THE 5 INTERNATIONALIZATION STEPS

1. To make a commercial offer (or a call for tenders) and to be able to use the Incoterms
   You have to master the run risks as soon as you have begun an international sale or purchase. You have also to use the incoterms to ensure a good freight. The Incoterms define responsibilities and obligations of a seller and a buyer in the framework of international commercial contracts.
   
2. To understand the importance of logistics and to adopt a strategy
   Do not uderestimate the importance of each component of logistics to have a negotiation power with your partners. Then, thanks to these information, establish a logistic plan with the best proportion cost/efficiency to ensure a good freight of goods.
   
3. Master of transport operations
   You have to be familiar with different means of transport and to choose the most appropriate one for the carried merchandise and its destination.
   
   In addition to that, you have to anticipate damages and possible disputes about the chosen mean to avoid discontents from customers. You have to insure yourself against different transport risks in order to be completely compensated for potential damages.
   
   You also have to be familiar with costs of transport auxiliaries or intermediaries to get some services executed or to do it yourself.
   
4. Customs and warehousing
   You have to know procedures and customs formalities to make or to control yourself customs clearance. You have chosen the possibility of warehousing your stocks in warehouses (make enquiries before).
   
5. Other elements to master
   You have to adapt your packaging that is to say to choose it according to the product and its mean of transport.Without forgetting to create and to master the whole of documents. You have to create documents that prove your actions (commercial invoice, purchase order, etc.) in order to events take place in the best way.

To finish, you have to master all the means of payment in order to be sure to be paid as a seller or to receive your merchandise as a buyer.

BEHAVIOUR ON BUSINESS TRIP :

Whether this will be your first or your thousandth business trip, you should be conscious of conduct that is considered proper during your absence from the office. As a representative of your company, you need to know how to behave appropriately on a business trip :

1. Step one
Pack all essential items in a carry-on bag to avoid being ill-prepared for business if the airline loses your luggage. Showing up for a trade show or a meeting with a client dressed in yesterday's clothes will not make a positive impression.

2. Step two
Dress professionally during the entire trip. Your attire should reflect the fact that you are on a business trip, whether you are on a plane, on a golf course or in a conference room.

3. Step three
Be prepared and be on time. You may normally arrive at the office at 8:10 every morning and not speak until after your first cup of coffee, but clients will not take kindly to your decision to be 10 minutes late for an important meeting and still needing to go over your notes.

4. Step four
Use proper business language. Even though some business trips may include more casual situations, such as lunch, dinner or even golf, keep in mind that you are still representing your company, and like the old saying goes, "Loose lips sink ships."

5. Step five
Brush up on table manners and the basics of business etiquette before you go. This may help you avoid an embarrassing gaffe while on your trip.

6. Step six
Save all receipts from your trip so you can easily determine your expenses when you return.

7. Step seven
Conduct yourself with grace and decorum at all times. If you are uncertain about these terms, consider buying a book on business etiquette for some light reading while on the plane.

TIPS AND WARINGS :

• Ask if you can smoke before lighting up. Smoking has become something of a social and business faux pas in recent years, and if your companion or client is not smoking, asking permission is essential.
  
• Use a personal phone card to make long-distance phone calls while you are away. This way, you won't have to reimburse the company for these charges on the hotel bill.
  
• Traveling in foreign countries can be tricky. Before you leave, make sure to buy a guidebook or consult someone who has recently traveled to your intended destination to learn about the culture and customs.
  
• Avoid planning leisure-time activities during your trip if they will detract from the amount of business you are able to conduct. If you stay out until 2 a.m. or get a sunburn at the pool, you won't be at the top of your game for business the next day.
  
• Stay away from pornography, alcohol and anything potentially inappropriate during your trip. This includes renting adult films in your hotel room, visiting bars and being in any situation that could result in your being arrested and, ultimately, fired.
  
• Keep in mind that your time is not your own on a business trip. You belong to your employer during this time; you're not being paid to goof off.

DOCUMENTATION :

Exporters should seriously consider having the freight forwarder handle the formidable amount of documentation that exporting requires as forwarders are specialists in this process. The following documents are commonly used in exporting; but which of them are necessary in a particular transaction depends on the requirements of the U.S. government and the government of the importing country.

