Business Communication BOOK 1ST MBA @ BEC DOMS

8/2/2019 Business Communication BOOK 1ST MBA @ BEC DOMS

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Business Communication

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CONTENTS

1. Communication in Business

2. A Good Business Letter

3. Commercial Correspondence

4. Format of Business Letters

5. Circular Letters6. Sales Letters

7. Follow up Letters

8. Trade Enquiries

9. Offers and Quotations

10. Trade Offer

11. Status Enquiry

12. Confirmation of Orders

13. Complaints and their Adjustments

14. Collection Letters15. Making Payments

16. Application for Situation

17. Banking Letters

18. Agency Correspondence

19. Corresponding with the Government

20. Drafting of Reports

21. Secretarial Correspondence

22. Import Trade Correspondence

23. Export Trade Correspondence

24. Writing of Minutes

25. Letters to Editors and Complaints to Personnel

26. Insurance Correspondence

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Chapter I

COMMUNICATION IN BUSINESS

Objectives of Communication

Communication is a means by which different persons are linked together in a group or organization to attain a commongoal. No group activity is possible without communication. it enables the members to co-ordinate, to exchange and tomake progress. A good communication should aim at making everyone concerned aware of the goal which the

organisation wants to achieve. The two main objectives of communication are to inform and to persuade. A group of persons, whether a social community or a business firm, can pool their4 effort for a common goal only if all the membersof the group know what they are working for a trying to achieve. Individuals and sections in a group will try to persuadeone another to change ones attitudes, ideas etc. so that the whole organisation may benefit. Effective and efficientperfo0rmance of work in any office calls for providing convenient and efficient means of communication. the specificobjective of each message may b e to instruct, to advise, to request and so on, depending on the nature of relationshipbetween the transmitter and the receiver. Communication may be downward top to bottom, upward-bottom to top or horizontal-between persons of same status. Let us briefly look into the goals/objectives of communication.

1. Information Giving

Information may be given orally or in writing. The basic objective of communication is to turn the static into dynamic.Information effects decisions. Information needed for daily work can be given orally. If large groups have to beinformed, a meeting may be called. Good management believes in keeping employees well informed about thecompanys aims, plans, progress and prospects about working and service conditions, training and promotionsopportunities and the benefits available to them. For instance, farmers in India have simple organisation. They needinformation about weather, prices, availability to seeds, facility of irrigation, market trend etc. And these pieces of information are gathered from friends, relatives, through radio, television etc. On the basis of the information gathered afarmer takes decisions: What and when to sow? From where to get seeds? How to solve the problems of irrigation?How and from where to get financial assistance? etc.

Many companies circulate news about their employees, their achievements and event their family affairs so as to createan atmosphere of social friendliness. However, pointless communication is a waste of time. The purpose of allcommunication is to bring about change for the better. Communication is intended to influence action is order topromote the common welfare of an organisation or a group.

2. Education is Trading

Education means imparting instruction, character building, enriching mental faculties, giving training to human being etc.Communication is vital in education. Education is achieved through communication. Employees are trained essentiallyby communication. Communication can be accomplished by means of lectures, discourses, books, cassettes, videos,seminars, conferences, study-tours, mock-sessions, case studies etc. all education takes place by means of communication. a supervisor or any other person entrusted with the responsibility for training must have the ability tocommunicate.

3. Motivation

Motivation means getting people to give their best. The manager communication with the people be manages andmotivates them. He has to get people to work as a team. The motivation of the employees depends upon the patienceand sympathy shown by the management. Motivation cannot be achieved by a single communication. It can beachieved only by a constant policy followed in all communications. Creation of healthy worker attitudes and goodrelations is a slow and continuous process, which takes place through communication. it is always advisable to orientatethe employees with the companys target, aim, object etc. through communication.

4. Counselling

Companies which are concerned with employees welfare have counselling centres for their employees. Services of specialists are engaged for the purpose: and employees receive free medical advice, legal advice and vocationalguidance. Counselling can be successful if there is a two way communication.

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5. Persuasion

Including, compelling or prompting a person to do or to act, mostly in a positive way is persuasion. Managements try topersuade their worker to put in their best effort. Politicians persuade people in vote for them; teachers persuade their pupils to listen to them and study; sellers persuade customers to buy etc. Persuasion is an important objective of communication. Sales letters, advertisements etc. seek to persuade customers. When new policies or machineries areintroduced, employees resist, fearing retrenchment. In order to accept the change, the managements must persuadethem not to fear. Persuasion is more easily done by a person who enjoys respect and confidence of those whom hewishes to persuade. a good enunciation can make a person very persuasive.

