International Sales Marketing definition PDF

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Summary

Définition anglaise des principaux termes utilisés en marketing international....

Description

International*marketing*vs.*Global*marketing* * International* marketing* =!the! marketing! carried! out! across!borders.!International!marketing!is! a!strategy! that! uses!extension!from!the!home!country!of!a!firm.! ! Global* marketing=* process! of! conveying! a! final! product! or! service,! with! the! hopes! of! reaching! international! marketing!community.!It!implements!marketing!strategies!based!on!the!region!the!company!is!marketing!to.! ! Multinational*marketing=!a!business!approach!where!international!firms!prefer!using*foreign*vendors*in!order! to!minimizing!costs.!However,!such!companies!should!assess!the!tax!laws,!political!and!economic!situations!as!well! as! any! trade! obstruction! imposed! by! the! country! as! part! of! the! business! strategy.! They* are* involved* in* many* local*markets.!Expl:&Unilever&-&They&have&different&ice-cream&brands&in&the&world.&They&have&local&operations.&! ! Agents** *

=*a*firm*or*individual*acting*on*behalf*of*another.!It's!one!of!the!main!forms!of!foreign!representation.! !

è Most!common!form!of!agency!is!where!agents,!acting!as!independent!operators,!obtain!orders!on* behalf* of*purchaser*or*exporter*on*a*commission*basis!and!the!exporter!acts!as!principal.! è Assess! the! suitability! of! an! agent:! choose! the! right! agent! according! to! its* reputation* and* financial* positioning.!He!may!have!other!interests!so!the!firm!should!ensure!that!it!doesn't!conflict!with!its!own! - What!other!interests!does!the!agency!have?!! - Does!the!agency!provide!the!required!coverage!for!your!market?! - Does!the!agent!possess!the!resources,!services!and!SAV!necessary!to!carry!out!the!task!adequately?! ! *

Export*houses** *

=! Alternative! to! the! manufacturer! having! their! own! export! department.! Export! houses! are! usually! home-based! organizations!that!carry*out*some*or*all*the*foreign*activities*in*place*of*the*manufacturer,!often!using!their! own!agents,!distributors!or!other!intermediary.!Manufacturers!can!delegate!some&or&all&of&their&foreign&operations! to!an!export! house!or!they!may!delegate!parts&of&the&actual&selling&task! to!the!export!house.! They!offer!flexibility! and!a!range*of*services:! ! 1. Export*factoring:!!handling!finance!and!credit!arrangements!on!behalf!of!manufacturers!! 2. Factory*representation:!supervisor!supervises!sales!activities!of!distributors!on!behalf!of!the!manufacturer! 3. Market*intelligence!gathering!in!overseas!markets.!! 4. Handling*exports*procedures*and*documentation! 5. Help*in*selecting*agents,*distributors*and*dealers.! 6. Confirming* orders* and* liability* for* payment:! paying! the! manufacturer! on! confirmation! of! an! order! from!an!overseas!buyer!and!receiving!commission! ! Reasons!for!the!usage!of!an!export!house:! 1. Small*companies*that*lack*of*resources!to!carry!out!foreign!operations!by!the!manufacturer! 2. When!foreign* selling* operations* are* only* small* scale!and!it!would!not!make!economic!sense!to!carry! out!such!operations!oneself.! 3. Use!export!houses!until!a!market!has!expanded*sufficiently!to!warrant!their!own!foreign!operations.! 4. Where!the!export!house!has!particular!expertise!in!a!country!or!an!industry!! 5. When!manufacturing!company!is!predominantly!production*oriented!and*lacks*marketing*expertise!! ! Disadvantages:! 1. Lack!of!direct*contact!with!the!market!! 2. The!manufacturer!may!experience!difficulty*in*monitoring*developments!and!changes!in!the!overseas! market!and!adapting!to!these!changes!in!good!time.!! Expl:&The&1st&year,& the&export&house&is&selling& everything&but&the&next&years,&he&can&do&whatever& he& wants& because&they& have&totally&control&of&the&production.&The&company&of&lobster&didn't&make&any&profit.!

! SEA!TRANSPORT!