• Air freight shipments are handled by air waybills, which can never be made in negotiable form.
  
• A bill of lading is a contract between the owner of the goods and the carrier (as with domestic shipments). For vessels, there are two types : a straight bill of lading which is nonnegotiable and a negotiable or shipper's order bill of lading. The latter can be bought, sold, or traded while the goods are in transit. The customer usually needs an original as proof of ownership to take possession of the goods.
  
• A commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods when assessing customs duties. Governments that use the commercial invoice to control imports will often specify its form, content, number of copies, language to be used, and other characteristics.
  
• A consular invoice is a document that is required in some countries. It describes the shipment of goods and shows information such as the consignor, consignee, and value of the shipment. Certified by the consular official of the foreign country stationed here, it is used by the country's customs officials to verify the value, quantity, and nature of the shipment.
  
• A certificate of origin is a document that is required in certain nations. It is a signed statement as to the origin of the export item. Certificate of origin are usually signed through a semiofficial organization, such as a local chamber of commerce. A certificate may still be required even if the commercial invoice contains the information.
  
• A NAFTA certificate of origin is required for products traded among the NAFTA countries (Canada, the United States, and Mexico).
  
• Inspection certification is required by some purchasers and countries in order to attest to the specifications of the goods shipped. This is usually performed by a third party and often obtained from independent testing organizations.
  
• A dock receipt and a warehouse receipt are used to transfer accountability when the export item is moved by the domestic carrier to the port of embarkation and left with the ship line for export.
  
• A destination control statement appears on the commercial invoice, and ocean or air waybill of lading to notify the carrier and all foreign parties that the item can be exported only to certain destinations.
  
• A Shipper's Export Declaration (SED) is used to control exports and act as a source document for official U.S. export statistics. SEDs must be prepared for shipments through the U.S. Postal Service when the shipment is valued over $500. SEDs are required for shipments not using the U.S. Postal Service when the value of the commodities, classified under any single Schedule B number, is over $2,500. SEDs must be prepared, regardless of value, for all shipments requiring an export license or destined for countries restricted by the Export Administration Regulations. SEDs are prepared by the exporter or the exporter's agent and delivered to the exporting carrier (for example, the post office, airline, or vessel line).
  
• An export license is a government document that authorizes the export of specific goods in specific quantities to a particular destination. This document may be required for most or all exports to some countries or for other countries only under special circumstances.
  
• An export packing list considerably more detailed and informative than a standard domestic packing list. It an itemizes the material in each individual package and indicates the type of package, such as a box, crate, drum, or carton. It also shows the individual net, legal, tare, and gross weights and measurements for each package (in both U.S. and metric systems). Package markings should be shown along with the shipper's and buyer's references. The list is used by the shipper or forwarding agent to determine the total shipment weight and volume and whether the correct cargo is being shipped. In addition, U.S. and foreign customs officials may use the list to check the cargo.
  
• An insurance certificate is used to assure the consignee that insurance will cover the loss of or damage to the cargo during transit.

Documentation must be precise because slight discrepancies or omissions may prevent merchandise from being exported, result in nonpayment, or even result in the seizure of the exporter's goods by U.S. or foreign government customs. Collection documents are subject to precise time limits and may not be honored by a bank if the time has expired. Most documentation is routine for freight forwarders and customs brokers, but the exporter is ultimately responsible for the accuracy of its documents.

The number and kind of documents the exporter must deal with varies depending on the destination of the shipment. Because each country has different import regulations, the exporter must be careful to provide all proper documentation. The following sources also provide information pertaining to foreign import restrictions.

PAYMENT METHODS :

1) Cash in advance

Receiving payment by cash in advance of the shipment might seem ideal. In this situation, the exporter is relieved of collection problems and has immediate use of the money. A wire transfer is commonly used and has the advantage of being almost immediate. Payment by check, may result in a collection delay of up to six weeks. Therefore, this method may defeat the original intention of receiving payment before shipment.

Many exporters accept credit cards in payment for exports of consumer and other products, generally of a low follar value, sold directly to the end user. Domestic and international rules governing credit card transactions sometimes differ, so U.S. merchants should contact their credit card processor for more specific information. International credit card transactions are typically done by telephone or fax. Due to the nature of these methods, exporters should be aware of fraud. Merchants should determine the validity of transactions and obtain the proper authorizations.

