Chapter 3.3. Exhibitions: classification, types. Destinations

On completion of this chapter students should:

- classify different types of exhibitions

- appreciate the objections of a particular type of venue

Exhibition could be defined as:

1. a public display of art, products, skills, activities, etc. a judo exhibition

2. the act of exhibiting or the state of being exhibited

3.

a collection of things (goods or works of art etc.) for public display

Practically any product or service imaginable, from an offshore oil rig to a time-share investment, if it can be bought and sold, will have its own regular exhibition or exhibitions somewhere in the world. These events are 'shop windows', where, on a regular basis, those who produce the products or services can display them, explain them, and sell them to potential customers.

Exhibitions of this type, also known as 'expositions', are marketplaces of prod­ucts and services - usually lasting from a few days to a week - that bring together j two groups of people: those with something to sell (the exhibiting companies and organisations) and those who attend with a view to making a purchase or getting information (the visitors). Both groups create a high level of demand for travel services, catering and accommodation at the destination. They are usually joined by another group - people in the print and broadcast media, since exhibitions are often extremely newsworthy events, with exhibitors often choosing them as occasions on which to launch new products, for example.

Trade fairs in history

Modern trade fairs follow in the tradition of trade fairs established in late medieval Europe, in the era of merchant capitalism. In this era, produce and craft producers visited towns for trading fairs, to sell and showcase products.

Types of exhibitions

Exhibitions may be divided into two categories: trade fairs/shows and consumer fairs/shows. The former are business-to-business events, usually restricted to those seeking to purchase products or services for use in their businesses or professions, e.g. printing equipment, forklift trucks, or specialist software packages for accountants. Consumer fairs are generally open to the public, and feature any products or services that people are prepared to purchase, from cars and kitchen appliances to holidays and investment opportunities.

Since the signing of the 1928 Convention on International Exhibitions, the International Exhibitions Bureau has served as an international sanctioning body. BIE-approved expos are divided into a number of types: universal, international or specialized.

The same exhibition may be open to both the trade and the public, sometimes on separate days, with often the first day or two being restricted to professionals and the press. However, both types of exhibition differ in the patterns of travel they stimulate. Public exhibitions attract large numbers of visitors, but most of them attend for only one day and are drawn mainly from the local or regional area. Very large or specialised trade fairs, on the other hand, generally attract visitors and exhibitors from a number of countries, and are regarded as important stimulators of inbound tourism for the host nation.

Trade fairs and exhibitions often become regular, usually annual or biennial, events held in the same location, or in rotation between a number of cities.

The global impact of travel for the purpose of attending an exhibition is consid­erable. Europe alone hosts over 3000 large trade fairs every year, attracting millions of visitors and hundreds of thousands of exhibiting companies to the cities in which they take place /

Differences between fairs and exhibitions

A trade fair (trade show or expo) is an exhibition organized so that companies in a specific industry can showcase and demonstrate their latest products, service, study activities of rivals and examine recent trends and opportunities. Some trade fairs are open to the public, while others can only be attended by company representatives (members of the trade) and members of the press, therefore trade shows are classified as either "Public" or "Trade Only". They are held on a continuing basis in virtually all markets and normally attract companies from around the globe.

In contrast to the trade fair, the exhibition is directed not at the professional visitor but at the private consumer. The main goal of an exhibition is direct selling and sales promotion.

Uses of exhibitions

The main purposes of exhibitions are to generate sales, promote new products, maintain or create industry contacts, and to act as places that facilitate the exchange of ideas and information between exhibitors, industry experts and visitors. Thus, from the point of view of those exhibiting at trade/consumer shows, these events are a key component of their communications and marketing mix.

Exhibitions are generally recognised to be a cost-effective way of communicating information between buyers and suppliers. Without this important form of two-way communication, the supporters of exhibitions maintain, the efficiency of trade would be diminished severely. As an advertising medium, exhibitions are said to play a vital role in the marketing of goods and services. In this way, they can be used to stimulate domestic trade and promote exports when they are attended by foreign visitors.

Advantages to visitors

Exhibitions offer a number of advantages to both exhibitors and visitors. For visitors seeking to make a purchase or find out about a particular product, consumer and trade fairs bring together under one roof an extensive range of goods or services of direct interest to them. Such events represent a form of three-dimensional advertising where the product can be seen, handled, compared, assessed by demonstration, and (depending on the product) even smelled and tasted. One trade fair organiser has expressed this particular advantage vividly: 'When you're buying something expensive, there are times you've just got ro kick the tyres.'

In addition, since exhibitions also offer visitors the chance to have face-to-face discussions with those who are highly knowledgeable about the product or service on sale, they are able to get authoritative answers to their technical questions from these experts. Many trade fairs in particular include a series of seminars or confer­ences of interest to those attending, often with the participation of one or more luminaries in the specialist field. For the potential visitors, these can represent important added value, further encouraging them to attend.

Advantages to exhibitors

For the companies who exhibit, having a presence at an exhibition seldom comes cheap. The stand - or 'booth' in the USA - has to be hired or bought and set up. It has to be manned by staff, whose travel and accommodation costs have to be paid. Nevertheless, the advantages to exhibitors are clearly considered to be worth the investment. Klein (1999; p. 1) describes those advantages:

In many industries, the trade show has become a must-seize market opportunity. It's a time to meet prospective customers, get valuable feedback on your product or service, and close sales. A trade show enables you to develop trust and rapport with your customers. Once you have that, you can leave voice-mails and e-mails with a face behind them.

Despite the outlay of time and money, a trade show is still a very economical way to build your business. A national survey done by Data & Strategies Group Inc. showed that closing a sale with an exhibition lead costs an average of $625 and takes 1.3 follow-up calls. Compare that with the average $1,117 cost and 3.7 phone calls needed to close a sale otherwise. And ... you see immediately what customers think of your product.

It is this cost-effectiveness and the opportunity that exhibitions give companies [o actually meet their customers or potential customers face to face that explain partly the ongoing appeal of trade fairs as a marketing and sales technique. But there are other advantages. Beyond actual sales or generating potential leads, these events also provide companies with the opportunity to increase their visibility in the market, to improve their image, and to gain immediate feedback on new products or services.

Further reasons for companies spending so much on attending these events year after year are linked to the fact that trade fairs are places where competing com­panies and organisations can also meet each other face to face. This means that exhibitions give exhibitors an ideal opportunity to analyse the competition, which they often do by visiting each others' stands as 'mystery shoppers', to take note of new products, staff knowledge and behaviour, etc.

Secondly, as Klein (1999; p.l) points out, exhibitors tempted to cut costs by staying away from these events do so at their own risk: 'If you think you can skip the whole affair because all your deals are done elsewhere, think again. Trade shows become a gossipy society unto themselves, where your competitors might float rumours in your absence that your company is ready to bite the dust.' This suggests that simply by being there, companies are able to defend themselves against rumours of their being in such financially dire straights that they cannot afford to attend - les absents ont tonjours tort !

Advantages to destinations

Whatever the reasons behind the popularity of exhibitions, the economic benefits generated by these events for the places where they take place are considerable. Many of these benefits arise from the spending of the exhibition organisers, visitors and exhibitors on'*avel, accommodation, recreation and entertainment at the des­tination. National or international exhibitions, in particular, may have considerable impact on the host economy through the number of visitors and exhibitors staying in serviced accommodation for several days. As we also saw in the case of travel for conferences and other types of meetings (Chapter 3), the ancillary spending on this form of business tourism brings benefits to a wide range of suppliers operating at (he destination. In addition, cities often use the hosting of large international exhibitions as a way of creating for themselves the image of a centre of industrial or commercial expertise.