lesson 12: promotional methods for exporting Flashcards
- Consists of visual and oral messages that aim to inform and persuade consumers to buy products or services
- Comes in various forms and means categorized as suitable for reaching either the endconsumers or trade buyers
ADVERTISING
- Is a planned program of policies and conduct aimed at building public confidence in an organization, and creating public understanding of what it is trying to do
- This is far more different from product publicity because PR is used to build the image of a company, although certain aspects of it are used to promote products and services
PUBLIC RELATIONS
- Is the most widely used method of promoting products for export
- it takes varied forms and includes many activities aimed at influencing trade buyers to stock up and carry a product, as well as persuading end-consumers to buy it
sales promotion
- Research and experience in your target market will allow you to build a base of potential buyers and clients to whom you can direct your company’s messages
- Include news about your company, such as a new product/service or a successful project bid to introduce your campaign
direct mail
- Publicity is a good way to establish public awareness of a company’s profile and credibility
- Using the media wisely can be highly economical and profitable
- Prepare a media kit that introduces your company, new products/services or newsworthy activities, and include copies of any articles published about your company
media
- Personal contract with potential clients is perhaps the best means of promotion
- Many cultures value personal contract in their business relationships, and attention to cultural issues often impresses foreign business contracts
personal visits
- Attending or participating in international trade shows is an excellent way to promote a product or service
- It allows an entrepreneur to check the competition and conduct market research
TRADE MISSIONS/SHOWS
a type of promotional material wherein - they are an effective means of communication both for small and medium-sized companies as these are considered relatively cheap
- Contain detailed specifications of products offered as well as the company profile
BROCHURES
a type of promotional material wherein - - Considered the simplest forms of brochure
- They are much shorter and used to explore new markets and refine your target list of potential customers
- They contain much of the information printed in the full brochure but in a more condensed form
mailshots/leaflets
- Is a gathering of select people, companies, or organizations in a revenue for a specific period with the general purpose of communicating/marketing products, goods, and services to their target clients
- are meant to show, educate, and inform the public of products and services available to them and more often than not, to increase profitable export sales
trade fair
- mode of payment with _______ payment terms, an exporter can avoid credit risk because payment is received before the ownership of the goods is transferred. For international sales, wire transfers and credit cards are the most commonly used cash-in-advance options available to exporters
cash-in-advance payment terms,
mode of payment that is one of the most secure instruments available to international traders. An ______ is a commitment by a bank on behalf of the buyer that payment will be made to the exporter, provided that the terms and conditions stated in the LC have been met, as verified through the presentation of all required documents.
- Letters of credit
mode of payment in which a transaction whereby the exporter entrusts the collection of the payment for a sale to its bank (remitting bank), which sends the documents that its buyer needs to the importer’s bank (collecting bank), with instructions to release the documents to the buyer for payment.
DOCUMENTARY COLLECTIONS
is a sale where the goods are shipped and delivered before payment is due, which in international sales is typically in 30, 60 or 90 days. Obviously, this is one of the most advantageous options to the importer in terms of cash flow and cost, but it is consequently one of the highest risk options for an exporter.
open account
international trade is a variation of open account in which payment is sent to the exporter only after the goods have been sold by the foreign distributor to the end customer. An international consignment transaction is based on a contractual arrangement in which the foreign distributor receives, manages, and sells the goods for the exporter who retains title to the goods until they are sold
consignment
