Trade Shows & Sales Promotion Chapter One An Introduction to Integrated Marketing Communications Trade Shows & Sales Promotion © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Strategic Communication Roles Use public relations to build brand Use trade and business advertising to reinforce the brand Use internal and external events to amplify the brand Use print and electronic collateral to substantiate the brand

Definition A trade fair (trade show or expo) is an exhibition organized so that companies in a specific industry can showcase and demonstrate their latest products, service, study activities of rivals and examine recent trends and opportunities

What’s the big deal? Trade shows are an important part of marketing your company. The contacts and impression you make at a trade show can be critical to your reputation

Trade Shows & Events Third Party Trade Shows/Virtual Trade Shows Creates excitement Generates additional learning opportunities Enhances Positioning Company Sponsored Events Educates customers Builds partner relationships Strengthens analyst ties

Trade Show Facts & Figures Integral to the purchasing hierarchy … its more than leads 84% of attendees surveyed said they had no company contact 12 months prior to show On average 77% of visitors are key influencers/ decision makers. They want to engage 60% are part of a buying team .. financial & tech 75% actually buy as a result of visiting exhibitions They interact They try They get more information 72% said shows helped influence their decision But the average trade show attendee spends more than 2 minutes at very few booths Exhibit Surveys, Inc.       .           

Trade Show Attendees Education seekers Reinforcement seekers Solution seekers Buying teams Power buyers

Managing a Successful Show Develop a Strategy Plan Your Booth Build Promotions Post Show Organization

Have a Strategy Research the trade show Attendee profile Show's history. Space reservation dates Visit the show's website Highlight those key messages that fit the show & audience Determine the exhibit team Hold regular meetings to determine assignments and deadline and actions Use the timeline as your management tool

Booth Design The booth is at the heart of most trade show Defines and reflects the key message For large booths begin 3 months in advance Think about a “theater” to host presentations Bring in partners Focus on credibility and user information Build graphics around benefits

More Booth Design Tips Tailor displays to the Target Audience needs; address their issues Understand Essential Design Components Your company name should top the display Make words large and easy to read from far away Use graphic images to communicate; keep words to a bare minimum on your display Show how people benefit from doing business with you

Build Your Promotions Promotions Email, Direct Mail Extended the message Build booth traffic Email, Direct Mail Editorial Relations Pre-brief for major announcements At-show executive interviews. Promotional giveaways and literature

More Promotional Ideas Modify email signature Set key appointments Put a notice in every shipment Put your booth # in ads Banner ad the website Complete exhibitor profile Take advantage of any publisher-offered pre-show publicity opportunities Use social media to create booth buzz … think Twitter

Post Show Organization Distribute sales leads Inventory the exhibit; determine repairs Review final invoices; finalize expenses Prepare a final report detailing objectives met, show successes and areas for improvement

Sales Promotion “A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.” An inducement an extra incentive to buy Targeted to different parties A tool to speed up sales

Long term Budget Allocations 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ‘94 ‘95 ‘96 ‘97 '98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 Consumer Promotions Media Advertising Trade Promotions % of Total Promotional Dollars, 3-yr Moving Average $350B - Trade; $150B – Consumer = 60-75% of budget

Why? Growing Retailer Power – Leverage scanner data into discount & promo support Declining Brand Loyalty –Price more than value or convenience Increasing Promotional & Price Sensitivity – 42% of total unit volume of 12 packaged good products purchased through incentives Fragmented Markets – A primary vehicle for targeting specific regions, demographics and segments Gaining a competitive advantage – Using account specific marketing (co-marketing)

Consumer Promotions Coupons Premiums Contests and sweepstakes Refunds and rebates Sampling Bonus packs Price-offs Belch & Belch 2009

Coupons 323 billion distributed 3 billion redeemed (0.93%) Average value was 89 cents Savings of $3.47 billion Coupon usage 78% of households use 64% willing to switch brands Belch & Belch 2009

Household Coupon Usage Always – 20.7% Sometimes – 37.7% Rarely – 17.0% Never – 24.6% Belch & Belch 2009

Influencing Brand Purchases “On a scale of 1 to 10, the following are the top five influences on the brand purchased by a consumer.” Sampling 7.78 Word-of-mouth 7.18 Coupons 5.91 Advertising 5.61 Contests 1.24 Source: The Second Annual Survey of Consumer Preferences for Product Sampling, Santella & Associates (Http://www.santella.com/marketing.htm).

Problems with Coupons Reduced revenues Used by brand preference consumers “Necessary evil(80%)” $500 million illegally redeemed Mass cutting Counterfeiting Mis-redemption

Premiums Defined as prizes, gifts or other special offers Free-in-the-mail In-or on-package Store or manufacturer Self-liquidating

Keys to Successful Premiums Match premium to target market Carefully select the premium Pick premium that reinforces product and image Integrate premium with other IMC tools Don’t use premiums to increase short-term profits

Trade Oriented Promotions Contest & Incentives – Stimulate greater selling effort from resellers or sales personnel Trade Allowances – a discount to encourage stock, promotion, or product display Buying allowances – A price reduction during a fixed period Promotional allowances – Discounts provided for performing certain promotional activities in support of the brand … Intel Inside Sales Training – – Micrel audio tapes Co-op ads Horizontal – ads sponsored in common by a group Ingredient ads – Intel Inside Vertical – Mfg. pays for a portion of ad

Caution – Danger Ahead Short term sales increases at the cost brand building or product development Increased use negatively impacting brand equity, differentiation, benefits Non-equity building promotions that accelerate the purchasing decision process but contribute nothing to identity and image

The Answer Equity building promotion designed to communicate benefits, contribute to brand identity AND generate incremental sales Clearly defined objectives and measurable goals