International Trade Fairs As A Marketing Tool Workshop Peru 2014 Mko

INTERNATIONAL TRADE
FAIRS A MARKETING TOOL

Key factors for a successful trade fair participation
Trade fair participation: why do you go there?
Corporate Design PowerPoint | 22.05.2014 | SWITZERLAND GLOBAL ENTERPRISE 2
Find new customers, increase sales

Maintain relationships with existing
customers, partners and colleagues

Market observation: trends,
technologies, competitors

Find new suppliers / service
providers

Positioning of your brand

Training/Workshops/Experience

Networking

Having fun!

Is it worth the investment?
Trade fair participation is very
expensive

Calculate your trade fair budget
Participation fee: USD 2500
(with SIPPO: USD 1100)

Hotel: USD 500
(with SIPPO: USD 0)

Flight: USD 1500

Other expenses (marketing material,
food, etc.): USD 1000

Total: USD 5500

Export Marketing Plan
Important questions to be asked in advance:
What do you expect from the oversee market?
Why do you want to enter this market?
How much are you willing to invest?
Financial resources and manpower
For how long are you willing to invest?
How will you secure the necessary funds for this project?
When do you expect to regain your investment?
Market selection: know your Market
Ask yourself questions like:
Where do I have existing customers?
An existing network?
How stable are the regions?
Potential to growth?
Do we have the language skills needed?
A suitable product?
Is there enough demand?
It is important to understand regional differences! You must
understand the differences in values, customs, languages and
currencies.

Market selection: know your Market
Define your segments (target Groups):
Are your products more suitable for:
foreign individual travellers / free independent travellers (FITs)?
for package tourists?
group series?
special interest groups?
Or for all of them?
Place: your Markets
Appoint your business field regionally:
In which markets is it most likely to be successful?
The domestic market?
The neighbouring countries?
The rest of the Latin American Market?
Overseas Market?
North America?
Europe?
Asia?
Others?

Know your Market
Market Competitiveness
The Europe source markets for tourism are traditional markets where competition is
very high.
- Tour operators and intermediates hold strong positions in long haul markets.
IT IS A BUYERS MARKET!
- They control distribution channels and very often they even dictate the prices.
- Companies are often faced with many competing service providers.
- You need to invest in long-term relationships
- Product differentiation is low and new products are easily copied.
- European Tourists come once or twice in a lifetime.
- To attract customers, companies have to make sure that they are different and
unique, both in product offer and in the services provided.
- It is crucial that you know your unique selling proposition/point!

Know your Product

USP
Unique Selling
Point/Proposition
USP: Find your niche!
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Copyright Osec 2008. Alle Rechte vorbehalten.

Know your Product!

Your Customer your target audience
Identify your customer target groups:
On which cluster do want to focus?
Mainstreamer?
Backpacker, Volunteers, Students?
LOHAS (Lifestyle Of Health And Sustainability)?
Lifestyle and luxury Traveller?
DINK(Y) - Double Income No Kids (Yet), early Retired Traveller, empty
Nester, Gay & Lesbian?
Families?
Adventurer, Active, Cultural Traveller?
Special Interest Traveller
Or for all of them?
The biggest mistake in targeting is trying to reach everybody and
ending up appealing to no-one!

Your Competitors
Evaluate your competitors in the market and compare them with you!
This process is called:
Benchmarking!
You can learn a lot in analysing your competitors!

Define who is your competitor.
Which products, services, activities do they provide?
In which target markets are they active?
What are they doing good, where are they failing?
How did they become successful?
In which business area could you improve to beat them?
Do not try to copy the big players in the industry.
Exclusivity - USP
Many of the big players in tourism are trying to develop exclusive
new Products!

En exclusive product implies:
Less or no competition
No price transparency
No differentiation about the price
Price control
Better margins

Trade fair participation is a strategic decision
Never consider participation at trade fairs as isolated
projects, but integrate them into your long-term marketing
and communication strategy.

Run a detailed analysis and carefully evaluate basic
considerations.
Trade fair participation is a strategic decision
Do we reach our target segment by participating at this fair?

Decision Taking: Participation Yes or No?
Do we reach our target segment by participating at this fair?
Do we have clearly defined and realistic targets?
Is this fair offering an opportunity to create new contacts in a more efficient
way than relying on other measures only?
Do we have the financial resources available?
Is the effort required for appropriate performance at the fair in reasonable
relation to the expected results?
Do we have the necessary resources for appropriate follow-up after the
fair?

Trade fair participation: Yes or No?

Good trade fair
preparation is
key to
success!
Critical factors for your trade fair success
6 Key Factors

1. Set targets reach targets
2. Your message
3. Your communication
4. Your booth
5. Your stand personal
6. Your trade fair follow up

Successful business with European Tour Operators.
What does an international outgoing tour operator expects from you?
A different and unique product offer
Clear price structure
Professional skills
Product development & innovation
Marketing support
Reliability
Long term business experience
Enough capacity
Service driven attitude
Competitive prices, best value for price

Your message
What do you offer a new client: new
tour, improved service, better hiking
material
Many products are the same or very
similar

Communicate the benefit of your
tour, your hotel your company!

