Define marketing.
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
creates time, place, and ownership utility by making the product available when and where consumers want to buy and by arranging for orderly transfers of ownership.
Outline the basic steps in developing a marketing strategy.
This process involves analyzing the overall market, selecting a target market, and developing a marketing mix that blends elements related to product, distribution, promotion, and pricing decisions.
Describe marketing research.
Marketing research- the process of collecting and evaluating information to support marketing decision making.
Secondary data- Previously published data from trade associations, advertising agencies, marketing research firms, and other sources.
Primary data- Data collected through observation, surveys, and other forms of observational study.
Data mining- computer searches of customer data to detect patterns and relationships.
Business intelligence- activities and technologies for gathering, storing, and analyzing data to make better competitive decisions
Discuss market segmentation.
Consumer markets can be divided according to four criteria: geographical factors; demographic characteristics (most common), such as age and family size; psychographic variables, which involve behavioral and lifestyle profiles; and product-related variables, such as the benefits consumers seek when buying a product or the degree of brand loyalty they feel toward it. Business markets are segmented according to three criteria: geographical characteristics, customer-based specifications for products, and end-user applications.
Summarize consumer behavior.
refers to the actions of ultimate consumers with direct effects on obtaining, consuming, and disposing of products, as well as the decision processes that precede and follow these actions.
Personal influences include an individual’s needs and motives, perceptions, attitudes, learned experiences, and self-concept.
Interpersonal determinants include cultural influences, social influences, and family influences.
External factors – economic events
A number of people within a firm may participate in business purchase decisions, so business buyers must consider a variety of organizational influences in addition to their own preferences.
Discuss relationship marketing.
Relationship marketing- goes beyond the effort of simply making a sale
Developing and maintaining long-term, cost-effective exchange relationships with partners
Consumers enter into relationships only if there is some benefit to them.
Relationship marketing seeks to achieve customer satisfaction
By identifying current purchasers and maintaining a positive relationship with them, an organization can efficiently target its best customers, fulfill their needs, and create loyalty. Information technologies, frequency and affinity programs, and one-on-one efforts all help build relationships with customers.
How Marketing Creates Utility
Utility: the ability of a good or service to satisfy a wants and needs of customers
Create form utility by converting raw materials and other inputs into finished goods and services
Create time utility by making a good or service available when customers want to purchase it
Create place utility by making a product available in a location convenient for customers
Create ownership utility through an orderly transfer of goods and services from the seller to the buyer
Markets can be classified by type of product.
Consumer products—often known as business-to-consumer (B2C) products—are goods and services, such as GPS systems, tomato sauce, and a haircut, that are purchased by end users. Business products—or business-to-business (B2B) products—are goods and services purchased to be used, either directly or indirectly, in the production of other goods for resale. Some products can fit either classification depending on who buys them and why. A computer or credit card can be used by a business or a consumer.
Adaptation vs. Standardization
The advantages of standardizing the marketing mix include reliable marketing performance and low costs. This approach works best with B2B goods, such as steel, chemicals, and aircraft, which require little sensitivity to a nation’s culture.
