Consumer Show Management… · Exhibitions have been referenced in a variety of casual ways as trade shows, fairs, expositions, trade fairs, consumer shows or public events. While

Consumer Show Management

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Table of Contents ABOUT THE CEM LEARNING PROGRAM ............................................................................................................ 4 LEARNING OBJECTIVES .................................................................................................................................. 5 EXHIBITION INDUSTRY OVERVIEW ................................................................................................................. 6 WHAT ARE CONSUMER EVENTS? ..................................................................................................................... 6

Comparison of Consumer Vs. Trade Events ................................................................................................... 6 Planning and Managing Consumer Events ..................................................................................................... 7 Budget and Finance ..................................................................................................................................... 7

MARKETING ................................................................................................................................................. 11 The Difference between Marketing and Sales .............................................................................................. 11

ELEMENTS OF A MARKETING PLAN ................................................................................................................ 12 Marketing Plan: 1. Executive Summary ....................................................................................................... 12 Marketing Plan: 2. Situation Analysis ........................................................................................................... 12 Marketing Plan: 3. Market Segmentation ..................................................................................................... 14 Marketing Plan: 4. The Marketing Mix ......................................................................................................... 17 Marketing Plan: 5. Resource Utilization Plan ................................................................................................ 18 Marketing Plan: 6. Marketing Evaluation ...................................................................................................... 20

EVENT LOGISTICS ........................................................................................................................................ 21 Site Selection and Inspection ...................................................................................................................... 21 Floor Plan Design ....................................................................................................................................... 22 Traffic Flow ............................................................................................................................................... 22 Floor Plan Measurements and Layouts ........................................................................................................ 22 Booth/Stand Configurations ........................................................................................................................ 23 Booth/Stand Numbering ............................................................................................................................. 24 Feature Areas ............................................................................................................................................ 25 Aisle/Gangway Sizes .................................................................................................................................. 25

ON-SITE OPERATIONS .................................................................................................................................. 26 On-Site Team Members.............................................................................................................................. 26 Shipping and Freight .................................................................................................................................. 27 Utilities – Electrical, Telecommunications and Internet ................................................................................. 28 Food Service and Catering .......................................................................................................................... 29 Exhibition Security ..................................................................................................................................... 29 First Aid/Medical Emergencies .................................................................................................................... 29 AudioVisual (AV) Support ........................................................................................................................... 30 Photographer ............................................................................................................................................ 30 Cleaning Services ....................................................................................................................................... 30

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Box Office/Registration .............................................................................................................................. 31 Determining Ticket Price (Advance/On-Site) ................................................................................................ 31 On-Site Financial Management ................................................................................................................... 31 Managing Cash or Credit Card Sales ............................................................................................................ 32 Methods of Payment and How to Control Cash Flow .................................................................................... 32 Special Considerations for Outdoor Events .................................................................................................. 32

LEGAL CONSIDERATIONS .............................................................................................................................. 33 Elements of a Contract ............................................................................................................................... 33 Contract Concessions/Considerations .......................................................................................................... 33 Special Legal Issues - Music Licensing ......................................................................................................... 34

KEY TERMS .................................................................................................................................................. 35

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ABOUT THE CEM LEARNING PROGRAM

This workbook is intended to serve as the student’s guide for the CEM Learning Program on Consumer Show Management. It is based upon the Curriculum Blueprint approved by the CEM Commission and content from several chapters of The Art of the Show, 5th Edition (AOS). While the AOS is not an obligatory CEM Learning Program textbook, it is an additional resource and optional reference for this and other CEM Learning Program courses.

The CEM Learning Program is not a basic introductory course of study. It is designed for adult learners who have accrued at least three years of full-time work experience in the exhibitions and events industry. Its goal is to provide students with enhanced knowledge, skills and insights derived from their interactions with peers who are also learners, from CEM faculty who serve as subject matter experts, and from the readings and exercises that are assigned.

CEM Learning Program courses are available for in-person and online classes. The content and final exams for each course are the same for both learning options. Classroom-based students are expected to read the CEM workbook prior to their classroom attendance. Students taking a CEM online course will be assigned sections of the workbook to read throughout the length of the course.

Students will be tested on the knowledge they acquire from this course. It is important to understand that the information provided in this workbook may differ from the practices and experiences of each student.

The examination is made up of 40 multiple choice and true/false questions. To pass the examination, a student must achieve a score of at least 30 out of 40. CEM faculty do not have access to the CEM exams, nor are they aware of any questions that may appear on each examination. Exam questions are based only on information contained in this course workbook (Appendix is not included).

Throughout this workbook, the terms “exhibition manager” and “show organizer” are used interchangeably. Their meanings are the same - the individual who is responsible for overseeing the planning, management and execution of an exhibition.

Since general business fundamentals apply to multiple aspects of exhibition management, core concepts relevant to more than one course topic may appear in several learning courses. Students with little or no foundation in marketing and finance are encouraged to take the Event Marketing and/or Finance, Budgeting and Contracts courses early in the course of their CEM Learning Program studies.

Key terms are identified in this workbook by bold face type and accompanied by a definition. Those noted with an asterisk (*) are from the Events Industry Glossary developed by the Events Industry Council (https://insights.eventscouncil.org/Industry-glossary).

Copyright 2019 International Association of Exhibitions and Events®

No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form by any means (electronic, mechanical, photocopying, recording, or otherwise) without the written permission of the publisher. Request for permission should be directed to the Administration Department of the International Association of Exhibitions and Events®, +1 (972) 458-8002 or 12700 Park Central Drive, Suite 308, Dallas, TX 75251 USA. All rights reserved.

https://insights.eventscouncil.org/Industry-glossary

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LEARNING OBJECTIVES

After completing this course, students should be able to:

• Recognize the role of consumer shows within the greater exhibition industry • Describe how consumer shows differ from other shows • Explain the difference between horizontal and vertical exhibitions • Indicate key elements required for planning public events • Indicate key elements required for managing public events • Describe differences between marketing and sales • Describe the elements of a marketing plan

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EXHIBITION INDUSTRY OVERVIEW

From biblical references, to the first documented European trade fair in mid-15th century Germany, exhibitions have been recognized as a significant component of the global economy. These unique face-to-face events of all types serve as accurate barometers of their respective industries and areas of interest. While there are substantial differences among different types of exhibitions, they all share a simple objective to create an environment that facilitates the interaction between buyers and sellers.

Exhibitions have proven to be both resilient and indispensable, despite evolving consumer preferences, changing technology, political unrest, fluctuating economic cycles and other external forces. Despite the unique and powerful role that exhibitions play in the global economy, they now compete for the attention, time and money of participants with other marketing media. Digital communications and a variety of online marketing and advertising outlets attract consumers who prefer not to spend time and money traveling to a face-to-face exhibition. It is often challenging to convince both exhibitors and attendees of the significant value provided by the personal interaction and unique engagement provided by participating in an exhibition.

WHAT ARE CONSUMER EVENTS?

Exhibitions have been referenced in a variety of casual ways as trade shows, fairs, expositions, trade fairs, consumer shows or public events. While each event has its own distinct definition based on its unique characteristics and objectives, the term “exhibition” is accepted as best encompassing these types of events.

The two main types of exhibitions are defined by their objectives and participants:

• Business-to-business (B2B) events are produced primarily for a business audience and are generally not open to the public.

• Business-to-consumer (B2C) events are open to the public and usually, but not always, charge an admission fee. Business-to-consumer events are commonly referred to as public exhibitions or consumer shows.

Each of these can be further categorized as horizontal or vertical. A horizontal exhibition is large in scope and includes many aspects of one industry or interest. A vertical exhibition limits participation to a segment of an industry or interest. An example of a horizontal exhibition would be one serving the healthcare needs of all demographics while a vertical exhibition in the healthcare industry might serve only the needs of senior citizens, a narrow niche of all demographics.

COMPARISON OF CONSUMER VS. TRADE EVENTS

Unlike B2B trade events, consumer shows are open to the public. Attendees are the end users of the products or services that exhibitors display. They may be enthusiasts, hobbyists or supporters of the exhibition’s focus, which might include interests such as sports, gardening, home improvement or arts and crafts, etc. Public events also serve specific market segments such as bridal, travel, automobile and others.

