Advertising

Advertising is one of the main methods of promotion. Its aim is to increase sales by making a product or services known to a consumer and to persuade the consumer to buy it.

Advertising is often designed and managed by advertising agencies. Large companies usually use advertising agencies to promote their products and the company’s image to the target customers.

The account is the contract between the client company and the agency to develop an advertising camping. The client allocates a budget, an amount of money and the target. The agency and the client usually discuss the brief, which is a statement of the client’s objectives, as well as the information the company wishes to reach to the consumers.

After that the agency is ready to start work. An advertising campaign consists of a series of advertisements (adverts, or ad’s) which are run in various media.

The most common types of advertising media include: broadcasting TV, cinema, radio), press newspaper, magazines), printed material (brochures, leaflets, catalogues, flyers), electronic (Internet), display, posters, boardings/billboards, vehicles, point of sale, others (trade fairs, word-of mouth, packaging)

Corporate advertising is not concerned with increasing sales of a particular product or service. Its aim is to present to the public the brand image. Public relations (PR) experts organize activities which generate positive publicity for companies.

Contract

A Contract forms the basis of a transaction between the Buyer and the Sellers. A Contract is an a agreement made by two or more persons that is enforceable by law. As a rule, the Contract consists of the main elements such as the subject of the Contact, the terms of payment, the terms of the delivery, guarantees, packing and marking, arbitration, Insurance, and other conditions. In foreign trade transaction a contract is drawn up to give legal expression to the intentions of the partners and to guarantee that the obligations contained in the contract will be fulfilled. According to the purpose and contents, contracts can cover: goods, services, licenses, patents technology and know-how. Here is an example:

Contract № 5/1

London 14^th January, 2008

Ukrexport, Kyiv, herein after referred to as the Seller and British Manganese Ltd, London, herein after referred to as the Buyer, hereby agreed as follows:

The Seller has sold and the Buyer has bought manganese of Ukraine origin on CIF terms from one of the Black Sea ports at the Seller’s option. The price for the goods is understood to be per metric ton, packing included. The quantity is understood to at the Seller’s option.

Within five days after the receipt of the Seller’s notification by cable that the goods are ready for shipment, the Buyer is to open by cable with the Ukrainian Bank for Foreign Trade, Kyiv, an irrevocable, confirmed and visible Letter of Credit in favour of the Seller for the full value of the goods plus 5% to cover the option. The letter of credit is to be valid for 90 days, with the right of extension, if required, by the Seller. The payment of the goods is to made in US dollars for 100% (hundred per cent) of the invoice value of management on presentation to the Ukrainian Bank for Foreign Trade, Kyiv, of the following documents:

• Invoice in 3 copies;

• Seller’s Certificate of Weight;

• Set of Bills of Lading;

• In the event of devaluation of the US dollar under the present Contract both parties have the right to renegotiate the price of the goods.