Adaptation, on the other hand, lets marketers vary their marketing mix to suit local competitive conditions, consumer preferences, and government regulations. Consumer tastes are often shaped by local cultures
a bundle of physical, service, and symbolic attributes designed to satisfy consumer wants.
marketing conception
includes the brand, product image, warranty, service attributes, packaging, and labeling, in addition to the physical or functional characteristics of the good or service
three types of products (B2C)
convenience: frequent, effortless
shopping: after comparison
specialty: after making special effort to obtain
Types of B2B products
Capital versus Expense Items (consumed in a year)
Installations- major capital items such as new factories, heavy equipment and machinery, and custom-made equipment
Accessory equipment- includes less expensive and shorter-lived capital items than installations and involves fewer decision makers
Component parts and materials- become part of a final product
Raw materials- farm and natural products used in producing other final products
Supplies- expense items used in a firm’s daily operations that do not become part of the final product
product mix
the assortment of goods and services a firm offers to individual consumers and B2B users (kraft)
product line
a series of related products — all similar (betty crocker)
Briefly describe the four stages of the product life cycle
introduction, growth, maturity, and decline.
In the introduction stage, the firm attempts to elicit demand for the new product.
In the product’s growth stage, sales climb, and the company earns its initial profits.
In the maturity stage, sales reach a saturation level — can’t safely keep expanding
In the decline stage, both sales and profits decline.
new-product development process
idea generation, screening, concept development and business analysis, product development, test marketing, and commercialization.
At each stage, marketers must decide whether to continue to the next stage, modify the new product, or discontinue the development process.
Expensive, time-consuming, and risky
1/3 of new products become success stories
Not properly developed and tested
Poorly packaged
Inadequate promotional support or distribution
Do not satisfy a customer need
new products skip the test marketing stage due to
the desire to quickly introduce a new product with excellent potential, a desire not to reveal new-product strategies to competitors, and the high costs involved in limited production runs.
Products are identified by
brands, brand names (part you say), and trademarks (legal protection), which are important elements of product images
(can’t be generic, may belong to distributors or manufacturers)
Brand loyalty is measured in three degrees:
Brand recognition- consumer is aware of the brand but does not have a preference for it over other brands
Brand preference- consumer chooses one firm’s brand over a competitor’s
Brand insistence- consumer will seek out preferred brand and accept no substitute for it (the ultimate degree of brand loyalty)
family vs. individual branding
Some marketers use family brands to identify several related items in a product line. Others employ individual branding strategies by giving each product within a line a different brand name.
brand equity
the added value that a respected and successful name gives a product
components of effective distribution strategy
A firm must consider whether to move products through direct (internet helps) or indirect distribution.
Once the decision is made, the company needs to identify the types of marketing intermediaries, if any, through which it will distribute its goods and services
Another component is distribution intensity. The business must decide on the amount of market coverage—intensive, selective, or exclusive—needed to achieve its marketing strategies.
Finally, attention must be paid to managing the distribution channel. It is vital to minimize conflict between channel members.
distribution channel
paths that products (and legal ownership of them) follow from producer to consumer/business user
marketing intermediary (a.k.a. middleman)
business firm that moves goods between producers and consumers/business users (reduces transactions)
wholesale and retail intermediaries
the process of selling goods primarily to retailers, other wholesalers, or business users (crucial part of distribution channel)

