1. 11
LAZ/CL4 Language andLAZ/CL4 Language and
Culture for BusinessCulture for Business
Prof. Peter CullenProf. Peter Cullen
Module I B1Module I B1
Business CommunicationBusiness Communication
www.cl4englishlistening.wordpress.comwww.cl4englishlistening.wordpress.com
2. 22
The Communication Process andThe Communication Process and
Areas of BusinessAreas of Business
CommunicationCommunication
• Communication is a natural form of social behaviour thatCommunication is a natural form of social behaviour that
is largely involuntary and tied to the very existence of ais largely involuntary and tied to the very existence of a
company expressing:company expressing:
• IdentityIdentity
• ValuesValues
• Relationships to the outsideRelationships to the outside
• Information exchange is increasing – creatingInformation exchange is increasing – creating
background noisebackground noise
3. 33
Companies and CommunicationCompanies and Communication
• Companies and theirCompanies and their stakeholdersstakeholders form a process of significanceform a process of significance
creation about:creation about:
– Economic and financial valuesEconomic and financial values
– Ethical and social valuesEthical and social values
– Commerical valuesCommerical values
– Symbolic valuesSymbolic values
• Business and stakeholders are inter-dependentBusiness and stakeholders are inter-dependent
• AA businessbusiness is a:socio-technicalis a:socio-technical
partially openpartially open
pluri-purpose economicpluri-purpose economic
SYSTEMSYSTEM
4. 44
Business as a SystemBusiness as a System
• AA businessbusiness is a:is a: socio-technicalsocio-technical
partially openpartially open
pluri-purpose economicpluri-purpose economic
SYSTEMSYSTEM
It is also a:It is also a:
organicorganic
self-regeneratingself-regenerating
relationalrelational
cognitivecognitive
directeddirected
SYSTEMSYSTEM
A Business is aA Business is a vitalvital systemsystem
5. 55
Companies and StakeholdersCompanies and Stakeholders
• Stakeholders are people and groups who hold an interest inStakeholders are people and groups who hold an interest in
the existance and performance of a company.the existance and performance of a company.
Company
Primary Stakeholders
financiersproperty
directors
clients
business partners
competition
suppliers
employees
Secondary Stakeholders
institutions
the public
local
community
interest
groups
representation groups
6. 66
The New Competetive EnvironmentThe New Competetive Environment
• Contributing factors:Contributing factors:
economic globalisationeconomic globalisation
technological innovationtechnological innovation
key factors of the marketingkey factors of the marketing
environmentenvironment
increasing pressure from institutionsincreasing pressure from institutions
and civil society on the activities ofand civil society on the activities of
businessesbusinesses
7. 77
Economic GlobalisationEconomic Globalisation
• Promotes the circulation of capital, goods, andPromotes the circulation of capital, goods, and
informationinformation
• Creates uniform purchasing behaviour and economies ofCreates uniform purchasing behaviour and economies of
scalescale
• Promotes market inter-dependence and super-nationalPromotes market inter-dependence and super-national
marketsmarkets
In terms of strategy:In terms of strategy:
• The business environment is more complexThe business environment is more complex
• Competition is stifferCompetition is stiffer
• There are more variables to controlThere are more variables to control
• New key factors for success emergeNew key factors for success emerge
8. 88
Economic GlobalisationEconomic Globalisation
• This means business communication must:This means business communication must:
– Face a wider range of agents in theFace a wider range of agents in the
communications networkcommunications network
– Plan for inceasingly complex interactionPlan for inceasingly complex interaction
– Develop specifically tailored policies as wellDevelop specifically tailored policies as well
as general strategiesas general strategies
– View brand management as an integral policyView brand management as an integral policy
in the portfolio of strategy optionsin the portfolio of strategy options
company
Group A
Group CGroup B
9. 99
Technological EvolutionTechnological Evolution
• Promotes innovation in products and processes, inducingPromotes innovation in products and processes, inducing
a convergent trend in the sector and creating truly newa convergent trend in the sector and creating truly new
marketsmarkets
• This can lead to adoption of innovative responses toThis can lead to adoption of innovative responses to
market needs (market needs ( market-pull innovationmarket-pull innovation ) or may lead to) or may lead to
truly new systems of supply (truly new systems of supply ( company-push innovationcompany-push innovation ))
ICTs and e-business are changing the paradigmICTs and e-business are changing the paradigm
Company
Market Market
Innovation need
Innovation supply
10. 1010
Marketing EnvironmentsMarketing Environments
• Concerns:Concerns:
the evolution of consumption and consumersthe evolution of consumption and consumers
the demand for personal and personalisedthe demand for personal and personalised
relationships between client and companyrelationships between client and company
increase power to large distributorsincrease power to large distributors
branded/unbrandedbranded/unbranded dualismdualism
development in communicationsdevelopment in communications
Demographic change influences marketsDemographic change influences markets
(population ages)(population ages)
Social change influences markets:Social change influences markets:
Consumption has become a way of expressingConsumption has become a way of expressing
