3. promotion of international business - promotion and marketing communication

International Business

Management

Theme 3. Promotion of international business

Promotion and marketing communication

11/8/2014 Valeriu Potecea @ Georgiana Surdu-Nițu 1

Promoting

International Economic Exchanges


Export marketing promotion and communication

activity includes:

aspects of commercial advertising, aspects of public

relations, participation in domestic and international

fairs and exhibitions and other forms of promotion, and

economic incentives and financial instruments used or

provided by the state, and used by businesses

Goals and Tasks of Promotion

Informing

Reminding

Persuading

Target Audience


Informing

Reminding

Persuading

Target Audience

PLC Stages: Introduction

Early Growth

PLC Stages: Growth

Maturity

PLC Stages: Maturity


1. The informing phase of promotion seeks to convert an existing need into a want or to

stimulate interest in a new product. It is more prevalent during the early stages of the product

life cycle.

2. Persuasive promotion is designed to stimulate a purchase or an action. It becomes the

main promotion goal when the product enters the growth stage of its life cycle.

3. Reminder promotion is used to keep the product/brand name in the public’s mind. It is

effective during the maturity cycle.

Remind customers that product

may be needed

Remind customers where to buy product

Maintain customer awareness

Reminder Promotion

Barriers to Export Marketing Promotion


• Cultural/Language Differences

• Government Regulation

• Media Availability

• Economic Differences

• Tastes and Attitudes

• Buying Process

Important in export marketing communication


When translating an advertisement into another language, several missteps are possible: some words may be euphemisms in another languages,

a literal translation does not convey the intended meaning, phonetic problems may result in brand names sounding like a different word, or

symbols (color, the use of animal symbols, the use of an object as a type of symbol, layout of advertising, the use of accurate and up to date symbols, etc.) become inappropriate or project an unintended message

Communication with buyers in export markets may not be effective for a number of reasons: the message may not get through to intended recipient

the message may not be understood in the same way intended by the sender

the message may not induce the recipient to take action desired by sender

Promotion blunders


Language barriers

• A dental office in Hong Kong: „Teeth are extracted by the latest methodists.”

• A dry cleaning in Bangkok: „Drop your trousers here for the best results.”

• A medical center in Rome: „Specialist in women and other diseases.”

• A restaurant in Switzerland: „Our wines leave you nothing to hope for.”

• A sign posted in Black Forest Mountains in Germany: „It is strictly forbidden on our Black Forest camping site that people of different sex, for instance, men and women, to live together in one tent unless they are married with each other for that purpose.”

• And finally, an advertisement that betrays the truth, displayed in a Danish travel agency: „We take your bags and send them in all directions.”

Promotion Blunders


Euphemisms and incorrect translation of phrases

Parker Pen advertisement statement in Latin America was :“Won’t leak in your pocket and embarrass you”. Blunder: Due to poor translation in Spanish, it came out as “Won’t leak in your pocket and impregnate you”

Kellogg had to rename its Bran Buds cereal in Sweden when it discovered that the name roughly translated to "burned farmer“

American Motors tried to market its new car, the “Matador”, in Puerto Rico, based on the image of courage and strength. Reason of blunder: in Puerto Rico the name means "killer" and was not popular on the hazardous roads in the country

When PepsiCo advertised Pepsi in Taiwan with the ad "Come Alive With Pepsi" they had no idea that it would be translated into Chinese as "Pepsi brings your ancestors back from the dead“

General Motors ‘Body by Fischer’ was translated on Belgium market as ‘Corpse by Fischer’

KFC’s ‘Finger licking good’ in Chinese was ‘Eat your fingers off’

Phonetic problems with brand names

Body Mist spray. In German mist means manure

Chevrolet used the word Nova in Mexico. No va means ‘it doesn’t go’

Promotion Blunders


Symbols

In Brazil a US company used a large deer as a sign of masculinity. Blunder: the word ‘deer’ turned out to be a Brazilian ‘street name’ for a homosexual

An owl was used in an advertisement for India. Blunder: to an Indian, the owl is a symbol of bad luck

McDonnell Douglas Corporation in a brochure sent to potential aircraft customers in India used a photo that depicted turbaned men. Blunder: men turned to wore a turban style of Pakistan

Procter & Gamble used a television commercial in Japan that was popular in Europe. The ad showed a woman bathing, her husband entering the bathroom and touching her. The Japanese considered this ad an invasion of privacy, inappropriate behaviour, and in very poor taste.

