Intro to Marketing

Introduction to Marketing
Lectures 2023
Michał Gazdecki, PhD

Poznań University of Life Sciences
Contact details
▪ Michał Gazdecki, PhD

▪ E-mail: michal.gazdecki@up.poznan.pl
▪ Room 521, tel 848 71 26
▪ Mobile +48 600 031 021
▪ ORCID, ResearchGate, Linkedin,

▪ Zoom instant meetings
▪ Consultation for Students: Wednesday 17.00 – 18.30 (CEE time)

▪ Room 521 and MS Teams.
2
Organization of the lecture and practical classes
▪ Sylabus
3
The concept of marketing
4
Definitions – AMA
Direct link - AMA definitions
5
Definitions and terms
Human need — A state of felt deprivation.
Human want — The form that a human need takes as shaped by culture and
individual personality.
Demands - Human wants that are backed by buying power.

Customer value —the consumer’s assessment of the product’s overall capacity

to satisfy his or her needs.
Market —the set of all actual and potential buyers of a product or service.
Production concept —The philosophy that consumers will favour products that
are available and highly affordable, and that management should therefore
focus on improving production and distribution efficiency.
Product concept —The idea that consumers will favour products that offer the
most quality, performance and features, and that the organisation should
therefore devote its Energy to making continuous product improvements.
Selling concept — the idea that consumers will not buy enough of the
organisation’s products unless the organisation undertakes a large-scale selling
and promotion effort.
Marketing concept —The marketing management philosophy which holds that

achieving organisational goals depends on determining the needs and wants of
target markets and delivering the desired satisfactions more effectively and
efficiently than competitors do.
Marketing development
by Kotler et al.
10
Marketing development by Kotler
11
Agenda
Driving factors of modern markets – food

markets perspective
12
What is a consumer trend?
"A trend in consumer behavior is a specific direction of change in the

consumer's lifestyle, acting objectively and hence independently from the
consumer's will and awareness"
(Shaw, F. (2002). Uncertainty and the new consumer. Foresight, 4(6), 4–13)
▪ Appear gradually (not rapidly)

▪ Are prolonged in time
Trends on food
▪ Appear in the social sphere and are then
markets:
adopted by the food sector
▪ May be a source of innovation
13
What the trends can be like?
Macro-trends Trends
(e.g. gerontologization,
mobility)
Scale
Time Penetration of
phenomena
Effects
Micro-trends
(e.g. people who retire, but Ephemerides
continue working)
14
The food industry's challenges
100 000
Growing demand
90 000 Growing
Asia population
80 000 Urbanization
70 000
Africa
60 000
50 000 Rest of the world

Dwindling Earth resources
40 000 Climate changes
30 000 Water shortage
20 000
10 000
0
Growing demand and dwindling resources
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
15
Megatrends - gerontologization
Poland Poland Poland

Population Population
Population
Men Women Men Women Men Women
*Source: https://www.populationpyramid.net/ 16
Megatrends - gerontologization
*Source: https://www.populationpyramid.net/ 17
Growing rate of changes Did you know that ...
Year 2000 => 360 million *

Year 2012 => 2100 million * Internet users in the world
Today => 5468 million **
90% of global data resources were generated

within the last two years*
Source: *Shift Happens: Understanding how the world is changing, MONITOR INSTITUTE A part of Deloitte Consulting LLP 18
**http://www.worldometers.info/pl/
Information about trends
Macro data analysis Consumer research

(the macro perspective) (the micro perspective)
Ability to deepen the

Not very detailed
knowledge
Easily accessible Available with difficulties
Plenty of generalization May be fragmented
19
Food trends - the macro
perspective
20
The macro perspective - changes in retail (current prices)
1000
900 Total
800
700
Food and non-alcoholic
600
beverages
Miliardy zł
500
400
Alcohol and tobbaco products
300
200
100 Non-food products
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Internal market by the Central Statistical Office 21

The macro perspective - changes in retail (current prices)
Engel's law is an observation in economics stating that, as income

rises, the proportion of income spent on food falls―even if absolute
expenditure on food rises. In other words, the income elasticity of
demand of food is between 0 and 1.

The macro perspective - changes in retail (fixed prices, 2007 = 100)
Zmiana
1 000,00
2007 = 100
900,00 Total
800,00
1,41
700,00
600,00
beverages
Bilions PLN
500,00
1,51
400,00
Alcoholic beverages and
300,00 tobacco products
200,00 1,28
1,16
100,00 Non-food products (excluding
1,16 tobacco products)
0,00
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

The macro perspective - retail structure (fixed prices, 2007 = 100)

beverages
61,3% 65,7%
Alcoholic beverages and
tobacco products
9,4%
Non-food products 7,8%
(excluding tobacco
29,3% products)
26,5%
2007 2019

The macro perspective – food expenses structure (per 1 person monthly)*
Quantitative consumption of
selected products
2007 = 100
other 3% 5%
fish 3%
oil and fats 3%
5%
sugar, jam, sweets 4%
6% 6%
fruit 6% 6% 8%
non-alcoholic drinks 8%
9%
vegetables 11%
11% -20%
milk, cheese, eggs 14% 13%
bakery and cereal products 16% 16% -24%
meat 27% 26% -1%
2007 2016 25
* Data according to household budgets
The macro perspective – changes in retail structure
2007 2019
1 Total number of shops with food 132,511 93,457 -29%
2 Number of grocery stores 105,510 67,625 -36%
3 Number of supermarkets 3506 7945 127%
4 Number of hypermarkets 396 567 43%

The macro perspective – modern segment vs. traditional retail
2010 2015
20
5 Share in food sales 35
65
80
2020
14
Share in food sales

6 Forecast 2020
Traditional channel
86
Modern channel
*Source: POLISH FOOD TRADE MARKET, Roland Berger, 2016 27

The macro perspective – servitization, catering development
Zmiana
100 000 Number of catering entities 2007 = 100
90 000
80 000
70 000 0,81 Ogółem
60 000
50 000
40 000
0,85
30 000 0,51
20 000 1,81
10 000
0 0,70 stołówki
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Ogółem restauracje bary stołówki punkty gastronomiczne

The macro perspective – servitization, catering development
Share of catering expenses in the total

expenses on food and catering services
2007 2016
USA
6% 14%
PLN 13.43 / 1 pers. / month PLN 44.01 / 1 pers. / month
*Source: Internal market by the Central Statistical Office 29

Food trends - the micro
perspective
30
Cocooning
Personalization
Sustainability
Traditionalism Taste
Regionalisation
32
following / taking over / Health

introducing
Simplicity (safety, medical, functional)
Megatrends – e-commerce, m-commerce, information civilization
*Source: http://www.taylornoakes.com/2014/02/03/austerity-measures-bad-design-in-montreal-public-transit/tesco-homeplus-subway-virtual-
33
store-in-south-korea-3/
*Source: http://www.taylornoakes.com/2014/02/03/austerity-measures-bad-design-in-montreal-public-transit/tesco-homeplus-subway-virtual-
34
store-in-south-korea-3/
Share of distribution channel in South

Korea's retail market in 2016
*Source: https://www.statista.com/statistics/739806/south-korea-share-of-retail-market-distribution-channel/ 35
Farmers in Poland *
Have a PC Use e-mail
Have a
smartphone
Total Poland ** 62%
Source: *Kleffmann and Partner, panel survey ®amis; **wirtualnemedia.pl 36

Percentage of all global web pages served to mobile

phones from 2009 to 2018
Countries with the highest number

of internet users as of December
2017
(in millions)
Source:
https://www.statista.com/statistics/262966/num
ber-of-internet-users-in-selected-countries/
https://www.statista.com/statistics/241462/global-mobile-phone-website-
traffic-share/
37
Internet Users in the World by Regions (December 31,

2017)
https://www.internetworldstats.com/stats.htm
38
Trends – new skills
29% Poles
began to learn new skills not related to their education
within the last 12 months (2016)
Source: Arkadiusz Wódkowski, Oskar Żyndul, Autonomy, A presentation within the project "Konsument 2016" 39
Trends – autonomy
22% Poles
baked bread within the last 12 months (2016)
56% Poles
believes that buying ready made food is taking shortcuts
Source: Arkadiusz Wódkowski, Oskar Żyndul, Autonomy, A presentation within the project "Konsument 2016" 40
Trends – health (and nutrition)
29% Poles health concerns 54%

were on a diet last year (2016) * taste 31%
lack of preservatives 13%
good overall quality 12%
social concerns 7%
I like such products 7%
Please explain why you buy
traditional, regional food? relevant for my family 5%
N=146** freshness 4%
Spontaneous, multiple answers
nutritional value 4%
miscellaneous 15%
Source: Arkadiusz Wódkowski, Oskar Żyndul, Autonomy, A presentation within the project "Konsument 2016", ** own research 41
Trends – nutritional (lack of) awareness
Q: You assure that you test the raw materials that you use
for making your products for the presence of GMO's and an
active substance
from Roundup, an agent that is harmful for bees. Are all
raw materials delivered to you tested, or is it a "random
sample" testing?
Source: own research, materials made available by ZT Kruszwica 42
Trends –ethnocentrism
84% Poles are proud to be Polish

78% considers themselves to be patriots
83% believes that buying foreign products weakens Poland
89% claims that the Polish origin of the product encourages
them to buy it
Source: Katarzyna Gawlik, Detox, a presentation in the "Konsument 2016" seminar 43

Trends – Polishness (ethnocentrism)
I prefer foreign products I prefer Polish products
food
furniture
banking
insurance
”Polishness” has the biggest potential in
alcohol categories related to food and alcohol,
books furniture and services such as banking or
insurance. The belief in Polish works of art is
clothing
growing – books enjoy particularly good
toys opinion.
fuel station
white goods
films
electronics
Source: Omnibus survey conducted in March 2016 on a representative sample of Poles aged over 15, N=1008, IPSOS survey 44
"Polishness trend", a survey within the project "Konsument 2016"
Micro-trends – collaborative consumption
Group purchase from

local farmers
Stimulants Technology
Can it grow without support?
Crisis
45
Final remarks
(Exponentially) growing rate of changes
Challenges
Growing wealth and growing expectation and
Chance
Modern technologies for processors and traders
in food markets
Necessity of education and protection
46
International marketing
Definition, tasks, stages of International
Marketing Involvement
47
Why international marketing
Driving forces:
1. The interdependence of the world economies.
2. The rapid growth of regional free trade areas such as EU, NAFTA, and APEC.
3. The increase in wealth and growth in most parts of the world, causing
enhanced purchasing power.
4. The evolution of large emerging markets such as Brazil, China, India, Malaysia,
Russia, Hungary and Poland.
5. Availability of advanced methods of communication and transportation due
to developments in information technology.
Why international marketing
Definition
1/
International marketing is the performance of business activities that direct the
flow of a company’s goods and services to consumers or users in more than one
nation for a profit.
2/
International marketing is the performance of business activities designed to
plan, price, promote, and direct the flow of a company’s goods and services to
consumers or users in more than one nation for a profit.
The international marketing task
The uncertainty of different foreign

business environments creates the
need for a close study of the
operating environment within
each new country relevant for your
industry/ product.
Thus, a strategy successful in one
country can be ineffective in
another by differences in political
climate, stages of economic
development, level of technology
or other cultural variation.
The Self-Reference Criterion and Ethnocentrism: Major Obstacles
Self-Reference Criterion (SRC)

The SRC is an unconscious reference to one’s own cultural values, experiences,
and knowledge as a basis for decisions.
Ethnocentrism
Ethnocentrism is the notion that people in one’s own company, culture, or
country know best how to do things.
Stages of International Marketing Involvement
1/ No Direct Foreign Marketing

▪ A company does not actively cultivate customers outside national
boundaries; however company’s products may reach foreign markets.
▪ Sales may be made to trading companies as well as foreign customers who
directly contact the firm. Or products may reach foreign markets via
domestic wholesalers or distributors who sell abroad without the explicit
encouragement or even knowledge of the producer.
▪ As companies develop Web sites on the Internet, many receive orders from
international Internet users. Often an unsolicited order from a foreign buyer
is what piques the interest of a company to seek additional international
sales.
2/ Infrequent Foreign Marketing

▪ Sales to foreign markets are made as goods become available, with little or
no intention of maintaining continuous market representation.
▪ As domestic demand increases and absorbs surpluses, foreign sales activity
is reduced or even withdrawn.
▪ More reactive in nature and do not represent careful strategic thinking about
international expansion.
3/ Regular Foreign Marketing

▪ At this level, the firm has permanent productive capacity devoted to the
production of goods and services to be marketed in foreign markets.
▪ A company may employ foreign or domestic intermediaries, or it may have
its own sales force or sales subsidiaries in important foreign markets.
▪ Still the primary focus of operations and production is to service domestic
market needs.
▪ Profit expectations from foreign markets move from being seen as a bonus in
addition to regular domestic profits.
4/ International Marketing
▪ Companies in this stage are fully committed to and involved in international
marketing activities.
▪ Such companies seek markets all over the world and sell products that are a
result of planned production for markets in various countries.
▪ Companie’s activity generally entails not only the marketing but also the
production of goods outside the home market.
5/ Global Marketing
▪ At this stage, companies treat the world, including their home market, as
one market.
▪ Market segmentation decisions are no longer focused on national borders.
Instead, market segments are defined by income levels, usage patterns, or
other factors that frequently span countries and regions.
▪ Often this transition from international marketing to global marketing is
catalyzed by a company’s crossing the threshold at which more than half its
sales revenues comes from abroad.
Examples
57
https://www.nestle.com/
58
https://www.syngenta.com/co
mpany
59
Example
Case:
KWS
Example
Case:
Globachem
Example
Case:
ZWACK UNICUM NYRT

Chapter 9
Marketing of product
63
Definition
Product defintion by AMA

A product is defined as a bundle of attributes (features, functions, benefits, and
uses) capable of exchange or use; usually a mix of tangible and intangible
forms.
Thus a product may be an idea, a physical entity (a good), or a service, or any
combination of the three. It exists for the purpose of exchange in the
satisfaction of individual and organizational objectives.
While the term “products and services” is occasionally used, product is a term
that encompasses both goods and services.
New Product Development (NPD)
There are six distinct steps in new product development:

1. Generation of new product ideas:
– Variety of sources (salesperson, employees, competitors, governments, marketing research
firms, customers).
2. screening of ideas:
– ideas must be acknowledged and reviewed to determine their feasibility – concept test
3. business analysis, which is necessary:

– estimate product features, cost, demand, and profit.
New Product Development (NPD)
There are six distinct steps in new product development:

4. Product development
– involves lab and technical tests as well as manufacturing pilot models in small quantities.
5. Test marketing
– Determine potential marketing problems and the optimal marketing mix
– GTM – go to market strategies
6. Full-scale commercialization:
– going through with full-scale production and marketing
Product adoption
six factors impact on the adoption process:

1. Relative advantage - relative advantage over existing alternatives.
2. Compatibility - with local customs and habits and consumers’ other
belongings.
3. Trialability/divisibility – product to be capable of being divided and tested in
small trial quantities to determine its suitability and benefits.
4. Observability - to encourage social acceptance and reinforcement.
5. Complexity – to complex might be difficult to understand for customers
benefits
6. Price – sensible price
International product life cycle (iplc)
Product life cycle

concept
International product life cycle (iplc)
Product levels in marketing
What Is Customer Value?
Customer value measures a product or service's worth and compares it to its

costs for customer.
This determines whether the customer feels like they received enough value for the price they paid
for the product/service.
Customer benefits:
1. The quality of your product or service
2. The ability to provide a better solution
3. Your brand's reputation
4. Your unique customer experience
5. The quality of your customer service team
6. The social advantages of partnering with your business
Tangible Costs: Intangible Costs:

1. The price of your product or service 1. Time invested in buying your
product or service
2. Installation or onboarding costs
3. The cost of accessing your product 2. A poor customer experience
or service 3. Physical or emotional stress
4. Maintenance costs induced from buying or installing
your product
5. Renewal costs
4. A poor brand reputation
5. Time spent understanding how
your product or service works
Value for the Consumer
Total benefits for Non-financial costs

the consumers
Financial costs
Quick quiz
Core benefit?
…..
Actual product?
…..
Augmented product?
…..
Quick quiz
Core benefit?
…..
Actual product?
…..
Augmented product?
…..
International Marketing
Channels
78
Introduction
1. A manufacturer can sell directly to end users abroad, but this type of
channel is generally not suitable or desirable for most consumer goods.
2. In foreign markets, it is far more common for a product to go through
several parties before reaching the final consumer.
Possible options
Direct selling or Indirect selling

Merchant vs. Agent
1. Merchant - buy and sell goods for a profit. Earn money based on a
difference between total sales value and expenditures for buying a goods.
2. Agents – do not purchase or take ownership of the goods they buy and sell.
Agent or broker will arrange for the sale of goods between market entities.
Earn money by receiving a fee (commision) for the arrangement of the sale.
International Channel of Distribution Alternatives
Concept 1
Direct
vs
Indirect
Concept 2
Direct
vs
Indirect
Nature of relation
P1 P2 P3
Competitive Figure:
arrangement
The specificity and
the nature of
Cooperative
arrangement relationships in a
distribution system on
D1 D2 D3 D4 … Dn Mixed
arrangement: agri-markets
1st or 2nd competition
level of +
distribution Dn+1 Dn+2 Dn+3 … Dn+i cooperation
Gazdecki, M. (2018), "Factors of

2nd or 3rd Competitive business relationships change in
R1 R2 R3 R4 R5 R6 Rn Cooperative
level of ….. arrangement
distribution
arrangement agribusiness input distribution
channel: The case of Polish
market", IMP Journal, Vol. 12 No. 3,
pp. 567-
End users 582. https://doi.org/10.1108/IMP-01-
2018-0011
Streams of product from particular producers
P Producers D Distributors S Retailers

Direct selling
1. Direct selling is employed when a manufacturer develops an overseas

channel. This channel requires that the manufacturer deal directly with a
foreign party without going through an intermediary in the home country.
2. The manufacturer must set up the overseas channel to take care of the
business activities between the countries. Being responsible for shipping
the product to foreign markets itself, the manufacturer exports through its
own internal export department or organization.
Types of intermediaries: direct channel
Foreign distributor
1. Foreign distributor is a foreign firm that has exclusive rights to carry out
distribution for a manufacturer in a foreign country or specific area.
Manufacturers’ Retail Stores and Global Retailers

1. Manufacturers’ Retail Stores - an important channel of distribution for a
large number of manufacturers is the owned, or perhaps franchised, retail
store (e.g. Disney, Benetton).
2. Walmart, with more than 8,000 stores in 14 foreign markets, is an
attractive entry point to international markets for U.S. suppliers.
Indirect selling
1. With an indirect channel, a manufacturer does not have to correspond with

foreign parties in foreign countries. Instead, the manufacturer deals with
one or more domestic middlemen, who in turn move and/or sell the
product to foreign middlemen or final users.
Types of intermediaries: indirect channel
Export broker
1. The function of an export broker is to bring a buyer and a seller together for
a fee. The broker may be assigned some or all foreign markets in seeking a
potential buyer.
Manufacturer’s export agent or sales representative

1. Because of the title of this intermediary, one might easily mistake an export
agent or sales representative for a manufacturer’s employee when, in fact,
this is an independent businessperson who usually retains his or her own
identity by not using the manufacturer’s name.
Types of intermediaries: indirect channel
Export management company (EMC)

1. An export management company manages, under contract, the entire
export program of a manufacturer.
2. An EMC is also known as a combination export manager (CEM) because it
may function as an export department for several allied but noncompeting
manufacturers
Factors Affecting Choice of Channels
1. Identify specific target markets within and across countries.