For the buyer, however, advance payment tends to create cash flow problems, as well as increase risks. Furthermore, cash in advance is not as common in most of the world as it is in the United States. Buyers are often concerned that the goods may not be sent if payment is made in advance. Exporters that insist on this method of payment as their sole method of doing business may find themselves losing out to competitors who offer more flexible payment terms.

2) Documentary letters of credit and Documentary drafts

Documentary letters of credit or documentary drafts are often used to protect the interests of both buyer and seller. These two methods require that payment be made based on the presentation of documents conveying the title and that specific steps have been taken. Letters of credit and drafts can be paid immediately or at a later date. Drafts that are paid upon presentation are called sight drafts. Drafts that are to be paid at a later date, often after the buyer receives the goods, are called time drafts or date drafts.

Since payment by these two methods is made on the basis of documents, all terms of payment should be clearly specified in order to avoid confusion and delay. For example, "net 30 days" should be specified as "30 days from acceptance." Likewise, the currency of payment should be specified as "US$30,000." International bankers can offer other suggestions.

Banks charge fees - based mainly on a percentage of the amount of payment - for handling letters of credit and smaller amounts for handling drafts. If fees charged by both the foreign and U.S. banks are to be applied to the buyer's account, this should be explicitly stated in all quotations and in the letter of credit.

The exporter usually expects the buyer to pay the charges for the letter of credit, but some buyers may not agree to this added cost. In such cases, the exporter must either absorb the costs of the letter of credit or risk losing that potential sale. Letters of credit for smaller amounts can be somewhat expensive since fees can be high relative to the sale.

a) Letters of credit

A letter of credit adds a bank's promise to pay the exporter to that of the foreign buyer provided that the exporter has complied with all the terms and conditions of the letter of credit. The foreign buyer applies for issuance of a letter of credit from the buyer's bank to the exporter's bank and therefore is called the applicant; the exporter is called the beneficiary.

Payment under a documentary letter of credit is based on documents, not on the terms of sale or the physical condition of the goods. The letter of credit specifies the documents that are required to be presented by the exporter, such as an ocean bill of lading (original and several copies), consular invoice, draft, and an insurance policy. The letter of credit also contains an expiration date. Before payment, the bank responsible for making payment, verifies that all document conform to the letter of credit requirements. If not, the discrepancy must be resolved before payment can be made and before the expiration date.

A letter of credit issued by a foreign bank is sometimes confirmed by a U.S. bank. This confirmation means that the U.S. bank (the confirming bank), adds its promise to pay to that of the foreign bank (the issuing bank). If a letters of credit is not confirmed, it is advised through a U.S. bank and thus called an advised letter of credit. U.S. exporters may wish to confirm letters of credit issued by foreign banks if they are unfamiliar with the foreign banks or concerned about the political or economic risk associated with the country in which the bank is located. An Export Assistance Center or international banker can assist exporters in evaluating the risks to determine what might be appropriate for specific export transactions.

A letter of credit may either be irrevocable and thus, unable to be changed unless both parties agree; or revocable where either party may unilaterally make changes. A revocable letter of credit is inadvisable as it carries many risks for the exporter.

A change made to a letter of credit after it has been issued is called an amendment. Banks also charge fees for this service. It should be specified in the amendment if the exporter or the buyer will pay these charges. Every effort should be made to get the letter of credit right the first time since these changes can be time-consuming and expensive.

To expedite the receipt of funds, wire transfers may be used. Exporters should consult with their international bankers about bank charges for such services.

When preparing quotations for prospective customers, exporters should keep in mind that banks pay only the amount specified in the letter of credit - even if higher charges for shipping, insurance, or other factors are incurred and documented.

Upon receiving a letter of credit, the exporter should carefully compare the letter's terms with the terms of the exporter's pro forma quotation. This step is extremely important, since the terms must be precisely met or the letter of credit may be invalid and the exporter may not be paid. If meeting the terms of the letter of credit is impossible or if any of the information is incorrect or even misspelled, the exporter should contact the customer immediately and ask for an amendment to the letter of credit.