Unintended message

Umbro the UK sports manufacturer had to withdraw its new trainers (sneakers) called the Zyklon. Reason: The firm received complaints from many organizations and individuals as it was the name of the gas used by the Nazi regime to murder millions of Jews in concentration camps.

Pepsodent tried to sell its toothpaste in Southeast Asia by emphasizing that it "whitens your teeth." Reason: They found out that the local natives chew betel nuts to blacken their teeth which they find attractive.

Stages of development of effective

marketing communication


I Identifying the target audience

II. Determining the communication objectives

III. Designing the message

IV. Selecting the communication channels

V. Determining the total budget for communications

VI. Establish the communication mix

VII. Evaluating of the results of communication

VIII. Managing integrated marketing communication

process

I. Identifying the target audience


The process must begin with a precisely defined target audience:

potential buyers of the company's product, current users,

decision makers and the factors that influence the purchase

decision, individuals, groups of individuals, namely segments of

public or general public.

Target audience is a crucial factor influencing the decision made

by the transmitter about : how to say, when, where and to whom.

II. Determining the communication

objectives

After identifying the target market and its perceptions, marketing communications transmitter must decide what kind of answer wants from the audience.

Exporter may seek a cognitive response (learn), affective (feel) or conative (do). Thus, exporter wants to install something in the consumer's mind, or to change an attitude, or, respectively, to determine the consumer to take action.

The first three sequences seems to be characteristic of Western culture, while the latter is close to the Japanese culture.

Hierarchy Sequencing

Traditional learning Learn-Feel-Do

Low involvement Learn-Do-Feel

Dissonance attribution

Do-Feel-Learn

Dependency Feel-Do-Learn


15

Push and Pull Strategies

Manufacturer promotes to wholesaler

Wholesaler promotes to

retailer

Retailer promotes to consumer

Consumer buys from

retailer

PUSH STRATEGY (Office Depot and Office Max) Is defined as working with resellers or assisting them in selling the product at the point of sale; buyers are not presold and they depend on the advice or guidance of a sales person

Orders to manufacturer

Manufacturer promotes to

consumer

Consumer demands product

from retailer

Retailer demands product

from wholesaler

Wholesaler

demands product from manufacturer

Orders to manufacturer

PULL STRATEGY (Coke and Pepsi) Is defined as preselling the product so that buyers seek it out or ask for it at the point of purchase

III. Designing the message


Once defined the desired response, the transmitter of the

communication effectively moves to create a message.

In an ideal situation, the message must draw attention, arouses

interest, stimulates the appearance of desire and gives an

impetus to action (the AIDA concept).

In reality, few messages manage to wear the consumer through all

stages from awareness to purchase, but the AIDA model suggests

desirable characteristics of any communication.

The AIDA Concept

Model that outlines the process

for achieving promotional goals

in terms of stages of consumer

involvement with the message.

Attention

Interest

Desire

Action

AIDA

Concept

The AIDA Concept

Action

Desire

Interest

Attention Cognitive (thinking/learning)

Affective (feeling)

Conative (doing)

The AIDA Concept The relationship between the AIDA model and the promotional mix

IV. Choosing the communication channel


Communication channels are personal and nonpersonal.

Within these categories there are many sub-channels.

Personal Communication Channel: assume that two or more people

communicate directly with each other, either individually, speaking in

front of an audience, either by phone or by e-mail.

