COMMUNICATIONS
COMMUNICATIONS
Although nothing substitutes for personal contact when developing an international marketing structure, this might not always be possible. Therefore, the tone of initial written communications is critical. It often makes the difference between a profitable, long-term arrangement and a lost opportunity.
The Introductory Letter or Telex
Most often you can write your introductory letter or telex in English.With the exception of Latin America, English has become the language of international business,but use simple words. If you are translating or transmitting the letter or telex into a foreign language, make susre you have it translated back to English by a third before sending it.However proficient a person is in the other language, funny things can happen in translation.
From the beginning, establish your company's favorable reputation, and explain the relationship that you seek. Describe the product you want to market (export) or to purchase (import). Propose a personal meeting and offer the buyer a visit to your firm during the person's next visit to the United States. Ask for a response to your letter. Figure 3-1 shows a sample letter of introduction.
Follow-up Communications
As technology improves, more alternative forms of communications become available, and choosing the best alternative might result in the competitive difference. Successful importing/exporting depends on reliable two-way communication. It is critical in establishing and running an import/export marketing network.
Telephone
Speech is the fastest way to convey ideas and receive answers. Voice communications allow for immediate feedback—quick response to fast-breaking problems or opportunities. Worldwide, you can dial 95 countries directly. The rates for international telephone service range from about $1.00 to $2.00 for the first minute, (depending on the time of day) and about $1.00 a minute for each additional minute. While international telephone can be expeditious, it can be very expensive if you have a lot to say.
Telex
Telex is the most common transmitter of printed material. Currently Telex terminals are in over 2 million government and business offices worldwide. Telex units can receive information automatically, even when unattended. Handle all your communications over a Direct Distance Dial(DDD) phone line. A dedicated telex terminal costs as little as $1000.00, and they are as easy to use as a typewriter.
Telex charges are based on transmission time—the time you actually use the circuit. It is possible to transmit up to 1800 characters (about 180 words or more) per minute at the price of a telephone call. The carrier charge varies from $1.00 to $3.00 per minute, with service charge costs of about $3.00 per minute.
International record carriers (IRCs), store and forward carriers, or network services can handle a Telex.
IRCs.
These companies handle international telex, cablegrams, and mailgrams. Major IRCs are Western Union, RCA, TRT, ITT, MCI, GRT, and FTCC. No significant differences exist in IRC international telex costs. IRCs are the source for telex numbers.
Store-and-forward.
These carriers use batching techniques and specialize in telex transmission for companies that send five or more messages a day. Examples of store-and-forward carriers are VITEL, IBCS, and IMS. You can save more than 20% on your international telex bill by using one of these companies.
Network Services.
These companies provide electronic mail services and specialize in bringing organizations and people together who have similar interests.
By custom, Telex messages are brief. Standard abbreviations and terminology are widely understood.
When you compare
TKS UR TX N TEL CALL RCNTLY. SEE U AT ARPRT TUES 3.9.88
With
THANKS FOR YOUR TELEX MESSAGE AND TELEPHONE CALL RECENTLY. I WILL SEE YOU AT THE AIRPORT ON TUESDAY, THE THIRD OF SEPTEMBER, 1988.
You can easily see the need for abbreviations.
When you draft messages that include tables or other columnar information, consider that each space is a chargeable character up to the carriage return. The general rule is that horizontal space is expensive, but vertical space is not. It takes but 2 characters—carriage return and line feed—to skip a line. Use line skipping generously to separate logical units and to give length to the received message to make it easier to handle.
Cables
You can send international mailgrams, telegrams, or cables anywhere mail goes. It requires a complete mailing address, including any postal codes. Again, IRCs handle telex, cablegrams, and mailgrams. As stated earlier, the IRCs are Western Union, RCA, TRT, ITT, MCI, GRT, and FTCC.
Cables are sent electronically, often from telex, to the major city nearest the recipient. There, the message might be telephoned and mailed, mailed only, or (in a few locations) delivered by messenger. Cables don't offer proof of delivery that a telex message does, and because of the extra handling, cables are significantly more expensive than telex messages. But you can
send a cable to anyone, anywhere. Rates for cables vary by destination from $.14 to $.35 per word or character string. You can send cables via MARISAT (Maritime Satellite) to the Master, crew member, or passengers of most commercial vessels.
Facsimile
FAX, or telecopier service, has grown the fastest in the 1980s and, in many cases, it offers a large savings over telex. An advantage of FAX over telex is that you can transmit any image of up to 8 1/2 x 14 inches directly to the receiving unit. You can send letters, pictures, contracts, forms, catalog sheets, drawings, and illustrations—anything that would reproduce in a copy machine.
