Term Project paper

A. THE MARKET PLAN

1. Defined as: written process detailing the logical ways to reach buyers

2. Steps in the Market Plan

a. State Objectives. Should include:

i. Expected sales volume

ii. Desired expansion into geographical markets

iii. Deadlines for accomplishment of objectives

iv. Plan should cover 3-5 years depending on product, competitive environment, target markets

b. Detail the specific tactics.

i. Describe promotional methods

ii. Market entry method to be used

c. Schedule of activities or action plan

i. Make list of schedule/appointments (trade shows, contacts to visit, etc.)

ii. Specific assignments of responsibility (i.e., who will be doing what)

d. Budget for the plan

i. List all marketing costs

3. Market Segmentation

Two categories of segmentation:

a. Macro segmentation

i. Broad characteristics, segmented by:

· Industry

· Geographic regions

· Language

· Cultural factors

b. Micro segmentation

i. Defines homogenous customer groups in macro segments

ii. Determines decision-making units in each group

CONTINUED

B. EXECUTING THE MARKET PLAN

Putting the plan into action

1. Personal sales

a. Direct selling – firm uses internal marketing dept

b. Indirect selling – use of middlemen (distributors, retailers, wholesalers, etc.)

c. Sources of sales leads

i. Trade shows (typically trade-based by private industry)

ii. Trade missions (typically government-organized)

iii. Seminars (extended presentations, typically trade-based)

2. Negotiation

a. Preparation – the key factor

i. Do SWOT analysis

ii. Determine role of major players (bargaining power of other party, competitors, government)

iii. Assess cultural factors (personal relations, etc)

iv. Determine time constraints for the session

v. Determine minimum/maximum acceptable limits

vi. Clarify details of final negotiations (price/costs, delivery terms, etc.)

b. Agreeing to a contract

i. Be willing to offer alternatives

ii. Consider:

· Countertrade

· Defined as: reciprocal trade requiring acceptance of goods or other instruments of trade as partial or whole payments

· Used in countries with FX problems/restrictions

· Includes

· Barter – exchange of merchandise without money

· Product buyback – seller buys back output of equipment sold to buyer

· Counterpurchase – seller agrees to buy products from foreign buyer as a condition of getting the sale.

OMIT: “Foreign Corrupt Practices Act,” “Criminal Penalties” and “Civil Penalties” (p. 49)

OMIT: From “Tips and Traps of Culture (p. 50) to “Social Organization” (p. 54)

C. THE PRACTICAL APPLICATIONS OF CULTURE

1. Generalities of culture

Common attributes across cultures

a. Avoid embarrassment to others by “saving face”.

b. Show genuine interest in the other party’s culture (don’t have a cultural superiority complex)

c. Make good first impression by

i. Proper grooming

ii. Acknowledging similarities between cultures

iii. Appropriate body language

2. Tips for Women – see list on p. 56

D. INTELLECTUAL PROPERTY RIGHTS

1. Patent registration

a. Does not extend from country to country (e.g. U.S. patent not enforceable outside of the U.S.)

b. Should register patent in each country

c. Multilateral organizations formed to facilitate registration in member countries (e.g. World Intellectual Property Organization – WIPO)

2. Types of multilateral patents

a. Community patent (a/k/a European Community patent, EC patent)

i. Proposal being discussed to have unitary patent protection in EU

ii. Deemed necessary due to high costs of translation

iii. Aims to reduce inconsistency in granting and enforcement of patents

b. European Patent Convention (1973)

i. Multilateral treaty establishing the European Patent Organization (1977)

ii. Enables filing of patents in a harmonized system via European Patent Office.

iii. Enforceable in member countries

iv. Includes all members of EU, plus others but is not part of the EU.

CONTINUED

D. INTELLECTUAL PROPERTY RIGHTS (continued)

2. Types of multilateral patents (continued)

c. Patent Cooperation Treaty (PCT) (1970)

i. Provides unified procedure to file patent applications to protect IPRs internationally

ii. 151 Contracting states (i.e., member states)

iii. Established/administered through the WIPO.

iv. Allows for a single international search through various patent offices/agencies

v. Does not result in international patent

d. Trademark Registration

i. Typically less costly than patent registration

ii. Some international agreements include:

· International Convention for the Protection of Industrial Property (e.g. Paris Union/Paris Convention)

· Madrid Arrangement for International Registration of Trademarks (a/k/a Madrid Agreement Concerning International Registration of Marks)

3. World Intellectual Property Organization – WIPO (established 1967)

a. Features/functions of WIPO

i. A U.N. agency set up to stimulate creativity and innovation through international intellectual property protection

ii. 191 Member states

iii. Administers multilateral IP treaties

iv. Assists governments and organizations in developing IP strategies and regulatory frameworks.

OMIT: From “COMMUNICATIONS” p. 61 to end of chapter.