Successful Participation in Trade Fairs
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2 0 1 3
PRACTICE
Successful Participation
in Trade Fairs
Publisher:
AUMA
Ausstellungs– und Messe–Ausschuss
der Deutschen Wirtschaft e.V.
Association of the
German Trade Fair Industry
Littenstrasse 9
10179 Berlin
Telephone +49 30 24000–0
Telefax +49 30 24000–330
info@auma.de
www.auma.de
Edited by:
Dr. Peter Neven
Sylvia Kanitz
Successful Participation
Design:
CCL, Berlin
in Trade Fairs
Production:
zappo, Berlin
Published: 1/2014
2
Inhaltsverzeichnis Successful Participation in Trade Fairs
Content
I I
6 Exhibits and trade fair stands 48
I Successful participation in trade fairs 6
Selecting the exhibits 48
1 1 Germany as a trade fair venue 7 Fake products at German trade fairs 49 1
Supporting programme 51
2 Trade fairs as part of the marketing mix 9 Trade fair stands 51
The role of trade fairs in the marketing mix 9
2 Participation in a Trade Fair as part of the marketing mix 12
Types of stand and location 53 2
Stand construction: exterior, overall design, furnishings 55
Participation in trade fairs as an integral part of company activities 13 Graphic design and information tools 62
Trade fairs as part of the communication mix 13
3 Trade fairs as part of the pricing and sales conditions mix 16
Technical equipment 64 3
Stand construction and dismantling 66
Trade fairs as part of the distribution mix 16 Environmental sustainability 66
Trade fairs as part of the product mix 17
4 Assessing one’s competitors 17 7 Advertising and public relations (PR) 69 4
Advertising and press work conducted by the organisers 69
3 Trade fair objectives 20 Exhibitor measures for attracting visitors 70
5 Exhibitors’ objectives at trade fairs 20 Press work conducted by the exhibitor 74 5
Prioritizing objectives 23
8 Stand personnel 79
4 Selection and decision-making criteria 25
6 Exhibition categories 25
Personnel requirements and selection 79 6
Motivation and training 79
Information sources 28 Professional conversation 81
Exhibitor and visitor surveys 30
7 FKM visitor profile analysis –Basics (result of all visitors) 32 9 Stand operations 83
7
FKM visitor profile analysis – Additional questions 33 Stand supervisor 83
Rules of the stand 84
8 5 Budgeting and organisation 35 Hospitality 84
8
Cost factors involved in attending a trade fair 35 Collcting visitor data 85
Support for participation in trade fairs 38 Information on the trade fair and markets 87
9 Organising a trade fair participation 38 Cleaning and security 87
9
Timetable and schedule 39 End-of-fair activities on the stand 87
Type of participation 39
10 Registration 41 10 Follow-up analysis 89 10
Terms and conditions of participation 41 Evaluating visitor data 89
Safety regulations 42 Follow-up activities 91
A1 Insurance 42 Monitoring one’s success with the Trade Fair Benefit Check 92 A1
Services for exhibitors 43 A1 Associations representing the German trade fair industry 98
Catalogue and information systems 44
A2 Checklist 101
A2 Transport and storage 44 A2
Travel and accommodation 46
Sustainability: challenges and benefits 46
4 5
Introduction Successful Participation in Trade Fairs
Successful participation in trade fairs Germany as a trade fair venue
I I
Out of all the marketing instruments available trade fairs offer by far the Situated at the heart of Europe and in the middle of the European single
widest range of functions. This is where exhibitors can conduct business, market, Germany has always been a commercial hub for trading between
1 cultivate their image, look for business partners or examine the market. East and West and North and South. Today, Germany is one of the world’s 1
The same applies to visitors. Trade fairs are the ideal place for surveying the leading exporting nations, with imports and exports totalling more than
market, comparing prices and sales terms, trying out products, discussing 2,006 billion euros.
2 their applications and doing business. 2
For the trade, information is just as important as the goods themselves.
For this reason, even in the internet age the importance of trade fairs has More and more products need explaining and with so many choices avail-
not diminished. Today, many exhibitors pursue a wider range of aims at able making a decision becomes more difficult. Thus, exchanging informa-
3 trade fairs than they did a number of years ago. However, in order to make tion and establishing trust become increasingly important. 3
the most of a trade fair it is essential to prepare optimally and to choose the
“right“ event, the best option for meeting the stated objectives. It involves Establishing leads and cultivating relations is essential. And what better
4 everything from choosing the right employees for one’s stand to using place to do so than at trade fairs and exhibitions, in direct conversation with 4
advertising materials that target prospective visitors. Ultimately, the most all the right business partners?
important thing is to systematically collect and evaluate the contact informa-
5 tion secured at trade fairs. Specialist trade fairs in Germany are where the industry meets, and the 5
opportunities they offer are almost unlimited. More than half of the world’s
This brochure offers tips on how to navigate your way along every step of leading trade fairs take place here.
the way, from preparing for a trade fair through to conducting a follow-up
6 analysis. Germany as a trade fair venue is synonymous with tradition and dynamic
6
progress alike. Outstandingly organised event programmes that are tailored
The AUMA team wishes you every success at your next trade fair. to the industry’s needs are constantly adapted to fluctuating markets and
7 technological change. Supporting conferences provide additional informa- 7
tion on standards and trends, applications and solutions. The payoff from
these sophisticated trade fair concepts is how well they are received by the
8 industries in question, by small and large enterprises alike, both at home 8
and abroad. One look at the statistics is sufficient proof.
9 Annually, some 150 international trade fairs and exhibitions take place 9
and exhibitor participation continues to rise steadily, numbering around
180,000 in 2012. Exhibitors include most of the leading market players
from the industries in question. At the same time around 85 % of exhibitors
10 are small and medium-sized enterprises, which frequently make good use 10
of the marketing instrument that trade fairs represent in order to expand
their business.
