Page 375 - Introduction to Business

CHAPTER 10 Developing the Promotion and Distribution Mixes 349

see the product. Products can be demonstrated at trade shows. Prospects can actu-
ally try out products in which they are interested.
Trade shows provide immediacy. If a prospect becomes interested in a product,
he or she has someone right there who can answer questions. In addition, since
competitor products are frequently displayed at trade shows, prospects can make
meaningful comparisons right there. Trade shows can attract large numbers of first-
time attendees, many of whom might be new prospects for exhibitors’ products.
Exhibitors at trade shows from the communications industry found that 44 percent
of visitors to their booths were first-time attendees; 36 percent of computer
companies’ trade-show-booth visitors were first-timers. 6
Trade shows are not as expensive as other ways to promote products. It has been
estimated that the cost of contacting one prospect at a trade show is only one-third
the cost of a sales call. Data and Securities group calculated that it costs $625 to get
one sale from a trade show prospect, compared to $1117 through other means. 7
Trade shows generate sales, so a company may get a large percentage of its
annual sales from one trade show. For example, Azanda is a semiconductor firm
that provides high-tech data traffic management services for public telephones and
other industries. Exhibiting at the Networld + Interop 2002 conference in Las Vegas,
it generated three new customers worth $3 to $5 million in annual sales. 8

LEARNING OBJECTIVE 2
List ways to improve the effectiveness of trade shows.

In order to make a trade show exhibit successful, companies need to
• Promote their presence at the trade show to customers and prospects. Infor-
mation about their company, the products that will be on display, where in the
exhibit hall the exhibit will be located, and any receptions open to attendees
needs to be communicated before the trade show begins. Iomega Corporation,
which makes computer drives, used its logo and telephone number on 400
local cabs, a compelling exhibit booth, and a preshow promotion for its exhibit
at the Comdex Computer trade show in Las Vegas. A graphics design firm gave
9
away bags of popcorn at its trade show. The irresistible smell drew hundreds of
prospects to its booth.
• Generate leads, that is, companies that may purchase the exhibitor’s products.
• Qualify all leads. This means the ones most likely to purchase must be sepa-
rated from those unlikely to purchase.
• Follow up good leads—and soon after the trade show. This usually takes the
form of a sales call being made on those prospects that look most promising.
Surprisingly, it has been estimated that 70 percent of exhibitors fail to follow
up on their leads.
• Set objectives for the trade show. The number of visitors, number of sales
leads, number of units and dollar value of sales, and profit are examples of
objectives. When companies evaluate trade shows, they need to determine if
these objectives have been achieved.
• Make last-minute checks including seeing that the merchandise to be dis-
played has arrived, the accompanying sales literature also has been received,
and booth personnel know their assigned times and stations.

reality Make a list of the various facilities in your hometown or city that you
CH ECK believe would be appropriate for hosting a trade show. What factors
did you use to develop your list?

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