The Role of Exhibitions
in the Marketing Mix
© UFI - The Global Association of the Exhibition Industry
Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
© UFI - The Global Association of the Exhibition Industry
Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany 2
Dear visitor,
Welcome to the online course of UFI:
?The Role of Exhibitions in the Marketing Mix?.
This online course is directed to:
lecturers who want to introduce the topic "fairs and
exhibitions" to marketing and communication
classes, students who want information about trade
fairs as a marketing instrument and personnel of exhi-
biting organizations who want to learn about the be-
nefits of participating in trade fairs.
The content is structured as follows:
? In the first three Chapters general information
about trade fairs and the exhibition industry is
presented (definitions, integration into the marke-
ting mix, historical background, benefits of trade
fairs).
? The essential features of participation in trade fairs
are described in Chapters IV - VI.
A special focus is on integrated marketing and the
future of the value of trade fairs and exhibitions in
overall marketing strategies and action plans.
The course lasts about eight hours. It can be used
free of charge. A PDF and a power-point version are
attached. If there are any further questions you may
contact Dr. Rowena Arzt, Director of Business Develo-
pment ([email protected]); Prof. Dr. Beier (Author),
Cooperative State University, Ravensburg,
Germany ([email protected]).
I. Fairs, Expositions and Exhibitions
A. Definitions
B. Types of Exhibitions
II. Historical Development
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
B. The Exhibition Industry in the world
C. Importance for Exhibiting Enterprises
IV. Integrated Exhibition Marketing
A. Information Sources
B. Specific Marketing Aspects
V. Trade Fair Participation
A. Selection Criteria
B. Exhibition Strategies and Styles
C. Exhibition Targets
D. Stand Impact
E. Follow-up Measures
F. Risk Management
VI. Evaluation of Participation
A. Importance of Evaluation
B. Efficiency Assessment
C. Auditing
VII. Summary
A. Conclusion
B. Future Development
© UFI - The Global Association of the Exhibition Industry
Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
REMARKS
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I. Description of Fairs, Expositions and Exhibitions
A. Definitions
The roots of the phenomenon "Fairs, Expositions and Exhibitions" can be traced
back to its language origin: "Fair" comes from Latin "feria", meaning "holiday" as
well as "market fair". This in turn corresponds to the Latin "feriae", which means
?religious festival?.
1
During the 12th century the importance of trade-related meetings increased;
fairs were held close to churches, so that the concepts of religious festival and
market fair were combined in the common language.
2
The word ?exhibition? was mentioned as early as 1649. It is a derivative of the
Latin word "expositio", meaning "displaying" or "putting on a show".
3
Exhibitions are not just collections of interesting objects brought together at a
certain place and time. They are human activities, human enterprises, undertak-
en for definite reasons and in order to achieve certain specified results.
They are a form of human exchange, whereby the promoters and exhibitors
communicate with the visitors. Their results can only be told in terms of further
human thought and activity.
4
The word "exposition" goes back to the same origin as "exhibition".
Expositions, rooted in old French, tended to be very similar to their English
cousins, exhibitions. Expositions were held in facilities built specifically for
them.
They were organized by either government departments or groups of entrepre-
neurs with government assistance for the express purpose of promoting trade.
Manufacturers were invited to show their goods.
5
In colloquial speech the concepts are used similarly. However, there are some
interesting conceptual differences which show the variability of today's exhibi-
tion industry. Have a look at the next pages and follow the descriptions.
1
Cf. Barnhart, Robert K, The Barnhart Dictionary of Etymology, London 1988, p. 366. See also: Waters, H.W.
History of Fairs and Expositions: Their Classification, Functions, and Values.(London, 1939).
2
Cf. Walter, Rolf, Wirtschaftgeschichte: Vom Merkantilismus bis zur Gegenwart, 3rd ed. Cologne 2000, p. 7.
3
Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 11.
The terms exposition – exhibition – trade show and trade fair (also fair) are similar and used interchangeably
in this paper; as described by Meffert, an unambiguous disassociation is not possible, cf. Meffert, Heribert,
Grundlagen marktorientierter Unternehmensfuherung, Konzepte – Instrumente – Praxisbeispiele, 9th ed.
Wiesbaden: Gabler, 2000 p. 741.
4
Luckhurst, Kenneth W, The Story of Exhibitions, London 1951, p. 9.
5
Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 11. See also Findling, John E.
and Pelle, Kimberly D. (Eds.). Historical Dictionary of World‘s Fairs and Expositions, 1851-1988, New York:
Greenwood Press 1990, XIX.
Slide 3
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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Fair
The Middle Age English word "feire",
which means a gathering of people held
at regular intervals for the barter or sale of
goods, is the one from which the present
day definition, i.e. a periodic gathering for
sale of goods, often with shows or enter-
tainment, at a place and time fixed by cus-
tom, is taken.
6
Georg Emanuel Opiz
Russians at the fair in Leipzig 1825
Museum of town history, Leipzig, Germany
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
6
Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 9.
Fair
Trade fair Trade show Consumer show
Mixed show
Exposition Exhibition Exhibition
Earliest type of market,
direct selling
Generic terms, interaction with buyers and
sellers, displaying goods and services
International exposition,
special segment of an industry
B-to-C exposition
General public as visitors
B-to-B exposition
Trade visitors
Slide 4/5
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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Expositions and exhibitions
They have always been combined with the display of goods and products.
7
Exhibitions differ from fairs in four major ways:
8
? One-time events
First, exhibitions are usually one-time events. They do not enjoy a recurring
life cycle. However, while fairs run for a short period of time, many exhibi-
tions run for months, some for a year or longer. The first representatives of
this category were the World Expos (see chap. World Expos).
? Permanent facility
Second, exhibitions are housed in permanent facilities built specifically for
them. Starting in the 18th century, the practice of building a facility for the
express purpose of housing an exhibition was the precursor of the exposi-
tion/convention centre industry.
? Highly organized events
Third, although fairs are held regularly, they are not highly organized events.
Over time, religious and later civic leaders did take control of the grounds
where fairs are held (usually public lands). Exhibitions, on the other hand, are
highly organized events. They were initially created by government depart-
ments or committees for the purpose of promoting trade.
? Stimulation of future sales
Finally, exhibitions differ from fairs in the very way in which business is con-
ducted. Goods are bought and sold at fairs. At exhibitions, commercial activ-
ity or selling the displayed goods is not usually involved. However, inherent
in displaying goods is the hope of stimulating future sales.
Today this is how most exhibitions still operate.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
7
Allwood, John, The Great Exhibitions, London 1977.
8
Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 10f.
Slide 6/7
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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2008 Canton Fair:
- National Pavilion:
18,207 Exhibitors
- International Pavilion:
514 Exhibitors
- Number of overseas buyers:
192,013
- Business Turnover:
$ 38,230 Million
- Exhibition Space:
851,000 m
2
Trade Fairs
They have been the primary marketing medium of exporting countries.
The exhibits are confined to one industry or a specialised segment of a special
industry. They are more commonly known as trade fairs. Historically, trade fairs
have been the primary marketing medium of exporting countries.
Initially, trade fairs were horizontal in their organization, with various products
and/or services in specified industry groupings. A vertical organization is more
commonplace today with the exhibits being confined to one industry or a spe-
cialized segment of a specific industry. Buyers are usually business members
of an industry and often must be pre-qualified to attend the fair.
9
The China Import and Export Fair, also called the Canton Fair, has been held
twice a year in spring and autumn since it's inauguration in 1957. It is China's
largest trade fair, presenting complete varieties of goods with a vast attend-
ance and business turnover. Preserving its traditions, this Fair is an event of
international importance.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
9
Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 14.
Slide 8/9
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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Trade Shows
Trade shows are b2b events. Companies in a specific industry can showcase
and demonstrate their new products and services. Generally trade shows are
open to trade visitors. They are attended by company representatives and
members of the press. Nowadays, some of the trade shows, especially those
for consumer goods, are also open to the public.
Examples of trade shows are CeBIT and Hong Kong Electronics Fair (IT-
industry).
Historically, trade shows have been conceived of as vehicles of communication
with company exhibits fulfilling an advertising and display function. Over time,
this view has been challenged and replaced with the view that trade shows are
primarily events where products and services are sold, or contracts and rights
signed. However, in some instances, product or service offerings and buying
processes are regarded as too complex to permit full assessment or commit-
ment to be made on-site. In such situations, trade shows, at best, are likely to
generate sales leads to be followed up afterwards. In the 1980s, a broader
view of trade shows became more accepted. Several researchers argue that
companies use trade shows to pursue multiple objectives beyond communica-
tions and selling.
CeBIT 2009 got off to a powerful start and ended on a successful note, boosting optimism in the
world ICT industry. A majority of the 4,300 companies from 69 countries drew fresh optimism
from being at CeBIT.
http://www.cebit.com
CEBIT,
Germany
world?s largest
show for the
computer industry
Web: Keynote by Arnold Schwarzenegger
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 10/11
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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Trade shows or b2b shows do have certain distinguishing characteristics that
set them apart from consumer or combined shows. The exhibitor is typically
a manufacturer or distributor of products or services specific or complementary
to those industries authorized at the show.
The typical buyer is an industrial end user, or distributor, within the industry
segment hosting the exposition.
Attendance is restricted to these buyers and is often by invitation only. Busi-
ness credentials or pre-registration are usually required to qualify the buyer as a
legitimate member of the trade or industry. An access or registration fee may
also have to be paid prior to admission to the event.
Trade show events may be as short as a single day or as long as seven to ten
days depending on the markets being served. Some are held semi-annually.
Most are held annually, a few biennially. Some large-scale industrial exposi-
tions are held once every three to seven years.
10
Hong Kong Electronics Fair
Asia's largest show for the computer industry
10
Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 13. See also Stevens, Ruth,
Trade Show & Event Marketing: Plan, Promote & Profit.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 12/13
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
REMARKS
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Trade Shows – Thailand
"Thaifex? – World of Food Asia is the central platform for the
food and beverage business in Southeast Asia. More than
1,000 exhibitors are expected to showcase their products at
the trade fair this year. In 2008, 21,833 trade visitors from
127 countries visited the event, and they saw 1,011 exhibi-
tors who represented 32 countries and regions. Many group exhibitors take
part in Thaifex – World of Food Asia every year, such as those from China,
France, Germany, Italy, Korea, Malaysia, Netherlands and Peru.
http://www.worldoffoodasia.com
Trade Shows – India
SATTE is now in its 16th year. What started as pure inbound, has now be-
come a name for buying and selling Indian tourism.
Hosting over 4000 tour operators from 40 countries worldwide.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Examples of trade shows from different countries
http://www.satte.org
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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The National Trade Center, Toronto, Canada
Approximately 175,000 people visit the annual Na-
tional Trade Centre to experience the latest trends,
product innovations and fashion-forward decorating
ideas for the home. As the largest home show in
North America, the National Home Show features
more than 800 exhibitors offering a selection of
home products and services that is second to none. It‘s a chance to get a
sneak peek at the latest and greatest products for the home and to see what
the future holds for homeowners across Canada.
(http://www.nationalhomeshow.com)
Consumer Shows (public shows)
11
Consumer shows are events that are open to the general public. Exhibitors
are typically retail outlets, manufacturers or service organizations looking to
bring their goods and services directly to the end user. A consumer show, or
public show, is an event that serves specific industries or interests, held for a
particular duration of time (1 to 10 days). They include several shows: e.g.
home shows, car shows, sportsman shows, computer and technology shows,
and many others. The primary purpose of a consumer (public) show is direct
selling. Buyers (consumers) are brought together with sellers of goods and
services. Consumers benefit from a diverse product mix, expert advice, edu-
cation and entertainment. Sellers benefit by immediate consumer purchases,
product and brand awareness, public relations, research and development,
and product testing.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
11
http://www.goodfoodshow.com.au
Slide 16/17
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
REMARKS
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Consumer Show – Australia
The Good Food & Wine Show has established itself as
Australia‘s largest consumer food & wine exhibition.
Since 2001, the Good Food & Wine show has grown
from strength to strength and
today over 120,000 visitors flock to the Melbourne,
Sydney, Perth and Brisbane events to shop, sample,
stimulate their senses and meet their food heroes.
http://www.goodfoodshow.com.au
Consumer Show —
Las Vegas, USA
The Consumer Electronics Show
in Las Vegas is one of the most
influential trade shows in the
electronic world. At the CES
Convention Las Vegas visitors
and residents scour the floors
for the latest and greatest offer-
ing a huge variety of the newest technological products.
At each Consumer Electronics Show, trade show participants from the big-
gest names in the industry often announce or debut their newest product
lines. This brings about major exposure to new products all around the world.
Tech-junkies from near and far all head to Las Vegas each January for a week
of the biggest headliners in the tech world. Las Vegas hotels and casinos fill
up fast as thousands clamor to get to the trade show.
http://www.cesweb.org
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 18/19
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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Mixed shows
Mixed shows are a combination of trade and public shows. Exhibition organis-
ers tend to open their trade shows to trade and to public visitors.
Example:
Special types of trade fairs
Finally, trade fairs are combined with other events such as seminars, fashion
shows, special events and congresses.
This combination raises visitor interest, driven by the high demand for infor-
mation exchange and the availability of experts. Exhibitors use this kind of
show to meet many experts of one market segment.
Dubai International Jewel-
lery Week
Dubai World Trade Centre, organizer of the region's exhibition for jewellery
and precious timepieces, presents Dubai International Jewellery Week.
Based in Dubai's celebrated "City of Gold", Dubai International Jewellery
Week reflects one of the world's most dynamic markets for luxury goods. It
provides the perfect platform for global and regional manufacturers to meet
buyers from the Gulf, North Africa, India and beyond.
http://www.jewelleryshow.com
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 20-22
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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Virtual fairs
They appeared in the 90s when internet use became widespread. The demise
of traditional fairs was considered "inevitable". Possible touted advantages:
elimination of usual trade show time constraints, space factors and exhausting,
long-distance travel. ?Productpilot? was initiated by Messe Frankfurt. It is a
trade fair between trade fairs. During the whole year Messe Frankfurt offers a
platform where visitors can research exhibitors and products from the trade
show portfolio of the organizer. Thousands of manufacturers, traders and ser-
vice providers from many different industries are registered in ?productpilot?.
All product and business information is updated regularly. It is possible to find
business partners, to exchange information and to discuss topics of shared in-
terest.
12
However, it is now clearly accepted that traditional fairs cannot be replaced by
virtual ones. Face-to-face contact remains a significant privilege of traditional
fairs. Applying customer relationship management (CRM) and building up the
loyalty of clients remain the advantages of exhibitions. Nevertheless, the World
Wide Web has very much affected the organization of exhibitions. Exhibitors
and visitors take their information from the net and decide whether to partici-
pate in the exhibition or not. Organizers try to communicate with their custom-
ers via the internet to save money and to accelerate the communication
process.
12
http://www.productpilot.com
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
MEDICA
Another good example is the medical branch which has one of the highest
needs for trade fairs and congresses. During the "International Trade Fair
with Congress World Forum for Medicine (Medica)" an extensive supporting
programme of speeches and debate forums is ser-
ved. An international continuous medical education
module in English is attached.
Even more visitor attention attracts COMPAMED, the
trade fair starting in parallel with MEDICA.
http://www.medica-tradefair.com/
Slide 22
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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Crystal Palace in London
built for WORLD EXPO 1851
World's Fair - EXPO: A special type of exhibition
World Expo is the generic name for various large expositions held since the
mid 19th century. The first international exposition took place in London in
1851.
Since its success, numerous expositions have been held all over the world, in-
cluding the Paris Exposition of 1889, which gave birth to the Eiffel Tower. The
official sanctioning body is the Bureau International des Expositions or BIE. Ex-
positions approved by BIE are universal, and international or specialized, lasting
from 3 to 6 months.
Universal expositions encompass universal themes that reflect the full range of
human experience. These Universal Expos usually have themes upon which
each country‘s pavilion is based For example, the theme for the Expo 2010 in
Shanghai, China, is ?Better City, Better Life".
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 23/24
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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Universal Expositions and International Expositions
Universal Expositions are held every 5 years on a site with no area limitations.
They last 6 months and address a general theme. Another example of this type
of exposition is the Expo 2005 in Japan: "Nature‘s Wisdom?.
International Expositions, such as the one in Zaragoza 2008, are held over
3 months on a site of no more than 25 hectares. They address a specific
theme, which in this case, was "Water and Sustainable Development".
To distinguish them from other fairs, expos require the total design of pavilion
buildings from the ground up. As a result, nations compete for the most out-
standing or memorable architectural structure.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 25
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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The 2008 World Exposition, Zaragoza, Spain
http://www.expozaragoza2008.es
Theme for 2008 World Exposition: "Water and Sustainable Development"
The 2008 Zaragoza International Exhibition was the first ever to deal with
?Water and Sustainable Development?. The 2008 Expo was a great interna-
tional event held on the banks of the River Ebro in which 104 countries, three
international organizations, and all of Spain‘s autonomous communities and
cities took part.
EXPO examples
The first real international exhibition took place in London 1851.
At least 14,000 exhibitors and more than six million visitors attended.
13
Recent Universal Expositions include Brussels Expo '58, Seattle Expo '62,
known as the Century 21 Exposition, Montreal Expo '67, San Antonio
HemisFair '68, Osaka Expo '70, Brisbane Expo '88, Seville Expo '92, Lisbon Ex-
po '98, Hanover, Germany Expo 2000. The Expo 2010 will be held in Shanghai,
China.
14
13
Cf. Mathias, Peter; Polland, Sydney (ed.), The Cambridge Economic History of Europe, Volume III, The
industrial economies, Capital, labour, and enterprise, Cambridge 1989, p. 100.
14
Anderson, Eleanor, The Expo Story, University of Toronto 1986.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 25
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When you consider the roots of trade shows and exhibitions in general, you
start thinking about how long people have been selling things to one another.
When hunter-gatherers in former times met other wandering tribes they dis-
played goods for change to gain the goodwill of the respective group.
It‘s a fundamental principle of business survival that has prevailed throughout
history and around the globe.
Historically, trade shows likely started with people simply displaying their
goods in public places. They talked with potential buyers about what they had
to offer. Then, they negotiated a purchase price or barter until a mutual agree-
ment was met.
When you investigate the history of trade shows and exhibitions you come
across the term ?bazaar?.
The Britannica describes BAZAAR (Pers. bazar, market) as follows:
?a permanent market or street of shops, or a group of short narrow
streets of stalls under one roof.?
The word has spread westward into Arabic, Turkish and, in special senses, into
European languages, and eastward it has invaded India, where it has been gen-
erally adopted. In southern India and Ceylon bazaar means a single shop or
stall. The word seems to have reached southern Europe early (probably
through Turkish), for F. Balducci Pegolotti in his mercantile handbook (c. 1340)
gives "bazarra" as a Genoese word for market-place. The Malayan peoples have
adopted the word as pazar. The meaning of the word has been much extended
in English, where it is now equivalent to any sale, for charitable or mere com-
mercial purposes, of mixed goods and fancy work.?
It is even believed that exhibitions or trade fairs began almost 600 years before
the birth of Christ.
While no precise record is available, the ?Book of Ezekiel‘ (in the Bible) written
in 588 BC, contains many references to merchants trading in a "multitude of the
kinds of riches with silver, iron, tin and lead". Ezekiel also talks about the city of
Tyre which was an important center of trade and commerce.
II. Historical Development
Slide 26
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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Fairs have been important institutions of the European trade. They can be
traced back to the high Middle Ages. The earliest market places, which can be
characterized as exhibitions, were founded in the Champagne region of France.
They started a continuous development which has lasted until the exhibition
industry of today. The development of the exhibition industry over several
hundreds of years can be divided into several stages.
? Medieval fairs = preferred markets before the 12th century
1
Until the 12th century only few references to fairs and large markets can be
found in the Franconia empire and the adjacent regions.
In France in 629 the Abbey of St. Denis gets privileges from Merovingian
King Dogbert I: the right to levy customs and special protection by the king.
Both were renewed continuously.
Privileges granted to a town from sovereign, emperors, kings
- Custom and exemption from custom and taxes
- During the fair, non-residents also were allowed to open their stands
- Fair courts were established (mediation, contracts)
- Military protection = a free escort
Example from Portugal in the 12th century: Tax exemption = feiras francas
II. Historical Development
1
Cf. Ott, Hugo; Schaefer, Hermann (ed.), Wirtschafts-Ploetz, Die Wirtschaftsgeschichte zum Nachschlagen,
2nd ed., Freiburg: 1985. Concerning the Bristis history see the interesting link:
www.stirbitch.com/cantab/profiles/medieval_fairs.html
Slide 27
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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12th and 13th century
2
During this period the first exhibition sites and trade centres emerge.
The first typical organizational structures of exhibitions can be identified.
? Fairs in the Champagne Region (six different times at four places)
? Trading centers in the Netherlands, France,
Central and Northern Europe, Italy
? Products which are dealt in...
? France: wine, cattle
? Italy: silk, pigments
? Central Europe: fabrics, linen, metal goods
? Northern Europe: furs
In France, the four most important exhibitions sites at that time are:
Provins, Troyes, Bar-sur-Abe and Lagny.
They organized the trade for Brabant and Flanders.
II. Historical Development
2
Especially Rouen, Saint-Denis, Troyes, Reims, Châlons-sur-Marne, Lagny, Provins were of importance. Cf.
Ott, Hugo; Schaefer, Hermann (ed.), Wirtschafts-Ploetz, Die Wirtschaftsgeschichte zum Nachschlagen, 2nd
ed., Freiburg: 1985, p. 93.
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A European exhibition net starts to develop in the 14th century
In the 14th century new trade centres develop. The west-east trade becomes
more and more important. At the end of the 18th century a net of exhibition
sites exists from Poland to Spain and England to Southern Italy.
The first European currency (ECU) is rising. Historical places for European
trade fairs in the Middle Ages:
Netherlands and Belgium
Bruges, Ypern, Gent, Antwerp, Bergen-op-Zoom, Deventer, Utrecht.
Germany
Frankfurt am Main:
In 1240 the first autumn fair is founded in Frankfurt. 70 years later in 1330 an
additional spring fair is permitted by Emperor Ludwig the Bavarian
Leipzig - Frankfurt: because of the change to the Gregorian
calendar there is an overlapping of fairs in Leipzig and Frank-
furt/Main. The transfer of the fair from Frankfurt to Leipzig be-
comes necessary.
3
South France, Switzerland, Italy, Spain
The most important trade locations are Geneva, Lyon, Besan-
con, Piacenza and Medina Del Campo. As a specialty, Medina
del Campo takes over the imperial financial administration of
Emperor Charles V. After the termination of the payment by
the emperor the fair is closed in 1575.
Geneva
1320 - 1464 Geneva is the largest fair city in Europe. Trade over the Alps
opens 4 times per year for 10 days per annum.
Products: textiles, luxuries, silk, spices, non-ferrous and noble metals, pig-
ments, furs, skins, wines, manuscripts.
II. Historical Development
3
Cf. Nordmeyer, Helmut, Frankfurt Trade Fairs
http://www.stadtgeschichte-ffm.de/download/chronik_3_e.pdf (accessed 01.02.04).
Slide 30
Bergen Op Zoom
Deventer
Ypern
Besancon
Medina del Campo
Piacenza
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In the 18th and 19th centuries new types of fairs gain profile. Sample fairs and
industry-specific fairs are developed. This development is favoured by increas-
ing industrialization, the improvement of the traffic infrastructure and the form-
ing of nation-states which guarantee certainty of law and transportation safety.
At that time more than 95 percent of national industrial exhibitions are conduct-
ed in Europe.
During the process of industrialization, fairs evolve from sites for direct sales to
sites displaying a broad range of available goods: only samples of diverse prod-
uct ranges are exhibited. These fairs are known as "Sample Fairs" (from the Ger-
man "Mustermesse"). Dealers only travel with commercial samples.
MM symbol
designed by Erich Gruner in 1917
?MM? stands for ?Muster Messen? (sample fairs)
It was in 1917 - for the Autumn Fair - when the Leipzig
graphic designer Erich Gruner created the double M as
the logo of the Leipzig Sample Trade Fair which was still
very young then. It probably has become the best-
known symbol of the city. The double M has appeared
as the central element of design in all of Leipziger Mes-
se's publications and correspondence ever since. Regis-
tered in 1956, the double M is protected as a registered
trade mark in about 60 countries around the world.
Leipzig is the first exhibition site to organize a sample fair in 1895:
? Pure samples fair dominated by factory owners presenting samples of
their goods: glass, ceramic, toys, musical instruments
? From 1918 technical fairs also are carried out.
II. Historical Development
18th and 19th century in Europe: Change from goods
to samples fairs Slide 31
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During the 20th century the market segments evolve more and more.
Work division increases. The industrial sector and the service sector grow to a
large extent. In parallel, international trade expands, corresponding to a rapid
increase of new enterprises.
The exhibition industry meets these challenges by developing industry-specific
exhibition concepts. They are characterized by the following:
? The nomenclature of the trade show, i.e. the range of products and services
authorized for the show, is determined by the products and services offered
within a special market segment.
? The exhibitors and visitors of the trade show belong to a special target
group of the market segment.
Associations representing the market segment initiate the trade show or are
invited to become partners of the exhibition organizer for the special event.
? Trade journals offer their services as media partners.
? The industry-specific concepts require specialists on the side of the organiz-
ers as well. The project management of the organizer needs adapted skills
and know-how of the market segment.
Corresponding to these new trade show concepts, the functions and tasks of
exhibitions expand. From the exhibitor's point of view the exhibitions have al-
ways been important distribution channels to sell products directly.
Now new objectives are developed:
? the improvement of the company's publicity and image
? public relations
? advertising
Trade shows become platforms of communication and customer relationship
management (CRM) tools. Advanced marketing strategies show that a compet-
itive market presence is only possible if the participation is embedded in the
integrated marketing concept of the company.
II. Historical Development
The 20th century: Trade fairs and trade shows
become the dominant type of exhibitions Slide 32
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The framework conditions for today's development of the exhibition industry
are established by the end of the last century.
The breakdown of the communist system and the resulting transformation of
the former centrally planned markets to market oriented economic systems
prepare the ground for intensified trade and increased exchange of infor-
mation.
The formation of economically cooperating regions e.g. EU, ASEAN, MER-
COSUR, NAFTA und CUFTA positively influences the exchange of goods, ser-
vices and ideas. The liberalization of the Chinese market supports this develop-
ment.
As a result of these changes the exhibition industry started to adapt:
New and large exhibition sites are built or are under construction in China,
Korea, Singapore and the Near East. The fast-developing nations in these re-
gions place their expectations of economic growth and prosperity on the exhi-
bition industry. Some Asian organizers start to place their own exhibitions in
Europe or are cooperating with worldwide acting exhibition organizers.
In Eastern Europe numerous exhibition organizers expand their trade show
programme.
European exhibition organizers meet these challenges in different ways:
? domestic trade show concepts are exported to the growth markets
? they follow a branding concept to hedge their market positions
Example: Three German trade show organizers cooperate in a joint venture
with a Chinese organization. They have invested in facilities in Shanghai.
Other organizers cooperate with local partners to export their shows and to
benefit from exhibitors and visitors brought to their sites in return.
The future will show which of these ways will be the most successful.
II. Historical Development
The 21st century: Globalisation of the exhibition industry
Glossary:
EU = European Union
ASEAN = Association of Southeast Asian Nations
Mercosur = Mercado Común del Sur / English: Southern Common Market
Nafta = North American Free Trade Agreement
Cufta = Canada-US Free Trade Agreement
Slide 33
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The origins go back to London's 1851 Crystal Palace Exhibi-
tion
4
. The first World exhibition stimulated the development
of comparable events in America. These exhibitions draw
on, and reshape an early tradition of agricultural and me-
chanical fairs.
Horace Greeley and Phineas T. Barnum, organized America's
first international fair in New York City in 1853. It takes until
1876 for a group of Philadelphia civic leaders, together with the federal govern-
ment, to organize an international exhibition to celebrate the nation's centennial
and its reunification after the Civil War. Success of the Philadelphia Centennial
Exposition, attracting millions of visitors, launched the first generation of Amer-
ican international fairs: e.g. New Orleans (1884-1885), Chicago (1893), Atlanta
(1895). With the stock market crash of 1929 and the ensuing depression, the
Century of Progress Exposition (1933-1934) took on unexpected importance
and spurred the organization of expositions in San Diego (1935-1936), Dallas
(1936), and other cities.
Fairs during the depression era became a central part of
Franklin Roosevelt's New Deal efforts to demonstrate the
government's concern for the economic and social welfare
of Americans. International expositions continue to be orga-
nized in the wake of Seattle's exposition and New York's
1964-1965 extravaganza. Other cities followed. US exhibi-
tions and expositions are normally hosted together with conferences, seminars
or conventions, the latter being the main event.
Probably this speciality of the US exhibition economy can be explained by the
different distribution channels in the New World in comparison to Europe.
While in Europe exhibitions developed from markets, in the US trade represent-
atives or sales agents processed trade. The trade associations of the different
market segments have have been organizing professional conferences for
more than 100 years, the so called conventions. These are regular meetings for
the exchange of experiences and a ?Get Together? for buyers and sellers. The-
se meetings developed to combined events.
II. Historical Development
Example: United States of America
4
Cf. Rydell, Robert W.; Findling, John E; Pelle, Kimerly D., Fair America, World‘s Fairs in the United States,
Washington, London 2000, pp. 14 – 45.
Slide 34/35
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REMARKS
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III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
Economic functions
The exhibition industry takes over important economic functions. In the exhibi-
tion centre supply and demand are brought together. Exhibitions offer an inter-
active platform to the market participants.
They contribute to the development and revival of markets and market seg-
ments.
Additional economic functions are:
? Trade function:
Transactions of goods, services and information
? Transparency function:
Market overview
? Development function:
Support of the commercial development of nations, regions and cities.
Slide 36
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Visitor Survey
The main objective of the survey was to analyze trade fair visitors in terms of
their trade fair behaviour. In order to cover a broad spectrum of interests, trade
fairs from the field of office communications/EDP were taken as the basis. The
sample consisted only of qualified persons with decision-making authority in
this field.
The selection of the companies to be interviewed was made according to quo-
ta response alternatives. The quota matrix was based on the census of work
places of the Federal Statistics Office (issue 3/1989), which provides represen-
tative figures for the processing industry (21, 292 companies) in West Germa-
ny. A major element of the study is the classification of the trade fair visitors
according to their trade fair behaviour into four behavioural types. The trade
fair typology was produced by means of a cluster analysis, using the following
variables: preparations for the trade fair visit, the duration of preparations, the
duration of the trade fair visit, the tasks performed at trade fairs, etc.
16
A comparable cluster analysis
17
has shown that visitors – at technical fairs - can
be differentiated into four types:
? Type A: ?Intensive trade fair user?
? Type B: ?Special-interest trade fair user?
? Type C: ?Trade fair stroller?
? Type D: ?Pragmatist?
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
16
Cf. Ueding, Ralf, Management von Messebeteiligungen – Bericht auf der Basis einer empirischen Un
tersuchung, in: Meffert, H.; Backhaus, K. (ed.), Messemarketing im Wandel – Status quo und Perspektiven,
Muenster 1997, pp. 34.
17
Trade fairs and trade fair visitors in Germany Spiegel Verlagsreihe page 126 ff.
Slides 38
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Type C: ?Trade fair stroller?
? Uses trade fairs primarily as an instrument to observe the market
? Has little contact with exhibitor personnel and does not intend to buy
Type D: ?Pragmatist?