Some consumer shows are purpose-driven rather than profit-driven events and are often sponsored by organizations that view consumer shows as extensions of their public education and/or public relations

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efforts. This is often the case with not-for-profit organizations, such as those supporting medical research, promoting health and wellness, encouraging animal adoption and many other similar causes.

U.S. consumer show producers generally charge an admission fee or sell tickets to their events. While advance registration typically is not required, those who purchase tickets in advance usually enjoy a discount. Group tickets sales are popular for some consumer events and show producers often will target local and regional organizations whose members may have an interest in the focus of the show. Many consumer show producers direct a portion of their proceeds to support local or regional charities.

Seminars and product demonstrations have become a popular and common element of many consumer shows and often feature cooking demonstrations, sports clinics, experts providing instruction and entertainment. Exhibitors at consumer shows frequently feature exhibition specials, such as heavily discounted products or services or promotional activities like raffles, drawings or prize awards including cash or travel.

PLANNING AND MANAGING CONSUMER EVENTS

Once the purpose and objectives of the event are defined, the organizer should then identify the specific stakeholders of the event. Stakeholders are those who have an interest in, or concern about, the event and its purpose. Gathering data and insights from stakeholders is important because it provides the show organizer with valuable insights about the expectations, preferences and likely behaviors of important participants.

Consumer show stakeholders usually include:

1. Key attendees defined by their demographics such as age, gender, marital status, job type, etc. 2. Essential exhibitors such as marquee brands, iconic marketplace leaders, emerging industry

sectors, destinations that serve the hobby/interest of the event and new entrants to the business

3. Sponsors and advertisers 4. Media, especially those that specialize in and report on the focus of the consumer show 5. Public officials, celebrities and others who have interest in the subject of the event

Once the nature of the event is defined and major stakeholders determined, the show producer then decides the optimal dates and location for the event. If displays require an inside facility, outdoor space or a combination of both, the time of year and location may be especially important.

BUDGET AND FINANCE

Before beginning to construct a budget, it is essential to know the organizer’s financial objectives and budget philosophy. Financial goals can be simply defined as either wanting to make money, not lose money or accept losing money at the end of the event. In budgeting terms, these three approaches and intents are defined as:

1. Profit-based – when revenue exceeds expenses 2. Break-even – when revenue and expenses are equal 3. Deficit-based – when expenses exceed revenue

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Once the financial goal is established, the producer will prepare one of the following types of budget:

1. Zero-based budget - Most often used for new events that have no historical data upon which to base assumptions and estimates. All sources of expense and income are identified and assessed. Zero-based budgets are commonly used for event launches.

2. Incremental budget - Most commonly prepared using a prior budget or actual performance data as a basis, to which incremental changes are estimated for the new budget period. It is much quicker to prepare than the zero-based budget, and especially useful for initial preliminary estimates. However, an incremental budget may be less accurate at first, if any changes in external factors have not been taken into account.

3. Hybrid budget - Prepared using aspects of both the zero-based and incremental budgets. More predictable sources of revenue and expense would be managed with incremental budgeting. Zero-based budgeting would be used to identify any unique issues or conditions that might differ from previous events. For example, a variable condition might be a change in the event venue to a city where costs are higher.

4. Performance/function budget - Focuses primarily on the functions and outcomes for each item and is useful in developing the cost of an activity.

How a budget is created also can vary depending upon the objectives the organizer wishes to attain. While most events are produced with the expectation that they will be profitable, there are legitimate reasons to develop a break-even or deficit-based budget. If the event is a launch, it may be logical for the producer to anticipate that the first several editions of the event may be unprofitable. The producer plans to invest two or three years of energy and expense with the expectation that, thereafter, the event regularly will return a profit.

If an exhibition is not conducted for the purpose of deriving a profit, it would be appropriate to create a break-even budget to reflect that goal. The objective of this type of event might be to provide a learning environment, build brand awareness or promote a charitable cause.

Line item budgets are frequently used because they are relatively easy to prepare and provide a way to compare performance from one period to another. A line item budget can be either zero-based, incremental or hybrid.

Each category of activity is included and aligns with a chart of accounts, a document that lists all sources of revenue and expense using distinctive codes for each line. Figure 1 shows an abbreviated example of a budget including these codes. Figure 2 is an example of a more complete typical consumer event budget.

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Coded Line Item Budget (Abbreviated)

Revenue 2017 2018 010 Exhibit space sales 50,000 67,000 020 Sponsorships 125,000 140,000 040 Ticket Sales 80,000 90,000 Total Revenue 255,000 297,000 Expense 201 Service contractors 12,000 13,000 202 Facility charges 50,000 35,000 203 Advertising 50,000 60,000 Total Expense 112,000 108,000 Net 143,000 189,000

Figure 1. Abbreviated Coded Line Item Budget

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Typical Consumer Event Budget

Revenue Exhibitor Booth Income Ticket Sales – On-site Ticket Sales – Online Ticket Sales – Daily Deal Sites (Groupon) Sponsorship Advertising Total Revenue

Expense Advertising and Marketing Box Office Staffing and Fees Public Relations Facility Rental Show Features Decorator (Official Service Contractor) Online Ticket Sales Charges Permits Cleaning Electrical Banner Hanging (Rigging) Security Fire Officials/EMT Parking Attendants Insurance – Liability Insurance – Cancellation Exhibitor Marketing Miscellaneous On-Site Staffing On-Site Meals and Hotels Postage Advertising Agency Fee Surveys Printing and Design Show Program Printing Website Sales & Use Tax Total Expenses Net

Figure 2. Typical Consumer Event Budget

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MARKETING

THE DIFFERENCE BETWEEN MARKETING AND SALES

The terms “marketing” and “sales” are frequently used interchangeably, and incorrectly. While related and interdependent on each other, they have different meanings and distinct purposes. Simply stated, marketing prepares the customer to buy something and sales motivates the customer to complete the purchase.

Marketing identifies potential customers and then designs and promotes the appropriate products and services that fulfill their actual or perceived needs and desires. It is a year-round process that, among other goals, can communicate the value of a product or service to customers using tools such as branding, promotion, experiences and/or customers’ testimonials among others. Marketing usually involves research and analysis and focuses on strategic outcomes. It is constantly evolving to address changing social, cultural and economic circumstances effectively. A marketing plan is the detailed and specialized document that serves as the roadmap for the promotion of an exhibition.

Sales consists of activities designed to promote customer purchase of a product or service. Sales can be conducted in person, over the phone, through email or other communication media. More tactical in focus, sales activities are directly related to specific strategies outlined in the marketing plan.

Note: A comprehensive review of the specific role and activities associated with the sales function can be found in the CEM Exhibition and Event Sales course.

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ELEMENTS OF A MARKETING PLAN

A marketing plan is a detailed and specialized document that serves as the roadmap for the promotion of an exhibition. It considers several important external factors such as:

• Political factors • Economic indicators • Social issues • Cultural issues • Religious calendars and holidays • Technology options • Environmental factors

A typical marketing plan consists of several different sections that may include:

• Executive Summary • Situation Analysis • Market Segmentation • The Marketing Mix, The Four P’s • Resource Utilization Plan • Evaluation and Outcomes Measurement (Return on Investment/ROI)

MARKETING PLAN: 1. EXECUTIVE SUMMARY

The executive summary is a brief overview of the core components of an exhibition such as its vision, mission, goals, objectives and unique value proposition (UVP). A goal states direction and defines the expectations of the exhibition. It is the expression of what will be achieved. Objectives are the elements required to reach a goal; they are quantifiable and can be measured against stated needs, budgets and timelines.

The exhibition organizer will be successful in delivering immediate and long-term value for the exhibition or event if the UVP is defined. Communicating the value of the exhibition to key audiences is a critical tactic.

MARKETING PLAN: 2. SITUATION ANALYSIS

The internal situation analysis focuses on the internal factors that can influence the planning and execution of the event such as the economic circumstances of the audience, policies defined by leadership, results achieved from earlier events and changes that may be taking place to the structure. It is commonly conducted as a SWOT Analysis.

