Unit 6,7 TACN3

Documentary collection

The mode of payment in which a bank acts as an intermediary without accepting financial risk is called

Draft (Bill of exchange)

A document ordering an importer to pay an exporter a specified sum or money at a specified time is called a (an)

Letter of Credit

The mode of payment in which the importer's bank issues a document stating that the bank will pay the exporter when the exporter fulfills the terms of the document is called a (an)

Bill of Lading

A contract between the exporter and carrier that specifies destination and shipping costs of the merchandise is called a(n)

Open account

The mode of payment in which an exporter ships merchandise and later bills the importer for its value is called

Advance Payment

The mode of payment in which an importer pays an exporter for merchandise before it is shipped

Revolving letter of credit

is a letter of credit calling for renewed credit to be made available when the issuing bank informs the beneficiary that the buyer has reimbursed the issuing bank for the drafts already drawn

Back to back letter of credit

means TWO letters of credit with identical documentary requirements, except for the difference in the price as shown by the Invoice and draft

 A Standby Letter of credit

is a letter of credit that can be drawn against, but only if another business transaction is not performed. 

Advised letter of credit

is a letter of credit issued by a bank and forwarded to the beneficiary by a second bank in his area. The second bank validates the signatures and attests to the legitimacy of the first bank.

 Confirmed letter of credit

is a letter of credit issued by one bank to which a second bank adds its commitment to pay.

Revocable letter of credit

 is a letter of credit that may be canceled at any moment without prior notice to the beneficiary

Irrevocable letter of credit

is a letter of credit that cannot be canceled nor amended without agreement of all parties 

Deferred payment letter of credit

is a letter of credit under which the documents are forwarded to the importer's bank, while sight draft is presented at a later future date

Red clause letter of credit

is a letter of credit permitting the beneficiary to receive a sum prior to shipment

Transferable letter of credit

is a letter of credit that can be utilized by someone designated by the original beneficiary

PROMOTIONAL MIX

Efforts by a company to reach distribution channels and target customer through communication such as personal selling, advertising, public relation, and direct marketing are called its

PULL STRATEGY

A promotional strategy designed to create buyer demand that will encourage channel members to stock a company's product is called a

PUSH STRATEGY

is a promotional strategy designed to pressure channel members to carry a product and promote it to final users

MARKETING COMMUNICATION

The process of sending promotional messages about products to target markets is called

DUAL EXTENSION / PRODUCT COMMUNICATION EXTENSION

method extends the same home-market product and marketing promotion into target markets

PRODUCT EXTENSION COMMUNICATION ADAPTATION

Under ____________________________ method, a company extends the same product into new target markets by alters its promotion

PRODUCT ADAPTATION COMMUNICATION EXTENSION

Under ____________________________ method, a company adapts its product to the requirements of the international market while retaining the product's original marketing communication

DUAL ADAPTATION

method adapts both the product and its marketing communication to suit the target market

DISTRIBUTION

Planning, implementing, and controlling the physical flow of a product from its point of origin to its point of consumption is called

DISTRIBUTION CHANNEL

The physical path that a product follows on its way to customers is called a

EXCLUSIVE CHANNEL

is one in which a manufacturer grants the right to sell its product to only one or a limited number of resellers

INTENSIVE CHANNEL

is one in which a producer grants the right to sell its product to many resellers

CHANNEL LENGTH

refers to the number of intermediaries between the producer and the buyer.

VALUE DENSITY

The value of a product relative to its weight and volume is called its

WORLDWIDE PRICING

A pricing policy in which a product has a different selling price in export markets than it has in the home market is called

TRANSFER PRICE

is the price charged for products sold between a company's division or subsidiaries

ARM'S LENGTH PRICE

A free-market price that unrelated parties charge one another for a specific product is called an

COUNTERMARKETING

is the attempt to destroy unwholesome demand for products that are considered undesirable, e.g. cigarettes, drugs, handguns, or extremist political parties

CONVERSIONAL MARKETING

is the difficult task of reserving negative demand, e.g. for dental work, or hiring disabled people

STIMULATIONAL MARKETING

is necessary where there's no demand, which often happens with new products and services

DEVELOPMENTAL MARKETING

involves developing a product or service for which there is clearly a talent demand, e.g. a non-polluting and fuel-efficient car

SYNCHROMARKETING

involves altering the times pattern of irregular demand, e.g. for public transport between rush hours, or for ski resorts in the summer

REMARKETING

involves revitalizing falling demand, for example, for churches, inner city areas, or aging film stars

MAINTENANCE MARKETING

is a matter of retaining a current (may be full) level of demand, in the face of competition or changing tastes

DEMARKETING

is the attempt (by government rather than private businesses) to reduce overfull demand, permanently or temporarily, e.g. for some roads and bridges during rush hours