? Does not have any specific aim such as transacting business or
making a purchase
? Is very passive, seldom stays for more than a day and is oriented
to other sources of information
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
Slides 39-42
Type B: ?Special-interest trade fair user?
? Prepares in advance and uses the visits intensively, carefully considering
products or services
? Does not transact business directly at the fair
Type A: ?Intensive trade fair user?
? Utilizes trade shows as an important source of information,
particularly for current market developments
? Is highly communicative, uses trade fairs for serious networking
? Attends 21 exhibitions on average per year and every visit is planned
in detail
? In contrast to the other types, they tend to complete a sales transaction
during the fair
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The reasons why these functions can be successfully fulfilled are:
? Exhibitions are lowering transaction costs
1
The main reason for the existence of trade fairs can be found in the lowering
of costs per transaction. Such costs can arise from factors such as search
for information, contracting, legal advice, insurance, and competition moni-
toring. A cost reduction is gained by the concentration of providers and at-
tendees in one location at one time.
? Exhibitions represent a neutral sales area
Trade shows are held at a location which is neither the home territory of the
exhibitor nor of the visitor. The venue is a neutral area that makes it easier
for the visitor to freely select from a pool of information offers, with no com-
mitment. Both visitor and exhibitor are freed from interferences by daily
company duties.
? However, there is also a so called ?conditional location pull?
2
In many cases, a prerequisite for the usage of demanded services is that
they can only be consumed at the place of their production. Due to this, the
customer is forced by a conditional location pull, meaning that he is drawn
the place of manufacture. During the time of globalization, nowadays the
discussion again arises of whether trade shows should be held where the
industry manufacturing takes place or where the demand is located. A third
opinion declares neither as relevant. The future development will show
which option the exhibition industry will follow.
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
1
Cf. Anderson, E. Transaction Cost Analysis and Marketing, Transaction Cost Economics and beyond,
Boston , 1996
2
Cf. Unger-Firnhaber, Anne E., Pull Strategies for Parts and Components Suppliers in Business to Business
Markets, Dissertation, Sank Gallen 1996
Slide 43
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Disadvantages of exhibitions
A distinguishing feature of trade fairs is their limited availability.
3
Four dimensions can be identified:
? The date and the place is fixed by the organizer and cannot be moved at the
demand of an individual participant;
? Some fairs have appointed times by tradition. They often have been fixed
according to industry innovation cycles. Other organizers date their exhibi-
tions following the buying season of the industry;
? Sometimes important exhibitor groups are able to apply considerable pres-
sure on the organizers because of the importance of their attendance;
? Due to this, other marketing activities must be adapted to the fixed trade fair
participation, whose dates have to be considered, especially for advertising
campaigns connected with the trade shows. The limited availability also ap-
plies to other marketing instruments: e.g. advertising, TV or radio campaigns
take place at fixed dates and have a limited circulation.
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
3
Cf. Unger-Firnhaber, Anne E., Pull Strategies for Parts and Components Suppliers in Business to Business
Markets, Dissertation, Sank Gallen 1996
Slide 44
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REMARKS
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The following charts demonstrate how the economic network produces bene-
fits for different players in the exhibition industry. The following networks are
described on the following pages:
• Network – trade fair organizing company
• Network – exhibitors
• Network – visitors
• Network – region
An exhibition organizer places orders, pays taxes and invests in the infrastruc-
ture of exhibitions (1). Beneficiaries are the regional businesses,
the local government, and trade companies (2).
To organize and support trade shows employees are needed (3). Exhibitors are
also provided with personnel from the region (4). Wages, jobs and work places
are established (5). These efforts lead to income in the region and/or the city
(6). Personal expenditures multiply the beneficial impact.
4
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
4
Meeting Strategies, in:
http://www.businessweek.com/adsections/2003/pdf/0343meetings.pdf
Network – trade fair organizing company
Slide 45
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Network - exhibitors
Resident and non resident exhibitors pay registration and other fees to the or-
ganizer (1). They place orders, buy personal goods, pay taxes, rent cars and pay
for accommodation (2).
They employ temporary staff (3) and contribute to the exposition with infor-
mation, incentives and sales orders (4).
Beneficiaries, for example, are the organizer, employees from the region, retail
companies, handicrafts, hotels, restaurants, transportation, entertainment
and local government (5).
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
This chart shows the benefits which arise from exhibiting companies in a regi-
on where trade shows take place.
Slide 46
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REMARKS
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Network - visitors
Another group which contributes to the region‘s benefits are the visitors who
stay one day or more at the trade show.
Resident and non resident visitors pay admission fees to the organizer (1).
They acquire services, buy personal goods, pay taxes, rent cars and pay for ac-
commodation and restaurants (2).
They contribute to the exposition with information, incentives and sales orders
(3). In return they get a market survey, information about products and services
(4).
Beneficiaries, for example, are the organizer, retail companies, hotels, restau-
rants, transportation companies, entertainment and local government (5).
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
Slide 47
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Network - region
The following impacts are often underestimated. The region where the trade
shows take place benefits from the shows itself.
Exhibitions, trade shows and consumer shows help to develop the town's im-
age (1). The exhibition venue/region becomes well known.
The region and its businesses profit from information and incentives (2).
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
Slide 48/49
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REMARKS
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Spin-off Effect—Multiplier Effects
The benefit of trade fairs is not only restricted to the direct participants.
The spin-off effects also include the indirectly related players.
? firstly, the authorities profit from taxes paid on economic activities
related to trade fairs
? secondly, all hospitality service providers profit from an exponential rise in
demand, especially the accommodation industry, transportation companies,
restaurants and other purveyors of food and beverage
The multiplication effect increases the gain - taxis consume more fuel, petrol
stations benefit, et cetera. Additional money earned by employees and other
workers will be spent in further consumption and the catchment area.
5
Bologna region
100 km
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
5
An example see: Klimecki, R. G., Nittbaur, G., Regionalwirtschaftliche und strategisch Analyse der
Messe Friedrichshafen, Projektbericht, Konstanz, Friedrichshafen 1999
Slide 50/51
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Linkages and multiplier effects are used to explain the relationships between
an industry and the creation of wealth in an area. Linkages describe the rela-
tionships between industries, and the sales multiplier effect measures the di-
rect, indirect, and induced effects of an extra unit of visitor spending on eco-
nomic activity within a host community. It relates visitor expenditures to the
increase in business turnover that it creates. As a result more jobs are created
and the overall image and wealth an area improved.The following rough figures
are calculated to estimate the monetary effects of exhibitions.
6
How to read:
One euro paid to the exhibition organizer for admission or for exhibitor fees
leads to expenditures of 7 to 10 euro in other economic sectors of the region.
The more the economic infrastructure of a region is developed, the more
expenditures remain in the region of the exhibition.
In this way other enterprises, private persons, the region, state or the city profit
from the exhibition and the corresponding events.
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
6
Further aspects concerning mega-events see Teigland, J. (1999, December). Mega-events and impacts on
tourism: The predictions and the realities of the Lillehammer Olympics. Impact Assessment and Project Ap
praisal, 17(4), 305-317. See also Ritchie, J.R.B., & Smith, B.H. (1991, Summer). The impact of a mega-event
on
1,0 € 7,0 - 10,0 €
Slide 52
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Media comparison:
Advantages of the marketing tool "participation in exhibitions?
Managers from industrial enterprises in Germany were asked to evaluate which
communication instrument worked best to reach certain targets. They could
grade their answers between 1=excellent and 6=very poor. Below the results
of the comparison between "Participation in exhibitions" and "Classic advertise-
ment" are shown.
7
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
7
Cf. Spryss, Wolf M. Spryss, Messe Institut, Laubenheim 2004
Slide 53
Classic advertisement
Participation in exhibitions
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Exhibition Venues - The Global Situation
1062 venues (with a minimum of 5000 sqm of indoor exhibition space) were
identified for the year 2006 and their total indoor exhibition space reaches
27.6 million sqm.
Europe and North America, followed by Asia offer the highest venue capacities,
with respectively 44%, 34% and 12% of the total number of venues, and 52%,
26% and 14% of the total indoor exhibition space.
In terms of countries, five (USA, Germany, China, Italy and France) account for
58% of the total world indoor exhibition space.
8
Venues and Indoor Exhibition Space in 2010
and growth since 2006
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
8
UFI (http://www.ufi.org/media/publicationspress/2007_ufi_world_map_of_exhibition_venues.pdf)
Slide 54
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REMARKS
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Europe
The European Union represents 30% of the world GDP in 2008 (source: IMF).
Because of the many years of experience, especially in Western Europe,
more than 50% of the worldwide exhibition space is available in these coun-
tries; 465 exhibition centres offer space of 14.3 million sqm (source: CERMES,
University Bocconi, Milano).
The leading countries in Europe are Germany with 3.1 million sqm space, fol-
lowed by Italy (2.1 million sqm) and France (2.0 million sqm). The leading ven-
ues are Hanover Messe, Fiera Milano and Messe Frankfurt.
The key figures of exhibitions, exhibitors and visitors show the importance of
the European market. The Center for Research on Market and Industries at
Bocconi University collects these data regularly.
For 2008 figures are as follows:
The international exhibitions (mainly devoted to business visitors)
cover the following industry sectors:
? industry and technologies (14%)
? apparel, textile and fashion (13%)
? leisure and sport (11%)
? food and catering (8%)
? communication and office supplies (8%)
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
2008 estimated Total Of that:
International
Exhibitions 10.800 800
Exhibitors 1.360 million 430.000
Foreign exhibitors 164.000 239.000
Visitors 150 million 43 million
Organizers‘ headquarters
in Europe
1.500
Organizers also running ex-
hibition centres
300
Slide 55
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North America
The US is the world‘s largest economy. Nearly 25 % of the world GDP
(source: World Bank, 2008) is produced in the US. The leading industries
including petroleum, steel, motor vehicles, aerospace, telecommunica-
tions, chemicals, electronics, food processing, consumer goods, lumber
and mining are responsible for this outstanding economic output. Canada
contributes 2.5 % to the world GDP.
The North American exhibition industry can be characterised as follows:
? 359 venues exist and offer 7.1 million sqm indoor exhibition space
(source: UFI 2007)
? The biggest venue is located in Chicago with 248,000 sqm (McCormick
Place) exhibition space
? Las Vegas designates app. 370,000 sqm
? App. 70% of the venues are in public ownership
? Due to the history of the exhibition industry most of the organizers are
associations
? The industry is partly fragmented. There are many ?small? organizers
with only one or two shows
? The trade shows are national orientated.
Tradeshow Week, a subsidiary of Reed Elsevier, annually publishes the
figures of the 200 most important shows in the US. The key figures for
2008 are as follows
The International CES Consumer Electronics Show is one of the largest
shows in the US. It rents ca. 170 000 sqm indoor space annually. 24.5 %
of the 200 largest events take place in Las Vegas.
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
2008
Number of exhibitions 200
Net space sold (sqm m) 6.62
Number of exhibitors 200 257
Number of visitors (m) 4.6
Slide 56
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Asia
The Asian market for exhibitions is varied. Several regional
exhibition markets exist because of the geographic extension of the region.
The most important are:
? China and Hong Kong
? Singapore
? Japan
? Korea
? India
The development of the markets is different. China, Singapore and Korea
show extensive progress while India is developing slowly. Statistical data are
difficult to research as neither uniform definitions and standards nor a general
obligation to audit the shows exist. UFI members, however, are obliged to au-
dit "Approved events", thus ensuring visitors and exhibitors of declared quality.
Trade fair markets by estimated net square metres sold, 2008
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
14.3 million sqm of space was sold by trade fair organizers to their clients in
Asia in 2008. Of that total, almost 53% was sold in China, an increase com-
pared to 2007. Among the 1,793 trade fairs included in the BSG database, 853
or 47.5% were held in China and Japan.
9
9
http://www.ufi.org/media/membersarea/studies_reports/2009_bsg_report_summary_and_order_form.pdf
Slide 57/58
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Number and size of international exhibition centres in Asia, end 2009
10
10
UFI (Trade Fair Industry in Asia 2nd edition)
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
The dominance of the Chinese exhibition industry is illustrated by the following
diagram. 61 exhibition centres or 57% of the Asian centres are located in China.
If you consider the gross indoor space, even 2/3 of the indoor hall capacity sqm
is offered in China.
Slide 59
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The Chinese organizers are responsible for nearly half of the exhibition space
rented in Asia.
China: Market of the future for exhibitions
Trade fair markets by estimated net square meters sold, 2008
11
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
The exhibition market in China has been growing fast for more than six years
and the continually expanding number of high-quality venues opens up oppor-
tunities for organizers in second and third tier cities in China.
Significant challenges arise from a highly fragmented exhibition market with a
large number of trade fairs with similar names and similar themes competing
for business in the same local markets. Experts expect a wave of consolidation
to play out over the next several years in China.
China as a percentage of Asia‘s total exhibition space
11
11
UFI (The Trade Fair Industry in Asia, 2nd Edition)
Slide 58-60
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In 2008, the formal exhibitions held in China exceeded 3000, with direct reve-
nues of 14 billion Yuán (2 billion USD). The revenues of related industries were
about 130 billion Yuán (18.6 billion USD), realizing excellent economic and
social benefits.
As far as the exhibition scales and strengths are concerned, Beijing, Shanghai
and Guangzhou had been the center cities of Chinese conventions and exhibi-
tions, with the market shares accounting for 10 to 20% of the whole market
shares.
China is the country with the largest population in the world and huge market
space and consumption potentials. Compared with the annual hundred billion
USD convention and exhibition market in the world, the Chinese annual con-
vention and exhibition industry with a scale of over two billion USD scale has a
large potential of growth. This growth potential needs to be explored for the
investors regardless of the convention and exhibition industry or its related in-
dustries.
12
12
China Research & Intelligence
Shanghai Skyline
Dale Ellerm (http://www.flickr.com/photos/dale_ellerm)
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
Slide 61/62
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III. Benefits of Exhibitions
B. The Exhibition Industry in the world
Russia
The Russian exhibition industry has available 640,000 sqm of exhibition space
available. It is highly concentrated in Moscow, where 65% of all Russian exhibi-
tions take place and more than 80% of the international shows. St. Petersburg
is another important trade fair city. The construction of modern exhibition cen-
tres is planned in the following regions – St. Petersburg, Novossibirsk, Krasno-
dar and Yekaterinburg.
The main exhibition sectors in Russia include construction, transport, manufac-
turing, mining, food and drink.
The number of organizers is estimated to be 650. This shows the fragmenta-
tion of the industry. Some big players dominate the market.
Slide 63
Lenexpo St. Petersburg
today and tomorrow
http://www.lenexpo.ru
Crocus Expo Moscow
tomorrow
http://www.crocus-expo.ru
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Decision making of exhibitors: Media comparison
Organizations use different communication instruments to reach their marke-
ting objectives. To make the decision, of which instruments (see chart below)
to use, it is important to know how effectively each instrument works. The eva-
luation of all communication tools concerning marketing objectives leads to the
following ranking. The "participation in exhibitions" ranks as the No. 1 tool
(2.22). Personal selling follows. Both instruments emphasize face-to-face com-
munication. The other instruments are less effective.
13
Investment and buying decisions have to be carefully prepared. The intervie-
wees were asked which information sources they use for preparation of these
decisions.
Nearly half of the deciders use the internet. Trade shows and exhibitions (43 %)
are another important source followed by the trade press (32 %) and ?mailings,
brochures and catalogs? (32 %).
III. Benefits of Exhibitions
C. Importance for Exhibiting Enterprises
0 10 20 30 40 50 60
Internet
Trade shows/Exhibitions
Trade press
Mailings, brochures,..
Field service of supplier
Special presentations by suppliers
Radio and TV
Other
13
Cf. Anonymous, Trade Fairs and Trade Fair Visitors in Germany, Hamburg 1992, pp. 126 -131.
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Advantages of trade fair participation for exhibitors
What are the reasons for such a high ranking of exhibitions?
If we look at the peaks of the evaluation there are three major advantages.
These are:
? to introduce new products and services
? to initiate sales
? relationship management with known and future customers.
Exhibitions are of high public interest. Important sellers and buyers visit a
show. Media representatives use the events for publishing news about prod-
ucts and trends. Therefore trade fairs are useful for product launches. Because
of these reasons sales are initiated, too. There is a so-called ?transposing-and-
delay effect?, which means an exhibitor may realize a turnover from a show
more than 12 months after the closure of a show, particularly at an industry
show.
Face-to-face contact provides the opportunity to directly address potential cli-
ents. Within the company's Customer Relationship Management (CRM), trade
fairs are important tools to build up confidence. They are used together with
other marketing tools, e.g. the internet, direct marketing, personal selling.
Trade fairs offer the chance to promote the company and analyse the competi-
tion. In this way, the existing high public interest can be used to meet objec-
tives such as image-building, positioning and brand recognition. Trade fairs of-
fer further advantages to business people, chiefly the ability to network within
the industry while achieving major marketing goals.
14
III. Benefits of Exhibitions
C. Importance for Exhibiting Enterprises
14
Cf. Kerin, Roger A. and William L. Cron. 1987. "Assessing Trade Show Functions and Performance: An
Exploratory Study." Journal of Marketing 51 (July): 87-94.
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Types of Exhibitors
The following cluster analysis of exhibitors shows that there are various ap-
proaches, objectives and priorities which determine different types of exhibi-
tors:
15
? Cluster I: ?Hard sell exhibitors?
? Cluster II: ?Communication-oriented relationship-managers?
? Cluster III: ?Competition-oriented representatives?
? Cluster IV: ?Hybrid exhibitors?
? Cluster V: ?Ambitious regional exhibitors?
Cluster I: ?Hard sell exhibitors?
This group of exhibitors
? is completely focused on meeting targets
? prefers specialist trade shows with a homogenous group of exhibitors,
where direct selling is common
? includes goals achieving a set turnover, as well as remaining within the
budget, especially in comparison to participation in other events
The larger the company, the higher the tendency to monitor the competitors.
III. Benefits of Exhibitions
C. Importance for Exhibiting Enterprises
15
Cf.Küffner, Georg, Mortsiefer, Joachim, Messeplatz Europa.
Messen als Bestandteil des betrieblichen Marketings, Frankfurt 1990, p. 18]
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Cluster II: ?Communication-oriented relationship- managers?
? Aim their efforts primarily at implement-
ing communication objectives
? Prefer international trade fairs that are ac-
companied by other events, all of which
are informational in nature
? Aim to demonstrate their ability to solve
problems
? Priority is given to analysis of protocols of
conversation and structural composition
? They are strong adherents of Customer
Relationship Management techniques
(CRM)
Cluster III: ?Competition-oriented representatives?
? Are only rarely concerned with specific
goals
? Prefer a position within a heterogeneous
group of exhibitors and most often partici-
pate in national and regional trade fairs
? Are willing to compete and watch rival
activities closely, often adopting their
tactics, especially stand design
? Success is measured in terms of visitor numbers.
III. Benefits of Exhibitions
C. Importance for Exhibiting Enterprises
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Cluster IV: ?Hybrid exhibitors?
? Do not set extraordinary goals, although
employee motivation as a goal is com-
mon
? Tend towards international trade shows
because of their informational nature
Cluster V: ?Ambitious regional exhibitors?
? Aim at merchandising their goods (emphasis on product-policy)
? Are very interested in creating a positive image
? Are also very ambitious at evaluating success and comparing the effective-
ness of marketing tools
III. Benefits of Exhibitions
C. Importance for Exhibiting Enterprises
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IV. Integrated Exhibition Marketing
A. Information Sources
There are a number of reliable sources which distribute information about trade
fairs. Many countries support their industries. Information on where and how to
participate in trade fairs is often available from the responsible government
body or from the national Chambers of Industry and Commerce.
The following information sources can be used:
? Trade fair companies and event organizers
? Chambers of Industry and Commerce
? Chambers of Industrial Crafts
? Trade associations
? International databases
? National and international auditing companies
(i.e. companies which audit statistical data of trade fairs)
? National associations of the exhibition industry
UFI, the global association of the exhibition industry
UFI is the association of the world's leading tradeshow
organizers and exhibition centre operators, as well as the major national and
international exhibition associations, and selected partners of the exhibition
industry. UFI's main goal is to represent, promote and support its members
and the exhibition industry worldwide.
By promoting the unique characteristics of trade fairs, UFI:
? Provides an efficient networking platform where professionals of the ex
hibition industry can exchange ideas and experiences;
? Promotes trade fairs and exhibitions globally as a unique marketing and
communications tool;
? Provides its members with valuable studies and research regarding all
aspects of the exhibition industry;
? Offers educational opportunities and a variety of professional seminars;
? Deals with issues of common interest to its members through regular
meetings of its regional chapters and thematic working groups.
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IV. Integrated Exhibition Marketing
A. Information Sources
UFI represents 535 member organizations in 83 countries around the world.
844 of its members‘ exhibitions have earned the UFI Approved Event quality
label.
UFI members are currently responsible for more than:
• 4,500 exhibitions, most of them being international;
• 50 million square metres of space rented annually;
• 1 million exhibitors each year;
• 150 million visitors annually;
• 12 million square metres gross rentable exhibition space.
1
SISO
In 1990, 12 independent show producers felt the need to
discuss industry issues as they related to the for-profit
organizer. This group, representing the leading independent shows decided to
form an association of like-minded show producers that would be dedicated to
meeting the needs of the for-profit show producer. That was the formation of
SISO – The Society of Independent Show Organizers.
If there is one body that encompasses the influence and strategic thinking of
the for-profit trade show industry, one will find it at SISO, the only place where
presidents, owners, and CEOs of for-profit show producer companies meet,
exchange ideas, share experiences, launch industry-wide projects, and learn
from each other. SISO today represents more than 160 member companies
that range in size from smaller hotel meetings and exhibitions, to companies
with billion dollar global portfolios... and these exhibitions represent just about
every industry sector.
SISO members produce more than 3,000 events globally including trade and
consumer shows, industry and targeted conferences, and other face-to-face
events. Members operate and own their own shows as well as manage shows
for others. SISO members are diverse in size and scope.
1
http://www.ufi.org
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IV. Integrated Exhibition Marketing
A. Information Sources
The mission of the Society of Independent Show Organizers is to meet the
needs of CEOs and senior management of for-profit show producers in an en-
vironment where strategic and tactical decisions can be implemented to maxi-
mize their profit potential by providing:
1. Peer networking opportunities
2. Education
3. A consolidated voice to customers, suppliers, educational institutions and
government bodies, whether independently or in cooperation with other
industry associations
4. Research, white papers, industry trends, and best practices
in the events industry
2
IAEE
The International Association of Exhibitions and
Events (IAEE), formerly the International Association
for Exhibition Management (IAEM), is a trade associa-
tion established to promote the growth and expansion of the world wide exhi-
bition industry. This includes professionals who organize, conduct, and support
trade shows, exhibitions, meetings, and events at private and public venues.
IAEE accomplishes its mission through education and advocacy programs that
serve more than 6,000 members in 52 countries. In addition to hundreds of in-
dividuals, IAEE's serves partner vendors and service organizations that have
business interests in the exhibition industry.
IAEE was founded in 1928 as the National Association of Exhibition Managers,
to represent the interests of trade show and exhibition managers.
IAEE promotes the unique value of exhibitions and other events that bring
buyers and sellers together such as road shows, conferences with an exhibiti-
on component, and proprietary corporate exhibitions. IAEE is the principle re-
source for those who plan, produce and service the industry.
3
2
http://www.siso.org
3
http://www.iaee.com
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? Expo-Online-Databases Germany, USA and Asia
There are several databases available providing information about trade fairs.
Click on the company name for access to their database.
? Asian Sources (www.asiansources.com):
Database for Asian exhibitions. Additional information about new products,
Online-Product research, direct contacts to producers, exporting and import-
ing companies. Co-operation with ?Trade Show Central?.
? AUMA (www.auma.de):
Database for both german and international exhibitions
The AUMA database provides detailed statistical information about trade fairs
in germany and foreign trade fairs organized by German companies.
? Exhibitions round the world (www.exhibitions-world.com):
Asia-database. 86 research categories. The following information is available
online: Export and exhibition guide, directory of exhibition companies, stand
constructing companies and hotels.
? Expobase (www.expobase.com):
Large database of German and foreign exhibitions. Leads to information about
stand constructing companies, hotels, services, forwarding trade.
? Expoweb (www.expoweb.com):
Expo-database of US expositions with 78 industrial segments, alphabetic reg-
istration.
? Trade Show Central (www.tscentral.com):
Database of more than 30,000 worldwide registrated exhibitions; less infor-
mation. Additional information can be ordered by e-mail. Co-operation with
?Asian Sources?.
? The Trade Show News Network (www.tsnn.com):
Database of US exhibitions with research within 108 industrial segments.
Newsletter free of charge with tips about exhibitions and marketing. Online-
booking of hotels, tickets and car-rental. Experts answer questions about exhi-
bitions and marketing. Monthly online answering of questions.
IV. Integrated Exhibition Marketing
A. Information Sources
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IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
Trade fairs are multifunctional:
? they can be mixed with separate instruments and can hardly be seen as
independent without overlapping with other tools, such as advertising
or promotion
? must be integrated into a company‘s strategic marketing concept, and
adjusted to the other marketing tools
? all other marketing instruments must be adapted to the fair participation
and repeatable, because ?Trade show participation is too expensive to
be limited to the exhibit alone?
4
The importance of specific communication tools and media: n=502 exhibi-
tors (source: AUMA 2010)
4
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason ,
Ohio : South-Western, 2002, p. 379.
Slide 78/79
AUMA, the German association of the exhibition industry, regularly conducts a
survey about the use of the actual and future use of trade fairs by representati-
ve German enterprises. The latest questionnaire of 2010 contained a question
about the importance of different communication tools.
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IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
Slide 78/79
The company‘s internet presence was classified as the the most important
communication tool (90%), followed by trade fairs and exhibitions (83%)
and the company‘s customer relations in the field service (76%). Two of
these tools focus on personal contacts. A less important group of marke-
ting instruments includes: Direct-Mail (57%); advertising in professional
journals (53%), public relations (44%), product sales via internet (42%),
other events (e.g. roadshows, 41%) and presentations at congresses
(36%). The other communication tools are of minor importance (e.g. adver-
tiseing: outdoor, using other internet tools, in newspapers, canvassing,
sponsoring, TV and radio).
Trade shows and exhibitions link to business:
? Product policy
? Distribution policy
? Contract policy
? Promotion policy
Trade fair participation can be regarded as a stand alone communication
tool or as a complement to other marketing tools. Trade shows require a
combined input of different communication tools. Many other marketing.
instruments: e.g. advertising, public relations, promotion, have to be used
to successfully participate at the trade show.
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Product policy
Product policy is of little importance for the participation in trade shows.
Exhibitors who are using trade shows as an independent distribution channel
combine products and services to get a special fair package. This package is
sold as a unique offer, only available at the trade show.
To match the trade show nomenclature which is allowed by the organizer, the
exhibitors must select corresponding company products.
5
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
5
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason ,
Ohio : South-Western, 2002, pp. 317-330.
Slide 80/81
Trade fairs and exhibitions:
Relations to marketing tools
Product policy (mix)
? Quality
? Assortment
? Brand
? Service
Exhibition assortment
Trade fair
Contract policy (mix)
? Price
? Credit
? Rebates, discounts
? Cash discounts
? Terms of a contract
Communication policy
(mix)
? Public Relations
? Personal Selling
? Advertising
? Sales Promotion
Exhibition-Communication
? Stand-Conception
? Exhibition Advertising
? Direct-Marketing
? Exhibition PR
? Event-marketing
? Personal selling (visitors)
? Co-operation for
communication
(Exhibitor/organizer)
? IT-Marketing
? Distribution policy
(mix)
? Channel of distribution
? Logistics
? Fairs and Exhibitions as
a stand-alone
distribution channel
? Placement within the
exhibition hall
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Distribution policy
Distribution can have two purposes for exhibitors.
In some market segments trade shows are used as a unique distribution chan-
nel and play an important role in selling the company‘s products (e.g. the jewel-
lery and watch industry).
The placement of the exhibitor‘s booth in the exhibition area can be regarded
as a distribution decision as well. The right placement – high frequency of visi-
tors – will influence the individual success of the exhibitor.
6
Exhibitor?s booths at BASWELWORLD, Basel, Switzerland
http://www.baselworld.com
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
6
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason ,
Ohio :
Trade fairs and exhibitions:
Relations to marketing tools
? Distribution policy
(mix)
? Channel of distribution
? Logistics
? Fairs and Exhibitions as
a stand-alone
distribution channel
? Placement within the
exhibition hall
Slide 82
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Contract policy
To motivate customers to visit the trade show and to buy products and ser-
vices there is the possibility to offer special trade show prices to the visitors.
They get discounts depending either on their exhibition presence or on the
product quantity bought. Sometimes special terms of payment are offered. Vis-
itors might postpone regular purchases to take advantages of the reduced pric-
es.
7
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
7
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason , Ohio :
South-Western, 2002, pp. 331-356.
Slide 83
Trade fairs and exhibitions:
Relations to marketing tools
Contract policy (mix)
? Price
? Credit
? Rebates, discounts
? Cash discounts
? Terms of a contract
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Communication policy
The participation in trade fairs is first and foremost a communication or
promotion tool, to promote products, services and brands. On the follow-
ing pages the specific communication tools used for the exhibition partici-
pation are described:
8
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
8
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason , Ohio:
South-Western, 2002, pp. 370-380.
Slide 84
Trade fairs and exhibitions:
Relations to marketing tools
Communication policy
(mix)
? Public Relations
? Personal Selling
? Advertising
? Sales Promotion
Exhibition-Communication
? Stand-Conception
? Exhibition Advertising
? Direct-Marketing
? Exhibition PR
? Event-marketing
? Personal selling (visitors)
? Co-operation for
communication
(Exhibitor/organizer)
? IT-Marketing
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Stand Conception
Several experts are necessary to complete an attractive and informative booth:
e.g. experienced architects, stage designers, graphic artists, craftsmen, and
booth builders.
? A booth concept is a three dimensional way of promoting a firm. Colours,
light, design and audio-visual techniques are used to present products
and services.
? The pictures show different ways of using the possible design elements.
As the stand-conception is unique compared to other marketing tools,
it is introduced in more detail in Chap. V.D ?Stand Impact?.
IF communication design 2009 awarded fair stands
http://www.ifdesign.de
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
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Trade fair communication activities
? An advertising campaign
9
can be used to announce a company‘s trade show
participation and to invite special target groups.
Direct marketing has to be regarded as a corresponding tool to motivate
customers to visit the trade show.
? Trade fair - Public Relations:
10
Depending on the company‘s significance different public relations instru-
ments can be used: press conference, press kits, press interviews. These
tools help to announce the company‘s participation, to promote new prod-
ucts and to improve the firm‘s image.
? Marketing events
11
can be used as additional attractions. They are realized
either at the booth or can be organized outside the exhibition area. Market-
ing events help to produce emotions and support the efficiency of the use
of the other tools.
? Personal selling:
12
Trade shows are a special tool to build up relations and to have personal
contacts to actual or prospective customers. As exhibitions are predestinat-
ed by the face-to-face contact to customers, customer relation management
can be practiced personally and directly.
? Co-operation for communication
13
The organizer‘s and exhibitor‘s interests
are equal concerning the promotion of visitors. The more quality visitors pre-
sent at the trade show, the better for both parties. Therefore organizers offer
different material which can be used by the exhibitor: e.g. brochures, leaf-
lets, area plans, free entry tickets.