6. Suggestion

Suggestion coming from employees are upward communication. the employees actually involved in the work have abetter understanding of the shortcomings and can make useful suggestions for improvements. In big concernssuggestions are collected at regular intervals by means of a suggestion box. They are rejected or accepted or further clarification is asked for from the suggestor. Communication is used to convey suggestions or ideas. This is beingconstantly done is all human groups. Someone makes a suggestions and the others react to it. Such intercourse of ideas and suggestions is the moving force of all action in a society or in any social group like a family, office, factory,state, nation etc. effective communication promotes the acceptance.

7. Morale Boosting

Morale is the state of discipline and spirit in a body of workers, army or nation. Morale must be kept high with constanteffort and regular and consistent policy. Rumours of close down, a take over, retrenchment etc. cause anxiety and fear in the minds of employees. When morale falls, communication has to be stepped up. When employees are in fear, thetop management has to reassure them ad keep up their morale. Special morale boosting communications have to bewell-timed, carefully planned and coordinated. They must fortify workers against debilitating frustration and inspire themto put in hard work that can produce good results.

8. Advice

Advice is opinion about what to do, how to behave etc. Therefore it is a kind of information. Parents advise their children. Grown-us advise young ones. Teachers advise pupils. Politicians advise everyone else. Advise means opiniongiven as to the action to be taken. Advice is most effective if it is oral face to face. If the advice is on official matters,the senior can speak with authority. If the advice is on personal matters, it can be offered as a suggestion. However,good communication, in the form of advice facilitates the detection of defects and drawbacks and good results may be

expected in a given situation. In any sense of the word, advice denotes some communication which is aimed at bringingabout a change.

9. Warning

To warn means to give notice to. A warning may be given orally or in writing. A written warning is often called a memo.Warning may be given to an employee for his indiscipline. Groups may also be warned against activities that disrupt or obstruct smooth functioning or regular work. At first an attempt is made by advice, request, suggestion, instruction,orders etc. When all these fail, a warning is given.

10. Appreciation

Appreciation of initiative, good effort and work by employees is very useful for creating a good attitude. It may beconveyed orally. If given publicly, it has better effect. Letters of appreciation will certainly boost a flagging morale.

Man is a social animal. He fosters relation with his fellow-men by means of effective communications, such as listening,speaking and writing. The story of civilizations and culture is, to a large extent, the story of mans advancement in the artof communication. the transformation of our planet into a global village owes much to modern communication systemssuch as the telegraph, the telephone, the television and the internet.

The life blood of a business organisation is purposeful communication. it transfers thought from one person to another. Itdirects controls and evaluates each and every activity of the organisation. No group activity is possible withoutcommunication.

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Aims of Good Communication

Good communication aims to reaching the goals which the organisation wants to achieve. According to Scott,Administrative communication is a process which involves the transmission and accurate replication of ideas ensuredby feedback for the purpose of eliciting actions which will accomplish organizational goals. The message to be given isthe information, which is to be transferred from one to another in an effective manner. If the message is understood bythe reader, communication is said to have served the purpose. Our letter is our ambassador. It reaches where wecannot reach a business letter represents the firm or the business house from it springs. The letter must strengthen thefriendship between two business houses or the customer and the dealer.

Barriers to Communication

Barriers are the obstacles which cause problems in communication. When an organisation is large, it will confront moreobstacles. The problems or the difficulties are called barriers to communication. the chief aim of communication is to geta definite response. A perfect act of communication takes place when the information as aimed by the giver is passedon and is understood by the receiver. Organizational communication is totally a human oriented process. The failure of communication is mainly a human failure. Despite the development of high speed electronic devices communicationdoes not always accomplish what it aims at. Communication barriers lead to misunderstanding and conflict.Miscommunications can originate at three levels : at the level of eh transmitter, of the medium or of the rece4iver. Thereare mainly three types of communication media (i) Oral, (ii) Written and (iii) Gestural. All these media have their relative merits and limitations. A proper selection of media can add to the effectiveness of communication, whileimproper selection of media may itself act as a barrier to it.

See the following examples:

COMMUNICATION BARRIERS

Sender of Message

Noise

Time and Distance

Interpretation of words

Inattentiveness

Premature evaluation

Unclarified Assumptions

Status Block

Closed Mind

Organizational Barrier

Resistance to Change

Receiver

(i) A Sales Representative generally sends his sales report to his firm. If he writes the report in lengthyletters or talks loosely on phone, he fails to communicate the right purpose. If the reports are in atabular form or diagrams, the receiver can clearly grasp the situation, at the first sight.

