The economic situation has always been unpredictable. One year ago who could tell with a certain share of clearness, that the world will be captured by the economic crisis of epic scales? But it has come, and we should use the best efforts both at level of separate persons, and at the corporate level.

How do the companies handle an economic crisis? What measures do they undertake to protect a market share, to save their talents and, probably, even to use a situation for the expansion of business?

In order to answer these questions, we should understand that the key moment for the company survival are the sales. The company can cut expenses to certain degree, but without sales sooner or later the money will come to an end and the company will be shut down. The production or services should be on sale in order to generate a turn of money that in turn, will give payments of salaries, employment etc. 

And here we face a question: how does the company organize sales at the times of crisis? There are many strategies, which companies can apply in order to support sales, basically, manipulating around changes of the price and conditions, and also new kinds of production, but all of them depend on whether the interests of the target audience will be taken into account. What is the point in reduction of prices on existing production if the company has not informed the buyer about it?

The economic crisis is characterized by uncertainty, especially in our part of the world. Nobody knows that will be tomorrow, in a week, or in a month. As a result, all consumer purchases which are not necessary to be done, are postponed, and all necessary purchases are done regarding the point of necessity to save as much money as possible. In other words, the consumer becomes very legible. At the time of crisis the buyer wishes to «find the bargain» and to receive the best price.

The aspiration to «find the bargain» becomes obvious at all the levels of economy, but it becomes more distinct in the process of ascension along the price ladder. People will pay attention to the difference in the price, for example, for bread but all the same they will not quit buying it. The companies will be extremely cautious at purchase of the capital goods which cost millions of dollars. Thus, the higher the parity capital investment / available means, the more companies will want to «find the bargain», consider all offers in the beginning before making the decision.

Following this logic, we approach the topic of exhibitions. The trading exhibition is the exhibition organized in such way that the company of the certain industry could show the newest production, study activity of competitors and know more about recent trends and possibilities. This is an event which involves all serious consumers in certain sphere. Fairs and exhibitions are widely advertised in mass media, especially – in specialized magazines. The information on most important of them reaches the most remote spots of the country and follows beyond its limits. Basically, while gathering at the exhibition, its participants create «critical mass» and form the market event which appears more considerable, than direct advertising.

Such market event is important because in the environment, in which there are less buyers, it is necessary for the companies to use all means necessary for attraction and keeping the clients. Perhaps, the potential buyer will not respond to the individual offer, but he will necessarily visit the exhibition because he surely knows that all the companies will be presented there and he can learn about all offers simultaneously. In turn, the companies taking part in the exhibition show themselves to the maximum quantity of consumers.

In order to understand crisis, it is necessary to realize that its major part is connected with human mentality and nature. The panic and uncertainty can stop economic activity: people stop buying goods, the quantity of sales decreases etc. If they all gather together and see all those who was present last year, if they see that there are buyers and that the life goes on, they all start to feel more confident and keep on working. Besides that, at the exhibitions there creates structured and organized environment, in which the buyers and the sellers, having gathered together, are involved in dynamical process of trade. It becomes much more effectively to work in such atmosphere as the most demanding consumers, having got confidence, become more pliable. Uncertainty, which represents the most part of the economic crisis, disappears.

What occurs to those companies which for any reasons do not accept participation in an exhibition? As shows experiment, even in the presence of stable relations with any firm, the consumer necessarily visits a corresponding exhibition. It does it at least simply to see and other offers existing in the market. And it accepts the decision on purchase, only having processed the received information. Or at the exhibition, or soon after its end. Interestingly also that the buyer chooses only among the companies-exhibitors. The same firms which have not been presented, drop out of a field of vision and are forgotten. Thus, among other functions of exhibitions – division of the market into strong and weak players.

But what occurs to those companies which for some reasons do not undertake participation in the exhibition? As shows experiment, even in the presence of stable relations with any firm, the consumer necessarily visits corresponding exhibition. He does it at least simply to see also other offers existing in the market. And The consumer makes the decision about purchase only having processed the received information. Either at the exhibition, or soon after its ending. It is also interesting that the buyer chooses only among the companies-exhibitors. Meanwhile those firms which have not been presented, drop out of a field of vision and become forgotten. Thus, among other functions of exhibitions there is one very important: division of the market into strong and weak players.

Certainly, the purpose of participation in the exhibition for any company is achievement of success. Simply to participate is just not enough. To succeed, it is necessary for companies to have the favorable offer, to use effective methods of attraction of clients and presentation of production. Organizers usually advise participants in how to construct the stand and how to organize the work at this stand in order to attract the buyer. Otherwise the potential client can pass by. One more and the all-important moment is gathering of business cards and work with client base upon the ending of the exhibition. As ascertaining: correctly organized and actively spent time at the exhibition can considerably increase sales even in the conditions of crisis.

The experience again and again shows the main principle of survival: the company should make its name well-known and state the offers to maximum possible quantity of people. Then the sales will be increased. While to sit, having arms folded in hope to wait for the crisis to end or to undertake insignificant steps alone – that is a way to failure.
Crisis has struck not for the first time. From positions of the exhibition industry, we can declare definitely that no matter what, in the conditions of crisis the business goes on. And in an arsenal of the companies, which have come out winners in the struggle against crisis, the important place was occupied by exhibitions. Fairs and exhibitions – not the unique weapon, but one of the most effective.

So, the recommendations for those companies, which search for an exit from the current situation, are: advertise yourselves, participate in the branch forums, promote yourselves and your offers, be consolidated with competitors, add to your arsenal the best from what is done by the others. Then you will not only stand, but also will expand the business at the expense of those who has not made it through.

Author: Vladislav Kostyuk

The material is given by the Magazine «The Calendar of Exhibitions and Fairs»