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
9
Mason , Ohio : South-Western, 2002, pp. 632-638.
10
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason,
Ohio : South-Western, 2002, pp. 641-643.
11
Cf. Goldblatt, Joe Jeff; Special Events, 2nd edition, John Wiley & Sons, New York et al. 1997, pp. 6-10.
12
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason,
Ohio : South-Western, 2002, pp. 638-639
13
Cf. Goldblatt, Joe Jeff; Special Events, 3rd edition, John Wiley & Sons, New York et al. 2002, pp. 261-275.
Slide 86
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IT-Marketing
? During the last years IT-Marketing has become a very successful tool to
contact potential customers and to open new markets.
Organizers offer special websites where the exhibitors are able to pre-
sent their products and services.
? There should be a newsletter to announce the participation. Before and
during the participation the exhibitor informs his customers and other tar-
get groups about special events at the trade fair.
? A label signet which announces the participation should be attached to
every outgoing e-mail in a digital form.
14
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
14
Cf. Goldblatt, Joe Jeff; Special Events, 3rd edition, John Wiley & Sons, New York et al. 2002, pp. 275-276.
Slide 87
E-Mail Marketing Kit
http://www.flickr.com/photos/johnonolan
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IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
Slide 88/89
New Media - Word of mouth and user generated content
Surveys conducted both in Europe and in the USA show that word of mouth is
one of the most commonly used sources of information to decide whether to
take part in an exhibition or not (by exhibitors and visitors), both for B2B and
B2C exhibitions
The exhibition industry has been affected by the development of communicati-
on models based on the new role of the consumer. The changes are driven by:
? Low interest for traditional mass media
? Increased consumption awareness
? Need for personalization and customization (e.g. iPod, Myspace,
Youtube, …)
? Development of new technologies related media (internet, blogs, virtual
communities, e-newsletter)
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IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
New Media - Viral Marketing
Viral marketing is the rapid, uncontrolled transfer of messages between indivi-
duals and existing networks of relationships: the message is conveyed by word
of mouth or the online media, such as blogs, chats and websites and is based
on the existence of a reference community to which all the interlocutors be-
long.
Advantages:
? ease of executing the marketing campaign
? relative low-cost (compared to direct mail)
? good targeting
? high and rapid response rate.
Viral marketing is new as regards the methods of presentation, but is has an-
cient origins. Fairs themselves are viral communication tools:
? based on communities comprising manufacturing companies and purch-
asing companies in a particular sector,
? have always encouraged interaction and the exchange of information
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Integrated Marketing Communications (IMC) is ?a planning process designed
to assure that all brand contacts received by a customer or prospect for a prod-
uct, service, or organization are relevant to that person and consistent over
time.? (Marketing Power Dictionary)
Integrated Marketing Communications is a term used to describe a holistic
approach to marketing. It aims to ensure consistency of message and the
complementary use of media. The concept includes online and offline
marketing channels.
Online marketing channels include any e-marketing campaigns or programs,
from search engine optimization, pay-per-click, affiliate, e-mail, banner to latest
web related channels for webinar, blog, podcast, and Internet TV.
Offline marketing channels are traditional print (newspaper, magazine), mail
order, public relations, industry relations, billboard, radio, and television.
A company develops its integrated marketing communication programme us-
ing all the elements of the marketing mix (price, place, product, and promo-
tion).
The participation in trade shows is often used as an opportunity to promote
new products and services or to announce the company‘s new marketing strat-
egy. As exhibitions are only one of several promotion tools – sometimes the
main communication tool – it is important to use all instruments well coordinat-
ed in content, design and time. This way of integration should also be used for
the announcement of the trade show participation itself.
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
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Trade shows are useful for many company strategies: e.g. launching new pro-
ducts, opening new markets, improving customer relationships. Each potential
exhibitor has to select the right show for each purpose. Therefore he should use
as many information sources as possible. The better the information concerning
a show's quantity and quality, the better the chance for a successful participati-
on. Based on this information the exhibition manager has to define criteria and
objectives for the company‘s trade fair participation.
The following criteria are relevant:
1. Types of trade fairs available for the product segment
2. Relevance of the trade fair for the market
3. Client target group
4. Competition
5. Costs
6. Quality of the trade fair organizer
7. Basic conditions
V. Trade Fair Participation
A. Selection Criteria
Slide 93
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1. Types of trade fairs
- National or international exhibitions - Consumer show or trade show
In order to use trade fairs efficiently as part of the marketing mix, it is necessary
to be selective. The type of exhibition - national or international, consumer or
trade show - will be a first criterion to decide if the company's marketing strategy
and objectives can be achieved.
• If the company‘s catchment area is nationally orientated the exhibition manage-
ment should select exhibitions in which national exhibitors take part and where
mostly domestic visitors are expected.
If the company exports its products and services to foreign countries the partici-
pation in international exhibitions either of the home country or of the selected
country is recommendable. The more visitors of the foreign country are expected
to come the better the decision for the respective exhibition.
• The decision either to participate in a trade show or in a consumer show is an-
other criterion which has to be considered when selecting the right exhibition.
Consumer shows are primarily for direct selling. If the direct target groups are
primarily consumers the appearance at a consumer show is preferable.
The B2B business takes place at trade shows. As investment decisions are as a
rule middle or long term orientated the participation in trade shows for manufac-
turing goods serves to develop relations with customers and clients. The final
purchasing decisions are often made after the event (e.g. IT shows, building ma-
chinery).
Trade shows for consumer goods work differently. The visitors are retail shops or
comparable enterprises which make their purchasing decisions at the respective
show (e.g. gifts, food, bike shows).
V. Trade Fair Participation
A. Selection Criteria
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2. Relevance of the trade fair for the market:
The importance of a trade fair can be determined by different indicators:
- Presence of the market
- Recurrence of the trade fair
- Themes
- Quality of supply and demand at the trade fair
- Completeness of the permitted market segments
- Catchment area
? The presence of the market can be measured by the number and quality (i.e.
market leader) of companies representing the supply and demand of the
market segment.
? Exhibitions take place on a regular basis:
once, twice or more often during a year, every two, three years or even in
longer periods. Depending on the marketing strategy and event schedule
the right exhibitions should be selected.
? The subjects and the nomenclature of the exhibitions is of importance for
the decision to participate or not.
? The quality of supply and demand is represented by the presence of high
ranking managers and visitors. Information is available from the organizers.
? The catchment area can be regional, national or international, i.e. the visitors
are expected to come from these areas. Depending on the exhibiting com-
panies‘ targets, this criterion is of importance for the final participation
decision.
V. Trade Fair Participation
A. Selection Criteria
Slide 95
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3. Client target group
Exhibitors are looking for trade shows at which they can find the right visitors,
i.e. potential buyers for today‘s or future purchases. Therefore the exhibitor will
have to check the visitors of the exhibition following the criteria:
- Regional origin
- Branch
- Size of the company
- Area of operations
? A trade fair is an excellent opportunity to get in direct contact with the rele-
vant target groups. It can be more efficient than the company‘s field service.
? Therefore, the company should know whom they want to address at the fair.
The design of the trade fair participation should be created according to the
target groups.
? These can be defined based on the following aspects:
Regional origin, branch and size of the client company, the area of client op-
erations, frequency of client purchasing, and purchasing power.
V. Trade Fair Participation
A. Selection Criteria
Are Trade shows still important?
If done successfully, exhibiting at trade shows can still be a powerful way of
getting products and services in front of potential buyers in the UK and
Ireland. There are for example over 500 trade shows each year in the UK and
Ireland, and each have the potential to generate significant business in the
market. Trade shows, done well, can deliver a number of benefits:
? lead generation – buyers, distributors, agents
? market intelligence – competitor insights, market trends, innovation pre-
views
? PR exposure - media, speaking opportunities, in-show awards
? service providers – industry associations, logistics partners, marketing
http://www.austrade.gov.au/ArticleDocuments/2095/Trade-fairs-in-the-UK-and-Ireland.pdf.aspx
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4. Competition
?Wanted or unwanted?
Sometimes competition is welcome, sometimes an exhibitor avoids com-
petitors.
Following the rules of a market oriented system it is advantageous to be
present where your competitors are. However, sometimes it is desirable to
avoid direct contacts with competitors (e.g. looking for a test
market, in case of obvious competitive disadvantages).
5. Costs
Despite all the advantages of trade shows, the budget must be sufficient to
cover the participation. The exhibitor calculates a budget based on the ex-
pected costs.
There are a lot of cost types which have to be considered: e.g. stand rental,
stand design, booth provision, personnel, travel and marketing. If the budget is
sufficient the participation can be realized. If the exhibitor recognizes that the
available budget is smaller than necessary the participation has to be reconsid-
ered or cancelled.
The basic question is: Can we afford the trade fair participation?
The budget is calculated based on the expected costs and must be defined
before the trade fair participation is contracted. If the budget is sufficient the
participation can be realized; if not, the budget or type of participation must be
adapted.
V. Trade Fair Participation
A. Selection Criteria
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6. Quality of the trade fair organizer
The following criteria should be considered:
? Experience and know-how
? Marketing strategy
? Exhibition venue and accessibility
The management quality of the trade fair organizer can also influence the deci-
sion to participate. The quality of the equipment of the site, such as space, de-
sign, type of halls, open air grounds and the quality of the facilities have to be
acceptable. The experience of the organizer supports the quality of the exposi-
tion. Transport connections and infrastructure may also influence the participa-
tion decision. Is the venue centrally located (geographically); is there sufficient
accommodation available?
EXAMPLE: Experience and Know-how
Montgomery, London
Internationally recognised as a leading pioneer of B2B exhibitions, Montgom-
ery focuses on building relationships with partners and delivering specialist
buyers and sellers face to face. Montgomery‘s long established history dates
back over 100 years and all started with the Building Exhibition in 1895.
http://www.montex.co.uk/client/index.aspx?page=1
V. Trade Fair Participation
A. Selection Criteria
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Exhibition venue and accessibility
Hong Kong Convention & Exhibition Centre
Hong Kong is the business hub of Asia, and the Centre is at the business
hub of Hong Kong - bustling Wanchai district.
Overlooking famed Victoria Harbour, the Centre is conveniently linked by cov-
ered walkways to adjacent luxury hotels, including the Grand Hyatt Hong
Kong and the Renaissance Harbour View Hotel. Also close are the MTR -
Hong Kong's modern subway system - the airport bus, city buses and ferries,
banking, the main post office, and all the shopping and entertainment that
Hong Kong is famous for.
http://www.hkcec.com.hk/english/introduction/intro_location.php
V. Trade Fair Participation
A. Selection Criteria
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Exhibition venue and accessibility
Messe Stuttgart, Germany
Messe Stuttgart is an exhibition centre and trade fair next to Stuttgart Airport, 7 miles
south of Stuttgart, Germany. The new exhibition grounds, which were completed in
2007, are right next to the A8 autobahn (motorway). The centre can be accessed via the
local suburban railway network. Stuttgart exhibition centre encompasses seven standard
halls measuring 10,500m² and a high hall with a net display area of 26,800m² which is
also designed to cater for sports events and concerts. The exhibition centre also in-
cludes a communication and events centre, the Internationale Congresscenter or ICS,
which includes a congress hall (4900m²), a congress room (2600m²) and conferencing
facilities encompassing 25 meeting rooms. Thanks to its location between the airport
and motor-
way, the
new Trade
Fair Centre
has an in-
comparable
traffic infra-
structure.
Direct con-
nections to
the A8 mo-
torway, the
B27 trunk
road, the
airport, the S
-Bahn (rapid-transit railway) and, in future, the planned railway station for local and long-
distance trains will ensure that visitors and exhibitors will be able to travel quickly and
easily to the Trade Fair Centre.
http://www.messe-stuttgart.de
V. Trade Fair Participation
A. Selection Criteria
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REMARKS
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7. Further conditions
? Date
? Availability of personnel
? Situation and participation objectives fit in with the theme of the trade fair
? Representative range of goods on offer
Depending on the market segment, purchasing periods should be taken into
consideration. The date of the show has to fit this specification. Because of the
internal workloads, sometimes the best booth personnel is not available. In this
case the participation should be reconsidered.
It sounds astonishing; if a company exhibits new products the customer
expects the products to be available within a particular time after the closing of
the trade show.
1
V. Trade Fair Participation
A. Selection Criteria
Trade Fair Benefit Check
An increasing number of exhibitors want to calculate the cost-benefit ratio of
their trade fair participations more precisely. However, because small and
medium-sized companies, in particular, frequently do not formulate any exact
trade fair objectives, the benefits of participations are often not determined
on a wide enough scale; the focus is thus primarily on the costs. As a result,
some companies believe that trade fair participations have an unfavourable
cost-benefit ratio.
http://www.auma.de/mnc/e/mnc-e.html
1
http://www.auma.de
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REMARKS
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Scoring procedure:
The scoring model shows a hypothetical example for choosing the right trade
fair. First of all the criteria need to be selected which are decisive for the quality
of an event from the view point of an exhibitor. Some of the most important cri-
teria are already suggested. Further criteria can be included.
? Weighing of the selection criteria. Every criterion gets a weighting corre-
sponding to the individual significance for the quality of the event.
? The trade fairs are assessed with a score between 1 and 10 per criterion. This
score shows how the quality is estimated by the exhibitor per criterion and
trade fair in relation to the competing fairs.
? Weighting and score are multiplied by each other to calculate the score
per fair and criterion.
? The scores are added up for the total assessment. The higher the achieved
total assessment, the better the assessment of the respective fair is from the
viewpoint of the targets and quality requirements of the exhibitor.
Example:
? In the attached case four fairs were judged at four different sites. The choice
and assessment has to be understood as an example.
? The trade fair in Valencia has reached the highest total score with 698 for the
hypothetic exhibitor. The other trade fairs are following.
V. Trade Fair Participation
A. Selection Criteria
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Alternatives
Appropriate trade fair
Verona, Italy
MARMOMACC
Valencia,
Spain,
MARMOL
Nuremberg
Stone+tec
Brussels, Bel-
gium,
Batibouw
Weight
w
Poi
nts
p
Product
w x p
Points
p
Product
w x p
Points
p
Product
w x p
Points
p
Product
w x p
Criteria i
Target group
28 5 140 7 196 4 112 4 112
Significance
of trade
show for
market
21 6 126 8 168 4 84 4 84
Quota of
trade
19 7 133 6 114 5 95 3 57
Booth costs
11 6 66 8 88 4 44 2 22
Catchment
area of trade
fair
15 7 105 6 90 5 75 4 60
Recurrence
(of the trade
fair)
6 5 30 7 42 7 42 7 42
Total 100 600 698 452 377
V. Trade Fair Participation
A. Selection Criteria
A (weighted) scoring model is a selection technique which is used to choose
between projects or decision alternatives. This method helps in cases where
there is no simple, single criterion to work with and a number of factors
need to be considered.
The following scoring model is based on the attached case study II. The
Russian company Kovcheg intends to participate in a European trade show.
Four shows have been pre-selected. The evaluation process results in the
selection of the favorite trade show in Valencia.
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Once a decision to participate has been made, the exhibition strategy, the exhibi-
tion style and exhibition targets have to be determined. Exhibition strategy and
style complement each other. It has proved to be helpful to follow these plan-
ning steps as the exhibition styles make it easier to decide which booth design
and which communication tools to choose for the participation.
Exhibition (marketing) strategies
6
? Within the marketing strategy it is decided which products will be offered to
which markets. The company can either present new or already known prod-
ucts. It might choose the present markets as relevant for the market offer or
new markets which are not yet opened for the company's assessment.
? If you combine the potential markets (new or known) with the type of prod-
ucts (new or known) four market processing strategies can be distinguished.
Exhibition style
7
? The concept of the exhibition style provides a guideline from which the design
elements of a booth can be chosen, and the marketing instruments can be
selected and finally applied.
? An exhibition style supports the decision making process in the run-up to the
exhibition. The management has to choose which communication instru-
ments (i.e. press conference, brochure, direct mailing, special event, banners,
advertisement) to use. The exhibition style delivers the criteria for the final de-
cision.
V. Trade Fair Participation
B. Exhibition Strategies and Styles
6
Cf. Ansoff, Harry Igor, Corporate Strategy, revised edition, Penguin, London , 1987.
7
Cf.Beier, Joerg, The Design Demands of Trade-Fair Architecture versus Commercial Calculation, in:
Schulte, Karin (ed.), Temporay Buildings, Stuttgart 1997, p. 227
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Market penetration
Customer oriented exhibition style.
Penetration of the market means that the exhibitor tries to boost sales with the
help of established products. To this end, old consumers must be motivated to
generate higher sales, while new consumers must be convinced for first time
purchases. As the application of the products is widely known, attention should
be drawn to customer care and relations. In this case, a strong customer-
oriented exhibition style is beneficial. Discussion areas where the personnel can
talk to the customers are necessary. Advertising in the catalogue, on site maps,
in professional journals as well as events at the booth (e.g. customer evenings)
are important marketing techniques.
Products /
Markets
Present products New products
Present
markets
Market penetration
Customer oriented
exhibition style
Product
development
Product oriented
exhibition style
New
markets
Market
development
Contact oriented
exhibition style
Diversification
Advisory oriented
exhibition style
V. Trade Fair Participation
B. Exhibition Strategies and Styles
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REMARKS
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Product development
Product oriented exhibition style.
The product development strategy emphasizes the selling of new products to
acquired customers. The product has to be presented with its application possi-
bilities. This leads to a product-oriented exhibition style. Besides sales promotion
(samples, coupons and giveaways), special shows of the organizer, special
events at the exhibition hall, and direct mailing are strong marketing techniques,
which help to give the product special emphasis.
While planning the booth concept, it is important to make sure that the person-
nel have enough space for product display and usage.
Market development
Contact oriented exhibition style
If the strategy is to open new markets, the exhibitor has to gain new customers
for its products. Product, company, and brand have to be introduced at the same
time. This means that the exhibitor has to make sure that his trade fair presenta-
tion is comprehensive as well as catchy. New contacts and open communication
have to be given special emphasis.
Therefore, a contact-oriented exhibition style should be preferred. The booth
should be created in an open style, in order to invite customers to the booth. The
simultaneous promotions - advertising of the exhibitor (e.g. hand-outs), an-
nouncement advertising (in trade fair journals or daily newspapers), and outdoor
advertising (such as transportation or advertising-banners), along with sales pro-
motion (price competition, lottery, giveaways) are important steps to reach the
target groups.
V. Trade Fair Participation
B. Exhibition Strategies and Styles
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Diversification
Advisory oriented exhibition style.
The exhibitor‘s task becomes much more difficult if he diversifies his sales ac-
tivities. In this case, he cannot fall back on his experience either with known or
established markets. Beyond this, he is looking for new customers.
Application possibilities and advantages of the product should be presented
and problem awareness should be created. To achieve this, intensive consulta-
tion and contacts with experts are necessary.
Therefore an advisory oriented exhibition style should be used. For consultan-
cy it is important to have a quiet seating area. At the same time the presenta-
tion of products and brand has to be possible. One option is to divide the
booth into two floors.
V. Trade Fair Participation
B. Exhibition Strategies and Styles
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Why set targets for the participation in trade shows?
One important step in the participation concept is the definition of exhibition
targets, since efficient participation in a trade fair is only possible on the basis
of sound goals.
The organizational preparation is influenced by the set goals. After the show
they offer the possibility to check the success of the participation.
The content of exhibition targets has to be determined. This includes the defi-
nition of the target groups and the determination of the time in which the
goals should be realised.
V. Trade Fair Participation
C. Exhibition Targets
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REMARKS
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The diagram shows the results of an empirical market research.
8
? In this questionnaire, exhibitors have declared that they set the following tar-
gets when they participate in exhibitions.
? ?To increase company image? was declared to be the most important goal for
more than 80% of the exhibitors.
? 70% of the sample emphasized „meeting new groups of customers?
and ?developing personal contacts?.
V. Trade Fair Participation
C. Exhibition Targets
8
Cf. Ausstellungs-und Messeausschuss der deutschen Wirtschaft e.V. (AUMA), Erfolgreiche
Messebeteiligung, Berlin 2002.
See also: Gopalakrishna Srinath and Jerome D. Williams. 1992. "Planning and Performance Assessment of
Industrial Trade Shows: An Exploratory Study." International Journal of Research in Marketing 9: p. 207-224.
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Targets must be operational.
This means:
9
? Measurable
? Related to a specific period
? Assigned to a responsible person or group
? Realistic
? Acceptable
Do you think that the people who have to work for the targets will accept
contents and extension of the target?
? Motivating
Are you motivated by your targets or are they a burden for you?
Economic targets / Psychographic targets
? There are different ways to determine objectives. Besides dividing aims
following the marketing mix, it is also possible to divide into economic and
psychographic goals.
? The success of economic goals is relatively easy to measure, because it is
focused on measurable data, such as the turnover, cost-reduction, expand-
ing the market share and other criteria.
? The psychographic targets mainly try to influence the attitude of the visitors.
This is important if a company tries to improve its image or wants to influ-
ence the visitor‘s view of the company. This success is invisible and there-
fore hardly measurable as it happens in the so-called black box.
V. Trade Fair Participation
C. Exhibition Targets
9
Cf. Meffert, Heribert, Ziel- und Nutzenorientierung als Postulat einer effizienten Messebeteiligung, in:
Manfred Kirchgeorg et al., Handbuch Messemanagement, Wiesbaden 2003, p. 1145-1161.
See also Cavanaugh, Suzette. 1976. "Setting Objectives and Evaluating the Effectiveness of Trade Show
Exhibits." Journal of Marketing 40: 100-103. Sharland, Alex and Peter Balogh. 1996. "The Value of Nonselling
Activities at International Trade Shows." Industrial Marketing Management 25: 59-66.
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Criteria
Contents
and Measurement
To boost sales
Number of orders
To expand sales
Total orders for goods:
with different target groups
To increase the degree of
distribution
Number of specialists
and private visitors
To aquire new market segments /
Customer groupings
Number of new customer contacts
(e.g. according to regions, sectors of
industry, sales routes)
To expand or retain the share of the
market
Sales compared to previous trade fair
To acquaint visitors with the range of
products
Number of visitors, number of old /
new customer contacts; number and
quality of initiated press publications;
number of brochures and samples
distributed.
To create / improve brand loyalty,
product awareness
Specific questioning of visitors
- Company; how well known
- Memorability of new products
- Knowledge of the brand
- Characteristics of the product
There is a rule: setting targets needs a control and the auditing of these targets.
On the left side of the following chart you find different types of targets. On the
right side the contents and measurement of these targets are described in
more detail.
How to read: if there is a general target ?to boost sales? the operational target
could be determined as: ?To raise the number of orders at the trade show from
250 to 300 orders compared to the previous show?. Auditing in this case means
just counting the orders at the end of the trade show and comparing them with
the figures from the last show.
V. Trade Fair Participation
C. Exhibition Targets
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To give an example for operational targets the following economic and psycho-
graphic targets are determined. If the Russian exhibitor (see chapter V. A
"Selection Criteria") has already participated in the trade show Marmol in Valen-
cia, the new targets could be determined as follows:
Economic targets
? To increase the number of visitors from 250 to 320 at the trade show Mar-
mol; responsible: Trade Show Department.
? To increase the number of orders from American customers (last year: 25
following year: 40); responsible: Marketing Department.
? To increase the sales of additional services by 15%; responsible: Field Ser-
vice.
? Reduction of trade show costs by 5% compared to last year‘s trade show:
responsible: Exhibition Team
Psychographic targets
? To improve the number of positive media publications by 15% from 35 to 40;
responsible: Public Relations Team
? Increase of visitors‘ share who recognize the company‘s brand four weeks
after the show; today 25%, target 35%; responsible: Marketing Department,
Marketing Agency, Market Research Team.
V. Trade Fair Participation
C. Exhibition Targets
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Objectives for trade shows: Consumer and manufactured goods
The individual participation objectives depend on the different types of trade
fairs, such as consumer goods fairs or investment (manufactured) goods fairs.
The main goal at a trade show for consumer goods is the placing of orders. The
trade visitors order goods for the following season. They do not need an authori-
zation for their purchasing decision and can negotiate the sale at the fair. It is
therefore easier to monitor and measure the success attained.
At trade fairs for investment goods, immediate orders are comparatively unim-
portant. The negotiation-process takes much more time because technical issues
must be resolved. There is a greater financial investment and a multilevel authori-
sation in the buying decision. Sometimes the investment decisions are made a
long time after the trade fair closed. The order can‘t be assigned directly to the
event. A difficulty at trade fairs for investment goods is that the success is not
properly measurable, because the focus is on image building, increasing publici-
ty, imparting information and consultancy.
V. Trade Fair Participation
C. Exhibition Targets
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The significant difference between a stand and the usual possibilities of visualiza-
tion is the enhancement from the second to the third dimension,
which also means an extension to possible presentation.
10
The booth concept is relevant for the right communication and budget policy of
the exhibitor. It also influences the exhibitors‘ logistics to get the exhibits and
material at the right time, to the right place, at the lowest costs. On the following
pages several criteria are discussed which have to be considered for the booth
assembly.
? Criterion 1: Booth types
The booth is a three-dimensional marketing tool. It represents the company
and is sensory. Customers and visitors compare the booth with that of com-
petitors at the trade show.
? Criterion 2: Alternatives of booth design
Several factors have to be considered to determine which kind of booth
should be presented at a trade fair. One of the key factors for the right presen-
tation of the enterprise is the booth design.
? Criterion 3: Booth planning and realization
The decision concerns marketing and cost aspects.
If the exhibitor plans to reuse the booth he has to decide which booth type
will be his best alternative.
? Criterion 4: Booth areas and functions
The booth consists of different areas with different functions. Corresponding
to the exhibition style, the management has to decide how the use the space:
for presentation, for consulting or for easy and frequent contacts.
V. Trade Fair Participation
D. Stand Impact
10
Cf. Schulte, Karin (ed.), Temporay Buildings: The Trade Fair Stand as a Conceptual Challenge,
Stuttgart 2000.
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Criterion 1: Booth Types
The various types of trade fair booths are
influenced by the type of space allocation
and access to the aisles.
There are four basic types of booths.
? Row booth (R)
? Corner booth (C)
? End booth (E)
? Block booth or island booth (B)
Row booth (R)
The standard row booth is designed to stand back-to-back with an opposite
row or a wall and will have adjacent booths on both sides. Only one side
(occasionally two) faces an aisle. The dimension of the open booth front is
used to distinguish a narrow, deep booth from a wide stand which is less
deep.
Corner booth (C)
A corner booth is situated at the end of a row. It provides access from two
sides, from the aisle along the row and from the one vertical to it. A corner
booth has more sides accessible to the public, but the same overall area,
and is therefore more effective than a booth located in a row. As a corner
booth can be seen from two aisles, a higher number of visitors can be ex-
pected.
V. Trade Fair Participation
D. Stand Impact
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End booth (E)
This booth at the end of a row is surrounded on three sides by aisles. It is quali-
tatively superior to the types mentioned before, as it appears more inviting and
more representative if exploited properly.
Block booth or island booth (B)
The block booth or island booth is bordered on all four sides by aisles. Since it
is accessible to visitors from all sides, it attracts a great deal of attention due to
the fact that it is completely independent from other booths.
The block booth or island booth is the most expensive type of booth. It requires
more elaborate design, which is reflected in the higher costs for booth assem-
bly and fitting.
V. Trade Fair Participation
D. Stand Impact
To reach these goals the following decisions have to be made:
? Does the company assemble the booth itself or engage
a booth construction company?
? Is the use of a system or a conventional booth convenient?
? What kind of basic design shall be used for the booth assembly?
Criterion 2: Alternatives of booth design
The booth appearance at a trade fair is a marketing challenge. The booth should
be more attractive than those of competitors. Visitors should remember the
booth, exhibits and the company‘s brand.
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V. Trade Fair Participation
D. Stand Impact
Slide 132/133
Innovative concept in stand building: examples
Designed by AAAHHHAAA with Luca Sacchi
Designed by Plotini Allestimenti for IGUZZINI
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Booth assembly
There are different ways to assemble the booth:
? The company itself is responsible for the whole design and the assembly.
In this case personnel with the appropriate know-how has to be available.
Additionally stand building material has to be ready for use.
? The exhibitor might instruct a booth building company to create the booth.
In this case the exhibiting company is responsible for the right briefing – the
guideline for the construction and the trade show appearance. The costs will
be much higher compared to an independent booth construction.
However, the service provider has know-how and special expertise concern-
ing the location and the trade show organizer.
? Some organizers offer turnkey booths which are simple system stands.
They are assembled and disassembled without the presence of the exhibitor.
This is a relatively cheap and easy solution, especially for newcomers.
Advantages for the exhibitor: No responsibility for assembly and dis-
assembly of the booth, less and clear planning costs.
Disadvantages: Limited opportunity to present the company individually.
V. Trade Fair Participation
D. Stand Impact
Slide 129
Booth assembly
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System or conventional booth
The decision to apply a system booth or a conventional design should be based
on several criteria:
? A reusable booth assembly is more cost-effective than a conventional one.
? The substantial advantages of a system assembly are: easy to transport and
store; low staff requirements during assembly and disassembly; sensibly
priced, pre-fabricated, precisely fitting components; flexibility and adaptability
? Disadvantages are: less distinction from other exhibitors;
dependency on the limited application of the system.
? Conventional or individual booth assembly is especially attractive for compa-
nies involved in construction or interior work. They have extensive knowledge
of materials and fabrication, and they have the necessary production facilities
and qualified staff.
? Conventional assembly enables highly individual designs to be realized. How-
ever, individual designs are only available at relatively high costs.
V. Trade Fair Participation
D. Stand Impact
Design principles
There are three methods of booth assembly:
? Open assembly:
No external screens that might obstruct the view. The booth is visible at first
glance. All exhibits can be identified straight away.
? Partially open assembly:
External screens are included to prevent visitors from seeing directly
into the booth.
? Closed assembly:
The booth consists of external screens (possibly with windows), making it
necessary to enter the booth in order to view the exhibits, watch demonstra-
tions and talk to the stand staff.
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Criterion 3: Booth planning and realization
The booth planning and realization stage includes several aspects:
3.1 Financial decisions
The participation in a trade fair is cost-intensive. There are three possibilities to
invest in a booth: Buying, renting or leasing.
All alternatives have to be known and compared to find the most cost-effective
solution.
The right alternative: buying, renting or leasing should be chosen according to
the individual situation of the exhibitor:
? When you buy a booth, you should consider that you have to make full use of
the booth, storage and maintenance are the company‘s responsibility.
The main advantages of buying a booth are:
? The booth can be designed more individually
? You have financial middle and long term advantages if you use the
booth often
? Renting a stand means paying for one use. In general a trade fair organizer or
a booth constructing company takes the booth back. The advantages are:
? No investment and long term binding of capital
? Short term reduction of costs
? No handling costs of the stand: logistics, storing, construction and dis-
mantling of the booth
? Leasing means a special type of finance. If the booth will be used often and
the company does not want or is not able to finance the booth in one go this
alternative is very attractive. The stand building company accepts leasing pay-
ment and will care for the booth between the different trade shows.