A1 A1
More than 50 % of exhibitors are from abroad. They come from 193 coun-
tries, a third of whom are based outside Europe. The international dimen-
A2 A2
6 71 Germany as a trade fair venue Successful Participation in Trade Fairs
sion to these fairs generates even greater interest from abroad and creates 2. Trade fairs as part of the marketing mix
I its own dynamic. Experts from around the world visit German trade fairs. I
Annual attendance is 9 to 10 million. 25 % of visitors are from abroad and The role of trade fairs in the marketing mix
most of them are senior executives. The longer the journey, the higher their
1 decision-making power and the longer they stay at trade fairs. In order to make a strategic decision regarding 1
trade fair participation a company must look at Selected functions
Trade visitors come for the products and services from around the world its marketing mix in terms of its products, pric-
2 and exhibitors are able to address a large segment of their potential cus- ing, communications and sales channels. Trade fairs 2
tomers. Specialist trade fairs and their international dimension are respon- Marketing is regarded as the planning, coordina-
tion and monitoring of all of a company’s activi- • provide a focus that mirrors
sible for creating expert knowledge around the world. Business conducted
selected markets
3 between third parties, i.e. foreign companies who engage with foreign cus- ties that are focused on current and prospec-
• offer entertaining experiences
3
tomers, has always been a significant aspect of German trade fairs. tive markets. The purpose of these activities is
to consistently satisfy customers’ needs on the and appeal to all senses
one hand and the company’s aims on the other. • guarantee and enhance market
4 Trade fair advisory boards including representatives of the supply and the
In order to achieve these aims a company must transparency 4
demand side support and ensure industry-compliant developments of the
employ a range of marketing instruments. Mar- • open up new markets
trade fairs.
keting mix elements consist of determining a • facilitate a direct comparison of
5 Regional exhibitions create market opportunities in many places as well. product, pricing and sales conditions, and imple- value for money 5
Their visitors come from clearly defined regional areas, in contrast, their menting sales and communications measures. • promote an in-depth exchange
These are the instruments a company uses to of information
exhibitors come from all over Germany and from abroad, this applies in
6 particular to regional specialist trade fairs. control its influence on the sales market. 6
Under the AUMA-category “regional” 160 events with around 6 million Trade fairs should not only be seen as an efficient communications and
sales channel. They also influence product and pricing strategies, and as
7 visitors and 50,000 exhibitors are listed which meet specific quality require-
information technology evolves they naturally change too. The internet
7
ments. Regional exhibitions target trade visitors from industry, commerce,
agriculture and the craft sector. General events and specialist consumer plays a major part here, providing access to information in any place and
exhibitions are aimed at the general public. at any time. Thus, where capital goods are concerned, for instance, trade
8 fairs have evolved from a large buyers’ event to places where information is 8
German trade fairs reflect the high level of competition that exists within exchanged and people engage in face-to-face meetings. Almost every aspect
many industries. This is where the global market players are, so in order to of the marketing mix offers great potential for producing a desired effect. By
9 take part in a trade fair optimal preparation is essential. taking part in trade fairs exhibitors can implement their strategies regarding 9
communications, advertising, pricing and sales conditions, as well as distri-
Part One of this brochure, Successful Participation in Trade Fairs, provides bution and products, and they can make clear the role they occupy within
10 a guideline for the necessary steps a company must take: from choosing the market. The majority of exhibitors regard taking part in trade fairs as an 10
the right trade fair, through to the organisational details to the follow-up integral part of the marketing mix they employ. Trade fairs enable compa-
analysis. Part Two primarily addresses companies venturing onto foreign nies to achieve a whole range of economic objectives. When companies use
trade fairs as marketing platform they must focus and economise, because
A1 markets.
trade fairs have many functions. One of their strong points is that they are
A1
not held continuously, but at the intervals determined by a particular indus-
try’s pace of innovation.
A2 A2
8 9Trade fairs as part of the marketing mix Successful Participation in Trade Fairs
No other instrument can be employed in the same way to promote a compa- A company can achieve its mar-
I ny’s image and its products so widely through face-to-face meetings. Trade keting aims by visiting poten- I
fairs also supply the parameters a company needs in order to implement a tial customers, but this lacks the
sales-oriented strategy. They show how markets work, the nature and extent same impact as promoting one’s
of change and the direction future developments will take and the speed at image at a trade fair. In general, a
1 which they will unfold. Trade fairs represent a unique instrument and pos- sales representative will be armed
1
sess opportunities all of their own. only with his own skills and a tab-
let PC, and not with the system
2 Unlike internet research, print he needs to demonstrate. Nor will 2
adverts, mailings, banners, he be accompanied by specialists
e-mailed newsletters, flyers or capable of answering every ques-
3 catalogues, all of which offer only tion on the functional aspects 3
abstract impressions, trade fairs and operational effect of a prod-
put a product on display and offer uct as well as on any related costs
4 a hands-on experience. Techni- and earnings. Experts agree that 4
cal equipment and machines can despite the cost of trade fair par-
be shown in actual operation. ticipation there is no other instru-
Expert technical demonstrations ment that brings a company into
5 go hand in hand with personal contact with so many competent
5
meetings that generate informa- professionals over such a short period of time. Trade fairs enable companies
tion, i.e. a dialogue. This is where to quickly gauge the reactions to a new product or prototype, which in turn
6 products are presented that serve provide valuable information for their product and market research work. 6
people’s individual needs. Inter-
net marketing involves similar Another advantage of trade fairs is the opportunity they offer to cultivate
7 basic elements. However, even customer relations. Relations can be maintained by a brief conversation on 7
the sophisticated services offered the stand rather than by spending large amounts of time and money on
by the world of information tech- travelling. Trade fairs make it possible to combine several marketing instru-
nology cannot replace face-to-face meetings at trade fairs. On the contrary, ments. If a company’s main objective is to attract new customers it has
8 more and more products and services need explaining and with so many to launch a large-scale advertising campaign ahead of a trade fair. Alterna-
8
choices available making a decision becomes more difficult. The wealth of tively, if its goal is to cultivate relations with existing customers then these
products the market has to offer is growing all the time. must be motivated to visit one’s stand beforehand. A basic evaluation of
9 trade fair activities reveals that trade fairs represent a marketing instrument 9
Trade fairs make it easy for companies to evaluate their competitors. with a wide-ranging and far-reaching impact. All the above factors under-
Exchanging information and holding talks remains important. In a deci- line the importance of trade fairs as part of the marketing mix.