wholesaling intermediaries (distribution good/services from producer to retail intermediaries): some are owned by manufacturers, some are owned by retailers, and others are independently owned

Owned by the manufacturer of the goods or products to control distribution or customer service
Sales branch that stocks products and fills orders from inventories
Sales office that takes orders but does not stock the product

Firms operate two main types of manufacturer-owned wholesaling intermediaries:
sales branches and sales offices
independent wholesaling intermediary
a business that represents a number of different manufacturers and makes sales calls on retailers, manufacturers, and other business accounts. Independent wholesalers are classified as either merchant wholesalers or agents and brokers, depending on whether they take title to the products they handle. Retailers sometimes band together to form their own wholesaling organizations. Such organizations can take the form of either a buying group or a cooperative.
merchant wholesaler vs. agent or broker
merchant wholesaler: take title to the goods they handle
agents and brokers: may or may not take possession, but never take title of the goods — bring buyers and sellers together
competitive retailing strategy
Identify a Target Market
Selecting a Product Strategy
Selecting a Customer Service Strategy
Selecting a Pricing Strategy
Choosing a Location
Building a Promotional Strategy
Creating a Store Atmosphere
in contrast to wholesalers, are distribution channel members that sell goods and services to individuals for their own use rather than for resale. Two types:

Nonstore retailing includes four forms: direct-response retailing, Internet retailing, automatic merchandising, and direct selling.