Nonpersonal communication channels include:

1. media / information means

2. ambiances

3. events (organized for different occasions)


VI. Establishing marketing communication

mix A. Advertising:

advertising editorials,

info ads, banners

B.Personal selling

C. Sales promotion:

coupons, contests,

gifts

D. Public

relations

& publicity

E. Trade fairs

and

exhibitions

F. Direct

marketing:

direct mail,

telemarketing,

Internet

-presentation (public

addressability) suggests

an standardized offer

-penetration capacity:

allows the seller to

repeat a message many

times and the buyer to

receive and compare

messages issued

-enhanced expression:

enables a spectacular

presentation of the

company and its

products;

-addressing impersonal: it

is a monologue in front of

the audience, not

dialogue with it;

-can be used to create a

sustainable product image

or trigger for a quick sale.

-personal confrontation:

requires an immediate and

interactive response;

-cultivation: allows the

emergence of different

relationships, from a

simple shopping dialogue

to a deep personal

friendship;

-response: makes the

buyer feel somewhat

obliged to listen to the one

who presents the offer, it

is the most effective tool in

the later stages of the

buying process, especially

in determining the

preference of buyers, the

conviction, the decision

and the transition to action . Sales presentations, sales meetings,

sales training and incentive programs

for intermediary salespeople, samples,

and telemarketing

-communication:

attract attention and

lead the consumer to

the product;

- incentive to

purchase:

incorporate some

concession, facility or

contribution which

gives the consumer a

great relationship

between price and

value obtained;

-invitation: an explicit

invitation to purchase

the product on the

spot;

-can be used for short-

term effects such as

stress the sensational

product offerings and

boost a slow pace of

the sale.

-high-credibility:

background

reports and

articles are more

authentic and

credible than

advertising;

-the possibility to

surprise buyers:

you can reach

potential clients

who prefer to

avoid contact with

sales

representatives

and hate

commercials;

-dramatic

presentation: it

can make a

portrayal of the

effect of the

company or its

products.

- often is the

fair is the

first

communicati

ve step in the

process of

export

development

of SMEs.

- have become

a big part of

selling

process for

many

company.

- unique

elements of

the process:

gathering

names,

demonstratio

ns, prizes,

and client

promotions

-non-public: the

message is sent,

normally to a

particular person;

-individually-

tailored

(personalized)

message can be

designed to

perform

attraction on the

individual

recipient;

-current: the

message can be

done very quickly;

-interactive: the

message can be

modified

depending on the

response of the

recipient.

22

The Tools of Marketing Communications Mix

Advertising

Personal Selling

Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.

Sales Promotion Short-term Incentives to Encourage Sales.

Public Relations Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity.

Trade Fairs and Exhibitions

Offer Possibilities of Sales as

well as Positioning of

Company and Product Brands.

Personal Presentations by a Firm’s Sales Force.

Direct Marketing

Direct Communications With Individuals to Obtain an Immediate Response.

A. Advertising


Advertising is defined as both " science, business or profession of creating and disseminating messages ( ads ), a social institution that affects the daily life of every individual, a force shaping mass culture, a component of the marketing activity or a source of information about products, services , events, individuals or institutions ( companies) “

" Advertising is the placement of identified advertisements in defined media against known costs of space or time to use it."

Advertising is a form of persuasive communication, serving to alter the behavior of receptors for the purposes of acquisition of a particular service or product, whose advertised qualities are real

Represent concepts, methods and procedures used to advertise products, services and ideas to spark interest to potential customers to purchase immediate or in the future

Advertising


It is assumed that the oldest written advertisement is dating back 3000 years, was inscribed on papyrus and discovered among the ruins of Thebes in Egypt, which is kept in the British London Museum:

"Having escaped the slave Shem from his master Hapu, the weaver, this one invites all the

good citizen of Thebes to find him. He’s an hittite, five-foot high, of healthy complexion and brown eyes; who returns him to the store of Hapu, the weaver, where are woven the most beautiful fabrics to the pleasure of each one, will be given a piece of gold."

Logos began to be used in the same period: a baker company was represented by a mule setting in motion a mill, dairies used as emblem the goat, snake effigy was used by pharmacists etc.

