International prospecting

Assurance prospection
International payment techniques
Payment instruments

International prospecting

I- Definition:
It's a step before the sale;
This is a way to maintain a market and identify promising niches that meet Morocco's
potential.

II- Forms of international prospecting

- Prospecting from the exporter's country
- Travel
II-1- Prospecting from the exporter's country
Means: Direct marketing
Methods: The company can consider contacting prospects using several means: ѩ
telephone [ phoning] ѩ direct mail [ mailing] ѩ telematic messaging Sources of
information:
ѩ Professional directories
ѩ compass
•• ••
This form of prospecting is suitable for selling on the national market. But it remains to
be taken as a first step before making a move.
II-2- Travel
- Travels & Missions
- Participation in trade fairs and exhibitions
1- Travels and/or mission
Meeting strangers is a decisive element for companies. Travel abroad must be
prepared.
It is necessary to:
• estimate a budget • set the maximum number of
appointments • only the people concerned need to
travel.
Objectives:
- Establish direct contact with the market
- Testing products
- Collect business data... Types of missions:
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 - Initiation and preparation missions
Objectives: to understand the conditions of market access, to define a strategy
and prepare for prospecting. -
Commercial prospecting missions
Purpose: to accompany and personalise
Objectives: meet buyers and other targets
- In-depth investigation missions Purpose: Selecting partners
Objective: to choose the final method of implantation
2- Participation in events There is the Fair and the Exhibition
The Fair: a large-scale multi-sectoral event, usually open to the public. The Salon: specialized
event; Generally reserved for professionals and whose objective is to build business
relationships.
Objectives:
- Companies exhibit to make contacts with the market and meet agents.
- Visiting trade fairs allows you to search for information about competitors.

III- The choice of an international prospecting method 1-

The selection criteria:
• the product • the characteristics of the
target market • the company 's commercial policy
• the company's financial constraints • In the case
of an event:
• Sources of information •
Analysis grid
3- Date and duration of travel
VI- Preparation of prospecting
Prospecting methods are chosen in line with the company's strategic objectives and
prospecting is planned over a minimum of one year.
Preparation includes:
1- Prospect research
- Define the prospect's profile based on:
* of the market
* of the product
* of commercial policy (choice between a customer or a partner
[ importer, distributor ]
- Searching for information
There are several sources...
- The first contact

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 - It is decisive for the company.
- Choose the communication medium that will be used as a means of contact. The support
depends on several elements:
• local customs • expected response
times • budgetary constraints
2- Information to be gathered • cultural
approaches • Business protocol •
negotiation process • practical
information
3- The choice of products and men to
men to products
4- Negotiation aids ѩ commercial
documentation ѩ preparation of the
sales pitch
ѩ Preparation of the contract and terms of sale 5-
Preparation of the expenditure budget
There are several budget items:
ѩ Travel and subsistence expenses of persons travelling ѩ
Documentation costs ѩ Costs of preparation of materials For
exhibitions:
ѩ Location of the pitch
ѩ Costs of setting up and decorating the stand ѩ
Running costs of the stand

6- Fulfilment of other tasks ѩ logistical organization ѩ business

event

7- Supplier search
Assurance prospection

Overview
Companies need financial support to develop their exports and protect themselves against the
failure of prospecting operations.

Prospecting insurance meets several expectations:

- alleviate the cost of participating in a trade event abroad;- guarantee confirmed export
projects

Operation

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The procedure is broken down into four steps:
Step 1: Submission of the application
The application submitted must include the following:
- information about the company, its products and its rates;
- characteristics of the prospecting and the budget to be guaranteed.
Step 2: Signing the contract
After studying the file and assessing the risks of the operation, the insurance company gives its
approval and specifies the points of the contract:
- the guaranteed budget;
- covered expenses;
- The characteristics of the contract, namely:
* Guaranteed Percentage
* Duration and premium rate based on the guaranteed budget
Once these elements are determined, the company pays the premium
Step 3: Indemnity or Warranty Period
The insurance compensates the company on the basis of the expenses incurred.

