Business Letter - Meaning
A letter is price of conversation by post. It is the most important means
of written communication. Every organization has to maintain contacts with its
customers, suppliers, Government Department and so on. The organization has
also to exchange information with various parties. Placing orders, soliciting
enquires, executing orders etc. require communication. For such type of
communication the media used by the organization is a letter. This letter is
known as business letter.
In the words of H. A. Murphy and others,
“The medium used most often for written messages to persons outside your
organization is the business letter.”
W. J. Weston said, “Business letter is the process of
accomplishing business transaction in written form.”
The functions or purposes of a business letter
Business people have to communicate with the suppliers, debtors,
creditors, customers and with other concerned parties to exchange information. Business letters are basically used to communicate with
the above parties.
According to Ricks and Gow, “The
primary purposes of business letters are to inform, instruct, request, inquire,
remit, order, advice, correct and to question.”
Purpose of Business Letter
1. Convey information: The basic purpose of any business letter is to convey information regarding
business activities. Information can be transmitted through business letter to
customers, suppliers, debtors, government authorities, financial institutions,
bank and insurance companies and to any other parties related with the
business.
2. Conclude transaction: This is one of the specific purposes of business letter. To
conclude in completed transactions business letters are frequently used.
3. Creation of demand: Business letters especially circular letters used to create demand for new products.
Circular letters can communicate many people in the same time.
4. Creation of goodwill: In this electronic era
messages can be sent within few seconds through electronic media but a well
decorated business letter has its own importance in creation positive image of
the company.
5. Expansion of business: Through goodwill messages
and through circular letters existing market can be expanded.
6. Establishment of
relationship: Another
important purpose of business
letter is, it helps to
establish mutual relationship with the customers, suppliers and with the other
interested parties.
7. Evidence: Business letters are also
used to maintain documentary evidence. Letters can be preserved for future
reference.
8. To inquire: A business concern not only
sends messages but also receive information from the outside. To run the
business any firm need different types of information from outside. Through
business letters firms can inquire regarding necessary matters.
9. Placing order: It is a very common purpose
for using business letter. Both trading and manufacturing concerns need to
place orders for finished goods or raw-materials to run the business.
10. Problem solving: In the course of business, disputes and misunderstanding may
arise. Business letters play vital role in solving such misunderstandings.
Essentials for a good Business Letter
Business letters are an important part of any business or profession.
They are written to different persons with different motives. Letter writing is
basically an art. The writer can cultivate a good style of writing various
business letters by a constant and regular practice. Below are mentioned some
of the important features which should be closely followed by a letter writer:
1.
Clarity: A letter must have clarity. The purpose of
communication should be made clear. Whether it is to inform, invite, reiterate,
emphasize, remind, announce, seek participation or clarity and correct the
earlier message, the purpose should clearly be stated. Lack of clarity affects
the intended purpose of the letter. A letter writer should be conscious and
exercise due care.
2.
Impact: The letter should create the necessary
impact. Behind every letter there is an objective and the letter should have a
clear purpose. The purpose of writing a letter is not just to reach out to the
customer. Every letter has an intended impact which must be felt.
3.
To
create the desired impact, it is often necessary to lay emphasis. Emphasis can
be laid in many ways. It can be done by proper positioning—placing them in an
important position. It can be done by repetition.
4.
Relevant Information: The letter should provide the relevant
details forming part of the message. Facts, figures, illustrations and other
such information, which are accurate and reliable, as well as relevant to the
context of the communication, should be incorporated in the letter.
5.
Brevity: Any good communication—oral or
written—should necessarily incorporate this essential feature. Brevity is a
very important attribute for any business letter. For everyone connected with
business, time is of essence.
6.
The
time that one can allot for reading business letters is certainly limited. The
receiver does not have unlimited time to spare towards reading and re-reading
the letter and drawing out the message in its entirety.
7.
Simplicity: Simplicity is the hallmark of any good
communication. Simplicity refers to the ease of understanding. Simple writing
is the opposite of complex and involved writing. The art of simple writing is
mastered through conscious effort and practice. A letter written in a simple,
easy, informal style using easily understood words catches the attention, and
makes an impact.
8.
Timeliness: Business letters, to be effective, should
have proper timing. Letters should be written and dispatched on time. Some
messages have a sense of urgency. They call for action, which is ‘immediate’ or
‘urgent’, or within a given time frame. Letters which carry such messages
should reflect the associated urgency.
9.
Language: Language is an extremely important facet of
business communication. First and foremost, it is necessary to ensure that the
language used is appropriate, i.e., the language with which the reader is at
ease. Apart from English and Hindi, various regional languages are in common
use in businesses in different parts of the country. Public sector
organizations such as banks follow the three-language formula.
10.
Appeal: A good letter should appeal to the reader’s sensibilities.
It should go beyond the message it conveys and make a good impression. It
should have elegance, which means taste, beauty and decency.