The main advantages are:
? More flexibility if the market situation changes
? Conservation of liquidity
? Tax advantages
? Certain calculation
V. Trade Fair Participation
D. Stand Impact
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3.2 Activities and time schedule
Trade fairs start at a fixed date. Therefore the preparation and realization of the
participation has to be carefully planned. The following plan is typical for a re-
gular participation process:
The planning procedure starts at least 9-6 months before the trade fair takes
place. The following activities should be determined by contents and time:
? Register with organizer (9 months before)
? Briefing and rough stand design (8 months)
? Planning assembly and disassembly (7 months)
? Construction of booth (6 to 2 months)
? Preparing furniture, equipment and exhibits (6 to 1 months)
? Compiling material (3 to 1 months)
? Transport of material (4 to 3 weeks)
? Assembly of booth (2 to 1 weeks)
? Handing over of booth (day before trade fair)
? Disassembly of booth
? Transportation to company
? Repair and storage
Sample Chart visualizing the planning procedure
V. Trade Fair Participation
D. Stand Impact
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Criterion 4: Booth areas and functions
Each booth consists of four areas with different functions. The principles
are described on the next pages:
V. Trade Fair Participation
D. Stand Impact
Budget Check
Deviation analysis
Calculation of coefficients
Eyecatcher
Information
Exhibits
Personnel
Counters
Seatings
Kitchen
Storage
Recreation
Area of logistics
Area of consultation
Area of presentation
Area of orientation
Corner Stand
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Area of orientation
- To gain attention, eye-catchers are used in this area;
- Towers may be used as fixed and freestanding components for identification,
e.g. by presenting the company logo.
Area of presentation
- The advantages of the product should be shown in this area;
- Products are presented by the booth personnel;
- First interaction between staff and visitor;
- The opportunity to get brief information or samples is expected by visitors.
Area of consultation
- Quiet and separated place, removed from the usual trade bustle;
- Negotiations and talks can be carried out without unnecessary disturbance;
- Ideal are cabin lounges with conference fitting;
- On average, visitors only remain 11.8 minutes at a booth, therefore this time
should be used productively.
Area of logistics
- Not used by visitors, purely functional design;
- Storage rooms, small back offices, kitchen, recreation and catering area;
- Size of this area depends on the stand size, smaller stands sometimes do not
have this area at all;
- At a larger stand the importance of the logistic area grows as these booths
can be compared to headquarters where many duties have to be coordinated.
V. Trade Fair Participation
D. Stand Impact
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The assessment of a company‘s activities is an integrated part of an effi-
cient management process.
11
At long last, after the closing of the fair, it
determines whether the fair participation was a success or not. To be suc-
cessful, however, the personnel has to work actively also during the time
after the fair.
Visitor records have been prepared, contacts have been made and many
new ideas have been collected. Now the exhibitor has to rework
these materials and contacts.
V. Trade Fair Participation
E. Follow-up Measures
The reworking
12
after a trade fair participation is the first step in the whole man-
aging process after the trade show. Three different tasks have to be focussed
on:
? The visitors at the fair have expressed special wishes which have to be im-
mediately fulfilled. This requires careful organization and planning.
? Why not publish the details and the success of the fair? The clients of the
company who haven‘t been at the trade show, want to know what has been
going on during the big event.
? The staff which had to stay at home needs to be informed about the results
of the show. This will motivate them for the future.
Reworking
Follow-up measures
Reworking of visitor contacts
External communication
Internal communication
11
Cf. Rosson, Philip, J. and F.H.Rolf Seringhaus. 1995. "Visitor and Exhibitor Interaction at Industrial
Trade Fairs." Journal of Business Research 32: 81-90.
12
Cf. Stevens, Ruth, Trade Show & Event Marketing: Plan, Pomote & Pofit, South-Western Educational
Publishing, 2005. See also: Christman, Christine, The Complete Handbook of Profitable Trade Show
Exhibiting, Prentice Hall Trade, 1991.
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The visitor records which have
been written during the trade
show contain numerous details
about the customers. This infor-
mation is the starting point of
the reworking process.
? The visitors we have to contact now can be: regular customers; Very Im-
portant Persons (VIPs; e.g. politicians, other representatives); media rep-
resentatives; other visitors (e.g. representatives from universities, associa-
tions).
The activities after the show can be:
? Sending information material;
? Preparing a tender;
? Appointment with sales staff;
? Invitation to enterprise;
V. Trade Fair Participation
E. Follow-up Measures
Reworking
Follow-up measures
Reworking of visitor contacts
Visitor groups
Activities
Specialities
There are some special aspects the exhibitor should keep in mind:
? The customer‘s requirements should be met as soon as possible. This could
for example mean that the exhibitor already starts reworking the trade show
although the trade show has not yet finished. The marketing department
sends information brochures. The sales department makes appointments
and prepares offers for the customers of the trade show. To react short
term on the customers‘ needs the staff at home has to be prepared careful-
ly. The communication process and the responsibility for the customer
contacts have to be determined in advance.
? The process of customer care has to be continued after the show. One de-
partment, or even better, one person should be responsible for further
contacts.
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The successful appearance at a trade show is a very useful opportunity
for public relations.
If there is a successful completion of a contract during or after the trade show
this is very often published and announced with a press release. The exhibiting
company is able to show its importance, to demonstrate the quality of its prod-
ucts and to demonstrate its acceptance by the customers.
Not all customers have visited the trade show. It will improve the relationship
with those non-visiting clients if they are informed about the importance and
success of the trade show. Direct mailings, but also specially prepared bro-
chures might help to develop a unique selling proposition (USP). Customer
newsletters are excellent ways to inform the clients about the importance of
the trade show. Well-informed and prepared sales staff could support these
initiatives during personal contacts.
V. Trade Fair Participation
E. Follow-up Measures
Reworking
Follow-up measures
Reworking of visitor contacts
External Communication
Public relations
Customer contacts
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One of the most important, but sometimes neglected activities, after the trade
show is to inform the staff which remained at the headquarters. As trade
shows are sometimes milestones for a market segment, all staff should be in-
formed about what is going on in the market, who new and old competitors
are, how customers assess their own products and services etc.
Reports have to be prepared to inform the different departments:
procurement, research & development, sales, management, production.
The instruments which can be used are:
? Newsletters
? Personal meetings
? E-mail reports
? Staff newspapers
? Direct mailings
? Company meetings
? Website of the company
V. Trade Fair Participation
E. Follow-up Measures
Reworking
Follow-up measures
Reworking of visitor contacts
External Communication
Internal Communication
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Trade shows combine opportunities and risks. The opportunities are meet-
ing new clients, developing a better company image and placing orders.
However, there are general business risks such as fewer contacts and con-
tracts; low turnover and a low contribution margin. These risks can be min-
imized if the planning and preparation of the participation is done correct-
ly.
13
Other external factors or incidents might influence the trade fair partic-
ipation as well:
Political Risk
? Revolutions and hostile interventions by the government;
? Unforeseen loss of a licence;
? War risk.
For example:
? Political demonstration closing Suvarnabhumi: In December 2008 the
Bangkok airport was closed and controlled by the PAD. The government
declared a state of emergency at the two airports in BKK.
14
? UBM India, a part of United Business Media had cancelled the CPhI/
ICSE/P-MEC India 2008 trade exhibition due to terror attacks in Mumbai.
The exhibition was postponed to De-
cember 2009 at the Bombay Exhibition
Centre, Mumbai
Medical Risk
? For example, infection risk by SARS,
swine influenza, bird flu
For example:
? Hong Kong Trade Development Coun-
cil and China External Trade Develop-
ment Council were forced to cancel four important industrial mega-
shows in Hong Kong and Taiwan
? Swine flu concerns have forced
Royal Adelaide Show organizers to
cancel pig exhibits in August 2009,
but pig diving will go on.
15
„Travelling with Swine Flu?
http://www.flickr.com/photos/diegocupolo
V. Trade Fair Participation
F. Risk Management
13
Cf. Tarlow, P. Event Risk Management and Savety, New York 2002.
14
http://www.ufi.org/media/pdf/seminars_presentations/porto2009/2009-ess-porto_supawan_teerarat.pdf
15
ABC Local: Tim Gerritsen
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Definition of risks
? A business risk is the danger of suffering losses. The risk height is defined
by the possible extent of the losses.
? A risk is the danger that the planned objectives can‘t be met sufficiently.
? Risks are components of every project. The underlying incidents first must
be identified to prevent the risks from endangering the success of the pro-
ject. Corresponding countermeasures are defined accordingly.
? A project risk can be qualified with regard to its loss probability, its conse-
quences and the damage caused by it.
16
Risk management
? Risk management is the systematic process of managing an organization‘s
risk exposures to achieve its objectives in a manner consistent with public
interest, human safety, environmental factors and the law.
? It consists of the planning, organizing, leading, coordinating and controlling
the activities undertaken with the intent of providing an efficient pre-loss
plan that minimizes the adverse impact of risk on the organization‘s re-
sources, earnings and cash flow.
16
Risk strategies
? Risk strategies have to be proactive to avoid risks occurring or causing
severe damages. The different risk strategies emphasize reducing the
impact, the probability, or both.
? After a process of identifying and assessing the company‘s risks, ways od
coping with the risks have to be developed. This procedure absorbs time
and costs. There are five principle strategies to manage the identified risks:
? Risk acceptance
? Risk avoidance (e.g. cancelation of activities)
? Monitoring the risk, contingency plans
? Risk reduction (e.g. setting up special emergency plans)
? Risk transfer (e.g. assurance)
V. Trade Fair Participation
F. Risk Management
16
James Carven, University of Texas
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VI . Evaluation of Participation
A. Importance of Evaluation
The assessment of the company‘s activities is an integrated part of an efficient
management process. At long last it is determined after the closing of the fair
whether the fair participation was a success or not. To be successful, however,
the personnel also has to work actively during the time after the fair.
1
As we have learned in former chapters, trade show objectives are important
preconditions to carrying out successful trade show participations. After the
show, the aims have to be audited and analyzed to determine to which degree
they have been fulfilled.
The planned budget has to be verified as well. Deviations have to be identified
and analyzed.
1
Cf. Kerin, Roger A. and William L. Cron. 1987. "Assessing Trade Show Functions and Performance:
An Exploratory Study." Journal of Marketing 51 (July): 87-94.
Return on investment (ROI)
? The perception of the success of a trade fair participation is closely related
to the ?Return on Investment (ROI)? of a show. Exhibitors should be able to
ascertain if the participation in the exhibition was "successful" or not.
? For this reason exhibitors must calculate the benefits of their participation
based on an evaluation of the resources expended (e.g. money, man-hours,
and other investments) for the participation and how much benefit they got
out of the show.
? At the present stage there are several models in use which differ very much.
Scoring models are used in which quantitative and qualitative returns are
transformed into uniform scales.
? The ?Trade Fair Benefit Check? developed by the German association AUMA
(www.auma-fairs.com) is designed to measure the benefits of show partici-
pation on a wide scale, taking into consideration the monetary equivalent
value of quantitative and qualitative returns.
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Controlling as a management task serves as the check and command of the
enterprise.
Components are: aim development, planning, realization, testing.
The check of a participation in a trade show is part of the overall controlling
process and will help:
? To optimize the marketing mix of the enterprise;
? To supervise the cost-benefit relations and
? To check and optimize the effects caused by the trade show appearance.
The measures and tests available help to check the trade show targets and can
be used during or after the show.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Tests after the show
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? Before the exhibitor checks his marketing targets the following questions
should be answered: What should be tested? Which methods should be
used? Who should be responsible for the testing? What is the budget for
the testing process? How should the measures be integrated into the time-
line and organization of the participation? How do we use the results after
the show?
? During the trade show the measures listed on the left can be used. They will
be described on the following pages in more detail.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Counting of distributed material
Counting of stand visitors
Observation of stand visitors
Interviews with stand visitors
Assessment of visitor records
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? Objective
Analysis of the information behaviour and the products‘ interest for visitors.
? Method
Calculation of the beginning and final inventories of the different materials
(e.g. give-aways, informative material).
? Assessment
Simple control instrument. Main emphases of the visitors‘ interests are rec-
ognized. Partly restricted information about perception and acceptance of
the range of products and performances at the booth.
Recommendable as an additional control instrument.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Counting of distributed material
Counting of stand visitors
Observation of stand visitors
Interviews with stand visitors
Assessment of visitor records
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? Objective
Analysis of the visitor frequency at the booth. Conclusions on the visitor in-
terest possible.
? Method
Specification of counting points. All visitors who enter the stand are count-
ed. Time period: on all days during the opening hours of the fair. To get bet-
ter results sometimes only the personal and documented contacts are
counted.
? Assessment
Simple control instrument. Activation degree of the visitor interest and pub-
licity of the company can be stated. Visitors can be identified more precisely
(e.g. sex; age). Multiple counts cannot be excluded. Qualitative interviews as
an additional instrument recommendable.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Counting of distributed material
Counting of stand visitors
Observation of stand visitors
Interviews with stand visitors
Assessment of visitor records
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? Objective
Documentation of the individual visitor behaviour in a spatial and temporal
view.
? Method
Tracking of single visitors by trained staff. Behaviour is documented in an
elevation paper (e.g. duration of the visit, special stops, reactions to exhibits,
number of the visual contacts, dealing with informative material, frame of
mind during the conversations).
? Assessment
The observation of stand visitors is an expensive control instrument. Special-
ized staff is needed to evaluate the activation and customer contact aims in
qualitative form. Only low case numbers are possible.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Counting of distributed material
Counting of stand visitors
Observation of stand visitors
Interviews with stand visitors
Assessment of visitor records
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? Objective
Investigation of complex and individual surveys of the exhibitors.
? Method
Verbal, written and computer-assisted interviews with the stand visitors.
Interviews last approx. 5 to 20 minutes depending on subject and sur-
roundings.
? Assessment
This control and market research instrument is expensive. The exhibitor
evaluates the structure of the stand visitors (short interviews). It is also
possible to assess the quality of the booth concept (e.g. information of-
fer, choice of the exhibits, quality of the customer contact, attractiveness
of the booth).
Advantages are to discover observable reactions of the visitors (e.g. to
exhibits, special events); but also to analyze e.g. attitudes, opinions.
Some disadvantages are that no sample inquiry is ensured. The interview-
ers can have influence on the reply and the structure of the people asked
can be one-sided.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Counting of distributed material
Counting of stand visitors
Observation of stand visitors
Interviews with stand visitors
Assessment of visitor records
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? Objective
Collecting of information about the visitors; socio-demographic, company
specific data, reasons for the stand visit, measures for the re-working.
? Method
Structured or unstructured summary of the contacts by the exhibitor's staff
at the stand.
? Assessment
A report should be made from every conversation. However, because of the
hectic surroundings this is not always possible. Important information is
partly forgotten. The visitors‘ evaluation of the stand is often not recognized,
remembered or recorded . Visitors who only look around aren't included.
The instrument has to be used in any case. The visitor records make the re-
working after the show easier.
3
3
http://www.ufi.org/media/pdf/seminars_presentations/porto2009/2009-ess-porto_marcus_timson.pdf
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Counting of distributed material
Counting of stand visitors
Observation of stand visitors
Interviews with stand visitors
Assessment of visitor records
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VI . Evaluation of Participation
A. Efficiency Assessment
RFID
Visitors to trade shows today erroneously believe that all visitors are equal.
The truth is any particular company at any particular event is likely to only bene-
fit from engagements with a small segment of the visitor base that matches
their definition of a ?buyer?. Technology today can be leveraged to help facili-
tate the marriage of buyers and sellers, and filter out non-buyers.
The FISH application now used for events was developed for the US Army.
The Army application was geared toward allowing both recruiters and digital
media to leverage known visitor profile information in order to deliver more rel-
evant messages that align with interests and goals. Each visitor is assigned an
RFID tag that is used to track and record their exact location every second and
then leverage that location information (for both measurement and marketing
purposes) throughout the experience.
Video analysis has been widely accepted and has merit in the event space as a
tool to analyze the aggregate visitor behavior. It does not offer the ability to reli-
ably segment the analysis by demographic profile and is often marketed with
the erroneous assumption that ?higher interactions rates lead to more sales
and a higher return on investment?. This of course only holds true if the right
target demographic has been selectively attracted to the stand - not all visitors
have equal value. I have highlighted ?Hawthorne Experiments? mainly since this
seems to be an admission that the technology does not lead directly to real
results. Hawthorne experiments refer to the ?Hawthorne Effect? which means
that people that know they are being tracked and analyzed will always show a
significant increase in productivity.
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Passive RFID has also been widely used and accepted in the event space.
It is called passive because it has no internal power source of its own. Power is
beamed at a tag and the energy is then reflected from the tag back to a receiv-
er that records the interrogation. Because Passive RFID is reflective it has a
comparatively low accuracy/reliability. Also with passive RFID all measurement
points need to be determined pre-event and hardware needs to be strategically
placed. With the Fish RTMS (Real Time Measurement System) the sensors are
permanently mounted in the ceiling and every square meter of the show floor
is covered and measured every second - which gives us the ability to redefine
measurement zones even after the show has ended.
4
4
http://www.ufinet.org/media/pdf/seminars_presentations/porto2009/2009-ess-porto_michael_gilvar.pdf
5
http://eventmeasurement411.wordpress.com/
VI . Evaluation of Participation
A. Efficiency Assessment
Philips Healthcare RSNA 2008: Specific Areas of Exhibit Visited and Time Spent
Based on RFID data for the survey respondents
5
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? Objective
Investigation of complex and individual questions about the means and
long-term effectiveness of the fair engagement (distance of approx.
4 -6 weeks after the fair; or in the long-term control area even later).
? Method
Verbal and written interviews with known stand visitors. Interviews last
approx. up to 20 minutes depending on subject.
? Assessment
Expensive control and market research instrument. Particularly psycho-
graphic aims are evaluated: Publicity of the enterprise, recognition of
logo, products, statements concerning products, long-term change of
the behaviour. Sentimental values in comparison with competitors.
Advantages are to get to know the reactions of the visitors regarding
e.g. attitudes, opinions, image. The comparison of reference groups
(visitor - non visitor) is possible. The tool ?interviews with stand visitors
after the trade show? is an important method with regard to the evalua-
tion of the fair as a communication tool.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests after the show
Interviews with stand visitors
after the show
Interviews with personnel
working at the booth
Invitation resonance analysis
Analysis of the visitor statistics
of the organizer
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? Objective
Improvement in the fair participation, particularly stand service, effects of
the fair participation on the daily work, collecting suggestions from conver-
sations with customers.
? Method
Structured interviews with the exhibitor's staff at the stand during but also
immediately after the fair.
? Assessment
Compared to other methods the interviews with stand personnel are rather
cost-effective. Experiences are documented and made useable for the com-
ing events. The challenge is that interviews with the exhibitor's staff are ne-
glected as there isn?t any immediate use.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests after the show
Interviews with stand visitors
after the show
Interviews with personnel
working at the booth
Invitation resonance analysis
Analysis of the visitor statistics
of the organizer
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? Objective
Efficiency check of the invitation campaign (direct mailings).
? Method
Documentation of the reactions to the invitations: answers, reactions to se-
cond mailing and telephone contacts, accepted invitations at the booth.
? Assessment
The invitation resonance analysis is a cost-effective instrument. The results
can be used for a differentiated re-working of the visitors. Visitors met at the
booth have to be treated differently than customers who haven't accepted
the invitation.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests after the show
Interviews with stand visitors
after the show
Interviews with personnel
working at the booth
Invitation resonance analysis
Analysis of the visitor statistics
of the organizer
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? Objective
Check and comparison of the composition of the customers at the booth.
? Method
Comparison of the structure data of the visitors raised by the organizer with
the data investigated by the exhibitor. Visitor interviews necessary, at least
to get the right structure data.
? Assessment
The evaluation of the segment specific range of the trade fair is possible.
The accessibility of the target group can be tested. However, the structure
data of the organizer and those from the exhibitor are sometimes not suita-
ble. The value remains restricted: Important structure data are missing as
not all relevant data are investigated. Data aren't available for every trade
fair.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests after the show
Interviews with stand visitors
after the show
Interviews with personnel
working at the booth
Invitation resonance analysis
Analysis of the visitor statistics
of the organizer
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Efficiency analysis means evaluating the trade show participation. The exhibitor
wants to know if the cost-benefit ratio is positive or not, therefore the planned
budget has to be checked. Deviations have to be identified and to be analyzed.
On the basis of the budget check, some coefficients can be measured to com-
pare participation in different trade shows or to evaluate the annual participa-
tion in one show.
During the budget check the planned and actual costs are compared. The tar-
get-performance comparison of the costs is informative if all costs (e.g. invoice
figures, imputed costs) have been accounted for the project.
The budget check contains the deviation analysis and the calculation of charac-
teristics.
First of all the deviations are identified. The exhibition manager has to ask what
the reasons for the differences between planned and actual costs are.
The characteristics calculated for one or, even better, for several (comparable)
shows, examine the efficiency of the participation.
6
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
6
Cf. Kerin, Roger A. and William L. Cron. 1987. "Assessing Trade Show Functions and Performance:
An Exploratory Study." Journal of Marketing 51 (July): 87-94.
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Planned costs € Actual costs € Deviation €
Rental of stand 6,200 6,200 0
Power Supply 600 650 50
Other basic costs 1,250 1,290 40
Construction 8,450 12,100 3,650
Equipment 1,800 1,860 60
Design 1,900 2,300 400
Depreciation 600 600 0
Stand Service 1,750 1,750 0
Communication 2,200 2,350 150
Transport 1,300 1,300 0
Waste disposal 50 50 0
Personnel costs 5,350 6,000 650
Travel costs 3,100 3,300 200
Other costs 1,850 1,900 50
TOTAL 36,400 41,650 5,250
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
Budget for a trade show participation:
Planned and actual costs need to be
compared.
After the show the exhibitor recognizes that the actual costs severely differ
from the planned costs. The reasons could be:
1. The costs for stand construction outvalue the planned costs by 42%
(3,650 €). The costs for the stand design were 21% higher than
expected (400 €). The equipment costs slightly increased (60 €; 3.3%).
The reasons could be: The exhibitor decided to improve the stand construction
and design shortly before the trade show. Therefore the costs increased. How-
ever, the stand was more attractive; more visitors came than expected; there-
fore the communication costs rose as well (+150 €; 6.8%).
2. The deviation of planned and actual personnel costs were 650 € (12.1%). Be-
cause of the improved communication at the stand more personnel was need-
ed. External staff was hired to manage the increased number of visitors.
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? Objective
Comparison of the participation in different trade fairs, but also comparison
with alternative marketing instruments with regard to cost benefit relations
? Method
Recording of different data from different sources: turnovers, costs, margin-
al contributions from the accountancy, visitor statistics, visitor records.
? Assessment
The calculation of coefficients is a suitable instrument to check
the profitability of the fair participations. However, the data acquisition is
sometimes expensive. Depending on the quality of the data the interpreta-
tion of the results is difficult. A continuous recording of the data over several
trade fair periods is necessary.
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
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Trade fair coefficient I
The exhibitor wants to know how much turnover has been initiated by the trade
show participation. Assuming a turnover at the fair of 125,000 € and costs of
41,650 € each 1,000 € have produced a turnover of 3001 €, or each € spent at
the trade show has led to 3 € turnover.
Trade fair coefficient I =
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
Slide 165
Value of turnovers at the fair
Costs of participation
x1000
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Trade fair coefficient II
Trade shows have become
communication platforms.
Therefore most of the contracts
are completed after the show.
It makes sense to assign the
turnovers realized at the show,
and several months after, to the participation. However, there are some inter-
face problems. If the above proposed calculation is always done in the same
way different trade shows become comparable.
Assuming turnovers at the fair, and four months later, of 380,000 € and costs
of 41,650 € each 1,000 € have produced a turnover of 9123 €, or each € spent
at the trade show has led to 9 € turnover. The cost-benefit multiplier is nine.
Trade fair coefficient II =
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
Slide 166
Value of turnovers at the fair and 4 months after
x1000
Costs of participation
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Trade fair coefficient III
To obtain more information
about the importance of the
marketing instrument
?Trade show participation?
and its relevance for the
turnover of the company the
coefficient III has to be calculated. With an assumed annual turnover of the
company of 1,520,000 € and total costs of 208,250 € (five trade shows)
each 1,000 € have produced a turnover of 7298 €, or each € spent at the
trade shows has led to 7.30 € turnover.
Trade fair coefficient III =
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
Slide 167
Annual turnover of the company
x1000
Costs of all trade show participations
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Costs per visitor
? The profitibility of the
participation is document-
ed by the coefficient
?Costs per visitor?.
How much money has to be spent to get contacts to potential customers?
? Assuming that 260 visitors have visited the booth of the company and
costs of 41,650 € have arisen the costs for each visitor are 160 €. This
figure can be compared with the costs for field service, direct mailing or
advertisement.
? To get more informative figures it is possible to divide the visitors into
different groups: professional, new, foreign visitors; management,
customers with completed contracts.
Costs per visitor =
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
Costs of the trade show participation
Number of visitors
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Auditing of Exhibition Statistics
Many companies annually decide about participating in trade shows. They are
given tight communication budgets and high targets are set. A decisive factor
for the success of trade fair planning is the quality of the data material.
Because anyone whose trade fair planning is not based on hard, verifiable
facts, risks wrong decisions which can be very expensive. The industry needs
audited exhibition statistics because the enterprises:
? Require transparency and reliable comparisons;
? Want to experience how the industry trends develop and
? Want to control the organizer?s business destiny.
? Additionally the organizers and the industry need credibility.
Exhibition organizers promote the number of visitors who attended an exhibiti-
on; but who's to say that these numbers are strictly accurate? Are visitors
counted or visits? What about repeat visits? Did those visitors come once, or
several times? Among those who attended, do they live just down the street or
did they travel from far away? And when organizers promote the size of an ex-
hibition, is everyone on the same page? Is the exhibition space alone being ta-
ken into account, or all the facilities? How many exhibitors were there?
And were they "real" (direct) exhibitors or did they just represent several
companies?
It is difficult for a company to compare conflicting information when making a
decision on whether to exhibit, and where. Which figures are audited?
? The number of visitors or visits, with a breakdown
between national and international;
? The number of exhibitors and again with the international
versus national breakdown;
? The net exhibition space
Some auditors go one step further, providing demographic analysis, market
research etc.
VI . Evaluation of Participation
C. Auditing—Transparency in the Exhibition Industry
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Certain countries have been actively promoting auditing as a concept. Some
have even passed laws which make auditing obligatory (e.g. France). In other
countries such as the United States, the notion of auditing is new but
marketers within all media platforms are being held more accountable for spen-
ding decisions. Some countries have even linked auditing with government
subsidies: only audited events may obtain financial help from the government.
Difficulties arise in countries where auditors are not present.
Due to the various levels of development as outlined above and global diversi-
ty, the methodology used in exhibition auditing is not standardized.
UFI has developed a basic minimum standard (UFI's Auditing Rules) for all its
members and is consequently implementing it.
VI . Evaluation of Participation
C. Auditing—Transparency in the Exhibition Industry
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VI . Evaluation of Participation
C. Auditing—Transparency in the Exhibition Industry
Example of audited data of a trade show in France (source: AUMA, Germany)
Salon International de la LINGERIE
Venue Paris, France
Paris Porte de Versailles (VIPARIS)
Date Jan 23., 2010 - Jan 25., 2010
Interval Every year
Founded in 1960
1
st
organizer Fédération de la Maille
B.P. 121, 37/39 rue de Neuilly
92113 Clichy Cedex
Tel: +33-1-47563232 · Fax: +33-1-47563299
www.textile.fr
2
nd
organizer Eurovet
B.P. 121, 37-39, Rue de Neuilly
92113 Clichy Cedex
Tel: +33-1-47563232 · Fax: +33-1-47563299
[email protected]
www.eurovet.fr
Industry sectors Clothing, Fashion
Main product
group
Lingerie, Corsetry, Hosiery, Bathing Suits, Men's Underwear,
Fashion
Accessories, Pyjamas and Night-gowns
Opening hours trade visitors: daily 09.00-19.00 h , last day 09.00-18.00 h
Statistics 2/2006 2/2007 1/2008
Audit OJS OJS OJS
Space (m², net) 15 470 16 015 15 967
Rented/hall space 15 470 16 015 15 967
domestic 6 034 6 189 5 742
foreign 9 436 9 826 10 225
Exhibitors with
own stands
413 436 426
domestic 130 139 122
foreign 283 297 304
Trade visitors total 35 478 31 100 29 658
domestic 15 598 13 395
foreign 19 880 17 705
AUMA copyright – subject to change
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Modern trade shows have developed from a long historical tradition, which
mainly influenced the economic rise of modern Europe and increase of trade
between Europe and the East.
7
Today?s trade shows
? Are a powerful marketing-tool;
? Represent themselves as information and sales platforms;
? Are important presentation instruments for special market segments;
? Initiate profits for exhibitors, visitors, organizers, service providers and the
local economy.
Trade show participation
? Must be integrated into an overall marketing communication concept;
? Supporting tools must be adjusted;
? The trade show concept must reflect the company`s strategy.
Benefits
? High attention, not only from the target group but also from the media;
? Remarkable number of contacts with target group at relatively low costs;
? Efficient tool to realize Customer Relationship Marketing (CRM).
Trade show experience helps to improve and ensure a maximum return on
investment.
VII . Summary
A. Conclusion
7
Cf. Robbe, D., Expositions and Trade Shows, Canada: Wiley 2000
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Disadvantages of participations in trade shows
? The expenditures for trade shows are relatively high;
? The preparation and realization of a trade show participation requires
personnel and other resources before the trade show;
? Trade shows take place once a year – as a rule. They are not available at
other times.
VII . Summary
A. Conclusion
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VII . Summary
B. Future Development
Trade fairs still play an important role in marketing and they will continue to do
so in the future. The exhibition industry is part of the global economy and is
therefore directly influenced by the economic and social changes. What are the
influencing factors which have an impact on the exhibition business? A few fac-
tors are described below:
? The trade flows will change in the future. The BRIC and other developing
countries will become more and more important for the international de-
mand and supply. New players – especially venues and organizers - will
enter the exhibition business following these trade currents.
It is expected that the whole range of trade show portfolios will exist
in each economic region.
? There is a rising awareness of green issues. They will become more im-
portant also for the exhibition industry. Waste management, water and ener-
gy saving, intelligent transport concepts, environmentally sustainable prod-
uct use and other environmental issues will affect the exhibition industry.
? Shorter product life cycles are a wellknown phenomena in the industry.
This means products reach the end of their use in shorter periods. Trade
shows will have to follow this trend as well. The trade show concepts need
continuous adaptation to the acceleration of the life cycles.
? The exhibition business needs travelling exhibitors. Because of travel
restrictions and crises the mobility of the people around the industry will be
affected more often than in the past.
? The internet will play an important role for the future of trade fairs. Not as an
alternative, but as a supporting tool before, during, and after the trade fair.
? The exhibition business will diversify in the future. Especially, the integration
of classic (e.g. print media) and modern media (e.g. the internet, special
events) will be a success factor for the exhibition industry.
? Networking will become more and more important. Because of the globali-
sation of the exhibition industry, the cooperation of domestic and interna-
tional enterprises will lead to a win-win situation of all partners.
The global industry will be moving together.
Slide 173
doc_165890401.pdf
in the Marketing Mix
© UFI - The Global Association of the Exhibition Industry
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© UFI - The Global Association of the Exhibition Industry
Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany 2
Dear visitor,
Welcome to the online course of UFI:
?The Role of Exhibitions in the Marketing Mix?.
This online course is directed to:
lecturers who want to introduce the topic "fairs and
exhibitions" to marketing and communication
classes, students who want information about trade
fairs as a marketing instrument and personnel of exhi-
biting organizations who want to learn about the be-
nefits of participating in trade fairs.