Step 4: Amortization period (or final liquidation)

During this period, the insurance company observes the turnover achieved through
prospecting.
At the end of this period or during it, the company will be required to pay all or part of the
compensation received
Cas de la SMAEX
Fair insurance;
Normal Prospecting Insurance (APN)
Simplified Prospecting Insurance (APS)
1-Fair Insurance
Purpose:
Encourage companies to participate in events in foreign countries and guard them against the
risks of potential or total failure.
Beneficiaries:
- industrial companies;
- commercial enterprises;
- service businesses;
- the groupings formed from them.
Countries covered:
All events abroad are covered [subject to acceptance by the
SMAEX].
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Expenses covered:
The warranty covers the following costs:
* rental and layout of the stand;
* return travel of the delegate(s);
* stay of the delegate(s);
* advertising;
* Miscellaneous insurance.
Guaranteed Percentage (Insured Share):
Up to 50% of the cost of participation in an exhibition abroad (based on supporting
documents).
Calculation base:
The insurance contract is drawn up on the basis of the provisional budget for the pre-approved
participation costs.
Final settlement (payment of compensation):
After the amortization period (which varies from 1 to 3 years – counted from the opening of
the event) the final liquidation of the contract takes place:
The company will reimburse, taking into account the volume of sales made in the covered
area, all or part of the provisional indemnity received.
Calculation formulas:
Premium = Provisional Budget x Premium Rate
Indemnity = Expenses Actually Incurred x Guaranteed Percentage
Repayment = Realized Turnover x Depreciation Rate

2-L’assurance Prospection Normal (APN) But:

Encourage companies to participate in events in foreign countries and guard them against the
risks of potential or total failure.
Beneficiaries:
- industrial companies;
- commercial enterprises;
- service businesses;
- the groupings formed from them.
Countries covered:
All events abroad are covered [subject to acceptance by the
SMAEX].
Expenses covered:
The guarantee covers the following
costs: * Foreign market
research

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 * travel outdoors;
* advertising;
* representations abroad.
Guaranteed Percentage (Insured Share):
Guarantees exporters reimbursement of up to 50% of the costs incurred.
Calculation base:
Costs incurred, capped at the guaranteed provisional budget.
Final settlement (payment of compensation): After the
event and the presentation of the justifications

Calculation formulas:
1- Overall Expenditure (Forecast)
2- Expenses
3- Expenses taken into account
4- Export turnover
5- Depreciation = CAX x Depreciation Rate
6- Balance = Expenses Taken into Account - Amortization
7- Proportion
8- Indemnity = Balance x Guaranteed Percentage
9- Premium = Overall Expenses x Premium Rate
Simplified Prospecting Insurance (SPA)
Goal:
Encourage companies to participate in events in foreign countries and guard them against the
risks of potential or total failure.
Beneficiaries:
- SMEs and SMIs with an annual export turnover of more than 1 million
DH; - Companies with a recent export activity (less than 2 years) Countries
covered:
It can concern all foreign countries.
Expenses covered:
The guarantee covers the following
costs: * Foreign market
research
* travel outdoors;
* advertising;
* representations abroad.
Guaranteed Percentage (Insured Share):
Guarantees exporters reimbursement of up to 50% of the costs incurred.

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Calculation base:
Costs incurred, capped at the guaranteed provisional budget.
Final settlement (payment of compensation): After the
presentation and submission of the justifications
Calculation formulas:
Same calculation as PSA
Axis 2: International payment techniques
There are two categories of payment techniques:
Non-documentary settlement techniques:
Direct collection
Cash on delivery
Overseas account
Documentary techniques for settlement:
Documentary delivery
Documentary credit
Factoring
1- Direct collection
Definition
- The set of collection transactions in which the seller's payment is not conditional on the
delivery to the bank of documents intended to prove that he has fulfilled his obligations.
- Payment is made on the buyer's initiative
- This payment technique can only be used between partners who have known each
other for a long time or between whom the balance of power is highly imbalanced.
Types of direct dedication

There are four types of direct cash:

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 Simple checkout
Payment at the time of order
Payment on the bill
Ex-factory payment