2. Specify marketing goals in terms of volume, market share, and profit margin
requirements.
3. Specify financial and personnel commitments to the development of
international distribution.
4. Identify control, length of channels, terms of sale, and channel ownership.
Pricing and for the consumers
90
Intro – definitions
▪ Price is the formal ratio that indicates the quantity of money, goods, or
services needed to acquire a given quantity of goods or services. It is
the amount a customer must pay to acquire a product. (AMA 2020).
▪ Price can be considered as a monetary amount that is charged in order

to get something desired from the market (that is, to obtain a product).
If consumers perceive value (enough benefits or a good solution for
their needs) for the product at that price, then they are more likely to
become customers (Marketing Study Guide 2020)
Price impact to ….
The Role of Price in Communicating Quality
Price is a significant factor in determining the perceived value of the

product (or brand) to the consumer. Many consumers equate price with
overall product quality – and a more expensive product is generally
perceived to be better (Marketing Study Guide 2020).
Value for the customer
The concept of the value for the customer

▪ was introduced by P. Drucker in his publication The Practice of Management
in 1954.
▪ Dual meaning
93
value to customer Two sides customer value
Value to customer is Customer value includes both:

the final excess of total total value for the customer and
benefits over costs customer value for the
that the customer has company, i.e. the total net value
need to cover generated by the customer for
the company in monetary terms
(customer
lifetime value)
94
Remarks:
▪ Contains: emotional, cognitive and utility features
▪ Value is uniquely perceived by the customer, it is contextual in nature – i.e.
depends on the situation.
▪ value is perceived by the customer – Clients do care abotu benefits and
costs they perceive, not those they actually get or cover.
J.B. Smith, M.Colgate, Customer Value Creation: A Practical Framework, „Journal of Marketing Theory and Practise” 2007, vol. 15, no. 1, 95
Winter 1;
Value for the customer – definition
▪ ...the excess of the benefits that a customer obtains from the company in
the exchange process over the price and nonfinancial costs of accessing
those values.
M. Szymura-Tyc, Marketing we współczesnych procesach tworzenia wartości dla klienta i przedsiębiorstwa, Wydawnictwo AE, Katowice 96
2006
Price + financial costs Non-financial costs:
Subjectively Perceived
Price
Fees Costs for
E.g.
Commissions Clients inconvenience of
Transportation costs
purchase
Opportunity costs (time
non-transparent website
involved)
Emotional cost
(unpleasant experience)
T. Doligalski, Internet w zarządzaniu wartością klienta, Oficyna Wydawnicza Szkoła Główna Handlowa w Warszawie, Warszawa 2013 97
Value for the customer – definition
Value to the customer
Non-financial costs
Total benefit to
the customer
Price and financial costs
Value for the customer – categories
Funcional Symbolic
reflect, reinforce or
manifest the client's
The primary use of the lifestyle, views or
product Value for the the client's personality.
To satisfy customer needs. customer
emotional and social

values
Types of the Value for the customer
1. value of purpose (related to the customers needs)

2. the value of communication,
3. value of convenience,
4. experience value,
5. individualization value,
6. value of belonging,
7. Value of time,
8. value of security.
Value of purpose
▪ The company's ability to meet customer needs according to customer

expectations
▪ (Refers to needs theory)
The value of communication,
▪ delivered to customers by companies in both web-based and traditional

relationships.
▪ Communication in the internet:

– Quick
– Individualized
– Three-way (customer - company - other customers)
– Reactive
– Education
Value of convenience
▪ The benefits associated with the ease of initiating and then continuing a
relationship with a company.
▪ This value can be viewed from the perspective of the customer's non-
financial costs (transaction costs and other non-financial costs) that are
incurred to satisfy a need.
Value of experience
▪ Experiences related to the aesthetics, entertainment, learning, or on

enabling customer engagement in an activity of interest.
Value of individualization
▪ The use of the Internet provides greater opportunities to customize the

composition of values.
▪ This can take the form of in-depth or superficial modification of the value
proposition (please check: mass customization)
Value of belonging
▪ Ease of interaction with other customers of the company

▪ The benefits of belonging to various types of consumer communities can
include (but are not limited to): product usage knowledge, identification
with the group, and development of interpersonal bonds.
Value of time
▪ High importance - it must be guaranteed to avoid customer dissatisfaction,
Value of security
▪ Could be related for instance to:

– Transacarion security
– Personal data protection
– Delivery insurance
– Product insurance
Price vs. Customer Value?
Customer Value
Non-financial costs for

Benefits for the Customer
the customer
Price and financial costs

for the Customer
Jak generować wartość dla konsumenta
Wartość dla konsumenta
Koszty niefinansowe
Ogół korzyści
dostarczonych
konsumentowi
Cena i inne koszty finansowe
110
T. Doligalski, Internet w zarządzaniu wartością klienta, Oficyna Wydawnicza Szkoła Główna Handlowa w Warszawie, Warszawa 2013
Zarządzanie wartością dla konsumenta – wariant 1
Odziaływanie na korzyści
CV2 CV1 < CV2

CV1
Wymaga dodatkowych kosztów

(inwestycji) od producenta
111
Odziaływanie na koszty finansowe
CV1 < CV2

CV1
CV2
Może ograniczać marżę
112
Odziaływanie na koszty niefinansowe
CV1 < CV2

CV1
CV2

Może zwiększać sprzedaż
113
Odziaływanie na koszty niefinansowe i finansowe
CV1 = CV2
CV1 CV2

Może zwiększać sprzedaż
Zwiększa marżę
114
Price inpact to ….
The Role of Price in Profit Generation
Price – along with an appropriate unit margin – are fundamental to

delivering the firm’s overall profitability. Price decisions are very
important and need to be made in conjunction with the expected sales
volume in order to get a good unit margin/sales turnover position.
If the price is too high, then sales will reduce – resulting in less revenue. If
prices are too low, there may not be enough margin to contribute
significant profits (Marketing Study Guide 2020).
Price inpact to ….
The Role of Price in Communicating Value
Consumers become customers if they perceive good value from a

potential purchase. Consumers will weigh up the potential benefits
against the various costs of acquiring the product. As price is the most
significant cost that consumers will consider, then the setting of price at a
certain level will influence the perception of value (Marketing Study Guide
2020).
Pricing Methods
Cost-based Pricing
Demand-based Pricing
Competition-based Pricing
Other Pricing Methods

Pricing Methods
Cost-based Pricing
▪ Cost-based pricing refers to a pricing method in which some
percentage of desired profit margins is added to the cost of the
product to obtain the final price.
▪ In other words, cost-based pricing can be defined as a pricing method
in which a certain percentage of the total cost of production is added
to the cost of the product to determine its selling price. Cost-based
pricing can be of two types, namely, cost-plus pricing and markup
pricing.
Pricing Methods
Demand-based Pricing
▪ The price of a product is finalized according to its demand.
▪ The success of demand-based pricing depends on the ability of

marketers to analyze the demand.
This type of pricing can be seen e.g. in the hospitality and travel industries. For
instance, airlines during the period of low demand charge less rates as compared
to the period of high demand. Demand-based pricing helps the organization to
earn more profit if the customers accept the product at the price more than its
cost.
Pricing Methods
Competition-based Pricing
▪ Competition-based pricing refers to a method in which an organization
considers the prices of competitors’ products to set the prices of its
own products. The organization may charge higher, lower, or equal
prices as compared to the prices of its competitors.
Pricing Methods
▪ Value Pricing - implies a method in which an organization tries to win

loyal customers by charging low prices for their high- quality products.
(to become a lowcost producer without sacrificing the quality).
▪ Target Return Pricing - helps in achieving the required rate of return on

investment done for a product. In other words, the price of a product
is fixed on the basis of expected profit.
Pricing Methods

▪ Going Rate Pricing - price of a product is set according to the prevailing
price trends in the market. Thus, the pricing strategy adopted by the
organization can be same or similar to other organizations. However, in
this type of pricing, the prices set by the market leaders are followed
by all the organizations in the industry.
Factors affecting international pricing
▪ Inflation
▪ Exchange Rate Fluctuations
▪ Parallel Imports
▪ Price Escalation
▪ Government Influences
▪ Middleman and Transportation Costs
123
Inflation
Eliminates consumer’s purchasing power

Adjust price
Delayed payment will erode profit
▪ Strategy
Careful price quotations and supply contracts
Increase brand value
Retain and win trust of customers
124
Exchange rate fluctuations
Weak currency → export and vice-versa

Government may intervene if too much fluctuations
Monitor other currencies movement
▪ Strategy
Review entire operation system
Adjust cost structure
Increase brand value
Check mode of operation in foreign markets
125
Strategies if currency is weak/strong
S. Tamer Cavusgil, “Unraveling the mystique of export pricing,” Chapter 71 in Sidney J. levy, George R. Frerichs and Howard l. Gordon (eds), The
Dartnell Marketing Manager’s Handbook (Chicago: Dartell Corporation, 1994), Figure 2, p. 1362.
126
Parallel imports
Distributors in one country sell to another country

Overstocking
Luxury product retailers, margin  (tax differences)
Has implications for foreign national vs. international pricing
▪ Strategy
Language, packaging
For sale in specific country only
Warranty/repair not transferable between countries
Close relationship with distributors
127
Price escalation
Selling overseas naturally ↑ price

 operating/transportation/admin/insurance/packaging… costs
Import duty (Fixed/unit, Valorem/values of goods x%, both $1 per unit + x% of its
value), VAT
▪ Strategy
Move to ↓ cost manufacturing countries
↓ distribution costs e.g. Internet
↓ features and ↓ quality
Re-classification of the product to save on duty (art vs. jewelery)
Adjust dimension (shoes less thick, larger containers) / packaging size ↓, so can fit
more units in container
128
Government influences
Keep retail margins below exorbitant level

Maximum Suggested Retail Price (MSRP)
Limited period of discount → EU Feb & Aug.
Adjust interest rate
Cocoa, coffee, sugar, wheat → Board
Monitor the market to prevent abuses
129
Middleman and Transportation Costs
▪ Longer channel length,

▪ Performance of marketing functions and higher margins
130
Skimming Vs. Penetration Pricing
▪ Skimming is used when the marketplace is insensitive to price; therefore

premium price is charged
▪ Market places high value on items either because of it’s unique features;
quality or it has little or no competition
▪ Penetration Pricing is used to stimulate market growth; therefore prices

are set low.
131
Introduction to
marketing
Jak zrozumieć
u-ROI-enia klientów?
dr Ewelina Marek
emarek@umk.pl
20.06.2024
Jak zrozumieć u-ROI-enia klientów?
dr Ewelina Marek
Czym są u-ROI-enia klientów?
Klient ocenia opłacalność zakupu: „Czy to, co dostanę za moje

pieniądze jest warte tej ceny?”
To przecież nic innego, jak kalkulacja ROI (ang. Return On

Investment).
Jak na jego wyobraźnię wpłynie Twoja strona sprzedażowa a

szczególnie opis produktu?
https://sprawnymarketing.pl/jak-zwiekszac-sprzedaz-dzieki-u-roi-eniom-klientow/
2
dr Ewelina Marek
Spis treści Czym jest ekonomia behawioralna?
Podwójny proces myślowy
Zastosowanie nauki w praktyce
8 zasad ekonomii behawioralnej dla

marketingu
3
dr Ewelina Marek
Czym jest ekonomia behawioralna?
Ekonomia behawioralna = ekonomia + psychologia
People are irrational / Ludzie nie są racjonalni i popełniają błędy

poznawcze. Co ważne, ich nieracjonalność można przewidzieć i na
nią wpłynąć!
Architektura wyboru / Choice architecture
Możemy nauczyć się z EB jak zaprojektować środowisko, które

pomoże ludziom podjąć decyzje, które są dla nich słuszne.
4
dr Ewelina Marek
5
https://www.youtube.com/watch?v=cYNN2GNdn3o http://evonomics.com/the-
deep-and-profound-changes-
in-economics-thinking/
Wkład Richarda H.Thalera w tworzenie ekonomii behawioralnej i polityki publicznej
dr Ewelina Marek
Marketing vs. ekonomia
Marketing is a related but separate field from economics

– Economics is the study of how people make choices based on benefit and
opportunity costs (neoclassical approach) or cognitive heuristics
(behavioral approach)
– Marketing is the study of how to get people to make a specific choice by
highlighting the benefits of a specific good or service
Both center on the concepts of decision-making, benefit and
opportunity costs
– However, economics seeks to understand how these results in the decision
made in the end.
– Behavioural economics not only seeks to understand the decision-making
process but also provides choice architecture to help people make better
choices.
6 – Marketing focuses on how to get a particular decision to be made to
increase a profit.
dr Ewelina Marek
Podwójny proces myślowy / Dual-process theory
System 1 System 2
Szybko Powolnie
Automatycznie Skutecznie
Emocjonalnie Logicznie
• Impulsy / Napędy • Refleksja
• Zwyczaje • Planowanie
• Przekonania • Rozwiązanie problemu
7
https://www.slideshare.net/AshDonaldson/behaviour-design-predicting-irrational-decisions?from_action=save
https://njoo.deviantart.com/art/Homer-So-Long-Looosers-75965780
dr Ewelina Marek
8
http://bdecastella.com/2012/12/effectiveness-the-long-and-short-of-it/
Wkład Richarda H.Thalera w tworzenie ekonomii behawioralnej i polityki publicznej
dr Ewelina Marek
Marketing vs. ekonomia
Marketing is a related but separate field from economics

– Economics is the study of how people make choices based on benefit and
opportunity costs (neoclassical approach) or cognitive heuristics
(behavioral approach)
– Marketing is the study of how to get people to make a specific choice by
highlighting the benefits of a specific good or service
Both center on the concepts of decision-making, benefit and
opportunity costs
– However, economics seeks to understand how these results in the decision
made in the end.
– Behavioural economics not only seeks to understand the decision-making
process but also provides choice architecture to help people make better
choices.
9 – Marketing focuses on how to get a particular decision to be made to
increase a profit.
dr Ewelina Marek
10
https://www.youtube.com/watch?v=cYNN2GNdn3o http://evonomics.com/the-
deep-and-profound-changes-
in-economics-thinking/
dr Ewelina Marek
11
http://bdecastella.com/2012/12/effectiveness-the-long-and-short-of-it/
dr Ewelina Marek
Zasada #1: Nieracjonalne oszacowanie wartości /

Unreasonable valuation
Klienci wewnętrznie uznają tanie rzeczy za gorsze, nawet jeśli są
one identyczne jak te droższe.
Przy wyższych cenach wina coraz więcej krwi i tlenu jest
wysyłanych do części mózgu, której działalność odzwierciedla
przyjemność.
12 $5 = $45
dr Ewelina Marek
Zasada #2: Paraliż decyzji / Choice overlaod
Klientów paraliżuje zbyt duża liczba opcji. Mniej daje więcej.
sprzedaż: 30% sprzedaż: 3%

13
dr Ewelina Marek
Zasada #3: Efekt ramowy / framing effect
Jest przykładem błędu poznawczego, w którym ludzie reagują na

konkretny wybór lub produkt na różne sposoby, w zależności od
sposobu ich prezentacji.
 Rory Sutherland
 “Life lessons from an ad man”
 TEDGlobal 2009
14
dr Ewelina Marek
Zasada #4: Dominujące alternatywy / Decoy effect
Poprzez wprowadzenie trzeciej “wabiącej” opcji, klienci decydują

się na zakup tej opcji, którą rzeczywiście chcemy sprzedać.
for print only
15 https://www.forbes.com/sites/piyankajain/2013/03/01/5-behavioral-economics-principles-for-marketeers/
dr Ewelina Marek
Zasada #5: Siła gratisów / the power of „free”
Klienci uwielbiają słowa "FREE”, “GRATIS”, itd. Przywołują one

nieracjonalnie pozytywne uczucia w mózgu. Właśnie widok słowa
”FREE" uwalnia znaczne ilości dopaminy w mózgu, aby poczuć się
szczęśliwym, co kończy się nieracjonalnym wyborem.
$0.01 $0.15
FREE $0.14
16 https://www.forbes.com/sites/piyankajain/2013/03/01/5-behavioral-economics-principles-for-marketeers/
dr Ewelina Marek
Zasada #6: Spójność i zobowiązanie / Responsibilities and

obligations
Ludzie chcą być spójni w swoich działaniach i zakup traktują jako
formę zobowiązania.
17
dr Ewelina Marek
Zasada #7: Dowód społeczny / Social proof