The content is structured as follows:
? In the first three Chapters general information
about trade fairs and the exhibition industry is
presented (definitions, integration into the marke-
ting mix, historical background, benefits of trade
fairs).
? The essential features of participation in trade fairs
are described in Chapters IV - VI.
A special focus is on integrated marketing and the
future of the value of trade fairs and exhibitions in
overall marketing strategies and action plans.
The course lasts about eight hours. It can be used
free of charge. A PDF and a power-point version are
attached. If there are any further questions you may
contact Dr. Rowena Arzt, Director of Business Develo-
pment ([email protected]); Prof. Dr. Beier (Author),
Cooperative State University, Ravensburg,
Germany ([email protected]).
I. Fairs, Expositions and Exhibitions
A. Definitions
B. Types of Exhibitions
II. Historical Development
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
B. The Exhibition Industry in the world
C. Importance for Exhibiting Enterprises
IV. Integrated Exhibition Marketing
A. Information Sources
B. Specific Marketing Aspects
V. Trade Fair Participation
A. Selection Criteria
B. Exhibition Strategies and Styles
C. Exhibition Targets
D. Stand Impact
E. Follow-up Measures
F. Risk Management
VI. Evaluation of Participation
A. Importance of Evaluation
B. Efficiency Assessment
C. Auditing
VII. Summary
A. Conclusion
B. Future Development
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REMARKS
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I. Description of Fairs, Expositions and Exhibitions
A. Definitions
The roots of the phenomenon "Fairs, Expositions and Exhibitions" can be traced
back to its language origin: "Fair" comes from Latin "feria", meaning "holiday" as
well as "market fair". This in turn corresponds to the Latin "feriae", which means
?religious festival?.
1
During the 12th century the importance of trade-related meetings increased;
fairs were held close to churches, so that the concepts of religious festival and
market fair were combined in the common language.
2
The word ?exhibition? was mentioned as early as 1649. It is a derivative of the
Latin word "expositio", meaning "displaying" or "putting on a show".
3
Exhibitions are not just collections of interesting objects brought together at a
certain place and time. They are human activities, human enterprises, undertak-
en for definite reasons and in order to achieve certain specified results.
They are a form of human exchange, whereby the promoters and exhibitors
communicate with the visitors. Their results can only be told in terms of further
human thought and activity.
4
The word "exposition" goes back to the same origin as "exhibition".
Expositions, rooted in old French, tended to be very similar to their English
cousins, exhibitions. Expositions were held in facilities built specifically for
them.
They were organized by either government departments or groups of entrepre-
neurs with government assistance for the express purpose of promoting trade.
Manufacturers were invited to show their goods.
5
In colloquial speech the concepts are used similarly. However, there are some
interesting conceptual differences which show the variability of today's exhibi-
tion industry. Have a look at the next pages and follow the descriptions.
1
Cf. Barnhart, Robert K, The Barnhart Dictionary of Etymology, London 1988, p. 366. See also: Waters, H.W.
History of Fairs and Expositions: Their Classification, Functions, and Values.(London, 1939).
2
Cf. Walter, Rolf, Wirtschaftgeschichte: Vom Merkantilismus bis zur Gegenwart, 3rd ed. Cologne 2000, p. 7.
3
Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 11.
The terms exposition – exhibition – trade show and trade fair (also fair) are similar and used interchangeably
in this paper; as described by Meffert, an unambiguous disassociation is not possible, cf. Meffert, Heribert,
Grundlagen marktorientierter Unternehmensfuherung, Konzepte – Instrumente – Praxisbeispiele, 9th ed.
Wiesbaden: Gabler, 2000 p. 741.
4
Luckhurst, Kenneth W, The Story of Exhibitions, London 1951, p. 9.
5
Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 11. See also Findling, John E.
and Pelle, Kimberly D. (Eds.). Historical Dictionary of World‘s Fairs and Expositions, 1851-1988, New York:
Greenwood Press 1990, XIX.
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Fair
The Middle Age English word "feire",
which means a gathering of people held
at regular intervals for the barter or sale of
goods, is the one from which the present
day definition, i.e. a periodic gathering for
sale of goods, often with shows or enter-
tainment, at a place and time fixed by cus-
tom, is taken.
6
Georg Emanuel Opiz
Russians at the fair in Leipzig 1825
Museum of town history, Leipzig, Germany
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
6
Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 9.
Fair
Trade fair Trade show Consumer show
Mixed show
Exposition Exhibition Exhibition
Earliest type of market,
direct selling
Generic terms, interaction with buyers and
sellers, displaying goods and services
International exposition,
special segment of an industry
B-to-C exposition
General public as visitors
B-to-B exposition
Trade visitors
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Expositions and exhibitions
They have always been combined with the display of goods and products.
7
Exhibitions differ from fairs in four major ways:
8
? One-time events
First, exhibitions are usually one-time events. They do not enjoy a recurring
life cycle. However, while fairs run for a short period of time, many exhibi-
tions run for months, some for a year or longer. The first representatives of
this category were the World Expos (see chap. World Expos).
? Permanent facility
Second, exhibitions are housed in permanent facilities built specifically for
them. Starting in the 18th century, the practice of building a facility for the
express purpose of housing an exhibition was the precursor of the exposi-
tion/convention centre industry.
? Highly organized events
Third, although fairs are held regularly, they are not highly organized events.
Over time, religious and later civic leaders did take control of the grounds
where fairs are held (usually public lands). Exhibitions, on the other hand, are
highly organized events. They were initially created by government depart-
ments or committees for the purpose of promoting trade.
? Stimulation of future sales
Finally, exhibitions differ from fairs in the very way in which business is con-
ducted. Goods are bought and sold at fairs. At exhibitions, commercial activ-
ity or selling the displayed goods is not usually involved. However, inherent
in displaying goods is the hope of stimulating future sales.
Today this is how most exhibitions still operate.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
7
Allwood, John, The Great Exhibitions, London 1977.
8
Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 10f.
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2008 Canton Fair:
- National Pavilion:
18,207 Exhibitors
- International Pavilion:
514 Exhibitors
- Number of overseas buyers:
192,013
- Business Turnover:
$ 38,230 Million
- Exhibition Space:
851,000 m
2
Trade Fairs
They have been the primary marketing medium of exporting countries.
The exhibits are confined to one industry or a specialised segment of a special
industry. They are more commonly known as trade fairs. Historically, trade fairs
have been the primary marketing medium of exporting countries.
Initially, trade fairs were horizontal in their organization, with various products
and/or services in specified industry groupings. A vertical organization is more
commonplace today with the exhibits being confined to one industry or a spe-
cialized segment of a specific industry. Buyers are usually business members
of an industry and often must be pre-qualified to attend the fair.
9
The China Import and Export Fair, also called the Canton Fair, has been held
twice a year in spring and autumn since it's inauguration in 1957. It is China's
largest trade fair, presenting complete varieties of goods with a vast attend-
ance and business turnover. Preserving its traditions, this Fair is an event of
international importance.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
9
Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 14.
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Trade Shows
Trade shows are b2b events. Companies in a specific industry can showcase
and demonstrate their new products and services. Generally trade shows are
open to trade visitors. They are attended by company representatives and
members of the press. Nowadays, some of the trade shows, especially those
for consumer goods, are also open to the public.
Examples of trade shows are CeBIT and Hong Kong Electronics Fair (IT-
industry).
Historically, trade shows have been conceived of as vehicles of communication
with company exhibits fulfilling an advertising and display function. Over time,
this view has been challenged and replaced with the view that trade shows are
primarily events where products and services are sold, or contracts and rights
signed. However, in some instances, product or service offerings and buying
processes are regarded as too complex to permit full assessment or commit-
ment to be made on-site. In such situations, trade shows, at best, are likely to
generate sales leads to be followed up afterwards. In the 1980s, a broader
view of trade shows became more accepted. Several researchers argue that
companies use trade shows to pursue multiple objectives beyond communica-
tions and selling.
CeBIT 2009 got off to a powerful start and ended on a successful note, boosting optimism in the
world ICT industry. A majority of the 4,300 companies from 69 countries drew fresh optimism
from being at CeBIT.
http://www.cebit.com
CEBIT,
Germany
world?s largest
show for the
computer industry
Web: Keynote by Arnold Schwarzenegger
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 10/11
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REMARKS
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Trade shows or b2b shows do have certain distinguishing characteristics that
set them apart from consumer or combined shows. The exhibitor is typically
a manufacturer or distributor of products or services specific or complementary
to those industries authorized at the show.
The typical buyer is an industrial end user, or distributor, within the industry
segment hosting the exposition.
Attendance is restricted to these buyers and is often by invitation only. Busi-
ness credentials or pre-registration are usually required to qualify the buyer as a
legitimate member of the trade or industry. An access or registration fee may
also have to be paid prior to admission to the event.
Trade show events may be as short as a single day or as long as seven to ten
days depending on the markets being served. Some are held semi-annually.
Most are held annually, a few biennially. Some large-scale industrial exposi-
tions are held once every three to seven years.
10
Hong Kong Electronics Fair
Asia's largest show for the computer industry
10
Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 13. See also Stevens, Ruth,
Trade Show & Event Marketing: Plan, Promote & Profit.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 12/13
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REMARKS
9
Trade Shows – Thailand
"Thaifex? – World of Food Asia is the central platform for the
food and beverage business in Southeast Asia. More than
1,000 exhibitors are expected to showcase their products at
the trade fair this year. In 2008, 21,833 trade visitors from
127 countries visited the event, and they saw 1,011 exhibi-
tors who represented 32 countries and regions. Many group exhibitors take
part in Thaifex – World of Food Asia every year, such as those from China,
France, Germany, Italy, Korea, Malaysia, Netherlands and Peru.
http://www.worldoffoodasia.com
Trade Shows – India
SATTE is now in its 16th year. What started as pure inbound, has now be-
come a name for buying and selling Indian tourism.
Hosting over 4000 tour operators from 40 countries worldwide.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Examples of trade shows from different countries
http://www.satte.org
Slide 14/15
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REMARKS
10
The National Trade Center, Toronto, Canada
Approximately 175,000 people visit the annual Na-
tional Trade Centre to experience the latest trends,
product innovations and fashion-forward decorating
ideas for the home. As the largest home show in
North America, the National Home Show features
more than 800 exhibitors offering a selection of
home products and services that is second to none. It‘s a chance to get a
sneak peek at the latest and greatest products for the home and to see what
the future holds for homeowners across Canada.
(http://www.nationalhomeshow.com)
Consumer Shows (public shows)
11
Consumer shows are events that are open to the general public. Exhibitors
are typically retail outlets, manufacturers or service organizations looking to
bring their goods and services directly to the end user. A consumer show, or
public show, is an event that serves specific industries or interests, held for a
particular duration of time (1 to 10 days). They include several shows: e.g.
home shows, car shows, sportsman shows, computer and technology shows,
and many others. The primary purpose of a consumer (public) show is direct
selling. Buyers (consumers) are brought together with sellers of goods and
services. Consumers benefit from a diverse product mix, expert advice, edu-
cation and entertainment. Sellers benefit by immediate consumer purchases,
product and brand awareness, public relations, research and development,
and product testing.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
11
http://www.goodfoodshow.com.au
Slide 16/17
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REMARKS
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Consumer Show – Australia
The Good Food & Wine Show has established itself as
Australia‘s largest consumer food & wine exhibition.
Since 2001, the Good Food & Wine show has grown
from strength to strength and
today over 120,000 visitors flock to the Melbourne,
Sydney, Perth and Brisbane events to shop, sample,
stimulate their senses and meet their food heroes.
http://www.goodfoodshow.com.au
Consumer Show —
Las Vegas, USA
The Consumer Electronics Show
in Las Vegas is one of the most
influential trade shows in the
electronic world. At the CES
Convention Las Vegas visitors
and residents scour the floors
for the latest and greatest offer-
ing a huge variety of the newest technological products.
At each Consumer Electronics Show, trade show participants from the big-
gest names in the industry often announce or debut their newest product
lines. This brings about major exposure to new products all around the world.
Tech-junkies from near and far all head to Las Vegas each January for a week
of the biggest headliners in the tech world. Las Vegas hotels and casinos fill
up fast as thousands clamor to get to the trade show.
http://www.cesweb.org
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 18/19
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REMARKS
12
Mixed shows
Mixed shows are a combination of trade and public shows. Exhibition organis-
ers tend to open their trade shows to trade and to public visitors.
Example:
Special types of trade fairs
Finally, trade fairs are combined with other events such as seminars, fashion
shows, special events and congresses.
This combination raises visitor interest, driven by the high demand for infor-
mation exchange and the availability of experts. Exhibitors use this kind of
show to meet many experts of one market segment.
Dubai International Jewel-
lery Week
Dubai World Trade Centre, organizer of the region's exhibition for jewellery
and precious timepieces, presents Dubai International Jewellery Week.
Based in Dubai's celebrated "City of Gold", Dubai International Jewellery
Week reflects one of the world's most dynamic markets for luxury goods. It
provides the perfect platform for global and regional manufacturers to meet
buyers from the Gulf, North Africa, India and beyond.
http://www.jewelleryshow.com
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 20-22
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REMARKS
13
Virtual fairs
They appeared in the 90s when internet use became widespread. The demise
of traditional fairs was considered "inevitable". Possible touted advantages:
elimination of usual trade show time constraints, space factors and exhausting,
long-distance travel. ?Productpilot? was initiated by Messe Frankfurt. It is a
trade fair between trade fairs. During the whole year Messe Frankfurt offers a
platform where visitors can research exhibitors and products from the trade
show portfolio of the organizer. Thousands of manufacturers, traders and ser-
vice providers from many different industries are registered in ?productpilot?.
All product and business information is updated regularly. It is possible to find
business partners, to exchange information and to discuss topics of shared in-
terest.
12
However, it is now clearly accepted that traditional fairs cannot be replaced by
virtual ones. Face-to-face contact remains a significant privilege of traditional
fairs. Applying customer relationship management (CRM) and building up the
loyalty of clients remain the advantages of exhibitions. Nevertheless, the World
Wide Web has very much affected the organization of exhibitions. Exhibitors
and visitors take their information from the net and decide whether to partici-
pate in the exhibition or not. Organizers try to communicate with their custom-
ers via the internet to save money and to accelerate the communication
process.
12
http://www.productpilot.com
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
MEDICA
Another good example is the medical branch which has one of the highest
needs for trade fairs and congresses. During the "International Trade Fair
with Congress World Forum for Medicine (Medica)" an extensive supporting
programme of speeches and debate forums is ser-
ved. An international continuous medical education
module in English is attached.
Even more visitor attention attracts COMPAMED, the
trade fair starting in parallel with MEDICA.
http://www.medica-tradefair.com/
Slide 22
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REMARKS
14
Crystal Palace in London
built for WORLD EXPO 1851
World's Fair - EXPO: A special type of exhibition
World Expo is the generic name for various large expositions held since the
mid 19th century. The first international exposition took place in London in
1851.
Since its success, numerous expositions have been held all over the world, in-
cluding the Paris Exposition of 1889, which gave birth to the Eiffel Tower. The
official sanctioning body is the Bureau International des Expositions or BIE. Ex-
positions approved by BIE are universal, and international or specialized, lasting
from 3 to 6 months.
Universal expositions encompass universal themes that reflect the full range of
human experience. These Universal Expos usually have themes upon which
each country‘s pavilion is based For example, the theme for the Expo 2010 in
Shanghai, China, is ?Better City, Better Life".
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 23/24
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REMARKS
15
Universal Expositions and International Expositions
Universal Expositions are held every 5 years on a site with no area limitations.
They last 6 months and address a general theme. Another example of this type
of exposition is the Expo 2005 in Japan: "Nature‘s Wisdom?.
International Expositions, such as the one in Zaragoza 2008, are held over
3 months on a site of no more than 25 hectares. They address a specific
theme, which in this case, was "Water and Sustainable Development".
To distinguish them from other fairs, expos require the total design of pavilion
buildings from the ground up. As a result, nations compete for the most out-
standing or memorable architectural structure.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 25
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REMARKS
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The 2008 World Exposition, Zaragoza, Spain
http://www.expozaragoza2008.es
Theme for 2008 World Exposition: "Water and Sustainable Development"
The 2008 Zaragoza International Exhibition was the first ever to deal with
?Water and Sustainable Development?. The 2008 Expo was a great interna-
tional event held on the banks of the River Ebro in which 104 countries, three
international organizations, and all of Spain‘s autonomous communities and
cities took part.
EXPO examples
The first real international exhibition took place in London 1851.
At least 14,000 exhibitors and more than six million visitors attended.
13
Recent Universal Expositions include Brussels Expo '58, Seattle Expo '62,
known as the Century 21 Exposition, Montreal Expo '67, San Antonio
HemisFair '68, Osaka Expo '70, Brisbane Expo '88, Seville Expo '92, Lisbon Ex-
po '98, Hanover, Germany Expo 2000. The Expo 2010 will be held in Shanghai,
China.
14
13
Cf. Mathias, Peter; Polland, Sydney (ed.), The Cambridge Economic History of Europe, Volume III, The
industrial economies, Capital, labour, and enterprise, Cambridge 1989, p. 100.
14
Anderson, Eleanor, The Expo Story, University of Toronto 1986.
I. Description of Fairs, Expositions and Exhibitions
B. Types of Exhibitions
Slide 25
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REMARKS
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When you consider the roots of trade shows and exhibitions in general, you
start thinking about how long people have been selling things to one another.
When hunter-gatherers in former times met other wandering tribes they dis-
played goods for change to gain the goodwill of the respective group.
It‘s a fundamental principle of business survival that has prevailed throughout
history and around the globe.
Historically, trade shows likely started with people simply displaying their
goods in public places. They talked with potential buyers about what they had
to offer. Then, they negotiated a purchase price or barter until a mutual agree-
ment was met.
When you investigate the history of trade shows and exhibitions you come
across the term ?bazaar?.
The Britannica describes BAZAAR (Pers. bazar, market) as follows:
?a permanent market or street of shops, or a group of short narrow
streets of stalls under one roof.?
The word has spread westward into Arabic, Turkish and, in special senses, into
European languages, and eastward it has invaded India, where it has been gen-
erally adopted. In southern India and Ceylon bazaar means a single shop or
stall. The word seems to have reached southern Europe early (probably
through Turkish), for F. Balducci Pegolotti in his mercantile handbook (c. 1340)
gives "bazarra" as a Genoese word for market-place. The Malayan peoples have
adopted the word as pazar. The meaning of the word has been much extended
in English, where it is now equivalent to any sale, for charitable or mere com-
mercial purposes, of mixed goods and fancy work.?
It is even believed that exhibitions or trade fairs began almost 600 years before
the birth of Christ.
While no precise record is available, the ?Book of Ezekiel‘ (in the Bible) written
in 588 BC, contains many references to merchants trading in a "multitude of the
kinds of riches with silver, iron, tin and lead". Ezekiel also talks about the city of
Tyre which was an important center of trade and commerce.
II. Historical Development
Slide 26
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REMARKS
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Fairs have been important institutions of the European trade. They can be
traced back to the high Middle Ages. The earliest market places, which can be
characterized as exhibitions, were founded in the Champagne region of France.
They started a continuous development which has lasted until the exhibition
industry of today. The development of the exhibition industry over several
hundreds of years can be divided into several stages.
? Medieval fairs = preferred markets before the 12th century
1
Until the 12th century only few references to fairs and large markets can be
found in the Franconia empire and the adjacent regions.
In France in 629 the Abbey of St. Denis gets privileges from Merovingian
King Dogbert I: the right to levy customs and special protection by the king.
Both were renewed continuously.
Privileges granted to a town from sovereign, emperors, kings
- Custom and exemption from custom and taxes
- During the fair, non-residents also were allowed to open their stands
- Fair courts were established (mediation, contracts)
- Military protection = a free escort
Example from Portugal in the 12th century: Tax exemption = feiras francas
II. Historical Development
1
Cf. Ott, Hugo; Schaefer, Hermann (ed.), Wirtschafts-Ploetz, Die Wirtschaftsgeschichte zum Nachschlagen,
2nd ed., Freiburg: 1985. Concerning the Bristis history see the interesting link:
www.stirbitch.com/cantab/profiles/medieval_fairs.html
Slide 27
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REMARKS
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12th and 13th century
2
During this period the first exhibition sites and trade centres emerge.
The first typical organizational structures of exhibitions can be identified.
? Fairs in the Champagne Region (six different times at four places)
? Trading centers in the Netherlands, France,
Central and Northern Europe, Italy
? Products which are dealt in...
? France: wine, cattle
? Italy: silk, pigments
? Central Europe: fabrics, linen, metal goods
? Northern Europe: furs
In France, the four most important exhibitions sites at that time are:
Provins, Troyes, Bar-sur-Abe and Lagny.
They organized the trade for Brabant and Flanders.
II. Historical Development
2
Especially Rouen, Saint-Denis, Troyes, Reims, Châlons-sur-Marne, Lagny, Provins were of importance. Cf.
Ott, Hugo; Schaefer, Hermann (ed.), Wirtschafts-Ploetz, Die Wirtschaftsgeschichte zum Nachschlagen, 2nd
ed., Freiburg: 1985, p. 93.
Slide 28/29
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A European exhibition net starts to develop in the 14th century
In the 14th century new trade centres develop. The west-east trade becomes
more and more important. At the end of the 18th century a net of exhibition
sites exists from Poland to Spain and England to Southern Italy.
The first European currency (ECU) is rising. Historical places for European
trade fairs in the Middle Ages:
Netherlands and Belgium
Bruges, Ypern, Gent, Antwerp, Bergen-op-Zoom, Deventer, Utrecht.
Germany
Frankfurt am Main:
In 1240 the first autumn fair is founded in Frankfurt. 70 years later in 1330 an
additional spring fair is permitted by Emperor Ludwig the Bavarian
Leipzig - Frankfurt: because of the change to the Gregorian
calendar there is an overlapping of fairs in Leipzig and Frank-
furt/Main. The transfer of the fair from Frankfurt to Leipzig be-
comes necessary.
3
South France, Switzerland, Italy, Spain
The most important trade locations are Geneva, Lyon, Besan-
con, Piacenza and Medina Del Campo. As a specialty, Medina
del Campo takes over the imperial financial administration of
Emperor Charles V. After the termination of the payment by
the emperor the fair is closed in 1575.
Geneva
1320 - 1464 Geneva is the largest fair city in Europe. Trade over the Alps
opens 4 times per year for 10 days per annum.
Products: textiles, luxuries, silk, spices, non-ferrous and noble metals, pig-
ments, furs, skins, wines, manuscripts.
II. Historical Development
3
Cf. Nordmeyer, Helmut, Frankfurt Trade Fairs
http://www.stadtgeschichte-ffm.de/download/chronik_3_e.pdf (accessed 01.02.04).
Slide 30
Bergen Op Zoom
Deventer
Ypern
Besancon
Medina del Campo
Piacenza
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In the 18th and 19th centuries new types of fairs gain profile. Sample fairs and
industry-specific fairs are developed. This development is favoured by increas-
ing industrialization, the improvement of the traffic infrastructure and the form-
ing of nation-states which guarantee certainty of law and transportation safety.
At that time more than 95 percent of national industrial exhibitions are conduct-
ed in Europe.
During the process of industrialization, fairs evolve from sites for direct sales to
sites displaying a broad range of available goods: only samples of diverse prod-
uct ranges are exhibited. These fairs are known as "Sample Fairs" (from the Ger-
man "Mustermesse"). Dealers only travel with commercial samples.
MM symbol
designed by Erich Gruner in 1917
?MM? stands for ?Muster Messen? (sample fairs)
It was in 1917 - for the Autumn Fair - when the Leipzig
graphic designer Erich Gruner created the double M as
the logo of the Leipzig Sample Trade Fair which was still
very young then. It probably has become the best-
known symbol of the city. The double M has appeared
as the central element of design in all of Leipziger Mes-
se's publications and correspondence ever since. Regis-
tered in 1956, the double M is protected as a registered
trade mark in about 60 countries around the world.
Leipzig is the first exhibition site to organize a sample fair in 1895:
? Pure samples fair dominated by factory owners presenting samples of
their goods: glass, ceramic, toys, musical instruments
? From 1918 technical fairs also are carried out.
II. Historical Development
18th and 19th century in Europe: Change from goods
to samples fairs Slide 31
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During the 20th century the market segments evolve more and more.
Work division increases. The industrial sector and the service sector grow to a
large extent. In parallel, international trade expands, corresponding to a rapid
increase of new enterprises.
The exhibition industry meets these challenges by developing industry-specific
exhibition concepts. They are characterized by the following:
? The nomenclature of the trade show, i.e. the range of products and services
authorized for the show, is determined by the products and services offered
within a special market segment.
? The exhibitors and visitors of the trade show belong to a special target
group of the market segment.
Associations representing the market segment initiate the trade show or are
invited to become partners of the exhibition organizer for the special event.
? Trade journals offer their services as media partners.
? The industry-specific concepts require specialists on the side of the organiz-
ers as well. The project management of the organizer needs adapted skills
and know-how of the market segment.
Corresponding to these new trade show concepts, the functions and tasks of
exhibitions expand. From the exhibitor's point of view the exhibitions have al-
ways been important distribution channels to sell products directly.
Now new objectives are developed:
? the improvement of the company's publicity and image
? public relations
? advertising
Trade shows become platforms of communication and customer relationship
management (CRM) tools. Advanced marketing strategies show that a compet-
itive market presence is only possible if the participation is embedded in the
integrated marketing concept of the company.
II. Historical Development
The 20th century: Trade fairs and trade shows
become the dominant type of exhibitions Slide 32
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The framework conditions for today's development of the exhibition industry
are established by the end of the last century.
The breakdown of the communist system and the resulting transformation of
the former centrally planned markets to market oriented economic systems
prepare the ground for intensified trade and increased exchange of infor-
mation.
The formation of economically cooperating regions e.g. EU, ASEAN, MER-
COSUR, NAFTA und CUFTA positively influences the exchange of goods, ser-
vices and ideas. The liberalization of the Chinese market supports this develop-
ment.
As a result of these changes the exhibition industry started to adapt:
New and large exhibition sites are built or are under construction in China,
Korea, Singapore and the Near East. The fast-developing nations in these re-
gions place their expectations of economic growth and prosperity on the exhi-
bition industry. Some Asian organizers start to place their own exhibitions in
Europe or are cooperating with worldwide acting exhibition organizers.
In Eastern Europe numerous exhibition organizers expand their trade show
programme.
European exhibition organizers meet these challenges in different ways:
? domestic trade show concepts are exported to the growth markets
? they follow a branding concept to hedge their market positions
Example: Three German trade show organizers cooperate in a joint venture
with a Chinese organization. They have invested in facilities in Shanghai.
Other organizers cooperate with local partners to export their shows and to
benefit from exhibitors and visitors brought to their sites in return.
The future will show which of these ways will be the most successful.
II. Historical Development
The 21st century: Globalisation of the exhibition industry
Glossary:
EU = European Union
ASEAN = Association of Southeast Asian Nations
Mercosur = Mercado Común del Sur / English: Southern Common Market
Nafta = North American Free Trade Agreement
Cufta = Canada-US Free Trade Agreement
Slide 33
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The origins go back to London's 1851 Crystal Palace Exhibi-
tion
4
. The first World exhibition stimulated the development
of comparable events in America. These exhibitions draw
on, and reshape an early tradition of agricultural and me-
chanical fairs.
Horace Greeley and Phineas T. Barnum, organized America's
first international fair in New York City in 1853. It takes until
1876 for a group of Philadelphia civic leaders, together with the federal govern-
ment, to organize an international exhibition to celebrate the nation's centennial
and its reunification after the Civil War. Success of the Philadelphia Centennial
Exposition, attracting millions of visitors, launched the first generation of Amer-
ican international fairs: e.g. New Orleans (1884-1885), Chicago (1893), Atlanta
(1895). With the stock market crash of 1929 and the ensuing depression, the
Century of Progress Exposition (1933-1934) took on unexpected importance
and spurred the organization of expositions in San Diego (1935-1936), Dallas
(1936), and other cities.
Fairs during the depression era became a central part of
Franklin Roosevelt's New Deal efforts to demonstrate the
government's concern for the economic and social welfare
of Americans. International expositions continue to be orga-
nized in the wake of Seattle's exposition and New York's
1964-1965 extravaganza. Other cities followed. US exhibi-
tions and expositions are normally hosted together with conferences, seminars
or conventions, the latter being the main event.
Probably this speciality of the US exhibition economy can be explained by the
different distribution channels in the New World in comparison to Europe.
While in Europe exhibitions developed from markets, in the US trade represent-
atives or sales agents processed trade. The trade associations of the different
market segments have have been organizing professional conferences for
more than 100 years, the so called conventions. These are regular meetings for
the exchange of experiences and a ?Get Together? for buyers and sellers. The-
se meetings developed to combined events.
II. Historical Development
Example: United States of America
4
Cf. Rydell, Robert W.; Findling, John E; Pelle, Kimerly D., Fair America, World‘s Fairs in the United States,
Washington, London 2000, pp. 14 – 45.
Slide 34/35
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REMARKS
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III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
Economic functions
The exhibition industry takes over important economic functions. In the exhibi-
tion centre supply and demand are brought together. Exhibitions offer an inter-
active platform to the market participants.
They contribute to the development and revival of markets and market seg-
ments.
Additional economic functions are:
? Trade function:
Transactions of goods, services and information
? Transparency function:
Market overview
? Development function:
Support of the commercial development of nations, regions and cities.
Slide 36
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Visitor Survey
The main objective of the survey was to analyze trade fair visitors in terms of
their trade fair behaviour. In order to cover a broad spectrum of interests, trade
fairs from the field of office communications/EDP were taken as the basis. The
sample consisted only of qualified persons with decision-making authority in
this field.
The selection of the companies to be interviewed was made according to quo-
ta response alternatives. The quota matrix was based on the census of work
places of the Federal Statistics Office (issue 3/1989), which provides represen-
tative figures for the processing industry (21, 292 companies) in West Germa-
ny. A major element of the study is the classification of the trade fair visitors
according to their trade fair behaviour into four behavioural types. The trade
fair typology was produced by means of a cluster analysis, using the following
variables: preparations for the trade fair visit, the duration of preparations, the
duration of the trade fair visit, the tasks performed at trade fairs, etc.
16
A comparable cluster analysis
17
has shown that visitors – at technical fairs - can
be differentiated into four types:
? Type A: ?Intensive trade fair user?
? Type B: ?Special-interest trade fair user?
? Type C: ?Trade fair stroller?
? Type D: ?Pragmatist?
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
16
Cf. Ueding, Ralf, Management von Messebeteiligungen – Bericht auf der Basis einer empirischen Un
tersuchung, in: Meffert, H.; Backhaus, K. (ed.), Messemarketing im Wandel – Status quo und Perspektiven,
Muenster 1997, pp. 34.
17
Trade fairs and trade fair visitors in Germany Spiegel Verlagsreihe page 126 ff.
Slides 38
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Type C: ?Trade fair stroller?
? Uses trade fairs primarily as an instrument to observe the market
? Has little contact with exhibitor personnel and does not intend to buy
Type D: ?Pragmatist?
? Does not have any specific aim such as transacting business or
making a purchase
? Is very passive, seldom stays for more than a day and is oriented
to other sources of information
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
Slides 39-42
Type B: ?Special-interest trade fair user?
? Prepares in advance and uses the visits intensively, carefully considering
products or services
? Does not transact business directly at the fair
Type A: ?Intensive trade fair user?
