教學(xué)課件-國(guó)際商務(wù)洽談口語(yǔ)教程

UnitOneBuildingBusinessRelationInthisunit,wewilllearnTheindustryandthemarketdifferentkindsofbusinessrelationfrommarketingperspectivehowtobuildtherelationTheIndustry:TheProblemsToomanybanksToomuchcompetitionLimitednumberofservicecountersandoutletsLimitedbusinesshoursIncreasedcostsHardtoretainoldcustomersHardtoattractnewcustomersTheIndustry:TheNeedToextendbusinesshoursToprovidemoreconveniencetocustomersThesulutions:-ATMs-Otherself-servicebankingterminals-Phonebanking-Internetbanking,etcBusinessrelationfromMarketingPerspective4PsofMarketingProductsPricePromotionPlace(DistributionChannels)InUnitOne,we’lltakealookathowaproductisdistributedDistributionChannels

forBusinessMarketDirectselling Manufacturer---------------EndUsers

Advantages(tomanufacturer):Nointermediatecost,highprofitDisadvantages(Tomanufacturer)HardtobegoodatbothmarketingandmanufacturingExamples:Dell,Olivetti(IT)DistributionChannels

forBusinessMarketIndirectSellingorSellingthroughIntermediaries Manufacturer---Distributors-----EndUsers

Advantages(tomanufacturer):FocusonmanufacturingGooduseoftheagent’sexperienceandresourcesDisadvantages(Tomanufacturer)intermediatecost,lowerprofitExamples:IBM,Microsoft(IT) Volkswagen(cardealers)DistributionChannels

forBusinessMarketSellingthroughIntermediariesTwochoices:Exclusiveagent(Soleagent)Non-exclusiveagentsSellingthroughExclusiveAgentTheonlyagentappointedforagiventerritoryLimitedtothesellingoftheappointedproductsnotallowedtosellothercompetingproductsmustachievehighergivensalestargetmorebenefits(profitmargins)butnoreobligationsSellingthroughExclusiveAgentToVendors:HighexpectationTheagentishighlymotivatedasitoffersmoreprofitHighriskIncasetheagentisnotperformingTosoleagent:EasedcompetitiononlyneedstocompetewithotherbrandsIncreasedsalesIncreasedprofitSellingthroughnon-exclusiveagentsManynon-exclusiveagentsinagiventerritoryFreedomtosellanyotherproductsNormallynogivensalestargetLessprofitmarginscomparedtoexclusiveSellingthroughnon-exclusiveagentsTovendorsLowexpectationAgentsarelessmotivatedthanexclusiveLowriskssomeagentsmayperformwellwhileothersdon’tToagentsHighcompetitionneedtocompetewithagentsofthesamebrandandotherbrandsLowsalesLowprofitmarginsMajorconsiderationswhenappointinganagentReliabilityandfinancialstrengthoftheagenttobeappointed paymentdelays?—anindicationMarketconnectionsandeffectivenessoftheirsalesnetwork Howmanyregionaloffices?howmanysalespeople?clientrelation?Exsitinginstallations?Theirtechnicalcapabilitytohandletheproductstobemarketed EngineersandtechnicalpeopleDistributionChannels

forConsumermarketManufacturer(Supplier)-------Wholesalers----Retailers----Consumers

