EXPORT PROMOTIONS

Lesson 7
Learning Objectives
At the end of this section, the students will be able to:
1. Explain the importance of product promotion in exporting
2. Determine the appropriate promotional method to reach particular consumers
3. List advantages of trade fairs and exhibitions
4. Describe the ways to effectively participate in trade fairs
Export promotions
• Many Filipino entrepreneurs indulge in promotional activities as a means of
making their products and companies known and, consequently, accepted in the
market. Gone are the days when they would not even consider product promotion
since it is perceived to be very expensive especially at the global level. At present,
most exporters are conscious of the importance and benefits of product
promotion which for them outweigh the cost to be incurred.
• This section underlines the importance of product promotion. It aims to discuss
the various promotional methods and outline the strategies most appropriate and
cost-effective in the international market.
Promotional Methods
• The International Trade Center’s Handbook on Prompting and Responding to Sales
Inquiries: A Task of the Business Management System (2005) lists the following as
effective promotional methods in attracting foreign buyers:
1. Advertising. This consists of visual and verbal messages that aim to perform and
persuade consumers to buy products or services. Advertising comes in various
forms and means categorized as suitable for reaching either the end-consumers
or trade buyers.
Advertising tools for reaching consumers and trade buyers
Target audience Tools
Consumers Television
Radio
Daily newspapers
Consumer magazines
Posters
Outdoor billboards
Road and railway transportations
Programs (sports, theater, etc.)
Trade buyers Trade newspapers and magazines
Inserts in magazines and packages
Buyers’ guides
Associations’ and chambers’ magazines
• It is important to remember that advertising is totally useless if not targeted
properly. One must be sure of the market segment he/she is aiming at.
Consequently, a seller must place advertisement in media through which this
market segment can be reached.
2. Public relations. Simply called “PR,” this is 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.
3. Sales promotion. As stated earlier, this 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. The types of sales promotion commonly
undertaken by Filipino export entrepreneurs come in different forms such as:
• Promotional materials like brochures, leaflets, catalogs, price lists, etc.
• Visual merchandising like showrooms, store and window displays, and special
events like trade fairs, selling missions, etc.
• Product samples
4. Direct mail. A targeted direct mail campaign can also be very effective. 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 message. Include news about your company, such as a
new product/service or a successful project to bid, to introduce your campaign.
5. Media. 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.
6. Personal visits. Personal contact with potential clients is perhaps the best means of
promotion. Many cultures value personal contact in their business relationships, and attention
to cultural issue often impresses foreign business contacts.
7. Trade missions/shows. Attending or participating in international trade shows is an excellent
way to promote a product or service. It allows an entrepreneur to check out the competition and
conduct market research. If it is difficult for a company to take part in a trade event, teaming up
with other companies or joining a group delegation or exhibit may be conducted.
Promotional materials
Promotional materials refer to printed materials that describe goods or services provided by your
company. It is specifically geared to the sales or promotion of the products or services you offer.
Well-designed promotional materials are effective means of creating strong product identify and
profitable businesses.
Such materials include the following:
• Brochures
• Catalogs
• Leaflets/mailshots
• Visual ads like slide kits and demonstration kits
• Drawings ad other specifications
• Price lists
These promotional materials aim to:
• Obtain buyer’s reaction to your product range
• Promote existing sales of your product in the market
• Obtain orders
• Target potential customers and other foreign buyers
• Introduce additional product ranges to buyers
• Help your agents/salespeople introduce your products to the market
Preparation of promotional materials
• Production of promotional materials is not an easy task. It requires a detailed
understanding of your company, your product, and other facts. The tabulated data
are critical in attaining the promotional material’s main objective which is to
present your product in an informative, interesting and professional manner,
leading to its acceptance and sales in the market. Of course, the type of goods you
produce and the size of your company will dictate the kind of promotional
material you need – whether a simple one-page leaflet or an expensive full-color
brochure.
Suggested Information in Promotional Materials
Category Data to Consider
Product Is it the main product you offer?
Is this the right product for your selected target market?
Why should customers buy your product?
Are you happy with your present mix of products? If not, how can you alter this mix?
Market Is your market local, national or international?
How big is your market?
How can you broaden your market base?
Company How do others see you?
What are you best known for? Any specialization?
Is your image staid or progressive and reliable?
Does your image accord with reality?
Company’s What are you strong at? Weak at?
strengths
Do you have the right products to promote?
Do you have the financial and human resources to continuously supply the market?
Do you have the technical expertise?
Types of promotional materials
Promotional materials may include brochures and mailshots or leaflets:
Brochures. They are an effective means of communication both for small and
medium-sized companies, as these are considered relatively cheap. They contain
detailed specifications of products offered as well as the company profile. They are
usually given to prospective customers.
