The role of trade fairs
Trade fairs fulfil far more than a mere sales’ or promotional purpose. They link business objectives of individual companies with economic impact on regions and countries, as well as with social functions such as knowledge-transfer and international understanding. The functions of trade fairs can therefore be divided into three areas:operational, economic and social functions.
Operational functions
For businesses, trade fairs are among the most versatile marketing tools. Prospecting,, customer relationship management, product presentation, market research and positioning the company against the competition is taking place simultaneously. Furthermore, trade fairs provide an opportunity to find business partners and qualified specialists. Start-ups, in particular, use trade fairs to familiarise with competitors, markets and customer needs.
Customer relationship management and prospecting
- Trade fairs create ideal conditions for personal contact with existing and potential customers. Companies may strengthen relationships, tap into new markets and make contact with numerous first-time visitors. International visitors especially offer opportunities for prospecting.
Presentation of new products and services
- Trade fairs showcase innovations. They are a platform for new products, prototypes and developments. At the same time, trade fairs serve as in-situ tests where immediate feedback may be gathered from customers and market participants. Small and medium-sized enterprises in particular benefit from the high level of attention paid to innovations.
A platform for start-ups
- At trade fairs, start-ups gain access to potential customers, distribution partners and service providers. The fair offers an opportunity to present their business to the public and to establish initial business relationships.
Enhanced brand image and media exposure
- Trade fairs are high-profile events. Companies may strengthen their brand, demonstrate their expertise and may benefit from increased coverage in trade and consumer media. This leads to a lasting improvement in the perception of the company and its products.
Benchmarking
- As competitors may be directly compared with one another in a compact situation, trade fairs offer ideal conditions for benchmarking. Companies can observe market trends, compare their own performance with that of their competitors and draw strategic conclusions thereof.
Staff motivation and recruitment
- Taking part in a trade fair will strengthen the employees’ sense of identification with the company and boost motivation. At the same time, trade fairs offer an opportunity to meet potential skilled staff while getting a first impression.
Face-to-face communication
- A dialogue allows personalised advice and consolidation of long-term business relationships. Talking in person to each other is also a matter of trust-building. Digital media may support this form of interaction but will not replace it. The benefit of trade fairs is face-to-face communication.
Emotional Appeal
- At trade fairs products and services may be experienced with all senses. Visitors see machines in operation, test products or experience applications first-hand. This creates an emotional connection that is difficult to achieve through other communication channels.
Economic functions
Trade fairs generate significant economic benefits that extend far beyond the participating companies. They drive regional added value, they strengthen markets and, in particular, support the export sector.
Economic development
- Hotels, the hospitality sector, transport companies and numerous service providers – such as stand construction, logistics and interpreting services – all benefit from trade fairs. The additional spending by exhibitors and visitors creates jobs and generates substantial tax revenue.
Market development and maintenance
- Trade fairs regularly bring supply and demand together in one place. They promote dialogue between manufacturers, retailers and customers, thereby contributing to the development and stabilisation of markets.
Creating Market Transparency
- No other platform offers such a comprehensive overview of what an industry has to offer. Visitors may compare products and suppliers directly and are able to make substantiated purchase or investment decisions. In this way, trade fairs enhance the transparency and functionality of markets.
A platform for the German export industry
- International trade fairs make it easier, particularly for small and medium-sized enterprises, to access foreign markets. They help to attract international customers and to expand export activities. In doing so, they are an important contribution to the competitiveness and international networking of the German economy.
Social functions
As well as having an economic impact, trade fairs fulfil important social functions. They promote the exchange of knowledge, dialogue between business and politics, and international understanding.
Knowledge transfer
- Trade fairs are platforms for the exchange of specialist knowledge, innovations and best practice. Conferences, forums and specialist events complement the trade fair programme and make the latest developments accessible to a broad specialist audience.
Links between business and politics
- Trade fairs provide a neutral setting for dialogue between companies, trade associations and political decisionmakers. Current economic and sector-specific policy issues may be discussed directly on-site.
International understanding
- International trade fairs connect people from different countries and cultures. Thus, they promote cooperation, mutual understanding and the cross-border exchange of ideas. In doing so, they contribute not only to international trade but also to international understanding.
Conclusion
Trade fairs are at the same time marketing tool, economic factor and social platform. They forge business contacts, promote innovation and exports, strengthen regions and facilitate knowledge transfer and international networking. In doing so, they fulfil functions that go far beyond the mere presentation of products.
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