10 sion-making situation the degree of personal trust established between 10
business partners is a key factor. In the competition for a business partner’s
trust personal acquaintance and word-of-mouth marketing become values
A1 in their own right. Whether at home or abroad, being able to maintain close A1
customer contact is an essential factor in the quest for strategic success.
A2 A2
10 11Trade fairs as part of the marketing mix Successful Participation in Trade Fairs
Participation in trade fairs as an integral part of company
I Participation in a Trade Fair as part of the marketing mix activities I
The prospect of taking part in a trade fair usually generates widespread and
1 Communications
mix
emotional debate throughout the entire company hierarchy, in a similar way 1
to advertising, sales promotion and public relations activities.
Traditional advertising Without doubt, trade fairs are complex affairs. Bad experiences, insufficient
2 knowledge of important factors, for example those concerning the choice of
2
Sales promotion /
direct marketing event and the effects of participation, can lead to scepticism or unwilling-
Public relations ness to take part. This sense of insecurity can only be confronted by under-
3 standing trade fairs as an integral part of company activities and by incor- 3
Direct sales
porating this approach into the company’s dynamic development process.
Sponsorship / This process begins by collecting and analysing all the necessary internal
event marketing /
4 product placement data, for example on products and product ranges, as well as external infor- 4
New media mation, for example on customers and competitors. Based on the available
data and premises, this is followed by evaluating the company’s own mar-
5 keting concept. The process reveals how important a trade fair can be as a 5
marketing instrument. A company must also carry out this evaluation in
order to determine suitable strategic measures, for example its objectives
Product Pricing and sales at trade fairs (t Chapter 3, Trade fair aims) in order to select the right trade
6 mix conditions mix
fair (t Chapter 4, Selection and decision-making criteria) and in order to 6
implement tactical measures, such as an individual marketing mix. In order
Pricing
Product quality Participation to realise and implement these individual aspects organisation, control and
7 Credit monitoring are required. 7
Product range policy in a
Discounts
Brand Trade Fair Trade fairs as part of the communication mix
Payments
8 Product design
Service
8
Communication is the act of exchanging messages and information. Like-
wise, when a company takes part in a trade fair information is exchanged.
9 To begin with the exhibitor, together with his display, products and person- 9
nel, acts as a sender of information and the visitor occupies the role of a
Distribution mix recipient. Subsequently, the latter engages in a face-to-face personal dia-
logue with the exhibitor and information is exchanged.
10 10
Sales organisation
Trade fairs provide a setting for real-life encounters between people and
Sales channels products or for explaining services. They represent a medium through
A1 Storage which communication takes place and provide a backdrop for personal dia- A1
Transportation logue and an environment in which people and products can come together
without interference through media. Thus, communication is one of the
A2 dominant aspects of trade fairs and exhibitions. A2
12 13Trade fairs as part of the marketing mix Successful Participation in Trade Fairs
Classical information and communication tools include advertising, sales the next trade fair. If the trade fair in question is an industry-sponsored
I promotion, direct sales and public relations. Other, below-the-line, com- event and harmonised with the industry’s own innovation cycle then the I
munications comprise sponsorship, event marketing, product placement fact that this instrument is not available presents no problem. By contrast,
and new media. Each of these communication instruments forming part being able to participate in a leading international trade fair has numerous
of the mix can be employed in a wide variety of ways. Market research and advantages for exhibitors, due in particular to the high media attention and
1 corporate design can also be considered communications in a wider sense. global interest such an event generates. For an exhibitor it means planning
1
Anyone who has been to a trade fair knows that they are important at these his participation over a long period of time, observing registration deadlines
events. An exhibitor receives information on the market and the design of and keeping a close eye on the trade fairs taking place around the world.
2 his stand reflects the corporate image he wishes to represent. 2
Trade fairs are particularly effective because of their many functions in rela-
In order to determine the role trade fairs play com- tion to other instruments. No other instrument serves so many individual
Communications
3 mix pared to other communication tools and instru- purposes and nowhere else can one communicate so directly with a cus- 3
ments a company must take two criteria into tomer in order to trigger new and satisfy existing information needs. Exhibi-
account: the intensity of dialogue and face-to-face tors can demonstrate the advantages of their company and products, such
Traditional advertising
4 Sales promotion /
communications and the input the senses receive as their reliability, customer service and product quality. Conversely, by tak- 4
during communications. In a sender-dominated ing part in a trade fair a company receives valuable feedback from conversa-
direct marketing
display and communications scenario intensity tions with visitors and that information can be used to develop and evolve
Public relations levels are especially low. However, they increase products, research the market and to plan for the future. Participating in
5 Direct sales with the use of media as part of the dialogue, e.g. trade fairs allows a company to meet more potential customers and to exert
5
Sponsorship / with electronic media, culminating in a personal a greater influence on existing ones. By taking part in trade fairs companies
event marketing / meeting and a conversation, for example on the can quickly and directly perceive any changes in consumer structures and
6 product placement stand. Intense targeting of the senses begins with behaviour (t Chapter 7, Advertising and PR). 6
New media the relaying of abstract information and increases
with the use of a multimedia experience, e.g. an
7 audiovisual dissemination of information, culminating in a face-to-face 7
encounter, during which information is accepted by all the senses.
Face-to-face meetings between exhibitors and visitors on the stand are key
8 elements, as they are the only means of exchanging information and com-
8
municating by which long-term relations can be established and main-
tained. At the same time trade fairs communicate information about a
9 product or a service in a much more active and direct way than other instru- 9
ments because the senses of both the sender and recipient receive much
more input, resulting in a long-lasting communications effect.