Simple checkout
It is a collection of financial documents (a draft) by the seller's bank.
Mechanism:
The exporter sends directly to his buyer all the documents representing the goods shipped
(invoices, transport documents or titles representing the right of ownership of the goods) by
drawing a demand draft on him which he hands over to his banker for collection.
Therefore, the buyer pays the exporter directly without waiting for the goods to be received.
Payment at the time of order
It corresponds to an advance payment.
This method presupposes absolute confidence on the part of the buyer in his foreign
supplier, for he pays him for a commodity which he has not yet received and which
perhaps has not even yet been manufactured.
Details:
- For the exporter, this is the simplest and safest payment technique.
- difficult to get accepted by the buyer – who bears the full financial burden of the
operation in the event of acceptance
The foreign exchange regulations of many countries prohibit this type of contract,
-The importer may request a bank guarantee of reimbursement at the end of which a bank
undertakes to reimburse him if the conditions for calling on the guarantee are met (e.g. non-
conformity of the goods shipped with the commercial contract). Payment by invoice
Definition:
The exporter sends a commercial invoice to their customer. This can be payable on demand or
at maturity with one of the payment instruments.
Details:
It is the customer who retains the initiative for the settlement. This technique is therefore
often not recommended because the exporter does not retain control of the payment, unless
he attaches a bill of exchange to his invoice.
Ex-factory payment
Definition:
Payment for goods as soon as they are ready for shipment. The buyer must therefore pay for
the goods as soon as they leave the factory and take care of their delivery.
The aim is to prevent payments for their goods from being dependent on the dates of
departure of the transports and their duration.
Details:
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 - More advantageous for the seller, who sees his cash flow needs and risk reduced,
- It can cause problems for the buyer: they have to deal with transport and customs
formalities from a country they may not be familiar with.
2- Cash on delivery
Definition
This technique gives the final carrier of the goods a mandate as a financial intermediary.
The carrier will only deliver the goods to the importer upon payment. The carrier will
therefore take care of the collection of the price and its repatriation on behalf of the
seller, in return for payment.

This technique is used for small amount transactions. Payment can be made in cash, by
cheque or by acceptance of bills of exchange.

Pros and Cons:

- The buyer may refuse the goods for several reasons:
**Goods are damaged
* the goods are not in accordance with what was ordered * the buyer
did not obtain the import license * the buyer was unable to obtain
the requested currency.
• Consequences:
• - Store the goods while waiting for their repatriation or sale on site at often less
advantageous conditions.
- High cost: this varies from 2% to 5% of the amount of the invoice claimed.
It is generally advisable to limit the use of this technique to countries of the European Community and
to prime buyers. However, it is not recommended for most other countries, even if the foreign buyer is of
good repute. 3- Overseas account Principle: the possibility of opening an account when the
exporter's bank has a subsidiary or branch in the importer's country.
Benefits:
The centralization of revenues from this country in a local account allows:
reduce the amount of fees related to repatriations, in view of the aggregation of
revenues;
the buyer to pay to an account in his country;
Possibly payment from local suppliers. Payments made from a foreign account usually cost
less than international payments.
Documents requis
The documents required to open an account abroad are:
a copy of the company's articles of association;
a copy of the identity card of the persons who can validly bind the company;

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 a copy of the company's entry in the commercial register; a
specimen of the signatures validly binding on the company; VAT
registration.
4- Documentary delivery (or documentary collection)
Definition
It is a transaction by which an exporter instructs his bank to collect a sum due or the
acceptance of a negotiable instrument by a buyer in return for the delivery of documents.
These are commercial documents (invoices, transport documents, title deeds, etc.) with or
without financial documents (bills of exchange, promissory notes, cheques or other similar
instruments to obtain payment of a sum of money). The Forms of Documentary Delivery Two
forms:
Documents against payment (D/P): the bank located abroad will only hand over the
documents against immediate payment.

This formula provides good security for the exporter. However, the buyer remains subject to
the risk of rejection of the documents and goods by the buyer.

Documents against acceptance (D/A): The bank located abroad will only give the
documents to the buyer against the buyer's acceptance of one or more drafts payable at
a later date.

This formula does not offer a secure guarantee to the seller, since the buyer will not be paid
until the end of the draft. The exporter should therefore seek the bank's approval of the drafts
in order to avoid the risk of insolvency.

This technique involves four parties (sometimes only three): - The

originator (or remitter) The remitting bank:
The presenting bank drew it

Cost:
It is between 0.1% and 1% of the sale amount, with a maximum and minimum ceiling. Fees
and commissions are the responsibility of the seller, unless otherwise stipulated between the
parties.