test marketing
introduction of new product supported by complete marketing campaign to selected city/coverage area
category advisor
vendor (appointed by supplier) that assumes responsibility for dealing with other vendors and presenting stuff to a business buyer
What is Marketing?
A set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
Marketing begins with discovering unmet customer needs and continues with researching the potential market
Producing a good or service capable of satisfying the targeted customers; and promoting, pricing, and distributing that good or service.
Throughout the entire marketing process, a successful organization focuses on building customer relationships.
The best marketers not only give consumers what they want, but anticipate consumers’ need before those needs surface.
Exchange process – activity in which two or more parties give something of value to each other to satisfy perceived needs.
Marketing Plan
The marketing plan is a key component of a firm’s overall business strategy
The marketing plan outlines its marketing strategy, including information about:
Target market
Sales and revenue goals
The marketing budget
Timing for implementing elements of the marketing mix.
Marketing Mix
Marketing mix blends the four strategies to fit the needs and preferences of a specific target market.
Product Strategy – the nature of the product and its package design, brand names, trademarks, and product image.
Distribution strategy – customers receive their purchases in the proper quantities at the right times and locations.
Promotional strategy blends advertising, personal selling, sales promotion, and public relations to achieve its goals of informing, persuading, and influencing purchase decisions.
Pricing strategy is setting profitable and justifiable prices for the firm’s product offerings, sometimes subject to government scrutiny.
Tools for Nurturing Customer Relationships
80/20 principle: frequent customers have a higher lifetime value, so businesses allocate resources accordingly
Frequency marketing: reward purchasers with cash, rebates, and other premiums. See Walgreen’s Balance Rewards Loyalty program.
Affinity programs: solicit involvement based on common interest
Comarketing: businesses jointly market each others’ products
Cobranding: firms link their names in a single product
One-to-One Marketing
Customizing products and marketing and rapidly delivering goods.
Marketers can maintain databases about customers with regard to tastes, price range preferences, purchasing habits, and lifestyles.
Customer relationship management software helps companies gather, sort, and interpret data about specific customers.
Classifying Services
Services can be classified as B2C or B2B. Services fall under the same categories (convenience, shopping, specialty) as tangible products. Services are different from goods: intangible, perishable (cannot stockpile in inventory), difficult to standardize (are customized to each customer’s needs), and the Service provider is the service
Marketing Strategy Implications
In B2B there is a greater emphasis on personal selling for installations and many component parts and a concentration on quality and customer service.
Producers of installations and component parts may involve customers in new-product development.
Advertising is more commonly used to sell supplies and accessory equipment.
Producers of supplies and accessory equipment place a greater emphasis on competitive pricing strategies.
Implication of the Product Life Cycle
Marketer’s objective is to extend the life cycle as long as product is profitable.
Marketers’ goals:
Increasing customers’ frequency of use
Adding new users
Finding new uses for product
Changing package sizes, labels, and product designs
Brand categories
Manufacturer’s brand- brand offered and promoted by a manufacturer. Examples: Tide, Cheerios, Windex, Fossil, and Nike.
Private or store brand- brand that is not linked to the manufacturer but instead carries a wholesaler’s or retailer’s label. Examples: Sears’ DieHard batteries and Walmart’s Ol’Roy dog food.
Family branding strategy- a single brand name used for several related products. Examples: KitchenAid, Johnson & Johnson, Hewlett-Packard, and Arm & Hammer.
Individual branding strategy- giving each product within a line a different name. Examples: Procter & Gamble products Tide, Cheer, and Dash
brand awareness
product is the first one that comes to mind when a product category is mentioned
Packages and Labels
Packaging affects the durability, image, and convenience of an item and is responsible for one of the biggest costs in many consumer products.
Packing is important in product identification and play is an important role in a firm’s overall product strategy.
Choosing the right package is especially important in international marketing.
Packing must meet legal requirements of all countries in which product is sold.
Universal Product Code- bar code read by optical scanner
Physical distribution:
actual movement of products from producer to consumers or business users
Distribution Channels Using Marketing Intermediaries
Direct Distribution
Direct contact between producer and customer.
Most common in B2B markets.
Often found in the marketing of relatively expensive, complex products that may require demonstrations.
Internet is helping companies distribute directly to consumer market.
Distribution Channels Using Marketing Intermediaries
Producers distribute products through wholesalers and retailers.
Inexpensive products sold to thousands of consumers in widely scattered locations.
Lowers costs of goods to consumers by creating market utility
Retail Locations
For a retailer, a good location can make the difference between success and failure
Location depends upon the retailer’s size, financial resources, product, competition, and target market.
Planned Shopping Center
Shopping Mall
Regional Mall
Lifestyle Mall
Promotion is the function of informing, persuading, and influencing a purchase decision.
Some promotional strategies try to develop primary demand, or consumer desire for a general product category.
Most promotions stimulate selective demand, or a desire for a specific brand
Integrated Marketing Communications
Integrated marketing communications (IMC) is the coordination of all promotional activities—media advertising, direct mail, personal selling, sales promotion, and public relations—to produce a unified, customer-focused message.
Must take a broad view and plan for all form of customer contact.
Create unified personality and message for the good, service, or brand.
Elements include personal selling, advertising, sales promotion, publicity, and public relations.
Promotional Mix
Promotional mix- combination of personal and nonpersonal selling components designed to meet the needs of their firm’s target customers and effectively and efficiently communicate its message to them.
Personal selling- the most basic form of promotion: a direct person-to-person promotional presentation to a potential buyer.
Nonpersonal selling- advertising, sales promotion, direct marketing, and public relations