Advertising - functions


Informing buyers/agents about the emergence of new products, their quality and features, new ways to use them, and the positive changes, technical or economic that occur for older goods or services

Creating a preference or predisposition and finally, a conviction to buy a product or a service. To fulfill this function, the advertising must combine objective arguments (rational appeals) relating to the features, with subjective arguments (emotional appeals) based on motives and attitudes of the public

Creating brand or product loyalty, or to the company that made or marketed that product

Promoting the sale of new products or gaining new customers ("creating new markets") and supporting the sales of products already existing on the market ("broadening existing markets")

Advertising Media


Print communications (newspapers, magazines, direct mail, technical specifications, operational and service manuals, brochures and general and product catalogs, leaflets, technical and commercial papers,advertising letters)

Audio-visual media (radio and television)

Outdoor and transportation media (billboards, posters, signs, transit/car cards)

Cinema

Internet Banner ads Viral marketing E- mail Interactive video

New Advertising Media

Traditional

Advertising Media

Important aspects in international

marketing


If the product is suitable for a particular country.

For example, beer, wine, spirits can not be advertised or sold in a Muslim country, tobacco products are subject to strict regulations in many countries.

If the market segment you are targeting is both legal and common.

Coca-Cola has different advertisements for different national market segments, many American companies have learned with surprise that in countries such as Norway and Sweden no TV advertising can not be addressed to children under 12 years and are lobbying to extend the ban throughout Europe.

If advertising is acceptable or normal in all countries involved.

Comparative advertising, though admitted and even common in the United States and Canada, is less common in the UK or Japan, unacceptable and illegal in India and Brazil.

If ads are made global or local (global or local scale).

More companies are trying to build a global brand image, using the same advertising in all markets where they act.

Ph. Kotler „Marketing management“

B. Personal selling


Oral presentation in a conversation with one or more prospective purchasers for the purpose of making a sale

Personal selling represents the most popular promotional effort in terms of financial expenditures and number of people employed

Is a common communication tool in countries with restrictions on advertising and countries where low wage rates allow large local forces to be hired

The 3 basic functions of personal selling: 1. the actual selling activity 2. customer relations 3. information gathering and communicating

Personal Selling is: (1) Dyadic, (2) Flexible, (3) Focused (personalized), and (4) Often results

directly in a sale Other promotional elements move the customer toward the sale, personal

selling closes the sale

C. Sales promotion


Is a set of techniques aiming to offer enrichment content by adding supplementary value to the product/service, price, distribution, for a limited period of time, taking into account the objectives of the company and in order to gain a temporary advantage to competition

According to Philip Kotler, sales promotion consists of a "diverse set of specific tools, mostly short term, designed to stimulate quicker purchase or to purchase a larger volume of products or services by the consumers“

Supplement and strengthen the personal selling and advertising

Advertising – Sales promotion


Create image in time

It is primarily based on emotional

arguments

Add intangible value to services

that create the image

It has a moderate contribution to

the creation of short-term profit

Create immediate action

Strategies to add value based on

rational reasons

Add tangible value service

It has a major influence in creating

immediate profit

William Wells, John Burnett, Sandra Moriarty

“Advertising – Principles and Practice”, Prentice Hall, 2003

Sales promotion techniques


Temporary price reductions (TPR)

Combination sales

Free gifts and Buy-One-get-One–Free (BOGOF)

Contests, games and lotteries

Advertising at the point-of-purchase

Sampling

Free trials

Loyalty programs, etc.

Sales promotion


Temporary price reductions

(TPR)

Combination

sales

Promotional

gifts

Contests,

games and

lotteries

Advertising at the

point-of-purchase

A price reduction, even temporarily, can be a highly effective promotional tool, as the price is a major factor in the decision to purchase.

If the price reduction takes longer, then the buyer is common and no longer considered a favor.

Price reductions may be considered in different situations: as a means of eliminating reservations from the purchase of certain categories of consumers, price is considered too high; decrease inventory or liquidation of slow salable products; counteract competition; the use of opportunities offered by certain market circumstances

In this category are special offers,

discount coupons, remises,

reimbursement offers, quantitative

rebates etc., strong incentive to sell a

product at a time.

Represent all

promotional

techniques used

for

simultaneously

or successively

sales of two or

more products

at a price lower

than the

combined

individual prices.

