Business Communication

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B1 business communication

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Business Communication

  1. 1. CL4 Language and Culture for Business Prof. Peter Cullen Moduel III B1 Business Communication www.cl4englishlistening.words.com
  2. 2. The Communication Process and Areas of Business Communication Communication is a natural form of social behaviour that is largely involuntary and tied to the very existence of a company expressing: Identity Values Relationships to the outside Information exchange is increasing – creating background noise
  3. 3. Companies and Communication Companies and their stakeholders form a process of significance creation about: • Economic and financial values • Ethical and social values • Commerical values • Symbolic values Business and stakeholders are inter-dependent A business is a:socio-technical partially open pluri-purpose economic SYSTEM
  4. 4. Business as a System A business is a: socio-technical partially open pluri-purpose economic SYSTEM It is also a: organic self-regenerating relational cognitive directed SYSTEM A Business is a vital system
  5. 5. Companies and Stakeholders Stakeholders are people and groups who hold an interest in the existance and performance of a company. Secondary Stakeholders Primary Stakeholders local institutions community property financiers employees suppliers Company directors the public interest clients competition groups business partners representation groups
  6. 6. The New Competetive Environment Contributing factors: economic globalisation technological innovation key factors of the marketing environment increasing pressure from institutions and civil society on the activities of businesses
  7. 7. Economic Globalisation Promotes the circulation of capital, goods, and information Creates uniform purchasing behaviour and economies of scale Promotes market inter-dependence and super- national markets In terms of strategy: The business environment is more complex Competition is stiffer There are more variable to control New key factors for success emerge
  8. 8. Economic Globalisation This means business communication must: • Face a wider range of agents in the communications network • Plan for inceasingly complex interaction • Develop specifically tailored policies as well as general strategies • View brand management as an integral policy in the portfolio of strategy options Group A company Group B Group C
  9. 9. Technological Evolution Promotes innovation in products and processes, inducing a convergent trend in the sector and creating truly new markets This can lead to adoption of innovative responses to market needs (market-pull innovation) or may lead to truly new systems of supply (company-push innovation) ICTs and e-business are changing the paradigm Market Market Innovation need Company Innovation supply
  10. 10. Marketing Environments Concerns: the evolution of consumption and consumers the demand for personal and personalised relationships between client and company increase power to large distributors branded/unbranded dualism develoment in communications Demographic change influences markets (population ages) Social change influences markets: Consumption has become a way of expressing values,identity, and individuality
  11. 11. The Marketing Environment Today: Large marketing oriented companies increasingly look towards emerging consumer markets – more so than toward mature consumer markets Consumers demand greater service and personalisation in supply Mass production/mass consumption paradigm is outdated – today production systems focus on the technology-services paradigm Rise of large distributors pushes companies to direct marketing strategies and techniques to meet their needs – encroaching on brand policy (Selex, Conad)
  12. 12. Institutional and Civil Society Pressure Key question: sustainability and sustainable development Social responsibilty of business: companies must internalise the objectives of: city or regional development employment levels human resources development (training) community outreach environmental protection (local, regional, global) Action groups influence company success in these areas i.e. Greenpeace, Consumer Rights Org.
  13. 13. Institutional Communication Macro-area communication applied to: distinctive facets of the company (vision, mission, company values) the set of relations created in the contexts of the organisation, economic competition, social and natural aspects This communication is differentiated according to target group. The company must adopt responsable and differentiated behaviour BUT Institutional Communication is an expression of synthesis and sustains the strategic path of the company
  14. 14. Institutional Communication Meta-objectives: To delineate, reinforce, or modify company positioning – total image Stimulate favourable attitude (consensus) toward the company by its 1° and 2° stakeholders Create a climate of credibility, legitimacy, trust Contribute to the enrichment of the company’s reputational patrimony, in terms of goodwill (intangible asset)
  15. 15. Instruments of Institutional Communication Public affairs Crisis management “internal” communication Institutional advertising/promotion (publicity ≠ advertising) Public relations (sponsorship etc.) Publication of the company balance sheet Media relations Consumer relations Investor relations http://www.bp.com
  16. 16. Institutional Communication at British Petroleum
  17. 17. Economic and Financial Communication Interested parties: shareholders creditors clients state revenue agencies (fiscal structures) the financial community – particularly when the company is listed Stricter regulation of balance sheet reporting (after ENRON) Faster flow of financial capital between capital markets = Absolute necessity of more, broader, deeper financial communication with stakeholders