Each component of the promotional mix offers its own advantages and disadvantages.
They include: advertising, personal selling, sales promotion, public relations, and sponsorships

Objectives of Promotional Strategies
Every organization has its own promotional strategies. Differentiating the product, providing information, stabilizing or increasing sales, and accentuating product value are all objectives of promotional strategies.

Promotional objectives within an organization will vary, but they include: differentiate product, provide information, stabilize sales, increase sales, and accentuate product value. (multiple to appeal to different audiences)

Promotional Planning
Two promotional planning practices include:
Product placement- marketers pay placement fees to have their products showcased in various media, ranging from newspapers and magazines to television and movies.
Guerilla marketing- innovative, low-cost marketing efforts designed to get consumers’ attention in unusual ways.
Advertising- paid nonpersonal communication usually targeted at large numbers of potential buyers.
Advertising expenditures are great- carmakers spend $20 billion per year.
Consumers are bombarded with many messages.
Firms need to be more and more creative and efficient at getting consumers’ attention.
Types of Advertising
(two basic types are product and institutional)
Product advertising- messages designed to sell a particular good or service
Institutional advertising- messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities
Cause advertising- institutional messaging that promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process
Advertising and the Product Life Cycle
(three main categories are informative, persuasive, and reminder-oriented)
Informative advertising- used to build initial demand for a product in the introductory phase
Persuasive advertising- attempts to improve the competitive status of a product, institution, or concept, usually in the growth and maturity stages
Comparative advertising- compares products directly with their competitors either by name or by inference
Reminder-oriented advertising – appears in the late maturity or decline stages to maintain awareness of the importance and usefulness of a product
Media of Advertising
Easiest way to reach a large number of consumers
Most expensive
Dominate local advertising
Short life span
Commuters in cars are captive
Internet radio offers new opportunities
Consumer publications and trade journals w/customized messages
Direct Mail
12.5 billion catalogs mailed in a recent year at a cost of $347 per person, but highly targeted
Outdoor Advertising
$6.7 billion annually
Requires brief messages
Internet Advertising
Search engine marketing, display ads, classified ads
Online and Interactive Advertising
Viral advertising creates a message that is novel or entertaining enough for consumers to forward it to others, spreading it like a virus.
Many consumers resent the intrusion of pop-up ads that suddenly appear on their computer screen.
Providing funds for a sporting or cultural event in exchange for a direct association with the event. (gain exposure and become associated with good image)
Benefits: exposure to target audience and association with image of the event.
Other Media Options
Marketers look for novel ways to reach customers: infomercials, ATM receipts, directory advertising.
Sales Promotion
Sales promotion consists of forms of promotion such as coupons, product samples, and rebates that support advertising and personal selling.
was seen as a supplement to a firm’s advertising, but it has emerged as an integral part of the promotional mix.
give consumers extra incentives
Customer-Oriented Promotions
The goal of consumer-oriented sales promotion is to get new and existing customers to try or buy products.
Coupons attract new customers but focus on price rather than brand loyalty.
Rebates increase purchase rates, promote multiple purchases, and reward product users.
Samples – consumers who receive a sample will try it.
Games, Contests, and Sweepstakes for new products
Cash, merchandise, or travel prizes offered to participating winners.
Specialty Advertising
Promotional items that prominently display a firm’s name, logo, or business slogan.
Trade-Oriented Promotions
Trade Promotion is sales promotion geared to marketing intermediaries rather than to consumers
Encourage retailers
To stock new products
To continue carrying existing ones
To promote both new and existing products effectively to consumers
Personal Selling
A person-to-person promotional presentation to a potential buyer
Many companies consider personal selling the key to marketing effectiveness.
A seller matches a firm’s goods and services to the needs of a particular client or customer.
Today, sales and sales-related jobs employ about 15 million U.S. workers
Businesses often spend five to ten times as much on personal selling as on advertising.
Criteria for Personal Selling
1. Customers are relatively few in number and geographically concentrated.
2. The product is technically complex, involves trade-ins, or requires special handling.
3. The product carries a relatively high price.
4. The product moves through direct-distribution channels.
Sales Tasks
Order Processing – Identifying customer needs, pointing out merchandise to meet them, and processing the order
Creative Selling – Promotes a good or service whose benefits are not readily apparent or whose purchase decision requires a close analysis of alternatives
Missionary Selling – Indirect form of selling in which the representative promotes goodwill for a company or provides technical or operational assistance to the customer
Telemarketing – Personal selling conducted entirely by telephone, which provides a firm’s marketers with a high return on their expenditures, an immediate response, and an opportunity for personalized two-way conversation
Sales Process
The sales process typically follows a seven-step process, which includes:
Prospecting and qualifying
Handling objections
Prospecting, Qualifying, and Approaching
A good salesperson varies the sales process based on customers’ needs and responses.
Prospecting – identifying potential customers
Qualifying – identifying potential customers
Approaching – analyzing available data about a prospective customer’s product lines and other pertinent information
Presentation and Demonstration
Salespeople communicate promotional messages. They may describe the major features of their products, highlight the advantages, and cite examples of satisfied consumers.
Reinforces the message that the salesperson has been communicating.

Salespeople communicate the marketing messages during the presentation and demonstration stage and they align the benefits to the potential customer and their specific needs.

Handling Objections and Closing
Use objections as an opportunity to answer questions and explain how the product will benefit the customer.
The closing is the critical point in the sales process.
Even if the sale is not made, the salesperson should regard the interaction as the beginning of a potential relationship.
An important part of building a long-lasting relationship.
May determine whether the customer will make another purchase.
Public Relations
Public relations – a public organization’s communications and relationships with its various audiences.
Is an efficient, indirect communications channel for promoting products. It can publicize products and help create and maintain a positive image of the company.
Publicity- nonpersonal stimulation of demand for a good, service, place, idea, event, person, or organization by unpaid placement of information in print or broadcast media.
Good publicity can promote a firm’s positive image.
Negative publicity can cause problems.

Public relations helps achieve broader promotional goals by communicating with its various audiences. Companies can build their prestige and brand through positive publicity. Publicity includes news coverage and unpaid placements in the media.
Unfortunately, publicity can sometimes be negative, and dealing with negative publicity is something a public relations firm can help with.