? Utilizes trade shows as an important source of information,
particularly for current market developments
? Is highly communicative, uses trade fairs for serious networking
? Attends 21 exhibitions on average per year and every visit is planned
in detail
? In contrast to the other types, they tend to complete a sales transaction
during the fair
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The reasons why these functions can be successfully fulfilled are:
? Exhibitions are lowering transaction costs
1
The main reason for the existence of trade fairs can be found in the lowering
of costs per transaction. Such costs can arise from factors such as search
for information, contracting, legal advice, insurance, and competition moni-
toring. A cost reduction is gained by the concentration of providers and at-
tendees in one location at one time.
? Exhibitions represent a neutral sales area
Trade shows are held at a location which is neither the home territory of the
exhibitor nor of the visitor. The venue is a neutral area that makes it easier
for the visitor to freely select from a pool of information offers, with no com-
mitment. Both visitor and exhibitor are freed from interferences by daily
company duties.
? However, there is also a so called ?conditional location pull?
2
In many cases, a prerequisite for the usage of demanded services is that
they can only be consumed at the place of their production. Due to this, the
customer is forced by a conditional location pull, meaning that he is drawn
the place of manufacture. During the time of globalization, nowadays the
discussion again arises of whether trade shows should be held where the
industry manufacturing takes place or where the demand is located. A third
opinion declares neither as relevant. The future development will show
which option the exhibition industry will follow.
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
1
Cf. Anderson, E. Transaction Cost Analysis and Marketing, Transaction Cost Economics and beyond,
Boston , 1996
2
Cf. Unger-Firnhaber, Anne E., Pull Strategies for Parts and Components Suppliers in Business to Business
Markets, Dissertation, Sank Gallen 1996
Slide 43
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Disadvantages of exhibitions
A distinguishing feature of trade fairs is their limited availability.
3
Four dimensions can be identified:
? The date and the place is fixed by the organizer and cannot be moved at the
demand of an individual participant;
? Some fairs have appointed times by tradition. They often have been fixed
according to industry innovation cycles. Other organizers date their exhibi-
tions following the buying season of the industry;
? Sometimes important exhibitor groups are able to apply considerable pres-
sure on the organizers because of the importance of their attendance;
? Due to this, other marketing activities must be adapted to the fixed trade fair
participation, whose dates have to be considered, especially for advertising
campaigns connected with the trade shows. The limited availability also ap-
plies to other marketing instruments: e.g. advertising, TV or radio campaigns
take place at fixed dates and have a limited circulation.
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
3
Cf. Unger-Firnhaber, Anne E., Pull Strategies for Parts and Components Suppliers in Business to Business
Markets, Dissertation, Sank Gallen 1996
Slide 44
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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The following charts demonstrate how the economic network produces bene-
fits for different players in the exhibition industry. The following networks are
described on the following pages:
• Network – trade fair organizing company
• Network – exhibitors
• Network – visitors
• Network – region
An exhibition organizer places orders, pays taxes and invests in the infrastruc-
ture of exhibitions (1). Beneficiaries are the regional businesses,
the local government, and trade companies (2).
To organize and support trade shows employees are needed (3). Exhibitors are
also provided with personnel from the region (4). Wages, jobs and work places
are established (5). These efforts lead to income in the region and/or the city
(6). Personal expenditures multiply the beneficial impact.
4
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
4
Meeting Strategies, in:
http://www.businessweek.com/adsections/2003/pdf/0343meetings.pdf
Network – trade fair organizing company
Slide 45
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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Network - exhibitors
Resident and non resident exhibitors pay registration and other fees to the or-
ganizer (1). They place orders, buy personal goods, pay taxes, rent cars and pay
for accommodation (2).
They employ temporary staff (3) and contribute to the exposition with infor-
mation, incentives and sales orders (4).
Beneficiaries, for example, are the organizer, employees from the region, retail
companies, handicrafts, hotels, restaurants, transportation, entertainment
and local government (5).
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
This chart shows the benefits which arise from exhibiting companies in a regi-
on where trade shows take place.
Slide 46
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REMARKS
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Network - visitors
Another group which contributes to the region‘s benefits are the visitors who
stay one day or more at the trade show.
Resident and non resident visitors pay admission fees to the organizer (1).
They acquire services, buy personal goods, pay taxes, rent cars and pay for ac-
commodation and restaurants (2).
They contribute to the exposition with information, incentives and sales orders
(3). In return they get a market survey, information about products and services
(4).
Beneficiaries, for example, are the organizer, retail companies, hotels, restau-
rants, transportation companies, entertainment and local government (5).
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
Slide 47
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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Network - region
The following impacts are often underestimated. The region where the trade
shows take place benefits from the shows itself.
Exhibitions, trade shows and consumer shows help to develop the town's im-
age (1). The exhibition venue/region becomes well known.
The region and its businesses profit from information and incentives (2).
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
Slide 48/49
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
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Spin-off Effect—Multiplier Effects
The benefit of trade fairs is not only restricted to the direct participants.
The spin-off effects also include the indirectly related players.
? firstly, the authorities profit from taxes paid on economic activities
related to trade fairs
? secondly, all hospitality service providers profit from an exponential rise in
demand, especially the accommodation industry, transportation companies,
restaurants and other purveyors of food and beverage
The multiplication effect increases the gain - taxis consume more fuel, petrol
stations benefit, et cetera. Additional money earned by employees and other
workers will be spent in further consumption and the catchment area.
5
Bologna region
100 km
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
5
An example see: Klimecki, R. G., Nittbaur, G., Regionalwirtschaftliche und strategisch Analyse der
Messe Friedrichshafen, Projektbericht, Konstanz, Friedrichshafen 1999
Slide 50/51
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Linkages and multiplier effects are used to explain the relationships between
an industry and the creation of wealth in an area. Linkages describe the rela-
tionships between industries, and the sales multiplier effect measures the di-
rect, indirect, and induced effects of an extra unit of visitor spending on eco-
nomic activity within a host community. It relates visitor expenditures to the
increase in business turnover that it creates. As a result more jobs are created
and the overall image and wealth an area improved.The following rough figures
are calculated to estimate the monetary effects of exhibitions.
6
How to read:
One euro paid to the exhibition organizer for admission or for exhibitor fees
leads to expenditures of 7 to 10 euro in other economic sectors of the region.
The more the economic infrastructure of a region is developed, the more
expenditures remain in the region of the exhibition.
In this way other enterprises, private persons, the region, state or the city profit
from the exhibition and the corresponding events.
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
6
Further aspects concerning mega-events see Teigland, J. (1999, December). Mega-events and impacts on
tourism: The predictions and the realities of the Lillehammer Olympics. Impact Assessment and Project Ap
praisal, 17(4), 305-317. See also Ritchie, J.R.B., & Smith, B.H. (1991, Summer). The impact of a mega-event
on
1,0 € 7,0 - 10,0 €
Slide 52
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Media comparison:
Advantages of the marketing tool "participation in exhibitions?
Managers from industrial enterprises in Germany were asked to evaluate which
communication instrument worked best to reach certain targets. They could
grade their answers between 1=excellent and 6=very poor. Below the results
of the comparison between "Participation in exhibitions" and "Classic advertise-
ment" are shown.
7
III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
7
Cf. Spryss, Wolf M. Spryss, Messe Institut, Laubenheim 2004
Slide 53
Classic advertisement
Participation in exhibitions
© UFI - The Global Association of the Exhibition Industry
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REMARKS
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Exhibition Venues - The Global Situation
1062 venues (with a minimum of 5000 sqm of indoor exhibition space) were
identified for the year 2006 and their total indoor exhibition space reaches
27.6 million sqm.
Europe and North America, followed by Asia offer the highest venue capacities,
with respectively 44%, 34% and 12% of the total number of venues, and 52%,
26% and 14% of the total indoor exhibition space.
In terms of countries, five (USA, Germany, China, Italy and France) account for
58% of the total world indoor exhibition space.
8
Venues and Indoor Exhibition Space in 2010
and growth since 2006
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
8
UFI (http://www.ufi.org/media/publicationspress/2007_ufi_world_map_of_exhibition_venues.pdf)
Slide 54
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
REMARKS
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Europe
The European Union represents 30% of the world GDP in 2008 (source: IMF).
Because of the many years of experience, especially in Western Europe,
more than 50% of the worldwide exhibition space is available in these coun-
tries; 465 exhibition centres offer space of 14.3 million sqm (source: CERMES,
University Bocconi, Milano).
The leading countries in Europe are Germany with 3.1 million sqm space, fol-
lowed by Italy (2.1 million sqm) and France (2.0 million sqm). The leading ven-
ues are Hanover Messe, Fiera Milano and Messe Frankfurt.
The key figures of exhibitions, exhibitors and visitors show the importance of
the European market. The Center for Research on Market and Industries at
Bocconi University collects these data regularly.
For 2008 figures are as follows:
The international exhibitions (mainly devoted to business visitors)
cover the following industry sectors:
? industry and technologies (14%)
? apparel, textile and fashion (13%)
? leisure and sport (11%)
? food and catering (8%)
? communication and office supplies (8%)
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
2008 estimated Total Of that:
International
Exhibitions 10.800 800
Exhibitors 1.360 million 430.000
Foreign exhibitors 164.000 239.000
Visitors 150 million 43 million
Organizers‘ headquarters
in Europe
1.500
Organizers also running ex-
hibition centres
300
Slide 55
© UFI - The Global Association of the Exhibition Industry
Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
REMARKS
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North America
The US is the world‘s largest economy. Nearly 25 % of the world GDP
(source: World Bank, 2008) is produced in the US. The leading industries
including petroleum, steel, motor vehicles, aerospace, telecommunica-
tions, chemicals, electronics, food processing, consumer goods, lumber
and mining are responsible for this outstanding economic output. Canada
contributes 2.5 % to the world GDP.
The North American exhibition industry can be characterised as follows:
? 359 venues exist and offer 7.1 million sqm indoor exhibition space
(source: UFI 2007)
? The biggest venue is located in Chicago with 248,000 sqm (McCormick
Place) exhibition space
? Las Vegas designates app. 370,000 sqm
? App. 70% of the venues are in public ownership
? Due to the history of the exhibition industry most of the organizers are
associations
? The industry is partly fragmented. There are many ?small? organizers
with only one or two shows
? The trade shows are national orientated.
Tradeshow Week, a subsidiary of Reed Elsevier, annually publishes the
figures of the 200 most important shows in the US. The key figures for
2008 are as follows
The International CES Consumer Electronics Show is one of the largest
shows in the US. It rents ca. 170 000 sqm indoor space annually. 24.5 %
of the 200 largest events take place in Las Vegas.
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
2008
Number of exhibitions 200
Net space sold (sqm m) 6.62
Number of exhibitors 200 257
Number of visitors (m) 4.6
Slide 56
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
REMARKS
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Asia
The Asian market for exhibitions is varied. Several regional
exhibition markets exist because of the geographic extension of the region.
The most important are:
? China and Hong Kong
? Singapore
? Japan
? Korea
? India
The development of the markets is different. China, Singapore and Korea
show extensive progress while India is developing slowly. Statistical data are
difficult to research as neither uniform definitions and standards nor a general
obligation to audit the shows exist. UFI members, however, are obliged to au-
dit "Approved events", thus ensuring visitors and exhibitors of declared quality.
Trade fair markets by estimated net square metres sold, 2008
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
14.3 million sqm of space was sold by trade fair organizers to their clients in
Asia in 2008. Of that total, almost 53% was sold in China, an increase com-
pared to 2007. Among the 1,793 trade fairs included in the BSG database, 853
or 47.5% were held in China and Japan.
9
9
http://www.ufi.org/media/membersarea/studies_reports/2009_bsg_report_summary_and_order_form.pdf
Slide 57/58
© UFI - The Global Association of the Exhibition Industry
Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
REMARKS
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Number and size of international exhibition centres in Asia, end 2009
10
10
UFI (Trade Fair Industry in Asia 2nd edition)
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
The dominance of the Chinese exhibition industry is illustrated by the following
diagram. 61 exhibition centres or 57% of the Asian centres are located in China.
If you consider the gross indoor space, even 2/3 of the indoor hall capacity sqm
is offered in China.
Slide 59
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The Chinese organizers are responsible for nearly half of the exhibition space
rented in Asia.
China: Market of the future for exhibitions
Trade fair markets by estimated net square meters sold, 2008
11
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
The exhibition market in China has been growing fast for more than six years
and the continually expanding number of high-quality venues opens up oppor-
tunities for organizers in second and third tier cities in China.
Significant challenges arise from a highly fragmented exhibition market with a
large number of trade fairs with similar names and similar themes competing
for business in the same local markets. Experts expect a wave of consolidation
to play out over the next several years in China.
China as a percentage of Asia‘s total exhibition space
11
11
UFI (The Trade Fair Industry in Asia, 2nd Edition)
Slide 58-60
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In 2008, the formal exhibitions held in China exceeded 3000, with direct reve-
nues of 14 billion Yuán (2 billion USD). The revenues of related industries were
about 130 billion Yuán (18.6 billion USD), realizing excellent economic and
social benefits.
As far as the exhibition scales and strengths are concerned, Beijing, Shanghai
and Guangzhou had been the center cities of Chinese conventions and exhibi-
tions, with the market shares accounting for 10 to 20% of the whole market
shares.
China is the country with the largest population in the world and huge market
space and consumption potentials. Compared with the annual hundred billion
USD convention and exhibition market in the world, the Chinese annual con-
vention and exhibition industry with a scale of over two billion USD scale has a
large potential of growth. This growth potential needs to be explored for the
investors regardless of the convention and exhibition industry or its related in-
dustries.
12
12
China Research & Intelligence
Shanghai Skyline
Dale Ellerm (http://www.flickr.com/photos/dale_ellerm)
III. Benefits of Exhibitions
B. The Exhibition Industry in the world
Slide 61/62
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REMARKS
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III. Benefits of Exhibitions
B. The Exhibition Industry in the world
Russia
The Russian exhibition industry has available 640,000 sqm of exhibition space
available. It is highly concentrated in Moscow, where 65% of all Russian exhibi-
tions take place and more than 80% of the international shows. St. Petersburg
is another important trade fair city. The construction of modern exhibition cen-
tres is planned in the following regions – St. Petersburg, Novossibirsk, Krasno-
dar and Yekaterinburg.
The main exhibition sectors in Russia include construction, transport, manufac-
turing, mining, food and drink.
The number of organizers is estimated to be 650. This shows the fragmenta-
tion of the industry. Some big players dominate the market.
Slide 63
Lenexpo St. Petersburg
today and tomorrow
http://www.lenexpo.ru
Crocus Expo Moscow
tomorrow
http://www.crocus-expo.ru
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REMARKS
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Decision making of exhibitors: Media comparison
Organizations use different communication instruments to reach their marke-
ting objectives. To make the decision, of which instruments (see chart below)
to use, it is important to know how effectively each instrument works. The eva-
luation of all communication tools concerning marketing objectives leads to the
following ranking. The "participation in exhibitions" ranks as the No. 1 tool
(2.22). Personal selling follows. Both instruments emphasize face-to-face com-
munication. The other instruments are less effective.
13
Investment and buying decisions have to be carefully prepared. The intervie-
wees were asked which information sources they use for preparation of these
decisions.
Nearly half of the deciders use the internet. Trade shows and exhibitions (43 %)
are another important source followed by the trade press (32 %) and ?mailings,
brochures and catalogs? (32 %).
III. Benefits of Exhibitions
C. Importance for Exhibiting Enterprises
0 10 20 30 40 50 60
Internet
Trade shows/Exhibitions
Trade press
Mailings, brochures,..
Field service of supplier
Special presentations by suppliers
Radio and TV
Other
13
Cf. Anonymous, Trade Fairs and Trade Fair Visitors in Germany, Hamburg 1992, pp. 126 -131.
Slide 64
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Advantages of trade fair participation for exhibitors
What are the reasons for such a high ranking of exhibitions?
If we look at the peaks of the evaluation there are three major advantages.
These are:
? to introduce new products and services
? to initiate sales
? relationship management with known and future customers.
Exhibitions are of high public interest. Important sellers and buyers visit a
show. Media representatives use the events for publishing news about prod-
ucts and trends. Therefore trade fairs are useful for product launches. Because
of these reasons sales are initiated, too. There is a so-called ?transposing-and-
delay effect?, which means an exhibitor may realize a turnover from a show
more than 12 months after the closure of a show, particularly at an industry
show.
Face-to-face contact provides the opportunity to directly address potential cli-
ents. Within the company's Customer Relationship Management (CRM), trade
fairs are important tools to build up confidence. They are used together with
other marketing tools, e.g. the internet, direct marketing, personal selling.
Trade fairs offer the chance to promote the company and analyse the competi-
tion. In this way, the existing high public interest can be used to meet objec-
tives such as image-building, positioning and brand recognition. Trade fairs of-
fer further advantages to business people, chiefly the ability to network within
the industry while achieving major marketing goals.
14
III. Benefits of Exhibitions
C. Importance for Exhibiting Enterprises
14
Cf. Kerin, Roger A. and William L. Cron. 1987. "Assessing Trade Show Functions and Performance: An
Exploratory Study." Journal of Marketing 51 (July): 87-94.
Slide 65
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Steinbeis Transfer Centre „Exhibition, Convention and Event Management? at the Cooperative State University, Ravensburg, Germany
REMARKS
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Types of Exhibitors
The following cluster analysis of exhibitors shows that there are various ap-
proaches, objectives and priorities which determine different types of exhibi-
tors:
15
? Cluster I: ?Hard sell exhibitors?
? Cluster II: ?Communication-oriented relationship-managers?
? Cluster III: ?Competition-oriented representatives?
? Cluster IV: ?Hybrid exhibitors?
? Cluster V: ?Ambitious regional exhibitors?
Cluster I: ?Hard sell exhibitors?
This group of exhibitors
? is completely focused on meeting targets
? prefers specialist trade shows with a homogenous group of exhibitors,
where direct selling is common
? includes goals achieving a set turnover, as well as remaining within the
budget, especially in comparison to participation in other events
The larger the company, the higher the tendency to monitor the competitors.
III. Benefits of Exhibitions
C. Importance for Exhibiting Enterprises
15
Cf.Küffner, Georg, Mortsiefer, Joachim, Messeplatz Europa.
Messen als Bestandteil des betrieblichen Marketings, Frankfurt 1990, p. 18]
Slide 66/67
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Cluster II: ?Communication-oriented relationship- managers?
? Aim their efforts primarily at implement-
ing communication objectives
? Prefer international trade fairs that are ac-
companied by other events, all of which
are informational in nature
? Aim to demonstrate their ability to solve
problems
? Priority is given to analysis of protocols of
conversation and structural composition
? They are strong adherents of Customer
Relationship Management techniques
(CRM)
Cluster III: ?Competition-oriented representatives?
? Are only rarely concerned with specific
goals
? Prefer a position within a heterogeneous
group of exhibitors and most often partici-
pate in national and regional trade fairs
? Are willing to compete and watch rival
activities closely, often adopting their
tactics, especially stand design
? Success is measured in terms of visitor numbers.
III. Benefits of Exhibitions
C. Importance for Exhibiting Enterprises
Slide 68/69
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Cluster IV: ?Hybrid exhibitors?
? Do not set extraordinary goals, although
employee motivation as a goal is com-
mon
? Tend towards international trade shows
because of their informational nature
Cluster V: ?Ambitious regional exhibitors?
? Aim at merchandising their goods (emphasis on product-policy)
? Are very interested in creating a positive image
? Are also very ambitious at evaluating success and comparing the effective-
ness of marketing tools
III. Benefits of Exhibitions
C. Importance for Exhibiting Enterprises
Slide 70/71
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IV. Integrated Exhibition Marketing
A. Information Sources
There are a number of reliable sources which distribute information about trade
fairs. Many countries support their industries. Information on where and how to
participate in trade fairs is often available from the responsible government
body or from the national Chambers of Industry and Commerce.
The following information sources can be used:
? Trade fair companies and event organizers
? Chambers of Industry and Commerce
? Chambers of Industrial Crafts
? Trade associations
? International databases
? National and international auditing companies
(i.e. companies which audit statistical data of trade fairs)
? National associations of the exhibition industry
UFI, the global association of the exhibition industry
UFI is the association of the world's leading tradeshow
organizers and exhibition centre operators, as well as the major national and
international exhibition associations, and selected partners of the exhibition
industry. UFI's main goal is to represent, promote and support its members
and the exhibition industry worldwide.
By promoting the unique characteristics of trade fairs, UFI:
? Provides an efficient networking platform where professionals of the ex
hibition industry can exchange ideas and experiences;
? Promotes trade fairs and exhibitions globally as a unique marketing and
communications tool;
? Provides its members with valuable studies and research regarding all
aspects of the exhibition industry;
? Offers educational opportunities and a variety of professional seminars;
? Deals with issues of common interest to its members through regular
meetings of its regional chapters and thematic working groups.
Slide 73/74
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IV. Integrated Exhibition Marketing
A. Information Sources
UFI represents 535 member organizations in 83 countries around the world.
844 of its members‘ exhibitions have earned the UFI Approved Event quality
label.
UFI members are currently responsible for more than:
• 4,500 exhibitions, most of them being international;
• 50 million square metres of space rented annually;
• 1 million exhibitors each year;
• 150 million visitors annually;
• 12 million square metres gross rentable exhibition space.
1
SISO
In 1990, 12 independent show producers felt the need to
discuss industry issues as they related to the for-profit
organizer. This group, representing the leading independent shows decided to
form an association of like-minded show producers that would be dedicated to
meeting the needs of the for-profit show producer. That was the formation of
SISO – The Society of Independent Show Organizers.
If there is one body that encompasses the influence and strategic thinking of
the for-profit trade show industry, one will find it at SISO, the only place where
presidents, owners, and CEOs of for-profit show producer companies meet,
exchange ideas, share experiences, launch industry-wide projects, and learn
from each other. SISO today represents more than 160 member companies
that range in size from smaller hotel meetings and exhibitions, to companies
with billion dollar global portfolios... and these exhibitions represent just about
every industry sector.
SISO members produce more than 3,000 events globally including trade and
consumer shows, industry and targeted conferences, and other face-to-face
events. Members operate and own their own shows as well as manage shows
for others. SISO members are diverse in size and scope.
1
http://www.ufi.org
Slides 75
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IV. Integrated Exhibition Marketing
A. Information Sources
The mission of the Society of Independent Show Organizers is to meet the
needs of CEOs and senior management of for-profit show producers in an en-
vironment where strategic and tactical decisions can be implemented to maxi-
mize their profit potential by providing:
1. Peer networking opportunities
2. Education
3. A consolidated voice to customers, suppliers, educational institutions and
government bodies, whether independently or in cooperation with other
industry associations
4. Research, white papers, industry trends, and best practices
in the events industry
2
IAEE
The International Association of Exhibitions and
Events (IAEE), formerly the International Association
for Exhibition Management (IAEM), is a trade associa-
tion established to promote the growth and expansion of the world wide exhi-
bition industry. This includes professionals who organize, conduct, and support
trade shows, exhibitions, meetings, and events at private and public venues.
IAEE accomplishes its mission through education and advocacy programs that
serve more than 6,000 members in 52 countries. In addition to hundreds of in-
dividuals, IAEE's serves partner vendors and service organizations that have
business interests in the exhibition industry.
IAEE was founded in 1928 as the National Association of Exhibition Managers,
to represent the interests of trade show and exhibition managers.
IAEE promotes the unique value of exhibitions and other events that bring
buyers and sellers together such as road shows, conferences with an exhibiti-
on component, and proprietary corporate exhibitions. IAEE is the principle re-
source for those who plan, produce and service the industry.
3
2
http://www.siso.org
3
http://www.iaee.com
Slide 76
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? Expo-Online-Databases Germany, USA and Asia
There are several databases available providing information about trade fairs.
Click on the company name for access to their database.
? Asian Sources (www.asiansources.com):
Database for Asian exhibitions. Additional information about new products,
Online-Product research, direct contacts to producers, exporting and import-
ing companies. Co-operation with ?Trade Show Central?.
? AUMA (www.auma.de):
Database for both german and international exhibitions
The AUMA database provides detailed statistical information about trade fairs
in germany and foreign trade fairs organized by German companies.
? Exhibitions round the world (www.exhibitions-world.com):
Asia-database. 86 research categories. The following information is available
online: Export and exhibition guide, directory of exhibition companies, stand
constructing companies and hotels.
? Expobase (www.expobase.com):
Large database of German and foreign exhibitions. Leads to information about
stand constructing companies, hotels, services, forwarding trade.
? Expoweb (www.expoweb.com):
Expo-database of US expositions with 78 industrial segments, alphabetic reg-
istration.
? Trade Show Central (www.tscentral.com):
Database of more than 30,000 worldwide registrated exhibitions; less infor-
mation. Additional information can be ordered by e-mail. Co-operation with
?Asian Sources?.
? The Trade Show News Network (www.tsnn.com):
Database of US exhibitions with research within 108 industrial segments.
Newsletter free of charge with tips about exhibitions and marketing. Online-
booking of hotels, tickets and car-rental. Experts answer questions about exhi-
bitions and marketing. Monthly online answering of questions.
IV. Integrated Exhibition Marketing
A. Information Sources
Slide 77
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IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
Trade fairs are multifunctional:
? they can be mixed with separate instruments and can hardly be seen as
independent without overlapping with other tools, such as advertising
or promotion
? must be integrated into a company‘s strategic marketing concept, and
adjusted to the other marketing tools
? all other marketing instruments must be adapted to the fair participation
and repeatable, because ?Trade show participation is too expensive to
be limited to the exhibit alone?
4
The importance of specific communication tools and media: n=502 exhibi-
tors (source: AUMA 2010)
4
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason ,
Ohio : South-Western, 2002, p. 379.
Slide 78/79
AUMA, the German association of the exhibition industry, regularly conducts a
survey about the use of the actual and future use of trade fairs by representati-
ve German enterprises. The latest questionnaire of 2010 contained a question
about the importance of different communication tools.
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IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
Slide 78/79
The company‘s internet presence was classified as the the most important
communication tool (90%), followed by trade fairs and exhibitions (83%)
and the company‘s customer relations in the field service (76%). Two of
these tools focus on personal contacts. A less important group of marke-
ting instruments includes: Direct-Mail (57%); advertising in professional
journals (53%), public relations (44%), product sales via internet (42%),
other events (e.g. roadshows, 41%) and presentations at congresses
(36%). The other communication tools are of minor importance (e.g. adver-
tiseing: outdoor, using other internet tools, in newspapers, canvassing,
sponsoring, TV and radio).
Trade shows and exhibitions link to business:
? Product policy
? Distribution policy
? Contract policy
? Promotion policy
Trade fair participation can be regarded as a stand alone communication
tool or as a complement to other marketing tools. Trade shows require a
combined input of different communication tools. Many other marketing.
instruments: e.g. advertising, public relations, promotion, have to be used
to successfully participate at the trade show.
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Product policy
Product policy is of little importance for the participation in trade shows.
Exhibitors who are using trade shows as an independent distribution channel
combine products and services to get a special fair package. This package is
sold as a unique offer, only available at the trade show.
To match the trade show nomenclature which is allowed by the organizer, the
exhibitors must select corresponding company products.
5
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
5
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason ,
Ohio : South-Western, 2002, pp. 317-330.
Slide 80/81
Trade fairs and exhibitions:
Relations to marketing tools
Product policy (mix)
? Quality
? Assortment
? Brand
? Service
Exhibition assortment
Trade fair
Contract policy (mix)
? Price
? Credit
? Rebates, discounts
? Cash discounts
? Terms of a contract
Communication policy
(mix)
? Public Relations
? Personal Selling
? Advertising
? Sales Promotion
Exhibition-Communication
? Stand-Conception
? Exhibition Advertising
? Direct-Marketing
? Exhibition PR
? Event-marketing
? Personal selling (visitors)
? Co-operation for
communication
(Exhibitor/organizer)
? IT-Marketing
? Distribution policy
(mix)
? Channel of distribution
? Logistics
? Fairs and Exhibitions as
a stand-alone
distribution channel
? Placement within the
exhibition hall
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Distribution policy
Distribution can have two purposes for exhibitors.
In some market segments trade shows are used as a unique distribution chan-
nel and play an important role in selling the company‘s products (e.g. the jewel-
lery and watch industry).
The placement of the exhibitor‘s booth in the exhibition area can be regarded
as a distribution decision as well. The right placement – high frequency of visi-
tors – will influence the individual success of the exhibitor.
6
Exhibitor?s booths at BASWELWORLD, Basel, Switzerland
http://www.baselworld.com
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
6
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason ,
Ohio :
Trade fairs and exhibitions:
Relations to marketing tools
? Distribution policy
(mix)
? Channel of distribution
? Logistics
? Fairs and Exhibitions as
a stand-alone
distribution channel
? Placement within the
exhibition hall
Slide 82
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Contract policy
To motivate customers to visit the trade show and to buy products and ser-
vices there is the possibility to offer special trade show prices to the visitors.
They get discounts depending either on their exhibition presence or on the
product quantity bought. Sometimes special terms of payment are offered. Vis-
itors might postpone regular purchases to take advantages of the reduced pric-
es.
7
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
7
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason , Ohio :
South-Western, 2002, pp. 331-356.
Slide 83
Trade fairs and exhibitions:
Relations to marketing tools
Contract policy (mix)
? Price
? Credit
? Rebates, discounts
? Cash discounts
? Terms of a contract
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REMARKS
59
Communication policy
The participation in trade fairs is first and foremost a communication or
promotion tool, to promote products, services and brands. On the follow-
ing pages the specific communication tools used for the exhibition partici-
pation are described:
8
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
8
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason , Ohio:
South-Western, 2002, pp. 370-380.
Slide 84
Trade fairs and exhibitions:
Relations to marketing tools
Communication policy
(mix)
? Public Relations
? Personal Selling
? Advertising
? Sales Promotion
Exhibition-Communication
? Stand-Conception
? Exhibition Advertising
? Direct-Marketing
? Exhibition PR
? Event-marketing
? Personal selling (visitors)
? Co-operation for
communication
(Exhibitor/organizer)
? IT-Marketing
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Stand Conception
Several experts are necessary to complete an attractive and informative booth:
e.g. experienced architects, stage designers, graphic artists, craftsmen, and
booth builders.
? A booth concept is a three dimensional way of promoting a firm. Colours,
light, design and audio-visual techniques are used to present products
and services.
? The pictures show different ways of using the possible design elements.
As the stand-conception is unique compared to other marketing tools,
it is introduced in more detail in Chap. V.D ?Stand Impact?.
IF communication design 2009 awarded fair stands
http://www.ifdesign.de
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
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Trade fair communication activities
? An advertising campaign
9
can be used to announce a company‘s trade show
participation and to invite special target groups.
Direct marketing has to be regarded as a corresponding tool to motivate
customers to visit the trade show.
? Trade fair - Public Relations:
10
Depending on the company‘s significance different public relations instru-
ments can be used: press conference, press kits, press interviews. These
tools help to announce the company‘s participation, to promote new prod-
ucts and to improve the firm‘s image.
? Marketing events
11
can be used as additional attractions. They are realized
either at the booth or can be organized outside the exhibition area. Market-
ing events help to produce emotions and support the efficiency of the use
of the other tools.
? Personal selling:
12
Trade shows are a special tool to build up relations and to have personal
contacts to actual or prospective customers. As exhibitions are predestinat-
ed by the face-to-face contact to customers, customer relation management
can be practiced personally and directly.