Incoterms* * EXW*(EX*works)** This! places! the! exporter’s! liability! for! loss! or! damage! to! the! goods! at! a! minimum.! It! means! that! the! exporter’s! duties!are!minimal.!Ownership!of!the!buyer:!when!products!leave!the!factory! ! FCA*(Free*carrier)* The!exporter!must!deliver!goods!to!a!carrier!named!by!the!buyer!after!making!custom!clearance! ! FAS*(Free*alongside*ship)* The! exporter! is! responsible! for! and! must! pay! all! the! costs! of! transport! up! to! the! point! of! placing! the! goods! alongside!the!ship.!! ! FOB*(Free*on*Board)* This!extends!the!responsibility,!liability!and!costs!of!delivery!for!the!exporter!until!the!goods!have!been!loaded!on! the!ship.!! ! CFR*(Cost*&*Freight)* The!exporter!pays!the!costs!and!freight!necessary!to!bring!the!goods!to!the!port!of!destination.!The!price!invoiced! by!the!seller!doesn't!include!insurance!&!charges,!but!includes!all!expenses!up!to!a!named!port!of!destination.! !! CIF**(Cost,*Insurance*&*Freight)** The!exporter!is!responsible!for!the!delivery!of!the!goods!onto!the!ship!and!pays!the!insurance!on!the!part!of!the! buyer!against!loss!or!damage!while!on!the!ship.!!! ******************************************************************************************************************************************************************************************** DDP*(Free*delivered)* This! places!maximum! responsibility!and! cost! on! the! exporter,! who! undertakes! to! deliver! goods! to! the! importer! with!all!costs!paid!and!all!of!the!administrative!duties!carried!out!by!the!exporter.!! *

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Method*of*payment* * Letter*of*credit* =*Letter*from*a*bank*guaranteeing*that*a*buyer's*payment*to*a*seller*will*be*received*on*time*and*for*the* correct* amount.!If!the!buyer!is!unable!to!make!payment!on!the!purchase,!the!bank!will!be!required!to!cover!the! full!or!remaining!amount!of!the!purchase.&The&safest&way,&but&also&the&most&expensive! !

It!involves:! -&Financial&department&of&your&company&(technical&financial&things)& -&You&as&the&salesman& -&Your&Buyer&& -&The&Bank&of&the&buyer&& !

The!company!sends!the!container!to!the! port!of!destination!while!we!send!the!letter!of!credit!to!the!bank! of!the! seller.!The!risk!is!that!the!buyer!has!financial!trouble!and!if!he!doesn't!want!the!container!anymore,!you'll!have!to! sell!it.!So!you!need!to!ask!for!a!down!payment.! !

! Cash*against*documents* =!Payment!arrangement!in!which!an !exporter!instructs!a!bank!to!hand!over!shipping!and!title!documents!to! the!importer!when!he!will!fully!pays!the!accompanying!bill!of!exchange!or!draft.!Not!a!good!idea!for!truck! transport,!it!works!with!shipping!and!plane.!

! Open*account*(with*insurance)* =!Credit!relationship!in!which!the!buyer!pays!upon!the!receipt!of!goods,!or!on!deferred!payment!basis.! A!Very!safe!way!:!www.atradius.com!It's!the!biggest!credit!insurance!company!of!the!world.! Disadvantage:!expensive.!If!your!customer!doesn’t!pay,!Atradius!will!pay!you.! ! !

Bill*of*lading* =!A!receipt!for!goods!received!on!board!a!ship!that!is!signed!by!the!shipper!(agent).!! -!Name!of!the!shipper! -!Ship’s!name! -!Description!of!the!cargo! -!Payment!details! -!Terms!of!the!carriage!contract! -!Loading!date! -!Who!is!to!be!notified!on!arrival!of!the!shipment!at!its!destination! -!Ports!of!departure!and!final!destination! ! !

Barter*trade* =!Trading*goods*and*services*between*two*or*more*parties*without*the*use*of*money.!Bartering!benefits! individuals,!companies!and!countries!that!see!a!mutual!benefit!in!exchanging!goods/services!rather!than!cash,!and! it!enables!those!who!are!lacking!hard!currency!to!obtain!goods/services.! ! ! International*Trade* * Parallel*trade** =!Products!that!are!imported!without!the!manufacturer's!consent!into!a!jurisdiction!from!a!market*having*lower* prices.* Parallel!trade,! though! legal!in! some! jurisdictions!(expl:&within&the&EU),!is! opposed! by! the! pharmaceutical! industry! because! it! undermines! the! value! of! a! patented! product.! It! is! not! clear! that! parallel! trade! redounds! particularly!to!the!benefit!of!consumers!or!third!party!payers,!as!distinct!from!that!of!the!parallel!traders.!It!only! exists!because! of! Alcohol!and!Cigarettes.!Expl:&in&Australia,&beers&are&cheap&and&in&Japan&it's&really&expensive.&So&they& buy&in&Australia&and&ship&there.&Many&factors:¤cy&issues!