Form of promotion in which marketers attempt to establish their products in the minds of customers by communicating to buyers meaningful distinctions about the attributes, price, quality, or use of a good or service.
Point-of-purchase (POP) advertising
Displays or demonstrations that promote products when and where consumers buy them, such as in retail stores.
Empowering Employees
Empowerment – giving employees authority and responsibility to make decisions about their work.
By sharing information and decision-making authority
Gives workers a sense of ownership
Keeping them informed about the company’s financial performance
Giving them broad authority to make workplace decisions that implement a firm’s vision and competitive strategies

Empowerment is an important component of effective management.
Empowerment taps the brainpower of all workers to find improved ways of doing their jobs, better serving customers, and achieving organizational goals.
Empowerment gives workers a feeling of ownership
Sharing information and decision-making authority are the keys to empowering employees.
Empowerment frees managers from hands-on control of employees and motivates workers by adding challenges to their jobs.

Linking Rewards to Company Performance
This is done in two ways:
Employee stock ownership plans benefit employees by giving them ownership in the company.
Stock options are another way to provide workers with ownership by providing them the right to buy a specific amount of company stock at a given price.
Stock options have turned hundreds of employees at firms such as LinkedIn, Twitter, Facebook, Home Depot, Microsoft, and Google into millionaires.

Employee Stock Ownership Plans (ESOPs)
11 million workers at 12,000 companies participate in ESOPs
Gives employees financial ownership, leading to potential profits
This motivates employees to work smarter and harder.
Stock Options
Right to buy a specified amount of company stock at a given price within a given time period.
Being offered more frequently to employees at all levels.
1/3 of all options go to the top five executives at a firm.

A team is a group of employees who are committed to a common purpose, approach, and set of performance goals.
Members are mutually responsible and accountable for accomplishing objectives.
Ability to work on teams often emphasized during the hiring process.
Work teams are groups of people with complementary skills who are committed to a common purpose.
Two-thirds of U.S. firms currently use work teams, permanent employee groups
Five Types of Teams
In addition to work teams, teams may exist as problem-solving teams who gather information to solve a specific problem.
Self-managed teams are work teams that have the authority to decide how their members complete their daily tasks.
Cross-functional teams have members from different functions, such as production, marketing, and finance.
A virtual team is a group of geographically or organizationally dispersed co-workers who uses a combination of telecommunications and information technologies to accomplish an organizational task.
Team Characteristics
Team Size
Can range widely, but most have fewer than 12 members.
Ideal size is often six or seven members
Team Level and Team Diversity
Team level – average level of ability, experience, personality, or any other factor on a team
Team diversity – variances or differences in ability, experience, personality, or any other factor on a team.
Stages of Team Development
Teams typically progress through five stages of development: forming, storming, norming, performing, and adjourning.
Forming is the orientation period.
Storming is when the personalities of the members clarify their roles and expectations.
During the norming phase, members resolve differences and accept each other.
In the performing phase, members focus on solving problems and accomplishing tasks.
Adjourning is when the team disbands.
Team Cohesiveness and Norms
Team cohesiveness is the extent to which team members feel attracted to the team and motivated to remain part of it.
Increases when members interact frequently, share common attitudes and goals, and enjoy being together.
Cohesive teams quickly achieve high levels of performance and consistently perform better.
Increases when Team norms are the informal standards of conduct shared by team members that guide their behavior.
Can be positive or negative
Team Conflict
Conflict – when one person or group’s needs do not match those of another, and attempts may be made to block the opposing side’s intentions or goals.
Cognitive conflict focuses on problem-related differences of opinion.
Reconciling these differences strongly improves team performance
Affective conflict refers to the emotional reactions that can occur when disagreements become personal rather than professional.
Team leaders should facilitate good communication so that teammates respect each other and work cooperatively.
Importance of Effective Communication
Communication is the meaningful exchange of information through messages.
Managers spend 80 percent of their time in direct communication with others.
Company recruiters rate effective communication as the most important skill they’re looking for in hiring new college graduates.
Communication includes listening, conversing, providing feedback, telephone, meetings, email, or individual conversation.
The Communication Process
Communication follows a step-by-step process that involves six elements: sender, message, channel, audience, feedback, and context.

