Business Communication 2010 2011

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Business Communication 2010 2011

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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)
  15. 15. 1515 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
  16. 16. 1616 Institutional Communication at BritishInstitutional Communication at British PetroleumPetroleum
  17. 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. 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. 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. 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. 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. 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. 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. 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
  25. 25. 2525 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. 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. 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
  28. 28. 2828 Communicational ObjectivesCommunicational Objectives Top of the mind Unaided recall Aided recall Brand recognition Globalbrand awareness Strengthofawareness Cognitive objectivesCognitive objectives Emotional objectivesEmotional objectives
  29. 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
  30. 30. 3030 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. 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. 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
  33. 33. 3333 Communicational ObjectivesCommunicational Objectives Relational ObjectivesRelational Objectives BehaviouralBehavioural objectivesobjectives Non-behaviouralNon-behavioural objectivesobjectives Influencing factorsInfluencing factors individualindividual situationalsituational Valutative objectivesValutative objectives Flow chart of communications objectivesFlow chart of communications objectives

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