building global business relationships - dr. said el mansour cherkaoui;

Email: [email protected]@glocentra.com

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All Rights Reserved to GLOCENTRA

Building Global Business Relationships

Said Cherkaoui, Ph.D.


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Marketing does not begin/stop at theend of the loading dock!

• Marketing should be involvedfrom the conception of theproduct to the ultimate user.


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4 Eras in Marketing

2. SALES ERA:

–"Creative advertising & selling will overcome customer resistance & convince them to buy”

– Between 1925 & early 1950's

– Selling was main focus of marketing

http://rds.yahoo.com/_ylt=A0oGkyGpPO1I4CsARBFXNyoA;_ylu=X3oDMTB2M3FpY2pkBHNlYwNzYwRjb2xvA3NrMQR2dGlkA01BUDAxNV8xMzk-/SIG=1o0aoo5tv/EXP=1223593513/**http%3A//images.search.yahoo.com/images/view%3Fback=http%253A%252F%252Fsearch.yahoo.com%252Fsearch%253Fei%253DUTF-8%2526p%253Dsales%252Blogo%26w=307%26h=232%26imgurl=static.flickr.com%252F3113%252F2516563881_3d30799f81.jpg%26size=30.5kB%26name=2516563881_3d30799f81.jpg%26rcurl=http%253A%252F%252Fwww.flickr.com%252Fphotos%252Fkristinafh%252F2516563881%252F%26rurl=http%253A%252F%252Fwww.flickr.com%252Fphotos%252Fkristinafh%252F2516563881%252F%26p=sales%2Blogo%26type=jpeg%26no=3%26tt=129%252C843%26oid=1e2e6c77d818d678%26fusr=kristinafh%26hurl=http%253A%252F%252Fwww.flickr.com%252Fphotos%252Fkristinafh%252F%26tit=Logo%2Bof%2BJackson%2BSales%2BCo.%252C%2BFort%2BWayne%252C%2BInd.%26sigr=11jseo7e1%26sigi=11gundrgq%26sigb=11ktbnhqa%26sigh=118o4c05e


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4 Eras in Marketing

3. MARKETING ERA:–"The consumer is king! Find a need & fill it!”

–Early 1950's to early 1990’s

• Emergence of the Marketing Concept• *CONSUMER ORIENTATION


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4 Eras in Marketing

• 4. RELATIONSHIP MARKETING

–Long-term, value added relationships developed over time with customers and suppliers

–Strategic Alliances


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5 Types of NontraditionalMarketing

1. Person Marketing– To cultivate attention, interest, & preference of

a target market toward a person

2. Place Marketing– Attract visitors to a particular area

3. Cause Marketing– Identification & marketing of a social issue,

cause, or idea to selected target markets

4. Event Marketing– Marketing of sporting, cultural, & charitable activities

to selected target marketsEx. Visa & Olympics

5. Organizational Marketing– Seek to influence others to accept the goods of,

receive the services of, or contribute in someway to an organization


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ELEMENTS OF AMARKETING STRATEGY

1. The Target Market2. The Marketing Mix Variables (4Ps)

Once target market is chosen, how these variables are mixed determines the success of marketing.

A. ProductB. PricingC. Place (Distribution)D. Promotion


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ELEMENTS OF AMARKETING STRATEGY

3. THE MARKETING ENVIRONMENT• The marketing environment is important because it provides a

framework for all marketing activity.

– 5 Forces1. COMPETITION2. POLITICAL-LEGAL3. ECONOMIC4. TECHNOLOGICAL5. SOCIAL-CULTURAL


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Strategic Alliances & Marketing Costs

• Strategic Alliances• Partnership that creates competitive advantages e.g. Delta

and Disney

• Marketing Costs• Creating time, place and ownership utility costs• Most estimate that marketing costs are 40-60% of all overall

product costs


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Role of Relationships

Personal relationships and connections are keys to successful business. Emphasize harmony rather than conflict


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Planning is Important!


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Making Contacts: Some Important Programs

• U.S. Commercial Service• International Partner Search (IPS)• Gold Key Service

• State Sponsored International Trade Agencies• Foreign Trade Promotion Agencies and

Embassies.


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Initiating / Nurturing the Relationship

All successful relationships are built on understanding, trust, confidence, mutual respect, and on achieving a positive image / reputation. Business relationships are no exception.

The need to nurture and develop such relationships become more crucial when we are dealing with a foreign entity that may differ from us in their business and social practices, cultures, habits, etc.

Generally, successful firms are the ones that extend themselves in building positive and lasting relationships with partners and customers.


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Initiating / Nurturing the Relationship

To achieve successful relationships, businesses must:

Initiate the appropriate contacts. Learn to properly respond to inquiries. Learn as much as possible about their potential foreign

customers/partners, especially their business practices. Work assiduously on nurturing the relationship once it has been

established.


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Responding to Inquiries• Many successful exporters first started their international business

by responding to an inquiry from a foreign firm.