10 10
Other criteria used to evaluate the role of trade fairs in the communications
mix include their availability and their many functions. Some trade fairs
A1 take place only in intermittent years. Despite their status as ’unique’ events A1
their disadvantage is that a company’s individual innovation cycle must be
coordinated with the industry. Our fast-moving media world and the global
flow of information increasingly puts such companies under pressure by
A2 asking when an innovation is due and whether it will be released before A2
14 15Trade fairs as part of the marketing mix Successful Participation in Trade Fairs
Trade fairs as part of the pricing and sales conditions mix Trade fairs as part of the product mix
I I
Important factors used to establish a company’s Trade fairs are primary venues for exhibiting
Pricing and sales
conditions mix pricing and sales conditions mix include precisely innovations. The general terms and conditions Product mix
1 determining customer structures, company sizes, of trade fair organisers stipulate in particular 1
Pricing locations and shipping distances. Talking to cus- that goods at exhibitions must be innovative by Product quality
Credit tomers, for example, provides a company with the nature. When examining its product mix a com-
Product range policy
information it needs. Taking part in a trade fair pany must know what stage in the market cycle a
2 Discounts
enables it to examine current pricing and sales particular product has reached which it intends Brand 2
Payments
conditions. New perspectives can be opened up. to exhibit. If circumstances demand, a company Product design
Service
can expand its range in order to achieve a better
3 image by appearing with a new product, i.e. with 3
The following aspects influence pricing: a trade fair debut. The product should feature a contemporary design to
improve sales. This also applies to its packaging. If the company’s product
4 r packaging, shipping and insurance costs is a brand article or bears a quality seal then these aspects should feature 4
r customer service and servicing costs prominently. By taking part in a trade fair a company can test the individual
r current pricing calculations elements of its product mix and consequently the product itself. By talking
r terms and conditions of payment to users a company can test the acceptance of a product and gather informa-
5 r discounts on payment, for bulk orders and special discounts tion and ideas for its product range policy.
5
r shipping conditions
r take-back conditions Assessing one’s competitors
6 6
Companies should also examine the payment history and credit assessment An evaluation of the strengths and weaknesses of a company’s competitors
of customers and potential customers. Pricing and sales conditions must be provides yet more useful information in assessing the options as regards
7 fixed in a manner that allows a company to achieve its aims and to safeguard taking part in trade fairs. 7
its profits.
When assessing one’s competitors the aim can be to:
8 Trade fairs as part of the distribution mix 8
r better determine one’s own position on the market
Taking a look at distribution mix aspects lets a r learn from the market activities of one’s competitors
Distribution mix company determine whether participation in a r provide a better insight into the developments at one’s own company
9 trade fair can be considered positive. A company
9
Sales organisation should investigate whether it needs to expand fur- It is important to establish who one’s competitors are. Besides counting
ther or make any other changes to its existing sales direct competitors who produce identical or similar products one should
10 Sales channels
organisation, e.g. whether it needs to restructure also include those companies which employ the same production methods 10
Storage
its sales force, look for sales representatives or or offer substitute products.
Transportation dealers, or for storage and transportation partners
A1 to collaborate with. A company should also exam- A1
ine whether any changes need be made to the qual-
ity and quantity of existing sales channels.
A2 A2
16 17Trade fairs as part of the marketing mix Successful Participation in Trade Fairs
Competitive markets can be defined by products and services and by geo- sion-making criteria). A company
I graphical aspects. Subsequently, the competitive situation in each relevant should also consider what influ- I
market can be specified based on a number of criteria, for example: ence trade fair participation will
have on the concept of its overall
r company image marketing strategy. Participat-
1 r company HQ / production sites ing in trade fairs results in posi-
1
r service areas tive synergies for a company and
r production capacity can lead to success particularly if
2 r R&D activities it coordinates its activities with 2
r marketing strategies / marketing mix other elements of the marketing
r advertising budget mix.
3 r distribution network 3
r profit situation New markets, new customers
r future trends and product innovations do not
4 materialise overnight, not even 4
The presence of different companies offering the same product range at at trade fairs. Therefore, a com-
trade fairs helps to create additional market transparency. pany should envisage taking part
in a minimum of three events.
5 Summary of key facts and findings Attending only one trade fair will
5
not produce a realistic overall picture. In particular, that would waste the
As part of a company’s medium and long-term strategy participation in opportunity of following up the contacts secured at the initial main indus-
6 trade fairs can play an important part in positioning the company on the try event and meeting place of competitors that the trade fair in question 6
market. Taking part in trade fairs can improve the cost-to-benefit ratio. represents.
When participating in international trade fairs there are three criteria that
7 should be met. 7
As a rule, participation makes sense if
8 r a company’s sales are not confined to a local region
8
r a company’s sales target a sufficiently broad customer base
r and if a product or service involves a high level of expertise.
9 9
Mass-market or everyday products are not likely to attract great interest at
trade fairs. Visitors come expecting to discover innovations and technically
10 advanced products or to witness specialised products in action. (t Chap- 10
ter 3, Exhibitors’ aims as regards trade visitors)
A1 By answering most of the questions concerning the marketing mix a com- A1
pany can tailor its own basic marketing mix and make a decision on whether
to take part in trade fairs. Other criteria, such as the quality of the trade fairs
in question (visitor structure and information from the organisers), also
A2 play a part in formulating a final decision (t Chapter 4, Selection and deci- A2
18 193 Trade fair objectives Successful Participation in Trade Fairs
3. Trade fair objectives Once a company has defined its main trade fair objectives this influences its
I entire preparations in terms of organisation, including winding up its trade I
fair participation and a follow-up analysis (t Chapters 5 to 10). The following
Exhibitors’ objectives at trade fairs items on this list of trade fair objectives can be prioritised as necessary. For
example, communication aims can be made a subset of the product mix etc.