Manufacturer(Supplier)-------Retailers----ConsumersWalmart(largestretailer)Notes:Inconsumerorretailmarket,weusuallyuseretailersorwholesalersinsteadofdistributors,oragentsforintermediaries.ChannelstofindpartnersByReferralFriendsBanksChamberofCommerceCommercialCounsellor’sofficeByyourselfAds,WebsitesTradeshowsCaseStudy:TheDistributionChannelManufacturer:SigmaDistributororAgent:NOBSEndusers:CommercialBanksinChinaTimePeriod:1996~1998NOBS:CompanyProfileSystemsIntegratorforbankingindustryDistrubutors(non-exclusive)ofmajorITvendorslikeNCR,SiemensNixdorf,IBMHK-based(headofficeinHK)ThreeofficesinthemainlandGoodrelationwithmajorbanksinChinaStrongsystemsintegrationcapabilityNOBS:TheProblemsFacingtwomuchcompetitionfromotherdistributorsorsystemsintegratorsintheindustryReducedsalesReducedprofitmarginNOBS:TheNeedAvoidstrongcompetitionIncreasesalesIncreaseprofitmarginOneofthesolutions:exclusiveagentSigma:CompanyProfileItalianmanufacturersofautomaticbankingproductsSmallcomparedtolargeATMvendorslikeNCR,DielbodandSiemensNixdorfProducts:ATM,Kiosk,etcStrongpresenceinItalySomeinstallationsinEuropeNopresenceinChina(abigrisingmarket)Sigma:TheNeedWanttoexpandtomoreoverseasmarketsLimitedphysicalandfinancialresourcesDependonagentsanddistributorsinforeignmarketsDiscussion:IdentifysomekeyfactorscontributingtosuccessinacquiringthesoleagencyTheagent’sstrengthFinancialstrengthMarketconnectionTechnicalcapabilityReferralThevendor’sweaknessesandneedLimitedglobalstrengthQuickglobalmarketaccessUnit2CreatingeffectivepromotionstrategiesPromotionMixTopromoteyourproducts,amarketingspecialistshouldspecifyhowmuchattentiontopaytoeachofthefoursubcategories(Advertising,PersonalSelling,SalesPromotionandPublicRelation)howmuchmoneytobudgetforeachMajorconsideration:costs&effectivenessPromotionMixApromotionalplancanhavedifferentobjectives:SalesincreasesspecialdiscountsformoresalesNewproductacceptancefreesamplesCreationofcorporateimageadvertisingbrandonlyPositioningpricedhigherorlowerthanacompetingproductAdvertisingMoresuitableforfollowingcircumstances:ConsumerproductsAlargenumberofconsumersLowvalueorlowpriceLowtech&lowcomplexityExamples:food,cosmetics,clothing,homeappliancesAdvertisingBudgetBudgeting:PredicthowmuchnomeyyouneedforadvertsingfornextyearMakeareportHowmuchcanyourcompanyallocateforthepurposeWhatkindsofmediadoyouchooseTV,Newspaper,Sportsevents?etcPersonalSellingPersonalsellingoccurswhereanindividualsalespersonsellsaproduct,serviceorsolutiontoaclient.Moresuitableforfollowingcircumstances:Hi-techproducts,HighcomplexityHi-valueproductsFacetofacecommunicationUserrequirementsandsolutionStrongclientrelationExamples:ATMs,Machinery,Largecomputersystems,….PersonalsellingWhatisyourtargetsales?Whatresourcesdoyouneedtomeetthesalestarget?Howdoyoupredictthemarket?Howmanysalesrepsdoyouneed?Howbigistheterritoryforeachsalesrep?Howmanyregionalofficesdoyouneed?SalesPromotionSalespromotionmayinclude:CouponsticketordocumentthatcanbeexchangedforafinancialdiscountorrebatewhenpurchasingaproductFreesamplesBuyone-get-onefreepackageBonuspointsanextraamountofmoneydesignedtoencouragemorespendingTradeshowsorexhibitionsmaybeplacedunderanotherpromotionsub-categoryPublicRelationPrimaryrole:apositivepublicimageofthecompanyAthirdpartyadvertisingmoreconvincingthantradtionaladvertisingLowercostsAnotherrole:crisishandlingSamlumilksandal(2008)ShuanghuiLeanmeatpowder(2011)ImportanceofDifferentPromotiontoolsforconsumerproductsOnepromotiontoolmaybemoreimportantthananother:>>>>>>>>>>>>>Advertising>>>>>>>>>SalesPromotion>>>>>>PersonalSelling>>>>PublicRelation>>>>>>>>>>>>>>>>ImportanceImportanceofdifferentpromotiontoolsforIndustrialproducts>>>>>>>>>>>>PersonalSelling>>>>>>>>>SalesPromotion>>>>>>>Advertising>>>>>PublicRelation>>>>>>>>>>>>>>ImportanceCaseStudy:SiemensNixdorfChinaBankingSystemsPromotionBudgetforFY2000(inyuan)5MforPersonalselling(salary,travelexpenses,entertainment,etc):10salespeople,4marketingspecialists3Myuanfortradeshow:a100squaremeterexhibitionareaforthethree-dayCIFTEE1MforAdvertisingatafewprofessionalmagazinesornewspaper(ComputerWorld,FinancialDaily)0.5MforPRgifts,entertainments,etcIdentifysomepromotiontooksusedbyfollowingMcDonald’scouponsYonghuiSupermarketbonuspointstobeexchangedforgiftsspecialdiscountsWalmartBuy-one-getonefreepackagedailydiscountsTradeshows:CIFTTEEvsCantonFair.WhichissuitableforKiosks?

