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LAZ/CL4 Language and LAZ/CL4 Language and Culture for BusinessCulture for Business

Prof. Peter CullenProf. Peter CullenModule I B1Module I B1

Business CommunicationBusiness Communication

www.cl4englishlistening.wordpress.comwww.cl4englishlistening.wordpress.com

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The Communication Process The Communication Process and Areas of Business and Areas of Business CommunicationCommunication

• Communication is a natural form of social behaviour Communication is a natural form of social behaviour that is largely involuntary and tied to the very that is largely involuntary and tied to the very existence of a company expressing:existence of a company expressing:

• IdentityIdentity

• ValuesValues

• Relationships to the outsideRelationships to the outside

• Information exchange is increasing – creating Information exchange is increasing – creating background noisebackground noise

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Companies and CommunicationCompanies and Communication

• Companies and their Companies and their stakeholders stakeholders form a process of form a process of significance creation about:significance 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 business business is a:socio-technicalis a:socio-technicalpartially openpartially openpluri-purpose economicpluri-purpose economic

SYSTEMSYSTEM

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Business as a SystemBusiness as a System• A A business business is a:is a: socio-technicalsocio-technical

partially openpartially openpluri-purpose economicpluri-purpose economic

SYSTEMSYSTEM

It is also a:It is also a:organicorganicself-regeneratingself-regeneratingrelationalrelationalcognitivecognitivedirecteddirected

SYSTEMSYSTEM

A Business is a A Business is a vitalvital system system

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Companies and Companies and StakeholdersStakeholders• Stakeholders are people and groups who hold an interest Stakeholders are people and groups who hold an interest

in the existance and performance of a company.in the existance and performance of a company.

Company

Primary Stakeholders

financiersproperty

directors

clientsbusiness partners

competition

suppliers

employees

Secondary Stakeholders

institutions

the public

local community

interest groups

representation groups

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The New Competetive The New Competetive EnvironmentEnvironment

• Contributing factors:Contributing factors:

economic globalisationeconomic globalisationtechnological innovationtechnological innovationkey factors of the marketing key factors of the marketing

environmentenvironmentincreasing pressure from increasing pressure from

institutions and civil society on institutions and civil society on the activities of businessesthe activities of businesses

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Economic GlobalisationEconomic Globalisation

• Promotes the circulation of capital, goods, and Promotes the circulation of capital, goods, and informationinformation

• Creates uniform purchasing behaviour and economies Creates uniform purchasing behaviour and economies of scaleof scale

• Promotes market inter-dependence and super-national Promotes 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

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Economic GlobalisationEconomic Globalisation

• This means business communication must:This means business communication must:

– Face a wider range of agents in the Face a wider range of agents in the communications networkcommunications network

– Plan for inceasingly complex interactionPlan for inceasingly complex interaction– Develop specifically tailored policies as Develop specifically tailored policies as

well as general strategieswell as general strategies– View brand management as an integral View brand management as an integral

policy in the portfolio of strategy optionspolicy in the portfolio of strategy options

company

Group A

Group CGroup B

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Technological EvolutionTechnological Evolution

• Promotes innovation in products and processes, Promotes innovation in products and processes, inducing a convergent trend in the sector and inducing a convergent trend in the sector and creating truly new marketscreating truly new markets

• This can lead to adoption of innovative responses to This can lead to adoption of innovative responses to market needs (market needs (market-pull innovationmarket-pull innovation) or may lead ) or may lead to truly new systems of supply (to truly new systems of supply (company-push company-push innovationinnovation))

ICTs and e-business are changing the ICTs and e-business are changing the paradigmparadigm

Company

Market Market

Innovation need

Innovation supply

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Marketing EnvironmentsMarketing Environments

• Concerns:Concerns: the evolution of consumption and consumersthe evolution of consumption and consumers the demand for personal and personalised the 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 dualism dualism 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 expressing Consumption has become a way of expressing values,identity, and individualityvalues,identity, and individuality

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The Marketing EnvironmentThe Marketing Environment

• Today:Today:Large marketing oriented companies increasingly Large marketing oriented companies increasingly look towards look towards emerging consumer marketsemerging consumer markets – more so – more so than toward than toward mature consumer marketsmature consumer markets

• Consumers demand greater service and Consumers demand greater service and personalisation in supplypersonalisation in supply

• Mass production/mass consumptionMass production/mass consumption paradigm is paradigm is outdated – today production systems focus on the outdated – today production systems focus on the technology-services technology-services paradigmparadigm

• Rise of Rise of large distributorslarge distributors pushes companies to direct pushes companies to direct marketing strategies and techniques to meet their marketing strategies and techniques to meet their needs – encroaching on brand policy (Selex, Conad)needs – encroaching on brand policy (Selex, Conad)

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Institutional and Civil Society Institutional and Civil Society PressurePressure• Key question: sustainability and sustainable Key question: sustainability and sustainable

developmentdevelopment

• Social responsibilty of business: companies must Social 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, environmental protection (local, regional, regional, global)global)

• Action groups influence company success in these Action groups influence company success in these areasareas

i.e. Greenpeace, Consumer Rights Org.i.e. Greenpeace, Consumer Rights Org.