The exporter must provide documentation showing that the goods were shipped by the date specified in the letter of credit or the exporter may not be paid. Exporters should check with their freight forwarders to make sure that no unusual conditions may arise that would delay shipment. Documents must be presented by the date specified for the letter of credit to be paid. Exporters should verify with their international bankers that there will be sufficient time to present the letter of credit for payment.

Exporters may request that the letter of credit specify that partial shipments and transshipment will be allowed. Specifying what will be allowed can prevents unforeseen last minute problems.

b) Documentary Drafts

A draft, sometimes also called a bill of exchange, is analogous to a foreign buyer's check. Like checks used in domestic commerce, drafts carry the risk that they will be dishonored. However, in international commerce, title does not transfer to the buyer until he pays the draft, or at least engages a legal undertaking that the draft will be paid when due.

• Sight drafts
  A sight draft is used when the exporter wishes to retain title to the shipment until it reaches its destination and payment is made. Before the shipment can be released to the buyer, the original ocean bill of lading (the document that evidences title) must be properly endorsed by the buyer and surrendered to the carrier. It is important to note that air waybills of lading, on the other hand, do not need to be presented in order for the buyer to claim the goods. Hence, risk increases when a sight draft is being used with an air shipment.
  
  In actual practice, the ocean bill of lading is endorsed by the exporter and sent via the exporter's bank to the buyer's bank. It is accompanied by the sight draft, invoices, and other supporting documents that are specified by either the buyer or the buyer's country (e.g., packing lists, consular invoices, insurance certificates). The foreign bank notifies the buyer when it has received these documents. As soon as the draft is paid, the foreign bank turns over the bill of lading thereby enabling the buyer to obtain the shipment.
  
  There is still some risk when a sight draft is used to control transferring the title of a shipment. The buyer's ability or willingness to pay might change from the time the goods are shipped until the time the drafts are presented for payment; there is no bank promise to pay standing behind the buyer's obligation. Additionally, the policies of the importing country could also change. If the buyer cannot or will not pay for and claim the goods, returning or disposing of the products becomes the problem of the exporter.
  
• Time drafts and date drafts
  A time draft is used when the exporter extends credit to the buyer. The draft states that payment is due by a specific time after the buyer accepts the time draft and receives the goods (e.g., 30 days after acceptance). By signing and writing "accepted" on the draft, the buyer is formally obligated to pay within the stated time. When this is done the time draft is then called a trade acceptance. It can be kept by the exporter until maturity or sold to a bank at a discount for immediate payment.
  
  A date draft differs slightly from a time draft in that it specifies a date on which payment is due, rather than a time period after the draft is accepted. When either a sight draft or time draft is used, a buyer can delay payment by delaying acceptance of the draft. A date draft can prevent this delay in payment though it still must be accepted.
  
  When a bank accepts a draft, it becomes an obligation of the bank and thus, a negotiable investment known as a banker's acceptance. A banker's acceptance can also be sold to a bank at a discount for immediate payment.

PACKING :

Exporters should be aware of the demands that international shipping puts on packaged goods. Exporters should jeep four potential problems in mind when designing an export shipping crate: breakage, moisture, pilferage and excess weight.

Generally, cargo is carried in containers, but sometimes it is still shipped as breakbulk cargo. Besides the normal handling encountered in domestic transportation, a breakbulk shipment transported by ocean freight may be loaded aboard vessels in a net or by a sling, conveyor, or chute, that puts an added strain on the package. During the voyage, goods may be stacked on top of or come into violent contact with other goods. Overseas, handling facilities may be less sophisticated than in the United States and the cargo could be dragged, pushed, rolled, or dropped during unloading, while moving through customs, or in transit to the final destination.

Moisture is a constant concern because condensation may develop in the hold of a ship even if it is equipped with air conditioning and a dehumidifier. Another aspect of this problem is that cargo may also be unloaded in precipitation, or the foreign port may not have covered storage facilities. Theft and pilferage are added risks.

