Trade Shows & Sales Promotion

Trade Shows & Sales Promotion

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– 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

An inducement an extra

incentive to buy

An inducement an extra

incentive to buy

A tool to speed up sales

A tool to speed up sales

Targeted to different parties

Targeted to different parties

“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.”

“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.”

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

Long term Budget Allocations

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 centsSavings of $3.47 billionCoupon 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

• Sampling 7.78• Word-of-mouth 7.18

• Coupons5.91

• Advertising5.61

• Contests 1.24

“On a scale of 1 to 10, the following are the top five influences on the brand purchased by a consumer.”

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

Defined as prizes, gifts or other special offers

• Free-in-the-mail• In-or on-package• Store or manufacturer• Self-liquidating

Premiums

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