Invisible*trade* =* Business* transactions* that* occur* with* no* exchange* of* tangible* goods/services,! including! customer* service,!intellectual*property!and!patents.!The!items!involved!in!invisible!trade!are!associated!with!a!value!and! can* be* exchanged* for* tangible* goods.! It! represents! an! increasing! percentage! of! world! trade.! Expl:&consulting,& income&from&foreign&investments,&shipping&services&and&tourism.! ! Why*does*international*trade*exist?* • Non!availability!of!a!particular!product! • Differences!in!comparative!costs! • Product!differentiation!! ! Why*export?* • Less!vulnerable!to!home!market!fluctuations! • Loss!domestic!market!share! • Profit!of!growth!in! other! markets.! Obsolete! products! might!suit!other!markets.!Expl:! Malta! sell! obsolete! product!cheaper! • Dumping:!you!have!obsolete!product!so!you!have!to!dump!it!somewhere,!never!in!your!home!market! • Economies!of!scale!/!competitiveness.!If!you!want!to!compete,!sell!in!another!market.!Expl:!NL! • Special!expertise!or!knowledge! • Potential!demand!backed!by!purchasing!power!! ! ! Types*of*goods*and*negotiation* ! Fast*Moving*Consumer*Goods!(FMCG)! =! Any! type! of! goods! that! are! designed! to! attract! consumers! and! promote! a! rapid* volume* of* sales! even! while! providing!those!goods!to!consumers!at!very!affordable*prices.!Goods!of!this!type!are!often! non-durable,!meaning! that!they!are!quickly*consumed!and!require* frequent* replenishment!by!making!additional!purchases.!Buyers! will!spend!relatively!little*time*searching*for*information!and!evaluating!between!different!product!offerings.!If! satisfied! they! will! tend! to! buy! the! same! brand! routinely.! Expl:& toothpaste,& confectionery,& cigarettes,& grocery& products,&cosmetics,&electrical&items&such&as,&say,&batteries,&light&bulbs&etc.!! * Semi-durable*consumer*goods* =!Products!which!are!bought!less!frequently!than!FMCG!products,!last!longer,!and!the!customer!may!spend!more! time!choosing!between!different!competitive!offerings.!Expl:&clothing&and&shoes,&soft&furnishings,&jewelry! ! Durable*consumer*goods* =!Purchases!which!are!made!less!frequently;!often!involve!considerable!outlays!(dépense).!The!customer!will!often! take!considerable!care!in!choosing!between!different!product!offerings!and!will!be!looking!for!lots!of!information! and!help!in!purchasing.!Expl:&refrigerators,&cars,&computers& ! * Why*is*international*sales*often*B2B?* Generally!long-term!relationship!with!customer! More!rational!buying! Purchases!on!bigger!quantities!! Hard!and!expensive!to!get!direct!connection!with!foreign!end!user!(expl:&meat&exported&to&a&country&will&be& first&sold&to&the&wholesalers&or&supermarkets&and&will&be&bought&by&the&end&users&later&on)! ! Differences!with!consumer!buying:! • Reciprocal!buying! • Fewer!organizational!buyers! • Higher!risks! • Close,!long!term!relationships! • Complexity! • Rational!buying!behavior! • Negotiating!important! • Specifications!/!requirements! ! *

Must-have*objectives** Define! a! bargainer’s! minimum! requirements! and! determine! the! negotiating! breakpoint.! Expl:& minimum& price& at& which&a&seller&is&willing&to&trade.&! ! Would-like*objectives* These!are!the!maximum!a!negotiator!can!reasonably!expect!to!get.!It!determines!the!opening!positions!of!buyers! and!sellers.!Expl:!the!highest!price!a!seller!feels!they!can!realistically!obtain.! ! BATNA*(Best*Alternative*To*a*Negotiated*Agreement)*by*FISHER*&*URY* =!Best*option*available*to*negotiators'*side*if*negotiations*fail.!Negotiators!who!have!a!strong,!well-defined! BATNA!have!an!advantage!because!they!have!a!clear!benchmark!! * * Types*of*selling**and*functions* *