Buyers are often familiar with the port systems overseas, so they will often specify packaging requirements. If the buyer does not specify this, be sure the goods are prepared using these guidelines:

• Pack in strong containers, adequately sealed and filled when possible.
• To provide proper bracing in the container, regardless of size, make sure the weight is evenly distributed.
• Goods should be palletized and when possible containerized.
• Packages and packing filler should be made of moisture-resistant material.
• To avoid pilferage, avoid writing contents or brand names on packages. Other safeguards include using straps, seals, and shrink wrapping.
• Observe any product-specific hazardous materials packing requirements.
  
  One popular method of shipment is to use containers obtained from carriers or private leasing companies. These containers vary in size, material, and construction and accommodate most cargo, but they are best suited for standard package sizes and shapes. Also, refrigerated and liquid bulk containers are usually readily available. Some containers are no more than semi-truck trailers lifted off their wheels, placed on a vessel at the port of export and then transferred to another set of wheels at the port of import.
  
  Normally, air shipments require less heavy packing than ocean shipments, though they should still be adequately protected, especially if they are highly pilferable. In many instances, standard domestic packing is acceptable, especially if the product is durable and there is no concern for display packaging. In other instances, high-test (at least 250 pounds per square inch) cardboard or tri-wall construction boxes are more than adequate.
  
  Finally, because transportation costs are determined by volume and weight, specially reinforced and lightweight packing materials have been developed for exporting. Packing goods to minimize volume and weight while reinforcing them may save money, as well as ensure that the goods are properly packed. It is recommended that a professional firm be hired to pack the products if the supplier is not equipped to do so. This service is usually provided at a moderate cost.

LABELLING :

Specific marking and labeling is used on export shipping cartons and containers to:

• Meet shipping regulations.
• Ensure proper handling.
• Conceal the identity of the contents.
• Help receivers identify shipments.
• Insure compliance with environmental and safety standards.
  The overseas buyer usually specifies which export marks should appear on the cargo for easy identification by receivers. Products can require many markings for shipment. For example, exporters need to put the following markings on cartons to be shipped :
• Shipper's mark.
• Country of origin (U.S.A.).
• Weight marking (in pounds and in kilograms).
• Number of packages and size of cases (in inches and centimeters).
• Handling marks (international pictorial symbols).
• Cautionary markings, such as "This Side Up" or "Use No Hooks" (in English and in the language of the country of destination).
• Port of entry.
• Labels for hazardous materials (universal symbols adapted by the International Air Transport Association and the International Maritime Organization).
• Ingredients (if applicable, also included in the language of the destination country).

Packages should be clearly marked to prevent misunderstandings and delays in shipping. Letters are generally stenciled onto packages and containers in waterproof ink. Markings should appear on three faces of the container, preferably on the top and on the two ends or the two sides. Ant old markings must be completely removed from previously used packaging.

In addition to the port marks, the customer identification code, and an indication of origin, the marks should include the package number, gross and net weights, and dimensions. If more than one package is being shipped, the total number of packages in the shipment should be included in the markings. The exporter should also add any special handling instructions. It is a good idea to repeat these instructions in the language of the country of destination. and use standard international shipping and handling symbols.

Customs regulations regarding freight labeling are strictly enforced. For example, many countries require that the country of origin be clearly labeled on each imported package. Most freight forwarders and export packing specialists can supply the necessary information regarding specific regulations.

SHIPPING :

The handling of transportation is similar for domestic and export orders. Export marks are added to the standard information on a domestic bill of lading. These marks show the name of the exporting carrier and the latest allowed arrival date at the port of export. Instructions for the inland carrier to notify the international freight forwarder by telephone upon arrival should also be included.

Exporters may find it useful to consult with a freight forwarder when determining the method of international shipping. Since carriers are often used for large and bulky shipments, the exporter should reserve space on the carrier well before actual shipment date. This reservation is called the booking contract.

International shipments are increasingly made on a through bill of lading under a multimodal contract. The multimodal transit operator (frequently one of the transporters) takes charge of and responsibility for the entire movement from factory to final destination.
The cost of the shipment, the delivery schedule, and the accessibility to the shipped product by the foreign buyer are all factors to consider when determining the method of international shipping. Although air carriers can be more expensive, their cost may be offset by lower domestic shipping costs (for example, using a local airport instead of a coastal seaport) and quicker delivery times. These factors may give the U.S. exporter an edge over other competitors.