Pros:
The buyer will not be able to collect the goods in customs without first paying the amount of
the documentary discount to his bank
The procedure is more flexible than documentary credit in terms of documents and dates
The cost is low
It is a flexible and less expensive payment method than a documentary credit
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 For the importer, it offers practically the same guarantees as the documentary credit
In some cases, the importer may inspect the goods before paying or accepting the draft
Through the use of drafting, the importer can take possession of the goods before
payment has actually taken place. He can make a profit on the sale and acquire sufficient
funds to pay his bill of exchange. The documentary submission can therefore be used as
a means of financing.
Cons:
This technique does not protect the exporter from the risk of
If the customer does not come forward, the goods are
immobilized. There are many reasons why the buyer may not
pay.
There is no commitment from the intervening banks.
The mechanism is unbalanced between the importer and the exporter. The latter is much
more at risk in the operation
This technique is highly subject to political risk. If the company intends to move it to an
unstable market, it is advisable to take out credit insurance.
5- Documentary credit
Overview
It is a payment method subject to international rules: the UCP 500.
It involves a bank's commitment to pay in exchange for the delivery of documents with the
appearance of compliance.

DOCUMENTARY CREDIT CIRCUIT

The 13 Acts of Documentary Credit

Act 1: The request for documentary credit
Act 2: The opening of documentary credit
Act 3: Notification of the documentary credit
Act 4: Shipping/Loading of Goods
Act 5: Issuance of the transport document
Act 6: Submission of documents to the notifying/confirming bank
Act 7: Payment of documents to the beneficiary

