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... ic follow-ups, this yielded bonus and other wise unexpected sales. Pisconeri does not have an allocated promotional budget; their spending on trade shows is based on whether the company will be receiving new stock for the next financial year. From past experiences, the average account for trade shows range from $ 2000 to $ 3000 per show. The directors believe it is not cost effective hiring professionals to set up the trade show; this is because between them, they encompass a great deal of experience in attending and participating in trade fairs.
The directors believe that the staff need to minimal knowledge about setting up, but rather concentrate on specific product related information. At the exhibit there will always be a senior manger representing Pisconeri, this has a two-fold advantage. The first is due to the nature of the business where answers and decisions need be made on the spot. The second is a mark of respect to the prospects, if the client has traveled a distance to be at the show, then the directors feel as though they owe a duty of care to be there. Pisconeri measured the effectiveness of the trade shows by conducting a post show analysis, this consists of the customers awareness of their products and services over an allocated period of time. Pisconeri also considers the number of warm leads made at the show as a sign of success; the more leads, the more successful and vice versa.
However cold leads are followed up on as well through personal mail out and brochures. During the past exhibitions there were generally three to five competitors, so the competition to attraction is high. The company combats this problem by offering colorful brochures and on sight sampling. Pisconeri has found trade shows to be an ineffective form of promotion. The show has little affect or impact on the company, the result and achievements poor, thus Pisconeri has decided that the use of trade shows will be kept to a minimum. Even though the domestic trade show did not produce results, Pisconeri is still optimistic about entering a joint venture with other companies to participate in an international trade show or overseas trade fair.
The motivation behind this is that Pisconeri is still interested in expanding their export markets. C. N. A. International Import And Export Co.
Response from Mr Chin Qin (Director) from C. N. A. International Import And Export, understanding and analyze trade show relevance to this company. C. N.
A. only imports and do not export, they have been importing for the past five years. C. N. A.
is a member of the Australian Gifts And Housing Association (AGHA). C. N. A. has taken part in participating in majority of the trade shows held by the trade association. The reason C.
N. A. has chosen AGHA because the other members of the association are in a related industry. C. N. A.
started to exhibit because it was the only efficient way of generating new clients. For every show the company expects to generate new leads and sales, the outcome of the trade shows matches with the desired objectives that needed to be achieved. In each trade shows the objectives are achieved, but the scale of each objective is define mainly based upon the amount of sales in monetary terms. The average money spent at the trade show would be $ 3000; this includes buying booth space and shelves. Because C. N.
A has no set promotional budget, 100 % or their promotional money would be spent on trade shows, as this is the main income generator method for the company. From these monies spent C. N. A.
would recover it from sales made during an allocated period of time. The owner felt that there was no need for expert help on setting up in the trade show, as this would occur additional costs. Because this is a small business it is very important that they watch their expenditure, they have to cut down on costs where possible. This would mean that they have no staff and would exhibit at the show themselves.
Both the husband and wife has little experience in the past about setting up at the show, now they have a great knowledge from experience, the important factors to them is the fact the senior manager owner should be their and talk to the prospects showing a thorough understanding of the products. The success of the trade show would be measured by the amount turned over during the show that is how much was sold during the show. Promotional brochures were used during the exhibition, this included product range and prices of each selection. Because C.
N. A. details is on the brochures, there is no need to follow up on the leads afterwards. The other reasons for this is because in the past leads were followed up but no sales were made, the exercise proved to be unsuccessful. The trade show have a large impact on the company as, every trade show C. N.
A needs to generate an amount of sales in order to be successful. The trade show is a core component for the success of the company because C. N. A. relies solely on trade shows in order to generate sales. There were no competitors at the show as C.
N. A. carries due to the fact that the company has sole rights to the selected line of figurines and the only distributor in Perth. C. N. A is only a small business that that generates extra side line income for the husband and wife team; there is no great concern to grow the company more then where it is at the moment.
Thus C. N. A would not consider a joint venture with any other companies to exhibit overseas. Analysis of Respondents answer to Questionnaires Trade show has become one of the popular methods on marketing the companys product and services these days (Gopalakrishna, Listen et al. , 1995 & Jacobson, 1990). Each company, which are exporting and importing appears to be attracted to join trade show. However, indifferent attitudes towards this promotional tool results the different reasons and executions of trade shows.