(ii) When a worker, who is guilty of misconduct in a factory, wants to apologize to his foreman, a writtenexplanation alone will not be sufficient. A face to face communication will definitely lead to an amicablesolution.

A brief explanation of each of the above:

1. Noise: Noise is quite often a barrier to communication. Noises, mechanical as well as natural, are a barrier toeffective communication. They distract both sender and the receiver of the messages. For example, a factorythat employs noisy machines hinder oral communication, Conversation becomes difficult due to physical noiseand hence the messages get distorted and unclear.

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2. Time and Distance: Smooth flow of communication is quite often affected by the time and distance. There isno doubt that the development of computer technology has made communication very fast and it has evenovercome the space barrier. However, sometimes owing to the breakdown of modern equipment,communication is interrupted or delayed. Conveying a message at the right time to the right place is essential.Imperfect and delayed information is of little use and often creates confusion.

3. Interpretation of Words: Communication is carried on through words, whether spoken or written. Words arecapable of communicating a variety of meanings. When the giver uses words or phrases which have a variety of meaning, the listener may not get the proper message or understand it in a different sense. It is possible thatthe receiver of a message does not assign the same meaning to a word that the sender has intended. This maylead to miscommunication.

4. Inattentiveness: When the receiver does not pay complete attention to the message, communication becomesineffective. Many people do not pay proper attention when others speak. Inattention leads to inadequateabsorption of messages. Attention is guided by self-interest. All messages should be received with full attention.Concentration is very essential. A person may be inattentive when he considers the message as superficial or uninteresting.

5. Premature Evaluation: Most people exhibit a tendency to evaluate while communication is being carried on.But this leads to premature evaluation and thus hampers communication. it is not advisable to jump toconclusions. Evaluation should b e made only after getting complete information.

6. Unclarified Assumptions: Many a time communication suffers because of vague or unclarified assumptions.When authority is delegated, it should be clear. One should know clearly what one is expected to do. It must beclear in the message itself. Unclarified assumptions lead to complications.

7. Status Block: Every organization has some kin d of hierarchical system. Some persons have higher statusthan others. People in senior positions develop the feeling that they know everything as to how to run thebusiness. People of lower status do not feel free to talk to their superiors. It is generally seen that executivespend their time in telling and commanding. But they do not listen to or ask opinions of subordinates. Thisnegative attitude of executives is a barrier in the process of two-way communication.

8. Closed Mind: A person who assumes that he knows everything will be rigid and dogmatic. Such a person is of limited intellectual acumen and narrow interests. When a junior comes to an executive with some new ideas,the executive should listen to him with an open mind. However, if he is closed minded, communication willbreakdown as he is not prepared to consider his juniors ideas. The junior consequently, fails to take advantageof the juniors ideas which may be original, creative, brilliant.

9. Organizational Barrier: The classical organizational structure with a scalar chain of command restricts freeand frequent communication. When the organisation, orders and information have to pass through many levelsof authority. Too many levels intervene causing delay in transmission and distortion of the message. The morecomplex the organisation, the more difficult it becomes to ensure that correct information is passed on to theright person at the right time through the right medium.

10. Resistance to Change: The resistance is an important obstacle to effective communication. there is a generaltendency among human beings to maintain status-quo. Change frightens them. They lack the spirit of adventure. They turn a deal ear to new ideas and glorify the past. They cease to be receptive tocommunication. then conservatism this becomes a barrier to communication.

Correspondence

The term correspondence means communication by exchange of written messages. Commercial or businesscorrespondence, as it is now-a-days called, refers to the written communication relating to business of any interest toboth the parties, between whom messages have been exchanged. The purpose of letter writing is to pass on theinformation to the recipient without personal contact. Written words convey the meaning and feeling of the message.

Words are the symbols we use to express out ideas. They are the tools of effective communication. the best words inthe best order have tremendous power and appeal. They convey our thoughts to other people in language that isunmistakably clear and readily understood. To write effectively you must choose the right words and use them to

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express yourself clearly, concisely and directly. You must not fall into the trap of pompous and unfamiliar words androundabout phrases. Choose the language that best communicates your message.

Communication is a two-way traffic. The communication between two parties fail for a number of reasons. Make a firmnote of the following:

1. A letter containing a badly expressed message or written in an unintelligible language finds a place in therecipients waste basket.

2. An inaccurate letter leads to inefficiency.3. A communication succeeds only when the person being communicated to respond positively. To achieve this

the letter must be persuasive.