TheproductsTheexhibitorsTheparticipantsCIFTEECantonFairBanking ConsumerIndustrialITvendorsNon_ITvendorsBanksOthersUnit3OrganizingasalestrainingeventObjectivesofSalesTrainingtohelpthesalespeopleunderstandNewproducts:

what’sthenewproducthere?Sellingpoints

What’rethesellingpointsofthekiosk?ThecompetitorsThetargetmarketcustomerbuyingbehaviorshowtogenerategoodsalesresultsetcSchedulingAskillusedtomakeaplanonhowtomeetoneormoretargets.Whenschedulingatraingprogram,it’snecessoryTotakeintoaccountthefollowingsWhoshouldattendthetrainingWhowillbeinvitedastrainerorspeekerWhattopicswillbecoveredHowlongitwilltakeetcConsumerBehaviorThestudyofhowindividuals,groupsandorganizationsselect,andbuysothatthemarketerscandesignmarketingprogramstoproviderightproductsandservicestosatisfytheirwantsandneeds.Characteristics:ConsumerMarketInconsumermarket,alargepercentageofpurchasedecisionsaremadebyasinglepersonSometimes,achildmayinfluenceaparenttobuyandacouplemaydecidetogethertobuyahouseorcarLowpricedgoods………..TheFiveStageModelofConsumerBuyingDecisionProcess:

1Needrecognition認(rèn)識(shí)需求2InformationSearch收集信息3Evaluationofalternatives品牌評(píng)估4PurchaseDecision購(gòu)買決策5Postpurchasebevavior購(gòu)后評(píng)價(jià)與行動(dòng)Question:thinkabouthowyouboughtyourmobilephone

WhyshouldweknowthefivestagemodelYoucanknowwhetherthecustomerreallywanttobuyDoesthecustomerwantstobuyfromyouWillthecustomerbuynoworlaterWhichstageisthecustomerin?1.Acustomerwentintoamobilephonestore.“CanIhelpyou?”saidthesalesperson.“Nothanks,justtakealook”,heansweredandwentaway.2.Acustomerwentintoamobilephonestore,andasked“howmuchdoesitcost”?And“Canyougivememorediscount?”Factorsinfluencingconsumer’sbuyingdecisionmakingCulturalfactorscountries,socialclasses,racialgroups,religionsSocialfactorsfamilies,friends,neighbors,professionalgroups…Personalfactorspersonalcharacteristics,incl.buyer’sages,education,occupation,persanlity,economiccircumstances,…Thesewillhelpyouknowmoreaboutyourcustomerandhowhe/herwillmakethedecision2009ToyotaYaris,a5-door,orhatchbackcar(兩廂車inChina)Doyoulikethiscar?Why?What’syourage?Another5doorcar(兩廂車)

HondaAccord,asedan

(三廂轎車inChina)Whowilllikethiscar?CulturalfactorsindifferentcountriesovercarsCarsareclassifieddifferentlydependingonthebodystyleofthecar.5doorandsedanarethetwomostwidelyavailabletypesinthemarket.

Othertypesincludecoupe,MPV,SUV,van/minivan,convertibleandsoon.WhydoyoulikeSedan?IlikeitbecauseitlooksFormalBigLuxuaryMatureOthersWhydoyoulikehatchback?Ilikea5doorcarbecauseitlooksYoungDynamicCuteColorfulEasytoparkOthersWhichwouldbegoodforyourfartherorpeopleofhisage,sedanorhatchback?SedanisgoodforPeoplelikemyfatherbecause….….….Hatchbackcarisgoodforpeoplelikemyfatherbecause….…….