1 In order for a company to be able to make a decision on whether to par- 1
ticipate in trade fairs it must analyse its situation and clearly define where
General trade fair objectives
it stands (t Chapter 2, Trade fairs as part of the marketing mix). Experts
2 repeatedly insist that a company should establish its aims regarding com-
r Exploring new markets / (discovering market niches) 2
munications, pricing, conditions, distribution and products prior to taking
r Assessing the overall competitiveness
part in a trade fair. A company’s objective should be to lay down its medium-
r Assessing export chances
term strategic aims as the basis for a concept underpinning its participation
3 in trade fairs as part of the marketing mix and to derive the objectives to be
r Assessing the overall industry situation 3
r Exchanging experiences
pursued at trade fairs from a company’s individual marketing goals.
r Forging successful partnerships
4 The following diagram provides a general outline.
r Taking part in professional events 4
r Spotting new trends
r Tapping into new markets for the company / product
Where capital goods are con-
r Combining participation with other measures
5 Company Aims cerned the argument is often
(activities, seminars, company tours)
5
heard that trade fairs are irrel-
r Meeting competitors
Medium-term company planning evant or are now only of minor
(which competitors exhibit at which trade fairs?)
6 importance for business and are
r Increasing sales volume 6
only useful for promoting sales.
committed participation in a trade fair This should not lead to a com-
as part of the marketing mix Communication objectives
pany defining communications
7 as its only objective. There is a 7
r Expanding the list of personal contacts
substantial difference between
r Meeting new groups of customers
Communication Price and Distribution Product an initial visit to a customer by a
r Increasing brand awareness
8 aims conditions aims aims aims
sales representative, which does
r Boosting advertising impact on customers and the general public
8
not normally lead to an immedi-
r Expanding the range of customers
ate deal, and a trade fair. Trade
Participation aims r Expanding press activities
9 fairs and exhibitions fulfil all
r Discussing individual customer requirements and client demands 9
kinds of functions, allowing com-
r Cultivating existing business relations
panies to achieve a wide range of
r Collecting new market information
aims. As far as communications are concerned, even if the primary objec-
10 tive is to pave the way for a sales deal a company can still test its product and
r Implementing a corporate design / branding measures 10
r Further training for research and sales by sharing and exchanging
the market and conduct PR work and position itself on the market.
experiences
A1 Other options are to observe one’s competitors and meet customers in order A1
Objectives regarding pricing and conditions
to research the market. A company presenting new products can use its
attendance at a trade fair for its general sales efforts and self-promotion. The
r Consistent appearance on the market offering a convincing price-per-
A2 possibilities are wide-ranging. No other instrument offers such opportuni-
formance ratio A2
ties for making personal contact with a large number of interested visitors.
r Exploring pricing options
20 213 Trade fair objectives Successful Participation in Trade Fairs
Distribution objectives Prioritizing objectives
I I
r Expanding the distribution network How a company prioritizes its
r Monitoring the levels of trade objectives depends largely on the
1 r Looking for sales representatives trade fair in question, as demon- 1
strated by the following exam-
Product objectives ples: at trade fairs for consumer
goods, e.g. toys, fashion articles,
2 r Introducing product innovations leather goods, the focus is on 2
r Introducing prototypes placing orders. Visitors to these
r Testing market reactions to products and services events consist mainly of custom-
3 r Testing market reactions to a newly introduced product ers who order goods and articles 3
r Expanding the product range for the upcoming sales period.
The products at these fairs are
4 Visitor-oriented exhibitor objectives purchased in regular cycles and 4
buyers generally make their deci-
The objectives pursued by trade visitors also provide exhibitors with guide- sions on the spot without con-
lines for their strategic planning. These also influence tactical consider- sulting their superiors. By con-
5 ations. One could formulate these as visitor-oriented exhibitor objectives. trast, at international trade fairs
5
for capital goods direct sales play
Some of the objectives pursued by trade visitors are: a relatively minor role. The goods
6 exhibited there are relatively 6
r Exploring new products and the range of applications complex and any orders placed are the result of long-term negotiations, as
r Comparing prices and conditions major technical issues must first be resolved. The sales terms are also sub-
7 r Looking for certain products ject to negotiation. A number of decision-makers are involved in the pur- 7
r Obtaining ideas for company products and product range chase. Negotiations take place after the trade fair. In the event of business
r Meeting new business partners, intensify existing contacts being concluded the sale takes place indirectly, i.e. after the event. In many
8 r Spotting trends cases orders for capital goods are negotiated beforehand and sealed at the 8
r Gaining an overview of related markets trade fair in question.
r Assessing the economic situation and business prospects
r Finding out about the technical functions and nature of certain prod- As far as prioritizing one’s objectives is concerned this means that an exhibi-
9 ucts and systems tor either chooses an event that corresponds to his goals or he modifies his 9
r Taking part in the supporting programme objectives to suit a forthcoming trade fair (t Chapter 4, Selection and deci-
r Obtaining information on solutions to existing problems sion-making criteria). At trade fairs where orders are placed it is easier to set
10 r Attending conferences and special shows out a company’s objective and determine one’s level of success. At events with 10
r Professional and personal training a greater focus on information and consultation defining one’s objectives in
r Placing orders, negotiating contracts terms of sales achieved and determining one’s success is more difficult.
A1 r Making contact with comparable companies A1
r Assessing the options for participating as an exhibitor Finally, one should consider one other important point:
A company should establish what funds are available for participating in a
A2 fair and for financing necessary extra measures such as advertising in order to
A2
22 233 Trade fair objectives Successful Participation in Trade Fairs
attract visitors and for additional staff costs (t Chapter 5, Budgeting and Organ- 4. Selection and decision-making criteria
I isation). Companies often decide against taking part in trade fairs without I
closely examining the costs and benefits beforehand. The question a company In order to make good use of trade fairs as part of the marketing mix a
should ask is whether, having established its company goals, it is prepared to company must make certain choices: for example it must choose the type
reallocate funds in order to take part in a fair that it considers necessary.