values,identity, and individualityvalues,identity, and individuality
11. 1111
The Marketing EnvironmentThe Marketing Environment
• Today:Today:
Large marketing oriented companies increasingly lookLarge marketing oriented companies increasingly look
towardstowards emerging consumer marketsemerging consumer markets – more so than– more so than
towardtoward mature consumer marketsmature consumer markets
• Consumers demand greater service and personalisationConsumers demand greater service and personalisation
in supplyin supply
• Mass production/mass consumptionMass production/mass consumption paradigm is outdatedparadigm is outdated
– today production systems focus on the– today production systems focus on the technology-technology-
servicesservices paradigmparadigm
• Rise ofRise of large distributorslarge distributors pushes companies to directpushes companies to direct
marketing strategies and techniques to meet their needsmarketing strategies and techniques to meet their needs
– encroaching on brand policy (Selex, Conad)– encroaching on brand policy (Selex, Conad)
12. 1212
Institutional and Civil Society PressureInstitutional and Civil Society Pressure
• Key question: sustainability and sustainable developmentKey question: sustainability and sustainable development
• Social responsibilty of business: companies mustSocial responsibilty of business: companies must
internalise the objectives of:internalise the objectives of:
city or regional developmentcity or regional development
employment levelsemployment levels
human resources development (training)human resources development (training)
community outreachcommunity outreach
environmental protection (local, regional,environmental protection (local, regional,
global)global)
• Action groups influence company success in these areasAction groups influence company success in these areas
i.e. Greenpeace, Consumer Rights Org.i.e. Greenpeace, Consumer Rights Org.
13. 1313
Institutional CommunicationInstitutional Communication
• Macro-area communication applied to:Macro-area communication applied to:
distinctive facets of the company (distinctive facets of the company ( vision, mission,vision, mission,
company valuescompany values ))
the set of relations created in the contexts ofthe set of relations created in the contexts of thethe
organisation, economic competition, socialorganisation, economic competition, social and naturaland natural
aspectsaspects
• This communication is differentiated according to targetThis communication is differentiated according to target
group. The company must adoptgroup. The company must adopt responsable andresponsable and
differentiated behaviourdifferentiated behaviour BUTBUT
• Institutional Communication is an expression of synthesisInstitutional Communication is an expression of synthesis
and sustains the strategic path of the companyand sustains the strategic path of the company
14. 1414
Institutional CommunicationInstitutional Communication
• Meta-objectives:Meta-objectives:
• To delineate, reinforce, or modify companyTo delineate, reinforce, or modify company
positioningpositioning – total image– total image
• StimulateStimulate favourable attitudefavourable attitude (consensus) toward(consensus) toward
the company by its 1° and 2° stakeholdersthe company by its 1° and 2° stakeholders
• Create a climate of credibility, legitimacy, trustCreate a climate of credibility, legitimacy, trust
• Contribute to the enrichment of the company’sContribute to the enrichment of the company’s
reputational patrimonyreputational patrimony , in terms of, in terms of goodwillgoodwill
(intangible asset)(intangible asset)
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Instruments of Institutional CommunicationInstruments of Institutional Communication
• Public affairsPublic affairs
• Crisis managementCrisis management
• ““internal” communicationinternal” communication
• Institutional advertising/promotion (publicity ≠ advertising)Institutional advertising/promotion (publicity ≠ advertising)
• Public relations (sponsorship etc.)Public relations (sponsorship etc.)
• Publication of the company balance sheetPublication of the company balance sheet
• Media relationsMedia relations
• Consumer relationsConsumer relations
• Investor relationsInvestor relations
http://www.bp.comhttp://www.bp.com
17. 1717
Economic and Financial CommunicationEconomic and Financial Communication
• Interested parties:Interested parties:
shareholdersshareholders
creditorscreditors
clientsclients
state revenue agencies (fiscal structures)state revenue agencies (fiscal structures)
the financial community – particularly when thethe financial community – particularly when the
company is listedcompany is listed
Stricter regulation of balance sheet reporting (after ENRON)Stricter regulation of balance sheet reporting (after ENRON)
Faster flow of financial capital between capital markets =Faster flow of financial capital between capital markets =
Absolute necessity of more, broader, deeper financial communicationAbsolute necessity of more, broader, deeper financial communication
with stakeholderswith stakeholders
18. 1818
Economic and Financial CommunicationEconomic and Financial Communication
Investor relations: specialised in relations with investorsInvestor relations: specialised in relations with investors
and actors in the financial markets, particularly analystsand actors in the financial markets, particularly analysts
and portfolio managersand portfolio managers
Information needs are:Information needs are:
• Legislative requirementsLegislative requirements
• External needs – of market intermediaries (analysts, managersExternal needs – of market intermediaries (analysts, managers
etc.etc.