WhydoChinesepeoplelikeSedan?Tenyearsago,almostallcarsinChinaweresedan.Today,weseemore5doorcarsinChina.InGermany,19carsoutof20are5door,saidaChinesetravelerwhovisitedthecountry.Characteristics:BusinessMarketInbusinessmarket,purchasedecisionsareusuallymadebyanumberofpeople,butareoftenmadebyonepersoninsmallcompaniesClosesuppliercustomerrelationProfessionalpurchasingHigh-pricedLongertimefordecisiontobemade…………8StagesinbusinessbuyingprocessProblemrecognization認(rèn)識(shí)需要GeneralNeeddescription確定需要Productspecification說(shuō)明需要Suppliersearch尋求供應(yīng)商Proposalsolicitation征求供應(yīng)信息Supplierselection選擇供應(yīng)商Orderrutinespecification發(fā)出正式訂單Performancereview績(jī)效評(píng)價(jià)WhyshouldweknowtheeightstagemodelYoucanknowwhetherthecustomerreallywanttobuyDoesthecustomerwantstobuyfromyouWillthecustomerbuynoworlater--Askwhichstagetheyarein?--Asuccessfulcasewillundergoalltheeightstages,whileunsuccessfulwillnotHowdoyouknowwhenthecustomerwillbuy?Somequestionswhichmayhelpyouunderstandwhentheywillbuy:DoyouneedthekioskorATMs?Whatdeliverydatedoyouexpect?Haveyouworkedoutabudgetforthekiosk?Isitincludedinyourbudget?UnderstandingthedifferenceWhat’sthedifferenceinbuyingprocessbetweenconsumergoodsandindustrialgoods?NumberofstagesComplexityFormalorinformalFactorsaffectingbuyingdecisionmakinginbusinessmarketEnvironmentalFactorsGlobaleconomy,capitals,market…OrganisationfactorsGoals,purchasesystem,……..BuyingcenterfactorsThoseinvolvedinbuyingdecisionmakingIndividualfactorsdecidersandapprovalsThebuyingcenter:SpecifypeopleinthebuyingcenterinabankInitiator

PeoplewhorequestthatsthbepurchasedUsers

ThosewhousetheproductorserviceInfluencers

ThosewhoinfluencethebuyingdecisionDeciders

ThosewhodecideinproductrequirementsoronsuppliersApprovers

PeoplewhoauthorizetheproposedactionsofdecidersorbuyersBuyers

ThosewhohaveauthoritytoselectthesuppliersGatekeepers

ThosewhohavethepowertopreventsellerfromreachingmembersofthebuyingcenterWhyisbuying-decision-makingmorecomplicatedinbusinessmarketthaninconsumermarket?Specifythereasons:Long,professional,strictlyregulatedprocessLargerquantityororderMoremoneyinvolvedBuyingdecisionismadebyagroupofpeople…………….Unit4MeetingtheClientsWhydoyouneedtomeetClients:Face-to-facecommunicationcanhelpyouinvestigatetheneedsofyourclientsExplaincomplicatedtechnologytoyourclientsDeliverrightsolutiontosolvetheirproblemsEnhanceclientrelationshipTradenegotiationTradenegotiationiscomposedofTechnicalNegotiationThesystemsoftheclientsTheirtechnicalrequirementsHowcouldyourproductcatertotheirneedsCommercialNegotiationPriceTermsofpaymentHowcouldthegoodsbedeliveredWhattodowhenmeetingclientGivethemabrochureApricesheetFindouttheirbusinessneedsandtechnicalrequirementsTheirbudget,andpurchaseplanPrepareasolutionthatcanmeettheirneedsOfferandcounter-offer:Technical,andCommercialnegotiationlikepriceandothertradetermsSalesskillsGivethemsomeinformationandgettheirfeedback(1stfieldtrip)Givethemsomemoreinformationandgetmorefeedback(2rdfieldtrip)SolutionsalesratherthanproductsalesBringotherpeopleresourcestokeeppushing,andmovingaheadSampleNon-FirmOffer(Letter)Dearsirs,

WethankyouforyourletterofJuly10,1998andhavepleasureinofferingyouthefollowing:

Commodity:embroidered（繡花的）satin（綢緞）mini（迷你）skirts.

