by Robert F. James

By degree, every exposition's exhibitor base is international, given the nature of corporate ownership today. It's a fact of economic life that the controlling ownership of thousands of "American" companies now lies in the hands of people of other lands. But show organizers who want to put more import products on U.S. exhibit floors realize it takes more than a global village to generate this new business. It takes a marketing plan. "A full-bore international marketing effort," according to Jerry Lewis, Vice President of Arlington, VA-based PGI Exhibitions, "doesn't mean just going one-on-one to sell space to a few bell cows," those leading companies that anchor the exhibit floor and help bring in competing and closely related organizations.

A serious marketing effort, Lewis contends, requires extensive up-front research and targeting, focused sales promotion, direct selling through local agents, and careful pre- and post-show customer cultivation and service. A multifaceted marketing program can spell the difference between shallow and significant sales overseas. If a show organizer doesn't have a comprehensive program, "you're probably just nibbling around the edges," he says.

International markets

Where should you begin, if you want to increase sales to overseas exhibitors? A good place is to zero in on your most promising international markets.

It's a truism that, for show organizers new to international marketing, the entire world is a potential market. After all, international trade is lucrative business -- the United States imported more than $892 billion in goods and services in 1995, according to the U.S. Bureau of the Census. But experienced show organizers know the world is a very large place, and -- given limited time and resources -- a concentration strategy is the most fruitful approach to making sales to overseas exhibitors.

Global markets are constantly changing. Governments rise and fall from power, and trade policies swing back and forth from economic protectionism to open-market free trade. While, on a worldwide basis, the long-term trend is toward open trading policies and reduced restrictions, some regions and governments are more predictable than others -- thus offering greater sales opportunities.

For the United States, the top 10 export markets for manufactured goods during the past 10 years have been Canada, Japan, Mexico, the United Kingdom, Germany, France, South Korea, the Netherlands, Taiwan and Singapore. Because they hold great promise for increased exports to the United States in the next 10 years, prospects are excellent, too, for Russia, Hong Kong, Thailand, Malaysia, the Philippines, Indonesia and Australia.

Targeting regions

To target the specific foreign markets most suited to your show floor -- those with the most significant exports of products in your show -- you'll need to gather trade data.

Up-to-date statistics are available from data collected by the United Nations and the U.S. Bureau of the Census. They can be provided in dollar value, unit value, quantity, growth rate, market share and a variety of other forms for periods of one month, one quarter or one year.

You can get access to these trade statistics through the United States & Foreign Commercial Service (US&FCS), a division of the U.S. Department of Commerce (USDOC), (202) 482-2000. The USDOC maintains 68 district and branch offices throughout the United States, staffed to give business people assistance and counseling in international trade.

These USDOC publications are key sources of useful trade statistics:

• Highlights of U.S. Export and Import Trade
• Summary of Export and Import Merchandise Trade
• Exports, Commodity Groupings by World Area
• Exports, Schedules E, Commodity by Country
• Exports, Schedule B, Commodity by Country

Another useful source of trade statistics is the USDOC's National Trade Data Bank (NTDB). This database includes the quantity and value of all exports by country of origin. Updated monthly, the NTDB is available on CD-ROM by subscription, (800) STAT-USA, and is accessible to subscribers through the Internet at the STAT/USA Web site (http://www.stat-usa.gov).

"The National Trade Data Bank is an exceptional tool, if you don't have a lot of international research already available to you," says Margaret T. Cassilly, Director of International Conventions and Programs for the Alexandria, VA-based Personal Communications Industry Association (PCIA). "It gives you the capability to locate your best prospects and the countries you really need to target.

"I'd also recommend identifying the USDOC desk officer responsible for your industry and setting up a personal interview. The desk officers can give you a wealth of good information and advice on how to achieve your international marketing goals," she says.

The trade statistics you collect will help you select the regional markets that have a high volume of export products suitable for your show; high rates of economic growth; favorable trading conditions; and other key factors governing international trade.

Building prospect lists

Once you've narrowed your focus to the top international markets for your show, you're ready to begin promoting your event to prospective exhibiting companies. Where can you find prospect names?