This process examines the strengths, weaknesses, opportunities and threats of an event (or the entity that produces it) as objectively as possible to prompt discussion and thoughtful consideration of strategies and tactics to minimize obstacles and maximize successes. It is commonly expressed as a graphic illustration using four quadrants to define each of the four elements that compose a SWOT analysis.

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SWOT Analysis

A PEST analysis is an example of an external situation analysis which examines the impact of external factors on an exhibition or event. Once identified, the results can be used to examine opportunities and make informed decisions that strategically market the event.

The key elements of the PEST analysis are:

1. Political - When examining political issues, the exhibition organizer should consider the impact of any political or legislative changes that could affect the event. For example, the potential impact from an election year, travel and tourism regulation changes, visa legislation, and environmental policy changes should be communicated to the target audience.

2. Economic - Economic issues have a direct impact on the marketing plan. During times of a recession, the exhibition organizer must be sensitive to a downturn and offer discounts or package registration fees, which will communicate a sense of empathy to the potential audience.

3. Social/Cultural - Considering political issues, awareness, and respect of social and cultural issues are key to avoiding potential embarrassment, despite the best intentions. The exhibition organizer should seek out a peer or colleague with an understanding of the values in specific countries and an understanding of simple rules for addressing promotions to executives versus mid- and entry-level professionals. The effort of learning simple business etiquette, both in written and spoken communication, is generally well received by potential attendees.

4. Technology - Ensuring familiarity with technology and knowing the best tool suited for an audience is paramount. Groups of individuals share commonalities using computers, social networks, text messages, blogs, video, like-interest sites, industry affiliations or chapter networks, and they have a preferred method of communicating with each other. Capturing the audience’s tendencies and preferences makes a dramatic difference in relaying the unique value of the event. Adding a technology component to the mix makes the process cleaner, simpler, and at times, automated.

Objectives are ordinarily set once a situation analysis has been completed, but objectives for an event may be set and modified anytime throughout the marketing process based upon key data that is captured. Examples of common exhibition objectives include but are not limited to:

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• Enhancing brand awareness, especially to those with decision-making authority • Positioning the event in a favorable role compared to competing exhibitions • Increasing the participation of qualified attendees and/or key exhibitors

MARKETING PLAN: 3. MARKET SEGMENTATION

Market segmentation is the process that identifies each target market, defines the consumer’s wants and needs, and determines the best ways to reach each key audience sector.

ATTENDEE TYPES AND DEMOGRAPHICS An exhibition attendee is an individual registered for or participating in an event who commonly uses the products, services or equipment that are displayed at exhibitions. Organizers will classify them into one of three categories:

• Buyers • Purchasing agents • Research and development specialists

A buyer selects which brands and product types to purchase and frequently, but not always, has final decision-making authority. Purchasing agents also may have decision-making authority but often will order and re-purchase only those products that are already being purchased by the enterprise. Research and development specialists, often scientists or engineers, have the technical competence and skills needed to develop products but frequently only recommend purchases to others within the organization. While their functions differ, all these attendee categories are important contacts for the exhibitor.

Knowing where the attendees come from is important for developing the attendee marketing campaign, and this part of defining the target market is known as attendee demographics. Demographics are the quantifiable statistics of a population, such as gender, age and geographic location. For marketing purposes, demographics are generally more detailed to include such factors as job title, decision-making authority and industry sector.

For example, an exhibition drawing a national or international audience will be marketed with a broad global approach, in comparison to the marketing campaign aimed at attendees from a regional or local jurisdiction. Additionally, trade (or industry) exhibitions and consumer exhibitions are marketed very differently from each other. Attendees vary greatly in terms of motivation, expectations and needs. Exhibition organizers must address these differences when developing marketing strategies and tactics. Accordingly, the marketing of business-to-business (B2B) exhibitions is very different from that of business-to-consumer (B2C) events, so the gathering of audience demographics for the two types of exhibitions also differs.

Characteristics of B2C exhibitions include:

• Open to the general public • Attendees are end users of products or services • Contain demographic categories such as hobbies, household income brackets, number of

children in the household, interests, autos purchased, etc. • Typically charge an admission fee or sell tickets • Do not typically collect personal data • Advance registration is not normally required, although discounted and group tickets are

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often pre-sold • Organizers frequently contact local/regional organizations (schools, fraternal groups, clubs)

who may have interest in the subject of the event • Learning programs and demonstrations are often included • Exhibitors commonly offer product specials and discounts (exhibition specials) • Promotional activities (raffles, drawings, games) are included • Well-known celebrities/luminaries are present to drive attendance and media attention

The tactical marketing of public events begins later than that for trade exhibitions, usually six to eight months before the event and intensifies four to six weeks prior to the event, typically using local newspapers, radio and television. For repeat events, aspects of the show that are new often are touted to convince prior visitors to return.

Characteristics of B2B exhibitions include:

• Attendees are commonly members of the industry • Registration ads that are evidence of professional standing are required for admission • Association-sponsored exhibitions usually offer a variety of access options (e.g. full

registration, conference only, expo only, one-day only, combination) • Association-sponsored exhibitions are often held in conjunction with an annual

convention/congress • Programming frequently includes formal and informal learning sessions, social activities and

networking events designed to avoid conflicts with the exhibition schedule wherever possible

EXHIBITORS Exhibitor marketing is a complex process that requires a sound strategic plan, including a timeline for creation of an exhibitor prospectus, advertising, public relations, e-marketing, direct sales and international marketing objectives.

The exhibitor prospectus is a promotional direct mail piece or electronic document sent to current and prospective exhibitors to promote the benefits of exhibiting in a specific exhibition and encourage participation. This critical marketing piece provides potential exhibitors with information to help them determine whether the exhibition fits their company’s sales goals and objectives.

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Exhibitor Prospectus Contents

An exhibitor prospectus can vary from a 20-page, full-color book (as for medical exhibitions), to a glossy foldout brochure (as for many privately-owned trade exhibitions), to a one-page information piece (as for a local consumer exhibition), depending on the norms and standards in each industry.

SPONSORS AND ADVERTISERS Sponsorship packages are developed collaboratively with exhibition organizers to meet the needs of a potential advertiser or sponsor for maximum exposure. Event sponsors provide monetary support or in-kind donations for exhibitions, while event advertisers purchase advertising space from the exhibition organizer. Sponsors and advertisers not only support the event and program financially, but also serve as advocates of the event and can exponentially increase promotion and awareness of the event.

DEFINING KEY MESSAGES Following a complete review of all internal and external factors, exhibition organizers can begin to craft messaging. Defining key messages is critical to the core of the marketing plan. The message is defined with a thorough understanding of the audience and carefully selected inclusive and actionable words that resonate with a targeted segment, tapping into emotional triggers that may drive a decision to attend, such as:

• Passion for their profession • Fear of missing out (FOMO) • Excitement • Fear of competitors • Sense of belonging/community • Career ambition • Desire for recognition

Effective key messages typically rely on the skills and knowledge of experts, so message development is sometimes managed by outside consultants or in-house staff who are specialists in creating content

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and/or designing marketing materials for exhibitions. The marketing message must be consistent in all its forms and distribution channels, including social, digital and traditional media.

MARKETING PLAN: 4. THE MARKETING MIX

In marketing, the four P’s are typically used to effectively develop marketing strategies that are on target and will yield intended results.

In the specific case of exhibitions, the 4 P’s represent the following:

• Product (offer) = The exhibition or event • Price (value exchanged) = Registration fees, booth rental fees, sold/sponsored advertising • Place (delivery mechanism) = Distribution media (traditional, online, etc.) • Promotion (means of communication) = Communicating the message

A marketing mix of the 4 P’s was created during a time when products, rather than services, were the primary focus, and the combination of these options are used to reach a target market for the product or product line. In services marketing, an extended marketing mix is used, typically comprising 7 P’s, made up of the original 4 P’s extended by process, people and physical evidence.