Act 8: Transmission of documents to the issuing bank

Act 9: Reimbursement of the notifying/confirming bank
Act 10: Lifting of documents
Act 11: Recording the debit to the customer's account
Act 12: Claiming the goods.
Act 13: Handover of Goods
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Characteristics of documentary credit:
- Revocable or Irrevocable
- Confirmed or Unconfirmed
The REVOCABLE CRÉDOC
Univocably cancellable at any time ( By importer, issuing bank, exporter )
Exporter Risks:
Nonpayment
Lack of control over goods
Represents less than 0.01% of CRÉDOC
( Generally used between parent company and subsidiaries )
The IRREVOCABLE CRÉDOC
Non-cancellable without agreement of all parties (i.e. exporter - importer - issuing bank)
Risks covered:
- Abusive contract cancellation
All CRÉDOC is irrevocable (unless otherwise specified)
Possibility of being confirmed by a bank
The UNCONFIRMED CREDOC
A Single Payment Commitment:
- The issuing bank Export risks:
- INSOLVENT issuing bank or country
Constraint
Remise documents Payment
Deadline according to the terms of the credoc
The IRREVOCABLE and CONFIRMED CRÉDOC
Commitment of the issuing bank and the confirming bank.
Receipt of documents with an appearance of compliance:
PAYMENT
or PAYMENT COMMITMENT Risks covered:
- COUNTRY Risk
- COMMERCIAL & FINANCIAL Risk
CRÉDOC CONFIRMED
Silent confirmation:
Risky for the bank.
DEADLINES
Shipping deadline
Determines the date of arrival of the goods in the buyer's country
Shipping: Pick-up, pick-up, shipping
the date of ageing of the transport documents
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Either the credoc indicates a deadline for submission
Either the UCP requires them to be submitted within 21 days
the validity date of the credit
The credoc must stipulate the place and the extreme date of submission of the documents
REQUIRED DOCUMENTS
Invoice (number of originals and copies required by the credit)
Packing list
Transport document
E.g. bill of lading drawn up in several originals
It must be clean, i.e. without reservations
STANDARD DOCUMENTS
Commercial Invoice
Certificate of Insurance
Transport documents
- Maritime Bill of Lading
- Air Waybill (AWB)
- Road Freight Convention (CMR) - Other
Other documents
USER DOCUMENTS
The Commercial Invoice
- Issued by the beneficiary on behalf of the client
- Description of goods as provided for in the CREDC
- Signature not required (unless otherwise specified)
- Ref. R.U.U. Art. 37 and (III)
USER DOCUMENTS
Certificate of Insurance
- Issued and Signed by Insurance Companies
- Negotiable or Bearer
- Risk coverage as provided for in the CRÉDOC
LES DOCUMENTS DE TRANSPORT
The Maritime Bill of Lading
- Name of Carrier and Signature of Carrier or Captain.
- On board and net of reserves." Clean on board"
- Negotiable document issued in counterparts
LES DOCUMENTS DE TRANSPORT
Air Waybill
(L.T.A.)
- Carrier's Name and Signature
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 - Effective date of flight
- Non-negotiable document
LES DOCUMENTS DE TRANSPORT
The Multimodal Transport Document
LES DOCUMENTS DE TRANSPORT
La Convention Marchandise Route
(CMR)
- Carrier's Name and Signature
- Words "for shipment", "for shipment", or
"for transport"
LES DOCUMENTS DE TRANSPORT
Receipt from express courier company and post office.
LES DOCUMENTS DE TRANSPORT
Transport documents issued by freight forwarders
The methods of implementation of the CRÉDOC THE METHODS OF
IMPLEMENTATION
4 embodiments:
- Payment on demand
- Acceptance
- Deferred payment
- Negotiation
PAYMENT ON DEMAND
Conforming documents
There are two scenarios:
- CRÉDOC not confirmedpayment if
solvent issuing bank
- CRÉDOC confirmed automatic
payment
Payment commitment
ACCEPTANCE
Acceptance of bills drawn on the beneficiary's bank
Two scenarios:
- CRÉDOC not confirmed
- No obligation to accept
- If Acceptance = Commitment to Pay at Due Date
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 - If Non-Acceptance = Possible Drawdown on the Issuing Bank
- CRÉDOC confirmed
- Automatically accepted bill of effect
- Acceptance = Possibility of discount
DEFERRED PAYMENT
Payment within + X days of the invoice / transport
document Two scenarios:
- CRÉDOC not confirmed
- Payment on due date if solvent issuing bank
- CRÉDOC confirmed
- Automatic payment at maturity
THE NEGOTIATION
Negotiation = Document Discount
Beneficiary Option:
- If beneficiary chooses not to negotiate
Payment to the issuing bank
- If beneficiary wishes to negotiate
- the CRÉDOC is unconfirmed: negotiation unless a good end is achieved - the CRÉDOC is
confirmed:
Non-recourse negotiation
IRREGULARITIES
The nature of the irregularities
Decision-making on the conformity of documents submitted for use of documentary
credit.
Consequences of irregularities for the importer and exporter.
PRECAUTIONS
Not too many documents
Authenticity of the credoc
Consistency with the contract
Compliance with deadlines
Notify interested departments of the opening
Document analysis
DOCUMENT ANALYSIS
Retrieval of documents from the seller (packing list, invoice) documents provided (carrier,
insurers, CCI, etc.)
Compatibility with the contract incoterm

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 Compatibility of transport documents with the technology used Rule: non-interference of
the principal in the documents to be produced (e.g. no sales incoterm on arrival)
NON-COMPLIANCE
The amendment
Irregularities
Bank reserves (7 days max for document review)
HOW TO AVOID PROBLEMS?
*Attach a draft credoc to the contract
*READ the Crédoc received
*Get help from a bank
IRREGULARITIES
The nature of the irregularities.
Decision-making on the conformity of documents submitted for use of documentary
credit.
Consequences of irregularities for the importer and exporter.
DOCUMENTARY CREDIT
BUYER
Advantages: the buyer is reassured that the bank will refuse payment if the documents do not
comply with the terms of the CRÉDOC.
Risks: In the CRÉDOC, banks operate only with documents. The merchandise may be different
from what is described on the documents.
SELLER
Advantages: substitution of buyer risk by bank risk, possibility of financing. Risks: Documents
must be strictly compliant with the terms of the CRÉDOC to ensure payment.
SPECIAL DOCUMENTARY CREDITS
« Revolving »
« Red clause »
Transférable
« Back-to-Back »
SPECIAL DOCUMENTARY CREDITS "Revolving"
For continuous or multiple operations.
Automatic or
By endorsement
Less work.
Opportunity cost.

