Business communication takes many forms. Companies communicate internal information
between managers or employees, while external communication is used to inform consumers
about the company’s products. Marketing is an important function for a new small business.
Entrepreneurs and business owners must inform consumers about the goods or services they are
offering. Businesses develop marketing strategies to deliver specific messages to consumers in the
economic marketplace.
Function
Businesses often follow a few basic steps when creating marketing communication. These steps
include creating a message, selecting a communication channel, sending the message and
responding to feedback. Marketing strategies can also include an analysis of the economic
marketplace to determine the strength of consumer demand and the supply of products by
competing companies. This analysis helps businesses understand how to differentiate their
communication or marketing messages from other advertisements.
Types of Channels
Business communication in marketing is usually delivered using a specific communication channel.
Marketing communication channels include television commercials, radio advertisements, print
media ads and other traditional marketing channels. Information technology has increased the
number of marketing channels. These channels include websites, email, chatting, texting and social
media networks. Information technology marketing channels increase the target markets or
demographic groups companies can reach with business communication messages.
Strategy
Marketing communication strategies are divided in two basic groups: direct and indirect.
Businesses use a direct communication style by comparing their products to a leading competitor
or the industry standard. This style allows businesses to promote the benefits of their products and
why consumers will receive satisfaction when purchasing them. Indirect communication styles
present a product’s feature and allow consumers to make up their own mind about the benefits of
the product. An indirect communication method may be perceived by consumers as less
adversarial than the direct method.
Considerations
Businesses should carefully consider the receiving audience of business communication and
marketing. Using a blanket communication channel or communication style may create cultural or
societal confusion. Demographic groups usually respond to marketing communications in different
ways. The reception of marketing messages is often filtered by the demographic group’s age, race,
cultural beliefs or other factors. Tailoring business communication in marketing can help
companies avoid these negative situations.
Hiring an Agency
Using a professional marketing agency can help companies develop effective business
communication in marketing. These agencies usually have copious amounts of resources
regarding economic markets, consumer demand and behavior and other information pertinent to
creating marketing strategies. Small business owners may also develop a professional relationship
with independent marketing representatives who can provide key insight on business
communication and marketing strategies using several different communication channels.
Identify contribution of market research to enterprise activity
Research is essential to collect facts and statistics about a company’s customers, employees and
competitors. On the basis of these numbers, companies are able to make better managerial
decisions. The collected statistics are organized into reports and the management team uses them
to take action. A good research mechanism is essential, irrespective of the size of the company
and its client base. Research is imperative for staying competitive in the market4.
- Significance
o A business is able to make knowledgeable decisions because of research. In the
research process, the company is able to obtain information about key business
areas, analyse it, develop a strategy and distribute business information. Reports,
provided to the top management, often include information on consumer and
employee preferences and all the available routes for sales, marketing, finance and
production. Management uses this information to decide the best strategy.
4 Source: Bayt, as at https://www.bayt.com/en/specialties/q/199562/what-is-the-role-of-marketingresearch-
in-decision-making/, as on 4th September, 2017.
Research is a prerequisite at all stages and phases of business operations. Initial
research is required to gauge whether getting into the given type of business
would be profitable and whether there is demand for the proposed product.
Function
o By conducting business research, the organization ascertains what its customers
want and then takes steps to prepare a product meeting those desires. Research
also helps determine whether a product is accepted in the market. Research aids
expansion into new markets.
Methods of Data Collection
o There are two ways organizations typically collect data.
One is primary data collection from your immediate consumers, who provide
feedback on your products. You can also invite customers to offer opinions on
future products. To gain this information, an interviewer asks the customer to
provide views on how the company can modify the existing product to satisfy his
needs better. The interviewer uses surveys and questionnaires to collect and record
data. This method is helpful for gaining insight about a company’s particular
merchandise.
The second method is secondary data collection, which uses data that has already
been printed over the Internet and in magazines and journals. This is
predominantly useful in gauging the broad market scenarios.
Considering a Consultant
o Conducting research involves cost and time. The organization must weigh the pros
and cons before hiring consultants to conduct research. Consultants must be made
fully aware of what the organization is looking for from the research.
Advantages
o The primary benefit to business research is that the organization is able to learn
more about consumer choices and preferences. Research provides information on
the product features that lure customers and flaws in the product or marketing that
contribute to slow sales. Research helps the organization fix problems and cash in
on the strengths. Research also contributes to a company’s ability to clearly identify
the customer demographics and target demographic, including age, gender,
monthly income of the household and educational levels. Research mitigates
business risks and can help increase demand and sales.