What is the added value of your
product offer?
How do you communicate your
message in your marketing
material?
Reduce to the max

Your communication
Categorisation of your customers:
existing customers, potential
customers, ex-customers, A, B and
C customers/contacts

Whit whom do you want to
communicate?

Through which channels?

What do I want to communicate?

How regular do I want to
communicate?

Your communication
Communicate your participation

through social media Facebook,
Twitter etc.
on your company website
in you email signature
on the trade fair website company
profile
through personalized emails /
invitations

Focus on added value visitors get
when visiting your booth

Your communication
Meetings

Inform yourself about your potential
business partners website
research

Contact potential clients before the
trade fair to arrange meetings
follow-up by phone

Arrange meetings with existing
customers or contacts from last
trade fair

Arrange meetings with other
exhibitors at trade fair

Your booth: your company`s calling card
Your booth: make a difference
Your stand personal
The choice of the right
stand personal is key for
success

Who participates? Position
in company
Competent stand personal
Preparation of stand
personal
1 or 2?
Expectations
Motivation
Are you a sales person?

Pricing
Questions to consider:
Price positioning: Cheaper or Better?
Who isnt better, must be cheaper
Who isnt cheaper, must be better
Price leader or quality leader?

- Compare you prices with your competitors in the market!
- Do you have to adjust your price?
- Price-fixing arrangement possible?
- Do you have an exclusive product?

Pricing per Marketing Channels
Intermediar(s): B2B - Business to Business
Inbounders, DMCs =handling agents (retailer for overseas TOs)
Overseas TOs / retailers (Trade fairs for the travel industry, road shows in
Europe)
Micro Touroperators
Travel Agents (local and international)
OTAs (Online Travel Agents) as expedia, agoda, hotels.com, booking.com,
despegar, getaroom, venere, opodo, etc.
OTAs retailer: hotelbeds, exclusively hotels, hrg, gateway, etc.
Rate structure
Hotel example:

5% - 15% Travel Agents incl. OTL
20% Micro Tour Operators
25% Tour Operator
30-40% Inbounder, DMC

Your net rate

R
a
c
k

R
a
t
e

Rate structure
Tour example:

15 - 20% (Micro) Tour Operators
25% Inbounder, DMC

Your net rate

R
a
c
k

R
a
t
e

Rate structure
Possible names:

Travel Agent Rate, Tour Operator Rate, DMC Rate
Rack Rate, Net Rate, preferred net Rate, confidential net Rate
STO Rate, preferential TO Rate, super preferential Rate
Gross selling price, TA selling price, TO price
Minimum selling Price
Rate structure
Amend your rates if necessary

20% Micro Tour Operators
25% Tour Operator
30-40% Inbounder, DMC

Your net rate

R
a
c
k

R
a
t
e

Make sure that you take all you distribution channels
into consideration for your product calculation!

Be careful with you rate structure!

Your follow-up
The follow-up
after the trade
fair is the
be-all and
end-all for
success

Your follow-up
Prepare follow-up before
the trade fair
Your follow-up starts at the
trade fair
Appoint responsibilities
Don`t let your daily
business influence your
proper trade fair follow-up
Reserve min. 2 days right
after trade fair for follow-up
From your follow-up to your
next trade fair preparation

Your follow-up
Personalised follow-up
Refer to topics discussed at trade
fair
Send information requested
Only changing name in email is
not a personalized email
Follow-up by phone if you don`t
receive an answer
Be pushy: several emails
Keep constantly in touch with the
contacts made at the trade fair
Use every possibility to contact the
persons met at trade fair: inform
about new products, newsletter,
Christmas cards, events, etc.
Benefit, benefit, benefit
Benefit from the time being
the trade fair

Visit existing customers
before or after the trade
fair

Visit new potential
customers before or after
the trade fair

Questions
Promotion
Promotion includes the various ways of communicating to the
customers of what your company has to offer.
Promotion tools:
-Advertising online offline
-Sales promotion, special offers, Coupons
-Google adwords
-Social Networks, Blogs
-Direct mailings, catalog marketing, telemarketing, TV
-Posters, displays
-Public relations
-Guerilla Marketing
- Wordoffmouth
-Trade fairs

Place - Marketing Channels / Distribution
Direct: B2C - Business to Customer
Online: own website, social networks, etc.
Up-to-date website
Short answer time on e-mail requests!
Free telephone number?
Youll need a IBE (Internet Booking Engine) with live inventory.
Online payment is a must! (credit card company commission)
Smart phone friendly
Encourage your guests to leave a comment on tripadvisor, blogs

Offline: sales office, by public media, catalogues, telemarketing, telephone, mail
Consumer trade fairs, specialised, target group oriented trade fairs (e.g.
Extremadura Birdwatching Fair, Boot, Goldreen)
Rate structure
The Hubbart formula is used to determine what a hotels average
daily rate (ADR) should be to reach the hotels financial goals.

Rate structure
Calculation example with $80 ADR :
Initial situation:
50% direct selling
50% sales through OTA with 10% commission
Your Rack Rate: $85

Rate structure
Calculation example with $80 ADR :
New situation:
33.3% direct selling
33.3% sales through OTA with 10% commission
33.3% sales through DMC/Inbounder with 30% commission

Your Rack Rate remains: $85

International Trade Fairs As A Marketing Tool Workshop Peru 2014 Mko

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