You can search the International Yellow Pages, the Business-to-Business Yellow Pages and the World Wide Web. But a more productive route may be to contact trade associations in the target markets, overseas trade magazine publishers, U.S. and foreign government offices that promote trade in the region, and mailing list compilers and brokers.

Trade associations in foreign countries can make exceptional partners in the promotion of your event, provided they're not too closely allied with directly competing shows. Generally, they're able to supply you with membership and industry directories that you can enter in your own database. "Sister and allied trade associations are a great resource for names," says PCIA's Cassilly. "Find them and work through them. They'll often help you in exchange for a free booth in your show, welcoming the exposure in North America."

Trade magazine publishers can assist you by renting you the portions of their subscriber lists that match your show's product-line profile. However, bear in mind that it is usually the publisher's advertisers, not subscribers, who are your targets for exhibit sales. The advertisers, after all, are the manufacturers and suppliers of goods and services, while the subscribers are typically the end users.

Trade promotion offices in New York, San Francisco, Chicago, Washington, DC, and other U.S. trade centers are maintained by some foreign governments. Their sole purpose is to facilitate trade, and they're willing and able to provide lists of manufacturers and service providers for your use. If you find there is no U.S. office, contact the commercial section of the target country's embassy or consulate in Washington, DC. The U.S. government also sponsors more than 100 trade promotion offices overseas, under the management of the US&FCS. The staff of these offices can be helpful sources as well.

List compilers and brokers will rent you names of prospective overseas exhibitors for direct marketing purposes. Dun's Marketing Services, (201) 605-6000, is one of the leading U.S.-based compilers offering direct mail lists on a global basis. Prospecting for international exhibitors with mailing lists is not without pitfalls, however. These are a few areas of concern:

• The availability and quality of lists vary a great deal, and screening procedures are necessary to assess their effectiveness. Fortunately, software for cleaning and enhancing foreign mailing lists improves every day. A computer service bureau specializing in direct mail can help you in this area.
• Matters such as language, culture and business practices vary between countries and even within countries. These factors affect interest in and receptivity to direct mail offers, so it's important to consult with a "landsman" -- a local expert -- when developing a prospecting program.
• Local laws and regulations affect the direct mail offers that can be made and the use of mailing lists. (Some countries are so protective of lists that they cannot be used for direct marketing at all). Again, the advice of a landsman is imperative to avoid inadvertently doing something illegal or unethical.

If Europe is one of your targets, you'll be pleased to learn that the Postal Direct Marketing Service (PDMS), a 10-nation advisory group, has recently published The Guide to Cross-Border Direct Marketing, providing detailed information and tips on developing successful business-to-business direct mail campaigns targeting European markets. (For more information, write to: PDMS, P.O. Box 132, DK-2800, Lyngby, Denmark.)

Generating leads

A cost-effective way to generate leads is by mailing "inquiry generators" to prospective exhibitors on your lists. An inquiry generator simply asks the recipient to request more information if your offer is of interest. Because the response you are soliciting is noncommittal, response rates are usually high -- 5 percent to 10 percent.

Inquiry generators may take a variety of forms, from a business letter to a promotional brochure or flyer. Whatever the format, two key selling messages should dominate the inquiry generator: the U.S. market potential for sales of specific products and your show's position as the best entry point into the U.S. market.

To be effective overseas, your promotions must put your show in a global perspective. The U.S. market holds immense promise for the products manufactured by the recipient's company -- a claim you have to back with convincing research data on U.S. consumption of those products. Make it clear to prospects that they have an untapped opportunity in the United States.

Then, convince them that your show represents an easy way to enter the U.S. market in an aggressive way. Today, most companies make tepid international commitments simply because they receive an overwhelming number of unsolicited foreign inquiries. You need to make your event stand out: Their participation will catapult them into the U.S. market and establish a bold presence.

"Many manufacturers know the United States is a market they want to reach, but they may not be familiar with your show," says Carol Fojtik, CEM, Senior Vice President of Hall-Erickson Inc., Clarendon Hills, IL. "It's not a hard sell you have to make on behalf of trade shows as a marketing medium -- they know shows are one of the most effective media. It's really a matter of making them familiar with the fact that you've got a truly international show."

