Why Trade Fairs Are Important For Export Marketing Are trade fairs still relevant? In this age of Internet and electronic commerce - how valid are trade fairs? Let's examine the problem threadbare
Trade fair is really a rather expensive marketing channel. Besides, substantial monetary investment, one should straighten out considerable logistics challenges. If you're participating in overseas trade fairs, challenges are manifold for example visa clearance, sorting out language barrier, on-site trade promotion etc.
Despite attending to each one of these troubles and spending considerable amount of cash - you're still unsure what kind of go back to expect on investment. Naturally, one would expect interest in trade fairs to decrease as time passes.
However, what we see on ground is simply opposite - trade fairs are becoming ever more popular all over the world.
In the united states alone, approximately 9,000 industry events or fairs attract over 65 million visitors each year. The Canton fair in China is a legend. Secretary of state for Commerce (China) continues to be organizing this fair since 1957 and is one among the most successful trade event all over the world. Spread over an area of 630,000 square meter, 15,000 exhibitors using their 41,000 stands display over 150,000 types of products to visitors from over 203 countries.
Trade fair is very popular among Indian manufacturers and exporters - a well known fact evident from resounding success of Indian Trade Promotion Organization (ITPO) who organizes more than 50 trade fairs and exhibitions each year.
Why Trade Fairs are So Important?
A survey conducted by the Emnid Institute (Germany) during October' 2004 with respect to AUMA (Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft) asked 500 companies to rate the significance of communication tools within their communication mix using a scale ranging from 1 = extremely important to five = totally unimportant. Following may be the result of this survey:
1. Trade Fair / Exhibitions 76%
2. Personal Sales / Field Service 75%
3. Direct mailing 62%
4. Advertising in Trade Magazines 59%
5. Public Relations 43%
6. Events 39%
7. Internet marketing 39%
The reason for such interest in Trade Fairs is not far to seek. Ask any marketing guru what he/she considers the most crucial elements of any marketing drive and the answer will be
Ability to reach right target group
Ability to pitch right products to right buyers
Opportunity to have interaction with actual buyers one-to-one and obtain feedback
Opportunity for Brand Building and PR exercise
Trade Fair - with all of its accompanying difficulties and expensive nature - fulfills each one of these marketing goals. In specific terms - a properly organized trade event delivers following benefits
Business lead generation - from buyers, distributors, agents
Market Intelligence - get competitor insights, market trends, innovation previews
PR Exposure - media, speaking opportunities, in-show awards
Opportunity to have interaction with various providers, industry associations, logistics partners, marketing channels etc.
fahaz berbeadasUnderstanding how a trade fair fits into your general market technique is key to exercising specific benefits your product/company needs and select matching trade shows and display media.
Trade Fair as Communication Tool
When it comes to effectiveness (range) and efficiency, trade fairs would be the communication tool of choice because they allow companies to have interaction with customers one-to-one and collect live market feedback.
Trade fair is a reflection of physical world - a replica of actual market within an simple to handle form. It brings representatives from the demand and supply sides of an industry together on same platform for any limited time period. It gives participants comprehensive market information and serves as a platform for business contacts.
Simultaneously, trade fairs allow companies to use complete selection of marketing tools that they have at their disposal. Instruments that promote sales - referred to as marketing mix - related to product, price, distribution and communication policy. Whenever a company participates in a trade fair, all of these areas are simultaneously activated and centered on specific target groups.
vasari fahazIn the event you Participate or Just Attend?
This can be a very crucial question every business must address. If you're making initial forays in a target audience and your main objective would be to understand market dynamics, then simple attendance may be the right choice. Regardless, it's best to go to a trade fair several times before deciding to participate. There are several trade fairs directory to help you locate right fairs for your products.
However, should you already have some presence in a target audience and plan to consolidate the forex market presence with more customers, agents, distributors, PR media etc. - then participation may yield rich dividend.
fahaz berlesFor example, if you have several customers in a target country, who're geographically dispersed - participation in a trade event can be a cost effective option as you are not just demonstrating commitment to the market, raising your profile and enjoying other advantages of exhibiting, but also you are potentially saving time and money from needing to fly from coast to coast to meet your visitors within their home territory.