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Institutional CommunicationInstitutional Communication

• Macro-area communication applied to: Macro-area communication applied to:

distinctive facets of the company (distinctive facets of the company (vision, vision, mission, mission, company valuescompany values))

the set of relations created in the contexts of the set of relations created in the contexts of the organisation, economic competition, social the organisation, economic competition, social and natural aspectsand natural aspects

• This communication is differentiated according to This communication is differentiated according to target group. The company must adopt target group. The company must adopt responsable responsable and differentiated behaviourand differentiated behaviour BUT BUT

• Institutional Communication is an expression of Institutional Communication is an expression of synthesis and sustains the strategic path of the synthesis and sustains the strategic path of the companycompany

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Institutional CommunicationInstitutional Communication

• Meta-objectives:Meta-objectives:

• To delineate, reinforce, or modify company To delineate, reinforce, or modify company positioningpositioning – total image – total image

• Stimulate Stimulate favourable attitudefavourable attitude (consensus) (consensus) toward the company by its 1° and 2° toward the company by its 1° and 2° stakeholdersstakeholders

• Create a climate of credibility, legitimacy, trustCreate a climate of credibility, legitimacy, trust

• Contribute to the enrichment of the company’s Contribute to the enrichment of the company’s reputational patrimonyreputational patrimony, in terms of , in terms of goodwill goodwill (intangible asset)(intangible asset)

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Instruments of Institutional Instruments of Institutional CommunicationCommunication

• 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.com

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Institutional Communication at British Institutional Communication at British PetroleumPetroleum

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Economic and Financial Economic and Financial CommunicationCommunication• Interested parties:Interested parties:

shareholdersshareholders

creditorscreditors

clientsclients

state revenue agencies (fiscal structures)state revenue agencies (fiscal structures)

the financial community – particularly when the financial community – particularly when the 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 Absolute necessity of more, broader, deeper financial communication with stakeholderscommunication with stakeholders

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Economic and Financial Economic and Financial CommunicationCommunicationInvestor relations: specialised in relations with Investor relations: specialised in relations with

investors and actors in the financial markets, investors and actors in the financial markets, particularly analysts and portfolio managersparticularly analysts and portfolio managers

Information needs are:Information needs are:• Legislative requirementsLegislative requirements

• External needs – of market intermediaries (analysts, External needs – of market intermediaries (analysts, managers etc.managers 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 to satisfy stakeholders informational requirementsrequirements

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Economic and Financial Economic and Financial CommunicationCommunication

• 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

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Marketing CommunicationMarketing Communication

• Management of relationship with the market Management of relationship with the market ((intermediate and final clientsintermediate and final clients) aimed at improving the ) aimed at improving the perceived value of the company and its ability to perceived value of the company and its ability to meet the needs of selected demand segmentsmeet the needs of selected demand segments

• Fundamental to Fundamental to market-driven market-driven companies to improve companies to improve defendable competetive advantage and the ability to defendable 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

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Relationship in Marketing Relationship in Marketing CommunicationCommunication• Managerial process to create and activate Managerial process to create and activate

relationships involving the business, distributors, relationships involving the business, distributors, and end-users (final clients)and end-users (final clients)

Aimed at: Aimed at: commercial intermediariescommercial intermediaries

(sales reps., wholesalers, purchasing (sales reps., wholesalers, purchasing centres, centres, retailers etc.) = push retailers etc.) = push strategies involving the actor strategies involving the actor who makes the who makes the transactiontransaction

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 consultants) = relational logic rather

than than

transactional logictransactional logic

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Relationship in Marketing Relationship in Marketing CommunicationCommunication

