Trade Shows

A trade show is an event where companies that are involved in a certain industry gather to exhibit their products, learn about current trends in their industry, and gain knowledge about their competitors. Trade shows provide opportunities for selling, reinforcing existing business relationships, and launching new products. These events can range in size from small regional shows featuring fewer than two dozen participants to massive national shows, which may draw hundreds of exhibitors and tens of thousands of visitors over a period of several days to a week.

During the 1990s, business analysts, consultants, and participants alike debated whether the surge in electronic commerce and Internet purchasing options might soon render the trade show an irrelevant relic of a bygone business era. But, after a slow down in growth in the first three years of the 21st century—due to post 9/11 decline in travel and a general economic slowdown—the trade show industry has grown steadily. These trade shows accounted for more than $100 billion in annual direct spending and attracted nearly 125 million individuals in 2004. "In many industries, the trade show has become a must-seize marketing opportunity," stated Business Week. "It's a time to meet prospective customers, get valuable feedback on your product or service, and close sales."

The continued vitality of trade show exhibitions provide small businesses with excellent opportunities to stand on equal footing with far larger competitors. For small companies with limited marketing budgets, trade shows can serve as an economical and effective pathway to new clients and increased industry visibility. Moreover, trade shows provide entrepreneurs and their small business managers with priceless opportunities to gather information about new industry innovations and competitor products and/or services.

SELECTING THE APPROPRIATE TRADE SHOW

The first step in establishing a presence at a trade show is choosing the right show. Finding the show that best meets your company's needs is crucial, since exhibiting is a costly proposition. Attending the wrong show is a frustrating waste of time and money. In order to avoid committing to a trade show that provides little in the way of new business or contacts, companies can take several precautions:

Crunch the Numbers. Businesses should request detailed statistical and other information on past trade shows from the organizers.

• What was last year's attendance? Was the show visited most by serious buyers or by browsers? Savvy small business owners are aware that some trade shows pad their attendance numbers by counting every person who walks through the doors, including exhibitors and repeat visitors.
• Is there demographic data available on attendees? For example, how old is the average attendee? Male or female? What is his or her income?
• Who else will be exhibiting? Will your competitors be there?
• How stable and successful is the show promoter? Are they experienced in managing a show and delivering an audience, or is this a new, untested exhibition?
• What will the cost be? Expenses include booth space (typically about 25 percent of your expenses); furnishings, equipment, and other exhibit expenses (30 percent); utilities (20 percent); transportation of staff and materials to and from the trade show (15 percent); and pre-show promotions (10 percent). Booths that incorporate new electronic technologies (Webcasts, videoconferencing, etc.) will add to the expense as well. Some companies that exhibit infrequently rent displays—typically portable booths that come in easy-to-assemble kits—rather than invest in booths.

Identify target audience. If you are a small vendor with a new and exciting product seeking national distributors, then the goal would be to attend a national show with high visibility and attendance by all key players. If, on the other hand, you have an existing product that you want to expose to new markets, you would target potential buyers. For example, if a company decides that one of its software packages—originally designed for and used by the publishing industry—also would be useful to teachers and educators, the sensible strategy would be to attend trade shows aimed at teachers instead of computer software industry shows.

Scout potential shows. Experts counsel entrepreneurs to scout potential trade shows before committing resources to a booth. Business owners can often get an accurate sense of a trade show's value simply by visiting a show, sponsoring a show-related event, or participating in a show-related seminar or conference. All of these avenues can be excellent ways of gauging the quality of the attendees.

Weigh value of exhibiting. Business owners are also urged to consider whether or not he/she should even be exhibiting at trade shows. A very small business with limited funds and a clear business model might decide that the best route to go is direct mail and promotions to a well-defined target audience. On the other hand, a business that is attempting to publicize an established product with low profit margins might well decide that attendance at large national and regional shows with heavy traffic is a good strategic move. And some industry sectors—such as high tech, transportation, communications, and manufacturing—place a heavy emphasis on trade shows.

PREPARING FOR A SUCCESSFUL TRADE SHOW EXHIBIT

Once a small business owner has decided to attend a specific trade show, there are steps that he or she can take to ensure that it is a successful and profitable endeavor. Of course, shows will vary in content, character, and tone from industry to industry, but for the most part, these guidelines can be followed no matter what field your small business is in.

Set specific and measurable goals. Perhaps the most important first step to take is to approach the show with enthusiasm and treat it as a sales opportunity and not a money drain. To take advantage of the opportunity, set specific goals. If the purpose of the show is to gather leads, then set a number in advance that would make the show, in your mind, a success. Compare actual leads gathered to that target number to gauge whether or not the show was worthwhile.

Publicize your involvement. According to the Trade Show Bureau, 45 percent of trade show attendees are drawn to a company's exhibit as the direct result of a personal invitation (via direct mail, e-mail, or telephone), trade journal publicity, or pre-show advertising. A trade show is worthless unless prospective customers visit the booth, and the best way to ensure that those visits occur is to make them aware of your location on the floor. Indeed, industry surveys indicate that about 75 percent of all trade show attendees make out their schedules in advance of arrival. This is an important step, then, so companies should make sure that they allocate sufficient funds for marketing needs.

Prepare personnel. Staffers manning trade show booths should be personable, well-informed, and well-trained to demonstrate and sell your product and/or service. Conduct a pre-show meeting with all key personnel who will be a part of the show, from employees who will spend their time at the booth to the shipper who will send your products to the show and be responsible for set-up. Let each person know what is expected of him or her at the show, and make sure that they know about all pertinent facets of the effort, from the location of promotional brochures to products that should be highlighted. Other assignments, like observation of competitor's booths and materials or breaking down the booth at the end of the show, may be assigned to specific people.

SUCCESSFUL EXHIBITING

"Getting attention on a crowded show floor isn't easy for a newcomer," admitted Business Week. "However, you can create a respectable-looking booth inexpensively without being tacky: Buy good quality, three-sided skirts for your tables and portable banner stands for signage, and make flyers on your computer to set on plastic literature racks. Don't clutter the space with lots of giveaways, but do hand out your business card and a small gift with your logo and phone number on it to qualified leads."

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