If using direct mail to capture leads seems formidable, hiring an agent in the target region or countries may be your best alternative. "Language differences are such a big barrier that you practically have to use agents," says PGI's Lewis. "Trying to sell exclusively from the United States is just not effective."

Another option, Lewis notes, is not to go direct, but instead to start marketing exhibit space to overseas manufacturers' sales agents and reps in the United States. "U.S. agents want to multiply their reach and will become your natural ally in convincing the manufacturer to take space in your show," Lewis says.

Opening and closing

Once you've received an inquiry from a prospective foreign exhibitor, the direct selling process begins. At the stage of initial contact, establish a personal rapport before talking business and take a sales approach that is right for that prospect.

"You have to adapt your usual selling techniques to be successful," says Mara Yachnin, Deputy Director for the USDOC's USA National Pavilion at the Paris Air Show. "Not only do you have to know the company's product lines, you also have to know how they do business in their country."

A handy new country-by-country reference that will bring you up to speed on cultural differences is Dun & Bradstreet's Guide to Doing Business around the World, available at local bookstores. Yachnin notes, for example: "Age is not revered here, but it's highly revered overseas. And so is rank. You have to find out on the first call whether equals are talking to equals."

According to many show organizers, the best way to persuade overseas companies to exhibit is to demonstrate that the show is much greater than the sum of its attendees. "I always let them know how our shows offer a unique sell-through opportunity," says Hall-Erickson's Fojtik. "Our shows offer foreign exhibitors the chance to develop relationships with American distributors and manufacturers. I want them to see, too, that attendees aren't the only market accessible at our shows. The other exhibitors can also be potential customers or partners."

"Some overseas organizations look at our shows as a way just to capture a share of the buyers' attention," says PGI's Lewis. "We prefer to point out to them that our shows are also a good way to do face-to-face product research and concept testing. They may want to be there for the sake of the buyers, but we're quick to point out that our shows are an avenue for finding agents and joint venture partners as well."

As with tough-minded domestic prospects, extra incentives are often needed to close the sale of exhibit space to international companies.

"We let overseas exhibitors know that we'll provide them information explaining special services available to them at the show," says Fojtik. "Informing them about an international business center and lounge, an international reception and an international headquarters hotel is critical. Logistically speaking, we'll also point out the key differences between exhibiting in a U.S. show and an overseas show, in order to raise their comfort level."

"Our goal is to make it as simple and easy as possible for the international company to exhibit," says Lewis. "But we also want to create a concrete path for them to follow up leads after the show, so they don't find themselves back home just corresponding by fax with the people they met here.

"You can tell them your show is ideal for them, but not do anything to make it so. We'll go a step further. We'll set up meetings and sales calls in conjunction with the show to help make their trip to the United States worthwhile all-around. We'll also provide them a list of referrals -- trade associations, interpreters, distributors and reps -- so they feel they get the resources they need. We prove to them we're really interested, that this isn't a half-hearted attempt to get more revenue," Lewis says.

When it comes to closing sales, "personal attention is the key," says PCIA's Cassilly. "More than anything else, customer responsiveness impresses upon the international exhibitor that you're not insensitive to their culture. It helps bridge the geographical gap."

LEADING EXPORTERS AND THEIR PRODUCTS

The U.S. Bureau of the Census reports that these top exporters hold the greatest promise for future business:

CountryProducts ExportedCanadaNewsprint, wood pulp, timber, crude petroleum, machinery, natural gas, aluminum, motor vehicles and parts, telecommunications equipmentJapanMachinery, motor vehicles, consumer electronicsMexicoMetal working machinery, steel mill products, agricultural machinery, electrical equipment, automotive parts, aircraft, aircraft partsUnited KingdomManufactured goods, machinery, fuels, chemicals, semifinished goods, transport equipmentGermanyMachines, machine tools, chemicals, motor vehicles, iron and steel products, agricultural products, raw materials, fuelsFranceMachinery and transportation equipment, chemicals, foodstuffs, agricultural products, iron and steel products, textiles, clothingSouth KoreaTextiles, clothing, electronics and electrical equipment, footwear, machinery, steel, automobiles, ships, fishThe NetherlandsAgricultural products, processed foods and tobacco, natural gas, chemicals, metal products, textiles, clothingTaiwanElectrical machinery, textiles, general machinery and equipment, footwear, foodstuffs, plywood and wood productsSingaporeComputer equipment, rubber and rubber products, petroleum products, telecommunications equipmentRussiaPetroleum and petroleum products, natural gas, wood and wood products, metals, chemicals, miscellaneous civilian and military productsHong KongClothing, textiles, yarn and fabric, footwear, electrical appliances, watches and clocks, toysThailandMachinery and manufactured goods, agricultural products, fishery productsMalaysiaElectronics, palm oil, petroleum and petroleum products, wood and wood products, rubber, textilesThe PhilippinesElectronics, textiles, coconut oil, copperIndonesiaPetroleum and liquefied natural gas, timber, textiles, rubber, coffeeAustraliaTextiles, garments, telecommunications, recording equipment, petroleum, minerals