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EXAMPLE CRÉDOC REVOLVING
An importer thinks he will buy €120,000 worth of goods from the same supplier in 2002
through CRÉDOC. Each embarkation must not exceed €10,000, which covers the purchase of
500 units per month.
Automatic: The credit is open for €10,000 with a one-year validity.
By Amendment: The credoc is open for €10,000 with validity for 30 days. How much
is the bank recording on its books in each alternative?
Automatic: €120,000
Per amendment: €10,000
SPECIAL DOCUMENTARY CREDITS
« Red Clause »
It authorises the Negotiating Bank to make an advance on the documentary credit
(usually in the form of a loan at the local rate) to the Beneficiary.
A QUOI SERT LA RED CLAUSE ?
The Red Clause will make it possible to finance the felling of trees, equipment, labour,
transport and boarding.
This clause is requested by the buyer.

DOCUMENTARY CREDIT WITH "RED CLAUSE"

SPECIAL DOCUMENTARY CREDITS

Transferable
May be transferred in whole or in part to one or more beneficiaries only once under the
same conditions except: amount, unit price, expiry date, date of presentation, date of
embarkation, which may be reduced.

CRÉDITS DOCUMENTAIRES SPECIAUX Back to Back

When a documentary credit is used as collateral for the issuance of a new documentary
credit. 6- Factoring
It is a technique by which the exporter assigns its trade receivables to a factor, who is
responsible for collecting them and guaranteeing their successful completion, even in the
event of a temporary or permanent default by the debtor.
The factoring company can grant the company a credit that represents 80% of the invoices
issued (cash credit). The balance of 20% is remitted when the remaining invoices are cashed.

Axis 3: International payment instruments

There are four types:
- Virement international
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 - Cheque
- Bill of exchange
- Promissory note
1- Virement international
Definition

International bank transfer is the transfer from one account to another, made by a bank on the
order of the importer (debtor), for the benefit of the exporter (the creditor). The order can be
in national currency or foreign currency.
Benefits:
The security of transfers is ensured through highly sophisticated control procedures;
The transfer is fast and inexpensive;
It is very easy to use;
The system operates 24 hours a day, 365 days a year.
Disadvantages
International wire transfer does not constitute a guarantee of payment, unless it is made
before the goods are shipped;
the initiative of the transfer order is left to the importer;
It does not protect the company against foreign exchange risk in the case of a foreign
currency transfer.
Due to its ease of use, bank transfers are the most widely used international payment
instrument.

Cost:
Fees and commissions are divided into two parts:
□ the costs to the bank issuing the transfer, often borne by the importer. The second is
claimed by the banker who receives the payment; often borne by the importer or exporter,
Composition of the cost:
Exchange commission Depending on the country
Cash-out fee
les frais de transmission par SWIFT[ (Society For Worldwide Interbank Financial
Telecommunication).
2- The cheque
Definition
A cheque is a payment instrument by which the holder of an account instructs the banker to
pay a payee a specified amount to be deducted from the holder's funds or credits.
Pros and Cons

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The cheque is a relatively uncommon instrument used in international commercial
transactions.
Disadvantages
P the issue of the cheque is left to the initiative of the buyer; P
the cash-out time is more or less long.
P if the cheque is denominated in foreign currency, the exporter is exposed to foreign
exchange risk;
P The legal status of the cheque and the possibility of stopping the cheque vary greatly from
one country to another;
P the cheque can be stolen, lost, or even forged;
P exchange regulations may limit the use of cheques in international trade P the business
cheque does not protect the exporter from the risk of non-payment.

Benefits
P it is widespread and inexpensive;
P the risk of non-payment can be avoided by the exporter by requiring a cashier's check or
certified check;
P the cheque can be used as a means of financing. The exporter will be credited with his claim
as soon as the cheque is received, without waiting for his bank to be actually paid by the
importer's bank.
3- The bill of exchange Definition:
The bill of exchange (draft) is a transmissible negotiable instrument whereby the exporter
(the drawer) instructs the importer (the drawee) or his representative (his banker) to pay him a
certain amount of money on a specified date. The exporter sends the draft to the importer for
return to the importer accepted, i.e., signed. Wares

Return of Accepted Milking Pros:

