The Dynamics of Exhibitions (Trade Show dynamics 101)

 

Exhibitions are trading floors, where sellers are promoting their products and services to the visitors.  There are many varieties of exhibitions, more of which will be discussed in greater detail in the next chapter.  But by making the visitors more targeted, and the exhibitors more similar, a better result is often achieved. 

 

Example:

Let me explain this further. In many Asian cities, people have a specific need to buy a product and go to a street where there are different shops selling the same kind of products.  It’s like shopping for choice and variety.  When I need to buy a water heater for my bathroom, I could visit several shops to compare price, quality and service.  I would look for a durable water heater with good warranty for my bedroom and a cheap one for the guest room, as it is used only a few days a year. This is how I shop and it would take me a visit to several shops and a great deal of time to complete my requirement.   If we were to relate this to an exhibition, I would make a one stop at a home supplies show, making my selection and processing my orders.  All this could be achieved in a shorter time (1 visit required only) and I would most likely have a wider choice. 

 

If the exhibition was a water heater show, I know I would be guaranteed of choice, saving me time and money.  If there was no show, I would have to visit maybe a dozen shops, taking me 1 to 2 days.    If I were to go to a home appliances show, my chances of success COULD be limited, because I might meet only 2 or 3 water heater suppliers even though the exhibition has hundreds of exhibitors selling different products.

 

As a result, as more markets mature, you will see more NICHE MARKET shows occurring.  This is very visible in trade shows throughout Asia where construction shows have separated into, for example, a flooring show and a construction material supplies show.   This is generally a symbol of a development of a specific industry.  

 

I.       Various types of exhibitions

 

An exhibition is a generic name for all kinds of fairs that exist today.  Although this book covers mainly trade exhibition, it is necessary to understand its fundamental differences.   Exhibitions can be segregated into 4 different groups; namely: 

Trade Shows

Convention Exhibitions

Consumer Shows

Informative Exhibitions 

 

Trade shows and Convention exhibitions are rather similar with the exception on the visitor marketing and objectives.  Both are mainly organized by the same companies/organizations in Asia. 

 

A typical characteristic of most shows is that business is generally conducted after the event.  The exhibitors would meet interested parties in their booth and provide basic information.  The exhibitor would then qualify the visitor as a 

potential or non-potential client and do a follow-up after the exhibition has finished. 
 

A.   Trade shows
 

Trade shows or Trade exhibitions comprise the majority of the exhibition industry.   The word “trade” refers to the business element between businesses often referred to as “Business to Business” (or B2B).  The principle is that businesses exhibit their products and services for other businesses to engage or acquire. Companies sell to other companies for them to make products or offer services.  This can also be compared to “wholesale” versus “retail”.  In wholesale, the seller sells to another company (like MAKRO only sells to companies) whilst retail sells to consumers (like Tesco Lotus).

 

Trade shows are generally industry specific (niche market) and marketed to a specific audience of potential buyers.  For example, an electrical engineering show would showcase supplies for electricians and target electrical engineers. 
 

B.   Convention exhibits
 

Convention exhibits are exhibitions organized alongside a convention (a convention is a large conference).  Typical to Convention exhibitions is that there is generally no acceptance for outside trade visitors. The exhibition is generally closed to visitors, and exclusively directed towards the conference delegates.  The target “visitors” are the delegates who are – because they are participating in the congress, pre-qualified.  As such, convention driven exhibitions are often a good way to guarantee success as you are well aware of who will be there. If these are the people you want to sell to, then the opportunity is there.

 

Example:

If your company is selling product X to bus drivers, you will exhibit at an automobile show, for example.  You will meet many visitors, but not all of them will be bus drivers.  However, if you exhibit at the “Bus Driver Convention” every visitor at your booth is a pre-qualified buyer.

 

Pre-qualified means  your clients are rated as "no-client", "client", and "potential client".  A pre-qualified visitor means that the visitor has already passed the basic criteria as “client/potential client”.  A bus driver going to the convention has been rated as a client/potential client simply by being a bus driver.
 

C.   Consumer shows
 

Consumer shows are classified as B2C or “Business to Consumer” whereby consumer products are sold directly over the counter.  It is characteristic of consumer shows to have a theme (such as Christmas Fair) and products will have a wide selection similar to that of a shopping mall.   Business is done on a very impersonal matter (buyer and seller do not know each other) and goods are exchanged immediately. 

 

D.   Informative exhibits
 

Informative exhibits are mainly displays for information dissemination, such as museums or information displays on projects.  These kinds of exhibits are considered non-commercial in nature and only serve the purpose of education and culture.  An art exhibition, for example, would be an “Informative Exhibition” if it was to show the works only, but if the works were for sale to interested people, it would be classified as a consumer exhibition. Moreover, if the exhibition was targeted to gallery owners who then sell the art pieces to other gallery owners, it would be classified as a Trade exhibit.

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