Gdy ludzie nie są w stanie wybrać, szukają dowodu u innych,
uważając, że oni posiadają większą wiedzę.
18
dr Ewelina Marek
Zasada #8: Sympatia / Sympathy
Ludzie są bardziej skłonni ulec wpływom osób, które dażą

sympatią.
19
Dziękuję za uwagę!
dr Ewelina Marek
emarek@umk.pl
20.06.2024
The Role Of Exhibitions In The Marketing Mix
A. Definitions
B. Types of Exhibitions Dear visitor of this website!
Welcome to the online course of UFI “The Role of Exhibitions in the Marketing-Mix”.
This online course is directed to
A. Economic Significance of Exhibitions ● lecturers who want to introduce the topic "fairs and exhibitions" to marketing
and communications type classes,
B. Importance for Exhibiting Enterprises
● students who want information about trade fairs as a marketing instrument and
C. Importance for Visitors ● personnel of exhibiting organisations who want to learn about the benefits of
D. Outstanding Economic Functions participating in trade fairs.
The content is structured as follows: In Chapters I general information about trade fairs
A. Information Sources and the exhibition industry is presented (definitions, integration into the marketing mix,
B. Specific Marketing Aspects historical background, benefits of trade fairs). The essential features of the participation
in trade fairs are described in Chapters IV - VI. A special focus is paid to integrated
marketing and the future of the value of trade fairs and exhibitions in overall marketing
A. Selection Criteria strategies and action plans.
B. Exhibition Strategies and Styles The course lasts approx. six hours. It can be used free of charge. A pdf- and a power-
C. Exhibition Targets point version are attached.
If there are any further questions you may contact Lili Eigl, UFI Communications
D. Stand Impact
Manager (lili@ufi.org); Prof. Dr. Beier, University of Cooperative Education, Ravensburg,
E. Follow-Up Measures Germany (beier@ba-ravensburg.de).
F. Risk Management
Authors:
Prof. Dr. Jörg Beier and Simon Damböck
University of Cooperative Education
A. Importance of Evaluation
Ravensburg, Germany
B. Efficiency Assessment
University of Cooperative Education, Ravensburg, Germany, © Prof. Dr. J. Beier
UFI, The Global Association University of Cooperative Education

of the Exhibition Industry Ravensburg, Germany 1
I. Description of Fairs, Expositions and Exhibitions
A. Definitions
The roots of the phenomenon "Fairs, Expositions and Exhibitions" can be traced back to its language origin.
"Fair" comes from Latin "feria", meaning "holiday" as well as "market fair". This in turn corresponds to the
Latin "feriae", which came to mean religious festival.1)
During the 12th century the importance of trade meetings increased; fairs were held close to churches, so that
the concepts of religious festival and market fair was combined in the common language.2)
The word “exhibition” was mentioned as early as 1649. It is a derivative of the Latin word "expositio",
meaning "displaying" or "putting on a show".3)
Exhibitions are not just collections of interesting objects brought together at a certain place and time. They are
human activities, human enterprises, undertaken for definite reasons and in order to achieve certain specified
results. They are a form of human exchange, whereby the promoters and exhibitors on the one hand
communicate with the visitors on the other. Their results can only be told in terms of further human thought
and activity.4)
The word "exposition" goes back to the same origin as "exhibition". Expositions, rooted in old French, tended
to be very similar to their English cousins, exhibitions. Expositions were held in facilities built specifically for
them. They were organised by either government departments or groups of entrepreneurs with government
assistance for the express purpose of promoting trade. Manufacturers were invited to show their goods.5)
In colloquial speech the concepts are used similarly. However, there are some interesting conceptual
developments which show the variability of today's exhibition industry. Have a look at the next page.

backfootnote
of the Exhibition Industry go on
Ravensburg, Germany 2
The early types of expositions and exhibitions were precursors for the world's fairs -
today known as EXPO - and different types of fairs and shows. Follow the descriptions on
the next slides.
back footnote go on

B. Types of Exhibitions
Fair
The Middle English word "feire", which means a gathering of people held at regular intervals for the barter or
sale of goods, is the one from which the present day definition, i.e. a periodic gathering for sale of goods,
often with shows or entertainment, at a place and time fixed by custom, is taken.6)
Georg Emanuel Opiz

Russians at the fair in Leipzig
1825
Museum of town history, Leipzig, Germany
back footnote go on
Expositions and exhibitions

have always been combined with the display of goods and products.7)
Exhibitions differed from fairs in four major ways:8).
First, exhibitions were usually one-time events. They did not enjoy a recurring life cycle. However, while fairs
ran for a short period of time, many exhibitions ran for months, some for a year or longer.
Second, exhibitions were housed in permanent facilities built specifically for them. Starting in the 18th
century, the practice of building a facility for the express purpose of housing an exhibition was the precursor of
the exposition/convention centre industry.
Third, although fairs were held regularly, they were not highly organized events. Over time, religious and later
civic leaders did take control of the grounds where fairs were held (usually public lands). Exhibitions, on the
other hand, were highly organized events. They were initially created by government departments or
committees for the purpose of promoting trade.
Finally, exhibitions differed from fairs in the very way in which business was conducted. Goods were bought
and sold at fairs. At exhibitions, commercial activity or selling of the displayed goods, was not usually
involved. However, inherent in displaying the goods was the hope of stimulating future sales. Today this is
how most exhibitions still operate.

backfootnote
Crystal Palace in London

built for WORLD EXPO 1851
World's Fair - EXPO

is the generic name for various large expositions held since the mid 19th century. The official sanctioning body
is the Bureau International des Expositions or BIE. Expositions approved by BIE are universal, and
international or specialized, lasting from 3 to 6 months in duration. Universal expositions encompass
universal themes that reflect the full range of human experience. These Universal Expos usually have
themes based upon which pavilions are made to represent the country's interpretation on that theme.
For example, the theme for the Expo at Lisbon (1998) was "water" and the theme for the 2005 Expo
hold in Japan is "nature's wisdom".To distinguish them from other fairs, expos require total the design
of pavilion buildings from the ground up. As a result, nations compete for the most outstanding or
memorable architectural structure.
back footnote go on

The 2005 World Exposition, Aichi, Japan
Theme for 2005 World Exposition: "Nature's wisdom"

Thanks to rapid technological development, the 20th Century was characterized by mass-production and mass-
consumption, which in turn led to material improvements in our daily lives. At the same time, these trends
resulted in various global issues such as desertification, global warming, and a shortage of natural resources.
As these issues cannot be resolved by any one nation, the international community needs to unite in
confronting them: we must come together and share our experience and wisdom, in order to create a new
direction for humanity which is both sustainable and harmonious with nature.
EXPO examples
Recent Universal Expositions include Brussels Expo '58, Seattle Expo '62, known as the Century 21
Exposition, Montreal Expo '67, San Antonio HemisFair '68, Osaka Expo '70, Brisbane Expo '88, Seville
Expo '92, Lisbon Expo '98, Hanover, Germany Expo 2000. The Expo 2010 will be held in Shanghai,
China.9)

back
of the Exhibition Industry footnote Germany
Ravensburg, go on 7
The Chinese Export Commodities Fair,

also called the Canton Fair, is held twice a
year in Spring and Autumn since it's
inauguration in 1957. It is China's largest
trade fair, presenting complete varieties of
goods with a vast attendance and business
turnover. Preserving its traditions, this Fair
is an event of international importance.
2005 Canton Fair: Approximately 200 000
attendees from 210 countries and regions.
Turnover of export: 29,23 billion US.
Trade Fairs
have been the primary marketing medium of exporting countries. The exhibits are confined to one industry or
a specialised segment of a special industry. They are more commonly known as trade fairs. Historically, trade
fairs have been the primary marketing medium of exporting countries.
Initially, trade fairs were horizontal in their organization, with various products and/or services in specified
industry groupings. A vertical organization is more commonplace today with the exhibits being confined to one
industry or a specialized segment of a specific industry. Buyers are usually business members of an industry
and often must be pre-qualified to attend the fair.10)

back
Ravensburg, go on 8
Trade Shows
are b2b events. Companies in a specific industry can showcase and demonstrate their new products and
services. Generally trade shows are open to the public and are attended by company representatives and
members of the press. Examples of trade shows are CeBIT and Hong Kong Electronics Fair (computer
industry).
Historically, trade shows have been conceived of as vehicles of communication with company exhibits
fulfilling an advertising and display function. Over time, this view has been challenged and replaced
with the view that trade shows are primarily events where products and services are sold, or contracts
and rights signed. However, in some instances, product or service offerings and buying processes are
regarded as too complex to permit full assessment or commitment to be made on-site. In such
situations, trade shows, at best, are likely to generate sales leads to be followed up afterwards. In the
1980s, a broader view of trade shows became more accepted. Several researchers argue that
companies use trade shows to pursue multiple objectives beyond communications and selling.
CEBIT, Germany
world‘s largest show for the computer industry

back
Ravensburg, go on 9
Trade Shows
or b2b shows do have certain distinguishing characteristics that set them apart from consumer or combined
shows. The exhibitor is typically a manufacturer or distributor of products or services specific or
complementary to those industries authorized to the show. The typical buyer is an industrial end user, or
another distributor, within the industry segment hosting the exposition. Attendance is restricted to these
buyers and is often by invitation only. Business credentials or pre-registration are usually required to qualify
the buyer as a legitimate member of the trade or industry. An access or registration fee may also have to be
paid prior to admission to the event. Trade show events may be as short as a single day or as long as seven to
10 days depending on the markets being served. Some are held semi-annually. Most are held annually, a few
biennially. Some large-scale industrial expositions are held once every three to seven years.11)
Hong Kong Electronics Fair

Asia's largest show for the computer industry

back
Ravensburg, go on 10
The National Trade Center, Toronto, Canada
Approximately 175,000 people visit the annual National Trade Centre

to experience the latest trends, product innovations and fashion-
forward decorating ideas for the home. As the largest home show in
North America, the National Home Show features more than 800
exhibitors offering a selection of home products and services that is
second to none. It’s a chance to get a sneak peek at the latest and
greatest products for the home and to see what the future holds for
homeowners across Canada.
Consumer Shows (public shows)

are events that are open to the general public. Exhibitors are typically retail outlets, manufacturers or service
organisations looking to bring their goods and services directly to the end user. A consumer show, or public
show, is an event that serves specific industries or interests, held for a particular duration of time (1 to 10
days). They include several shows: e.g. home shows, car shows, sportsman shows, computer and technology
shows, and many others.
The primary purpose of a consumer (public) show is direct selling. Buyers (consumers) are brought together
with sellers of goods and services. Consumers benefit from a diverse product mix, expert advice, education
and entertainment. Sellers benefit by immediate consumer purchases, product and brand awareness, public
relations, research and development, and product testing.

back
International Jewellery Dubai
Mixed shows
are a combination of trade and public shows. Exhibition organisers tend to open their trade shows to trade and
to public visitors. Trade visitors are allowed to enter the exhibition on special days; other days are open to
both the trade and the public.
Visitors Profile
From the 2004 edition onwards "International Jewellery Dubai" is repositioning itself to focus primarily on
trade.
IJD 2003 attracted 2,497 registered trade visitors (71% from the Middle East and 29% worldwide) and
thousands of wealthy private buyers, VIPs and public. A total of 11,747 people attended the event over 5 days.

back
Special types of trade fairs

Finally, trade fairs are combined with other events such as lectures, seminars, fashion shows, special events
and congresses. This combination raises visitor interest, driven by the high demand for information exchange
and the availability of experts. Exhibitors use this kind of show to meet many experts of one market segment.
A good example is the medical branch which has one of the highest needs for congresses. During the "Annual
U.S. Psychiatric & Mental Health Congress" an extensive supporting programme of speeches and debate
forums is served. Additionally a trade fair is attached.
Virtual fairs
appeared in the 70's when internet use became widespread. The demise of traditional fairs was considered
"inevitable". Possible touted advantages: elimination of usual trade show time constraints, space factors and
exhausting, long-distance travel.
However, it is now clearly accepted that traditional fairs cannot be replaced by virtual ones. Face-to-face
contact remains a significant privilege of traditional fairs. Applying customer relationship management (CRM)
and building up loyalty of clients remain advantages of exhibitions.
Nevertheless, the world wide web has very much effected the organization of exhibitions. Exhibitors and
visitors take their information from the net and decide if they participate in the exhibition or not. Organizers
try to communicate with their customers via internet to save money and to accelerate the communication
process. See how to handle the exhibition services "International Fair Plovdiv".

backfootnote
II. Historical Development
Fairs have been important institutions of the European trade. They can be traced back to the high Middle Ages.
The earliest market places, which can be characterized as exhibitions, have been founded in the Champagne,
France. They have started a continuous development which lasts to the exhibition industry of today.
The development of the exhibition industry over some hundreds of years can be divided into several stages.
Medieval fairs = preferred markets before the 12th century12)

Until the 12th century only few references to fairs and large markets can be found in the Franconia empire and
the adjacent regions.
● Privileges for a town from sovereign, emperors, kings

- Custom and exempt from custom and taxes
- During the fair, strangers also were allowed to open their stands
- Fair courts were established (mediation, contracts)
- Military protection = a free escort
● France 629: Abbey of St. Denis gets privileges from Merovingian King Dogbert I.: Custom privilege +
special protection of the king. Both were renewed continuously.
● Portugal 12th century: Tax exemption = feiras francas

back
of the Exhibition Industry footnote Ravensburg, Germany go on 14
12th and 13th century13)
During this period the first exhibition sites and trade centres come into being. The first typical organizational
structures of exhibitions can be identified.
● Fairs of the Champagne (six different times at four places)

● Trading centre for Netherlands, France, Central and Northern Europe, Italy
● Products:
France: wine, cattle Italy: silk, pigments
Central Europe: cloth, linen, metal goods
Northern Europe: furs
● The four most important exhibitions sites are: Provins, Troyes, Bar-sur-Abe and Lagny. They organized
the trade for Brabant and Flanders.

back
The roots of the modern Western banking and finance system: Bill of exchange at the fair 14)
● During the 15th and 16th century the first substitute for money (surrogates) was developed. Bills of
exchange became payable at the next fair (e.g. promissory notes, purchase and transportation
contracts). Credit and finance transactions became easier and less risky.
● Political and clerical institutions used the fairs for their transactions: The German bishops paid their
contributions to the curia in Rome via the Champagne fairs.
● Until 1320 Champagne fairs became finance centres of Western Europe. The reasons for decline are:
Change of traffic network, maritime traffic, settled merchants, war between Flanders and France,
competition of the central and south European fairs.
● For further information see additional link.

back
A European exhibition net starts to develop in the 14th century
In the 14th century new trade centres develop. The trade west-east becomes more and more important. At
the end of the 18th century a net of exhibition sites exists from Poland to Spain and England to South Italy.
The first European currency (ECU) is rising. Historical places for European trade fairs in the middle ages:
Netherlands and Belgium

Bruges, Ypern, Gent, Antwerp, Bergen-op-Zoom, Deventer, Utrecht
Germany
Frankfurt Main 1240: Fall fair
1330 spring fair permitted by Emperor Ludwig the Bavarian
Leipzig - Frankfurt: Because of the change to the Gregorian calendar there was an overlapping of fairs in
Leipzig and Frankfurt/Main. The transfer of the fair from Frankfurt to Leipzig became necessary.15)
South France, Switzerland, Italy, Spain

Geneva, Lyon, Besancon, Piacenca, Medina Del Campo
Medina del Campo: Take-over of the imperial financial administration of Emperor Charles V.
After stoppage of payment: 1575 closed
Geneva
1320 - 1464 largest fair in Europe, trade over the Alps, opened 4 times per year for 10 days per annum.
Products: Textiles, luxuries, silk, spices, non-ferrous and noble metals, pigments, furs, skins, wines,
manuscripts.

back
of the Exhibition Industry footnote
Ravensburg, Germany go on 17
18th and 19th century in Europe: Change from goods to samples fairs
In the 18th and 19th centuries new types of fairs take shape. Sample fairs and industry-specific fairs were
developed. This development is favoured by increasing industrialization, the improvement of the traffic
infrastructure and the formation of nation-states which guaranteed certainty of law and transportation safety.
At that time more than 95 percent of national industrial exhibitions were conducted in Europe.
During the process of industrialization, fairs evolved from sites for direct sales to sites displaying a broad
range of available goods: only samples of diverse product ranges were exhibited. These fairs were known as
"Sample Fairs" (from the German "Mustermesse").
Leipzig was the first exhibition site to organize a sample fair in 1895:
● Pure samples fair: Glass, ceramic, toys, musical instruments

● Dealers only travel with commercial samples
● Also technical fairs carried out in 1918
First international exhibition - EXPO in London 1851

First real international exhibition took place in London 1851 – Tradition of EXPO started. At least 14.000
exhibitors and more than six million visitors attended16)
This development did have an important influence on the American fair tradition17). The London Expo from
1851 was the starting point and model for Horace Greeley and Phineas T. Barnum, organisers of
America's first international fair in New York City in 1853.

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The 20th century: Trade fairs and trade shows become the dominate type of exhibitions
During this century the market segments have differentiated more and more. The work division has
increased. The industrial sector and the service sector have grown to a large extent. In parallel
international trade has expanded corresponding to a rapid increase of new enterprises.
The exhibition industry has met these challenges by developing industry-specific exhibition
concepts. They are characterized by the following:
● The nomenclature of the trade show, i.e. the range of products and services authorized for the
show, is determined by the products and services offered within a special market segment.
● The exhibitors and visitors of the trade show belong to a special target group of the market
segment.
● Associations representing the market segment initiate the trade show or are invited to become
partners of the exhibition organizer for the special event.
● Professional journals offer their services as cooperating media partners.
● The industry-specific concepts require specialists on the side of the organizers as well. The
project management of the organizer needs adapted skills and know-how of the market
segment.
Corresponding to these new trade show concepts, the functions and tasks of exhibitions have evolved.
From the exhibitor's view point the exhibitions had always been important distribution channels to sell
products directly. Now new objectives have been developed: e.g. the improvement of the company's
publicity and image, public relations and advertising.
Trade shows have become platforms for communication and developing relationships with clients.
Advanced marketing strategies show that a competitive market presence is only possible if the
participation is embedded in the integrated marketing concept of the company.