Concern the

facilities that the

seller intends to

give the buyer by

offering bonuses,

items or services.

Giving gifts is to

assign a

temporary

advantage of a

product, experts

recommending

that the object

offered to attract

and meet the

image of the

product / service.

Concern

facilities that

the seller

intends to

give the buyer

by providing

items or

services.

Includes all signalizing

techniques within the

business units to attract,

guide and direct the

customer interest to a

specific counter, product

or offer using auditory

means (sounds), to return

the memory of the

potential buyers towards a

brand, a product, utility or

to announce a

promotional offer.

Sales promotion Advertising at the point-of-purchase


At the point of purchase, promotion is very complex and is achieved by:

1. Advertising materials: foreign catalogs, house organ and company-published magazines, films, slides, posters, stickers, show cards, dummies (giant boxes), hangers, shelf labels, leaflets

2. Sampling (distribution of free samples)

3. Awards

4. Offering coupons

5. Discounts

6. Special events

7. Contests and lotteries

8. Promotion in collaboration

9. Trade incentives

Sales promotion


Foreign catalog

Help to close gap between buyer and seller

Purpose of Catalogs: create interest and attract readership

mirror the personality of the manufacturer or exporter

carry the reputation of manufacture or exporter to world market

make buying easy

create the desire for ownership

supply all the facts that a sales person would present in person - information on size, colors and quantities to packing, shipping time, payment terms and so on.

Samples

Can give an idea of form and quality to the potential foreign buyer

Avoid misunderstanding over styles, sizes, models

Limited to certain products only

Two types:

direct sampling - by mail, express or courier, magazines etc. and or use of samples by residential agents, branch office managers, and traveling salesmen

the use of samples at sample fairs, import fairs, and similar demonstrational and promotional enterprises for buyers

Sales promotion- Merchandising


Includes techniques used in marketing, which refers to the presentation in the best conditions (material and psychological) of products and services to the market

Represents all transactions are carried out to speed up the sell of the product from the shelf

These techniques relates on how is best to place the products / services in the selling space, attaching particular importance to the visual factor in sales, support products / services from them in the sales process

D. Public relations & publicity


The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance

PR represents a direct activity, performed consistently and systematically, of cultivating contacts between the company and its external environment in order to create mutual trust and the formation of a positive image of a company and its products to the general public

Public relations is a long-term activity that seeks to gain public sympathy and confidence of a certain audience and whose effects are long term, using instruments that exceed the commercial side

Publicity


Is any form of nonpaid significant news or editorial comment about a company, its practices, its personnel, or its products

Is a major component of the public relations activities of a company

Publicity is also known as "free advertising", embodied in any type of media exposure to product / service or executives of a company.

Consists of providing information to the media in the hope that they will be seen as having news value (newsworthiness)

The functions of public relations


1. To advise management and to approve all its actions which influence the public

opinion

2. To educate the public about the company’s objectives and to gain public understanding for the purposes and activities of the firm, providing satisfactory information

3. Corporate communications – to determine among employees a sense of solidarity with the company's own interests and thus enhance their work for increased benefits

4. Lobbying - to inoculate the public with belief that the company or institution is able to meet the needs of society in the best conditions for the products and services concerned

Advertising – Public relations


Advertising Public relations

1. Aims at promoting exports of goods or

services

1. Aims to promote relations with individuals

or entities

2. Supports direct export 2. Creates a climate of understanding and

trust

3. Has the role of information and

coordination of market activity

3. It addresses to the public and various social

groups

4. Leads to enhanced market position 4. Earns the sympathy to a specific audience

5. Provides a one-sided flow of

information, acting on potential buyers

5. Provides a bilateral flow of information

6. Uses specific commercial means 6. Uses means exceeding the commercial side

of the business

E. International trade fairs and

exhibitions


Fairs are organized markets in predetermined locations and focuses for limited

periods of time the demand and supply of goods, the latter being present

through either products or product samples, or by illustrative documents, and

having complex objectives, promotional and commercial.