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This extension to the marketing mix considers who the exhibition organizer’s customers (people) are and their needs, wants and preferences (i.e., the attendees and the exhibitors); the unique value proposition (UVP) for participating in an exhibition (physical evidence) and the customer experience they will enjoy at the exhibition; and finally, what will be done to deliver on the promise of the UVP (process). These additional elements can be helpful when developing the marketing plan, as well as conducting a SWOT analysis and competitive analysis for an exhibition.

Exhibition organizers frequently use a broad range of promotional tactics to reach their target audiences in order to increase attendance and exhibitor participation. Among the most common tactics they use are advertising across different media, public relations, publicity, direct mail and digital marketing (e-marketing), and social media.

The advent of new technologies and rapidly changing demographics has rendered many traditional forms of marketing obsolete. They have been replaced with new digital solutions of many kinds that are designed to enhance the face-to-face exhibition experience and can even engage buyers and sellers with each other prior to, during and after the event. Despite early fears that technology might displace the live face-to-face event, interactive media is now broadly viewed as being supportive of the exhibition industry and provides vastly expanded opportunities for engagement of attendees by exhibitors.

The growing adoption of digital media tactics has been viewed as complementary rather than competitive to the exhibitions industry, and digital media provide an opportunity for exhibition organizers to partner with exhibitors to achieve integrated marketing goals. Many exhibition organizers are exploring adding an online or virtual element to their established face-to-face event. Depending on the target market, timing, education and message, online extensions may prove beneficial to reach a wider audience.

MARKETING PLAN: 5. RESOURCE UTILIZATION PLAN

MARKETING TIMELINE Once the goals and objectives for the exhibition are established, goals, objectives, strategies and tactics are developed for marketing. A marketing timeline that matches the list of tactics (deliverables) with the overall project deadlines will ensure that major milestones are met. Key elements of the timeline or production schedule for marketing materials are:

• Staff resources • Deliverables • Identifiable steps • Budget constraints • Time allocated for each step

It is always wise to first create a timeline with the specific end goal in mind. The date the attendance brochure must be distributed to attendees, for example. The steps required in order to meet that goal can then be defined so that adequate time is provided for the design and production of the brochure, and sufficient float time, additional time that might be required due to unanticipated setbacks without delaying the project, also can be built into the timeline.

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Following is an example of a marketing timeline for Expo! Expo! IAEE’s Annual Meeting & Exhibition, which occurs annually in December:

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MARKETING PLAN: 6. MARKETING EVALUATION

Organizers not only need to evaluate the exhibition and/or event during and after, but also use benchmarks to measure outcomes of the marketing efforts. A registration audit following the event provides solid evidence of the progress toward an objective focused on attendees who registered and attended.

Other outcomes to measure might include meeting budgeted revenue as evidenced by paid attendee registration or confirming all sponsorship and advertising opportunities were fulfilled based on sold levels and packages. The event organizer might track attendee motives for attending to determine which means of promotion were most effective. Tracking where attendees gained information about the event – such as the website, direct mail, email, retargeting and social media – will also provide insight on the effects of promotional efforts. In addition, the sales efforts to gain exhibitor commitment could be measured.

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EVENT LOGISTICS

SITE SELECTION AND INSPECTION

Most exhibition venues that support consumer shows have similar attributes (e.g., exhibition/meeting spaces, food, utility and technology services), but also unique characteristics that influence customer interaction. All these attributes represent variables that show organizers must identify and understand when negotiating the best business arrangement for the exhibition.

Site selection is the process of choosing both a destination and a specific facility or facilities for an exhibition. Determining the best location for the event is crucial to its success, as the right venue provides the foundation upon which all other elements can then be created. Visiting the destination and venue(s) in person is critical to understanding what a participant will experience. It also provides the organizer with the best options to meet the needs of both the participants and the organization.

The term site selection is often confused with site inspection or site visit. These are related, yet distinct activities conducted as part of the site selection process. This process typically begins when the organizer sends out a request for proposal (RFP) to several potential venues. Upon receipt of a viable proposal, a site visit may be arranged to provide a more complete understanding of the advantages and disadvantages of the venue. Once a venue is selected, the organizer conducts a site inspection to identify details, characteristics and aspects of the venue that will be incorporated into the event’s actual execution.

The organizer should arrive prepared to provide a clear understanding of the show’s goals and needs to the facility’s convention services manager (CSM), also known as an event manager (EM). This staff member’s job is to answer any questions, point out the strengths of the facility and provide additional details to the show organizer for consideration.

Features offered by a facility and obligatory policies to which the organizer must adhere should be clearly presented and discussed. Items requiring discussion and special attention include:

• All costs, billing procedures, payment procedures, taxes and gratuities (varies from country to country and in the U.S. among states and municipalities).

• Policies regarding any exclusive in-house services • Tipping policies • Door widths and heights if large exhibits will be featured (e.g., boats, trucks, cars) • Freight elevator capacity (weight, size) • Restrooms • Ticketing/registration areas • Electrical, phone, Internet and plumbing services on the exhibit floor • Technology resources (e.g., Wi-fi availability, bandwidth capacity, etc.) • Parking • Shuttle route • Location of alternative forms of transportation • Food services • Green compliance • Insurance requirements

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• Accommodations for participants with disabilities (ADA compliance in U.S.) • Ancillary services (first aid, cash machines) • Safety and security inside and outside facility • Emergency response plan, including warning systems • Unanswered questions about the proposal

Note: Additional information on site selection can be found in the CEM Facilities and Site Selection course. FLOOR PLAN DESIGN

A well-designed floor plan or layout is critical to the success of an exhibition. The floor plan is a schematic drawing of the exhibit hall or event venue that includes the booths (U.S.) or stands (outside U.S.) available for rent to the exhibitors, facility physical features, official areas (such as exhibitor registration), and other feature areas that become the exhibition marketplace. In a rapidly changing business environment, a floor plan must meet the logistical needs of exhibitors and sponsors and the shopping habits of attendees with enough flexibility to adjust for growth or consolidation.

A successful floor plan design considers the needs of all key stakeholders and the unique features of the venue. From initial design to the event production, the floor plan provides a road map for connecting exhibitors, sponsors and attendees in a temporary marketplace. Determining whether a floor plan meets the exhibition organizer’s goals may require surveys, quantity measurement, traffic studies (evaluation of how attendees move throughout the exhibit hall), and other analyses.

TRAFFIC FLOW

Traffic flow refers to the way people move from place to place within a defined area. Traffic flow is influenced by:

• Number, type and size of exhibits • Exhibit layouts • Number of attendees • Exhibit hours and competing events • Attendee shopping habits • Number and width of main and cross aisles • Activity within exhibit spaces that stops or diverts traffic such as demonstrations, location of

food service areas • Placement and number of entrances and exits (access and egress points) • Location of registration, meeting rooms and other key areas • Directional signs, barricades, product locators, booth numbers and aisle signs

FLOOR PLAN MEASUREMENTS AND LAYOUTS

Fundamental to floor plan development is the gross square feet/meters (gsf/gsm) available in the selected exhibit space and the net square feet/meters (nsf/nsm) needed for saleable booths (after aisles and other features and space uses are subtracted from the gross square feet/meters).

International exhibition stands are laid out in meters, and often use hard wall, or shell scheme stand walls that may be permanently installed in exhibition halls or installed following individual client configurations. The hard wall stands of international exhibitions typically have sidewalls the same height

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as back walls (without line-of-site rules) and may be sold to include cubic content. The standard unit is nine square meters (three meters wide by three meters deep).

Most of the hard wall or shell scheme systems used around the world are constructed in metric units, including those used in the U.S. While a raw booth/stand space in the U.S. might be measured in feet, for example, 10ft x 10ft, the booth/stand constructed within the space might be 3m x 3m.

Most exhibition floor plans in the United States are based on a 10ft/3m x 10ft/3m booth/stand grid. A typical floor plan in a convention center would have aisles of 10ft/3m x 10ft/3m booths/stands on either side of a 10ft/3m-wide aisle. One reason for this grid is the placement of utility ports, which are often placed on 30ft/9m centers. This would locate them on the back-wall line rather than in the center of a booth/stand or aisle. Ideally, columns also fit within the grid or exhibition hall footprint.