* * Order-takers* =! Type! of!salesperson!who! only* collects*orders*but* does* not* make* any* diligent* attempt* to* find* new*customers,! or! to! persuade! existing! customers! to! increase! the! size! or!frequency!of! their! orders! ! Missionary*sales*people* A! manufacturer's! sales! representative! sent! into! a! territory! to! stimulate! sales! of! a! product! (through! special! promotions,!public-relations!work).!Try!to!convince!a!person!that!have!power!in!the!purchasing!decision.! ! Merchandisers* =!Retail*stores*which*sell*finished,*pre-packaged*goods.!They!are!categorized!into!four!types!on!the!basis! of!price,!range!of!product!lines,!and!service!level:!(1)!Department!stores,!(2)!Discount!stores,!(3)!Mass! merchandisers,!and!(4)!Specialty!stores.* ! Key*Account*Management*(KAM)* =! Strategic* planning* technique* that* goes* beyond* traditional* selling* to* tackle* today's* customer* issues.! It! goes! up! until! it! reaches! inside! both! seller! and! buyer! organizations,! so! KAM! is! undoubtedly! more! complex! and! difficult!than!simple!sales!activity.! * *

Personal*selling!-!Pro!&!Cons:! !

+!Interaction:!questions!can!be!answered!and!objectives!overcome! +!Adaptation:!presentation!can!be!changed!to!meet!customer!needs! +!Complex!arguments!can!be!developed! +!Relationships! +!Opportunity!to!close!the!sale! -!Expensive!compared!to!other!media!(training!cost,!salary)! -!Varied!experience/expertise!of!salespeople! -!Difficult!to!standardize!input!and!human!behavior!as!people! & & When*to*lower*prices?** - when!you!break!into!a!new!market,!! - when!overproduction,!! - if!you!want!to!be!more!competitive! & & Sales*orientation! =!Focus!effort!on!the!sales!function.!The!main!issue!here!is!how*to*ensure*that*this*production*is*sold.!!

& Product*orientation* =!Focus!of!the!management's*attention.! * Marketing*orientation* =!Focus!on!identifying!and!meeting!the!stated!or!hidden!customers'!needs.!

* Decision*making*process*or*Evaluation*system* !

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* 3*factors*that*affect*the*consumer*decision-making*process:* 1. The*buying*situation* 2. Personal*influences* 3. Social*influences*

* * * * * *

Consumer*buying*process** !

->!Advertising! ! ! ! ! ->!Personal!selling! !

* Organizational*buying*behavior*-*3!elements!(FISHER):! * 1. Structure*or*“who”&factor&–&who&participates&in&the&decision-making&process&and&their&particular&roles:! - Initiator:!begins!the!purchase!process! - Influencer:!persuades!(provide!information!and!add!decision!criteria)! - Decider:!has!power!/!authority!to!decide! - Buyer:!conducts!transaction,!payment!etc.!have!the!authority!to!execute!the!contractual!agreements! - User:!the!actual!consumer!who!use!the!product! - Gatekeepers:!control!the!flow!of!information! ! 2. Process* or* “how”& factor& –& the& pattern& of& information& getting,& analysis,& evaluation& and& decision-making& which&takes&place&as&the&purchasing&organization&moves&towards&a&decision.! !

1.!Recognition!of!a!problem!(need)! 2.!Determination!of!characteristics,!specification!and!quantity!of!needed!item! 3.!Search!for!and!qualification!of!potential!sources! 4.!Acquisition!and!analysis!of!proposal! 5.!Evaluation!of!proposals!and!selection!supplier(s)!! 6.!Selection!of!an!order!routine! 7.!Performance!feedback!and!evaluation! !

Creeping&commitment=&whereby&the&buying&organization&becomes&increasingly&committed&to&one&supplier& through&its&involvement&in&the&process&and&technical&assistance&he&provides.&

& 3.

Content:* the& “what”& factor& –& the& choice& criteria& used& at& different& stages& of& the& process& and& by& different& members&of&the&decision-making&unit.&Can!be!emotional!and!economic:! !

Economic*

Emotional*

Price!! Delivery! Productivity!(cost!vs.!revenues)!

Prestige! Personal!risk!reduction! Office!politics!

Life!cycle!costs! Reliability! Upgradability! Technical!assistance!

Quiet!life! Pleasure! Reciprocity! Convenience!

Commercial!assistance! Safety!

! !