Brochures can come in different forms ranging from simple to complex. These
various formats allow flexibility for altering or updating the text and other contents.
Brochures can be designed as:
• loose-leaf inserts – either spiral bound or glued systems
• Folders with pockets- can come in an ordinary bond paper
• Fold-out brochures- can be made of paper or card in the following formats: 4-page
portrait, 4-page landscape, 6-page concertina, or 6-page landscape
• Stapled/booklet type
Mailshots/leaflets. These are 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.
Other promotional materials include CD’s, catalogues, photo folios, price lists, sales literature,
drawings, specifications, and actual product samples.
Regardless of the promotional materials you choose, here are a few pointers you should
remember:
1. The promotional material should describe your company and product in a clear and
concise manner.
2. It should be printed in the language of the country where you plan to sell.
3. The paper used to be of high quality because the image of your company will be
associated with it.
4. If you plan an illustrated material, use high standard and quality photos to show you
product at its very best. If possible, hire a professional photographer. Do not accept and
use the pictures unless you are happy that they show your product to the best advantage.
 Information Checklist
Company Information Product Information
 Company name  Product description or range name
 Full company address (including the  Style/code number
country)  Size/dimension
 Telephone number and mobile number  Color
 Facsimile number  Finishes available
 E-mail address  Raw materials used
 Contact person and designation  Accessories used
 Company profile  Price list
 Profile of the founders, owners, and senior  Packaging
partners  Delivery
 Firm’s clients by name or by country  Packing specifications
 Detailed listings of product lines and  Terms of payment
merchandised handled  Conditions of sale
 Services the company can offer
 Firm’s code of practice and terms and
conditions of business
 Membership in different associations
What is a Trade Fair?
A trade fair is a gathering to select people, companies, or organizations in a venue for a
specific period with the general purpose of communicating/marketing products, goods
and services to their target clients. Trade fairs 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 fairs are of two kinds – general and specialized.
1. General or horizontal fairs. These feature a wide range of products from consumer to
industrial goods and cater to both general and trade buyers. Usually, this type of
trade fair combines the exhibition and selling activities in one roof. The Philippine
Center for International Trade and Exhibitions (PHILCITE) often organizes consumer
product fairs like the Grand China Festival where both consumer items and industrial
goods from China are exhibited and, at the same time, sold. Other regular annual
affairs include the Christmas Baratillo and the International Bazaar.
2. Specialized or vertical fairs. These concentrate on specific products of a particular
industry or association, and thus, cater only to specific buyers. Examples are the
international fairs held each year Manila such as the FAME Gift Show and the
Furniture and Furnishing Show. Other specialized fairs include the Leather goods
Fair, Packaging Fair, Motor Show, etc.
 Advantages of fairs and exhibitions
Compared with other promotional methods, trade fairs have these district advantages:
• Give exhibitors an opportunity to get an actual feel of the market and to meet their
target customers face-to-face.
• Organize an already interested and preselected customer base that would be more open
to learn about a particular product or service.
• Serve as venues to discover new and unknown products and services, as well as buyers,
distributors and suppliers.
• Provide cost- and time-saving opportunity for exhibitors to obtain a sales contact that is
not accessible through standard methods of selling.
• Afford visitors a chance to compare notes on displayed products in a relatively small
venue while walking booth-to-booth instead of mile-to-mile.
• Given these advantages, many exhibitors participate in trade fairs and exhibitions for the following
reasons:
• To generate inquiries and trade leads.
• To generate sales.
• To introduce a new product or service.
• To test and feel the market.
• To maintain company exposure in the market.
• To look for agents and distributors.
• To create a new image.
• To study competition and acquire new ideas.
• To boost morale of company employees and dealers.
Tips in Effective Trade Fair Participation
1. Choose your fairs well. Select and join fairs that will match your product and your company.
Every year, many fairs are organized in the country, both government- and private sector-
led. Get as much information from organizers regarding the following.
• name, type, and objectives of the fair
• Participation costs
• Promotions and press coverage
• Exhibit venue
• Exhibit schedule
• Organizers and their experiences
2. Book early and plan ahead.
3. Set well-defined objectives to accomplish for particular affairs.
4. Setup a budget and a working schedule. It is important to have an action schedule that
clearly identifies what is to be done by whom and by what date. A good budget and action
plan should cover the following items:
• Exhibit space
• Exhibit design
• Company personnel
• Transport
• Promotion and publicity
• Utilities and special effects
• Miscellaneous and contingents
• Exhibit construction, assembly, and disassembly
• Product sample, exhibit aides, signs and graphics
• Additional personnel services such as demonstrators, interprets, etc.
5. Make your participation in the fair a total corporate function.
6. Actively promote your exhibit before, during and after the affair.
7. Make sure your booth is properly manned at all times.
8. Follow up and evaluate.