1 of trade fair, the topics it wishes to address, the regions and audiences it 1
will target (t Chapter 2, Trade fairs as part of the marketing mix), following
When answering this question it can be helpful to put a figure on the quanti- which it must choose exhibits and employees for its stand (t Chapters 6 and
tative objectives at a trade fair and to also determine and estimate the impor-
2 tance of qualitative objectives. In this context quantitative goals are referred
8). The current trade fair landscape makes it easy to make choices. Trade 2
fair venues in Germany boast every imaginable type of event. Initial prepa-
to as hard factors, which can generally be calculated as opportunity costs and rations for a choice of trade fair can be carried out at one’s desk. A large
quantified in money terms. The basic question is: what would it cost to achieve number of criteria requiring systematic evaluation must be observed before
3 a company’s objectives by employing different marketing instruments? making a final choice. A statement such as “all our competitors are attend- 3
ing so we have to be there too” is an insufficient reason for taking part, as
As a rule qualitative objectives, also referred to as soft factors, cannot be is “our customers want to see us there.” Both statements are worth taking
4 calculated as opportunity costs. Exhibitors must make their own subjective seriously, but are no basis for such a far-reaching decision. 4
assessment and determine the specific benefits to their company any par-
ticipation will achieve and must gauge the fascination and indispensability
of a trade fair as a way of explaining a trade fair’s unique standing within
Exhibition categories
5 the marketing mix.
5
Over recent decades the trade fair landscape in Germany has evolved into
a system of specialist events that cater for almost every branch of industry.
6 Each of these exhibitions offers a representative overview of the sector in 6
question. Trade fairs are often classified according to their catchment area
and the concept or the principal topics they cover.
7 Classification of exhibitions according to AUMA 7
International exhibitions: foreign exhibitor participation must reach at least
8 10 % and foreign visitor attendance must reach 5 %, failing which foreign 8
trade visitor attendance must reach at least 5 %.
In addition, the products and services they exhibit are representative of one
9 or more branches of industry. They attract visitors from areas significantly 9
beyond the local region. In general, at least 50 % of the visitors are from
areas a minimum of 100 km away and at least 20 % are from regions a
minimum of 300 km from the venue.
10 10
National exhibitions: the products and services they exhibit are representa-
tive of one or more branches of industry. They attract visitors from areas sig-
A1 nificantly beyond the local region. In general, at least 50 % of the visitors are A1
from areas a minimum of 100 km away and at least 20 % are from regions
a minimum of 300 km from the venue.
A2 A2
24 254 Selection and decision-making criteria Successful Participation in Trade Fairs
Regional exhibitions are attended mainly by visitors from the local region. ers then it must choose a trade fair which specifically targets that audience.
I In general, significantly more than 50 % of the visitors are from areas less Having analysed the various trade fairs the situation will become quite clear I
than 100 km from the venue. They focus on products and services which for numerous ranges of products. Ultimately, a process of deduction will
may also originate from outside the local region. result in the choice of the right fair.
1 In each of these three categories exhibitions must also satisfy other specific Difficulties arise if more than one trade fair
1
requirements in order to be included in AUMA listings. is suitable. In such cases a company has two Selection criteria
options: one is to take part in both trade fairs
2 Multi-sector exhibitions exhibit a representative and the other is to specify additional criteria and Your situation and objectives corre-
2
Types of Trade Fairs
and Exhibitions and individually organised selection of prod- requirements until only one event is left over. spond to the theme of the fair
ucts and services from a number of industries. Representative range of products
3 International exhibitions Specialist exhibitions, such as those catering for Having made a theoretical choice, as it were, it is The company is able to address its 3
• AUMA–Category: international specific industries and special interest events, advisable to initially attend the event as a visitor relevant customer groups
National exhibitions focus on one or more branches of industry, man- in order to gain a direct impression. This allows The company is able to reach new
• AUMA–Category: national
4 ufacturing sectors or customer groups or on cer- one to see first-hand how exhibitors and compet- target groups 4
Regional trade fairs / exhibitions tain types of services. In terms of the visitors, itors are represented, how large the stands are,
• AUMA–Category: regional they attract multi-sector exhibitions and specialist how much is spent on stand design, how products are presented, to observe
exhibitions may be regional, national or interna- visitor circulation and on what days there are more visitors, as well as how
5 tional events. Universal trade fairs, i.e. events that exhibit all types of prod- long they remain on the stands. One should also find out whether any com-
5
ucts and services, no longer exist in Germany. panies offering alternative technical options are already exhibiting at the
fair and in what way they promote their products to visitors (advantages for
6 A distinction is also made between trade visitor oriented fairs, i.e. events the user, prices, delivery times). In particular, if a choice of more than one 6
which cater mainly or exclusively for trade visitors, and fairs which target fair exists then it is worth visiting the relevant events beforehand. The cost
the general public. involved is most certainly lower than the price one has to pay if the choice of
7 trade fair is not entirely right. 7
Nowadays, most international exhibitions in Germany are specialist events
with a clearly defined programme. Their nomenclatures clearly define the A company’s product must correspond to the theme of the trade fair and
products and goods they may exhibit, while excluding all other products. be listed in the organiser’s nomenclature. The relevant trade fair should
8 These nomenclatures are generally sorted according to the technical fea- address the audiences a company targets, preferably in high numbers (see
8
tures of the goods on display and according to individual product categories. FKM visitor statistics).
Evaluation and selection process
9 From an exhibitor’s point of view the trade fair should offer a representa- 9
By analysing its own marketing activities (t Chapter 2, Trade fairs as part of tive overview of the products and services in question and if possible should
the marketing mix), setting out its objectives (t Chapter 3, Trade fair aims) attract all the leading market players. In the case of regional events these
10 and sorting trade fairs by category a company can already eliminate all those players should be represented by the retail trade. The more major exhibi- 10
fairs which are not conducive to its objectives. tors present at an event, the higher the number of visitors who will be there.