<em>History Note
FAX is not new. Alexander Bain, a Scottish clockmaker, invented it over a century ago, in 1842. His devise used a pendulum that swept a metal point over a set of raised, metal letters. When the point touched a letter, it created an electrical charge that traveled down a telegraph wire to reproduce on paper the series of letters the pendulum had touched. Wire-service photos were transmitted by FAX as early as 1930. The United States Navy used them aboard ship during World War II for the transmission of weather data.
</em>
The earliest FAX machines were clunkers and were very expensive, taking more than 10 minutes to send a single page and costing more than $18,000. Today, the more than 600,000 FAX machines in the United States are expected to increase in number to more than 1,000,000 by 1990. The reason for the explosion is the improvement in cost and transmission time. Dedicated facsimile terminals now cost as little as $1,300.00 and you can lease them for about $50.00 a month. Their speed equates favorably to telex. On the down side, there are still fewer FAX machines worldwide than telex and, if your recipient has none, you can't use yours.
FAX charges include a per-page fee, a small setup charge, and any actual telephone line charges incurred. Worldwide, FAX transmits over the ordinary voice-phone network. Several private bureaus manage FAX's worldwide service. Like cable, there is no effective proof of delivery of a FAX document.
Service Bureaus
These companies, available in most large cities, provide the use of their equipment and lines so that you can send and receive telexes and facsimile. Typically, for a nominal monthly fee (as little as $10.00 a month), an import/export firm can use the service bureau's telex number on letterhead and business cards, and they can use their equipment to transmit and receive information. Telephone dictation often is available also.
Communications Equipment
Data transmission will grow rapidly throughout the 1990s. As an international marketing network develops, data must flow back and forth among the import/exporter and agencies, distributors, and customers. You must decide whether you'll be wiser to purchase your own equipment or to use a service bureau. The volume of messages will dictate the break-even point for a growing international import/export organization. If you send less than one message per day, a service company is your best bet.
When your message volume grows to more than one message per day, consider purchasing equipment and transmitting your own messages. Electronic mail is now commonly delivered over international phone lines. You can interface practically any computer (even personal computers) by a modem via a cable, ordinary telepbone, satellite, or microwave to any another computer or word processor anywhere in the world so long as the receiving country does not restrict or prohibit transbor-der data flows. If you have a personal computer, a modem and software package can cost you less than $300.00 for data and telex communications. Keep in mind that if you use your computer as a terminal and a word processor, you will have contention for terminal time.
If competition for personal computer time begins to compete adversely with the word processer or the accountant, consider a dedicated FAX or Telex terminal. Personal ownership of dedicated facsimile or telex machines eliminates service bureau charges; however, you must consider line and equipment capitalization costs.
Hot Communication Tips
1. Write out your message and check it by reading it aloud.
2. Some situations in international business can be frustrating, so take care not to lose your temper and send a "zinger" that you'll regret later. Develop a cordial and professional style, and stick to it at all times. Try to draft replies in the morning when you are fresh. Whenever possible let a second party read each message.
3. Send messages earlier in the day and earlier in the week to avoid the heavy calling periods and possible delay of your message.
4. Keep your messages brief, but avoid any abbreviation that might not be understood.
5. Remember that Telex is UPPER CASE ONLY and does not provide for dollar signs ($) or percent signs (%), among others. For $ use USDOL, and for % use PCT.
6. Cables are generally more expensive than telex messages. You are charged for them by the word, and words have a maximum of 10 characters. Eleven characters count as 2 words.
7. Use mailgrams rather than telegrams in the United States of America. They're less expensive and usually just as fast.
8. Try to reply to every telex message the same day you receive it, even if only to give a date when you will send a more complete reply.
9. Use "ATTN: Name" rather than "DEAR Name" and almost all telex messages, by custom, end with "REGARDS," "BEST REGARDS," or occasionally "CORDIALLY."
10. If you use an IRC (ITT, MCI, RCA, etc.) for a telex number, make sure you provide your own phone line. If the IRC bills you for line access, you usually pay double the phone company costs.
11. For direct telex connections, use the carrier that provides you with your telex number. Using another carrier will add an interconnect surcharge to your call.
12. Once you recoup your initial capital investment, shop around for services. Don't get stuck with one service. You can recoup a minimum service charge quickly by switching to a company that can lower the cost of paper mail or telex services.
13. Though print lacks speed (compared to voice), it provides written documentation that can be read and reread at the reader's pace and schedule.