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The 21st century: Globalisation of the exhibition industry
The framework conditions for today's development of the exhibition industry were established by the end of
the last century.
● The breakdown of the communist system and the resulting transformation of the former centrally
planned markets to market oriented economic systems prepared the ground for intensified trade and
increased exchange of information.
● The formation of economically cooperating regions: e.g. EU, ASEAN, MERCOSUR, NAFTA und CUFTA is
positively influencing the exchange of goods, services and ideas.
● The liberalization of the Chinese market is supporting this development.
As a result of these changes the exhibition industry has started to adapt:
● New and large exhibition sites were built or are under construction in China, Korea, Singapore and the
Near East. The fast-developing nations in these regions place their expectations of economic growth
and prosperity on the exhibition industry. Some Asian organisers start to place their own exhibitions in
Europe or are cooperating with worldwide acting exhibition organisers.
● In Eastern Europe numerous exhibition organizers have expanded their trade show programme.
● European exhibitions organizers meet these challenges in different ways:
- Domestic trade show concepts are exported to the growth markets. They are following a branding
concept to hedge their market positions.
- Example: Three German trade show organizers cooperate in a joint venture with a Chinese
organization. They have invested in facilities in Shanghai.
- Other organizers cooperate with local partners to export their shows and to benefit from exhibitors
and visitors brought to their sites in return.
The future will show which of these ways will be the most successful.

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United States: The origins go back to London's 1851 Crystal Palace Exhibition19)
The first World's exhibition in London 1851 stimulated the development of comparable events in
America. These exhibitions draw on, and reshape an early tradition of agricultural and mechanical fairs.
● Horace Greeley and Phineas T. Barnum, organize America's first international fair in New York
City in 1853.
● It takes until 1876 for a group of Philadelphia civic leaders, together with the federal
government, to organise an international exhibition to celebrate the nation's centennial and its
reunification after the Civil War. The success of Philadelphia Centennial Exposition, attracting
millions of visitors, launches the first generation of American international fairs: New Orleans
(1884-1885), Chicago (1893), Atlanta (1895), Nashville (1897), Omaha (1898), Buffalo
(1901), Charleston (1901), St. Louis (1904), Portland (1905), Jamestown (1907), Seattle
(1909), San Francisco (1915), and San Diego (1915-1916)
● With the stock market crash of 1929 and the ensuing depression, the Century of Progress
Exposition (1933-1934) takes on unexpected importance and spurs the organization of
expositions in San Diego (1935-1936), Dallas (1936), Cleveland (1936), San Francisco (1939-
1940), and New York City (1939-1940). Fairs during the depression era draw audiences that
nearly equals the attendance at the earlier fairs and become a central part of Franklin
Roosevelt's New Deal efforts to demonstrate the government's concern for the economic and
social welfare of Americans.
● International expositions continue to be organized in the wake of Seattle's exposition and New
York's 1964-1965 extravaganza. San Antonio hosts HemisFair '68, Spokane holds a fair in
1974, and Knoxville and New Orleans organize expositions in 1982 and 1984, respectively.

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III. Benefits of Exhibitions
A. Economic Significance of Exhibitions
Economic functions
The exhibition industry takes over important economic functions. In the exhibition centre supply and demand
are brought together. Exhibitions offer an interactive platform to the market participants. They contribute to
the development and revival of markets and market segments. Additional economic functions are:
● Trade function: Transactions of goods, services and information

● Transparency function: Market overview
● Development function: Support of commercial development of nations, regions and cities
In many countries the exhibition industry has been, and is still, a political-economic instrument to stimulate
the national economy. Nevertheless, the auditing of attendance figures of the exhibitions is not regularly
imposed. Only a few of the worldwide exhibitions are audited. Therefore the following figures give only a rough
idea about the worldwide significance of the industry.
Extract: "The UFI Code of Ethics is designed to clearly state the dedication to quality and professional conduct
of all UFI members. It is a clear statement of UFI's ongoing support for auditing to ensure credibility and
transparency in the business activities of trade fairs and exhibitions."
The situation worldwide 2002

(according to UFI, the global association of the exhibition industry)
● approximately 30.000 exhibitions held around the world

● approximately 3,2 million exhibitors participated in the exhibitions
● approximately 350 million visitors came to see the events

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Europe 200320)
According to the Istituto di Economia e Gestione delle Imprese (IEGI, University Buccoini, Milano) the
exhibition industry in Europe has shown the following results in 2003:
EUROPEAN
TOTAL EUROPE
UNION
INTERNATIONAL EXHIBITIONS
Net space hired (sqm) 18.000.000
Direct exhibitors (number) 420.000
Total visitors (number) 36.000.000
Number of exhibitions 750
NATIONAL AND REGIONAL EXHIBITIONS
Net space hired (sqm) 24.000.000
Direct exhibitors (number) 710.000
Total visitors (number) 87.000.000
Number of exhibitions 7.150
TOTAL TRADE EXHIBITIONS
Net space hired (sqm) 42.000.000 50.000.000
Direct exhibitors (number) 1.130.000 1.360.000
Total visitors (number) 123.000.000 155.000.000
Number of exhibitions 7.900 11.000

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North America in 200121)

(according to CEIR (the Center for Exhibition Industry Research))
● A total of 13,000 exhibitions were held.

● Attended by 125 million visitors.
● Including 1,2 million exhibitors.
● The resulting contribution to the US and Canadian economy is estimated to approximately $ 100 billion.
Tradeshow week analyses the 200 largest shows (not including consumer shows) to take place in the United
States. In 2003 the following interesting data and ratios were created on a one year base.
Total net. sq. ft. of paid exhibit space 55.262.000

Total number of contracted exhibitors 180.000
Total professional attendance 3.702.000
Space rte range per sq. ft. $ 2,05 - $ 59,50
Total economic impact on host cities $ 4.96 Bil
Average number of contracted exhibitors 1.018
Average number of professional attendees 21.032
Average ratio attendees to exhibitors 21 to 1
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Asia
The Asian market for exhibitions is varied. There exist several regional exhibition markets because of the
geographic extension of the region. The most important are:22)
● China and Hong Kong

● Singapore
● Japan
● Korea and
● India
The development of the markets is different. China, Singapore and Korea show extensive progress while India
is developing slowly. Statistical data are difficult to research as neither uniform definitions and standards nor a
general obligation to audit the shows exist. UFI members, however, are obliged to audit "Approved events",
thus ensuring visitors and exhibitors of declared quality.

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China: Market of the future for exhibitions
● Forecasts for China say that within ten years the exhibition industry
will belong to one of the ten most powerful market segments in
China.
● In 2004 118 exhibition centres are registered where
● approximately 2500 exhibitions take place.
● Growth rates of more than 15 % are currently achieved.

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Network – trade fair organizing company
An exhibition organizer places orders, pays taxes and invests in the infrastructure of exhibitions. Beneficiaries
are the regional industry, the local government, and trade companies.
To organize and support trade shows employees are needed. Wages, jobs and work places are established.
These efforts lead to income in the region and/or the city. Personal expenditures multiply the beneficial
impact.23)

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Spin-off Effect
The benefit of trade fairs is not only restricted to the direct participants.
The spin-off effects also include the indirectly related players.
● first, the authorities profit from taxes paid on economic activities related to trade fairs
● secondly, all hospitality service providers profit by an exponential rise in demand, especially the
accommodation industry, transportation, restaurants and other purveyors of food and beverage
The multiplication effect increases the gain - taxis consume more fuel, petrol stations benefit, et cetera.
Additional money earned by employees and other workers will be spent in further consumption and the
catchment area.24)

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Network - exhibitors
Resident and non resident exhibitors pay registration and other fees to the organiser. They place orders, buy
personal goods, pay taxes, rent cars and pay for accommodation.
They employ temporary staff and contribute to the exposition with information, incentives and sales orders.
Beneficiaries, for example, are the organizer, employees from the region, retail companies, handicrafts, hotels,
restaurants, transportation, entertainment and local government .

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Network - visitors
Resident and non resident visitors pay admission fees to the organiser. They invoke services, buy personal
goods, pay taxes, rent cars and pay for accommodation and restaurants.
They contribute to the exposition with information, incentives and sales orders. In return they get a market
survey, information about products and services.
Beneficiaries, for example, are the organiser, retail companies, hotels, restaurants, transportation,
entertainment and local government.

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Network - region
Exhibitions, trade shows and consumer shows help to develop the town's image. The exhibition venue/region
becomes well known.
The region profits from information and incentives for the regional industry.

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Network - region
Demonstration of the image effect

For example, the excellence of exhibitions held in Singapore has been recognized by UFI which accredits fairs
and exhibitions of exceptional quality. In addition to the already existing exhibition facilities, the Singapore
Expo, which opened in March 1999, is one of the largest exhibition centers in the region. Singapore Expo has
placed Singapore on par with the best exhibition cities in the world.

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Network - region: Linkages and the sales multiplier effect
Linkages and multiplier effects are used to explain the relationships between an industry and the
creation of wealth in an area. Linkages describe the relationships between industries, and the sales
multiplier effect measures the direct, indirect, and induced effects of an extra unit of visitor
spending on economic activity within a host community. It relates visitor expenditures to the
increase in business turnover that it creates. As a result more jobs are created and hence wealth
and the overall image of an area increase. The following rough figures are calculated to estimate
the monetary effects of exhibitions. 24)
Sales volumes - exhibition sector 1.0
Multiplier for direct, indirect and 7,0 - 10,0

induced regional expenditures
How to read:
One EURO paid to the exhibition organizer for admission or for exhibitor fees has to be multiply
with 7 to 10.
Then you get the amount of money that is directly, indirectly and induced spent in the region.
In this way other enterprises, private persons, the region, state or the city profit from the
exhibition and the corresponding events.

Media comparison: Advantages of the marketing tool "participation in exhibitions"

In 2004, managers from industrial enterprises in Germany were asked to evaluate which communication
instrument worked best to reach certain targets. They could grade their answers between 1=excellent and
6=very poor. Below the results of the comparison between "Participation in exhibitions" and "Classic
advertisement" are shown.25)

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Media comparison: Advantages of the marketing tool "participation in exhibitions"

Organisations use different communication instruments to reach their marketing objectives. To make a
decision which instruments (see chart below) to use, it is important to know how efficiently each instrument
works. The evaluation of all communication tools concerning marketing objectives leads to the following
ranking. The "participation in exhibitions" ranks as the No. 1 tool (2.22). Personal selling follows. Both
instruments emphasise face-to-face communication. The other instruments are less effective. 26)

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Advantages of a trade fair participation for exhibitors27)

What are the reasons for such high ranking of exhibitions. If we look at the peaks of the evaluation there are
three major advantages. These are:
● To introduce new products and services

● To initiate sales and
● Relationship management with known and future customers.
Exhibitions are of high public interest. Important sellers and buyers visit a show. Media representatives use
the events for publishing news about products and trends. Therefore trade fairs are useful for product
launches. Because of these reasons sales are initiated, too. There exists a so called transponding-and-delay
effect, which means an exhibitor may realize a turnover from a show more than 12 months after the closure of
a show, particularly at an industry show.
The possibility to address potential clients directly allows face-to-face contacts. Within the company's
Customer Relationship Management (CRM) trade fairs are important tools to build up confidence. They are
used together with other marketing tools, i.e. internet, direct marketing, personal selling.
Trade fairs offer the chance to promote the company and analyse the competition. In this way, the existing
high public interest can be used to meet objectives such as image-building, positioning and brand recognition.
Trade fairs offer further advantages to business people, chiefly the ability to network within the industry while
achieving major marketing goals.

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The following cluster analysis of exhibitors shows that there are various approaches, objectives and priorities
which determine different types of exhibitors:28)
● Cluster I: “Hard sell exhibitors”

● Cluster II: “Communication-oriented relationship-managers”
● Cluster III: “Competition-oriented representatives”
● Cluster IV: “Hybrid exhibitors”
● Cluster V: “Ambitious regional exhibitor”
Cluster I: “Hard sell exhibitors”

This group of exhibitors
● is completely focused on meeting targets

● prefers specialist trade shows with a homogenous group of exhibitors, where direct selling is common
● includes goals achieving a set turnover, as well as remaining within the budget, especially in
comparison to participation in other events
● The larger the company, the higher the tendency to monitor the competitors

Cluster II: “Communication-oriented relationship-managers”
● Aim their efforts primarily at implementing communication objectives

● Prefer international trade fairs that are accompanied by other events, all of which are informational in
nature
● Aim to demonstrate their ability to solve problems
● Priority is given to analysis of protocols of conversation and structural composition
● They are strong adherents to Customer Relationship Management techniques (CRM)
Cluster III: “Competition-oriented representatives”
● Are only rarely concerned with specific goals

● Prefer a position within a heterogeneous group of exhibitors and most often participate in national and
regional trade fairs
● Are willing to compete and watch rival activities closely, often adopting their tactics, especially stand
design
● Success is measured in terms of visitor numbers
Cluster IV: “Hybrid exhibitors”
● Do not set extraordinary goals, although employee motivation as a goal is common

● Tend towards international trade shows because of their informational nature

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Cluster V: “Ambitious regional exhibitors”
● Aim at merchandising their goods (emphasis on product-policy)

● Are very interested in creating a positive image
● Are also very ambitious at evaluating success and comparing the
effectiveness of marketing tools

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C. Importance for Visitors
A comparable cluster analysis29) has shown that visitors – at technical fairs - can be differentiated into four
types:
● Type A: “Intensive trade fair user”

● Type B: “Special-interest trade fair user”
● Type C: “Trade fair stroller”
● Type D: “Pragmatist”
Type A: “Intensive trade fair user”
● Utilizes trade shows as an important source of information, particularly current market developments
● Is highly communicative, uses trade fairs for serious networking
● Attends 21 exhibitions on average per year and every visit is planned in detail
● In contrast to the other types, they tend to complete a sales transaction during the fair
Type B: “Special-interest trade fair user”
● Prepares in advance and use their visits intensively, carefully considering products or services
● Does not transact business directly at the fair

Type C: “Trade fair stroller”
● Uses trade fairs primarily as an instrument to observe the market

● Has little contact with exhibitor personnel and does not intend to buy
Type D: “Pragmatist”
● Does not have any specific aim such as transacting business or making a purchase
● Is very passive, seldom stays for more than a day and is oriented to other sources of information

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Allocation of Type A-D
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Other sources of information for visitors30)
Trade shows are excellent events to prepare decisions. How to read the graph: 91% of the management
queried use trade shows as an instrument to gather information for their business decisions.

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D. Outstanding Economic Functions
These are some special economic factors connected to trade fairs:
● Lowering transaction costs31)

The main reason for the existence of trade fairs can be found in the lowering of costs per transaction.
Such costs can arise from factors, such as search for information, contracting, legal advice, insurance,
and competition monitoring. A cost reduction is gained by the concentration of providers and
attendees in one location at one time.
● Neutral sales area

Trade shows are held at a location which is neither home territory of the exhibitor nor the visitor. The
venue is a neutral area that makes it easier for the visitor to freely select from a pool of information
offers, with no commitment. Both visitor and exhibitor are freed from interferences by daily company
duties.
● Conditional location pull32)

In many cases, a prerequisite for the usage of demanded services is that they can only be consumed
at the place of their production. Due to this, the customer is forced by a conditional location pull,
which means that he is fixed according to the place where the producer manufactures. This doesn't
apply to trade fairs.

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D. Outstanding Economic Functions
Limited availability
A distinguishing feature of trade fairs is their limited availability33). Four dimensions can be identified:
● The date and the place is fixed by the organizer and cannot be moved at the demand of an individual
participant;
● Some fairs have appointed times by tradition. They often have been fixed according to industry
innovation cycles. Other organizers date their exhibitions following the buying season of the industry.
● Sometimes important exhibitor groups are able to apply considerable pressure on the organizers
because of the importance of their attendance;
● Due to this, other marketing activities must be adapted to the fixed trade fair participation, whose
dates have to be considered, especially for advertising campaigns.
The limited availability also applies to other marketing instruments: e.g. advertising, TV or radio campaigns
take place at fixed dates and have a limited circulation. Trade shows are able to hyper compensate for this
flaw by offering the opportunity to personal and intensive contacts.

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IV. Integrated Exhibition Marketing
A. Information Sources
There are a number of reliable sources which distribute information about trade fairs. Many countries
support their exporting companies. Information on where and how to participate in foreign trade fairs is often
available from the responsible government body or from the national Chambers of Industry and Commerce.
The following information sources can be used:
● Trade fair companies and event organizers

● Chambers of Industry and Commerce
● Chambers of Industrial Crafts
● Trade and economy associations
● International databanks
● National auditing companies (i.e. companies which audit statistical data of trade fairs)
● Associations of the national exhibition industry
UFI, the global association of the exhibition industry

headquartered in Paris, is the leading umbrella organization for fair organizing companies, exhibition centre
managers and exhibition related service industries worldwide. UFI brings together important national and
industry exhibition associations. As a networking platform, it stimulates communication between the members
through several working groups and congresses. With more than 80 years of experience, UFI carries out
studies about the trade fair industry and the research results can be used for marketing or educational
purposes. As a representative of the trade fair industry, its responsibility is to provide added value.