• Internal needs – of interested stakeholdersInternal needs – of interested stakeholders ==
Two levels of communications:Two levels of communications:
• Basic =Basic = obligatory for financial transparencyobligatory for financial transparency
• Voluntary =Voluntary = to satisfy stakeholders informational requirementsto satisfy stakeholders informational requirements
19. 1919
Economic and Financial CommunicationEconomic and Financial Communication
• Key Concept: TRANSPARENCYKey Concept: TRANSPARENCY
Financial intermediaries and managers require increasingFinancial intermediaries and managers require increasing
amounts of information regarding company’s activities toamounts of information regarding company’s activities to
assist clients and investors RISK MANAGEMENTassist clients and investors RISK MANAGEMENT
• Risk affects investment – transparency affects trustRisk affects investment – transparency affects trust
government regulation enforces transparency but does notgovernment regulation enforces transparency but does not
guarantee trustguarantee trust
• Trust is a long-term investmentTrust is a long-term investment
G. Bush at
signing of
Sarbanes-
Oxley Act
2002
20. 2020
Marketing CommunicationMarketing Communication
• Management of relationship with the market (Management of relationship with the market ( intermediateintermediate
and final clientsand final clients ) aimed at improving the perceived value of) aimed at improving the perceived value of
the company and its ability to meet the needs of selectedthe company and its ability to meet the needs of selected
demand segmentsdemand segments
• Fundamental toFundamental to market-drivenmarket-driven companies to improvecompanies to improve
defendable competetive advantage and the ability todefendable competetive advantage and the ability to
create value in the medium-long termcreate value in the medium-long term
• Two fundamental dimensions:Two fundamental dimensions:
RelationshipRelationship ContentContent
21. 2121
Relationship in Marketing CommunicationRelationship in Marketing Communication
• Managerial process to create and activate relationshipsManagerial process to create and activate relationships
involving the business, distributors, and end-users (finalinvolving the business, distributors, and end-users (final
clients)clients)
Aimed at:Aimed at: commercial intermediariescommercial intermediaries
(sales reps., wholesalers, purchasing centres,(sales reps., wholesalers, purchasing centres,
retailers etc.) = push strategies involvingretailers etc.) = push strategies involving
the actorthe actor who makes the transactionwho makes the transaction
purchaser/consumerpurchaser/consumer
(the actor who actually uses the good or(the actor who actually uses the good or
service) = pull strategiesservice) = pull strategies
supply side partnerssupply side partners
(research institutes, co-designers, IT(research institutes, co-designers, IT
consultants) = relational logic rather thanconsultants) = relational logic rather than
transactional logictransactional logic
22. 2222
Relationship in Marketing CommunicationRelationship in Marketing Communication
• Two models:Two models:
mass communicationmass communication
one-to-many transmission of the messageone-to-many transmission of the message
TV, Radio, Newspapers etc.TV, Radio, Newspapers etc.
works with both differentiated andworks with both differentiated and
undifferentiated marketingundifferentiated marketing
one-to-one communicationone-to-one communication
two-way involvement in the messagetwo-way involvement in the message
telephone, face-to-face, other?telephone, face-to-face, other?
aimed at focused and personalisedaimed at focused and personalised
marketsmarkets
23. 2323
Content in Marketing CommunicationContent in Marketing Communication
• The customer is at the centre of the company’s interestThe customer is at the centre of the company’s interest
Marketing involved at transmitting theMarketing involved at transmitting the marketing conceptmarketing concept
• Production orientedProduction oriented
typical where demand > supply. Needs are obvious.typical where demand > supply. Needs are obvious.
Focus is on distribution rather than communicationFocus is on distribution rather than communication
• Sales orientedSales oriented
persuasive communication aimed at convincing thepersuasive communication aimed at convincing the
market to purchase (if meets real demand need)market to purchase (if meets real demand need)
• Market orientedMarket oriented
customer satisfaction at the centrecustomer satisfaction at the centre
PV > EV; RV > 0PV > EV; RV > 0 (PV= perceived value; EV= exchange value;(PV= perceived value; EV= exchange value;
24. 2424
Content and Marketing CommunicationContent and Marketing Communication
• By favouring the point of view of the client rather than the company,By favouring the point of view of the client rather than the company,
marketing communication becomes one of the foundingmarketing communication becomes one of the founding
components of services offered to the target market – creatingcomponents of services offered to the target market – creating
perceived valueperceived value product offering.product offering.