Although nothing substitutes for personal contact when developing an international marketing structure, this might not always be possible. Therefore, the tone of initial written communications is critical. It often makes the difference between a profitable, long-term arrangement and a lost opportunity.
The Introductory Letter or Telex
Most often you can write your introductory letter or telex in English.With the exception of Latin America, English has become the language of international business,but use simple words. If you are translating or transmitting the letter or telex into a foreign language, make susre you have it translated back to English by a third before sending it.However proficient a person is in the other language, funny things can happen in translation.
From the beginning, establish your company's favorable reputation, and explain the relationship that you seek. Describe the product you want to market (export) or to purchase (import). Propose a personal meeting and offer the buyer a visit to your firm during the person's next visit to the United States. Ask for a response to your letter. Figure 3-1 shows a sample letter of introduction.
Follow-up Communications
As technology improves, more alternative forms of communications become available, and choosing the best alternative might result in the competitive difference. Successful importing/exporting depends on reliable two-way communication. It is critical in establishing and running an import/export marketing network.
Telephone
Speech is the fastest way to convey ideas and receive answers. Voice communications allow for immediate feedback—quick response to fast-breaking problems or opportunities. Worldwide, you can dial 95 countries directly. The rates for international telephone service range from about $1.00 to $2.00 for the first minute, (depending on the time of day) and about $1.00 a minute for each additional minute. While international telephone can be expeditious, it can be very expensive if you have a lot to say.
Telex
Telex is the most common transmitter of printed material. Currently Telex terminals are in over 2 million government and business offices worldwide. Telex units can receive information automatically, even when unattended. Handle all your communications over a Direct Distance Dial(DDD) phone line. A dedicated telex terminal costs as little as $1000.00, and they are as easy to use as a typewriter.
Telex charges are based on transmission time—the time you actually use the circuit. It is possible to transmit up to 1800 characters (about 180 words or more) per minute at the price of a telephone call. The carrier charge varies from $1.00 to $3.00 per minute, with service charge costs of about $3.00 per minute.
International record carriers (IRCs), store and forward carriers, or network services can handle a Telex.
IRCs.
These companies handle international telex, cablegrams, and mailgrams. Major IRCs are Western Union, RCA, TRT, ITT, MCI, GRT, and FTCC. No significant differences exist in IRC international telex costs. IRCs are the source for telex numbers.
Store-and-forward.
These carriers use batching techniques and specialize in telex transmission for companies that send five or more messages a day. Examples of store-and-forward carriers are VITEL, IBCS, and IMS. You can save more than 20% on your international telex bill by using one of these companies.
Network Services.
These companies provide electronic mail services and specialize in bringing organizations and people together who have similar interests.
By custom, Telex messages are brief. Standard abbreviations and terminology are widely understood.
When you compare
TKS UR TX N TEL CALL RCNTLY. SEE U AT ARPRT TUES 3.9.88
With
THANKS FOR YOUR TELEX MESSAGE AND TELEPHONE CALL RECENTLY. I WILL SEE YOU AT THE AIRPORT ON TUESDAY, THE THIRD OF SEPTEMBER, 1988.
You can easily see the need for abbreviations.
When you draft messages that include tables or other columnar information, consider that each space is a chargeable character up to the carriage return. The general rule is that horizontal space is expensive, but vertical space is not. It takes but 2 characters—carriage return and line feed—to skip a line. Use line skipping generously to separate logical units and to give length to the received message to make it easier to handle.
Cables
You can send international mailgrams, telegrams, or cables anywhere mail goes. It requires a complete mailing address, including any postal codes. Again, IRCs handle telex, cablegrams, and mailgrams. As stated earlier, the IRCs are Western Union, RCA, TRT, ITT, MCI, GRT, and FTCC.
Cables are sent electronically, often from telex, to the major city nearest the recipient. There, the message might be telephoned and mailed, mailed only, or (in a few locations) delivered by messenger. Cables don't offer proof of delivery that a telex message does, and because of the extra handling, cables are significantly more expensive than telex messages. But you can
send a cable to anyone, anywhere. Rates for cables vary by destination from $.14 to $.35 per word or character string. You can send cables via MARISAT (Maritime Satellite) to the Master, crew member, or passengers of most commercial vessels.
Facsimile
FAX, or telecopier service, has grown the fastest in the 1980s and, in many cases, it offers a large savings over telex. An advantage of FAX over telex is that you can transmit any image of up to 8 1/2 x 14 inches directly to the receiving unit. You can send letters, pictures, contracts, forms, catalog sheets, drawings, and illustrations—anything that would reproduce in a copy machine.
