Chapter 4
Exhibitions
Chapter 4: Exhibitions
◼ Definition of exhibition
⚫ Exhibitions mean different things to different people in different parts of the world
including fair, trade show, exposition, trade fair expo and exhibition and are often used
interchangeably
⚫ However, these terms share in common that they are employed for events designed
specifically to display and sell goods to end users in a particular market segment
◼ Purposes and Objectives of Exhibition
⚫ Kenneth W. Luckhurst (the expert in exhibition industry)
“Exhibitions are not just collections of interesting objects brought together at a certain
place and time. They are human activities, human enterprises, and some of them very
great and courageous activities, undertaken for definite reasons and in order to achieve
certain specified results. They are a form of human intercourse, whereby the promoters
and exhibitors on the one hand communicate with the visitors on the other, and their
results can only be told in terms of further human thought and activity”
Chapter 4: Exhibitions
◼ Purposes and Objectives of Exhibition
⚫ Exhibitions are one of the most effective mediums for establishing and maintaining
customer relations
⚫ In an increasingly digital age, exhibitions are often the only events where buyer and
seller physically come together – a potent force for business
⚫ Exhibition can also perform 7 main roles
✓ 1. Buying
✓ 2. Selling
✓ 3. New product introduction
✓ 4. Media coverage
✓ 5. Gaining competitive
✓ 6. Updating industry developments and trends
✓ 7. Networking and problem solving
Chapter 4: Exhibitions
Evolvement and significance of exhibition
◼ Exhibitions in the Past
⚫ The history of exhibitions can be traced back to the ancient times when humanity first
wanted to exchange products and services
⚫ Exhibitions were used by civilizations such as the Egyptians, the Romans, the
Phoenicians, the Greeks and the Chinese as a medium to exchange products
⚫ A leap in human history occurred in Victorian England during the mid 1800’s when the
‘Great Exhibition’ held in 1851 at Crystal Palace with the theme ‘Works of Industry of
all Nations.’
◼ Modern Day Exhibitions
⚫ Exhibitions continue to grow and expand in line with an ever-changing marketplace and
industry it is representing
⚫ However, with fast changing technology combined with a more competitive environment,
both from competing exhibitions and a changing economic environment, holding
exhibition can be much more complex
Chapter 4: Exhibitions
Evolvement and significance of exhibition
◼ Outlook of the exhibition
⚫ Technology and Virtual Trade Shows
✓ A growing number of companies are currently shifting to online exhibitions referred to as
‘virtual exhibitions’ since they provide a cost saving option for hosts
Chapter 4: Exhibitions
Evolvement and significance of exhibition
◼ Outlook of the exhibition
⚫ Technology and Virtual Trade Shows
✓ With today’s technology, the concept of online events are not limited to virtual tradeshow
and consumer fair, but have expanded to host international tradeshows and other types of
virtual electronic events such as business match-makers, procurement fairs or product
launches, benefit fairs, distributor fairs and venture capital fairs
✓ However, with fast changing technology and the 2009-2010 recessions causing every
business to pursue cost-cutting approaches, virtual platform seems to provide a great
opportunity for many businesses to attend exhibitions, as virtual tradeshows typically cost
much less than traditional tradeshows
Chapter 4: Exhibitions
Evolvement and significance of exhibition
◼ Outlook of the exhibition
⚫ Green and Sustainability Concepts Stay Strong
✓ The green and sustainability trend has become very prominent and
✓ diffused into every facet of the MICE industry
✓ Due to the fact that exhibition is a complex industry with multiple key players, all need to
respond and react according to the need of their customers. PEOs need to organize
exhibitions that align with the green and sustainability standards
✓ PEOs need to organize exhibitions that align with green and sustainability standards
because it reflects the concern that a PEO has for the area in which they organize their
exhibitions
✓ To adopt green exhibitions, exhibitors also need to create their booths in alignment with
green concepts such as using material that can be reused or recycled
Chapter 4: Exhibitions
Exhibitions Categorization
◼ The word exhibition is a relatively new term and based on the Latin word exhibitionem.