• This allows the client to understand the system of attributesThis allows the client to understand the system of attributes
associated with the good or serviceassociated with the good or service
ANDAND
Enriches this system with symbolic structures such asEnriches this system with symbolic structures such as
BRAND IMAGEBRAND IMAGE
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Objectives of Marketing CommunicationObjectives of Marketing Communication
• Economic objectivesEconomic objectives
– aimed at modifying the demand curveaimed at modifying the demand curve
• The communication mix stabilises sales over timeThe communication mix stabilises sales over time
(mitigating seasonal differences)(mitigating seasonal differences)
• Increase of customer valueIncrease of customer value (extending customer interaction(extending customer interaction
with the product)with the product)
q1 q2
p1
d1 d2
26. 2626
Economic ObjectivesEconomic Objectives
• On the supply side, given perfect competition, thereOn the supply side, given perfect competition, there
are some particular effects at the sector level:are some particular effects at the sector level:
Evolution toward monopolistic competition with a largeEvolution toward monopolistic competition with a large
number of competitors and highly differentiatednumber of competitors and highly differentiated
products =products =
marketing comm highlights diffs.marketing comm highlights diffs.
companies autonomous in pricecompanies autonomous in price
Evolution toward differentiated oligopoly =Evolution toward differentiated oligopoly =
communication produces highcommunication produces high
barriers to market entrybarriers to market entry
increasing sales volume andincreasing sales volume and
reinforcing brand loyaltyreinforcing brand loyalty
The only
show in town
The
business
district
27. 2727
Communicational ObjectivesCommunicational Objectives
• Feedback: crossing the “perceptivity line”Feedback: crossing the “perceptivity line”
• Subjects apply attention selectivelySubjects apply attention selectively
• The communications agent must influence the subjectsThe communications agent must influence the subjects
“perceptive filters” to activate perception“perceptive filters” to activate perception
Objectives:Objectives:
non-behavioural responsenon-behavioural response
behavioural responsebehavioural response
evaluational responseevaluational response
relational responserelational response
29. 2929
Communicational ObjectivesCommunicational Objectives
Behavioural response objectivesBehavioural response objectives
BehaviouralBehavioural
responsesresponses
Search for informationSearch for information
PurchasePurchase
ConsumptionConsumption
Word of mouthWord of mouth
Sphere ofSphere of
actionaction
InternalInternal
spheresphere
Non-behaviouralNon-behavioural
responsesresponses
RationalRational
EmotionalEmotional
IdealIdeal
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Communicational ObjectivesCommunicational Objectives
• Valutative response objectivesValutative response objectives
based on behaviour = a mental state that describes abased on behaviour = a mental state that describes a
subject’s relatively stable evaluation of brands, products,subject’s relatively stable evaluation of brands, products,
companies, ideas, and included rational, emotional, andcompanies, ideas, and included rational, emotional, and
behavioural components.behavioural components.
The learning process shapes behaviourThe learning process shapes behaviour
Communication may influence learning through:Communication may influence learning through:
AssociationAssociation
ReinforcementReinforcement
MotivationMotivation
31. 3131
Communicational ObjectivesCommunicational Objectives
• The Foote, Cone, and Belding modelThe Foote, Cone, and Belding model
IIIIII
IIIIII IVIV
FeelFeel
LearnLearn
DoDo
LearnLearn
FeelFeel
DoDo
DoDo
LearnLearn
FeelFeel
DoDo
FeelFeel
LearnLearn
High degree of involvementHigh degree of involvement
IntellectualIntellectual
learninglearning
Low degree of involvementLow degree of involvement
EmotionalEmotional
learninglearning
32. 3232
Communicational ObjectivesCommunicational Objectives
• Relational response objectives = constructed fromRelational response objectives = constructed from
valutative response basevalutative response base
• Principal phases of the relational life cycle:Principal phases of the relational life cycle:
• SatisfactionSatisfaction
• TrustTrust
• Behavioural loyaltyBehavioural loyalty
• Mental loyaltyMental loyalty
• LoyaltyLoyalty
Individual factorsIndividual factors
Structure of needsStructure of needs
Taste and innate aestheticTaste and innate aesthetic
preferencespreferences
Value systemsValue systems
Consumer characteristicsConsumer characteristics
Situational factorsSituational factors
Social group influencesSocial group influences
Media used and messages communicatedMedia used and messages communicated
Broader marketing contextBroader marketing context