Quantity:10000dozens.Price:$50perdozenCFRNewYork.

Packing:insee-throughplasticbags.

Shipment:inAugust1998.

Payment:byirrevocableL/C,payablebydraftatsight.

Thisofferissubjecttoourconfirmation.Ifyoufinditacceptable,letushaveyourreplyassoonaspossible.

Yoursfaithfully,SampleFirmOfferDearSirs,

Weconfirmyourfaxof18thofthispresentmonth,AskingustomakeyoufirmoffersforbothgroundnutsandWalnutmeatCFRAmsterdam.Wefaxedbackthismorning,offeringyou360metrictonsShandonggroundnuts,hand-packed(人工摘取的),shelledandungradedatRMB1800permetricton,CFRAmsterdamoranyotherEuropeanMainportforshipmentduringJuly/August,1998.Thisofferisfirm,subjectto（――有效）yourreplyreachinguswithinoneweek.Wewishtopointoutthatthisisthebestpricewecanquoteandthatweareunabletoentertain(接受)anycounteroffers.

Yoursfaithfully,QuotationAlsoknownaslistpriceorpricelistBreakdownpriceDiscount(option)Othernon-pricetermssuchasPricingandproductlifecycleMarketingdept.shouldsetrightpricingstrategiesaccordingtothechangingmarket.Pricechangeswiththechangingofthelifecyclestages.Rightpricecanhelpthecompanycreateahigherprofitmargin.Witharightprice,theproductcanstaycompetitive.CommonPricingStrategiesSkimmingPricingStrategy:Pricehighestwhentheproductisnewlylaunchedastherearenoorfewcompetition.PenetrationPricingStrategy:ReducepricewithincreasingcompetitionafterthepriductislaunchedforsometimePricingandpositioningWithcompetingwitharival,wecanpricehigherorloweraccordingtoyourpositioningMarketleaderpricingPricehigherifyourarethemarketleader.Follow-the-leaderpricingPricelowerifyourrivalisthemarketleaderCustomervaluesMarketersneedtoFindoutwhatmotivatecustomerstobuyKnowhowtocommunicateandcapturecustomervalue.Understandthatcustomerswon’tbuyunlesstheyfeeltheygetvalueforthemoneyUnderstandthatcapturingcustomervaluecanhelpavoidpricecutCustomerValueDifferentcustomersmayhavedifferentValue.QualityfunctionsBetterserviceBrandpowerLoweroperatingcostsCorporateimage(beingthefirst)Unit5EntertainingClientsWhyentertainingclientsThenatureofpersonalselling

Goodproductandtechnologyarenotenough.CliententertainingisanimportantpartofpersonalsellinginbusinessmarketEntertainmenthelpsbuildadeeperrelationshipwithyourclients

It’seasiertogetclosetoeachotherandmakefriendsoutofworkplaceIttakestimetobuildrelation

Trytoentertainyourclientseachtimeyoumeetthem

Seller-BuyerRelationshipBuyersalsoneedtobuildstrongrelationshipswiththeirsupplierstostayaheadofcompetition.BuyersaredependentontherelationshipstheyhavewiththeirsuppliersandaredemandingthattheyadheretohighstandardsTheestablishment,development,andmaintenanceofrelationshipsbetweenexchangepartnersiscrucialtoachievingsuccess