<em>History Note
FAX is not new. Alexander Bain, a Scottish clockmaker, invented it over a century ago, in 1842. His devise used a pendulum that swept a metal point over a set of raised, metal letters. When the point touched a letter, it created an electrical charge that traveled down a telegraph wire to reproduce on paper the series of letters the pendulum had touched. Wire-service photos were transmitted by FAX as early as 1930. The United States Navy used them aboard ship during World War II for the transmission of weather data.
</em>
The earliest FAX machines were clunkers and were very expensive, taking more than 10 minutes to send a single page and costing more than $18,000. Today, the more than 600,000 FAX machines in the United States are expected to increase in number to more than 1,000,000 by 1990. The reason for the explosion is the improvement in cost and transmission time. Dedicated facsimile terminals now cost as little as $1,300.00 and you can lease them for about $50.00 a month. Their speed equates favorably to telex. On the down side, there are still fewer FAX machines worldwide than telex and, if your recipient has none, you can't use yours.
FAX charges include a per-page fee, a small setup charge, and any actual telephone line charges incurred. Worldwide, FAX transmits over the ordinary voice-phone network. Several private bureaus manage FAX's worldwide service. Like cable, there is no effective proof of delivery of a FAX document.
Service Bureaus
These companies, available in most large cities, provide the use of their equipment and lines so that you can send and receive telexes and facsimile. Typically, for a nominal monthly fee (as little as $10.00 a month), an import/export firm can use the service bureau's telex number on letterhead and business cards, and they can use their equipment to transmit and receive information. Telephone dictation often is available also.
Communications Equipment
Data transmission will grow rapidly throughout the 1990s. As an international marketing network develops, data must flow back and forth among the import/exporter and agencies, distributors, and customers. You must decide whether you'll be wiser to purchase your own equipment or to use a service bureau. The volume of messages will dictate the break-even point for a growing international import/export organization. If you send less than one message per day, a service company is your best bet.
When your message volume grows to more than one message per day, consider purchasing equipment and transmitting your own messages. Electronic mail is now commonly delivered over international phone lines. You can interface practically any computer (even personal computers) by a modem via a cable, ordinary telepbone, satellite, or microwave to any another computer or word processor anywhere in the world so long as the receiving country does not restrict or prohibit transbor-der data flows. If you have a personal computer, a modem and software package can cost you less than $300.00 for data and telex communications. Keep in mind that if you use your computer as a terminal and a word processor, you will have contention for terminal time.
If competition for personal computer time begins to compete adversely with the word processer or the accountant, consider a dedicated FAX or Telex terminal. Personal ownership of dedicated facsimile or telex machines eliminates service bureau charges; however, you must consider line and equipment capitalization costs.
Hot Communication Tips
1. Write out your message and check it by reading it aloud.
2. Some situations in international business can be frustrating, so take care not to lose your temper and send a "zinger" that you'll regret later. Develop a cordial and professional style, and stick to it at all times. Try to draft replies in the morning when you are fresh. Whenever possible let a second party read each message.
3. Send messages earlier in the day and earlier in the week to avoid the heavy calling periods and possible delay of your message.
4. Keep your messages brief, but avoid any abbreviation that might not be understood.
5. Remember that Telex is UPPER CASE ONLY and does not provide for dollar signs ($) or percent signs (%), among others. For $ use USDOL, and for % use PCT.
6. Cables are generally more expensive than telex messages. You are charged for them by the word, and words have a maximum of 10 characters. Eleven characters count as 2 words.
7. Use mailgrams rather than telegrams in the United States of America. They're less expensive and usually just as fast.
8. Try to reply to every telex message the same day you receive it, even if only to give a date when you will send a more complete reply.
9. Use "ATTN: Name" rather than "DEAR Name" and almost all telex messages, by custom, end with "REGARDS," "BEST REGARDS," or occasionally "CORDIALLY."
10. If you use an IRC (ITT, MCI, RCA, etc.) for a telex number, make sure you provide your own phone line. If the IRC bills you for line access, you usually pay double the phone company costs.
11. For direct telex connections, use the carrier that provides you with your telex number. Using another carrier will add an interconnect surcharge to your call.
12. Once you recoup your initial capital investment, shop around for services. Don't get stuck with one service. You can recoup a minimum service charge quickly by switching to a company that can lower the cost of paper mail or telex services.
13. Though print lacks speed (compared to voice), it provides written documentation that can be read and reread at the reader's pace and schedule.
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