from across the country and around the world Engage with your industry community locally and globally (Tips for Success, 2012)

10. Exhibitions “A place where manufacturers and retailers of a certain product category or sector meet each other to talk about trade, to present their products and services, to exchange ideas and network, and to buy and sell products.” De Pelsmaker, Geuens, & Van den Bergh (2010)

11. Exhibitions Exhibitions fulfil a role for customers by enabling them to become familiar with new developments, new products and leading-edge brands (Fill, 2009, 688) The main aim is to develop long-term partnerships with customers, to build upon or develop the corporate identity and to gather up-to-date market intelligence (Shipley &Wong, 1993 cited in Fill, 2009, 688)

12. Exhibitions and Trade Shows “Temporary events for the purpose of displaying and/or selling products; usually based around a particular theme, product category or customer grouping. They are principally designed to bring together potential buyers and sellers under one roof.” (Picton & Broderick, 2005, 674)

13. Exhibitions and Trade Shows  Marketing goods and services through trade shows dates back to A.D. 1240  More than 16,000 trade shows create an annual $50 million in business worldwide  An estimated $75,000 is allocated for each show (Czinkota & Ronkainen, 2010, 391)  There are two main types of trade shows: horizontal and vertical (Onkvisit & Shaw, 2009, 528)

14. Table 15.1 Types of exhibition, in De Pelsmacker et al, 2010, 501

15. Table 15.3 Top public and trade exhibitions in the UK, in De Pelsmacker et al, 2010, 503 Source: Association of Exhibition Organisers & ABC, August 2002

16. Table 15.4 The place of exhibitions in the communications mix, in De Pelsmacker, 2010, 504

17. Figure 15.1 Marketing communications objectives and trade fair participation, in De Pelsmacker, 2010, 505

18. Table 15.5 Objectives of trade fair participation in the UK and Belgium in De Pelsmacker, 2010, 510. Based on: Blythe, J. (2002), ‘Using Trade Fairs in Key Account Management’, Industrial Marketing Management, 31,

19. Table 15.6 Trade fairs as instruments to reach specific marketing communications objectives, in De Pelsmacker, 2010, 510

20. Reasons for participation  Trade fairs provide an excellent opportunity to introduce, promote and demonstrate new products – Cars  An appearance produces goodwill and allows for cultivation of contacts as well as motivating employees  The opportunity to find an intermediary  Attendance is one of the best ways to contact government officials and decision makers, especially in China

21. Reasons for participation  Trade fairs provide an excellent chance for market research and collecting competitive intelligence  Exporters are able to reach a sizeable number of sales prospects in a brief period (Czinkota & Ronkainen, 2010, 391-392)

22. Reasons for non-participation  High costs – can be avoided by participating in events sponsored by the Deparment of Commerce or DTI  Difficulty in choosing the appropriate trade fairs  The problem of coordination (Czinkota & Ronkainen, 2010, 392)

23. Trade Shows and Exhibitions Advantages – An opportunity to: Meet existing/lapsed customers Take orders/make sales Get leads and meet prospects Meet members of existing/new marketing channels Undertake market research – primarily research into competitors

24. Trade Shows and Exhibitions Advantages Exposure to wide range of media Good place to launch new products Opportunity to build relationships with stakeholders

25. Trade Shows and Exhibitions  Disadvantages Takes up a great deal of management time Salesforce diverted from core activity Non-attendance can be seen as a weakness Relatively limited reach for consumers

26. Exhibitions as part of IMC  Enables product demonstrations and brand/profile building in short space of time Exposure to media Exposure to customers Exposure to distributors

27. Exhibitions as part of IMC Exhibitions can be very effective as part of an IMC campaign. Advertising pre/post exhibition Direct mail to prospective customers (free tickets) PR campaign around exhibition Sponsorship of elements of exhibition to raise profile i.e. tickets, programme, dinner Sales promotion – competitions/prize draws during show to attract prospects for database Corporate hospitality to entertain key players

28. Planning stages 1. Set objectives 2. Select which exhibitions/trade shows to attend 3. Plan staffing for stand 4. Plan support promotions 5. Decide stand layout and contents – design stand 6. Plan follow-up activities 7. Plan the ‘project’ – logistics 8. Evaluate and follow-up

29. Selecting the right Exhibition Research into appropriate exhibitions UK/Worldwide Review visitor profiles/numbers Review cost of exhibiting Check availability of suitable space Timing (consider company plans)

30. Reasons for poor performance 1. Inadequate statements of purpose and objectives 2. Poor quality visitors 3. Bad location of stand 4. Ineffective quality and design of stand 5. Undistinguished performance of staff 6. Lack of follow-up of leads 7. Ignoring the competition 8. Poor recognition of company and corporate identity 9. Breakdown in organisation 10. Inadequate control of costs and budgets (Adapted from Smith & Taylor, 2004, 519)

31. Stand development and logistics Staff Furnishings Refreshments Audio-visual equipment Communication literature Give-aways Security

32. Evaluation – post show Key questions: 1. What percentage of our target audience visited the stand? 2. How many leads/enquiries were created? 3. What was the cost per contact/visitor? 4. What percentage of contacts/visitors plan to buy the product/service? 5. What was the cost per “serious” visitor? 6. What was the cost per order? 7. How effective was staff performance? 8. Did the company overspend/under spend? (Adapted from Smith & Taylor, 2004, pp. 515-516)

33. CeBIT 2012

34. Summary Powerful communications tool No other activity brings so many buyers and sellers together under one roof Requires significant commitment Dissent about use and effectiveness Depends on goals set Evaluation undertaken Worldtravelmarket's Channel - YouTube

35. References Czinkota and Ronkainen (2010) Principles of International Marketing. 2e. Mason, OH: Cengage De Pelsmacker, P, Geuens, M & Van den Bergh, J, (2010) Marketing Communications, A European Perspective. 4e, Harlow: Pearson Education Fill, C., (2009) Marketing Communications, Interactivity, Communities and Content. 5e. Harlow: Pearson Education Pickton, D., & Broderick, A., (2005) Integrated Marketing Communications, 2e. Harlow: Pearson Education Smith, P., and Taylor, J., (2004) Marketing Communications, An integrated approach. 4e. London: Kogan Page

36. References CeBIT 2010 has been very impressive (2010) Retrieved March 11, 2010, from http://www.cebit.de/end_of_show_report_2010 http://www.cebit.de/end_of_show_report_2010 Tips to get the most from your visit (2012) Retrieved March 6, 2012 from http://reedexpo.com/Visiting/Why-visit? Welcome to Reed Exhibitions. Retrieved March 11, 2010 from http://www.reedexpo.com/App/homepage.cfm?moduleid= 567+appname=100266 Why Exhibitions? Retrieved, March 11, 2010, from http://reedexoi,com?App.homepage.cfm?appname= http://reedexoi,com?App.homepage.cfm?appname 100266&moduleid=1220