However, a company should not choose a trade fair if it has no sales network
A1 If a company’s focus is mainly on exports then even if a regional exhibition’s for that particular market or cannot establish a relevant network within a A1
products are right this event will be out of the question. A company selling short period of time. Going to a trade fair while not being represented on
building materials or equipment from southern Germany and aiming to that market can in individual cases be spectacularly successful, but offers
trade or tap into the market in northern Germany should choose an event few benefits as far as reaching specific audiences is concerned.
A2 in the north. If a company sells its products to mainly one group of custom- A2
26 274 Selection and decision-making criteria Successful Participation in Trade Fairs
For a company it is also very useful to not only This mobile application accesses information
I Selection of the right trade fairs meet one’s target audiences but to also make con- from AUMA’s trade fair database, which is Sources of Information I
tact with circles that directly influence these audi- updated daily. In addition to extensive search
Analysis of the trade fair landscape ences. They can include opinion-formers, deci- functions the app also features a data manage- Dates, product groups, statistics
sion-makers and other groups of people, in fact all ment option. Additional information can be
1 • Topics
those one might classify and attract as secondary found at www.myfairs.auma.de.
• AUMA_MesseGuide Deutschland 1
• Nomenclatures • AUMA_GTQ Calendar
audiences. Other events that can help to attract
• Target groups large visitor numbers are supporting events such AUMA • AUMA_Foreign Trade Fair
2 • Regional coverage area as lectures, conferences, seminars for exhibitors, Association of the Programme 2
meetings of associations representing individual German Trade Fair Industry • FKM–Report
Company’s objectives info@auma.de
professions or industries (commerce, the skilled • Trade Fair Company/Organiser
www.auma.de
3 Preselection trades), that take place either at the trade fair or in • www.auma.de 3
Visit to the fair the city hosting the show. The above events can
The Society for Voluntary Control of Trade Fair
also motivate the relevant audiences to visit the
and Exhibition Statistics (FKM) provides exhibi- Additional sources of information
4 company stand. For visitors the supporting programme is often the decisive
tors and visitors with certified data on floor space, 4
factor as to whether they will attend. For this reason a company’s prepara- • Chambers of Industry and
exhibitors, visitors and visitor statistics for indi- Commerce
tions should include a look at the supporting programme.
vidual events, the collection of which is subject to • Chambers of Industrial Crafts
5 Other criteria have nothing to do with actual events at the fair. For example,
uniform rules. The data published by FKM helps 5
exhibitors to select the trade fairs attended by • Trade Associations
there may be environmental protection laws and regulations that require
their target audiences. • German Chambers of
a company to retrofit its products. This will have an influence on visitor Commerce abroad
6 demand for information and a corresponding impact on visitor numbers at 6
Whenever a company prepares for a trade fair or
certain trade fairs.
wants to evaluate its participation in an event the
information supplied by FKM facilitates comparisons between individual
7 Information sources events as well as between FKM’s data on a particular event and the informa- 7
tion collected by the company itself on the stand. The AUMA/FKM online
Various publications by AUMA as well as the online AUMA database pro- database provides certified data that is updated on a daily basis. FKM’s
8 vide detailed information on German trade fairs. annual report is published in German and English and is available free of 8
charge from the management of FKM.
The German version of the AUMA_Trade Fair Guide is published annu-
ally and has basic information on all the fairs listed by AUMA. On request,
9 AUMA will also mail lists of trade fairs where companies can find the goods
FKM 9
Society for Voluntary Control
they are looking for or which are most appropriate for displaying their prod- of Fair and Exhibition Statistics
ucts. info@fkm.de
10 www.fkm.de 10
At www.auma.de detailed information can be found on trade fairs and exhi-
bitions in Germany and abroad. It includes dates, the addresses of organ- Information on particular sectors is available from associations representing
A1 isers, the products and services exhibited, the exhibitor, floor space and industry, commerce and the skilled trades. The chambers of industry and A1
visitor statistics of the last three events held, plus visitor breakdown sta- commerce of individual regions and the federal States at dihk.de, chambers
tistics. This trade fair data can also be obtained with an iPhone app. With of commerce abroad at ahk.de and craft trade guilds at zdh.de provide infor-
the help of MyFairs, users can receive information on trade fairs and dates mation on a wide range of industries.
A2 worldwide, products exhibited and contact data, while they are on the move.
A2
28 294 Selection and decision-making criteria Successful Participation in Trade Fairs
Every reputable organiser can supply the following details: Trade visitors are often willing to travel long distances if there is a wide and
I in-depth range of products and services on offer. In the end it saves them I
r a catalogue from the last event time and energy if they can find all the interesting articles they are looking
r a list of products and services and a nomenclature for at a trade fair.
r exhibitor and attendance trends
1 r visitor statistics The information a company obtains on the job positions of trade visitors
1
r the results of exhibitor surveys and the industries they represent reveals their decision-making authority
r in some cases an analysis of markets and sectors and whether that particular sector is the one an exhibitor wishes to target.
2 r all the latest information on the event Lone decision-makers are not the only kind of trade visitor who have a say in 2
buying and procurement decisions. Trade fairs are often attended by mem-
Organisers’ addresses can be found at www.auma.de bers of large companies who play a major part in group decisions after the
3 fair. 3
Exhibitor and visitor surveys
If trade visitors return to a fair on a regular basis then that underlines the
4 Visitor attendance figures indicate the level of attention the relevant prod- need for a regular event and an exchange of information. They form the 4
ucts and services attract. However, visitor statistics provide a better picture social nucleus that represents an industry reflecting a sense of belonging
of the quality of an event. and a community spirit. They demonstrate demand on a regular basis. All
the same, trade fairs are not attended by regular customers only. The ratio
5 of first-time trade visitors is 30 %. Thus, exhibitors and organisers are con-
5
Visitor surveys
stantly required to convince new visitors of a trade fair’s benefits.