Role of Market Research in Achieving Business Goals Effectively5
Market research plays a crucial role in the overall success of a business and is a known fact.
Unfortunately, many of the organizations realize the importance of market research only when
they reach a point of saturation in their growth or when they are unable to grow as expected.
The hurdle experienced in the process of growth or expansion of a business or while introducing a
new product in the market makes organizations realize the benefits arising out of conducting
market research. A market research strategy adopted by a company enables it to achieve the
almost impossible to accomplish goals in the following areas of business: - Taking Critical Business Decisions
Every organization at one of point of time experiences a situation where critical decision needs to
be taken. In such a scenario, having complete and detailed information about the competitors,
market and the overall industry enables a business to take an appropriate and perfect decision
aiding in the overall success of the business.
On the contrary, possessing incomplete or irrelevant market information will result in losses for the
organization thus negatively affecting the business in the process. - Obtaining Finance from Investors
Obtaining funds from investors is found to be one of the biggest hurdles for any business. The
idea for a business or a product may prove to be worthless unless investors fund it and investors
are always interested to know how well you have done the homework pertaining to the business.
Market Research is the only way for a business to obtain in depth analytical information about the
industry, the existing and likely future competitors and also in providing information to investors
pertaining to the extent your product or service can help in solving the prevailing problem in the
market. - Locating new opportunities for business
5 Source: iResearch Services, as at http://www.iresearchservices.com/role-of-market-research-inachieving-
business-goals-effectively/, as on 4th September, 2017.
Market research goes much beyond understanding and learning about the trends in the market or
changes in consumer behaviour. The sooner a business or organizations realizes this truth, the
better it can use the available information to explore newer avenues and expand the business
along with facing any impending challenges that may arise in the business. - Avoiding or overcoming failures in business
Market research not only plays a pivotal role in enabling an organization to enter the market or in
introducing a new product in the market, it also plays a prime role in justifying the risk undertaken
by a business.
In short, market research acts a light house in guiding a company in not going ahead with a
particular decision which would have resulted in a big loss of revenue for the organization or even
affected the brand image of the company.
Market research thus is indispensable for the marketing department of a company. Without
specific direction about what to market, where to market, whom to market and how to market a
product, business or service, a company can never hope to achieve what it aspires to achieve.
We have already discussed the fact that marketing intelligence involves the collection of
information relating to:
Competitors
Technological developments
Customers
Internal personnel
Suppliers
Resellers
It involves the gathering of everyday information about developments in the marketing
environment, performing analyses on the information and then distributing it to the managers who
need it. But where does the information come from? Market research relies on gathering
information from within the business and from sources external to business. What problems might
be associated with relying on internal information only? This could close off potential new ideas,
what you competition is doing? What your customers want and how their behaviour is changing?
Business needs to consider both internal and external information in their planning6.
To demonstrate the benefit of market research to your organisation it is important to identify the
role it can play and how it can help you achieve your goals and the direction for the whole
business.
Internal sources
Files paper or electronic – product, customer, supplier or team databases
Reports – Annual Reports, project reports, and sales reports
Intranet including industry news, processes, policies, procedures and performance
information
Internal sources also include talking to other staff within the organisation
External sources
Government departments or agencies such as Australian Bureau of Statistics
Peak bodies and representative associations – employer groups and trade unions
Various media including newspapers, magazines, trade journals, and internet
Libraries are also an excellent source of information
Areas to consider for your organisation:
The industry landscape – what does your business do and how do you fit into the industry?
Competitor profiles – What do you need to know about your competitors?
Other information to help you make your predictions and test your theories.
6 Source: Careers Australia, as at
https://static1.squarespace.com/static/56583ff6e4b0702d37f01a18/t/57843c98f5e2315860ef7e2e/1468
284068102/BSBMKG506+eBook.pdf, as on 4th September, 2017.
Activity 2
How does undertaking market research contribute to an organisation meeting its business
goals?
Activity 2
Activity 2
All marketers will agree that market research is important. Because the media landscape is in a
constant state of flux and marketers are constantly overwhelmed with data and business priorities,
though, marketers tend to shave timelines, do “internal” research, and lose sight of the need for
consumer marketing research for their organization7.
Market research, however, is essential to you and your brand’s long-term success. Market research
will keep your brand afloat while companies who fail to make research a high priority drown
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