Sources:Parsons,AmyL.Whatdeterminesbuyer-sellerrelationshipquality?Aninvestigationfromthebuyer'sperspective.JournalofSupplyChainManagementArticledate:March22,2002PersonalsellingprocessProspecting Prospectingreferstoidentifyinganddevelopingalistofpotentialclients.Pre-approach

analyzealltheinfoavailableaboutaprospecttounderstandasmuchabouttheprospectaspossibleApproachtheactualcontactthesalesprofessionalhaswiththeprospect.PersonalsellingprocessMakingthePresentationsalesprofessionaltellsthatproduct"story"inawaythatspeaksdirectlytotheidentifiedneedsandwantsoftheprospectOvercomingObjectionsseekoutprospects'objectionsinordertotrytoaddressandovercomethemPersonalsellingprocessClosingtheSale"closing"asalehappenswhenproductsorservicesaredeliveredtothecustomer'ssatisfactionandpaymentisreceivedFollow-upacriticalstepincreatingcustomersatisfactionandbuildinglong-termrelationshipswithcustomersTwokindsofrelationshipTransactionalrelationshipPricedriven,lesscostly(price,andtime),lowerskilllevelforprocurementpeopleCollaborativerelationlongterm,morecostly,controlledcompetition,improvedcontinuityofsupplySalestipsBesincerewithpeopleSellproductsorservicesthatyoubelieveinConstantlyhoneyoursalesandcommunicationsskillsFirstlistentoyourcustomer,understandhisorherwantsandneedsaskalotofquestionsandgenuinelylistentotheanswersbeforespeakingagainSalesTipsYourprospectsandcustomersarealldifferentsoyoushouldtreatthemdifferentlyThebestsalespeoplelistenmuchmorethantheytalkFindoutwhatyourprospectswantandthengiveittothemIfyoucannotgiveyourprospectswhattheywanttellthemsoandhelpthemfindwhattheyarelookingforelsewhere...HowshouldIentertainaclient

wheninvitinghimtoadinnerFirstthingtodoisask-Doyouevergooutfordinner?-Wherewouldyouliketogo,ordoyouhaveaafavoriterestaurant?SecondthingtodoisfindoutwhattheirexpectationsareintermsofthepriceIfitanaffordableone,maybethey'reaprettyrelaxedcharacterandyouknowyou'resortofafriend.Ifit'saveryformalexpensiverestaurant,therelationshipisn'tyetasinformalasyouthinkitis

ButHow?ThreestagesofclientrelationdevelopmentEstablishmentofclientrelationImprovementofclientrelationMaintenanceofclientrelationCross-CulturalCommunicationAmericans:Aggressive,Interest- drivenStrategy:findcommoninterestsJapanese:Reserved,Low-key,Trust-dependentStrategy:Don’tbetooaggressive, Patient,buildtrustfirst

Cross-CulturalCommunicationShanghaiBusinessmen:Smart,detail-oriented,fairStrategy:smarterthantheyareCantonese:MoneymattersStragety:OpportunityformoneyNortheasterners:Frank,LoyaltofriendsStrategy:befriend,gooddrinkerClients’PersonalTraitsCreativeclientsopen-minded,innovative,braveStrategy:offersthnewConservativeclientsUnwillingtoacceptchanges,followers,Strategy:patient,reducingrisksUnit6NegotiatingPaymentTermsWarm-upHowdoyoupaywhenyougoshoppingatalocalstore?Forexample,whenyoubuyamobilephoneset?CanyoupaythesamewayifyoubuythekioskfromSigma?Why?Howcanwesolvetheproblem?MajorconcernswithpaymentinglobaltradeRiskcontrolGlobaltradeisfulloffinancialrisksCostsSomepaymentlikeL/CissafebutcostlyBalancebetweensalesandrisksGoodbalancecouldboostsaleswhilereducingrisksatatolerablelevelRemittance匯款MailTransfer(M/T):信匯transferredbymail

Thebuyerhandsoverthepaymenttoremittingbankthatwillauthorizethebankintheseller'scountrybymailtomakethepaymenttohimTelegraphicTransfer(T/T):電匯transferredbytelegraphicmeans moreexpensivebutmuchfasterthanM/TCaution:Fastbutriskytothebuyer forpaymentinadvanceWhentouse?Facilitatingsales butriskcontrolRemittance:RiskControlThebuyerneedstotakecontroloftheriskOftenusedforasmallorderAlargesumofremittanceisriskytothebuyerAlsousedasadownpaymentofalargerorderDownpaymentisapartofthewholepaymentCollection:D/AD/A:DeliveryagainstAcceptance

(承兌交單)Thesellershipsthegoodsfirstalongwithadraftwhichspecifiesdateforthebuyertopay.Thenthebuyercantakethegoodsfirstwithapromisethathewillpaywhenitisdue.Ifhefailstokeephispromise,thesellerwillnotgetthepayment.