INTERPRETING INTERNATIONAL TRADE DATA

International trade statistics are reported by import- and export-product classification numbers. But these product numbers are different from the U.S. government-issued Standard Industrial Classification (SIC) numbers you are familiar with. The numbering systems for international trade include:

• Harmonized Tariff Schedule of the United States (HTS). Developed by an international council of 150 countries, the HTS is an 11-digit number that is used to classify exports and imports in order to establish duties, as well as collect trade statistics.
• Schedule B. Used for classifying exports, Schedule B is a 10-digit number exporters are required to enter on their Shippers Export Declaration forms. As with the HTS, trade statistics are gathered based on the Schedule B number.
• Standard International Trade Classification (SITC). Developed by the United Nations, the SITC is a 5-digit number used to classify exports and imports by commodity, country and Customs District.

To understand these numbering systems, consult U.S. Foreign Trade Statistics: Classification and Cross Classification, published by the U.S. Government Printing Office (GPO). Simply scan the listing until you find the product's SIC number. Alongside the SIC number you'll find the Schedule B and related numbers. (Call GPO Access, (202) 512-1530, for more information.)

SHOULD YOU TRANSLATE?

The annals of marketing are replete with horror stories of botched translations: cigarettes, as advertised in Spain, with "low asphalt"; and bottled ink, as advertised in Mexico, that "prevents pregnancy."

Do you need to translate your promotional materials to sell booth space to overseas companies? The answer is yes and no.

"Translations show professional courtesy -- that you're interested in your prospects' attention and you wish them to understand the materials you've sent," says Margaret Cassilly, Director of International Conventions and Programs for the Alexandria, VA-based Personal Communications Industry Association.

"Translations say, 'We respect our customers,'" says Mara Yachnin, Deputy Director for the USDOC's USA National Pavilion at the Paris Air Show.

Practiced show organizers agree that basic marketing materials targeted to international audiences -- marketing letters, brochures, fact sheets, prospectuses and even business cards -- should be translated.

The languages used should be those that the majority of business people are likely to recognize, if not speak fluently. (Recipients can usually find a colleague in the office to translate something for them, if it's presented in a commonly used language.) The languages most often employed, besides English, are Chinese, French, German, Spanish and Japanese.

Translations have to be handled with care, if embarrassing errors like "low-asphalt" cigarettes are to be avoided. This means they need to be completed and proofread by a professional translation agency.

While worth their weight in gold from a marketing viewpoint, translations strike many show organizers as expensive and expendable line items. "If you're a mega-show, you have to translate" says Cassilly. "But if you're managing a smaller show, you may not be able to budget for it. However, don't fail to prospect, just because you can't afford translations."

DIRECTORY OF RESOURCES

• Dun & Bradstreet's Guide to Doing Business around the World. Available at local bookstores.
• Dun's Marketing Services, (201) 605-6000
• National Trade Data Bank / STAT-USA, (800) STAT-USA, http://www.stat-usa.gov
• The Guide to Cross-Border Direct Marketing. Published by Postal Direct Marketing Service, P.O. Box 132, DK-2800, Lyngby, Denmark
• U.S. Department of Commerce, (202) 482-2000, http://www.doc.gov
• U.S. Foreign Trade Statistics: Classification and Cross Classification. Published by the U.S. Government Printing Office, GPO Access, (202) 512-1530, http://www.access.gpo.gov