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

2. 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

3. 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

4. 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

5. 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

6. 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.       .           

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

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

9. 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

10. 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

11. 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

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

13. More Promotional Ideas
Modify 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

14. 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

15. 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

16. Long term Budget Allocations0%
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

17. 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)

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

19. 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

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

21. 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
Word-of-mouth 7.18
Coupons
Advertising
Contests
Source: The Second Annual Survey of Consumer Preferences for Product Sampling, Santella & Associates (

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

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

24. 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

25. 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

26. 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

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