(Draft,awrittenorderdirectingthepaymentofmoneyfromanaccount.) So,D/Ahasnoprotectiontothe exporter.Collection:D/PD/P:DeliveryagainstPayment（付款交單）TheselleralsohastoshipthegoodsfirstButhehastopaybeforetakinggoodsIfthebuyerfailstopay,itiscostlytogetthegoodsbackfromanothercountry.So,D/Pofferslimitedprotectiontotheseller.Collection:RiskControlThesellerhastotakecontroloftheRisksbyKeepingtheordersmallerAppointinganoverseastradeagentTheagentcanhelphandleanyproblemsSettinguptheirownofficeintheoverseascountryWhydoweneedL/C?

(1/2)Equalprotectiontoboth: Thebankusesitscredit(orreputation)toguaranteethepaymentThebuyerisprotectedagainstnon-shipmentorlate

shipment WithL/C,thebuyerdoesn’thavetopayinadvance.Thebankpromisesthatthebuyerwillnothavetopayuntilhereceivesthedocumentsofthegoods.WhydoweneedL/C?(2/2)Thesellerisprotectedagainstnon-payment. Thesellercangetthepaymentbeforethegoodsareshippedout.ThebankpromisesthatthesellerwillbepaidifhecanprovidethedocumentstomeetallthetermsandconditionsoftheL/C.AlthoughL/Cisexpensive,itisstillthemostfrequentlyusedmethodofpaymentininternationaltrade.

BuyerChinaSellerItaly

PayingbankIssuingBankAdvisingbankNegotiatingBank2.AppliestobanktoopenL/CInfavorofseller3.SendsL/CBySWIFT

4.ChecksL/C’sauthenticityandInformsSeller1.SignthecontractL/Cforpayment5.ChecksL/CagainstcontracttoseeIfamendmentneeded?6.Preparesshipment&getalldocuments7.Presentsshippingdocumentstonegotiatingbanktogetpayment8.Forwardsdocumenttopayingbank,askingforpayingbank9.Checksdocumentandreimbursesnegotiatingbank10.Debitsbuyer&releasesdocumenttobuyerL/CFlowChart11.ClaimscargofromcarrieratdestinationContentofL/CDefinitionoftheL/CSpecificationsofthegoodstobeshippedShippingterms forexample,toopenL/C15or30daysbeforeshipment?Evidenceanddocumentsforpayment B/L(billoflading)，Packinglist,etc.AnyspecialrequirementsTypesofL/C

1)BytimeSightL/C:payingagainstshippingdocumentsTimeL/C:(L/Caftersight) forexample,30day,45day,or60dayL/CaftersightWhytimeL/C?ValidityofanL/C:fromdateofopeningtodateofexpiry2)Byfunctions:IrrevocableL/C:

secureforsellersTransferableL/C:changeofownershipConfirmedL/C:protectselleragainstcountryrisks, needtopayservicechargeUnconfirmedL/C:unnecessaryforstablecountryOtherL/CsSightL/CorTimeL/CSightL/CisoftenusedforconsumergoodswhennoneedtoholdthepaymentTimeL/Cisoftenpreferredforindustrialgoods,likemachinery-itallowsthebuyertoholdthepaymentforsometime-Extratimeneededforinstalltion,testingetc.NegtiveeffectsofL/CL/CissafeforthesellerbutitcouldleadtoThebuyer’sfundsbeingtiedup-Depositrequiredbybanks-CashflowproblemIncreasedcostsforthebuyer-ManybuyersdonotlikeL/Cbecauseitcouldincreasethecosts -TheywouldaskforcollectioninsteadUnit7Packing,Shipping,Commodity&CustomsInspectionOverviewInthisunitWhat’spackingWhat’sshi