• Do not judge the foreign firm by American standards of presentation or from grammatical or typographical errors in their correspondence.

• Establish reliability by responding promptly, completely, clearly and courteously. Provide an adequate introduction to the firm, to its products/services, and to its policy on exports (cost, terms, delivery). Also provide reputable bank and other references.

• Send your response by airmail, with copies by fax and/or e-mail.


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Learning About Potential Clients

• What You Need To KnowA description of their company

Their business reputation

Their credit rating

Their business practices

Their culture


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Learning About Potential Clients

• Sources of information on Potential Partner

The commercial sections of foreign embassies and consulates have directories of firms.

Credit reports on foreign companies are available from many private sector sources as well as from the U.S. Foreign Commercial Service.

International bankers have access to vast amounts of information on foreign firms and are usually willing to assist corporate customers.

Several publications in the library list and qualify international firms. They also house many regional and country directories.


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Nurturing the Relationship• Maintaining Contact

Once a relationship has been established it is important that it be nurtured and maintained.

A foreign contact should be treated and served as well as a domestic contact. Communication should be maintained by regular visits, mail or telephone contact.

• Credibility Keep promises and win the trust of your customer. The biggest complaint from foreign importers about U.S. suppliers is failure to

ship as promised. A first order is particularly important because it shapes the image formed of the

firm as either dependable or undependable.


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Nurturing the Partnership

• Social Practices Try your best not to disrespect or offend your foreign customer. Be polite and courteous. Be friendly, but avoid undue familiarity or slang.

• Correspondence Be wary of very brief letters. Some overseas firms view the usual brief U.S. business

letter as lacking in courtesy. Personally sign all letters. Form letters should be avoided as far as possible.


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Developing Your Image Using Promotional Tools

• Proper promotion of one’s company and products/services is absolutely important to initiating/developing meaningful and lasting business relationships and to gaining a market.

• It’s difficult to succeed if potential business partners and customers don’t have some positive image about who you are or what you represent. Promotion can give you both the needed visibility and impact, even with a limited budget.

• There are several avenues available for meeting this requirement. Among the most effective are the Worldwide Web, Satellite conferences, and Targeted Overseas Promotion.


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Using Promotional Tools – Worldwide Web

• The Global image you have created for your company and products is major key to building solid and lasting business relationships.

• This image can be crafted globally by advertising on the Internet, where you can potentially be seen by almost anyone in the world.

• You can design your company website as a virtual company/product catalog, with text, images, price sheets, order forms, etc., and program it to respond with follow-up letters or invoices.

• You should link your company to as many reputable search engines and trade sites as possible.

• Web-page set-up costs are fairly low.


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Using Promotional Tools – Satellite Conferences

In a rapidly changing technological environment, satellite-delivered conferences allow companies to access and share live information about their company and products/services with foreign companies and agents.

Companies can also be served by discussions/negotiations based around live video conferences. These services are offered by the U.S. Commercial Service and many other state sponsored agencies.

Live conferences can motivate businesses by helping initiate and build relationships, as well as identifying business opportunities, all at a reasonable cost.


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Using Promotional Tools – Targeted Overseas Promotion

• Overseas Trade Shows Nothing beats show and high quality impact You gain immediate access to hundreds or thousands of potential prospects at once.

• Overseas Trade Missions Traveling with a group can lend impact to your visit, since an “official delegation” has more

prestige. You are usually assured red carpet treatment and personalized matchmaking assistance.

• Personal Overseas Business Trips Face to face promotion can be persuasive. To facilitate your time schedule, individual trips can be organized for you to meet with

specific companies, groups, and organizations.


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Types of Relationships

• 2 Main types of relationships– Direct Your client is selling and has some physical presence

in the market.– Indirect

The client’s presence in the market is based on another entity or person.


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Teams or Teaming

• Means forming a mutually beneficial relationship to achieve a desired end. Teaming can encompass several different forms of other types of relationships including manufacturer-supplier, contractor-sub-contractor or manufacturer-vendor.


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Partners

• Distributors should be thought as long-term partners. It’s where the the U.S firm appoints an independent party in a foreign country who purchases its products and resells them to users or other parties.


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Partners

• Marketing Representative: A company appoints an independent party to act as its marketing representative. This representative can’t legally bind the company it has to send contracts and agreements back to U.S. for execution and approval.


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Partners

• Licensing/Franchising: U.S. firm grants independent part right to use proprietary intangible assets such as trade secrets, copyrights, trademarks, patents, data, business system, etc.


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Partners

• Agent: A parent or sponsoring company appoints an independent party in foreign country to act as its legal representative in selling products or services; an agent can negotiate on behalf of the parent company and legally bind parent to agreements.


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Cultural Adaptations

• Before Business; Chat• Build a Win-Win Relationship• Show Formality Until Cued• Avoid political conversations• Meal etiquette

building global business relationships - dr. said el mansour cherkaoui;

Small Business & Entrepreneurship