TRADE SHOWS

Trade shows provide a forum for companies to display and
demonstrate their products to potential buyers who have
a special interest in buying these products. The compacted
time frame and concentrated location of trade shows are
cost-effective for exhibiting companies and convenient for
buyers.
Since the 1960s, trade shows have become an increasingly
prominent part of the promotional mix. Their relative
importance is reflected in the promotional
expenditures of U.S. companies. Larger amounts are spent
each year on trade exhibitions than on magazine, radio,
and outdoor advertising; only newspaper and television
advertising receive a larger share of promotional dollars.
The primary role of trade shows in the promotional
mix is that of a selling medium. Depending on the type of
product being exhibited, selling activities can involve
booking orders or developing leads for future sales. If
show regulations permit, they can even involve selling
products directly at the exhibit. Trade shows also serve as
vehicles for advertising and publicity. Exhibits can be very
effective three-dimensional ads as well as collection points
for names for direct-mail lists. They can also command
the attention of the news media, which regularly cover
shows in search of stories on new products and new
approaches.
Participating companies can also accomplish nonpromotional
marketing objectives at trade shows. Market
research data, for example, can be collected from show visitors.
Competitors’ offerings can be evaluated, and contacts
can be made with potential suppliers and sales
representatives.
More than 10,000 trade shows are held in the United
States each year, and the number is growing. Nearly half
of those are large business-to-business shows with 100 or
more booths. The smaller exhibitions include both
business-to-business and consumer shows.
Business-to-business trade shows focus on goods and
services within an industry or a specialized part of an
industry. They are targeted to wholesalers and retailers
with the intent of pushing products through the channel
of distribution. Most attendees at these shows are actively
looking for products and have the authority to buy. Examples
of business-to-business exhibitions are those in the
areas of health care, computer products, electronics,
The Detroit Auto Show is one of the premiere trade shows in the United States. © BARNES ALLAN/CORBIS SYGMA

738 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION
Trademarks
advertising specialties, heavy equipment, agriculture, fashions,
furniture, and toys.
Consumer trade shows, like business-to-business
expositions, also have an industry focus. They are different,
however, in that they target the general public and,
accordingly, are designed to stimulate end-user demand.
The kinds of products exhibited at these open shows
include autos, housewares, boats, antiques, and crafts.
Several trade show organizations provide information
and assistance to exhibitors and those considering exhibiting.
The Center for Exhibition Industry Research (formerly
the Trade Show Bureau) is an umbrella organization
that represents the entire exhibition and convention field.
It sponsors research on the effectiveness and cost-efficiency
of trade shows, has a resource center, and serves as
a referral point for more specialized groups. The International
Association of Exhibit Managers is the association
of individuals within companies who are responsible for
exhibit arrangements. Others, like the Healthcare Convention
and Exhibitors Association, concentrate on the organization and promotion of shows for specific industries.