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A. Information Sources
Expo-Online-Databanks Germany, USA and Asia

There are several databanks available to get information about trade fairs. Click on the companies name and
you will get access to the different databanks.
● Asian Sources (www.asiansources.com): Databank for Asian expositions. Additional information

about new products, Online-Product research, direct contacts to producers, exporting and importing
companies. Co-operation with “Trade Show Central”.
● AUMA (www.auma.de): Databank mainly for German expositions. The AUMA databank provides
detailed statistical information about trade fairs in Germany and about foreign trade fairs organized by
German companies.
● Exhibitions round the world (www.exhibitions-world.com): Asia-databank. 86 research
categories. The following information are available online: Export- and exposition guide, directory of
exposition companies, stand constructing companies and hotels.
● Expobase (www.expobase.com): Large databank of German and foreign expositions. Leads to
information about: stand constructing companies; hotels, services, forwarding trade.
● Expoguide (www.expoguide.com): Databank of all US expositions. Registration of all exposition
names and exposition sites
● Expoweb(www.expoweb.com): Expo-databank of US expositions with 78 industrial segments,
alphabetic registration.
● Trade Show Central (www.tscentral.com): Databank of more than 30 000 worldwide registrated
expositions; less information. Additional information can be ordered by e-mail. Co-operation with
“Asian Sources”.
● The Trade Show News Network (www.tsnn.com): Databank of US expositions with research
within 108 industrial segments. Newsletter free of charge with tips about expositions and marketing.
Online-Booking of hotels, tickets and car-renting. Experts answer to questions about expositions and
marketing. Monthly online-answering of questions.

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B. Specific Marketing Aspects
Trade fairs are multifunctional:
● they can be mixed with separate instruments and

● can hardly be seen as independent without overlapping with other tools, such as advertising or
promotion
● must be integrated into a company’s strategic marketing concept, and
● adjusted to the other marketing tools; all other marketing instruments must be adapted to the fair
participation and repetitive, because “Trade show participation is too expensive to be limited to the
exhibit alone”35)
Trade shows and exhibitions have relations to the enterprise’s
● Product policy
● Distribution policy
● Contract policy
● Promotion policy
Trade fair participation can be regarded as a stand alone communication tool or as a complement to other
marketing tools. Trade shows require a combined input of different communication tools. Many other
marketing instruments: e.g. advertising, public relations, promotion, have to be used to successfully
participate at the trade show.

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Product policy36)
● The product policy does not belong to the original

communication tools of trade fairs. However, exhibitors who
are using trade shows as an independent distribution channel
combine products and services to get a special fair package.
This package is sold as a unique offer, only available at the
trade show.
● To match the trade show nomenclature which is allowed by
the organizer, the exhibitors must select corresponding
company products.

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Distribution policy37)
Distribution can have two purposes for exhibitors.
● In some market segments trade shows are used as a unique

distribution channel and play an important role to sell the
company’s products (e.g. the jewellery and watch industry).
Baselworld
● The placement of the exhibitor’s booth in the exhibition area
can be regarded as a distribution decision as well. The right
placement – high frequency of visitors – will influence the
individual success of the exhibitor.
International Paris Air Show, Le Bourget, France

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Contract policy38)
● To motivate customers to visit the trade show and to buy

products and services there is the possibility to offer special
trade show prices to the visitors.
● They get discounts depending either on their exhibition
presence or on the product quantity bought. Sometimes
special terms of payment are offered. Visitors might
postpone regular purchases to take advantages of the
reduced prices.

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Promotion policy39)
● The participation in trade fairs is first and foremost a

communication or promotion tool, to promote products,
services and brands. On the following pages the specific
communication tools used for the exhibition participation are
described:

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Stand conception
Several experts are necessary to complete an attractive and informative booth: e.g.
experienced architects, stage designers, graphic artists, craftsmen, and booth builders.
● A booth concept is a three dimensional way of promoting a firm. Colours, light,

design and audio-visual techniques are used to present products and services.
● The pictures40) show different ways of using the possible design elements.
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V. Integrated Exhibition Marketing
Trade fair communication activities
● An advertising campaign41) can be used to announce a company’s trade show participation and to
invite special target groups.
Direct marketing has to be regarded as a corresponding tool to motivate customers to visit the trade
show.
● Trade fair - Public Relations.42) Depending on the company’s significance different public relations
instruments can be used: Press conference, press kits, press interviews. These tools help to announce
the company’s participation, to promote new products and to improve the firm’s image.
● Marketing events43) can be used as additional attractions. They are realized either at the booth or
can be organized outside the exhibition area. Marketing events help to produce emotions and support
the efficiency of the use of the other tools.
● Personal selling.44) Trade shows are a special tool to build up relations and to have personal
contacts to actual or prospective customers. The chances to practise customer relation management at
the trade fair are excellent.
● Co-operation for communication.45) The organizer’s and exhibitor’s interests are equal concerning
the promotion of visitors. The more quality visitors there are at the trade show the better for both
parties. Therefore organizers offer different material which can be used by the exhibitor: E.g.
brochures, leaflets, area plans, free entry tickets.

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IT-Marketing46)
● During the last years IT-Marketing has become a very successful tool to contact potential customers
and to open new markets.
Organizers offer special websites where the exhibitors are able to present their products and services.
● A newsletter to announce the participation. During the participation the exhibitor informs his
customers and other target groups about special events at the trade fair.
● A label signet which announces the participation should be attached to every outgoing mail in a digital
form.

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V. Trade Fair Participation
A. Selection Criteria
Trade shows are useful for many company strategies: e.g. launching new products, opening new markets,
improving many customer relationships. Each potential exhibitor has to select the right show for each purpose.
Therefore he should use as information sources as possible. The better the information concerning a show's
quantity and quality, the better the chance for a successful participation. Based on this information the
exhibition manager has to define criteria and objectives for the company’s trade fair participation.47)
The following criteria are relevant:
1. Types of trade fairs available for the product segment

2. Relevance of the trade fair for the market
3. Client target group
4. Competition
5. Costs
6. Quality of the trade fair organizer
7. Basic conditions

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1. Types of trade fairs

- National or international exhibitions
- Consumer show or trade show
● In order to use trade fairs efficiently as part of the marketing mix, it is necessary to be selective. The
type of exhibition - national or international, consumer or trade show - will be a first criterion to decide
if the company's marketing strategy and objectives can be achieved.
● If the company is not interested in international customers you should select exhibitions in which
national exhibitors take part and where domestic visitors are expected.
● Considering the different type of visitors consumer and trade shows should be differentiated.
Consumer shows are primarily for direct selling, while trade shows serve to develop relations with
customers and clients. At trade shows purchasing decision may be made after the event.

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2. Relevance of the trade fair for the market:

- Presence of the market
- Recurrence of the trade fair
- Themes
- Quality of supply and demand at the trade fair
- Completeness of the permitted market segments
- Catchment area
● The importance of a trade fair can be determined by different indicators.

● The presence of the market can be measured by the number and quality (i.e. market leader) of
companies representing the supply and demand of the market segment.
● Exhibitions take place on a regular base: once, twice or more often during a year, every two, three
years or even in longer periods. Depending on the marketing strategy and event schedule the right
exhibitions should be selected.
● The subjects and the nomenclature of the exhibitions is of importance for the decision to participate or
not.
● The quality of supply and demand is represented by the presence of high ranking managers and
visitors. Information is available from the organizers.
● The catchment area can be regional, national or international, i.e. the visitors are expected to come
from these areas. Depending on the exhibiting company's targets, this criteria is of importance for the
final participation decision.

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3. Client target group

- Regional origin
- Branch
- Size of the company
- Area of operations
● A trade fair is an excellent opportunity to get in direct contact with the relevant target groups. It can
be more efficient than the company’s field service.
● Therefore, the company should know whom they want to address at the fair. The design of the trade
fair participation should be created according to the target groups.
● These can be defined based on the following aspects:
Regional origin, branch and size of the client company, the area of client operations, frequency of
client purchasing, and purchasing power.

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4. Competition
- Wanted or not
Following the rules of a market oriented system it is advantageous to be present where your competitors are,
too. However, sometimes it is desirable to avoid direct contacts with competitors (e.g. looking for a test
market, in case of obvious competitive disadvantages)
5. Costs
- Defined budget
- Expected costs
The basic question is: Can we afford the trade fair participation?
The budget is calculated based on the expected costs and must be defined before the trade fair participation is
contracted. If the budget is sufficient the participation can be realized; if not, budget or type of participation
must be adapted.

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6. Quality of the trade fair organizer

- Experience and know-how
- Marketing strategy
- Exhibition venue and accessibility
The management quality of the trade fair organizer can also influence the decision to participate. The quality
of the equipment of the site, such as space, design, type of halls, open air grounds and the quality of the
facilities have to be acceptable. The experience of the organizer supports the quality of the exposition.
Transport connections and infrastructure may also influence the participation decision. Is the venue
geographically centrally located; is there sufficient accommodation available?
7. Further conditions
- Date
- Availability of personnel
Depending on the market segment, purchasing periods should be taken into consideration. The date of the
show has to fit this specification. Because of the internal work loads, sometimes the best booth personnel is
not available. In this case the participation should be reconsidered.

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The following chart shows a hypothetic example for choosing the right trade fair. Background: A Russian
exhibitor (e.g. a producer of natural stones, see case study 2) intends to open the European market. Follow
the explanation on the next slide.
Alternatives
Brussels,
Verona, Italy Valencia, Spain, Nuremberg
Appropriate trade fair Belgium,
MARMOMACC MARMOL Stone+tec
Batisbouw
Weight Points Product Points Product Points Product Points Product
w p wxp p wxp p wxp p wxp
Criteria i
Target group 28 5 140 7 196 4 112 4 112
Significance 21 6 126 8 168 4 84 4 84
of trade
show for
market
Quota of 19 7 133 6 114 5 95 3 57
trade
Booth costs 11 6 66 8 88 4 44 2 22
Catchment 15 7 105 6 90 5 75 4 60
area of
trade fair
Recurrence 6 5 30 7 42 7 42 7 42
(of the
trade fair)
Total 100 600 698 452 377

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Scoring procedure:
● Choice of the criteria which are decisive for the quality of an event from the view point of the
exhibitor. Some of the most important criteria are already suggested. Further criteria can be included.
● Weighting of the selection criteria. Every criterion gets a weighting corresponding to the individual
significance for the quality of the event.
● The trade fairs are assessed with a score between 1 and 10 per criterion. This score shows how the
quality is estimated by the exhibitor per criterion and trade fair in relation to the competing fairs.
● Weighting and score are multiplied by each other to calculate the score per fair and criterion.
● The scores are added up for the total assessment. The higher the achieved total assessment, the
better the assessment of the respective fair is from the view of the targets and quality requirements of
the exhibitor.
Example:
● In the attached case four fairs were judged at four different sites. The choice and assessment has to
be understood as an example.
● The trade fair in Valencia has reached the highest total score with 698 for the hypothetic exhibitor. The
other trade fairs are following.

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B. Exhibition Strategies and Styles
Once a decision to participate has been made, the exhibition strategy, the exhibition style and exhibition
targets have to be determined. Exhibition strategy and style complement each other. It has proved to be
helpful to follow these planning steps as the exhibition styles make it easier to decide which booth design and
which communication tools to choose for the participation.
Exhibition (marketing) strategies48)
● Within the market processing strategy it is decided which products will be offered to which markets.
The company can either present new or already known products. It might choose the present markets
as relevant for the market offer or new markets which are not yet opened for the company's
assessment.
● If you combine the potential markets (new or known) with the type of products (new or known) four
market processing strategies can be distinguished. For further explanation see the next slide.
Exhibition style49)
● The concept of the exhibition style provides a guideline from which the design elements of a booth can
be chosen and the marketing instruments can be selected and finally applied.
● An exhibition style supports the decision making process in the run-up to the exhibition. The
management has to choose which communication instruments (i.e. press conference, brochure, direct
mailing, special event, banners, advertisement) to use. The exhibition style delivers the criteria for the
final decision.

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Products
Present products New products

Markets
Market penetration Product development
Present markets
Customer oriented Product oriented
exhibition style exhibition style
Markt development Diversification
New markets
Contact oriented Advisory oriented
exhibition style exhibition style
Market penetration
Customer oriented exhibition style.
Penetration of the market means that the exhibitor tries to boost sales with the help of established products.
To this end, old consumers must be motivated to generate higher sales, while new consumers must be
convinced for first time purchases. As the application of the products is widely known, attention should be
drawn to customer care and relations. In this case, a strong customer-oriented exhibition style is beneficial.
Discussion areas where the personnel can talk to the customers are necessary. Advertising in the catalogue,
on site maps, in professional journals as well as events at the booth (e.g. customer evenings) are important
marketing techniques.

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Product development
Product oriented exhibition style.
The product development strategy emphases the selling of new products to acquired customers. The product
has to be presented with its application possibilities. This leads to a product-oriented exhibition style. Besides
sales promotion (samples, coupons and giveaways), special shows of the organizer, special events at the
exhibition hall, and direct mailing are strong marketing techniques, which help to give the product special
emphasis.
While planning the booth concept, it is important to make sure that the personnel have enough space for
product display and usage.
Market development
Contact oriented exhibition style
If the strategy is to open new markets, the exhibitor has to gain new customers for its products. Product,
company, and brand have to be introduced at the same time. This means that the exhibitor has to make sure
that his trade fair presentation is comprehensive as well as catchy. New contacts and open communication
have to be given special emphasis.
Therefore, a contact-oriented exhibition style should be preferred. The booth should be created in an open
style, in order to invite customers to the booth. The simultaneous promotions - advertising of the exhibitor (e.
g. hand-outs), announcement advertising (in trade fair journals or daily newspapers), and outdoor advertising
(like transportation or advertising-banners), along with sales promotion (price competition, lottery, giveaways)
- are important steps to reach the target groups.

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Diversification
Advisory oriented exhibition style.
The exhibitor’s task becomes much more difficult if he diversifies his sales activities. In this case, he cannot
fall back on his experience either with known or established markets. Beyond this, he is looking for new
customers.
Application-possibilities and advantages of the product should be presented and problem-awareness should be
created. To achieve this, intensive consultation and contacts with experts are necessary.
Therefore an advisory-oriented exhibition style should be used. For consultancy it is important to have a quiet
seating area. At the same time the presentation of products and brand has to be possible. One option is to
divide the booth into two floors.

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C. Exhibition Targets
Why set targets?
One important step in the participation concept is the definition of exhibition targets, since
efficient participation in a trade fair is only possible on the basis of sound goals.
●
The organisational preparation is influenced by the set goals. After the show they offer the
possibility to check the success of the participation.
●
The content of exhibition targets has to be determined. This includes the definition of the
target groups and the determination of the time in which the goals should be realised.

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The diagram shows the results of an empirical market research.50) In this

questionaire, exhibitors have declared that they set the following targets
when they participate in exhibitions.
„To increase company image“ was declared to be the most important goal
for more than 80% of the exhibitors. 70% of the sample emphasized
„meeting new groups of customers“ and „ developing personal contacts“.

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Targets must be operational. This means:51)
● Measurable
● Related to a specific period
● Assigned to a responsible person or group
● Realistic
● Acceptable: Do you think that the people who have to work for the targets will accept contents and
extension of the target?
● Motivating: Are you motivated by your targets or are they a burden for you?
Economic targets / Psychographic targets52)
● There are different ways to determine objectives. Besides dividing aims following the marketing mix, it
is also possible to divide into economic and psychographic goals.
● The success of economic goals is relatively easy to measure, because it is focused on measurable data,
such as the turnover, cost-reduction, expanding the market share and other criteria.
● The psychographic targets mainly try to influence the attitude of the visitors. This is important if a
company tries to improve its image or wants to influence the visitor’s view of the company. This
success is invisible and therefore hardly measurable as it happens in the so-called black box.

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Criteria Contents and Measurement

To boost sales Number of orders
To expand sales Total orders for goods:
with different target groups
To encrease the degree of Number of specialists and private
distribution visitors
To aquire new market segments / Number of new customer contacts
Customer groupings (e.g. according to regions, sectors of
industry, sales routes)
To expand or retain the share of the Sales compared to previous trade
market fair
To acquaint visitors with the range Number of visitors, number of old /
of products new customer contacts; number and
quality of initiated press
publications; number of brochures
and samples distributed.
To create / improve brand loyalty, Specific questioning of visitors
product awareness - Company; how well known
- Memorability of new products
- Knowledge of the brand
- Characteristics of the product
On the left side you find the category of targets; on the right side, contents and the method to audit the data
are described.

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To give an example for operational targets the following economic and psychographic targets are determined.
If the Russian exhibitor (see chapter V. A "Selection Criteria") has already participated in the trade show
Marmol in Valencia in 2004, the new targets could be determined as follows:
Economic targets
● To increase the number of visitors from 250 to 320 at the trade show Marmol 2005; responsible:
Trade Show Department.
● To increase the number of orders from American customers (2004: 25; 2005: 40); responsible:
Marketing Department.
● To increase the sales of additional services by 15% (2004 – 2005); responsible: Field Service.
● Reduction of trade show costs by 5% compared to last years trade show: responsible: Exhibition Team
Psychographic targets
● To improve the number of positive media publications by 15% from 35 to 40; responsible: Public
Relations Team
● Increase of visitors share who recognize the companies brand four weeks after the show; today 25%,
target 35%; responsible: Marketing Department, Marketing Agency, Market Research Team.

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Objectives for trade shows: Consumer and manufactured goods
The individual participation objectives depend on the different types of trade fairs, such as consumer goods
fairs or investment (manufactured) goods fairs.
The main goal at a trade show for consumer goods is the placing of orders. The trade visitors order goods for
the following season. They do not need an authorization for their purchasing decision and can negotiate the
sale at the fair. It is therefore easier to monitor and measure the success attained.
At trade fairs for investment goods, immediate orders are comparatively unimportant. The negotiation-process
takes much more time because technical issues must be resolved. There is a greater financial investment and
a multilevel authorisation in the buying decision. Sometimes the investment decisions are made a long time
after the trade fair closed. The order can’t be assigned directly to the event. A difficulty at trade fairs for
investment goods is, that the success is not properly measurable, because the focus is on image building,
increasing publicity, imparting information and consultancy.

