marketingmanagement international marketing An Academic Assessment of International Trade Shows By Michael R. Czinkota and Ilkka A. Ronkainen  [email protected]  [email protected] M ore than 24,500 trade shows yield an annual $100 billion in revenue worldwide, which means that even in this hyper-digital age, marketers and customers still find these events worthwhile. Here, we review the marketing medium. Executives surveyed on trade shows’ usefulness have said that exhibitions provide unique value not offered by other marketing channels. Firms appreciate the personal interaction with their stakeholders. Clients, in turn, can evaluate product matches. Local trade shows have narrow geographic limits in terms of both offer and demand. For example, the Hong Kong Brands and Products Expo exists to offer, on an annual basis, new products and information in the field of seafood. The focus is mainly on the local trade, which wants to acquire new goods, and many consumers who come for the free samples, good deals and new product surprises. Given the mostly low-key Chinese participants, little effort is made to offer translation, transportation or housing assistance. For large international trade shows like the Canton Fair (now called the China Import and Export Fair), such services are standard. The opportunity for marketers is to be visible and to connect with potential customers. Beyond the impact of displaying specific products, many firms wave the company flag. This facet also includes boosting the morale of the 24 firm’s sales personnel and distributors, particularly when they see and hear very positive customer responses. After identifying target audiences within a show’s attendees, marketers can tailor their demonstrations to suit them, and can identify new applications and obtain customer feedback. Trade shows also provide an excellent chance for collecting market research and competitive intelligence. According to Hannover Messe, an annual industrial fair in Germany, more than 86% of all attendees represent buying influences— that is, they are managers with direct responsibility for purchasing products and services. Of equal significance is the fact that trade show visitors are there because they have a specific interest in the exhibits. In international marketing, the opportunity to find an intermediary may be one of the best reasons to attend a trade show, particularly. A show is a cost-effective way to solicit and screen candidates to represent the firm, especially in a new market. For example, China’s booming economic development and rapidly growing furniture industry has resulted in increasing demand for U.S hardwoods. Most Chinese international furniture supply shows are concurrently held with furniture trade shows, thus serving as one-stop events for both attendees and exhibitors. Trade shows are quite expensive, and do not always directly and rapidly translate into new business. Linking purchases to shows typically requires a measurement time frame between three and six months post-show. Not recognizing show effects will shape the budgeting decisions of firms—no result, no money—so good activity records are essential to trade show management, as are links between show effects and show results. Business opportunities in highgrowth markets help expedite growth. The U.S. Department of Commerce’s International Buyer Program (IBP), a joint government-industry effort, recruited nearly 13,500 prospective buyers from international markets to come to U.S. trade events in order to meet U.S. exporters. For example, Pack Expo shows consistently welcome visitors from more than 120 nations and provide them with access to the latest technologies, as well as networking opportunities and education programs. As a result, the IBP is said to generate more than $900 million in exports. More than 49% of this growth came from U.S. firms that exported to a new market. According to Hannover Messe, an industrial fair in Germany, more than 86% of all attendees represent buying influences. … Of equal significance is the fact that trade show visitors are there because they have a specific interest in the exhibits. marketing news | April 2015 MN Apr 2015 1-65-edit-3-19-15.indd 24 3/19/15 4:41 PM INTERNATIONAL MARKETING marketingmanagement Further, the costs of closing a sale through trade shows are estimated to be much lower than closing a sale through personal representation. The average cost of making the first face-to-face contact with a potential customer through an exhibition lead is $96, compared with $1,039 without. Look at the whole picture. Make sure that your advertising, online marketing, media relations and PR are aligned with your overall marketing strategy, and be ready for the tide of multilingual players who want to understand what you offer. m MichAel r. cziNKotA researches international business and policy issues at Georgetown University. He served in trade policy positions in the Ronald Reagan and George H.W. Bush administrations. ilKKA A. roNKAiNeN is a member of the faculty of marketing and international business at Georgetown University. Their joint book is International Marketing, 10th Edition. April 2015 | marketing neWS MN Apr 2015 1-65-edit-3-19-15.indd 25 25 3/19/15 4:41 PM