"Trade fairs are privileged forum, offering us the opportunity to meet not only our customers and potential

clients, but also the leading decision makers and journalists in our business sector.” (Françoise Sortais, Manager,

Show & Event Coordination, Michelin Company, France)

Exhibitions are occasional events that are not intended to reach, with priority,

business objectives (sales), but are intended to provide information on

progress made in a given field.

Classification

d) Depending on the profile:

1. general

2. specialized

3. strictly specialized

e) Depending on the length of the operation:

1. short

2. long

3. permanent

f) Depending on the mobility space:

1. fixed

2. temporary exhibitions

3. Itinerant/ travelling

4. caravans

a) Depending on the size, number of participants, and location:

1. local

2. domestic

3. international

b) Depending on the organization:

1. official

2. private

c) Depending on the subject of exposure:

1. 1st generation - fairs and exhibitions of goods

2. 2nd generation II - fairs and exhibitions of samples of products, models for high-volume products, technical documentation

3. 3rd generation - ideas, systems, concepts


The program of participation in an

international fair

1. Select the event

defining company objectives

designation of persons participating

choosing and booking the stand

2. Planning activities

setting action plan, even with12 months before

expenditure budgeting

3. Implementation of the action innovative ideas for assertion

against the competition active attitude, aggressive collection of competitive

information paper sheets after each business

meeting 4. Follow-up action at return, will make a record of

participation preparing tenders for applications

received during the fair contacting potential partners who

were interested


Comparative efficiency source: http://www.agd-exhibitions.net/whyexhibitions.html#1


0%

10%

20%

30%

40%

50%

60%

demonstrating the benefits

of products and services

building relationship with

your customers and

prospects

Criteria to select the event


The following criteria are relevant:

1. Types of trade fairs available for the product segment

2. Relevance of the trade fair for the market

3. Client target group

4. Competition

5. Costs

6. Quality of the trade fair organizer

7. Basic conditions

Functions of international trade fairs

and exhibitions


• Occasion for a complete and complex commercial advertising

• Market overview - concentrate in time and space the demand and offer of goods, offering

great opportunities for research and forecasting market with relatively low financial effort

and at higher quality

• Trade function - it is an ideal place for business negotiations and contracting. It is

conducted in an open competitive environment

• Provides opportunities for the development and strengthening of the company

• Discover new opportunities to improve the presentation and distribution channels for

products and services in different markets

• It is a training school for company’s personnel, given that in short period of time they

work with complex promotion, negotiation and contracting of goods and services

Planning procedure


The planning procedure starts at least 9-6 months before the trade fair takes place.

The following activities should be determined by contents and time:

Register with organizer (9 months before)

Briefing and rough stand design (8 months)

Planning assembly and disassembly (7 months)

Construction of booth (stand) (6 to 2 months)

Preparing furniture, equipment and exhibits (6 to 1 months)

Compiling material (3 to 1 months)

Transport of material (4 to 3 weeks)

Assembly of booth (2 to 1 weeks)

Handing over of booth (day before trade fair)

Disassembly of booth

Transportation to company

Repair and storage

Stand-functions


Stand performs usually the following features:

Attract the attention of visitors

Highlights qualitative characteristics of exhibited products

Ensure the transmission of information that contribute to creating a positive image about the company or the national economy

Provides favorable conditions for negotiations

Stand - design


Stand design takes into account the following:

possible size of the stand

the number of open sides for display of goods. The company can choose several types of stands:

stand straight with one facade (the cheapest)

angular shape stand

3 facades stand

Island stand (most expensive) etc.

position of stand in the main stream of visitors

the characteristics of the products to be displayed

possibilities of association, presentation in group of the exhibits or focus attention on a particular product

storage space required for advertising material, samples, souvenirs

main utilities: water, electricity, telephone, Internet, air conditioning

opportunities to make video projections

Stand - Angular design


Island stand example


Requirements of the fair participation


Visitor focus on exhibits it is achieved by:

Using light holders

Correct positioning in the flow of visitors

The use of mirror systems

The movement of the pedestal on which is placed the product

Selection and training of personnel. Typically, the team is composed of:

Specialists in advertising, negotiating, contracting

Designers, decorators, architects and stand builders

Receptionists, security personnel

Specialists able to perform various demonstrations

Managers - stand chiefs

The participation budget in a specialized fair


Elements of cost Sum Elements of cost Sum

BOOK STAND

1. Rent (no meters x the price of m²)

2. Registration fees

3. Insurance

STAND ARRANGEMENT

1. Rental booth

2. Rental of furniture

3. Decorating

4. Presentation materials and animation

5. Fees for decorators

OPTIONAL UTILITIES

1. Electricity, water, telephone, internet

2. Other: air conditioning, gas

SERVICES

1. Insurance premiums

2. Translation and entertainers

3. Parking for exhibitors

4. Cleaning, maintenance

5. Agency staff

COMMUNICATION

1. Documentation expenses

2. Letters of invitation

3. Creating a press kit

4. Advertising in the official catalog of the salon

5. Advertising in the local press

6. Promotional items

7. Cocktail and / or other activities to public relations

8. Photos of the stand

TRAVEL AND ACCOMODATION

For materials / products displayed:

1. Handling and transport

2. Insurance

3. Transit and customs clearance

For staff:

1. Transportation, accommodation, meals

2. Travel expenses in the visited country

3. Wages and social contributions

Effective participation in fairs


1. It examines the various costs:

rental of space required

construction, decoration and modulation of stand

advertising campaign

transportation of exhibits and materials

services

staff salaries and allowances

2. Take into account the achievements of the fair:

sales achieved

contracts under negotiation

number of visitors (including the professionals and businessmen)

share of new customers

Evaluation of participation - indicators


cost per contract (the cost of a business contract concluded at the fair) = the ratio between total expenses (cost of participation) and the number of signed contracts

Fair benchmark index = the costs of participation

volume of transactions concluded at the fair

Trade fair coefficient = value of the turnovers of fair x 1000

cost of participation

cost per visitor (cost of attracting visitors to the stand) = the ratio between the cost of the trade show participation (total marketing program) and the number of visitors.

Comparison(2007)


Location Area (space) Visitors Sales (euro)

Bucharest– Romexpo

245.000 sqm 250.000 1 visitor/ sqm

24.000.000 97 EUR/sqm

Dusseldorf 300.000 sqm 1.420.000 4,7 visitors/sqm

218.000.000 727 EUR /sqm

source: www.eventconference.ro

Entities for Promotion of foreign trade

(export) in Romania

Channels for promoting Romanian business environment:

Directorate General for Trade and International Relations of the Ministry of Economy, Trade and Business Environment (http://www.dce.gov.ro/)

Chamber of Commerce and Industry (http://www.ccir.ro/)

The Export - Import Bank of Romania (http://www.eximbank.ro/)

Romanian Center for Trade and Investment (http://www.romtradeinvest.ro/)

Ministry of Foreign Affairs (www.mae.ro)


http://www.dce.gov.ro/

http://www.dce.gov.ro/

http://www.ccir.ro/

http://www.ccir.ro/

http://www.eximbank.ro/



http://www.romtradeinvest.ro/

http://www.romtradeinvest.ro/

http://www.mae.ro/

Entities for Promotion of foreign trade

(export) in other countries


Federation of Indian Export Organization (http://www.fieo.org)

Office of the United States Trade Representatives

(http://www.ustr.gov)

Germany Trade & Invest (http://www.gtai.de)

Japan External Trade Organization (http://www.jetro.go.jp)

Export Development in Canada (http://www.edc.ca)

Austrade (www.austrade.gov.au)

Italian Trade Agency (http://www.italtrade.com)

http://www.fieo.org/

http://www.fieo.org/

http://www.ustr.gov/

http://www.ustr.gov/

http://www.gtai.de/

http://www.gtai.de/

http://www.jetro.go.jp/

http://www.jetro.go.jp/

http://www.edc.ca/

http://www.edc.ca/

http://www.austrade.gov.au/

http://www.italtrade.com/

http://www.italtrade.com/

3. promotion of international business - promotion and marketing communication

Documents