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D. Stand Impact
The significant difference between a stand and the usual possibilities of visualization is the enhancement from
the second to the third dimension, that also means an extension to possible presentation.52)
The booth concept is relevant for the right communication and budget policy of the exhibitor. It also influences
the exhibitors’ logistics to get the exhibits and material at the right time, to the right place, at the lowest
costs. On the following pages several criteria are discussed which have to be considered for the booth
assembly.
Criterion 1: Booth types

The booth is a three-dimensional marketing tool. It represents the company and is sensual. Customers and
visitors compare the booth with that of competitors at the trade show.
Criterion 2: Alternatives of booth design

Several factors have to be considered to determine which kind of booth should be presented at a trade fair.
Follow the explanations on criterion 2.
Criterion 3: Booth planning and realization

The decision concerns marketing and cost aspects. If the exhibitor likes to reuse the booth he has to decide
which booth type will be the best alternative for him.
Criterion 4: Booth areas and functions

The booth consists of different areas with different functions. Corresponding to the exhibition style, the
management has to decide how the use the space: for presentation, for consulting or for easy and frequent
contacts.

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D. Stand Impact
Criterion 1: Booth Types
The various types of trade fair booths are influenced by the type of space
allocation and access to the aisles.
There are four basic types of booths.
● Row booth (R)

● Corner booth (C)
● End booth (E)
● Block booth or island booth (B)
Row booth (R)

The standard row booth is designed to stand back-to-back with an opposite row or a wall and will have
adjacent booths on both sides. Only one side (occasionally two) faces an aisle. The dimension of the open
booth front is used to distinguish a narrow, deep booth from a wide stand which is less deep.
Corner booth (C)

A corner booth is situated at the end of a row. It provides access from two sides, from the aisle along the row
and from the one vertical to it. A corner booth has more sides accessible to the public, but the same overall
area, and is therefore more effective than a booth located in a row. As a corner booth can be seen from two
aisles, higher numbers of visitors can be expected.

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D. Stand Impact
End booth (E)

This booth at the end of a row is surrounded on three sides by aisles. It is qualitatively superior to the above-
mentioned types, as it appears more inviting and more representative if exploited properly.
Block booth or island booth (B)

The block booth or island booth is bordered on all four sides by aisles. Since it is accessible to visitors from all
sides, it attracts a great deal of attention due to the fact that it is completely independent from other booths.
The block booth or island booth is the most expensive type of booth. It requires more elaborate design, which
is reflected in the higher costs for booth assembly and fitting.

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D. Stand Impact
Booth assembly Criterion 2: Alternatives of booth design
System or conventional
booth The booth appearance at a trade fair is a marketing challenge. The booth
should be more attractive than those of competitors. Visitors should
Design principles remember the booth, exhibits and the company’s brand.
To reach these goals the following decisions have to be made:
● Does the company assemble the booth itself or engage a booth construction company?
● Is the use of a system or a conventional booth convenient?
● What kind of basic design shall be used for the booth assembly?
Follow the explanations on the next pages.

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D. Stand Impact
Booth assembly (see picture)
There are different ways to assemble the booth:
● The company itself is responsible for the whole design and the assembly. In this case personnel with
appropriate know how has to be available. Additionally stand building material has to be ready for use.
● The exhibitor might instruct a booth building company to create the booth. In this case the exhibiting
company is responsible for the right briefing – the guideline for the construction and the trade show
appearance. The costs will be much higher compared to an independent booth construction. However,
know how and special expertise concerning the location and the trade show organizer is with the
service provider.
● Some organizers offer turnkey booths which are simple system stands. They are assembled and
disassembled without presence of the exhibitor. This is a relatively cheap and easy solution especially
for newcomers. Advantages for the exhibitor: No responsibility for assembly and disassembly of the
booth, less and clear planning costs. Disadvantages: Limited opportunity to present the company
individually.

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D. Stand Impact
System or conventional booth
The decision to apply a system booth or a conventional design should be based on several criteria:
● A reusable booth assembly is more cost-effective than a conventional one.

● The substantial advantages of a system assembly are:
- easy to transport and store
- low staff requirements during assembly and disassembly
- sensibly priced, pre-fabricated, precisely fitting components
- flexibility and adaptability
● Disadvantages are: less distinction from other exhibitors; dependency from the limited application of
the system.
● Conventional or individual booth assembly is especially attractive for companies involved in
construction or interior work. They have extensive knowledge of materials and fabrication, and they
have the necessary production facilities and qualified staff.
● Conventional assembly enables highly individual designs to be realized. However, individual designs
are only available at relative high costs.

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D. Stand Impact
Design principles
There are three methods of booth assembly:
● Open assembly: No external screens that might obstruct the view. The booth is visible at first glance.
All exhibits can be identified straight away.
● Partially open assembly: external screens are included to prevent visitors from seeing directly into the
booth.
● Closed assembly: The booth consists of external screens (possibly with windows), making it necessary
to enter the booth in order to view the exhibits, watch demonstrations and talk to the stand staff.

D. Stand Impact
Finance decision Criterion 3: Booth planning and realization
Activities &
time schedule The booth planning and realization stage contains several aspects:
● The participation in a trade fair is cost-intensive. There are three

possibilities to invest in a booth: Buying, renting or leasing. All alternatives
have to be known and compared to find the most cost-effective solution.
● Trade fairs start at a fixed date. Therefore the different planning and
realization activities have to be determined. They have to be brought into a
time schedule. This way the completion of the booth can be guaranteed.

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D. Stand Impact
Finance decision
The alternatives: Buying, renting or leasing should be chosen according to the individual situation of the
exhibitor:
● When you buy a booth, you should consider that you have to make full use of the booth, storage and
maintenance are the company’s responsibility.
● Renting a stand means paying for one use. In general a trade fair organizer or a booth constructing
company takes the booth back.
● Leasing means a special type of finance. If the booth will be often used and the company does not
want or is not able to finance the booth in one go this alternative is very attractive. The stand building
company accepts leasing payment and will care for the booth between the different trade shows.

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D. Stand Impact
Activities & time schedule
The planning procedure starts at least 6 -9 months before the trade fair takes place. The following activities
should be determined by contents and time:
● Register with organizer (9 months before)

● Briefing and rough stand design (8 months)
● Planning assembly and disassembly (8 months)
● Construction of booth (6 to 2 months)
● Preparing furniture, equipment and exhibits (6 to 1 months)
● Compiling material (3 – 1 months)
● Transport of material (4 to 3 weeks)
● Assembly of booth (2 – 1 week)
● Handing over of booth (day before trade fair)
● Disassembly of booth
● Transportation to company
● Repair and storage

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D. Stand Impact
Areas and Criterion 4: Booth areas and functions

functions
Each booth consists out of four areas with different functions. The principles are
described on the next slides:
● Area of orientation
● Area of presentation and demonstration
● Area of consultation
● Area of logistics

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D. Stand Impact
Area of orientation
- To gain attention, eye-catchers are used in this area;
- Towers may be used as fixed and freestanding components for identification, e.g. by presenting the company
logo.
Area of demonstration
- The advantages of the product should be pointed out in this area;
- Products are presented by the booth personnel;
- First interaction between staff and visitor;
- Opportunity to get brief information or samples is expected by visitors.
Area of consultation
- Quiet and separated place, removed from the usual trade bustle;
- Negotiations and talks can be carried out without unnecessary disturbance;
- Ideal are cabin lounges with conference fitting;
- On average, visitors only remain 11,8 minutes at a booth, therefore this time should be used productively.
Area of logistics
- Not used by visitors, purely functional design;
- Storage rooms, small back offices, kitchen, recreation and catering area;
- Size of this area depends on the stand size, smaller stands sometimes do not have this area at all;
- At a larger stand the importance of the logistic area grows as these booths can be compared to headquarters
where many duties have to be coordinated.

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E. Follow-up Measures
The assessment of a companies’ activities is an integrated part of an efficient management process.53) At long
last it decides after the closing of the fair whether the fair participation was a success or not. To be successful,
however, the personnel has to work actively also during the time after the fair.
Visitor records have been prepared, contacts have been made and many new ideas have been collected. Now
the exhibitor has to rework these material and contacts.

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The reworking54) after a trade fair participation is the first step in

the whole managing process after the trade show. Three different
tasks have to be focussed on:
● The visitors at the fair have expressed special wishes which

have to be immediately fulfilled. This requires careful
organization and planning.
● Why not publish the details and the success of the fair? The
clients of the company, who haven’t been at the trade
show, want to know what has been going on during the big
event.
● The staff which had to stay at home needs to be informed
about the results of the show. This will motivate them for
the future.

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The visitor records which have been written during the trade show
contain numerous details about the customers. This information is
the starting point of the reworking process.
● The visitors we have to contact now can be: Regular

customers; Very Important Persons (VIPs; e.g. politicians,
other representatives); media representatives; other
visitors (e.g. representatives from universities,
associations).
● The activities after the show can be:
- Sending information material;
- Preparing a tender;
- Appointment with sales staff;
- Invitation to enterprise;
- To negotiate an order.
● Specialities see next slide

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What is important for the activities after the show (specialities)?
● The customer wants his wishes to be fulfilled as soon as

possible. This could mean that the exhibitor already sends
information brochures while the trade show is still going
on. To reach this quality of customer relationship the staff
at home has to be prepared to do this job. Communication
and personal responsibility have to be determined in
advance.
● The customer contacts have to be continued after the
show. One department, or even better, one person should
be responsible for further contacts.

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The successful appearance at a trade show is a very useful

opportunity to practice public relations:
● If there is a successful completion of a contract this is very

often published to show the importance of the company,
the quality of the products and the acceptance of the
customers. Press releases have to be prepared and
meeting with media representatives should be organized.
● Not all customers have visited the trade show. It will improve the relationship with those clients if they
are informed about the importance and success of the trade show. Direct mailings, but also specially
prepared brochures might help to develop a unique selling proposition. If the company uses customer
newspapers these are excellent ways to inform ones clients. Well informed and prepared sales staff
might support this initiative during personal contacts.

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One of the most important, but sometimes neglected activities

after the trade show is to inform the staff which remained at home.
As trade shows are sometimes milestones for a market segment,
the staff should be informed about what is going on in the market,
who are new and old competitors, how do the customers assess
their own products and services and so on.
● Reports have to be prepared to inform the different

departments: Procurement, R&D, sales, management,
production.
● The instruments which can be used are:
- News letters;
- Personal meetings;
- E-mail reports;
- Staff newspapers;
- Direct mailings;
- Company meetings
- Homepage of the company.

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F. Risk Management
Trade shows combine opportunities and risks. The opportunities are meeting new clients, developing a better
company image and placing orders. However, there exist normal economic risks such as less contacts and
contracts; low turnover and a low contribution margin. These risks can be minimized if the planning and
preparation for the participation is done correctly.55)
Other external factors might influence the trade fair participation as well:
● Political Risk
- Revolutions and
- Hostile interventions by the government;
- Unforeseen loss of a licence;
- War risk.
For example:
After September 11th, 2001 the visitor rate at the COMDEX, Las Vegas dropped from 250.000 people
in 2000 to 150.000 in 2001
● Medical Risk
- For example infection risk by SARS
For example:
- Hong Kong Trade Development Council and China External Trade Development Council were forced
to cancel four important industrial mega-shows in Hong Kong and Taiwan
- Fair organizers worldwide prepared special services for exhibitors and visitors from effected regions

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VI. Evaluation of Participation
The assessment of the company’s activities is an integrated part of an efficient management process. At long
last it decides after the closing of the fair whether the fair participation was a success or not. To be successful,
however, the personnel has to work actively also during the time after the fair.56)
As we have learned in former chapters, trade show objectives are important preconditions to carry out
successful trade show participations. After the show, the aims have to be tested and analyzed to determine to
which degree they have been fulfilled.
The planned budget has to be verified as well. Deviations have to be identified and analyzed.

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Return on investment (ROI)
● The perception of the success of a trade fair participation is closely related to the “Return on
Investment (ROI)” of a show. Exhibitors should be able to ascertain if the participation in the
exhibition was "successful" or not.
●
For this reason exhibitors must calculate the benefits of their participation based on an
evaluation of the resources expended (e.g. money, man-hours, and other investments) they
used for the participation and how much benefit they got out of the show.
●
At present stage there are several differing models in use which differ very much. Scoring
models are used in which quantitative and qualitative returns are transformed into uniform
scales.
●
The “Trade Fair Benefit Check” developed by AUMA (www.auma-fairs.com) is designed to

measure the benefits of show participation on a wide scale, taking into consideration the
monetary equivalent value of quantitative and qualitative returns.

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A. Importance of Evaluation 57)
● Controlling as a management task serves the check and

command of the enterprise. Components are: Aim
development, planning, realization, testing.
● The check of a participation in a trade show is part of the
overall controlling process and will help:
- To optimize the marketing mix of the enterprise;
- To supervise the cost-benefit relations and
- To check and optimize the effects caused by the trade
show appearance.
● The measures and tests available help to check the trade
show targets can be used during or after the show.

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● Before the exhibitor checks his marketing targets the

following questions should be answered: What should be
tested? Which methods should be used? Who should be
responsible for the testing? What is the budget for the
testing process? How should the measures be integrated
into the timeline and organization of the participation? How
do we use the results after the show?
● During the trade show the measures listed on the left side
can be used. They will be described on the following pages
in more detail.

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● Objective
Analysis of the information behaviour and the product's
interest for visitors
● Method
Calculation of the beginning and final inventories of the
different materials (e.g. give-aways, informative material)
● Assessment
Simple control instrument. Main emphases of the visitor
interests are recognized. Partly restricted information
about perception and acceptance of the range of products
and performances at the booth. As an additional control
instrument recommendable.

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● Objective
Analysis of the visitor frequency at the booth. Conclusions
on the visitor interest possible.
● Method
Specification of counting points. All visitors who enter the
stand are counted. Time period: on all days during the
opening hours of the fair. To get better results sometimes
only the personal and documented contacts are counted.
● Assessment
Simple control instrument. Activation degree of the visitor
interest and publicity of the company can be stated.
Visitors can be identified more precisely (e.g. sex; age).
Multiple counts cannot be excluded. Qualitative interviews
as an additional instrument recommendable.

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● Objective
Documentation of the individual visitor behaviour in a
spatial and temporal view.
● Method
Tracking of single visitors by trained staff. Behaviour is
documented in an elevation paper (e.g. duration of the
visit, special stops, reactions to exhibits, number of the
visual contacts, dealing with informative material, frame of
mind during the conversations).
● Assessment
Expensive control instrument. Use of specialized staff is
necessary. Evaluated: The activation and customer contact
aims in qualitative form. Only low case numbers are
possible.

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● Objective
Investigation of complex and individual surveys of the
exhibitors.
● Method
Verbal, written and computer-assisted interviews with the
stand visitors. Interviews last approx. 5 to 20 minutes
depending on subject and surroundings.
● Assessment
Expensive control and market research instrument.
Evaluated: Stand visitor structures (short interviews);
Judgement of the booth (e.g. information offer, choice of
the exhibits, quality of the customer contact, attractiveness
of the booth).
Advantages are to discover observable reactions of the visitors (e.g. to exhibits, special events); but also to
analyze e.g. attitudes, opinions. No sample inquiry ensured; interviewers can have influence on the reply.
Structure of the people asked can be one-sided.

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● Objective
Collecting of information about the visitors; socio-
demographic, company specific data, reasons for the stand
visit, measures for the re-working.
● Method
Structured or unstructured resume of the contacts by the
exhibitor's staff at the stand.
● Assessment
A report is not taken from every conversation. Hectic
surroundings. Important information is partly forgotten.
Knowledge about the judgement of the fair presentation
and the exhibits aren't taken in general. Visitors who only
look around aren't included. Instrument has to be used in
any case. Makes re-working after the show easier.

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● Objective
Investigation of complex and individual questions about the
means and long-term effectiveness of the fair engagement
(distance of approx. 4 -6 weeks after the fair; or in the
long-term control area even later)
● Method
Verbal and written interviews with known stand visitors.
Interviews last approx. up to 20 minutes depending on
subject.
● Assessment
Expensive control and market research instrument.
Particularly psychographic aims are evaluated: Publicity of
the enterprise, recognition of logo, products, statements
concerning products, long-term change of the behaviour.
Sentimental values in comparison with competitors.
Advantages are to get to know reactions of the visitors referring to e.g. attitudes, opinions, image.
Comparison of reference groups (visitor-not visitor) is possible. Important method with regard to the
evaluation of the fair as a communication tool.

back
● Objective
Improvement in the fair participation, particularly stand
service, effects of the fair participation on the daily work,
collecting of suggestions from conversations with
customers.
● Method
Structured interviews with the exhibitor's staff at the stand
during but also immediately after the fair.
● Assessment
Cost-effective instrument. Experiences are documented
and made useable for the coming events. Problem:
Interviews with the exhibitor's staff are neglected as there
isn’t any immediate use.

back
● Objective
Efficiency check of the invitation campaign (direct
mailings).
● Method
Documentation of the reactions to the invitations: Answers,
reactions to second mailing and telephone contacts,
accepted invitations at the booth.
● Assessment
A cost-effective instrument. The results can be used for a
differentiated re-working of the visitors. Visitors met at the
booth have to be treated differently than customers who
haven't accepted the invitation.

back
● Objective
Check and comparison of the composition of the customers
at the booth.
● Method
Comparison of the structure data of the visitors raised by
the organizer with the data investigated by the exhibitor.
Visitor interviews necessary, at least to get the right
structure data.
● Assessment
Evaluation of the segment specific range of the trade fair is
possible. Accessibility of the target group can be tested.
Problem: Structure data of the organizer and those from
the exhibitor are sometimes not suitable. The value
remains restricted: Important structure data are missing as
not all relevant data are investigated. Data aren't available
for every trade fair.

back
B. Efficiency Assessment58)
The planned budget has to be checked as well. Deviations have to be identified and to be analyzed.
On the basis of the budget check some coefficients can be measured to compare participation in different
trade shows or to evaluate the annual participation in one show.
During the budget check the planned and actual costs are
compared. The target-performance comparison of the costs gets
informative if all costs (e.g. invoice figures, imputed costs) have
been accounted for the project.
The budget check contains the deviation analysis and the

calculation of characteristics.
First of all the deviations are identified. The exhibition manager has to ask what are the reasons for the
differences between planned and actual costs.
The characteristics calculated for one or, even better, for several (comparable) shows, prove the efficiency of
the participation.

back
B. Efficiency Assessment59)
Planned costs € Actual costs € Deviation €

Rental of stand 6.200 6.200 0
Power Supply 600 650 50
Other basic costs 1.250 1.290 40
Construction 8.450 12.100 3.650
Equipment 1.800 1.860 60
Design 1.900 2.300 400
Depreciation 600 600 0
Stand Service 1.750 1.750 0
Communication 2.200 2.350 150
Transport 1.300 1.300 0
Waste disposal 50 50 0
Personnel costs 5.350 6.000 650
Travel costs 3.100 3.300 200
Other costs 1.850 1.900 50
TOTAL 36.400 41.650 5.250

back
The reasons could be:
1. Construction (3.650; 42%); Design (400; 21 %); Equipment (60; 3,3%).

