To be or not to be……

… once asked a well-known personage named Hamlet. In a few words Shakespeare outlined, perhaps, the most global and comprehensive question of humanity. People always wanted to know how to act in a certain situation, asked themselves hundreds of questions and made decisions.
So some time ago, the financial crisis broke out in the global economy. It was neither the first nor the last, but a regular one. There is nothing to be done against the economic theory, from time to time such troubles happen to the world economy and the current crisis was predicted by the experts yet in 2007 - 2008.
And we all have to somehow live and act in this situation, asking ourselves more Shakespearian questions. Naturally, the downturn in the economy dictates certain rules of life. "Spend less", "Think of how to concentrate your resources", "Give up luxuries", "Focus only on the essential”, “Make well-weighed investments”. People more often stay away from a candy counter in a department store, wait for an interesting movie to be released on DVD, but they can not refuse, for instance, the medicines they need!
Let us consider the enterprises of the construction industry, how often they had to make up difficult decisions! To continue some current project or put freeze on it, to invest in the development or postpone investment until a sunny day, to continue to buy high-quality but expensive materials or find a supplier with lower prices and quality, reduce staff or not, spend money on marketing or reduce expenses almost to nothing? Some companies give the correct answers, while others, unfortunately, do not.

To participate in exhibitions or not to participate?

We will try to help various companies give the correct answer to the questions of marketing, and to be precise, to the question whether it makes sense to participate in large international exhibitions such as STROYTECH? Or is this totally an unnecessary cost?
According to the recent research performed by the Center for Exhibition Industry Research (CEIR) Dallas, USA, the large industrial exhibitions must be listed in the companies’ general marketing plans. And there are some reasons for that.
First, regardless of the economic situation, the largest exhibitions have preserved a highly professional audience: specialists, technologists and engineers did not become less qualified because of the crisis, and their number did not reduce. The notable exhibitions are still visited by dozens of thousands people, and they still pursue professional interests. What has changed, it is only the attitude of visitors to the companies on display, they have to more carefully choose the future partner, they began to pay more attention to details, they try to save their money and the money of the companies they work for. Such an approach, in its turn, requires maximum concentration from exhibitors and increases competition.
Secondly, the economic crisis has minimal effect on the percentage of new visitors and the percentage of visitors who are ready to conclude the necessary contracts for goods and services
Third, the downturn in the economy has almost no influence on the behavior of visitors. Such indicators, as the interest of the audience, the average time spent at the exhibition, the turnout of newcomer visitors, the time spent at the stands of exhibitors, total purchases at the exhibition, and total number of positive decisions made up after the show.
All these reasons are relevant and must be considered when deciding about participation in a particular exhibition. But they do not have what is called an indication of immediate benefit expressed in monetary terms. In its study CEIR offers us a number of reasons which carry certain financial significance for the companies participating in exhibitions.
Among various indicators of advertising effectiveness, there is the so-called CPL (CPA), literally translated as "cost per lead". This index reflects how much an average company spends on commission of a transaction. Here we only consider the fact of acquisition of specific products and services by a potential customer. But in order to make a customer purchase, a company has to first spend some money. In fact, a company has to spend money in order to outline the target audience, organize a marketing company, find potential buyers, determine specific needs and priorities of customers and hold negotiations with them. Here to be included are the hospitality expenditures. Only after that a bargain can be concluded. All this has specific financial expression. The study determined the amount of money which a company spends on organization of the first meeting with a client: without exhibition participation this sum of money equals to $ 1000, and in case of exhibition participation it is a little more than $ 200. Thus, participation in the exhibition can save a company about $ 800 when organizing a personal meeting with a potential customer.
A large industrial exhibition accumulates a huge and most specific target audience. An exhibiting company has to pay for participation in the exhibition, relocation, accommodation, etc., and the above mentioned $ 200 include these costs.
For example, the International Construction Week STROYTECH draws about 10 000 visitors, 90% of them being industry experts. 18 year-long history of the exhibition, the image that it has earned for these years, support of the leading professional associations and governmental structures determine the highly professional audience to participate. The organizers’ approach to the exhibition marketing is also crucial. An average company spends around 200 - 250 thousand rubles on exhibition participation. This sum of money includes purchase of exhibition space (an average size of a stand of about 18 - 20 square meters), equipment transportation expenditures, relocation and some other costs associated with employees. The organizers constantly carry out the surveys among the participants concerning the visitors’ turnout and those of them who consummate deals. The visitors’ turnout thus varies from 30 to 50 people. Thus, one personal contact with a potential buyer costs approximately $ 200.
The research was conducted by polling sales managers and top managers of large companies of various business spheres.
Thus, large industrial exhibitions can save your money. It is up to you to decide whether to take this opportunity or not.

[Thursday, February 18, 2010]