Exhibitions companies release trade visitor breakdowns conducted by inde-
6 pendent market research organisations. Provided these surveys are con- The amount of time trade visitors spend at a trade fair is an indicator of the 6
ducted in accordance with the standards of the Society for Voluntary Con- range and quality of the products and services on offer. The more important
trol of Trade Fair and Exhibition Statistics (FKM) they are also published the topic, the greater the appeal of the products on display and the longer
7 in the FKM report and can be found in the AUMA/FKM online database at the distance trade visitors must travel to a fair, the longer they stay. Accord- 7
www.auma.de or at www.fkm.de. ing to a survey conducted by AUMA on trade visitor behaviour, domestic
trade visitors spend an average of six hours at German trade fairs. That
means they have a tight schedule, which is also dictated by wanting to save
8 The trade visitor breakdowns provide information collected from polling
on overnight expenses. Trade visitors from abroad explore a fair’s products
8
carried out at the event, either through interviews or at computer terminals.
They contain information on where visitors come from, their job positions, and services more often over a period of several days.
9 the industries they represent, the size of their company, their decision-mak- 9
ing authority, how long they stay at the fair and how often they attend, etc. FKM has also designed a survey that provides breakdown information on
the general public, for events that mainly target the consumer. This also
These surveys indicate which audiences an event attracts and whether contains information on where visitors comes from, how often they attend
10 they correspond with the audiences a company intends to target at the fair. a fair, as well as information on gender, age, their job position, the size of 10
Obtaining exact information on the type of visitor who attends a particular their household and their purchasing and ordering habits.
trade fair is also important for the design of the stand and one’s choice of
A1 employees at the fair. The job positions held by the trade visitors in ques- A1
tion, their responsibilities and their decision-making authority provide an
initial overview.
A2 A2
30 314 Selection and decision-making criteria Successful Participation in Trade Fairs
I FKM visitor profile analysis –Basics (result of all visitors) FKM visitor profile analysis – Additional questions I
Total number of visitors
1 1
___ % Additional questions for trade visitorsr Additional questions for private visitors
A1 Region of residence A2 Position in the company/organization B1 Economic sectors C1 Sex
Domestic total ___ % Entrepreneur, co-owner, freelancer ___ % Male ___ %
Managing director, board member, Female ___ %
Of which according to Nielsen:
2 Nielsen 1
Bremen
___ %
___ %
Nielsen 4
Bavaria
___ %
___ %
head of an authority etc.
Area manager, works manager, plant manager,
___ %
B2 Influence on purchasing/procurement decisions C2 Age 2
branch manager, head of public office ___ % Decisively ___% Up to 20 ___ %
Hamburg ___ % Nielsen 5+6 ___ %
Department head, group head, team leader ___ % Collectively ___% Over 20 up to 30 ___ %
Lower Saxony ___ % Berlin ___ %
Other salaried staff, civil servant, skilled worker ___ % In an advisory capacity/organization ___% Over 30 up to 40 ___ %
Schleswig Holstein ___ % Brandenburg ___ %
Lecturer, teacher ___ % No ___% Over 40 up to 50 ___ %
Nielsen 2 ___ % Mecklenburg-
3 North Rhine-Westphalia___ %
Nielsen 3a ___ %
West Pommerania
Saxony-Anhalt
___ %
___ %
Trainee
Other position
Student
___ %
___ %
___ %
Pupil/student
Other not gainfully employed
___%
___%
Over 50 up to 60
Over 60 up to 70
___ %
___ % 3
Hessen ___ % Nielsen 7 ___ % Over 70 ___ %
Other not gainfully employed ___ % B3 Area of responsibility
Rhineland-Palatinate ___ % Saxony ___ % C3 Size of household
Hausfrau, -mann ___ % Management ___ %
Saarland ___ % Thuringia ___ %
Rentner, Pensionär ___ % Research/development/design ___ % 1 person ___ %
Nielsen 3b ___ %
4 Baden-Wurttemberg ___ %
Total foreign: ___ %
___ %
___ %
Manufacturing, production, quality control
Buying/procurement
___ %
___ %
2 persons
3 persons
___ %
___ % 4
Finance/accounting, controlling ___ % 4 persons ___ %
davon: EU ___ % Information and communication technology ___ % 5 persons or more ___ %
Rest of Europe___ % Organization, personnel, administration ___ %
Africa ___ % C4 Buying or ordering capacity
A3 Frequency of visits to the trade fairs Marketing/sales/advertising/PR ___ %
5 North America
South & Central America
Middle East
___ %
___ %
___ %
Previous event
Earlier events
___ %
___ %
Logistics: storage, material management,
transport ___ %
Purchase or order made or intended at the
exhibition 5
Maintenance/repairs ___ % Yes ___ %
South-East-Central Asia ___ % First visit ___ % Other area ___ % No ___ %
Australia/Oceania ___ % Maintenance/repairs ___ % Maybe ___ %
Student ___ %
6 The five countries with the highest visitor shares
__________________ ___ %
Other not gainfully employed
___ %
___ %
Follow-up business
Intent to buy at a later date
6
__________________ ___ % ___ %
___ % Yes ___ %
__________________ ___ %
No ___ %
__________________ ___ %
Maybe ___ %
__________________ ___ % B4 Size of company/organisation
7 Number of employees::
1 -4 ___ % 500 - 999 ___ %
7
Distance to home:
Less than 50 km ___ % 5 -9 ___ % 1,000 and more ___ %
More than 50 km up to 100 km ___ % 10 - 49 ___ % Student ___ %
More than 100 km up to 300 km ___ % 50 - 199 ___ %
8 More than 300 km ___ % 200 - 499 ___ % Other not employed ___ %
8
B5 Length of stay
Average length of stay ___ days
9 9
10 10
A1 A1
A2 A2
32 33You can also read