Booths/stands also can be based on a grid that is 8ft/2m deep and 10ft/3m wide. This configuration is sometimes used in smaller areas such as hotel ballrooms to maximize the space, particularly if utility placement is not an issue and aisles can be approved at 8ft or 9ft. However, the 10ft/3m width is standard to accommodate pre-fabricated structures. Contractor equipment is also fabricated to work within these standard booth/stand grids.

BOOTH/STAND CONFIGURATIONS

Exhibit booths/stands in a U.S.-based exhibition traditionally are laid out as standard (or linear) booths/stands, peninsula, and island (or bulk) spaces, as illustrated below.

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Booths/stands laid out in 10ft/3m x 10ft/3m configurations are considered standard or linear booths/stands. Linear booths/stands have an aisle on one side (the front of the booth/stand, except for corner booths/stands, which have aisles on two sides). Note that 8ft x 10ft booths/stands are sometimes used in smaller spaces or to gain additional booths/stands – 8ft as the depth, maintaining the 10ft width to accommodate existing booth properties.

Selling and configuring a minimum of four spaces together for one exhibit, with aisles on all four sides make island booths/stands. Islands can have one or more levels of display, depending upon the exhibition rules and the building regulations for double-decker, or multi-storied, booths/stands. If island booths/stands are created within a linear layout, the amount of saleable space decreases, as more cross aisles are created. Island booths/stands that are created by selling across existing aisles (conforming to fire regulations for the building) can add to the amount of saleable space. Peninsula booths/stands should be a minimum of 20ft x 20ft (or 16ft x 20ft if booths are 8ft x 10ft), with aisles on three sides.

Occasionally, a consumer show producer will permit a 10ft/3m x 20ft/6m configuration to be sold as a peninsula. This is called an end cap. Generally, it is not advisable to sell booths/stands in this configuration because it can be difficult to enforce the line-of-site rules with this setup.

BOOTH/STAND NUMBERING

Assigning booth/stand numbers creates a system that is logical, intuitive and easy to follow. Attendees should be able to locate a booth/stand with minimal effort and few aids, since booth/stand numbers are not always visible once carpet and booth displays are installed. Convention center exhibitions generally will have aisle signs or booth/stand signs depicting the booth number, while those in a hotel or other facility may depend more on floor-based graphics.

Several numbering methods are used in floor plan designs. The most common is street-style numbering, like buildings on a city street, with even numbers on one side of the aisle and odd numbers on the other.

Sequential numbering is occasionally used for smaller shows in hotel, convention center or private ballrooms, where booths may be placed and numbered consecutively around the perimeter wall. It also may be used in a particularly long convention center aisle to avoid using four-digit booth numbers. For example, the 100 series would fall on the left side of the aisle and the 200 series on the right (see Figure 5 below).

Infrequently, a small floor plan may use serpentine numbering, with numbers winding up one aisle and back down the next, rather than starting a new sequence in the front of each aisle. The following are some general tips about numbering:

• Skip number(s) in the sequence when numbering across a cross aisle or other open area(s) that could be used for exhibits. This allows for reconfiguration of the plan without creating odd numbers, e.g., 103a.

• Use the lowest number in the booth/stand grouping when reconfiguring an island or peninsula, which gives numerical consistency.

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• Conversely, when island and peninsula spaces are included in the original plan, reserve the remaining numbers associated with the individual booths/stands that make up the island. If the island or peninsula exhibitor cancels, the booth/stand can be broken down, renumbered and sold as linear booths/stands.

Sequential Numbering

FEATURE AREAS

Strategic placement of feature areas can draw traffic to traditionally slow traffic areas. The availability of food and beverages can keep attendees from leaving the exhibition for meals or refreshments and can be sponsored or for purchase. Prize drawings and new products can draw interest to an exhibit. However, noise and other activities should not interfere with the business environment of the exhibition.

AISLE/GANGWAY SIZES

Aisle/gangway widths are typically 8ft to 10ft wide in the U.S.; and 2.5m to 3m outside the U.S. and Canada, depending upon the applicable fire codes, the facility, and the exhibition needs. Other factors that impact aisle width include anticipated attendance, special activities, move-in and move-out logistics and aesthetics.

Note: Additional information can be found in the CEM Floor Plan Development course.

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ON-SITE OPERATIONS

The show organizer should be the first to arrive on-site to conduct the event and the last to depart after the show closes. If engaged, the Official Services Contractor (OSC) serves as the overall coordinator of all other service providers. Activities and services coordinated by the OSC are indicated in the list below, which describes the precise order in which set up must occur:

• Show management office set up • Show floor laid out (OSC) • Utilities installed (OSC) • Exhibits installed (OSC) • Freight received and transferred from loading dock to exhibits (OSC) • Exhibitor move-in (OSC/show management) • Registration counters and support facilities installed (OSC) • Cleaning and security arrive - show floor secure and ready for opening (OSC). • Box office cash requirements determined for ticket sales • Show opens

When the show closes, the OSC will supervise the dismantling of exhibits, removal of freight from the floor and loading on to trucks. Security generally will supervise parking lots to ensure safe departure of attendees and exhibitors. This can be especially challenging for consumer events due to the high number of exhibitors who use their own vehicles to transport their exhibits and material.

ON-SITE TEAM MEMBERS

In addition to the organizer’s team, a variety of independent contractors and volunteers provide products and services required to support the success of the show. Chief among them are the Official Services Contractor (OSC) and the Facility Event Manager. The responsibilities of these key service providers and services provided by other common independent contractors are described below:

OFFICIAL SERVICE CONTRACTOR (OSC) Unlike most trade shows, perhaps as many of one-third of consumer shows do not engage a service contractor. In fact, many show producers, especially those who conduct dozens of similar events each year, serve as their own service contractor. Others rely upon a facility or contract labor to set up their events.

When engaged, the OSC is considered the key contractor for an event, since this is the contractor invested with overseeing so many critical functions. It is the role of the OSC to execute the planning that other stakeholders prepare for months before the show. This results in the decorating of the hall, creation of entry ways, the laying of carpet in booths as well as aisles, the installation of registration counters, kiosks of all types, aisle signs, graphics and all the other logistics that are necessary to ensure an efficiently run event.

The official service contractor (OSC) is also an excellent source of information and assistance with the design of the floor plan and provides support through the revision process, resulting in a final, approved plan. Ideally, the OSC has experience with the facility and brings that knowledge to the planning sessions. The facility event coordinator and other support contractors can provide information based on their contact with show producers of other events that have been held recently at this venue in order to gain

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more advice about utilizing the facility advantageously.

The OSC also can provide an initial maximum floor plan (a standard plan for the exhibit space that demonstrates the maximum number of booths available for sale, also referred to as a “maxed out” floor plan). Most show producers start the floor plan design for a new location using a maxed-out plan or adapting the configurations from a recent exhibition’s floor plan to the new space.

Depending on the country in which the exhibition is taking place, the OSC may be required to engage union labor to supplement its own employee work force. Since union regulations and work rules vary from jurisdiction to jurisdiction, the OSC is best positioned to advise show management on what work exhibitors may be permitted to conduct within the location’s permissible labor work rules.

[NOTE: More detailed information on the role and responsibilities of service contractors, including the official service contractor, can be found in the CEM Selecting Service Contractors workbook.]

FACILITY EVENT MANAGER As noted previously in the Site Selection section, the facility event manager (or coordinator) is the on-site representative of the facility serving as the host venue for an exhibition and the show producer’s key contact person. It is not unusual for the show producer and the facility event manager to begin working together to plan the show many months in advance. This person is responsible for managing all the exclusive service functions that are performed by the facility for the event.