Before shipping, the U.S. firm should be sure to check with the foreign buyer about the destination of the goods. Buyers often want the goods to be shipped to a free-trade zone or a free port where they are exempt from import duties.

INSURANCE :

Damaging weather conditions, rough handling by carriers, and other common hazards to cargo make insurance an important protection for U.S. exporters. If the terms of sale make the exporter responsible for insurance, the exporter should either obtain its own policy or insure the cargo under a freight forwarder's policy for a fee. If the terms of sale make the foreign buyer responsible, the exporter should not assume (or even take the buyer's word) that adequate insurance has been obtained. If the buyer neglects to obtain adequate coverage, damage to the cargo may cause a major financial loss to the exporter.

Shipments by sea are covered by marine cargo insurance.Air shipments may also be covered by marine cargo insurance or insurance may be purchased from the air carrier.

Export shipments are usually insured against loss, damage, and delay in transit by cargo insurance. Carrier liability is frequently limited by international agreements. Additionally, the coverage is substantially different from domestic coverage. Arrangements for insurance may be made by either the buyer or the seller, in accordance with the terms of sale. Exporters are advised to consult with international insurance carriers or freight forwarders for more information. Although sellers and buyers can agree to different components, coverage is usually placed at 110 percent of the CIF (cost, insurance, freight) or CIP (carriage and insurance paid to) value.

COSTS :

The computation of the actual cost of producing a product and bringing it to market is the core element in determining if exporting is financially viable. Many new exporters calculate their export price by the cost-plus method. In the cost-plus method of calculation, the exporter starts with the domestic manufacturing cost and adds administration, research and development, overhead, freight forwarding, distributor margins, customs charges, and profit.

The effect of this pricing approach may be that the export price escalates into an uncompetitive range gives a sample calculation. It clearly shows that if an export product has the same ex-factory price as the domestic product, its final consumer price is considerably higher once exporting costs are included.

Marginal cost pricing is a more competitive method of pricing a product for market entry. This method considers the direct, out-of-pocket expenses of producing and selling products for export as a floor beneath which prices cannot be set without incurring a loss. For example, additional costs may occur due to product modification for the export market that accommodates different sizes, electrical systems, or labels. On the other hand, costs may decrease if the export products are stripped-down versions or made without increasing the fixed costs of domestic production.

Other costs should be assessed for domestic and export products according to how much benefit each product receives from such expenditures. Additional costs often associated with export sales include :

• Market research and credit checks.
• Business travel.
• International postage, cable, and telephone rates.
• Translation costs.
• Commissions, training charges, and other costs involving foreign representatives.
• Consultants and freight forwarders.
• Product modification and special packaging.

After the actual cost of the export product has been calculated, the exporter should formulate an approximate consumer price for the foreign market.

TRADE SHOW PREPARATION :

Planning for trade shows needs to start at least a few months in advance. If you wish to have a significant presence at strategic or influential show, you should plan to set up a booth, either on your own or with a key partner. Booth space is limited and must be reserved in advance. Usually a fee is involved, which varies according to square footage and location on the exhibition floor. Designing the portable booth can take a few months, so plan ahead.

Here are some tips for getting maximum benefit from your trade show appearances.

a) Before the Show

A major trade show requires considerable advance preparation and, if you aren't ready, can present a logistical nightmare. You must develop a solid plan and monitor your progress vigilantly.

1. Evaluate and select trade shows carefully.
Participating in a show can require a major investment of time, money, and resources. Be tough in your evaluation of a show's worthiness. Are the attendees likely customers for your organization? Exposure to a few hundred very qualified targets is better than exposure to thousands of generalists who are very unlikely to be interested in your business.

2. Read the show manual.
Before you do anything, contact the organizers of the show to find the show's manual. Everything you need to know about the show should be there, including a proposed or final schedule, registration information and forms, floor plans, exhibit specifications, invitations for potential speakers, and other important details.

3. Identify your goals.
Be specific about the things you want to accomplish as a result of your participation in the show. Do you want to increase visibility, gain exposure to a large number of customers who might be interested in your products, or check out the competition? Concrete goals are important to determine the value of the trade show to your organization.