  18. 18. Economic and Financial Communication Investor relations: specialised in relations with investors and actors in the financial markets, particularly analysts and portfolio managers Information needs are: Legislative requirements External needs – of market intermediaries (analysts, managers etc. Internal needs – of interested stakeholders = Two levels of communications: Basic = obligatory for financial transparency Voluntary = to satisfy stakeholders informational requirements
  19. 19. Economic and Financial Communication Key Concept: TRANSPARENCY Financial intermediaries and managers require increasing amounts of information regarding company’s activities to assist clients and investors RISK MANAGEMENT Risk affects investment – transparency affects trust government regulation enforces transparency but does not guarantee trust G. Bush at Trust is a long-term investment signing of Sarbanes- Oxley Act 2002
  20. 20. Marketing Communication Management of relationship with the market (intermediate and final clients) aimed at improving the perceived value of the company and its ability to meet the needs of selected demand segments Fundamental to market-driven companies to improve defendable competetive advantage and the ability to create value in the medium-long term Two fundamental dimensions: Relationship Content
  21. 21. Relationship in Marketing Communication Managerial process to create and activate relationships involving the business, distributors, and end-users (final clients) Aimed at: commercial intermediaries (sales reps., wholesalers, purchasing centres, retailers etc.) = push strategies involving the actor who makes the transaction purchaser/consumer (the actor who actually uses the good or service) = pull strategies supply side partners (research institutes, co-designers, IT consultants) = relational logic rather than transactional logic
  22. 22. Relationship in Marketing Communication Two models: mass communication one-to-many transmission of the message TV, Radio, Newspapers etc. works with both differentiated and undifferentiated marketing one-to-one communication two-way involvement in the message telephone, face-to-face, other? aimed at focused and personalised markets
  23. 23. Content in Marketing Communication The customer is at the centre of the company’s interest Marketing involved at transmitting the marketing concept Production oriented typical where demand > supply. Needs are obvious. Focus is on distribution rather than communication Sales oriented persuasive communication aimed at convincing the market to purchase (if meets real demand need) Market oriented customer satisfaction at the centre PV > EV; RV > 0 (PV= perceived value; EV= exchange value; RV= rendered value)
  24. 24. Content and Marketing Communication By favouring the point of view of the client rather than the company, marketing communication becomes one of the founding components of services offered to the target market – creating perceived value product offering. This allows the client to understand the system of attributes associated with the good or service AND Enriches this system with symbolic structures such as BRAND IMAGE
  25. 25. Objectives of Marketing Communication Economic objectives • aimed at modifying the demand curve d1 d2 p1 q1 q2 The communication mix stabilises sales over time (mitigating seasonal differences) Increase of customer value (extending customer interaction with the product)
  26. 26. Economic Objectives On the supply side, given perfect competition, there are some particular effects at the sector level: Evolution toward monopolistic competition with a large number of competitors and highly differentiated products = marketing comm highlights diffs. The only companies autonomous in price show in town Evolution toward differentiated oligopoly = communication produces high barriers to market entry The increasing sales volume and business reinforcing brand loyalty district
  27. 27. Communicational Objectives Feedback: crossing the “perceptivity line” Subjects apply attention selectively The communications agent must influence the subjects “perceptive filters” to activate perception Objectives: non-behavioural response behavioural response evaluational response relational response
  28. 28. Communicational Objectives Cognitive objectives Emotional objectives Gl Top Strength of awareness ob of the a lb mind ra nd Unaided recall aw a Aided recall re ne ss Brand recognition
  29. 29. Communicational Objectives Behavioural response objectives Behavioural responses Sphere of Search for information action Purchase Consumption Word of mouth Non-behavioural responses Internal sphere Rational Emotional Ideal
  30. 30. Communicational Objectives Valutative response objectives based on behaviour = a mental state that describes a subject’s relatively stable evaluation of brands, products, companies, ideas, and included rational, emotional, and behavioural components. The learning process shapes behaviour Communication may influence learning through: Association Reinforcement Motivation
  31. 31. Communicational Objectives The Foote, Cone, and Belding model High degree of involvement II I Learn Feel Feel Learn Do Do Intellectual Emotional learning learning Do Do Feel Learn Learn Feel IV III Low degree of involvement
  32. 32. Communicational Objectives Relational response objectives = constructed from valutative response base Principal phases of the relational life cycle: Satisfaction Individual factors Trust Structure of needs Behavioural loyalty Taste and innate aesthetic preferences Mental loyalty Value systems Loyalty Consumer characteristics Situational factors Social group influences Media used and messages communicated Broader marketing context
  33. 33. Communicational Objectives Flow chart of communications objectives Relational Objectives Valutative objectives Non-behavioural Behavioural objectives objectives Influencing factors individual situational

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