11.
Style: Style refers to the manner of writing. It
constitutes the collective characteristics of the writing or impression or way
of presenting things. Each person has an individual style. The writing style,
to create an impact, again needs conscious effort, on an ongoing basis.
12.
Positive Approach: A good business letter, in the ultimate
analysis, is that which has a positive approach. It creates a friendly
atmosphere. It avoids negative feelings. One must be in a proper frame of mind
to write a really good letter.
Components or
Stages of a Business Letter
The components of a letter constitute the different parts of a letter.
The following parts usually constitute the structure of a business letter.
1. Heading:
The heading which is also known as „head address‟ or “letter head”
contains information relating to the name of the organization and its address.
It is usually given at the top centre or top right side of the paper. Following
information’s are provided in the heading. The firm’s name, address, trade mark, telephone number,
telexes number, Ethics-mail address etc.
2. Reference
Number: The number which the receiver refers in all future
correspondence is called reference number. It is usually printed below the date
line or on the same line where the date is written to the right margin. The
purpose of reference number is to enable replies to be linked with the previous
correspondence and to send replies to these letters to the proper official or
department.
3. Date:
The date consists of day, month and year. The date finds its place
either at the starting of left margin or at the closing of the right margin as
the style adopted. Date enables quick references in future and helps in prompt
action and orderly filing.
4. Inside
address: The inside address contains the name and address of the
organization or the individual to whom the letter is written. It is written
below the reference time starting from the left margin. The inside address
makes a record on the copy which helps in identification for filling purpose.
5. Attention
line: Attention line is placed below the attention time and above the
salutations and is underlined. It indicates the name of those for whom the
letter is meant.
6. Salutation:
Salutation means to greet the addressee. It is the complementary
greeting with which the writer begins his letter. it is written below the
inside address or attention line leaving some space. It starts from the left
side margin. It may or may not end with comma depending upon the style of the
letter.
7. Subject
line: Subject line tells what the correspondence is about. It is placed
just below the salutation line. It usually begins at the left margin and may
also begin from the centre. It may contain apart from the subject any specific
identification material i.e. date of previous letter, invoice number etc.
8. Body
of the letter: It is that part of the letter which contains the message
to be converged. It is the most important part of the letter and usually
consists of three to four paragraphs.
The first (or the opening paragraph) begins
the letter and builds up a relationship with the reader.
The second paragraph contains the proper subject matter. It is the main
paragraph of the letter.
The third paragraph is an extension of the second paragraph.
The fourth (or the closing paragraph) brings
the letter to an end. It must be natural and logical must be final and complete.
Closing with an important statement, a
question, an offer or a request leaves the door open for further communication.
9. Formal
Close: It is also known as subscription. It is merely a polite way of
ending a letter. It is written below the last paragraph of the body of the
letter, either at the left side or at the right side, depending on the style of
letter. The subscription should be corresponding to the salutation.
10. Signature
block/slot: Signature is the assent of the writer to the subject matter
of the letter and is a practical necessity. It is usually hand written and
contains the writers name, status, department, firm etc. Signature is put just
below the complementary close.
11. Enclosures:
Sometimes some documents like price list catalogue etc are attached with
the letter. Enclosure mentions the documents which are enclosed or attached
with the letter. The enclosures usually find their place at the bottom left
margin.
12. Postscript:
It is commonly known as is something written after the letter is closed.
It is usually done when the writer forgets to put in some information or
message in the main part. It should be very precise and to the point.
13. ‘CC’
or Carbon Copy notation: When copies of the letter are meant to be sent
to more than one person it is mentioned under “CC” or carbon copy notation.
14. Reference
initial: When typed initials are put it refers to reference initials.
These are useful for office checking. They are typed adjacent to the left
margin.
Difference between Business
letter and other letters
1.
Nature: Business letter or
commercial letter it is impersonal and universal in nature. But other letters
may be fully or partly personal in nature.
2.
Purpose: Business letter is
exchanging various business related issues and information. But other letters
are mainly exchanging personal or family related affairs and information.
3.
Scope: Business letter scope is
wide and contains various types of business information. But Scope of other
letters is limited and contains only personal information.
4.
Structure: Business letter follow
officially recognized structure. But other letters may or may not follow any
recognized structure.
5.
Formality: Business letter it
maintains formal rules and procedure. But other letters may be informal.
6.
Size: Business letter generally
it is concise in size and avoids irrelevant matter. But other letters may be
concise or large in size.
7.
Types: Business letter it can be
categorized differently. But other letters generally cannot be categorized.
8.
Language: Business letter language
should be easy and simple. But other letter’s language may easy, poetic,
emotional etc.
9.
Copy: Business letter copy of
business letter is preserved. But Copy of other letters may or may not be
preserved.
10.
Method: Business letter it uses
direct and persuasive method. But other letters may use only direct method.
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