? Co-operation for communication
13
The organizer‘s and exhibitor‘s interests
are equal concerning the promotion of visitors. The more quality visitors pre-
sent at the trade show, the better for both parties. Therefore organizers offer
different material which can be used by the exhibitor: e.g. brochures, leaf-
lets, area plans, free entry tickets.
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
9
Mason , Ohio : South-Western, 2002, pp. 632-638.
10
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason,
Ohio : South-Western, 2002, pp. 641-643.
11
Cf. Goldblatt, Joe Jeff; Special Events, 2nd edition, John Wiley & Sons, New York et al. 1997, pp. 6-10.
12
Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason,
Ohio : South-Western, 2002, pp. 638-639
13
Cf. Goldblatt, Joe Jeff; Special Events, 3rd edition, John Wiley & Sons, New York et al. 2002, pp. 261-275.
Slide 86
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IT-Marketing
? During the last years IT-Marketing has become a very successful tool to
contact potential customers and to open new markets.
Organizers offer special websites where the exhibitors are able to pre-
sent their products and services.
? There should be a newsletter to announce the participation. Before and
during the participation the exhibitor informs his customers and other tar-
get groups about special events at the trade fair.
? A label signet which announces the participation should be attached to
every outgoing e-mail in a digital form.
14
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
14
Cf. Goldblatt, Joe Jeff; Special Events, 3rd edition, John Wiley & Sons, New York et al. 2002, pp. 275-276.
Slide 87
E-Mail Marketing Kit
http://www.flickr.com/photos/johnonolan
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IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
Slide 88/89
New Media - Word of mouth and user generated content
Surveys conducted both in Europe and in the USA show that word of mouth is
one of the most commonly used sources of information to decide whether to
take part in an exhibition or not (by exhibitors and visitors), both for B2B and
B2C exhibitions
The exhibition industry has been affected by the development of communicati-
on models based on the new role of the consumer. The changes are driven by:
? Low interest for traditional mass media
? Increased consumption awareness
? Need for personalization and customization (e.g. iPod, Myspace,
Youtube, …)
? Development of new technologies related media (internet, blogs, virtual
communities, e-newsletter)
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IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
New Media - Viral Marketing
Viral marketing is the rapid, uncontrolled transfer of messages between indivi-
duals and existing networks of relationships: the message is conveyed by word
of mouth or the online media, such as blogs, chats and websites and is based
on the existence of a reference community to which all the interlocutors be-
long.
Advantages:
? ease of executing the marketing campaign
? relative low-cost (compared to direct mail)
? good targeting
? high and rapid response rate.
Viral marketing is new as regards the methods of presentation, but is has an-
cient origins. Fairs themselves are viral communication tools:
? based on communities comprising manufacturing companies and purch-
asing companies in a particular sector,
? have always encouraged interaction and the exchange of information
Slide 90/91
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Integrated Marketing Communications (IMC) is ?a planning process designed
to assure that all brand contacts received by a customer or prospect for a prod-
uct, service, or organization are relevant to that person and consistent over
time.? (Marketing Power Dictionary)
Integrated Marketing Communications is a term used to describe a holistic
approach to marketing. It aims to ensure consistency of message and the
complementary use of media. The concept includes online and offline
marketing channels.
Online marketing channels include any e-marketing campaigns or programs,
from search engine optimization, pay-per-click, affiliate, e-mail, banner to latest
web related channels for webinar, blog, podcast, and Internet TV.
Offline marketing channels are traditional print (newspaper, magazine), mail
order, public relations, industry relations, billboard, radio, and television.
A company develops its integrated marketing communication programme us-
ing all the elements of the marketing mix (price, place, product, and promo-
tion).
The participation in trade shows is often used as an opportunity to promote
new products and services or to announce the company‘s new marketing strat-
egy. As exhibitions are only one of several promotion tools – sometimes the
main communication tool – it is important to use all instruments well coordinat-
ed in content, design and time. This way of integration should also be used for
the announcement of the trade show participation itself.
IV. Integrated Exhibition Marketing
B. Specific Marketing Aspects
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Trade shows are useful for many company strategies: e.g. launching new pro-
ducts, opening new markets, improving customer relationships. Each potential
exhibitor has to select the right show for each purpose. Therefore he should use
as many information sources as possible. The better the information concerning
a show's quantity and quality, the better the chance for a successful participati-
on. Based on this information the exhibition manager has to define criteria and
objectives for the company‘s trade fair participation.
The following criteria are relevant:
1. Types of trade fairs available for the product segment
2. Relevance of the trade fair for the market
3. Client target group
4. Competition
5. Costs
6. Quality of the trade fair organizer
7. Basic conditions
V. Trade Fair Participation
A. Selection Criteria
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1. Types of trade fairs
- National or international exhibitions - Consumer show or trade show
In order to use trade fairs efficiently as part of the marketing mix, it is necessary
to be selective. The type of exhibition - national or international, consumer or
trade show - will be a first criterion to decide if the company's marketing strategy
and objectives can be achieved.
• If the company‘s catchment area is nationally orientated the exhibition manage-
ment should select exhibitions in which national exhibitors take part and where
mostly domestic visitors are expected.
If the company exports its products and services to foreign countries the partici-
pation in international exhibitions either of the home country or of the selected
country is recommendable. The more visitors of the foreign country are expected
to come the better the decision for the respective exhibition.
• The decision either to participate in a trade show or in a consumer show is an-
other criterion which has to be considered when selecting the right exhibition.
Consumer shows are primarily for direct selling. If the direct target groups are
primarily consumers the appearance at a consumer show is preferable.
The B2B business takes place at trade shows. As investment decisions are as a
rule middle or long term orientated the participation in trade shows for manufac-
turing goods serves to develop relations with customers and clients. The final
purchasing decisions are often made after the event (e.g. IT shows, building ma-
chinery).
Trade shows for consumer goods work differently. The visitors are retail shops or
comparable enterprises which make their purchasing decisions at the respective
show (e.g. gifts, food, bike shows).
V. Trade Fair Participation
A. Selection Criteria
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2. Relevance of the trade fair for the market:
The importance of a trade fair can be determined by different indicators:
- Presence of the market
- Recurrence of the trade fair
- Themes
- Quality of supply and demand at the trade fair
- Completeness of the permitted market segments
- Catchment area
? The presence of the market can be measured by the number and quality (i.e.
market leader) of companies representing the supply and demand of the
market segment.
? Exhibitions take place on a regular basis:
once, twice or more often during a year, every two, three years or even in
longer periods. Depending on the marketing strategy and event schedule
the right exhibitions should be selected.
? The subjects and the nomenclature of the exhibitions is of importance for
the decision to participate or not.
? The quality of supply and demand is represented by the presence of high
ranking managers and visitors. Information is available from the organizers.
? The catchment area can be regional, national or international, i.e. the visitors
are expected to come from these areas. Depending on the exhibiting com-
panies‘ targets, this criterion is of importance for the final participation
decision.
V. Trade Fair Participation
A. Selection Criteria
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3. Client target group
Exhibitors are looking for trade shows at which they can find the right visitors,
i.e. potential buyers for today‘s or future purchases. Therefore the exhibitor will
have to check the visitors of the exhibition following the criteria:
- Regional origin
- Branch
- Size of the company
- Area of operations
? A trade fair is an excellent opportunity to get in direct contact with the rele-
vant target groups. It can be more efficient than the company‘s field service.
? Therefore, the company should know whom they want to address at the fair.
The design of the trade fair participation should be created according to the
target groups.
? These can be defined based on the following aspects:
Regional origin, branch and size of the client company, the area of client op-
erations, frequency of client purchasing, and purchasing power.
V. Trade Fair Participation
A. Selection Criteria
Are Trade shows still important?
If done successfully, exhibiting at trade shows can still be a powerful way of
getting products and services in front of potential buyers in the UK and
Ireland. There are for example over 500 trade shows each year in the UK and
Ireland, and each have the potential to generate significant business in the
market. Trade shows, done well, can deliver a number of benefits:
? lead generation – buyers, distributors, agents
? market intelligence – competitor insights, market trends, innovation pre-
views
? PR exposure - media, speaking opportunities, in-show awards
? service providers – industry associations, logistics partners, marketing
http://www.austrade.gov.au/ArticleDocuments/2095/Trade-fairs-in-the-UK-and-Ireland.pdf.aspx
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4. Competition
?Wanted or unwanted?
Sometimes competition is welcome, sometimes an exhibitor avoids com-
petitors.
Following the rules of a market oriented system it is advantageous to be
present where your competitors are. However, sometimes it is desirable to
avoid direct contacts with competitors (e.g. looking for a test
market, in case of obvious competitive disadvantages).
5. Costs
Despite all the advantages of trade shows, the budget must be sufficient to
cover the participation. The exhibitor calculates a budget based on the ex-
pected costs.
There are a lot of cost types which have to be considered: e.g. stand rental,
stand design, booth provision, personnel, travel and marketing. If the budget is
sufficient the participation can be realized. If the exhibitor recognizes that the
available budget is smaller than necessary the participation has to be reconsid-
ered or cancelled.
The basic question is: Can we afford the trade fair participation?
The budget is calculated based on the expected costs and must be defined
before the trade fair participation is contracted. If the budget is sufficient the
participation can be realized; if not, the budget or type of participation must be
adapted.
V. Trade Fair Participation
A. Selection Criteria
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6. Quality of the trade fair organizer
The following criteria should be considered:
? Experience and know-how
? Marketing strategy
? Exhibition venue and accessibility
The management quality of the trade fair organizer can also influence the deci-
sion to participate. The quality of the equipment of the site, such as space, de-
sign, type of halls, open air grounds and the quality of the facilities have to be
acceptable. The experience of the organizer supports the quality of the exposi-
tion. Transport connections and infrastructure may also influence the participa-
tion decision. Is the venue centrally located (geographically); is there sufficient
accommodation available?
EXAMPLE: Experience and Know-how
Montgomery, London
Internationally recognised as a leading pioneer of B2B exhibitions, Montgom-
ery focuses on building relationships with partners and delivering specialist
buyers and sellers face to face. Montgomery‘s long established history dates
back over 100 years and all started with the Building Exhibition in 1895.
http://www.montex.co.uk/client/index.aspx?page=1
V. Trade Fair Participation
A. Selection Criteria
Slide 100
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Exhibition venue and accessibility
Hong Kong Convention & Exhibition Centre
Hong Kong is the business hub of Asia, and the Centre is at the business
hub of Hong Kong - bustling Wanchai district.
Overlooking famed Victoria Harbour, the Centre is conveniently linked by cov-
ered walkways to adjacent luxury hotels, including the Grand Hyatt Hong
Kong and the Renaissance Harbour View Hotel. Also close are the MTR -
Hong Kong's modern subway system - the airport bus, city buses and ferries,
banking, the main post office, and all the shopping and entertainment that
Hong Kong is famous for.
http://www.hkcec.com.hk/english/introduction/intro_location.php
V. Trade Fair Participation
A. Selection Criteria
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Exhibition venue and accessibility
Messe Stuttgart, Germany
Messe Stuttgart is an exhibition centre and trade fair next to Stuttgart Airport, 7 miles
south of Stuttgart, Germany. The new exhibition grounds, which were completed in
2007, are right next to the A8 autobahn (motorway). The centre can be accessed via the
local suburban railway network. Stuttgart exhibition centre encompasses seven standard
halls measuring 10,500m² and a high hall with a net display area of 26,800m² which is
also designed to cater for sports events and concerts. The exhibition centre also in-
cludes a communication and events centre, the Internationale Congresscenter or ICS,
which includes a congress hall (4900m²), a congress room (2600m²) and conferencing
facilities encompassing 25 meeting rooms. Thanks to its location between the airport
and motor-
way, the
new Trade
Fair Centre
has an in-
comparable
traffic infra-
structure.
Direct con-
nections to
the A8 mo-
torway, the
B27 trunk
road, the
airport, the S
-Bahn (rapid-transit railway) and, in future, the planned railway station for local and long-
distance trains will ensure that visitors and exhibitors will be able to travel quickly and
easily to the Trade Fair Centre.
http://www.messe-stuttgart.de
V. Trade Fair Participation
A. Selection Criteria
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7. Further conditions
? Date
? Availability of personnel
? Situation and participation objectives fit in with the theme of the trade fair
? Representative range of goods on offer
Depending on the market segment, purchasing periods should be taken into
consideration. The date of the show has to fit this specification. Because of the
internal workloads, sometimes the best booth personnel is not available. In this
case the participation should be reconsidered.
It sounds astonishing; if a company exhibits new products the customer
expects the products to be available within a particular time after the closing of
the trade show.
1
V. Trade Fair Participation
A. Selection Criteria
Trade Fair Benefit Check
An increasing number of exhibitors want to calculate the cost-benefit ratio of
their trade fair participations more precisely. However, because small and
medium-sized companies, in particular, frequently do not formulate any exact
trade fair objectives, the benefits of participations are often not determined
on a wide enough scale; the focus is thus primarily on the costs. As a result,
some companies believe that trade fair participations have an unfavourable
cost-benefit ratio.
http://www.auma.de/mnc/e/mnc-e.html
1
http://www.auma.de
Slide 105/106
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REMARKS
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Scoring procedure:
The scoring model shows a hypothetical example for choosing the right trade
fair. First of all the criteria need to be selected which are decisive for the quality
of an event from the view point of an exhibitor. Some of the most important cri-
teria are already suggested. Further criteria can be included.
? Weighing of the selection criteria. Every criterion gets a weighting corre-
sponding to the individual significance for the quality of the event.
? The trade fairs are assessed with a score between 1 and 10 per criterion. This
score shows how the quality is estimated by the exhibitor per criterion and
trade fair in relation to the competing fairs.
? Weighting and score are multiplied by each other to calculate the score
per fair and criterion.
? The scores are added up for the total assessment. The higher the achieved
total assessment, the better the assessment of the respective fair is from the
viewpoint of the targets and quality requirements of the exhibitor.
Example:
? In the attached case four fairs were judged at four different sites. The choice
and assessment has to be understood as an example.
? The trade fair in Valencia has reached the highest total score with 698 for the
hypothetic exhibitor. The other trade fairs are following.
V. Trade Fair Participation
A. Selection Criteria
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Alternatives
Appropriate trade fair
Verona, Italy
MARMOMACC
Valencia,
Spain,
MARMOL
Nuremberg
Stone+tec
Brussels, Bel-
gium,
Batibouw
Weight
w
Poi
nts
p
Product
w x p
Points
p
Product
w x p
Points
p
Product
w x p
Points
p
Product
w x p
Criteria i
Target group
28 5 140 7 196 4 112 4 112
Significance
of trade
show for
market
21 6 126 8 168 4 84 4 84
Quota of
trade
19 7 133 6 114 5 95 3 57
Booth costs
11 6 66 8 88 4 44 2 22
Catchment
area of trade
fair
15 7 105 6 90 5 75 4 60
Recurrence
(of the trade
fair)
6 5 30 7 42 7 42 7 42
Total 100 600 698 452 377
V. Trade Fair Participation
A. Selection Criteria
A (weighted) scoring model is a selection technique which is used to choose
between projects or decision alternatives. This method helps in cases where
there is no simple, single criterion to work with and a number of factors
need to be considered.
The following scoring model is based on the attached case study II. The
Russian company Kovcheg intends to participate in a European trade show.
Four shows have been pre-selected. The evaluation process results in the
selection of the favorite trade show in Valencia.
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Once a decision to participate has been made, the exhibition strategy, the exhibi-
tion style and exhibition targets have to be determined. Exhibition strategy and
style complement each other. It has proved to be helpful to follow these plan-
ning steps as the exhibition styles make it easier to decide which booth design
and which communication tools to choose for the participation.
Exhibition (marketing) strategies
6
? Within the marketing strategy it is decided which products will be offered to
which markets. The company can either present new or already known prod-
ucts. It might choose the present markets as relevant for the market offer or
new markets which are not yet opened for the company's assessment.
? If you combine the potential markets (new or known) with the type of prod-
ucts (new or known) four market processing strategies can be distinguished.
Exhibition style
7
? The concept of the exhibition style provides a guideline from which the design
elements of a booth can be chosen, and the marketing instruments can be
selected and finally applied.
? An exhibition style supports the decision making process in the run-up to the
exhibition. The management has to choose which communication instru-
ments (i.e. press conference, brochure, direct mailing, special event, banners,
advertisement) to use. The exhibition style delivers the criteria for the final de-
cision.
V. Trade Fair Participation
B. Exhibition Strategies and Styles
6
Cf. Ansoff, Harry Igor, Corporate Strategy, revised edition, Penguin, London , 1987.
7
Cf.Beier, Joerg, The Design Demands of Trade-Fair Architecture versus Commercial Calculation, in:
Schulte, Karin (ed.), Temporay Buildings, Stuttgart 1997, p. 227
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Market penetration
Customer oriented exhibition style.
Penetration of the market means that the exhibitor tries to boost sales with the
help of established products. To this end, old consumers must be motivated to
generate higher sales, while new consumers must be convinced for first time
purchases. As the application of the products is widely known, attention should
be drawn to customer care and relations. In this case, a strong customer-
oriented exhibition style is beneficial. Discussion areas where the personnel can
talk to the customers are necessary. Advertising in the catalogue, on site maps,
in professional journals as well as events at the booth (e.g. customer evenings)
are important marketing techniques.
Products /
Markets
Present products New products
Present
markets
Market penetration
Customer oriented
exhibition style
Product
development
Product oriented
exhibition style
New
markets
Market
development
Contact oriented
exhibition style
Diversification
Advisory oriented
exhibition style
V. Trade Fair Participation
B. Exhibition Strategies and Styles
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Product development
Product oriented exhibition style.
The product development strategy emphasizes the selling of new products to
acquired customers. The product has to be presented with its application possi-
bilities. This leads to a product-oriented exhibition style. Besides sales promotion
(samples, coupons and giveaways), special shows of the organizer, special
events at the exhibition hall, and direct mailing are strong marketing techniques,
which help to give the product special emphasis.
While planning the booth concept, it is important to make sure that the person-
nel have enough space for product display and usage.
Market development
Contact oriented exhibition style
If the strategy is to open new markets, the exhibitor has to gain new customers
for its products. Product, company, and brand have to be introduced at the same
time. This means that the exhibitor has to make sure that his trade fair presenta-
tion is comprehensive as well as catchy. New contacts and open communication
have to be given special emphasis.
Therefore, a contact-oriented exhibition style should be preferred. The booth
should be created in an open style, in order to invite customers to the booth. The
simultaneous promotions - advertising of the exhibitor (e.g. hand-outs), an-
nouncement advertising (in trade fair journals or daily newspapers), and outdoor
advertising (such as transportation or advertising-banners), along with sales pro-
motion (price competition, lottery, giveaways) are important steps to reach the
target groups.
V. Trade Fair Participation
B. Exhibition Strategies and Styles
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Diversification
Advisory oriented exhibition style.
The exhibitor‘s task becomes much more difficult if he diversifies his sales ac-
tivities. In this case, he cannot fall back on his experience either with known or
established markets. Beyond this, he is looking for new customers.
Application possibilities and advantages of the product should be presented
and problem awareness should be created. To achieve this, intensive consulta-
tion and contacts with experts are necessary.
Therefore an advisory oriented exhibition style should be used. For consultan-
cy it is important to have a quiet seating area. At the same time the presenta-
tion of products and brand has to be possible. One option is to divide the
booth into two floors.
V. Trade Fair Participation
B. Exhibition Strategies and Styles
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Why set targets for the participation in trade shows?
One important step in the participation concept is the definition of exhibition
targets, since efficient participation in a trade fair is only possible on the basis
of sound goals.
The organizational preparation is influenced by the set goals. After the show
they offer the possibility to check the success of the participation.
The content of exhibition targets has to be determined. This includes the defi-
nition of the target groups and the determination of the time in which the
goals should be realised.
V. Trade Fair Participation
C. Exhibition Targets
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The diagram shows the results of an empirical market research.
8
? In this questionnaire, exhibitors have declared that they set the following tar-
gets when they participate in exhibitions.
? ?To increase company image? was declared to be the most important goal for
more than 80% of the exhibitors.
? 70% of the sample emphasized „meeting new groups of customers?
and ?developing personal contacts?.
V. Trade Fair Participation
C. Exhibition Targets
8
Cf. Ausstellungs-und Messeausschuss der deutschen Wirtschaft e.V. (AUMA), Erfolgreiche
Messebeteiligung, Berlin 2002.
See also: Gopalakrishna Srinath and Jerome D. Williams. 1992. "Planning and Performance Assessment of
Industrial Trade Shows: An Exploratory Study." International Journal of Research in Marketing 9: p. 207-224.
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Targets must be operational.
This means:
9
? Measurable
? Related to a specific period
? Assigned to a responsible person or group
? Realistic
? Acceptable
Do you think that the people who have to work for the targets will accept
contents and extension of the target?
? Motivating
Are you motivated by your targets or are they a burden for you?
Economic targets / Psychographic targets
? There are different ways to determine objectives. Besides dividing aims
following the marketing mix, it is also possible to divide into economic and
psychographic goals.
? The success of economic goals is relatively easy to measure, because it is
focused on measurable data, such as the turnover, cost-reduction, expand-
ing the market share and other criteria.
? The psychographic targets mainly try to influence the attitude of the visitors.
This is important if a company tries to improve its image or wants to influ-
ence the visitor‘s view of the company. This success is invisible and there-
fore hardly measurable as it happens in the so-called black box.
V. Trade Fair Participation
C. Exhibition Targets
9
Cf. Meffert, Heribert, Ziel- und Nutzenorientierung als Postulat einer effizienten Messebeteiligung, in:
Manfred Kirchgeorg et al., Handbuch Messemanagement, Wiesbaden 2003, p. 1145-1161.
See also Cavanaugh, Suzette. 1976. "Setting Objectives and Evaluating the Effectiveness of Trade Show
Exhibits." Journal of Marketing 40: 100-103. Sharland, Alex and Peter Balogh. 1996. "The Value of Nonselling
Activities at International Trade Shows." Industrial Marketing Management 25: 59-66.
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Criteria
Contents
and Measurement
To boost sales
Number of orders
To expand sales
Total orders for goods:
with different target groups
To increase the degree of
distribution
Number of specialists
and private visitors
To aquire new market segments /
Customer groupings
Number of new customer contacts
(e.g. according to regions, sectors of
industry, sales routes)
To expand or retain the share of the
market
Sales compared to previous trade fair
To acquaint visitors with the range of
products
Number of visitors, number of old /
new customer contacts; number and
quality of initiated press publications;
number of brochures and samples
distributed.
To create / improve brand loyalty,
product awareness
Specific questioning of visitors
- Company; how well known
- Memorability of new products
- Knowledge of the brand
- Characteristics of the product
There is a rule: setting targets needs a control and the auditing of these targets.
On the left side of the following chart you find different types of targets. On the
right side the contents and measurement of these targets are described in
more detail.
How to read: if there is a general target ?to boost sales? the operational target
could be determined as: ?To raise the number of orders at the trade show from
250 to 300 orders compared to the previous show?. Auditing in this case means
just counting the orders at the end of the trade show and comparing them with
the figures from the last show.
V. Trade Fair Participation
C. Exhibition Targets
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To give an example for operational targets the following economic and psycho-
graphic targets are determined. If the Russian exhibitor (see chapter V. A
"Selection Criteria") has already participated in the trade show Marmol in Valen-
cia, the new targets could be determined as follows:
Economic targets
? To increase the number of visitors from 250 to 320 at the trade show Mar-
mol; responsible: Trade Show Department.
? To increase the number of orders from American customers (last year: 25
following year: 40); responsible: Marketing Department.
? To increase the sales of additional services by 15%; responsible: Field Ser-
vice.
? Reduction of trade show costs by 5% compared to last year‘s trade show:
responsible: Exhibition Team
Psychographic targets
? To improve the number of positive media publications by 15% from 35 to 40;
responsible: Public Relations Team
? Increase of visitors‘ share who recognize the company‘s brand four weeks
after the show; today 25%, target 35%; responsible: Marketing Department,
Marketing Agency, Market Research Team.
V. Trade Fair Participation
C. Exhibition Targets
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Objectives for trade shows: Consumer and manufactured goods
The individual participation objectives depend on the different types of trade
fairs, such as consumer goods fairs or investment (manufactured) goods fairs.
The main goal at a trade show for consumer goods is the placing of orders. The
trade visitors order goods for the following season. They do not need an authori-
zation for their purchasing decision and can negotiate the sale at the fair. It is
therefore easier to monitor and measure the success attained.
At trade fairs for investment goods, immediate orders are comparatively unim-
portant. The negotiation-process takes much more time because technical issues
must be resolved. There is a greater financial investment and a multilevel authori-
sation in the buying decision. Sometimes the investment decisions are made a
long time after the trade fair closed. The order can‘t be assigned directly to the
event. A difficulty at trade fairs for investment goods is that the success is not
properly measurable, because the focus is on image building, increasing publici-
ty, imparting information and consultancy.
V. Trade Fair Participation
C. Exhibition Targets
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The significant difference between a stand and the usual possibilities of visualiza-
tion is the enhancement from the second to the third dimension,
which also means an extension to possible presentation.
10
The booth concept is relevant for the right communication and budget policy of
the exhibitor. It also influences the exhibitors‘ logistics to get the exhibits and
material at the right time, to the right place, at the lowest costs. On the following
pages several criteria are discussed which have to be considered for the booth
assembly.
? Criterion 1: Booth types
The booth is a three-dimensional marketing tool. It represents the company
and is sensory. Customers and visitors compare the booth with that of com-
petitors at the trade show.
? Criterion 2: Alternatives of booth design
Several factors have to be considered to determine which kind of booth
should be presented at a trade fair. One of the key factors for the right presen-
tation of the enterprise is the booth design.
? Criterion 3: Booth planning and realization
The decision concerns marketing and cost aspects.
If the exhibitor plans to reuse the booth he has to decide which booth type
will be his best alternative.
? Criterion 4: Booth areas and functions
The booth consists of different areas with different functions. Corresponding
to the exhibition style, the management has to decide how the use the space:
for presentation, for consulting or for easy and frequent contacts.
V. Trade Fair Participation
D. Stand Impact
10
Cf. Schulte, Karin (ed.), Temporay Buildings: The Trade Fair Stand as a Conceptual Challenge,
Stuttgart 2000.
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Criterion 1: Booth Types
The various types of trade fair booths are
influenced by the type of space allocation
and access to the aisles.
There are four basic types of booths.
? Row booth (R)
? Corner booth (C)
? End booth (E)
? Block booth or island booth (B)
Row booth (R)
The standard row booth is designed to stand back-to-back with an opposite
row or a wall and will have adjacent booths on both sides. Only one side
(occasionally two) faces an aisle. The dimension of the open booth front is
used to distinguish a narrow, deep booth from a wide stand which is less
deep.
Corner booth (C)
A corner booth is situated at the end of a row. It provides access from two
sides, from the aisle along the row and from the one vertical to it. A corner
booth has more sides accessible to the public, but the same overall area,
and is therefore more effective than a booth located in a row. As a corner
booth can be seen from two aisles, a higher number of visitors can be ex-
pected.
V. Trade Fair Participation
D. Stand Impact
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End booth (E)
This booth at the end of a row is surrounded on three sides by aisles. It is quali-
tatively superior to the types mentioned before, as it appears more inviting and
more representative if exploited properly.
Block booth or island booth (B)
The block booth or island booth is bordered on all four sides by aisles. Since it
is accessible to visitors from all sides, it attracts a great deal of attention due to
the fact that it is completely independent from other booths.
The block booth or island booth is the most expensive type of booth. It requires
more elaborate design, which is reflected in the higher costs for booth assem-
bly and fitting.
V. Trade Fair Participation
D. Stand Impact
To reach these goals the following decisions have to be made:
? Does the company assemble the booth itself or engage
a booth construction company?
? Is the use of a system or a conventional booth convenient?
? What kind of basic design shall be used for the booth assembly?
Criterion 2: Alternatives of booth design
The booth appearance at a trade fair is a marketing challenge. The booth should
be more attractive than those of competitors. Visitors should remember the
booth, exhibits and the company‘s brand.
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V. Trade Fair Participation
D. Stand Impact
Slide 132/133
Innovative concept in stand building: examples
Designed by AAAHHHAAA with Luca Sacchi
Designed by Plotini Allestimenti for IGUZZINI
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Booth assembly
There are different ways to assemble the booth:
? The company itself is responsible for the whole design and the assembly.
In this case personnel with the appropriate know-how has to be available.
Additionally stand building material has to be ready for use.
? The exhibitor might instruct a booth building company to create the booth.
In this case the exhibiting company is responsible for the right briefing – the
guideline for the construction and the trade show appearance. The costs will
be much higher compared to an independent booth construction.
However, the service provider has know-how and special expertise concern-
ing the location and the trade show organizer.
? Some organizers offer turnkey booths which are simple system stands.
They are assembled and disassembled without the presence of the exhibitor.
This is a relatively cheap and easy solution, especially for newcomers.
Advantages for the exhibitor: No responsibility for assembly and dis-
assembly of the booth, less and clear planning costs.
Disadvantages: Limited opportunity to present the company individually.
V. Trade Fair Participation
D. Stand Impact
Slide 129
Booth assembly
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System or conventional booth
The decision to apply a system booth or a conventional design should be based
on several criteria:
? A reusable booth assembly is more cost-effective than a conventional one.
? The substantial advantages of a system assembly are: easy to transport and
store; low staff requirements during assembly and disassembly; sensibly
priced, pre-fabricated, precisely fitting components; flexibility and adaptability
? Disadvantages are: less distinction from other exhibitors;
dependency on the limited application of the system.
? Conventional or individual booth assembly is especially attractive for compa-
nies involved in construction or interior work. They have extensive knowledge
of materials and fabrication, and they have the necessary production facilities
and qualified staff.
? Conventional assembly enables highly individual designs to be realized. How-
ever, individual designs are only available at relatively high costs.
V. Trade Fair Participation
D. Stand Impact
Design principles
There are three methods of booth assembly:
? Open assembly:
No external screens that might obstruct the view. The booth is visible at first
glance. All exhibits can be identified straight away.
? Partially open assembly:
External screens are included to prevent visitors from seeing directly
into the booth.
? Closed assembly:
The booth consists of external screens (possibly with windows), making it
necessary to enter the booth in order to view the exhibits, watch demonstra-
tions and talk to the stand staff.
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Criterion 3: Booth planning and realization
The booth planning and realization stage includes several aspects:
3.1 Financial decisions
The participation in a trade fair is cost-intensive. There are three possibilities to
invest in a booth: Buying, renting or leasing.
All alternatives have to be known and compared to find the most cost-effective
solution.
The right alternative: buying, renting or leasing should be chosen according to
the individual situation of the exhibitor:
? When you buy a booth, you should consider that you have to make full use of
the booth, storage and maintenance are the company‘s responsibility.
The main advantages of buying a booth are:
? The booth can be designed more individually
? You have financial middle and long term advantages if you use the
booth often
? Renting a stand means paying for one use. In general a trade fair organizer or
a booth constructing company takes the booth back. The advantages are:
? No investment and long term binding of capital
? Short term reduction of costs
? No handling costs of the stand: logistics, storing, construction and dis-
mantling of the booth
? Leasing means a special type of finance. If the booth will be used often and
the company does not want or is not able to finance the booth in one go this
alternative is very attractive. The stand building company accepts leasing pay-
ment and will care for the booth between the different trade shows.