The exhibitor decided to improve the stand construction and design shortly before the trade show.
Therefore the costs increased. However, the stand was more attractive; more visitors came than
expected; therefore the communication costs rose as well (+150; 6,8%).
2. Personnel costs (650, 12,1%). Because of the improved communication at the stand more personnel
was needed. External staff was hired to manage the increased number of visitors.

back
● Objective
Comparison of the participation in different trade fairs, but also comparison with alternative marketing
instruments with regard to cost-benefit relations
● Method
Recording of different data from different sources: Turnovers, costs, marginal contributions from the
accountancy, visitor statistics, visitor records.
● Assessment
Suitable proceedings to check profitability of fair participations. Expensive data elevation necessary.
Interpretation of the results difficult. Continuous recording of the data over several trade fair periods
necessary.

back
Trade fair coefficient I
● The exhibitor wants to know how much turnover has been

initiated by the trade show participation.
● Assuming a turnover at the fair of 125.000 € and costs of
41.650 € each 1.000 € have produced a turnover of 3001 €,
or each € spent at the trade show has led to 3 €
turnover.

back
Trade fair coefficient II
● Trade shows have become communication platforms.

Therefore most of the contracts are completed after the
show. It makes sense to assign the turnovers realized at
the show, and several months after, to the participation.
However, there are some interface problems. If the above
proposed calculation is always done in the same way
different trade shows become comparable.
● Assuming turnovers at the fair, and four months later, of
380.00 € and costs of 41.650 € each 1.000 € have
produced a turnover of 9123 € , or each € spent at the
trade show has led to 9 € turnover.

back
Trade fair coefficient III
● To get to know more information about the importance of

the marketing instrument “Trade show participation” and
its relevance for the turnover of the company the
coefficient III has to be calculated.
● Assumed an annual turnover of the company of 1.520.000 €
and costs of totally 208.250 € (five trade shows) each
1.00 € have produced a turnover of 7298 €, or each €
spent at the trade shows has led to 7,3 € turnover.

back
Costs per visitor
● The profitibility of the participation is documented by the

coefficient “Costs per visitor”. How much money has to be
spent to get contacts to potential customers.
● Assuming that 260 visitors have visited the booth of the
company and costs of 41.650 € have arisen the costs for
each visitor are 160 €. This figure can be compared with
the costs for field service, direct mailing or advertisement.
● To get more informative figures it is possible to divide the
visitors into different groups: Professional, new, foreign
visitors; Management, customers with completed contracts.

back
VII. Summary
Modern trade shows have developed from a long historical tradition, which mainly influenced the economic rise
of modern Europe and increase of trade between Europe and the East.60)
Todays trade shows
● Are a powerful marketing-tool;

● Represent themselves as information and sales platforms;
● Are important presentation instruments for special market segments;
● Initiate profits for exhibitors, visitors, organizers, service providers and the local economy.
Trade show participation
● Must be integrated into an overall marketing communications concept;

● Supporting tools must be adjusted;
● Trade show concept must reflect the company`s strategy.
Benefits
● High attention, not only by the target group but also by the media;
● Remarkable number of contacts with target group at relatively low costs;
● Efficient tool to realize Customer Relationship Marketing (CRM);
● Experience with trade shows help to improve and ensure maximum return on investment.

VII. Summary
Disadvantages of participations
● Relatively high expenditure;

● Practical utilisation of resources;
● Problem of limited availability of trade shows.
Future development
● Trade fairs still play an important role in marketing, and they will continue to do so in the future;
● Marketing tools, such as special events, exhibitions and conferences grow together;
● Expanding markets for trade fairs in Asia and other regions.
● The internet plays an important role for future trade fairs: Not as an alternative, but as a supporting
tool before, during, and after the trade fair.

back
Fußnoten
Footnotes - Chapter I A:
1) Cf. Barnhart, Robert K, The Barnhart Dictionary of Etymology, London 1988, p. 366. See also: Waters, H.W.
History of Fairs and Expositions: Their Classification, Functions, and Values.(London, 1939).
2) Cf. Walter, Rolf, Wirtschaftgeschichte: Vom Merkantilismus bis zur Gegenwart, 3rd ed. Cologne 2000, p. 7.
3) Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 11.
The terms exposition – exhibition – trade show and trade fair (also fair) are similar and used interchangeably
in this paper; as described by Meffert, an unambiguous disassociation is not possible, cf. Meffert, Heribert,
Grundlagen marktorientierter Unternehmensfuherung, Konzepte – Instrumente – Praxisbeispiele, 9th ed.,
Wiesbaden: Gabler, 2000 p. 741.
4) Luckhurst, Kenneth W, The Story of Exhibitions, London 1951, p. 9.
5) Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 11. See also Findling, John E.
and Pelle, Kimberly D. (Eds.). Historical Dictionary of World’s Fairs and Expositions, 1851-1988, New York:
Greenwood Press 1990, XIX.
Footnotes - Chapter I B:
7) Allwood, John, The Great Exhibitions, London 1977.
8) Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 10f.
9) Anderson, Eleanor, The Expo Story, University of Toronto 1986.
11) Cf. Morrow, Sandra L, The Art of the Show, Second Edition, Dallas 2002, p. 13. See also Stevens, Ruth,
Trade Show & Event Marketing: Plan, Promote & Profit.
Footnotes - Chapter II:
12) Cf. Ott, Hugo; Schaefer, Hermann (ed.), Wirtschafts-Ploetz, Die Wirtschaftsgeschichte zum Nachschlagen,
2nd ed., Freiburg: 1985. Concerning the Bristis history see the interesting link: www.stirbitch.com/cantab/
profiles/medieval_fairs.html
13) Especially Rouen, Saint-Denis, Troyes, Reims, Châlons-sur-Marne, Lagny, Provins were of importance. Cf.
Ott, Hugo; Schaefer, Hermann (ed.), Wirtschafts-Ploetz, Die Wirtschaftsgeschichte zum Nachschlagen, 2nd
ed., Freiburg: 1985, p. 93.
14) Cf. Sonntag, René, Trading under the trees: Be prepared to run for cover, www.archive.hoechst.com/
english_3er/publikationen/future/nyse/art4.html
15) Cf. Nordmeyer, Helmut, Frankfurt Trade Fairs, http://www.stadtgeschichte-ffm.de/download/chronik_3_e.

pdf (accessed 01.02.04).
16) Cf. Mathias, Peter; Polland, Sydney (ed.), The Cambridge Economic History of Europe, Volume III, The
industrial economies, Capital, labour, and enterprise, Cambridge 1989, p. 100.
Fußnoten
17) Cf. Rydell, Robert W.; Findling, John E; Pelle, Kimerly D., Fair America, World’s Fairs in the United States,
Washington, London 2000, pp. 14 – 45.
18) Grabbe, Orlin, History of the Euro, www.orlingrabbe.com/euro.htm, 1997
19) Cf. Rydell, Robert W., All the World's a Fair, University of Chicago Press 2002; Burton, L. Benedict, The
Antropology of World's Fairs, Scolar Press 1983
Fußnoten
Footnotes - Chapter III A:
20) Istituto di Economia e Gestione delle Imprese (IEGI, University Buccoini, Milano), 2004
21) Cf. Exhibition World, The Magazine for the Global Exhibition Community, London, September 2004, pp. 25.
See also: Crum, Rachelle 2003 Attendees and Exhibitors Help, Industry see the light, in: Trade Show Week
200 Analysis, Los Angeles 2004
22) Global Meeting Strategies, in: www.businessweek.com/adsections/2003/pdf/0343meetings.pdf
23) An example see: Klimecki, R. G., Nittbaur, G., Regionalwirtschaftliche und strategisch Analse der Messe
Friedrichshfen, Projektbericht, Konstanz, Friedrichshafen 1999
24) Further aspects concerning mega-events see Teigland, J. (1999, December). Mega-events and impacts on
tourism: The predictions and the realities of the Lillehammer Olympics. Impact Assessment and Project
Appraisal, 17(4), 305-317. See also Ritchie, J.R.B., & Smith, B.H. (1991, Summer). The impact of a mega-
event on host region awareness: A longitudinal study. Journal of Travel Research, 30, 3-10.
Footnotes - Chapter III B:
25) Cf. Spryss, Wolf M. Spryss, Messe Institut, Laubenheim 2004
26) Cf. Spryss, Wolf M. Spryss, Messe Institut, Laubenheim 2004
27) Cf. Kerin, Roger A. and William L. Cron. 1987. "Assessing Trade Show Functions and Performance: An
Exploratory Study." Journal of Marketing 51 (July): 87-94.
28) Cf. Küffner, Georg, Mortsiefer, Joachim, Messeplatz Europa. Messen als Bestandteil des betrieblichen
Marketings, Frankfurt 1990, p. 18]
29) Cf. Ueding, Ralf, Management von Messebeteiligungen – Bericht auf der Basis einer empirischen
Untersuchung, in: Meffert, H.; Backhaus, K. (ed.), Messemarketing im Wandel – Status quo und Perspektiven,
Muenster 1997, pp. 34.
Footnotes - Chapter III C:
30) Cf. Anonymous, Trade Fairs and Trade Fair Visitors in Germany, Hamburg 1992, pp. 126 -131.
31) Center for Exhibition Research, in: Montgomery / Strick p. 155.
Footnotes - Chapter III D:
31) Cf. Anderson, E. Transaction Cost Analysis and Marketing, Transaction Cost Economics and beyond,
Boston , 1996
32) Cf. Unger-Firnhaber, Anne E., Pull Strategies for Parts and Components Suppliers in Business to Business
Markets, Dissertation, Sank Gallen 1996
33) Cf. Unger-Firnhaber, Anne E., Pull Strategies for Parts and Components Suppliers in Business to Business
Markets, Dissertation, Sank Gallen 1996
Fußnoten
Footnotes - Chapter IV A:
34) To get further information about UFI use www.ufi.org
Footnotes - Chapter IV B:
35) Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason , Ohio :
South-Western, 2002, p. 379.
36) Cf. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason ,
Ohio : South-Western, 2002, pp. 317-330.
37) f. Czinkota, Michael R.; Ronkainen, Ilkka. A, International Marketing, International Marketing, Mason ,
40) Copyright. With permission of Rappenglitz, Munich
41) Mason , Ohio : South-Western, 2002, pp. 632-638.
43) Cf. Goldblatt, Joe Jeff; Special Events, 2nd edition, John Wiley & Sons, New York et al. 1997, pp. 6-10.
Ohio : South-Western, 2002, pp. 638-639
45) Cf. Goldblatt, Joe Jeff; Special Events, 3rd edition, John Wiley & Sons, New York et al. 2002, pp. 261-275.
46) Cf. Goldblatt, Joe Jeff; Special Events, 3rd edition, John Wiley & Sons, New York et al. 2002, pp. 275-276.
Fußnoten
Footnotes - Chapter V A:
47) Cf. Kijewski, Valerie, Eunsang Yoon and Gary Young. 1993. "How Exhibitors Select Trade Shows."
Industrial Marketing Management 22: 287-298.
For download see English version of Successful Trade Fair Pasrticipation: www.auma.de
Cf. Team Canada, Successful Interntional Trade Show Marketing, www.exportsource.ca
Footnotes - Chapter V B:
48) Cf. Ansoff, Harry Igor, Corporate Strategy, revised edition, Penguin, London , 1987.
49) Cf. Beier, Joerg, The Design Demands of Trade-Fair Architecture versus Commercial Calculation, in:
Schulte, Karin (ed.), Temporay Buildings, Stuttgart 1997, p. 227.
Footnotes - Chapter V C:
50) Cf. Ausstellungs-und Messeausschuss der deutschen Wirtschaft e.V. (AUMA), Erfolgreiche
Messebeteiligung, Berlin 2002.
See also: Gopalakrishna Srinath and Jerome D. Williams. 1992. "Planning and Performance Assessment of
Industrial Trade Shows: An Exploratory Study." International Journal of Research in Marketing 9: p. 207-224.
51) Cf. Meffert, Heribert, Ziel- und Nutzenorientierung als Postulat einer effizienten Messebeteiligung, in:
Manfred Kirchgeorg et al., Handbuch Messemanagement, Wiesbaden 2003, p. 1145-1161.
See also Cavanaugh, Suzette. 1976. "Setting Objectives and Evaluating the Effectiveness of Trade Show
Exhibits." Journal of Marketing 40: 100-103. Sharland, Alex and Peter Balogh. 1996. "The Value of Nonselling
Activities at International Trade Shows." Industrial Marketing Management 25: 59-66.
Footnotes - Chapter V D:
52) Cf. Schulte, Karin (ed.), Temporay Buildings: The Trad Fair Stand as a Conceptual Challenge, Stuttgart
2000.
Footnotes - Chapter V E:
53) Cf. Rosson, Philip, J. and F.H.Rolf Seringhaus. 1995. "Visitor and Exhibitor Interaction at Industrial
Trade Fairs." Journal of Business Research 32: 81-90.
54) Cf. Stevens, Ruth, Trade Show & Event Marketing: Plan, Pomote & Pofit, South-Western Educational
Publishing, 2005.
See also: Christman, Christine, The Complete Handbook of Profitable Trade Show Exhibiting, Prentice Hall
Trade, 1991.
Footnotes - Chapter V F:
55) Cf. Tarlow, P. Event Risk Management and Savety, New York 2002.
Fußnoten
Footnotes - Chapter VI A:
56) Cf. Kerin, Roger A. and William L. Cron. 1987. "Assessing Trade Show Functions and Performance:
An Exploratory Study." Journal of Marketing 51 (July): 87-94.
57) Cf. Meffert, Heribert, Ziele und Nutzen von Messebeteiligungen, in: AUMA Edition Nr. 4, Bergisch Gladbach
1996. See also: Morrow, Sandra, The Art of the Show, (2nd edn.), Dallas 2002.
Footnotes - Chapter VI B:
58) Cf. Meffert, Heribert, Ziele und Nutzen von Messebeteiligungen, in: AUMA Edition Nr. 4, Bergisch Gladbach
1996.
See also: Morrow, Sandra, The Art of the Show, (2nd edn.), Dallas 2002.
Seringhaus, F.H. Rolf and Philip J. Rosson. 1998. "Management and Performance of International Trade Fair
Exhibitors: Government Stands vs Independent Stands." International Marketing Review 15 (No. 5): 394-412.
59) Cf. Lilien, Gary L. 1983. "A Descriptive Model of the Trade Show Budgeting Decision Process." Industrial
Marketing Management 12: 25-29.
Footnotes - Chapter VII:
60) Cf. Robbe, D., Expositions and Trade Shows, Canada: Wiley 2000
INTRODUCTION TO DIGITAL
MARKETING
What is the difference between Web 1.0,
Web 2.0, …5.0?
Evolution of the Web
The history of the web
• Web 1.0: one-way relationship of businesses sharing their
information with users online
• Web 2.0: the two-way relationship between businesses interacting
with their users
• Web 3.0: the three-way relationship between businesses, consumers
and machines
• Web 4.0: the relationship between businesses, users and multiple
devices
Internet of Things
The Internet of Things (IoT) is a name for the aggregate collection of
network-enabled devices, excluding traditional computers like laptops
and servers. Types of network connections can include Wi-Fi
connections, Bluetooth connections, and near-field communication
(NFC). The IoT includes devices such as "smart" appliances, like
refrigerators and thermostats; home security systems; computer
peripherals, like webcams and printers; wearable technology, and smart
speaker devices
(Kenton, 2021)
What are 4P’s or 7P’s of
Marketing?
The 4Ps of Marketing
• Product – Product describes the product a company is selling.
• Place – Place refers to the place where consumers can buy a product.
• Promotion – Promotion describes the promotional techniques available to
businesses to communicate their product features to an audience.
• Price – Price refers to the amount of money businesses can charge for a
product.
The 4 P’s of Marketing (also referred to as the marketing mix) are a common
tool to help marketers to make decisions on how to market their products.
Digital technologies greatly impact the options that marketers have
available. These impacts range from a simpler collection of data to offering
additional channels to reach consumers.
7P
7P
What are digital counterparts of
4P/7P?
The Promotional Mix application to the digital world
Promotional mix Application to the digital world
Advertising Targeted ads on social media, pay-per-
click ads on search engines, display ads
Sales promotion Online loyalty schemes, vouchers, cash-
back offers
Endorsements Influencer marketing, electronic word-of-
mouth, product reviews, podcasts
Competitions Gamification techniques on social media
and other websites
Direct mail E-mail newsletters
Exhibitions Virtual exhibitions, webinars
Public relations Viral marketing, Influencer marketing, PR
via numerous online channels
PROMOTION
 Advertising
 Sales promotion
 Endorsements
 Competitions
 Direct mail
 Exhibitions
 Public relations
PRICE
 Penetration pricing
 Price skimming
 Premium pricing
 Competitive pricing
 Psychological pricing
Owned, earned, paid media
What are the examples?
MEDIA DIVISION – EARNED PAID AND OWNED
MEDIA
Owned media refers to the media that a business controls.
Earned media is a term that originates from public relations activities
and is used to describe getting a brand into a media outlet without
having to pay for advertising.
Paid media is all the media that a business pays for to be seen.
https://www.smartinsights.com/digital-marketing-strategy/digital-strategy-development/10-reasons-for-digital-marketing-strategy/
What are the main benefits of
digital marketing?
KEY BENEFITS OF DIGITAL MARKETING
• Consumer data
• Consumer access
• Consumer involvement
• Speed
• Sustainability
• Savings
Consumer Reviews
Social Media
Products and Brand websites
Search Engines
Main online channels for brand research.