Allwood, another exhibition industry historian and expert, described the difference between
the word fair and exhibition.
“Whilst fairs were basically market places, exhibitions have
always been primarily concerned with the display of goods.
Fisher’s Accurate New Spelling Dictionary and Expositor of
the English Language published in 1773, given the significant
difference in a few words: Fair is defined as an annual free
market’ whilst an exhibition is only a displaying, a setting
forth ”(Allwood, 1977)
Chapter 4: Exhibitions
Exhibitions Categorization
◼ The differences between an exhibition and a fair in four major ways as listed below:
• 1. An exhibition most of the time is a one-time event with no recurring life cycle. While
fairs run for a short period, many exhibitions run for months, some for a year or even
longer.
• 2. Most exhibitions are held in permanent, designated facilities that have been built
especially to hold exhibitions. This leads to the trend starting in the 18th century that both
public and private sector started to build exhibition and convention centers to meet
demand.
• 3. Fairs are usually held regularly and require less lead-time and planning because they
do not need complex organization. In contrast, exhibitions are particularly detailed events.
• 4. Fairs and exhibitions are different in the way business is conducted on the actual days
both events are held.
Chapter 4: Exhibitions
Exhibitions Categorization
◼ The word exposition came from an old French word derived from the Latin word
'exposition'
◼ Expositions, on the other hand, tend to share similarity characteristics with exhibitions
since expositions tend to be held and organized by either government or the private sectors
with the support from the government
◼ Expositions are commonly organized in designated facilities like exhibitions
◼ Moreover, expositions are organized to attract manufacturers, traders and wholesalers on
local, regional and international scales
◼ In addition, expositions do not intend to create direct transactions but exhibitors only want
to display their products hoping to generate future sales
Chapter 4: Exhibitions
Exhibitions Categorization
Types of exhibition can be classified into four groups:
◼ Trade Shows
⚫ Trade shows sometime can be categorized as a business-to-business (B2B) exhibition
⚫ Exhibitors, most of the time, are manufacturers or distributors of products or services
⚫ The buyer buyers are corporate buyers looking to purchase products and services from
exhibitors in large quantities
⚫ Most of the time, attendance is by invitation only which requires pre-registration that may
incur registration fees prior to the event
Chapter 4: Exhibitions
Exhibitions Categorization
Types of exhibition can be classified into four groups:
◼ Consumer Shows
⚫ The key distinction of consumer shows is that they are open to general public viewing and
can be called business-to-consumer (B2C) exhibitions since sellers sell directly to
consumers
⚫ The exhibitors are typically manufacturers of consumer products while the attendees
will be end users attendance is not restricted and does not require registration to
maximize attendance
Chapter 4: Exhibitions
Exhibitions Categorization
Types of exhibition can be classified into four groups:
◼ Combined or Mixed Shows
⚫ A combined or mixed show is an exhibition that combines both trade and public together
and is open to both corporate and public attendees
⚫ The exhibitors will be like that of trade shows, manufacturers and distributors while
buyers will consist of both corporate end users within the targeted industry segment and
the public
⚫ Most combined or mixed shows will have different specific viewing time for each group of
attendees
Chapter 4: Exhibitions
Exhibitions Categorization
◼ International Exhibitions/Expositions
⚫ International Exhibitions/Expositions, called trade fairs in some regions, act as a
marketing medium for exporting countries intending to export their products and services
to targeted countries
⚫ Exhibitors and attendees at this type of exhibitions tend to be similar to trade shows
⚫ However, buyers are sometimes required to be members of an industry and often
⚫ must be prequalified to attend the exhibition
Chapter 4: Exhibitions
Exhibition Value Chain
Exhibitions tend to have different way of conducting business compared to meetings and
conventions, since they do not have clear- cut steps as to how to plan and operate like that
with conventions.