EXHIBITOR-APPOINTED CONTRACTOR (EAC) An exhibitor-appointed contractor (EAC) is a company selected by an exhibitor to manage and execute specific non-exclusive services at the exhibition. For example, an EAC may design, construct, ship, install and dismantle the exhibit. When an exhibitor hires an EAC, the EAC must comply with the same rules and regulations as the OSC. For example, the EAC must carry minimum liability insurance coverage and any applicable permits required for the work being performed. Prior to the first day of move-in, show producers typically require exhibitors to provide the names of companies and individuals who will be servicing booths and proof of insurance coverage. This ensures that the show producer and the venue can limit access to authorized parties and that the businesses providing services will not have a negative effect on the exhibition.

EACs are restricted to performing work within the confines of the exhibitor booth only and are not permitted to work in other areas or solicit additional exhibitor business on the exhibition floor. In the event that several exhibitors at the same exhibition appoint the same EAC, the producer may grant the EAC a satellite service area on the exhibition floor in which to locate supplies commonly used to support the exhibitors; however, the EAC may not use this area as a base for soliciting new business.

SHIPPING AND FREIGHT

Freight, which includes transport, drayage, efficient off-loading and moving from truck to loading dock to exhibitor booths/stands, is one of the highest operational priorities of any exhibition. Even though shipping is not a common practice among consumer show exhibitors, the success of those exhibitors that do rely upon shipping depends upon the timely delivery of their collateral and support materials to their booths/stands.

Air and/or ground freight vendors perform this function and the show producer often appoints one or more preferred vendors for this purpose. These vendors are responsible for getting the shipments to and from the exhibition site and usually offer special rates and benefits to exhibitors.

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If contracted, the OSC is responsible for moving the freight to the exhibitors’ booths/stands when the shipment arrives at the loading dock.

The following actions should be taken in conjunction with the OSC and/or drayage contractor:

• Inspect empty crate storage area • Establish/review late exhibitor arrivals policy • Review target delivery dates (generally front to back) • Review traffic patterns in marshaling yard and loading dock • Establish security protocols at freight and other loading doors • Review labor schedules for weekend/holiday delivery hours • Review policy with respect to deliveries by individual exhibitors • Establish no-freight aisles (aisles that are reserved for security, fire and/or safety and

pedestrian traffic during move-in and move-out) • Inspect the marshaling area (location where transport trucks arrive and wait their turn to

load or off-load during move-in and move-out)

Because consumer show exhibitors tend to be small- and medium-sized businesses, freight and drayage requirements are less common than they are for trade shows. Many consumer show organizers will provide a secure and dedicated area for exhibitors to store materials, packing crates, and certain vehicles in a fenced area of the facility’s parking lot. Known as a boneyard, organizers will charge exhibitors a fee for access to this storage facility.

Exhibitors at many consumer shows frequently bring their own stock of tables, electrical cords, wastebaskets and signs. If engaged, the OSC typically may only set up and layout the exhibit space and furnish a sign for each booth.

As a result of the very diverse nature of the way in which consumer show exhibitors conduct their business, there is significant variation in how and to what extent an exhibitor may need to engage with an OSC. Very often, an exhibitor will pay as much or more to an OSC as they do to the show organizer. This should be considered by the show organizer, since exhibit space rental fees are often only a fraction of the total cost to participate in the event.

UTILITIES – ELECTRICAL, TELECOMMUNICATIONS AND INTERNET

The facility’s event manager coordinates the installation and removal of utilities with appropriate vendors such as a registration contractor or audio-visual provider. These are scheduled in proper sequence to ensure efficiency. For example, electrical wires and other cabling are laid before aisle carpet.

Adequate Internet access is now a requirement for almost every exhibition. Internet bandwidth capacities vary greatly in different countries and require advance investigation and planning. The organizer and facility event manager should discuss bandwidth capacities and capabilities of the building as early as the site visit. Since different shows have varying requirements for Internet access, the show organizer and facility event manager must not only create an appropriate plan prior to the event but also test and verify during set-up that those requiring enhanced bandwidth will receive it.

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FOOD SERVICE AND CATERING

Meal functions, receptions, concessions and staff meals are the responsibility of the catering vendor, who frequently is provided by the exhibition facility as an exclusive service contractor.

Once on-site, show management will want to review all food service event orders and adjust them if necessary. Requests from attendees or exhibitors with special dietary restrictions are high priorities and require immediate attention and monitoring.

EXHIBITION SECURITY

Whether the official security provider is an in-house exclusive or an independent contractor hired by show management, the organizer (and OSC, if engaged) must meet with the supervisor of facility security during the site visit. In addition to determining guard stations, staffing, hours of coverage, and show rules and regulations, a “walk through” of the facility with the CSM and security supervisor is essential. Any security concerns identified at that time, should be addressed to the satisfaction of the organizer.

Certain elements of some exhibitions may require enhanced security. High-profile VIP guests or celebrities, activities occurring at odd hours or late in the evening, even parades usually incorporate special security arrangements. Emergency procedures and protocols should be reviewed in advance, along with any special security requirements requested by exhibitors. In these circumstances, the additional security costs would be borne by the exhibitor. This is often the case with exhibitors demonstrating expensive equipment or services that are highly confidential.

In the U.S., intellectual property theft is another area of security concern. Increasingly sophisticated technology has led to the production of counterfeit items that are difficult or impossible to distinguish from the original products. Consumer show organizers must clearly state in their rules and regulations that exhibitors are prohibited from displaying or selling counterfeit products. It is common practice in the U.S. to have counterfeit products removed from the show. In addition, exhibitors who knowingly display counterfeit products are also removed from the show and prevented from participating in subsequent events.

It is important to review entrance policies, including a review of badge types and the entitlements of each with respect to entry. It is essential that only those with proper credentials be granted access to the exhibition.

Security must anticipate crowds and take advance measures to ensure the safety of all attendees, particularly in parking areas and entrances where bottlenecks can often occur. Public events with box office admissions, where large amounts of cash can accumulate on-site, also require special arrangements. See the “On Site Financial Management” below for a discussion of specific protocols.

FIRST AID/MEDICAL EMERGENCIES

Because exhibitions involve large numbers of people it is essential to provide on-site emergency medical staff or other qualified medical professionals. Increased risk of injury from heavy equipment requires this coverage from the onset of move-in to the conclusion of dismantling. The exhibition staff should know the location of the emergency medical staff and the procedures to summon them. Emergency responders should be furnished with detailed schedules and locations of all events.

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AUDIOVISUAL (AV) SUPPORT

Audiovisuals can materially enhance learning and infuse events with enormous drama and excitement. Audiovisual support is a key element of many events including exhibitions. The on-site audio-visual provider installs equipment that has been pre-ordered by the show organizer, exhibitors and sponsors and frequently provides technicians to operate the more complex equipment.

The organizer should review all equipment and service orders that have been placed and modify those that may require changes, such as last-minute modifications of speakers and room assignments. It is always beneficial to convey changes to the audio-visual provider as soon as they occur, since last minute changes often incur increased cost or inability to provide additional equipment.

It is especially important to ensure that equipment is installed and in operation at the proper time to allow pre-show rehearsals. Use of amplified music or presentations on the show floor by exhibitors should be regulated so that the noise does not impede the activities of other exhibitors nearby.

Many exhibition facilities have their own sound and visual systems and provide audio-visual support as an in-house exclusive service. If the show organizer uses a third-party AV provider, a second sound system (“plug-in”) to the house system may be needed. As this may cause some confusion, the organizer should ensure advance agreement regarding the specific aspects of audio-visual support and billing circumstances for which each AV provider will be responsible.

PHOTOGRAPHER

Photography can play a vital role for exhibitions. Show management will want to document the key elements of the event, especially images that capture the unique interactions that often take place between buyers and sellers. Photographs that reveal an exhibitor’s success can be helpful to market additional exhibit space. Providing new exhibitors with photographic evidence of buyers visiting their exhibits can increase first-time exhibitors’ retention rates. Photos often are needed to supplement media releases or news events, and exhibitors frequently need photos of their exhibits and demonstrations. To be most effective, the show photographer should be given credentials providing full access to event venues.

To ensure that all required images are captured, show management should create a “shot list” for the photographer that provides a schedule of required photos. Show management should review the details of the shot list with the photographer before the show begins. The list should be created in sequential order and must contain a description of the required shot, location and time.