The sender composes the message and sends it through a communication carrier, or channel.

Encoding a message means that the sender translates its meaning into understandable terms and a form that allows transmission through a chosen channel.

The sender can communicate a particular message through many different channels, including face-to-face conversations, phone calls, and e-mail or texting.

Every communication takes place in some sort of situational or cultural context. The context can exert a powerful influence on how well the process works.

Noise is any interference that influences the transmission of messages and feedback.

The context can exert a powerful influence on how well the process works. A conversation between two people in a quiet office, for example, may be a very different experience from the same conversation held at a noisy party.

Cultural Context
Communication in low-context cultures tends to rely on explicit written and verbal messages.
Switzerland, Austria, Germany and the U.S.
Communication in high-context cultures depends not only on the message itself but also on the conditions that surround it, including nonverbal cues, past and present experiences, and personal relationships between the parties.
Japan, Latin America, and India
Basic Forms of Communication
Oral – communication transmitted through speech
Written -communication transmitted in writing
Formal – communication transmitted through the chain of command within an organization
Informal – communication transmitted outside formal channels without regard for the organization’s hierarchy
Nonverbal – communication transmitted through actions and behaviors rather than words
Cynical Listening: Receiver of a message feels that the sender is trying to gain some advantage from the communication.
Offensive listening: Receiver tries to catch the speaker in a mistake or contradiction.
Polite Listening: Receiver listens mechanically to be polite rather than to communicate.
Active Listening: Requires involvement with the information and empathy with the speaker’s situation; the basis for effective communication.

Learning how to be an active listener is an especially important goal for business leaders.
All organizations, large or small, have grapevines.

Written Communication
Channels include reports, letters, memos, online discussion boards and social media, emails, and text messages
Delayed feedback
Provides a record of the message
Importance to consider audience, the channel carrying the message, and the appropriate degree of formality
Email is ubiquitous in nature
Formal Communication
Carries messages that flow within the chain of command structure defined by an organization.
Downward communication
carries messages from someone who holds a senior position in the organization to subordinates
Upward communication
communication from employees to supervisors and upward to top management levels
Open and honest communication is key in formal communication
Open Communication
With open communication, employees feel free to express opinions, offer suggestions, and even voice complaints.
7 Characteristics of Open Communication:
Employees are value
High level of trust exists
Conflict is invited and resolved politely
Creative dissent is welcome
Employee input is solicited
Employees are well-informed
Feedback is ongoing
Informal Communication
Informal communication channels carry messages outside formally authorized channels within an organization’s hierarchy
The grapevine is an internal channel that passes information from unofficial sources
Company communications should be managed so that the grapevine is not the main source
When managed well, managers can get a feel for company morale
Gossip is a main drawback of this channel of communication.
Nonverbal Communication
Nonverbal communication transmits messages through actions and behaviors.
Gestures, posture, eye contact, tone and volume of voice, and even clothing choices are all nonverbal actions that become communication cues.
Can have a greater impact on communications than many people realize.
It is estimated that 70 percent of interpersonal communication is conveyed through nonverbal cues.
Personal Space in Nonverbal Communication
Personal space can convey powerful messages. Concepts of personal space differ throughout most of the world.
There are four zones of personal space:
Intimate Zone is 18 inches or less between people
Personal is 1.5 to 4 feet apart between people
Social Zone is 4 to 12 feet apart between people
Public zone is 12 feet or more apart between people
External Communication and Crisis Management
External communication is a meaningful exchange of information through messages transmitted
Messages are transmitted between an organization and its major audiences: customers, suppliers, firms, general public, and government officials
Communicating during a public relations crisis:
Respond to crisis quickly
Put top company management in front of the press.
Stick to the facts
When you don’t know, offer to find out.
Never say “no comment.”
Speak to your audience

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