⚫ The main performers in exhibition value chain can be categorized into three main groups：
✓ [Link] – Visitors and Attendees
• Exhibition is the best place best place for the buyers to view and sample various
mixes of new products and services in an industry that suppliers and manufacturers
have to offer in the same place at the same time
✓ 2. Sellers – Product Suppliers and Exhibitors
• As for buyers, without exhibitors or sellers there would be anything for buyers to see
• From exhibitors’ perspective, an exhibition is a place where they can display and/or
demonstrate new product features and show how their new products and/or services
can save time, money and effort
Chapter 4: Exhibitions
Exhibition Value Chain
✓ 2. Sellers – Product Suppliers and Exhibitors
• Exhibitions are also a great place for exhibitors to gather information about
competitor products
• Exhibitions are the best place for exhibitors to stay in touch with their existing
customers and clients and as a way to develop new relationships
• Exhibitions can provide exhibitors the opportunity to assist customers in solving
problems along with gaining immediate feedback
✓ 3. Organizer (PEO)
• Organizer of exhibitions can either be privately owned or an association
• However, most large international exhibitions are organized by a Professional
Exhibition Organizer (PEO)
• Organizing an exhibition includes many important elements;
➢ 1. Exhibitions generate revenue
➢ 2. A successful PEO is able to identify gaps in the market place before competitors
and able to create, differentiate and “spin-off” an existing exhibition
Chapter 4: Exhibitions
Exhibition Value Chain
◼ Roles and Responsibilities of PEO in Holding Exhibition
⚫ Although, three core stakeholder elements are involved in every exhibition, PEO handle
most of the tasks, although holding and organizing each exhibition will differ based on the
ownership of the exhibition
surveys • Venue
Business • General Service Provides
Opportunity In PEOs • Logistics
Specific Industry • Other Service Provider
Initial Sales Show Evaluation
Planning Production Production The Show
Chapter 4: Exhibitions
Exhibition Value Chain
◼ Roles and Responsibilities of PEO in Holding Exhibition
⚫ Although, three core stakeholder elements are involved in every exhibition, PEO handle
most of the tasks, although holding and organizing each exhibition will differ based on the
ownership of the exhibition
surveys • Venue
Business • General Service Provides
Opportunity In PEOs • Logistics
Specific Industry • Other Service Provider
Initial Sales Show Evaluation
Planning Production Production The Show
⚫ A PEO will be in the center of the value chain interacting and collaborating with
stakeholders from the customer and supplier side
Chapter 4: Exhibitions
Exhibition Value Chain
◼ Roles and Responsibilities of PEO in Holding Exhibition
⚫ For an exhibition to succeed, a PEO will move through each phase
✓ Phase 1: Initial planning
• First of all, the development of a concept coming from answers to questions that need
be addressed about the value of a new exhibition along with the goals of the upcoming
exhibition such as number of visitors and sales space
Business plan
Objectives Strategies Target
market
Concept of
exhibition
Financial part
• Budget
• Forecast Start-up
costs
• R&D funding
Organizational
Structure
• Cost of promoting
and producing
Chapter 4: Exhibitions
Exhibition Value Chain
◼ Roles and Responsibilities of PEO in Holding Exhibition
✓ Phase 2: Sales Production
• Once the initial planning phase is completed, a PEO needs to market the exhibition
successfully in two, inter-related sales activities, exhibit space sales and attendance
promotion
• Often, this sales production starts 12 to 18 months prior to the exhibition depending on
the size and number of exhibitors and attendees needed
✓ Phase 3: Show Production
• This step involves many other stakeholders such as venue personnel, general service
contractors, logistic companies and other service contractor in the process and can be
overwhelming
• The actual physical production of an exhibition often starts more that a year prior to
the opening date
Chapter 4: Exhibitions
Exhibition Value Chain
◼ Roles and Responsibilities of PEO in Holding Exhibition
✓ Phase 3: Show Production
• Throughout this process, a PEO needs to continually revisit the initial plan to ensure