• Two models:Two models:

mass communicationmass communicationone-to-many transmission of the messageone-to-many transmission of the messageTV, Radio, Newspapers etc.TV, Radio, Newspapers etc.works with both differentiated and works with both differentiated and undifferentiated marketingundifferentiated marketing

one-to-one communicationone-to-one communicationtwo-way involvement in the messagetwo-way involvement in the messagetelephone, face-to-face, other?telephone, face-to-face, other?aimed at focused and personalised aimed at focused and personalised

marketsmarkets

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Content in Marketing Content in Marketing CommunicationCommunication• 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 the Marketing 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 the persuasive 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 centrePV > EV; RV > 0 PV > EV; RV > 0 (PV= perceived value; EV= exchange value; (PV= perceived value; EV= exchange value;

RV= rendered value) RV= rendered value)

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Content and Marketing Content and Marketing CommunicationCommunication

• By favouring the point of view of the client rather than the By favouring the point of view of the client rather than the company, marketing communication becomes one of the company, marketing communication becomes one of the founding components of services offered to the target founding components of services offered to the target market – creating perceived value market – creating perceived value product offering.product offering.

• This allows the client to understand the system of attributes This 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 as Enriches this system with symbolic structures such as

BRAND IMAGEBRAND IMAGE

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Objectives of Marketing Objectives of Marketing CommunicationCommunication

• Economic objectivesEconomic objectives– aimed at modifying the demand curveaimed at modifying the demand curve

• The communication mix stabilises sales over time The communication mix stabilises sales over time (mitigating seasonal differences)(mitigating seasonal differences)

• Increase of customer value Increase of customer value (extending customer interaction (extending customer interaction with the product)with the product)

q1 q2

p1

d1 d2

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Economic ObjectivesEconomic Objectives• On the supply side, given perfect competition, On the supply side, given perfect competition,

there are some particular effects at the sector there are some particular effects at the sector level:level:

Evolution toward monopolistic competition with a Evolution toward monopolistic competition with a large number of competitors and highly large number of competitors and highly differentiated products =differentiated 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 high communication produces high barriers to market entrybarriers to market entryincreasing sales volume and increasing sales volume and reinforcing brand loyaltyreinforcing brand loyalty

The only show in town

The business district

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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 subjects The 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

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Communicational ObjectivesCommunicational Objectives

Top of the mind

Unaided recall

Aided recall

Brand recognition

Global brand aw

areness

Str

en

gth

of

aw

are

ness

Cognitive objectivesCognitive objectivesEmotional objectivesEmotional objectives

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Communicational ObjectivesCommunicational ObjectivesBehavioural response objectivesBehavioural response objectives

Behavioural Behavioural responsesresponses

Search for informationSearch for informationPurchasePurchaseConsumptionConsumptionWord of mouthWord of mouth

Sphere ofSphere ofactionaction

Internal Internal spheresphere

Non-behaviouralNon-behaviouralresponsesresponses

RationalRationalEmotionalEmotionalIdealIdeal

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Communicational ObjectivesCommunicational Objectives

• Valutative response objectivesValutative response objectives

based on behaviour = a mental state that describes based on behaviour = a mental state that describes a subject’s relatively stable evaluation of brands, a subject’s relatively stable evaluation of brands, products, companies, ideas, and included rational, products, companies, ideas, and included rational, emotional, and behavioural components.emotional, and behavioural components.

The learning process shapes behaviourThe learning process shapes behaviour

Communication may influence learning through:Communication may influence learning through:

AssociationAssociation

ReinforcementReinforcement

MotivationMotivation

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Communicational ObjectivesCommunicational Objectives• The Foote, Cone, and Belding modelThe Foote, Cone, and Belding model

IIIIII

IIIIII IVIV

FeelFeel

LearnLearn

DoDo

LearnLearn

FeelFeel

DoDo

DoDoLearnLearnFeelFeel

DoDoFeelFeelLearnLearn

High degree of involvementHigh degree of involvement

Intellectual Intellectual learninglearning

Low degree of involvementLow degree of involvement

Emotional Emotional learninglearning

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Communicational ObjectivesCommunicational Objectives

• Relational response objectives = constructed from Relational 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

• Loyalty Loyalty

Individual factorsIndividual factorsStructure of needsStructure of needsTaste and innate aesthetic Taste and innate aesthetic preferencespreferencesValue systemsValue systemsConsumer characteristicsConsumer characteristics

Situational factorsSituational factorsSocial group influencesSocial group influencesMedia used and messages communicatedMedia used and messages communicatedBroader marketing contextBroader marketing context

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Communicational ObjectivesCommunicational Objectives

Relational ObjectivesRelational Objectives

Behavioural Behavioural objectivesobjectives

Non-behavioural Non-behavioural objectivesobjectives

Influencing factorsInfluencing factorsindividualindividual situationalsituational

Valutative objectivesValutative objectives

Flow chart of communications objectivesFlow chart of communications objectives