4. Define measurements of success.
For each goal, determine a way to measure its success. Make these measurements as specific as possible. You could plan to hand out 1000 brochures, obtain contact information for at least 200 prospects, and take a key editor out to lunch. These benchmarks will help you decide whether the show was worth the expense.

5. Put your show plan in writing.
The plan should include a workable schedule, a comprehensive list of preparation activities, and an individual assigned for each task. You cannot leave things to chance, or else Murphy's Law (Whatever can go wrong, will go wrong.) will surely prevail!

6. Develop a key message for your booth exhibit.
Like good advertising, a good exhibit clearly communicates one major message. This draws in more prospects to your booth than an unfocused cacophony of messages.

7. Design an open, inviting booth.
An open booth design, with no tables obstructing access, invites attendees to come in. Your logo should be big enough to be seen from a good distance. Maximize "walking around" space by mounting brochure displays on walls. Use interesting graphics to draw people's attention. For demos, laptops and flat-screen monitors are space-efficient. If space permits, provide comfortable chairs to encourage prospects to linger. A portable booth should be reasonably easy to set up and take down.

8. Advertise your show participation.
Use tag lines such as: "see us at Booth 1525 at the Linux World Conference" in news releases and other communications leading up to the show (even if those releases are about something unrelated). Write a news release announcing show-related news. Invite editors to stop by the booth, or set up appointments between them and your spokespeople.

9. Order all necessary supplies, including brochures and giveaways.
If your marketing collateral needs to be updated or redesigned, take care of this early. You don't want to run the risk of having no brochures to hand out. Design forms for filling out prospect information—clear forms eliminate guesswork. Consider giveaways to generate attention and a sense of fun. These don't have to be expensive. Pens with your web address and a catchy slogan can be very effective.

10. Design PowerPoint presentations and demos for the booth.
These will draw attendees to your booth and help them learn more about your business. Presentations will allow you to communicate information to many prospects at once.

11. Create a unique identity for your booth staff.
Decide on the dress code for your staff. Matching blazers, T-shirts, or even boutonnieres will make your representatives easily identifiable.

12. Train your exhibit staff before each show.
This is very important! Your staff needs to know what is expected of them. They need to be briefed on all new programs and initiatives that should be emphasized. They must know how to run the demos and presentations, and they should know some basic trouble shooting. Nothing looks more unprofessional then demos that don't work.

b) During the Show

1. Set up a rotating booth schedule for your staff.
Your staff needs breaks for lunch and relaxing. They will be more cheerful if they don't have stay at the booth all day long.

2. Remind staff to record all prospect information.
Encourage your staff to record everything they can learn about a prospect's needs and experience with Linux. Stress the importance of getting phone numbers and email addresses. (Creating an information form as suggested above will make this easier.)

3. Encourage staff to greet people warmly and smile!
Amazingly, this is often forgotten. An inviting attitude can give a valuable first impression. The staff should avoid having their backs to the entrance, or taking phone calls while on duty. A friendly greeting to passersby may encourage them to stop rather than simply walk by. Staff who are uniformly courteous and helpful, knowledgeable about all aspects of the industry, and responsive to requests will make a very good impression.

c) After the Show

1. Send requested literature immediately.
Send requested material within 24 hours. A quick response is your second opportunity to make a favorable impression. (Your performance in the booth is the first.)

2. Include a teaser on the envelope or in the email subject line.
Be sure to mention your organization's name and the name of the conference on the outside of the envelope or in the email subject line, so they know your letter is not junk mail.

3. Help your prospects take the next step.
Make sure your literature packages make responding easy for prospects by including your web address and information on the opportunities available to them.

4. Keep track of your prospects.
Nothing signals the success of your trade-show effort better than having prospects purchase your products or having the media spotlight your efforts. Keep a record of the customers who found out about your products through the trade show. Use these results to demonstrate the show's return on investment.

5. Analyze "lessons learned."
After each show, evaluate what went well and what didn't. Critique each aspect of the show and ask others for comments. Pay special attention to feedback regarding communication to prospective customers. The "lessons learned" will help improve your efforts in future shows.

Next, we will review the major topics we have covered in this guide to public relations. This final chapter will serve as a quick reference guide to the major elements of public relations. Use this guide to develop a successful public relations campaign.