P it materializes a claim that can be negotiated (discounted) with a bank;
P the exporter can be assured of payment of his claim by seeking approval from the importer's
bank
P the bill of exchange may be conveyed by endorsement to settle a debt; P the bill is
issued at the initiative of the seller and not of the buyer, which is always more
interesting for the former;
P the draft determines the exact date of payment.
Disadvantages:
It does not eliminate the risk of non-payment;
P its recovery can take a long time because it is subject to the importer's acceptance,
transmitted by post and involves several financial institutions; In some countries, the issue

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of a draft may be accompanied by special legal measures (price, language, etc.). It is
therefore advisable to find out about it before using it.
Cost:
The bill of exchange costs more than the cheque because it usually has to be presented twice
(for acceptance and payment, and sometimes a third time for endorsement). A transfer fee is
also charged at the time of collection.
4- Promissory Note
Definition:
It is a negotiable instrument issued at the initiative of the buyer (the subscriber/importer), by
which the buyer promises the payment of a certain sum, on demand or on a certain date, to
his creditor, i.e. the seller (the beneficiary/exporter).
Payment "on demand" will be made upon presentation of the promissory note to the bank
indicated therein. Pros and Cons
P The promissory note resembles the bill of exchange;
P It has almost the same advantages and disadvantages;
P However, it is issued at the initiative of the buyer and not at the initiative of the seller.

International prospecting

I- Definition:
It's a step before the sale;
This is a way to maintain a market and identify promising niches that meet Morocco's
potential.

II- Forms of international prospecting

- Prospecting from the exporter's country
- Travel
II-1- Prospecting from the exporter's country
Means: Direct marketing
Methods: The company can consider contacting prospects using several means: ѩ
telephone [ phoning] ѩ direct mail [ mailing] ѩ telematic messaging Sources of
information:
ѩ Professional directories
ѩ compass
••••
This form of prospecting is suitable for selling on the national market. But it remains to
be taken as a first step before making a move.

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II-2- Travel
- Travels & Missions
- Participation in trade fairs and exhibitions
1- Travels and/or mission
Meeting strangers is a decisive element for companies. Travel abroad must be
prepared.
It is necessary to:
• estimate a budget • set the maximum number of
appointments • only the people concerned need to
travel.
Objectives:
- Establish direct contact with the market
- Testing products
- Collect business data... Types of missions:
- Initiation and preparation missions
Objectives: to understand the conditions of market access, to define a strategy
and prepare for prospecting. -
Commercial prospecting missions
Purpose: to accompany and personalise
Objectives: meet buyers and other targets

- In-depth investigation missions Purpose: Selecting partners

Objective: to choose the final method of implantation

2- Participation in events There is the Fair and the Exhibition

The Fair: a large-scale multi-sectoral event, usually open to the public. The Salon: specialized
event; Generally reserved for professionals and whose objective is to build business
relationships.
Objectives:
- Companies exhibit to make contacts with the market and meet agents.
- Visiting trade fairs allows you to search for information about competitors.

III- The choice of an international prospecting method 1-

The selection criteria:
• the product • the characteristics of the
target market • the company 's commercial policy
• the company's financial constraints • In the case
of an event:

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 • Sources of information •
Analysis grid
3- Date and duration of travel
VI- Preparation of prospecting
Prospecting methods are chosen in line with the company's strategic objectives and
prospecting is planned over a minimum of one year.
Preparation includes:
1- Prospect research
- Define the prospect's profile based on:
* of the market
* of the product
* of commercial policy (choice between a customer or a partner
[ importer, distributor ]
- Searching for information
There are several sources...
- The first contact
- It is decisive for the company.
- Choose the communication medium that will be used as a means of contact. The support
depends on several elements:

• local customs • expected response

times • budgetary constraints
2- Information to be gathered • cultural
approaches • Business protocol •
negotiation process • practical
information
3- The choice of products and men to
men to products
4- Negotiation aids ѩ commercial
documentation ѩ preparation of the
sales pitch
ѩ Preparation of the contract and terms of sale 5-
Preparation of the expenditure budget
There are several budget items:
ѩ Travel and subsistence expenses of persons travelling ѩ
Documentation costs ѩ Costs of preparation of materials For
exhibitions:
ѩ Location of the pitch

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 ѩ Costs of setting up and decorating the stand ѩ
Running costs of the stand

6- Fulfilment of other tasks ѩ logistical organization ѩ business

event

7- Supplier search

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