Business Correspondence - Meaning, Types, Importance
Business correspondence is the most significant means of business and official communication. Read the complete blog to learn more!
Izhar Ahmad28 Nov, 2023
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The most efficient way of connecting with people includes sharing information through written communication, such as texts or letters. This form of communication is generally called business correspondence, covering different types engaged in the corporate world.
The importance of business correspondence lies in its official nature, acting as a means for sharing information and keeping professional relationships among organizations, workers, and clients. Its writing style also ensures the shared information can be kept for future reference.Business Correspondence Meaning
Business Correspondence involves the sharing of information in written form within an organization (intra-organization), between different organizations (inter-organization or B2B), and between the organization and its customers (B2C and C2B). In the context of modern business, electronic correspondence has become increasingly indispensable. Ideally, all business communication should be conducted on the organisation's official letterhead. Letters are crucial in establishing positive relationships with various stakeholders, including customers, suppliers, and service providers. The impressions shape the perception of an organization conveyed through these business letters, which serve as a bridge between different parties.5 Main Types of Business Correspondence
Various types of business correspondence are widely employed within companies. The five main types of business correspondence include internal correspondence, exterior correspondence, sales correspondence, personalized messages, and circulars.Internal Correspondence
Internal correspondence constitutes written communication within the same organization, involving employees, units, departments, and branches. It can range from formal to less formal, with routine exchanges, like brief instructions between a supervisor and staff, often taking the form of emails. More formal internal correspondence includes promotion letters, written reprimands, notices to explain, memoranda, formal requests for approval, and letters of approval or dismissal. Ideally, these communications are printed, signed, and physically received.External Correspondence
External correspondence occurs between distinct organizations or an organization and individual clients. This written communication extends to vendors, creditors, suppliers, existing and potential customers, financial institutions, government offices, legal and accounting firms, business affiliates, sponsors, donors, and other entities with direct or indirect business ties. Formal types of external correspondence include business letters, official invoices, purchase orders, contracts, requests for proposals (RFPs), quotations, press releases, letters of intent, warranty certificates, and letters of recommendation.Sales Correspondence
Sales correspondence involves communication related to sales activities, encompassing marketing letters, offer and discount letters, sales proposals, invoices, statements of accounts, sales reports, order confirmations, purchase orders, letters of authorization, and collection letters. Effective communication in sales, especially through quality sales letters, is essential. It's crucial to provide truthful and non-misleading information in marketing and offer letters. Other forms of sales correspondence include invoices, purchase orders, and collection letters that must contain accurate information.Personalized Correspondence
Personalized correspondence incorporates personal and emotional elements and can serve business purposes. Examples include letters of gratitude, requests, appreciation notes, and congratulations or commendation letters. While this type of correspondence doesn't necessitate a highly formal tone, physical letters are preferable for their personal touch, using regular office paper, a personalized notepad, or a purpose-specific greeting card.Circulars
Circulars are notices disseminated to a large audience within an organization, also known as office instructions or announcements. They commonly convey general announcements such as changes in contact information, details about shareholder meetings, and instructions on specific protocols.Looking for the Best Commerce Coaching?
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Format of Business Correspondence Letters
The formatting of business correspondence letters depends on the preferences of each individual firm. Nevertheless, certain standardized styles have been widely adopted over time, including:- Indented Style
- Block Style/Fully Blocked Style
Indented Style
This style, considered the oldest for typed letters, involves indenting the first line of each paragraph by 5 or 7 spaces from the left margin. The remaining lines of each paragraph are then typed from the left set margin.Block Style/Fully Blocked Style
Currently the most commonly used layout for business correspondence, this method is perceived as both businesslike and sleek. Also known as the American Style, it entails aligning every line flush with the left margin, with no indentation for paragraphs and no centered headings. Two blank lines separate paragraphs.Semi-Block Style
A hybrid of the Indented Style and the Block Style, the Semi-Block Style omits the indentation in the first line of each paragraph in the letter body. All paragraph text aligns with the left margin, while other parts of the letter follow a format similar to the Indented Style. This style provides a balanced and neat appearance, with paragraphs separated by double or triple spacing.Importance of Business Correspondence
The importance of business communication is important for the achievement of company goals. Meeting people face-to-face can be a time-intensive task, making business correspondence crucial for several reasons: Fostering Healthy Relationships: Business letters play a key part in promoting effective and economical communication, both within and outside the company. This clear and concise communication improves business partnerships. Documenting Facts: Business correspondence serves as a useful tool for record-keeping, giving proof that can be reviewed at a later date. Building kindness: The growth of a company is closely tied to business correspondence, which creates goodwill between businesses and clients. Letters, whether expressing complaints, feedback, or ideas, add to the development of good relationships. Cost-Effective Communication: Business writing stands out as a cost-effective way of communication, saving both money and time. This way of communication proves highly useful for businesses. Clarity in Communication: Through its official nature, business writing ensures simple communication between interested parties. Encouraging Business Expansion: Business correspondence allows a smooth sharing of information about goods or resources, enabling efficient manpower utilization and time management. This, in turn, drives business development and growth.Business Correspondence FAQs
What are the 3 types of correspondence?
The three types of correspondence are internal, external, and sales correspondence.
What is the main purpose of correspondence?
The main purpose of correspondence is to facilitate effective communication, maintain relationships, and serve as a record of information exchange.
What are the basic principles of correspondence?
The basic principles of correspondence include clarity, conciseness, and proper formatting for effective communication.
Which are the popular style of business correspondence?
Popular styles of business correspondence include indented style, block style, and semi-block style.
What are the 4 types of formal letters?
The four types of formal letters are letters of inquiry, application letters, letters of recommendation, and complaint letters.
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