Factors*affecting*organizational*buying*behavior:*

! * Buying*class** § Straight*re-buy:!when!an!organization!buys!previously*purchased*items*from*suppliers!already!judged! acceptable.!Routine!purchasing!procedures!are!set!up!to!facilitate!re-buys.! § Modified*re-buys:!lies!between!the!two!extremes.*! § New* task:! occurs! when! the! need! for! the! product! has! not! arisen! previously! so! that! there! is! little! or! no* relevant*experience*in*the*company,!and!a!great!deal!of!information!is!required.! !

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Product*type* 1. 2. 3. 4.

Materials*to!be!used!in!the!production!process,!e.g.!steel.* Components*to!be!incorporated!in!the!finished!product,!e.g.!alternator!->!Product!constituents!* Plant*and*equipment* Product* and* services* for!maintenance,!repair!and! operation!(MROs),!e.g.! spanners,!welding!equipment! and!lubricants!->*Production!facilities*

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Supply*chain/*distributional*structure* =!Steps!it!takes!to!get!a!good!or!service!from!the!supplier!to!the!customer.!Supply!chain!management!is!a!crucial! process! for! many! companies! because! it! usually! translates! to! lower! costs! for! the! company.! Difference! between! logisitics:!refers!to!the!distribution!process!within!the!company!≠supply*chain:!includes!multiple!companies!such! as!suppliers,!manufacturers,!and!the!retailers.! ! (Cheese&from&The&Netherlands&to&Portugal)& Farmer&>&Producer&>&Importer/distributor>&Retailer& Farmer&>&Producer&>&Retailer&with¢ral&platform& Farmer&>&Producer&>&Importer/distributor&>&Caterer&(Bars,&restaurants,&hotels)& Farmer&>&Producer&>&Importer/distributor&>&Institutional&market&(Hospitals,&prisons,&Big&factories)& Farmer&>&Producer&>&Chees&producer&(with&distribution)&

! Trade*structure* A!basic!economic!concept!that!involves!multiple* parties* participating* in* the* voluntary* negotiation!and!then! the!exchange!of!one's!goods!and!services!for!desired!goods!and!services!that!someone!else!possesses.!The!advent! of! money! as! a! medium! of! exchange! has! allowed! trade! to! be! conducted! in! a! manner! that! is! much! simpler! and! effective!compared!to!earlier!forms!of!trade,!such!as!bartering.

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Cold*calling*’*or*‘cold*canvassing*’* !=!Direct*selling*to*the*general*public.!Such!sales!personnel!often!rely!on!a!previously!prepared!sales!script.!The! major!problem!lies!in!making!the!initial!call,!and!cold!canvassing!training!suggests!that!this!initial!call!should!be! about!fact!finding!to!gain!information!and!then!setting!up!the!next!meeting.!

! PLC*(Product*Life*Cycle)*

! ! Introduction& Sales!growth!is!relatively!slow.!Dealers!must!be!persuaded!to!stock!and!promote!the!product.!Consumers!must!be! made!aware!of!its!existence,!persuaded!to!be!interested!and!convinced!that!it!is!worthwhile!purchase.!They!may! have!to!be!educated!how!to!use!the!product!and!their!existing!purchasing!and!lifestyle!habits!might!change!(e.g.! microwave!ovens!and!their!associated!convenience).!There!are!few* profits!at!this!stage!and!heavy* launch* costs* often*mean*a*financial*deficit.! & Growth& After!initial!slow!acceptance,!sales!begin!to!escalate!at!a!relatively!rapid!pace.!There!is!a!snowball*effect! as! WOM* communication!and!advertising!begin!to!take!effect.!Dealers!may!request!to!stock!the!product.!Profits!begin!to!be! made,! especially! if! a! newly! introduced! product! can! command! high! initial! prices! (Price! skimming! is! a! product! pricing!strategy!by!which!a!firm!charges!the!highest!initial!price!that!customers!will!pay.!As!the!demand!of!the!first! customers!is!satisfied,!the!firm!lowers!the!price!to!attract!another,!more!price-sensitive!segment.)! & Maturity&& The! growth! of! sales! begins* to* slow! as! the! market! becomes! saturated.! Few! new! buyers! are! attracted! to! the! product!and!there!is!a!high!proportion!of!repeat*sales.!Attracted!by!the!high!profit!and!sales!figures,!competitors! have!now!entered!the!market.!Partly!because!of!this!increased!competition,!profits!begin!to!decline.!! ! Decline& Sales! begin! to! fall! and! already! slim! profit! margins! are! depressed! even! further.! Customers! might! have! become! bored!with!...