CLEANING SERVICES

It is important to determine in advance whether an outside cleaning vendor will be required to maintain the show floor and remove trash. If the facility does not provide general cleaning services, the OSC or facility event manager is usually responsible for securing and supervising a cleaning vendor. In other cases, the show organizer who contracts for these services. Because trash can accumulate quickly on a show floor, it is important to review the schedule of trash pick-up and removal. Restroom monitoring, cleaning and refilling supplies is the responsibility of the facility.

Apart from general cleaning and trash removal, some exhibitors may have unique cleaning requirements for their booth which can be ordered through the exhibit services manual. In addition to recycling procedures, proper handling of any hazardous waste requires continual monitoring.

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BOX OFFICE/REGISTRATION

Unless the attendee has purchased an advance ticket online, the first stop on arrival at the show location will be the box office. The show organizer or identified staff should continually monitor wait times, crowd control, attendees who need assistance, system equipment and all aspects of the admission process. The predetermined reporting of daily attendance, as well as the process of forwarding reports to the show producer, will guide staff. The show organizer must also create a process to properly manage all monies collected at the ticket counter.

Box office or counter staff may be volunteers or paid staff of the organizer. The general rule of staffing is to engage one volunteer/staff person in the box office for every 500 attendees. In turn, there should be one manager overseeing the work of every three people. A supervisor reviews the work of all managers. In all cases, proper financial controls and audits are vital.

DETERMINING TICKET PRICE (ADVANCE/ON-SITE)

Following are steps to assist the show organizer to determine how much to charge for admission. In general, events presenting a higher number of exhibitors can command a higher admission price.

• Review similar consumer show pricing in the same market and at the venue if possible • Know what market forces generally determine the price of admission • Know what competitors charge or what the market will bear • Consider the number of exhibitors participating • Offer a modest ticket discount to facilitate the capture of demographic information and

email addresses show producers will offer

Ticket pricing for new launches should be conservative and based on one-half of the expected paid attendance. Most consumer show TV and radio advertising does not include ticket prices due to time constraints, but print ads, websites and email blasts almost always include ticket price details.

ON-SITE FINANCIAL MANAGEMENT

Small- and medium-sized businesses are the principal exhibitors at consumer shows and attendee admission to many events is based upon ticket sales. Accordingly, it is essential to have processes and procedures to ensure the proper handling of both cash and credit card transactions. It is also essential that all transactions are reasonably protected against theft or mishandling.

Show organizers should encourage exhibitors who sell products from their exhibits to comply with local taxes and any licensing requirements. Tax laws and regulations vary from jurisdiction to jurisdiction and from country to country and show organizers should not assume liability for their exhibitors’ tax obligations. It should be clearly communicated that exhibitors required to comply with local laws and regulations should do so.

In addition, consumer show producers must have a process in place with which to manage and collect funds on site from exhibitors. Unlike organizers of business-to-business exhibitions, who generally complete all booth transactions months in advance, most business-to-consumer exhibitors pay by check or credit card for their exhibit booth. If payment is made by check, it must be provided in sufficient time for the funds to clear prior to the show opening, ensuring that no exhibitor is allowed to move into the show until their space has been paid in full. To process credit card purchases, the organizer must have a merchant account with one or more credit card companies or online payment suppliers.

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MANAGING CASH OR CREDIT CARD SALES

The presence of cash and credit card receipts on-site requires specific security protocols. These include:

• Hiring professional security contractors and/or venue security staff if available • Setting up a secure show office in which the organizer will have a safe in which to protect

cash, credit card receipts and other valuables • Encrypting credit card transactions to prevent identity theft and fraud • Conducting registration audits

Organizers must anticipate how much cash should be kept on hand and how often deposits should be made to either a bank or an on-site safe. Cash is often collected and audited at least two to three times daily by three different people before being transferred to the on-site safe and ultimately deposited in the bank. Based on the size of the show and the cash collected, registration audits can occur hourly or daily. See the section on “Event Security Provider” for additional information.

METHODS OF PAYMENT AND HOW TO CONTROL CASH FLOW

1. Online ticket sales – While Visa or MasterCard represent the vast majority of cards used for purchase, American Express also should be offered as a convenience.

2. On-site ticket sales – Payment by cash, credit/debit card should be accepted. 3. Hard tickets box office – Many shows provide cash-only options at the event for a variety of

reasons. Depending on ticket price, however, show producers may want to consider credit card options at the box office.

Audit controls must be in place for cash sales. Numbered tickets for each type of admission (e.g., adult, senior, student), as well as for any coupons accepted, provide an audit trail.

SPECIAL CONSIDERATIONS FOR OUTDOOR EVENTS

A definitive weather policy should be established and published before the event. Issues such as what type of inclement weather will result in cancellation of the event should be specified. For example, lightning would be an acceptable reason for cancellation, while rain would not. The organizer should receive answers to the following questions in relation to outdoor event planning:

• Do rules of the venue and contracts with any labor unions contain specific weather clauses? • Will permits be needed for outdoor space? • What access limitations must be considered (can you fence, etc.)? • Are there limitations on the number of attendees? • How many stages are allowed (if applicable)? • What requirements exist for utilities such as electricity and water? Who has jurisdiction? • Are there decorating or parking limitations or restrictions? • What are the limitations on sound—are curfews in force in the area? • What restrictions, if any, are imposed on audiovisual recordings? • Are alcohol and/or glass containers permitted; if so, what are the restrictions? • What are the smoking policies (city by city or venue) governing outdoor events? • What security protocol should be followed? • Are there restrictions or special permits required for areas for children, or amusements?

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LEGAL CONSIDERATIONS

ELEMENTS OF A CONTRACT

A contract is an agreement between two or more parties who must be competent and in which there is a promise to do something in return for a valuable benefit (the consideration).

The following elements are required for a contract to be legally binding:

• Offer – The terms of the agreement, also known as the proposal. • Acceptance – The offer is accepted without change. Changes will create the need for a

counter offer, which in turn must be accepted as submitted. • Consideration – The inducement (the cause, motive, price or compelling influence) that

persuades a contracting party to enter into the contract. • Mutuality – Both parties are bound to perform their obligations or neither party is bound to

perform.

When parties residing in different nations negotiate a contract, an early and important consideration will be to determine which nation’s civil laws will serve as the jurisdiction for enforcing the provisions of the contract.

Specific information that should be included in hotel and venue contracts includes:

• Correct legal names of the parties. Many facilities/hotels are owned by one party and managed by another. The contract should identify the management company as the agent for the owner.

• Specific services to be provided by the hotel or venue. • Dates of the event, including set-up and dismantling. • Actions and responsibilities of the hotel/venue regarding rates, service fees, surcharges,

cost increases, commissions and rebates. • Rates or a formula to determine rates. • Third party commission payment and rebate clause. • Deposit fees and refunds should be addressed. • Master account and credit establishment as well as periodic review of the master account. • Late payment penalties, identifying items subject to late payment penalty and what such

penalties might include. • Special concessions that the hotel or venue is willing to grant to the organizer.

CONTRACT CONCESSIONS/CONSIDERATIONS

Many aspects of contracts are negotiated. Among the most important provisions are the concessions or special considerations that the organizer can obtain from the other parties.

The organizer should know the actual cost of the requested concession(s), and the probability of the hotel/venue contracting with another event that might generate higher revenue in the same time. Demonstrating the event’s value is a key negotiation point for the organizer.

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Hotel and venue concession decisions are often based on the following:

• Net revenue provided by the event, its audience and ancillary events and functions that may be created by exhibitors and/or sponsors.

• Dates of the proposed event - peak season, off-season or shoulder season • Time span between contract signing and the event itself • Denial of the requested concession by the hotel/venue or venue possibly causing the

organizer to seek an alternative contract with another party.