they are still on the right track, make any necessary changes and ensure a forward
movement towards the desired target
✓ Phase 4: Evaluation the Exhibition
• This phase consists of in-depth evaluations, which has been grouped into three parts:
➢ 1. Evaluate the planning and production phase
➢ 2. Result from the exhibitor
➢ 3. Evaluation result from the attendees
Chapter 4: Exhibitions
Exhibition Value Chain
◼ Exhibition Industry Key Stakeholders
⚫ Convention and Visitor Bureau (CVB)
✓ CVB can support and promote the exhibition industry
✓ Provide information related to organizing exhibitions
✓ Facilitate collaboration between government and private sector in organizing the
exhibition
✓ Facilitate and support the bidding process
⚫ Professional Exhibition Organizer (PEO)
✓ Professional Exhibition Organizers (PEOs) usually conceive, organize and operate
exhibitions
Chapter 4: Exhibitions
Exhibition Value Chain
◼ Exhibition Industry Key Stakeholders
⚫ Professional Exhibition Organizer (PEO)
✓ There are 2 broad types of PEO
• Association Ownership
• Entrepreneurial ownership
➢ Independent ownership
➢ Corporate ownership
➢ Multinational Corporate
⚫ Venue
✓ Exhibitions would cease to exist without capable facilities to hold them making venues a
vital stakeholder in the industry
Chapter 4: Exhibitions
Exhibition Value Chain
◼ Exhibition Industry Key Stakeholders
⚫ Venue
✓ Six types of venues are commonly used to host exhibitions:
• 1. Convention and Exhibition Centers
➢ A convention center can be defined as, “a public assembly facility that is designed to
host meeting and exhibits under one roof.”
• 2. Multi-purpose facilities (MPF)
➢ Multi-purpose facilities (MPF) are rather complex with layouts and configurations
that can be altered to provide a variety of spaces based on customer requirements
• [Link]-Use Site
➢ Multi-use sites are venues that have collections of facilities located within the same
complex usually favoring a variety of buildings that can be used as a stand-alone
facility or open and connected among each other
Chapter 4: Exhibitions
Exhibition Value Chain
◼ Exhibition Industry Key Stakeholders
⚫ Venue
✓ Six types of venues are commonly used to host exhibitions:
• 4. Hotel
➢ The benefit of holding exhibitions in hotels is that both exhibitors and visitors do not
need to commute and are able to stay in the same place where the exhibition held
• 5. Downtown facilities
➢ Downtown facilities mean facilities located in the heart of major cities, either a
convention center or a multi-purpose facility
➢ The benefit of holding an exhibition in downtown facilities is that it can provide a
ready-made attendee base located in the area
• 6. Gaming facilities
➢ Gaming facilities consist of gaming tables along with an exhibition spaces
Chapter 4: Exhibitions
Exhibition Value Chain
◼ Exhibition Industry Key Stakeholders
⚫ Service Contractors
✓ Service contractors can be defined as individuals or companies that provide the products
and services used to create the physical environment such as exhibit floor, registration
booths and security systems
✓ Service contractors can be divided into three groups
• 1. General exposition contractors (often called a general service contractor or GSC)
• 2. Specialty contractors: Firms which provide a specific services for trade shows
• 3. Associates: Suppliers to general or specialty contractors
Chapter 4: Exhibitions
Exhibition Value Chain
◼ Exhibition Industry Key Stakeholders
⚫ Major Associations in Exhibition Industry
✓ UFI is one of the most influential associations in the global exhibition industry
✓ Apart from providing the training and education sessions to improve member efficiency
and competitiveness, UFI also provides professional networks and both public & private
connection to help facilitate their members exchange ideas and experiences with other
stakeholders in related businesses
✓ Union of International Fairs (UFI)
• UFI is one of the most influential associations in the global exhibition industry
• Apart from providing the training and education sessions to improve member efficiency
and competitiveness, UFI also provides professional networks and both public &
private connection to help facilitate their members exchange ideas and experiences
with other stakeholders in related businesses