The main advantages are:
? More flexibility if the market situation changes
? Conservation of liquidity
? Tax advantages
? Certain calculation
V. Trade Fair Participation
D. Stand Impact
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3.2 Activities and time schedule
Trade fairs start at a fixed date. Therefore the preparation and realization of the
participation has to be carefully planned. The following plan is typical for a re-
gular participation process:
The planning procedure starts at least 9-6 months before the trade fair takes
place. The following activities should be determined by contents and time:
? Register with organizer (9 months before)
? Briefing and rough stand design (8 months)
? Planning assembly and disassembly (7 months)
? Construction of booth (6 to 2 months)
? Preparing furniture, equipment and exhibits (6 to 1 months)
? Compiling material (3 to 1 months)
? Transport of material (4 to 3 weeks)
? Assembly of booth (2 to 1 weeks)
? Handing over of booth (day before trade fair)
? Disassembly of booth
? Transportation to company
? Repair and storage
Sample Chart visualizing the planning procedure
V. Trade Fair Participation
D. Stand Impact
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Criterion 4: Booth areas and functions
Each booth consists of four areas with different functions. The principles
are described on the next pages:
V. Trade Fair Participation
D. Stand Impact
Budget Check
Deviation analysis
Calculation of coefficients
Eyecatcher
Information
Exhibits
Personnel
Counters
Seatings
Kitchen
Storage
Recreation
Area of logistics
Area of consultation
Area of presentation
Area of orientation
Corner Stand
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Area of orientation
- To gain attention, eye-catchers are used in this area;
- Towers may be used as fixed and freestanding components for identification,
e.g. by presenting the company logo.
Area of presentation
- The advantages of the product should be shown in this area;
- Products are presented by the booth personnel;
- First interaction between staff and visitor;
- The opportunity to get brief information or samples is expected by visitors.
Area of consultation
- Quiet and separated place, removed from the usual trade bustle;
- Negotiations and talks can be carried out without unnecessary disturbance;
- Ideal are cabin lounges with conference fitting;
- On average, visitors only remain 11.8 minutes at a booth, therefore this time
should be used productively.
Area of logistics
- Not used by visitors, purely functional design;
- Storage rooms, small back offices, kitchen, recreation and catering area;
- Size of this area depends on the stand size, smaller stands sometimes do not
have this area at all;
- At a larger stand the importance of the logistic area grows as these booths
can be compared to headquarters where many duties have to be coordinated.
V. Trade Fair Participation
D. Stand Impact
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The assessment of a company‘s activities is an integrated part of an effi-
cient management process.
11
At long last, after the closing of the fair, it
determines whether the fair participation was a success or not. To be suc-
cessful, however, the personnel has to work actively also during the time
after the fair.
Visitor records have been prepared, contacts have been made and many
new ideas have been collected. Now the exhibitor has to rework
these materials and contacts.
V. Trade Fair Participation
E. Follow-up Measures
The reworking
12
after a trade fair participation is the first step in the whole man-
aging process after the trade show. Three different tasks have to be focussed
on:
? The visitors at the fair have expressed special wishes which have to be im-
mediately fulfilled. This requires careful organization and planning.
? Why not publish the details and the success of the fair? The clients of the
company who haven‘t been at the trade show, want to know what has been
going on during the big event.
? The staff which had to stay at home needs to be informed about the results
of the show. This will motivate them for the future.
Reworking
Follow-up measures
Reworking of visitor contacts
External communication
Internal communication
11
Cf. Rosson, Philip, J. and F.H.Rolf Seringhaus. 1995. "Visitor and Exhibitor Interaction at Industrial
Trade Fairs." Journal of Business Research 32: 81-90.
12
Cf. Stevens, Ruth, Trade Show & Event Marketing: Plan, Pomote & Pofit, South-Western Educational
Publishing, 2005. See also: Christman, Christine, The Complete Handbook of Profitable Trade Show
Exhibiting, Prentice Hall Trade, 1991.
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The visitor records which have
been written during the trade
show contain numerous details
about the customers. This infor-
mation is the starting point of
the reworking process.
? The visitors we have to contact now can be: regular customers; Very Im-
portant Persons (VIPs; e.g. politicians, other representatives); media rep-
resentatives; other visitors (e.g. representatives from universities, associa-
tions).
The activities after the show can be:
? Sending information material;
? Preparing a tender;
? Appointment with sales staff;
? Invitation to enterprise;
V. Trade Fair Participation
E. Follow-up Measures
Reworking
Follow-up measures
Reworking of visitor contacts
Visitor groups
Activities
Specialities
There are some special aspects the exhibitor should keep in mind:
? The customer‘s requirements should be met as soon as possible. This could
for example mean that the exhibitor already starts reworking the trade show
although the trade show has not yet finished. The marketing department
sends information brochures. The sales department makes appointments
and prepares offers for the customers of the trade show. To react short
term on the customers‘ needs the staff at home has to be prepared careful-
ly. The communication process and the responsibility for the customer
contacts have to be determined in advance.
? The process of customer care has to be continued after the show. One de-
partment, or even better, one person should be responsible for further
contacts.
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The successful appearance at a trade show is a very useful opportunity
for public relations.
If there is a successful completion of a contract during or after the trade show
this is very often published and announced with a press release. The exhibiting
company is able to show its importance, to demonstrate the quality of its prod-
ucts and to demonstrate its acceptance by the customers.
Not all customers have visited the trade show. It will improve the relationship
with those non-visiting clients if they are informed about the importance and
success of the trade show. Direct mailings, but also specially prepared bro-
chures might help to develop a unique selling proposition (USP). Customer
newsletters are excellent ways to inform the clients about the importance of
the trade show. Well-informed and prepared sales staff could support these
initiatives during personal contacts.
V. Trade Fair Participation
E. Follow-up Measures
Reworking
Follow-up measures
Reworking of visitor contacts
External Communication
Public relations
Customer contacts
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One of the most important, but sometimes neglected activities, after the trade
show is to inform the staff which remained at the headquarters. As trade
shows are sometimes milestones for a market segment, all staff should be in-
formed about what is going on in the market, who new and old competitors
are, how customers assess their own products and services etc.
Reports have to be prepared to inform the different departments:
procurement, research & development, sales, management, production.
The instruments which can be used are:
? Newsletters
? Personal meetings
? E-mail reports
? Staff newspapers
? Direct mailings
? Company meetings
? Website of the company
V. Trade Fair Participation
E. Follow-up Measures
Reworking
Follow-up measures
Reworking of visitor contacts
External Communication
Internal Communication
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Trade shows combine opportunities and risks. The opportunities are meet-
ing new clients, developing a better company image and placing orders.
However, there are general business risks such as fewer contacts and con-
tracts; low turnover and a low contribution margin. These risks can be min-
imized if the planning and preparation of the participation is done correct-
ly.
13
Other external factors or incidents might influence the trade fair partic-
ipation as well:
Political Risk
? Revolutions and hostile interventions by the government;
? Unforeseen loss of a licence;
? War risk.
For example:
? Political demonstration closing Suvarnabhumi: In December 2008 the
Bangkok airport was closed and controlled by the PAD. The government
declared a state of emergency at the two airports in BKK.
14
? UBM India, a part of United Business Media had cancelled the CPhI/
ICSE/P-MEC India 2008 trade exhibition due to terror attacks in Mumbai.
The exhibition was postponed to De-
cember 2009 at the Bombay Exhibition
Centre, Mumbai
Medical Risk
? For example, infection risk by SARS,
swine influenza, bird flu
For example:
? Hong Kong Trade Development Coun-
cil and China External Trade Develop-
ment Council were forced to cancel four important industrial mega-
shows in Hong Kong and Taiwan
? Swine flu concerns have forced
Royal Adelaide Show organizers to
cancel pig exhibits in August 2009,
but pig diving will go on.
15
„Travelling with Swine Flu?
http://www.flickr.com/photos/diegocupolo
V. Trade Fair Participation
F. Risk Management
13
Cf. Tarlow, P. Event Risk Management and Savety, New York 2002.
14
http://www.ufi.org/media/pdf/seminars_presentations/porto2009/2009-ess-porto_supawan_teerarat.pdf
15
ABC Local: Tim Gerritsen
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Definition of risks
? A business risk is the danger of suffering losses. The risk height is defined
by the possible extent of the losses.
? A risk is the danger that the planned objectives can‘t be met sufficiently.
? Risks are components of every project. The underlying incidents first must
be identified to prevent the risks from endangering the success of the pro-
ject. Corresponding countermeasures are defined accordingly.
? A project risk can be qualified with regard to its loss probability, its conse-
quences and the damage caused by it.
16
Risk management
? Risk management is the systematic process of managing an organization‘s
risk exposures to achieve its objectives in a manner consistent with public
interest, human safety, environmental factors and the law.
? It consists of the planning, organizing, leading, coordinating and controlling
the activities undertaken with the intent of providing an efficient pre-loss
plan that minimizes the adverse impact of risk on the organization‘s re-
sources, earnings and cash flow.
16
Risk strategies
? Risk strategies have to be proactive to avoid risks occurring or causing
severe damages. The different risk strategies emphasize reducing the
impact, the probability, or both.
? After a process of identifying and assessing the company‘s risks, ways od
coping with the risks have to be developed. This procedure absorbs time
and costs. There are five principle strategies to manage the identified risks:
? Risk acceptance
? Risk avoidance (e.g. cancelation of activities)
? Monitoring the risk, contingency plans
? Risk reduction (e.g. setting up special emergency plans)
? Risk transfer (e.g. assurance)
V. Trade Fair Participation
F. Risk Management
16
James Carven, University of Texas
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VI . Evaluation of Participation
A. Importance of Evaluation
The assessment of the company‘s activities is an integrated part of an efficient
management process. At long last it is determined after the closing of the fair
whether the fair participation was a success or not. To be successful, however,
the personnel also has to work actively during the time after the fair.
1
As we have learned in former chapters, trade show objectives are important
preconditions to carrying out successful trade show participations. After the
show, the aims have to be audited and analyzed to determine to which degree
they have been fulfilled.
The planned budget has to be verified as well. Deviations have to be identified
and analyzed.
1
Cf. Kerin, Roger A. and William L. Cron. 1987. "Assessing Trade Show Functions and Performance:
An Exploratory Study." Journal of Marketing 51 (July): 87-94.
Return on investment (ROI)
? The perception of the success of a trade fair participation is closely related
to the ?Return on Investment (ROI)? of a show. Exhibitors should be able to
ascertain if the participation in the exhibition was "successful" or not.
? For this reason exhibitors must calculate the benefits of their participation
based on an evaluation of the resources expended (e.g. money, man-hours,
and other investments) for the participation and how much benefit they got
out of the show.
? At the present stage there are several models in use which differ very much.
Scoring models are used in which quantitative and qualitative returns are
transformed into uniform scales.
? The ?Trade Fair Benefit Check? developed by the German association AUMA
(www.auma-fairs.com) is designed to measure the benefits of show partici-
pation on a wide scale, taking into consideration the monetary equivalent
value of quantitative and qualitative returns.
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Controlling as a management task serves as the check and command of the
enterprise.
Components are: aim development, planning, realization, testing.
The check of a participation in a trade show is part of the overall controlling
process and will help:
? To optimize the marketing mix of the enterprise;
? To supervise the cost-benefit relations and
? To check and optimize the effects caused by the trade show appearance.
The measures and tests available help to check the trade show targets and can
be used during or after the show.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Tests after the show
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? Before the exhibitor checks his marketing targets the following questions
should be answered: What should be tested? Which methods should be
used? Who should be responsible for the testing? What is the budget for
the testing process? How should the measures be integrated into the time-
line and organization of the participation? How do we use the results after
the show?
? During the trade show the measures listed on the left can be used. They will
be described on the following pages in more detail.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Counting of distributed material
Counting of stand visitors
Observation of stand visitors
Interviews with stand visitors
Assessment of visitor records
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? Objective
Analysis of the information behaviour and the products‘ interest for visitors.
? Method
Calculation of the beginning and final inventories of the different materials
(e.g. give-aways, informative material).
? Assessment
Simple control instrument. Main emphases of the visitors‘ interests are rec-
ognized. Partly restricted information about perception and acceptance of
the range of products and performances at the booth.
Recommendable as an additional control instrument.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Counting of distributed material
Counting of stand visitors
Observation of stand visitors
Interviews with stand visitors
Assessment of visitor records
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? Objective
Analysis of the visitor frequency at the booth. Conclusions on the visitor in-
terest possible.
? Method
Specification of counting points. All visitors who enter the stand are count-
ed. Time period: on all days during the opening hours of the fair. To get bet-
ter results sometimes only the personal and documented contacts are
counted.
? Assessment
Simple control instrument. Activation degree of the visitor interest and pub-
licity of the company can be stated. Visitors can be identified more precisely
(e.g. sex; age). Multiple counts cannot be excluded. Qualitative interviews as
an additional instrument recommendable.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Counting of distributed material
Counting of stand visitors
Observation of stand visitors
Interviews with stand visitors
Assessment of visitor records
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? Objective
Documentation of the individual visitor behaviour in a spatial and temporal
view.
? Method
Tracking of single visitors by trained staff. Behaviour is documented in an
elevation paper (e.g. duration of the visit, special stops, reactions to exhibits,
number of the visual contacts, dealing with informative material, frame of
mind during the conversations).
? Assessment
The observation of stand visitors is an expensive control instrument. Special-
ized staff is needed to evaluate the activation and customer contact aims in
qualitative form. Only low case numbers are possible.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Counting of distributed material
Counting of stand visitors
Observation of stand visitors
Interviews with stand visitors
Assessment of visitor records
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? Objective
Investigation of complex and individual surveys of the exhibitors.
? Method
Verbal, written and computer-assisted interviews with the stand visitors.
Interviews last approx. 5 to 20 minutes depending on subject and sur-
roundings.
? Assessment
This control and market research instrument is expensive. The exhibitor
evaluates the structure of the stand visitors (short interviews). It is also
possible to assess the quality of the booth concept (e.g. information of-
fer, choice of the exhibits, quality of the customer contact, attractiveness
of the booth).
Advantages are to discover observable reactions of the visitors (e.g. to
exhibits, special events); but also to analyze e.g. attitudes, opinions.
Some disadvantages are that no sample inquiry is ensured. The interview-
ers can have influence on the reply and the structure of the people asked
can be one-sided.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Counting of distributed material
Counting of stand visitors
Observation of stand visitors
Interviews with stand visitors
Assessment of visitor records
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? Objective
Collecting of information about the visitors; socio-demographic, company
specific data, reasons for the stand visit, measures for the re-working.
? Method
Structured or unstructured summary of the contacts by the exhibitor's staff
at the stand.
? Assessment
A report should be made from every conversation. However, because of the
hectic surroundings this is not always possible. Important information is
partly forgotten. The visitors‘ evaluation of the stand is often not recognized,
remembered or recorded . Visitors who only look around aren't included.
The instrument has to be used in any case. The visitor records make the re-
working after the show easier.
3
3
http://www.ufi.org/media/pdf/seminars_presentations/porto2009/2009-ess-porto_marcus_timson.pdf
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests during the show
Counting of distributed material
Counting of stand visitors
Observation of stand visitors
Interviews with stand visitors
Assessment of visitor records
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VI . Evaluation of Participation
A. Efficiency Assessment
RFID
Visitors to trade shows today erroneously believe that all visitors are equal.
The truth is any particular company at any particular event is likely to only bene-
fit from engagements with a small segment of the visitor base that matches
their definition of a ?buyer?. Technology today can be leveraged to help facili-
tate the marriage of buyers and sellers, and filter out non-buyers.
The FISH application now used for events was developed for the US Army.
The Army application was geared toward allowing both recruiters and digital
media to leverage known visitor profile information in order to deliver more rel-
evant messages that align with interests and goals. Each visitor is assigned an
RFID tag that is used to track and record their exact location every second and
then leverage that location information (for both measurement and marketing
purposes) throughout the experience.
Video analysis has been widely accepted and has merit in the event space as a
tool to analyze the aggregate visitor behavior. It does not offer the ability to reli-
ably segment the analysis by demographic profile and is often marketed with
the erroneous assumption that ?higher interactions rates lead to more sales
and a higher return on investment?. This of course only holds true if the right
target demographic has been selectively attracted to the stand - not all visitors
have equal value. I have highlighted ?Hawthorne Experiments? mainly since this
seems to be an admission that the technology does not lead directly to real
results. Hawthorne experiments refer to the ?Hawthorne Effect? which means
that people that know they are being tracked and analyzed will always show a
significant increase in productivity.
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Passive RFID has also been widely used and accepted in the event space.
It is called passive because it has no internal power source of its own. Power is
beamed at a tag and the energy is then reflected from the tag back to a receiv-
er that records the interrogation. Because Passive RFID is reflective it has a
comparatively low accuracy/reliability. Also with passive RFID all measurement
points need to be determined pre-event and hardware needs to be strategically
placed. With the Fish RTMS (Real Time Measurement System) the sensors are
permanently mounted in the ceiling and every square meter of the show floor
is covered and measured every second - which gives us the ability to redefine
measurement zones even after the show has ended.
4
4
http://www.ufinet.org/media/pdf/seminars_presentations/porto2009/2009-ess-porto_michael_gilvar.pdf
5
http://eventmeasurement411.wordpress.com/
VI . Evaluation of Participation
A. Efficiency Assessment
Philips Healthcare RSNA 2008: Specific Areas of Exhibit Visited and Time Spent
Based on RFID data for the survey respondents
5
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? Objective
Investigation of complex and individual questions about the means and
long-term effectiveness of the fair engagement (distance of approx.
4 -6 weeks after the fair; or in the long-term control area even later).
? Method
Verbal and written interviews with known stand visitors. Interviews last
approx. up to 20 minutes depending on subject.
? Assessment
Expensive control and market research instrument. Particularly psycho-
graphic aims are evaluated: Publicity of the enterprise, recognition of
logo, products, statements concerning products, long-term change of
the behaviour. Sentimental values in comparison with competitors.
Advantages are to get to know the reactions of the visitors regarding
e.g. attitudes, opinions, image. The comparison of reference groups
(visitor - non visitor) is possible. The tool ?interviews with stand visitors
after the trade show? is an important method with regard to the evalua-
tion of the fair as a communication tool.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests after the show
Interviews with stand visitors
after the show
Interviews with personnel
working at the booth
Invitation resonance analysis
Analysis of the visitor statistics
of the organizer
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? Objective
Improvement in the fair participation, particularly stand service, effects of
the fair participation on the daily work, collecting suggestions from conver-
sations with customers.
? Method
Structured interviews with the exhibitor's staff at the stand during but also
immediately after the fair.
? Assessment
Compared to other methods the interviews with stand personnel are rather
cost-effective. Experiences are documented and made useable for the com-
ing events. The challenge is that interviews with the exhibitor's staff are ne-
glected as there isn?t any immediate use.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests after the show
Interviews with stand visitors
after the show
Interviews with personnel
working at the booth
Invitation resonance analysis
Analysis of the visitor statistics
of the organizer
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? Objective
Efficiency check of the invitation campaign (direct mailings).
? Method
Documentation of the reactions to the invitations: answers, reactions to se-
cond mailing and telephone contacts, accepted invitations at the booth.
? Assessment
The invitation resonance analysis is a cost-effective instrument. The results
can be used for a differentiated re-working of the visitors. Visitors met at the
booth have to be treated differently than customers who haven't accepted
the invitation.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests after the show
Interviews with stand visitors
after the show
Interviews with personnel
working at the booth
Invitation resonance analysis
Analysis of the visitor statistics
of the organizer
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? Objective
Check and comparison of the composition of the customers at the booth.
? Method
Comparison of the structure data of the visitors raised by the organizer with
the data investigated by the exhibitor. Visitor interviews necessary, at least
to get the right structure data.
? Assessment
The evaluation of the segment specific range of the trade fair is possible.
The accessibility of the target group can be tested. However, the structure
data of the organizer and those from the exhibitor are sometimes not suita-
ble. The value remains restricted: Important structure data are missing as
not all relevant data are investigated. Data aren't available for every trade
fair.
VI . Evaluation of Participation
A. Importance of Evaluation
Trade show testing
Tests after the show
Interviews with stand visitors
after the show
Interviews with personnel
working at the booth
Invitation resonance analysis
Analysis of the visitor statistics
of the organizer
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Efficiency analysis means evaluating the trade show participation. The exhibitor
wants to know if the cost-benefit ratio is positive or not, therefore the planned
budget has to be checked. Deviations have to be identified and to be analyzed.
On the basis of the budget check, some coefficients can be measured to com-
pare participation in different trade shows or to evaluate the annual participa-
tion in one show.
During the budget check the planned and actual costs are compared. The tar-
get-performance comparison of the costs is informative if all costs (e.g. invoice
figures, imputed costs) have been accounted for the project.
The budget check contains the deviation analysis and the calculation of charac-
teristics.
First of all the deviations are identified. The exhibition manager has to ask what
the reasons for the differences between planned and actual costs are.
The characteristics calculated for one or, even better, for several (comparable)
shows, examine the efficiency of the participation.
6
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
6
Cf. Kerin, Roger A. and William L. Cron. 1987. "Assessing Trade Show Functions and Performance:
An Exploratory Study." Journal of Marketing 51 (July): 87-94.
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Planned costs € Actual costs € Deviation €
Rental of stand 6,200 6,200 0
Power Supply 600 650 50
Other basic costs 1,250 1,290 40
Construction 8,450 12,100 3,650
Equipment 1,800 1,860 60
Design 1,900 2,300 400
Depreciation 600 600 0
Stand Service 1,750 1,750 0
Communication 2,200 2,350 150
Transport 1,300 1,300 0
Waste disposal 50 50 0
Personnel costs 5,350 6,000 650
Travel costs 3,100 3,300 200
Other costs 1,850 1,900 50
TOTAL 36,400 41,650 5,250
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
Budget for a trade show participation:
Planned and actual costs need to be
compared.
After the show the exhibitor recognizes that the actual costs severely differ
from the planned costs. The reasons could be:
1. The costs for stand construction outvalue the planned costs by 42%
(3,650 €). The costs for the stand design were 21% higher than
expected (400 €). The equipment costs slightly increased (60 €; 3.3%).
The reasons could be: The exhibitor decided to improve the stand construction
and design shortly before the trade show. Therefore the costs increased. How-
ever, the stand was more attractive; more visitors came than expected; there-
fore the communication costs rose as well (+150 €; 6.8%).
2. The deviation of planned and actual personnel costs were 650 € (12.1%). Be-
cause of the improved communication at the stand more personnel was need-
ed. External staff was hired to manage the increased number of visitors.
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? Objective
Comparison of the participation in different trade fairs, but also comparison
with alternative marketing instruments with regard to cost benefit relations
? Method
Recording of different data from different sources: turnovers, costs, margin-
al contributions from the accountancy, visitor statistics, visitor records.
? Assessment
The calculation of coefficients is a suitable instrument to check
the profitability of the fair participations. However, the data acquisition is
sometimes expensive. Depending on the quality of the data the interpreta-
tion of the results is difficult. A continuous recording of the data over several
trade fair periods is necessary.
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
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Trade fair coefficient I
The exhibitor wants to know how much turnover has been initiated by the trade
show participation. Assuming a turnover at the fair of 125,000 € and costs of
41,650 € each 1,000 € have produced a turnover of 3001 €, or each € spent at
the trade show has led to 3 € turnover.
Trade fair coefficient I =
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
Slide 165
Value of turnovers at the fair
Costs of participation
x1000
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Trade fair coefficient II
Trade shows have become
communication platforms.
Therefore most of the contracts
are completed after the show.
It makes sense to assign the
turnovers realized at the show,
and several months after, to the participation. However, there are some inter-
face problems. If the above proposed calculation is always done in the same
way different trade shows become comparable.
Assuming turnovers at the fair, and four months later, of 380,000 € and costs
of 41,650 € each 1,000 € have produced a turnover of 9123 €, or each € spent
at the trade show has led to 9 € turnover. The cost-benefit multiplier is nine.
Trade fair coefficient II =
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
Slide 166
Value of turnovers at the fair and 4 months after
x1000
Costs of participation
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Trade fair coefficient III
To obtain more information
about the importance of the
marketing instrument
?Trade show participation?
and its relevance for the
turnover of the company the
coefficient III has to be calculated. With an assumed annual turnover of the
company of 1,520,000 € and total costs of 208,250 € (five trade shows)
each 1,000 € have produced a turnover of 7298 €, or each € spent at the
trade shows has led to 7.30 € turnover.
Trade fair coefficient III =
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
Slide 167
Annual turnover of the company
x1000
Costs of all trade show participations
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Costs per visitor
? The profitibility of the
participation is document-
ed by the coefficient
?Costs per visitor?.
How much money has to be spent to get contacts to potential customers?
? Assuming that 260 visitors have visited the booth of the company and
costs of 41,650 € have arisen the costs for each visitor are 160 €. This
figure can be compared with the costs for field service, direct mailing or
advertisement.
? To get more informative figures it is possible to divide the visitors into
different groups: professional, new, foreign visitors; management,
customers with completed contracts.
Costs per visitor =
VI . Evaluation of Participation
B. Efficiency Assessment
Budget Check
Deviation analysis
Calculation of coefficients
Costs of the trade show participation
Number of visitors
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124
Auditing of Exhibition Statistics
Many companies annually decide about participating in trade shows. They are
given tight communication budgets and high targets are set. A decisive factor
for the success of trade fair planning is the quality of the data material.
Because anyone whose trade fair planning is not based on hard, verifiable
facts, risks wrong decisions which can be very expensive. The industry needs
audited exhibition statistics because the enterprises:
? Require transparency and reliable comparisons;
? Want to experience how the industry trends develop and
? Want to control the organizer?s business destiny.
? Additionally the organizers and the industry need credibility.
Exhibition organizers promote the number of visitors who attended an exhibiti-
on; but who's to say that these numbers are strictly accurate? Are visitors
counted or visits? What about repeat visits? Did those visitors come once, or
several times? Among those who attended, do they live just down the street or
did they travel from far away? And when organizers promote the size of an ex-
hibition, is everyone on the same page? Is the exhibition space alone being ta-
ken into account, or all the facilities? How many exhibitors were there?
And were they "real" (direct) exhibitors or did they just represent several
companies?
It is difficult for a company to compare conflicting information when making a
decision on whether to exhibit, and where. Which figures are audited?
? The number of visitors or visits, with a breakdown
between national and international;
? The number of exhibitors and again with the international
versus national breakdown;
? The net exhibition space
Some auditors go one step further, providing demographic analysis, market
research etc.
VI . Evaluation of Participation
C. Auditing—Transparency in the Exhibition Industry
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Certain countries have been actively promoting auditing as a concept. Some
have even passed laws which make auditing obligatory (e.g. France). In other
countries such as the United States, the notion of auditing is new but
marketers within all media platforms are being held more accountable for spen-
ding decisions. Some countries have even linked auditing with government
subsidies: only audited events may obtain financial help from the government.
Difficulties arise in countries where auditors are not present.
Due to the various levels of development as outlined above and global diversi-
ty, the methodology used in exhibition auditing is not standardized.
UFI has developed a basic minimum standard (UFI's Auditing Rules) for all its
members and is consequently implementing it.
VI . Evaluation of Participation
C. Auditing—Transparency in the Exhibition Industry
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VI . Evaluation of Participation
C. Auditing—Transparency in the Exhibition Industry
Example of audited data of a trade show in France (source: AUMA, Germany)
Salon International de la LINGERIE
Venue Paris, France
Paris Porte de Versailles (VIPARIS)
Date Jan 23., 2010 - Jan 25., 2010
Interval Every year
Founded in 1960
1
st
organizer Fédération de la Maille
B.P. 121, 37/39 rue de Neuilly
92113 Clichy Cedex
Tel: +33-1-47563232 · Fax: +33-1-47563299
www.textile.fr
2
nd
organizer Eurovet
B.P. 121, 37-39, Rue de Neuilly
92113 Clichy Cedex
Tel: +33-1-47563232 · Fax: +33-1-47563299
[email protected]
www.eurovet.fr
Industry sectors Clothing, Fashion
Main product
group
Lingerie, Corsetry, Hosiery, Bathing Suits, Men's Underwear,
Fashion
Accessories, Pyjamas and Night-gowns
Opening hours trade visitors: daily 09.00-19.00 h , last day 09.00-18.00 h
Statistics 2/2006 2/2007 1/2008
Audit OJS OJS OJS
Space (m², net) 15 470 16 015 15 967
Rented/hall space 15 470 16 015 15 967
domestic 6 034 6 189 5 742
foreign 9 436 9 826 10 225
Exhibitors with
own stands
413 436 426
domestic 130 139 122
foreign 283 297 304
Trade visitors total 35 478 31 100 29 658
domestic 15 598 13 395
foreign 19 880 17 705
AUMA copyright – subject to change
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REMARKS
127
Modern trade shows have developed from a long historical tradition, which
mainly influenced the economic rise of modern Europe and increase of trade
between Europe and the East.
7
Today?s trade shows
? Are a powerful marketing-tool;
? Represent themselves as information and sales platforms;
? Are important presentation instruments for special market segments;
? Initiate profits for exhibitors, visitors, organizers, service providers and the
local economy.
Trade show participation
? Must be integrated into an overall marketing communication concept;
? Supporting tools must be adjusted;
? The trade show concept must reflect the company`s strategy.
Benefits
? High attention, not only from the target group but also from the media;
? Remarkable number of contacts with target group at relatively low costs;
? Efficient tool to realize Customer Relationship Marketing (CRM).
Trade show experience helps to improve and ensure a maximum return on
investment.
VII . Summary
A. Conclusion
7
Cf. Robbe, D., Expositions and Trade Shows, Canada: Wiley 2000
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Disadvantages of participations in trade shows
? The expenditures for trade shows are relatively high;
? The preparation and realization of a trade show participation requires
personnel and other resources before the trade show;
? Trade shows take place once a year – as a rule. They are not available at
other times.
VII . Summary
A. Conclusion
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VII . Summary
B. Future Development
Trade fairs still play an important role in marketing and they will continue to do
so in the future. The exhibition industry is part of the global economy and is
therefore directly influenced by the economic and social changes. What are the
influencing factors which have an impact on the exhibition business? A few fac-
tors are described below:
? The trade flows will change in the future. The BRIC and other developing
countries will become more and more important for the international de-
mand and supply. New players – especially venues and organizers - will
enter the exhibition business following these trade currents.
It is expected that the whole range of trade show portfolios will exist
in each economic region.
? There is a rising awareness of green issues. They will become more im-
portant also for the exhibition industry. Waste management, water and ener-
gy saving, intelligent transport concepts, environmentally sustainable prod-
uct use and other environmental issues will affect the exhibition industry.
? Shorter product life cycles are a wellknown phenomena in the industry.
This means products reach the end of their use in shorter periods. Trade
shows will have to follow this trend as well. The trade show concepts need
continuous adaptation to the acceleration of the life cycles.
? The exhibition business needs travelling exhibitors. Because of travel
restrictions and crises the mobility of the people around the industry will be
affected more often than in the past.
? The internet will play an important role for the future of trade fairs. Not as an
alternative, but as a supporting tool before, during, and after the trade fair.
? The exhibition business will diversify in the future. Especially, the integration
of classic (e.g. print media) and modern media (e.g. the internet, special
events) will be a success factor for the exhibition industry.
? Networking will become more and more important. Because of the globali-
sation of the exhibition industry, the cooperation of domestic and interna-
tional enterprises will lead to a win-win situation of all partners.
The global industry will be moving together.
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