Whatever the outcome of the negotiation regarding concessions, it is essential that those agreements be included as part of the final contract. SPECIAL LEGAL ISSUES - MUSIC LICENSING

Performing Rights Organizations (PRO’s) collect royalties for songwriters and performers when their works are performed publicly. The largest and best known in the U.S. are ASCAP and BMI, although there are other PRO’s around the world protecting international artists. A partial list of these can be found at https://blog.songtrust.com/songwriting-tips/pros-whats-the-difference. All event organizers are theoretically liable for the payment of music licensing fees to one or several of these organizations. For licensing purposes, public performances are considered any occasion in which a significant group of people gathers, aside from private events like gatherings of family or friends. ASCAP fines for non-compliance can range from several hundreds to thousands of U.S. dollars, so it is important that both the show organizer and the exhibitors clearly understand their respective liabilities. Show organizers are legally liable to pay copyright fees if they use copyrighted music. However, they are not vicariously liable for the payment of fees incurred by their exhibitors’ use of copyrighted music. Show producers should be assertive in advising the exhibitors of their responsibilities to purchase a music license from the appropriate licensing organizations.

https://blog.songtrust.com/songwriting-tips/pros-whats-the-difference

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KEY TERMS

The following key terms are identified in this workbook by bold face type and accompanied by a definition. Those noted with an asterisk (*) are from the Events Industry Glossary developed by the Events Industry Council (https://insights.eventscouncil.org/Industry-glossary).

Acceptance* - A requirement for entering into a binding contract. If a contract proposal (offer) is made, it is accepted if the offeree signs the offer as submitted. If the offeree makes any changes to the offer before signing, it is a counter offer, not acceptance.

Business-to-Business (B2B) - Exhibitions that are those produced primarily for a business audience and are not generally open to the public.

Business-to-Consumer (B2C) - Exhibitions open to the general public which usually charge an admission fee. Also known as public exhibitions/events.

Boneyard - A secure and dedicated area to store materials, packing crates, RVs and/or trailers in a fenced area of the facility’s parking lot.

Booths/Stands* - Specific exhibit display area assigned by show management to an exhibitor under contractual agreement. The term BOOTH is used in the U.S.; STAND is used internationally.

Consideration* - The inducement to a contract. The cause, motive, price or impelling influence which induces a contracting party to enter a contract.

Contract* - An agreement between two or more parties that creates in each party a duty to do or not do something and a right to performance of the other's duty or a remedy for the breach of the other's duty.

Consideration* - The inducement to a contract. The cause, motive, price or impelling influence which induces a contracting party to enter a contract.

Consumer Show* - Exhibition that is open to the public, usually requiring an entrance fee.

Convention Services Manager (Event Manager)* - Professional at a hotel, convention center or convention bureau who is responsible for event operations management on all levels.

Drayage or Material Handling* - Services performed by the OSC that includes delivery of exhibit materials from the dock to assigned space, removing empty crates, returning crates at the end of the event for re-crating and delivering materials back to the dock for carrier loading. It is a two-way charge, incoming and outgoing.

End Cap* - Linear booth/stand that is exposed to aisles on three sides and is composed of two booths/stands.

Executive Summary - Part of a marketing plan that contains the mission and vision, goals and objectives, and unique market proposition.

Exhibitor Appointed Contractor (EAC)& - Any company other than the designated "official" contractor providing a service to an exhibitor. Can refer to an Install & Dismantle Company (I&D House), photographer, florist or any other type of contractor.

https://insights.eventscouncil.org/Industry-glossary

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Facility Event Manager (or Coordinator) - The on-site representative of the facility serving as the host venue for an exhibition

Feature Area - Space allocated to draw traffic and keep attendees on the exhibition floor longer.

Floor Plan* - 1) Scale drawing indicating the placement of exhibit booths and all other features in an exhibit hall. 2) Scale drawing of the floor area of a hotel’s event space. 3) Scale drawing of a function room with specific set-up requirements (tables, chairs, etc.) drawn to scale.

Four P’s - Used to effectively develop marketing strategies that are on target and will yield intended results; product, price, place and promotion.

Goals - State direction and define the desired outcomes of the exhibition.

Gross Square Foot/Meter* - gsf or gsm 1) Total amount of available function space in exhibit hall or other facility. 2) Total amount of space used for a specific show or event.

Hybrid Budget - Budget format using elements of both zero-based and incremental budgets.

Incremental budget – Budget prepared using a previous period's budget or actual performance as a basis, with incremental changes for the new budget period.

Intellectual Property Theft - Involves robbing companies of their ideas, inventions and creative expressions.

Island Booth* - Booth/stand space with aisles on all four sides.

Line Item Budget - Provide a way to compare performance from one period to another. Can be either zero-based, incremental or hybrid.

Linear Booth - A booth space generally arranged in a straight line with neighboring exhibitors on their immediate right and left, leaving only one side exposed to the aisle.

Marketing - A 365-day/year process that communicates the value of an event using tools such as branding, messaging, promotion and content.

Milestone - Significant achievement that is among the many other tasks that will be included in a project management plan.

Mutuality - Both parties are bound to perform their obligations or neither party is bound to perform.

Net Square Feet/Meter* - (nsf or nsm) Actual amount of salable space used by exhibit booths/stands which excludes aisles, lounges, registration areas, etc.

Objectives - Steps taken to achieve specific goals. May be set and modified anytime throughout the marketing process based upon key data that is captured. Example is increasing the participation of qualified attendees and/or key exhibitors

Offer* - A promise, proposal or other expression of willingness to make and carry out a contract under proposed terms with another party which has the ability to accept it upon receiving it. Space and rent proposal from a facility. It may be in the form of a contract or license agreement.

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Official Services Contractor (OSC) or General Service Contractor (GSC)* – An organization that provides event management and exhibitors with a wide range of services, sometimes including, but not limited to, distributing the exhibitor manual, installation and dismantle, creating and hanging signage and banners, laying carpet, material handling and providing booth/stand furniture.

Peninsula Booth* - An exhibit with aisles on three sides.

Performance Based Budget - A budget that focuses primarily on the functions and outcomes for each item and is useful in developing the cost of an activity.

Performing Rights Organization (PRO) - An entity which collects royalties for songwriters and performers when their works are performed publicly. Failure to obtain a music license from a PRO may result in fines for either the show organizer, exhibitor or both.

PEST - An acronym for political, economic, social and technological - external factors that commonly affect business activities and performance.

Request for Proposal (RFP)* - A document that stipulates what services the organization wants from an outside contractor and requests a bid to perform such services.

Sales - Activities designed to promote customer purchase of a product or service.

Satellite Service Area - A space containing a counter(s) for the on-site use of exhibitor-appointed contractors and specialty contractors, apart from the Official Service Contractor, for the convenience of exhibitors who are using the services of such contractors.

Sequential Numbering - Booths/stands are numbered sequentially down each side (100 series down the left side, 200 series down the right side).

Serpentine Numbering - Booth/stand numbers wind up one side of the aisle and wind down the other.

Site Inspection* - In-person on-site review and evaluation of a venue or location for an event.

Site Selection* - Choosing a venue for an event.

Site Visit - Part of the first step in determining where an event might take place in order to secure a more complete understanding of what the inherent advantages and disadvantages are offered by the venue.

Situation Analysis – (Internal) Focuses on the internal factors that can influence the planning and execution of the event, such as the economic circumstances of the audience, policies defined by leadership, results achieved from earlier events and changes that may be taking place to structure.

Situation Analysis – (External) Considers those outside factors that can impact the development and production of an event among which are the PEST issues (i.e., political, economic, social/cultural and technology matters).

Stakeholders – Stakeholders are those who have an interest in, or concern about, the event and its purpose.

Street Style – Booth/stand numbering method patterned after a city street, with even numbers on one

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side, odd numbers on the other.

SWOT Analysis - Stands for strengths, weaknesses, opportunities and threats. Helps to guide the exhibition organizer when taking a fresh look at the total exhibition layout and to determine if the plan is practical; will identify any need for improvements or changes.

Traffic Flow - 1) Movement of people through an area. 2) A supposed or directed path that attendees will take through an exhibition.

Zero-Based Budget* - The process of building a budget without benefit of a previous year’s budget.

Documents

Consumer Show Management… · Exhibitions have been referenced in a variety of casual ways as trade shows, fairs, expositions, trade fairs, consumer shows or public events. While