Even though trade show can be used as an entry modes for overseas market, in fact, many companies, named South Seas Trading Pty Ltd; Pisconeri Fine Foods and Wine Merchants Pty Ltd; and C. N. A International Import and Export Co, are more likely to use them as a supporting tool to increase the company exposure and the customer awareness on their product and services once they have entered into a new or local market. Unfortunately, not every trade show can be guaranteed to be success (Kevin & Cron, 1987, Bellizzi & Lipps, 1984). The matter of success or not, really depends on the objectives of the company itself. Based on fact, South Seas Trading Pty Ltd and Pisconeri Fine Foods and Wine Merchants Pty Ltd find themselves succeeding in trade shows they have a clear concise objective which is to capture more clients.
The other hand, C. N. A find that the success of the trade show truly depends more on the scale of each objective, which mainly based upon short term view of the amount of sales in monetary term, not based upon the number of clients or leads generated from trade show. Here, we can see that each company has different perspectives on defining the word success for themselves. Selecting the right show for the right product or services is another fundamental aspects to be concerned when the company decides to join trade shows (Bryant, 1994; de Costa, 1995; Raton & Gerald, 1997 and Cobb 1992).
This aspect is able to assist the company on achieving a better outcome resulted from each trade show held by the company. In fact, most companies are more willing to participate into any associations that have an industry relevance with their product or services, because they think that is the best way on finding out the right show for them, and they also believe those associations have their target market and able to give the right support for them. For example, South Seas Trading Company and Pisconeri have become members of FAL (Food and Liquor Association) and have participated in some FAL trade shows with the motive being to gain more recognition from their target market; C. N. A has joined AGHA (Australian Gifts and Housing Association) because the other members of the association are in a related industry. At the time the company decides to attend the show, they need to make sure that they are well prepared.
For this reason, they should analyze certain activities that need to be conducted for the show, for example: financial resources allocation, human resources required, and any additional marketing activities to be performed during the show. Here, budget plays an important role to determine how these activities will be performed. The more budget stated for the show, the more strategies and performances they can play with during the show. However, it does not mean that the bigger budget they have, the more likely they will succeed.
The important point in here is just that the company has to allocate the budget effectively in order to gain a success show (Ans off & McDonnel, 1999; Fletcher & Brown 1999 and Mone, McKinley & Barker 1998). Every company has different ways of allocating their budget for trade show. Some company might set this budget as part of their promotional budget, for example C. N.
A allocates 100 % of their promotional budget for trade show budget as it is the main income generator method for the company, however, other companies, for example: South Seas Trading and Pisconeri set the show budget as a separate figure apart from their promotional budget. Based on fact, small to medium size companies are willing to spend their money for trade show range from $ 2000 - $ 5000 with or without any condition included. The condition will be varied for the expenditure of buying booth space or stand, shelves, airfare, accommodation, and any other expenditure. Based on the budget stated above, small to medium size companies are more likely to have their human resource based upon their own employees rather than hire the outsider because their budget for trade show is not huge enough and it is the best way of saving their money and reducing the time wasted for teaching the outsider about the companys product and services. More over, these companies will not likely give any training to their staffs on conducting the show.
They believe that with the presence of the senior manager on the show and the knowledge of their staffs on the companys product and services, they are capable enough to handle the show effectively. In fact, Mr. Joe Than, The Director of South Seas Trading company, also stated that they had knowledge of the product but lacked experience in exhibiting at the show and did not seek training, they felt it was just a matter of monkey see monkey do. Besides of gaining the company exposure and customer awareness, trade show is also a battle area for every company to compete against their competitors in order to win their customers. This means that the stronger their marketing strategy, the more likely they will be able to achieve a better outcomes compared to their competitors. Because of this matter, it is necessary for the company to conduct certain marketing activities to win their battle in the show.
These activities include: handed out the company general brochure, samples, promotion discounts leaflets. Pisconeri Company also gives their customer some samples to try on site and take away for selected products with the reason to attract the crowd when they have to face lots of their major competitors in the exhibition. Without the assistance from these marketing activities, the company will face a really tough way to win the battle because they have no weapon to win the battle. Exceptionally, in the case w...
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