What is the order?
REFLECTIVE QUESTIONS
At the end of this session you should be able to answer the following
questions:
• How has the role of the consumer changed throughout the
development of web 1.0 to web 4.0?
• How have the 4 Ps of the marketing mix been impacted by digital
technology?
• How could the media landscape of a business be divided and what
are the benefits of doing so?
• How would you describe the main benefits of digital marketing
compared to conventional marketing?
KEY LEARNING POINTS
• The history of the web ranging from Web 1.0 to Web 4.0
• The 4 P’s of marketing (also referred to as the marketing mix) in a
digital world
• The media division – earned paid and owned media
• Key benefits of digital marketing
LIST OF REFERENCES
• Kenton, W (2021) The Internet of Things (IoT), Investopedia, 28 May.
Available from https://www.investopedia.com/terms/i/internet-
things.asp [Accessed 10 August 2022]
Social media strategy
Digital Marketing Strategy 3e by Simon Kingsnorth
The evolution of social media
• Social media is defined as any website or application that enables
users to create and share content or to participate in social
networking.
• Close to two-thirds of all internet users use social media.
• The biggest social media base is in Asia and the highest penetration
rate is in the Middle East.
• Social media is well suited to mobile – 95 per cent of Facebook traffic
is mobile.
Social media strategy
• Social media strategy must align with overall business strategy.
• Considerations are channels, tone of voice, languages, time-zones,
participation and response.
• It is vital to start by listening – social media monitoring tools can help
understand what people are saying and how to respond.
• A company’s social personality should be consistent with the brand
personality.
• The channel needs to fit to the business, rather than the business fitting to
the channel.
• Each channel requires different types of posts so do not just replicate
content across channels.
Types of social media
• Social networks – encourage interaction, on and offline (e.g. meetup.com and
dating sites).
• Blogs and micro-blogging – can be used for thought-leadership or to share
content (e.g. Twitter).
• Media sharing – such as YouTube or Flickr.
• Professional networking – e.g. LinkedIn.
• Reviews and rating sites.
• Forums – e.g. Netmums. Provide an opportunity for business to engage directly
with customers, but you need to be wary of blatant advertising. They can be a
good way to gauge what people are saying about products or brands.
• The sharing economy – e.g. AirBnB and Uber.
The social networks: Facebook
• Has 2.8 billion users.
• 60 per cent of users are 18–34.
• Has moved towards paid advertising.
• Facebook owns Instagram so adverts can be run across both channels.
• Pages can be created to promote businesses.
• It is important for B2C, but as most users use Facebook for personal
content sharing, businesses need to be mindful that it is not a business
site.
The social networks: Instagram
• Has 1 billion users.
• Focus on visuals and image sharing.
• ‘Stories’ can be created for live updates.
• One-third of the most viewed stories are form businesses.
• Can be tied to physical brand – e.g. photos from events.
• Links cannot be added to posts.
The social networks: YouTube
• Has 2.1 billion users.
• One of the biggest video platforms in the world.
• Owned by Google.
• Popular for vlogging, reviews and instructional videos.
• Live video is an important feature as it is on Facebook and other
channels.
The social networks: Twitter
• Has 397 million users.
• Real-time micro-blogging channel (280 character limit per post).
• Created current hashtag usage.
• Has failed to monetize in the way that other platforms have.
• Can create large followings through regular posting (i.e. several times
per day).
• Beware of fake profiles and ‘trolling’.
The social networks: Sina Weibo
• A micro-blogging site specific to China (2,000 character limit per post).
• It is very successful, despite sponsorship.
• Offers sponsored posts and highly-targeted advertising.
The social networks: LinkedIn
• Professional networking site owned by Microsoft.
• Has a jobs board and the opportunity to post sponsored content.
• LinkedIn’s Sales Navigator is a powerful tool for targeting individuals
and keeping up to date on lead and company changes.
The social networks: Snapchat
• Heavily youth-orientated.
• Invented ‘stories’ which were then adopted by other platforms.
• Has struggled for growth but has innovative ad opportunities.
The social networks: TikTok
• Not as youth-focused as some would think.
• Focused very heavily on creativity such as dancing, cooking, singing.
• Has grown extremely fast, especially during the pandemic.
Other significant channels
• Pintrest
• Tumblr
• Flickr
• Meetup
• Ask.fm
• Qzone
• Reddit
Content
• Video – live video works well on social media. Consider 360 and
vertical video to be optimized on mobile.
• Imagery – imagery on social media should create an aesthetic and
emotional connection.
• Stories – can be part of a real-time content strategy.
• Social publishing platforms – allow scheduling of posts, monitoring of
performance and collaboration. Examples are Hootsuite, Sprout Social
and TweetDeck (the last one is specific to Twitter).
Influencers
• Influencers are individuals who influence others through having large social
media followings and respected opinions.
• Brands that partner with influencers can create strong relationships and
reputation.
• Brands can search for influencers popular amongst their target audiences,
or who use their products.
• Influencer marketing is considered paid endorsement in the US.
• There are three approaches to influencer marketing: 1) Marketing through
influencers – to reach their target base, 2) Marketing to influencers – to
raise awareness with them rather than their followers, 3) Marketing with
influencers – to turn them into advocates.
Social advertising
• Facebook places ads in news feeds.
• This allows the creation of ‘look-a-like’ groups based on current
customer bases.
• Social media can be used for direct response ads, but also for
awareness raising – content for users to share and advocate.
• It is vital to have a paid social strategy as there is little organic reach.
• Data protection must be a consideration.
The SEO angle
• Significant web traffic is driven by social media.
• Users are more interested in recommendations which is why
influencers are important.
• Social media should link back to a company's website and include
keywords.
Measurement
• Volume and reach – typical metrics include:
o Brand volume (number of mentions)
o Market reach (volume of followers and their followers)
o Twitter and Facebook page followers
o Volume of YouTube video views
• Engagement and quality – typical metrics include:
o Brand conversations (comments and replies)
o Content dissemination
o Twitter retweets/Facebook shares/YouTube subscribers
o Overall sentiment (positive/negative)
Creating a social media dashboard
• Metrics require piecing together.
• Social media monitoring tools such as Bandwatch, Google Analytics
and Facebook Insights can help.
• The data needs to be analyzed in a meaningful way and related back to
the business objectives.
How to design a survey?
Do's and don’ts
9th of May 2024
Ewelina Marek-Andrzejewska, Ph.D.
Poznan University of Life Sciences

Ewelina Marek-Andrzejewska, Ph.D.
ewelina.marek@up.poznan.pl
2018- ongoing - Poznan University of Life Sciences (PULS), Poznań, Poland, Assistant Professor
2016 – PhD in environmental and behavioural economics, University of Lyon II, Lyon, France
Doctoral thesis: ”Essays on Mental Accounting Effects of Personal Carbon Allowances: Implications for
Transportation” supervised by:
• prof. Charles RAUX, National Centre for Scientific Research (CNRS)/University of Lyon Interests:
• prof. Dirk ENGELMANN, Humboldt University of Berlin, member of the editorial board of American Economic Review • behavioural
economics,
2015-2017 – European Commission (EC), External Expert
• neuroeconomics,
2008-2014 - Organisation for Economic Co-operation and Development (OECD), Paris, France, Policy • consumer behaviour,
Analyst • food waste,
2009 - Master of Science in environmental and ressource economics & public policy, University of • animal welfare,
Hohenheim, Stuttgart, Germany • alternative proteins,
• geographical
2006 - Master of Science in economics of agri-food sector, Poznań University of Life Sciences, Poznań,
Poland
indication,
• environmental policy,
• consumer policy.
Agenda
1. Before you get started

2. Sampling
3. Inviting the respondents
4. Defining a goal and welcoming participants
5. Posing insightful questions
6. Technical nuances
7. Final edits
8. References
1. Before you get started
Preliminary thinking
• How you start will depend on:
• your budget?
• the population you want to find out about?
• how accurate do you need your results to be?
5
Early methodological decisions
• Define the population about which you wish to generalise: e.g. adult
population, households, employees, etc
• How much information do you need to collect?
• How exact do you want your estimates to be? Define the margin of error
• How quickly do you need to collect the data?
• Data collection mode
6
Research process
Comparison of quantitative and qualitative research approaches
Qualitative Quantitative
Objective understanding the life world and what lies measuring attitudes, opinions and
behind surface responses behaviours.
Selection of Respondents purposive, exhaustive of meanings (natural statistical sampling frame

groups) (taxonomic groups)
Research Questions evolve with data collection formulated before data collection
Nature of the interview open ended dialogue with probes closed questions
standardised stimuli
Data text numbers
Analysis interpretation statistics
Report thick description percentages etc.
8
Source: https://www.surveymonkey.com/learn/survey-best-practices/survey-vs-questionnaire/
Types of surveys
In Data Collection in Context (1981), Ackroyd and Hughes identify three types of
surveys :
o Factual surveys: used to collect descriptive information, i.e. the government census
o Attitude surveys - i.e. an opinion poll - rather than attempting to gather descriptive
information, an attitude survey will attempt to collect and measure people's
attitudes and opinions, i.e. 4 out of 5 people believe...
o Explanatory surveys - go beyond the collection of data and aims to test theories
and hypotheses and/or to produce new theories.
Survey/ questionnaire
• It allows collecting information or data as reported by individuals.
• This is a type of data collection known as self-report data, which means
that individuals complete the survey (or provide the information)
themselves.
• Researchers usually use questionnaires or surveys so that they can make
generalisations. Therefore, surveys are usually based on carefully selected
samples.
• Questionnaires consist of the same set of questions that are asked in the
same order and in the same way so that the same information can be
gathered.
Main data collection modes
• Face-to-face interviewing
• pencil and paper interviewing (PAPI)
• computer assisted personal interviewing (CAPI)
• Telephone interviewing
• computer assisted telephone interviewing (CATI)
• Self-completion modes
• paper and pencil (often postal)
• web and email
1
2
2. Sampling
Sampling options
Sample size calculator: Survey Monkey
https://www.surveymonkey.com/mp/sample-size-calculator/
Sample size calculator: G Power
https://www.psychologie.hhu.
de/arbeitsgruppen/allgemein
e-psychologie-und-
arbeitspsychologie/gpower
3. Inviting the respondents
Invitation mode
Set a deadline
Reminder
Incentives
Incentives
4. Defining a goal and welcoming participants
Define a clear, attainable goal for your survey
• What does a clear, attainable goal look like? Let’s use an example.
• Say you want to understand why customers are leaving your
business at a high clip. Instead of a goal like: “I want to better
understand customer satisfaction.”
• Your goal should be something like: “I want to understand the key
factors that are leading our customers to leave—whether these
reasons are caused by internal or external forces.”
• Once you’ve come up with your goal, you can use it as a reference
to prioritize the top questions you want to ask.
https://www.surveymonkey.com/mp/tips-increasing-survey-completion-rates/
Don’t let your survey get too long
• In most cases, your respondents are doing you a favor by taking your survey.
What better way to respect their time than by not taking up too much of it?
You’ll be rewarded with a higher completion rate as well as more thoughtful
responses for the questions you end up including.
• Simple questions will encourage respondents to finalise the survey
• Propose straightforward questions

Welcome page
5. Posing insightful questions
Avoid open-ended quesions
Ask only what you need to know
Don’t ask multiple hard-to-answer questions
Avoid your opinion in questions
• Don’t ask leading questions.

• In other words, try not to put your own opinion into the question
prompt. Doing so can influence the responses in a way that doesn’t
reflect respondents’ true experiences.
• For example, instead of asking: “How helpful or unhelpful were our

friendly customer service representatives?”
• Ask: “How helpful or unhelpful were our customer service

representatives?”
Absolutes can absolutely hurt the quality of your
responses
Absolutes use words like “every,” “always,” “all,” in the question prompt. And, essentially, they make
the respondent either agree or disagree with a strongly worded question without allowing for more
nuanced opinions.
For instance, take the question:
“Do you always eat breakfast?”
a. Yes
b. No
Your respondents might eat breakfast most of the time, half of the time, or on occasion, but you
wouldn’t know the difference once the responses come back.
https://www.surveymonkey.com/learn/survey-best-practices/
Keep your answer choices balanced
Using answer choices that lean a certain way can result in respondents providing
inauthentic feedback.
Let’s revisit our prompt: “How helpful or unhelpful were our customer service
representatives?”
Here’s how a set of unbalanced answer choices (that lean towards being too positive)
can look for that question:
a. Very helpful
b. Helpful
c. Neither helpful nor unhelpful
And here’s how they’d look once balanced:
a. Very helpful
b. Helpful
c. Neither helpful nor unhelpful
d. Unhelpful
e. Very unhelpful
https://www.surveymonkey.com/learn/survey-best-practices/
Stay away from asking double-barreled questions
Double-barreled questions are when you ask for feedback on two

separate things within a single question.
Here’s an example:
“How would you rate the quality of our product and support?”
How would the respondent answer this question? Would they address
the quality of the product? The quality of support? Maybe they’d skip the
question or (worse) leave your survey altogether.
You can fix a double-barreled question by either choosing one thing to
ask or by breaking the question up into 2 separate ones.
Keep the more personal questions to the end
• Treat your survey like a conversation.
• Would you start any exchange by asking someone how old they are? Probably not.
Instead, you’d engage in small talk first, and gradually move on to more personal
topics. Similarly, keep your early set of questions light and straightforward, and
then slowly move towards more personal questions (often taking the form
of demographic questions).
Use more general questions on the standard
of living
1. How do you assess the current material conditions of your household? Are they ...
• Very good
• Good
• Neither good nor bad
• Bad
• Very bad
2. Which of the terms listed best characterises the way your household manages money?
• We live very poorly. I (we) do not even have enough for basic needs.
• We live modestly. I (we) have to manage very frugally on a daily basis.
• We live on average. I (we) have enough for every day, but I (we) have to save for more serious
purchases.
• We live well. I (we) can afford a lot without special saving.
• We live very well. I (we) can afford some luxuries.
6. Technical nuances
Scrolling vs. paging design
SCROLLING PAGING
Survey on one page Series of pages with one or more questions
Respondents can scroll up and down Data transmission after each page
A submit buton at the end Better for longer questionnaires
Data is only saved when the survey is sent

Progress bars
Forced vs. soft prompt
Forced vs. soft prompt
Navigation buttons
Navigation buttons
Data quality in web surveys
Web-survey strengths
Web-survey weaknesses
Doing surveys online
7. Final edits
Preview your survey before you send it
• Imagine sending your survey only to realize that you forgot to add a question. Or that you didn’t include
a few essential answer choices for one of the questions you asked.
• In either case, you’ll probably end up being frustrated and get results that fall short of what you need.
• To prevent any mishaps in your survey design, preview your survey. Even better, share it with others so
they can catch any mistakes you might not find on your own.
•
Set – up Survey & DBD data collection tool
2. Pretest
3. Invitation
4. Set field times
5. Prepare texts
1. Homepage
2. End page
3. Invitation-Email, Reminder
6. Soft-Launch
8. References
References
Deikeler, J., Schaurer, I., Kunz, T. (2024) „How to Design Web Surveys with Digital Behavioral Data: Evidence-Based Do’s and Don’ts” webinar on 6th of March 2024 by Lumivero
References
References
References
Thank you for your attention!

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Introduction to Marketing

Michał Gazdecki, PhD

▪ Michał Gazdecki, PhD

▪ ORCID, ResearchGate, Linkedin,

▪ Consultation for Students: Wednesday 17.00 – 18.30 (CEE time)

Direct link - AMA definitions

Human need — A state of felt deprivation.

Demands - Human wants that are backed by buying power.

Customer value —the consumer’s assessment of the product’s overall capacity

Marketing concept —The marketing management philosophy which holds that

Driving factors of modern markets – food

"A trend in consumer behavior is a specific direction of change in the

▪ Appear gradually (not rapidly)

50 000 Rest of the world

Poland Poland Poland

Men Women Men Women Men Women

Year 2000 => 360 million *

90% of global data resources were generated

Macro data analysis Consumer research

Ability to deepen the

Easily accessible Available with difficulties

Plenty of generalization May be fragmented

100 Non-food products

Source: Internal market by the Central Statistical Office 21

Engel's law is an observation in economics stating that, as income

Source: Internal market by the Central Statistical Office 22

Source: Internal market by the Central Statistical Office 23

Food and non-alcoholic

Source: Internal market by the Central Statistical Office 24

bakery and cereal products 16% 16% -24%

meat 27% 26% -1%

2 Number of grocery stores 105,510 67,625 -36%

3 Number of supermarkets 3506 7945 127%

4 Number of hypermarkets 396 567 43%

Source: Internal market by the Central Statistical Office 26

Share in food sales

*Source: POLISH FOOD TRADE MARKET, Roland Berger, 2016 27

Ogółem restauracje bary stołówki punkty gastronomiczne

Source: Internal market by the Central Statistical Office 28

Share of catering expenses in the total

PLN 13.43 / 1 pers. / month PLN 44.01 / 1 pers. / month

*Source: Internal market by the Central Statistical Office 29

following / taking over / Health

Share of distribution channel in South

Have a PC Use e-mail

Total Poland ** 62%

Source: *Kleffmann and Partner, panel survey ®amis; **wirtualnemedia.pl 36

Percentage of all global web pages served to mobile

Countries with the highest number

Internet Users in the World by Regions (December 31,

29% Poles health concerns 54%

84% Poles are proud to be Polish

Source: Katarzyna Gawlik, Detox, a presentation in the "Konsument 2016" seminar 43

Group purchase from

(Exponentially) growing rate of changes

Necessity of education and protection

The uncertainty of different foreign

Self-Reference Criterion (SRC)

1/ No Direct Foreign Marketing