4. People will be repelled by letters written in a roundabout way or discursive style.

Principles of Effective Communication

Modern business is busy, complex and comp0etitive. Buying and selling is done rapidly. Every business is inextricablybound up with several others. There is competition among different brands of a product and also among differentsellers. Time is precious. The following broad principles may be followed when you write business letters:

1. Business letter-writing calls for a plain style-a style i.e., simple clear and easily understood.

2. To write clearly one must think clearly and have a clear awareness of the purpose of his letter.

3. Clear thinking and precise expression go hand in hand.

4. As a rule, common expressions must be used in writing.

5. Select the right medium of communication.

6. Try to give sufficient information to avoid further clarifications.

7. Try to create a cordial atmosphere.

8. Couch the message in clear and unambiguous terms.

9. Cultivate friendly personal relations adopting a friendly style.

10. Do not write any wrong or misleading information.

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Chapter II

A GOOD BUSINESS LETTER

Importance and Functions of Commercial Correspondence

In the field of trade and commerce, business letters of commercial correspondence have played a significant role.Letters are the only channels which facilitate the firm to maintain a constant touch with the other business. Easy andeffective conveying of information is possible through letters.

A good business letter, of course, is expected to invite new customers and retain the old ones, thus promote thebusiness. It creates a link between the buyers and sellers, who have never met nor are likely to meet. It can maintainclose business relations. Therefore, a business letter acts as a messenger.

Effective e business letters are the lifeblood of modern business because expansion of business or market from onecorner of the world to another is possible in the cheapest manner.

In the business world, time is a precious factor. One cannot waste time by dealing with the person through talks, but canconclude through letters. Moreover, writhing makes a lot of difference when compared to talking because people wollhave more faith in pen (letters) than in tongue (talks). Further, the possibility to commit errors through letters is far lesswhen compared to verbal dealings.

A good business letter can:

Chapter III

COMMERCIAL CORRESPONDENCE

QUALITIES OF A GOOD BUSINESS LETTER

1. Language: Good composition is invaluable in commercial corre-spondence. A well-written letter will be effectiveon the reader. A personal meet can be substituted by a good letter written in good language. A letter must havea good start to create an impression on the reader . In a business letter, proverb, and poetry have no place. Tobe simple, idioms, long phrases etc. should be avoided. The main object of business correspondence is tocommunicate a definite message clearly, concisely and in an interesting manner.

2. Clarity: Literary language should be avoided to create a clear and straightforward meaning. A good letter shows its idea directly and clearly. Each sentence must be as simple as possible. Whatever has to becommunicated, must be stated clearly. Clarity can be attained only when we have a clear idea of what we want to say.

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1. Attract new customers.

2. Bring back lost customers

3. Sell goods and services

4. Adjust complaints

5. Open new markets

6. Encourage dealers

7. Create goodwill

8. Collect bad debts

9. Act as a messenger and

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3. Coherence: (connection): A letter must be so well-planned that the reader is able to understand it even on thefirst reading. A lifeless business letter may not have any effect on the reader. If there are many subjects to bestated, the letter may be divided into paragraphs and written step by step. If the letter is confusing, the reader has to read the letter again and again.

4. Completeness : The form of a business letter should be understood properly. (The form of business letter isdealt with separately). The form of a letter consists of the name of the firm, the name of the place, date,reference number, inside address, salutation, complimentary close, signature, etc. Enclosures, if any, must beproperly mentioned in the letter and they must be securely attached. The body of the letter should give clear and complete information to the reader. The contents or the body of the letter must possess essential pointsthat the reader has to know. If the letter gives only part information much time is wasted in clarification andexplanations by additional correspondence. Hence while writing a letter, think properly and communicate to thereader all those points he needs to know. He should also understand the writers purpose clearly from the letter.

5. Conciseness (brevity): A letter must be as simple and brief as possible. Time is valuable for both the writer andthe reader. One should not beat about the bush in a business letter. Vague words and roundabout ways of expressions should be avoided. However, businessmen will always be busy. They may not generally waste timein going through long letters. What is superfluous should not be written. Completeness should never be

sacrificed for brevity. The easiest and simplest way to write good letters is to write as if the reader is sitting atyour table i.e as if you are speaking to him in person.

6. Correctness: A good letter is always correctly written and is always in correct form. The letter must be freefrom mistakes, errors of punctuation, mis-spelling, grammatical incorrectness etc. The information you writemust be accurate. Inaccuracy destroys confidence. Whatever is stated in a letter should be capable of beingbelieved by the reader.

7. Courtesy: Commercial correspondence must be courteous. Courtesy costs nothing. In business, courtesy is a

must. Courteous letters win friends, enroll new customers, retain old ones and win similar others favours. Theyalso win sympathy, respect and mutual understanding. A discourteous letter is probably more detrimental thanpersonal discourtesy because a written word is permanent. Courtesy can be shown in a variety of ways in thegeneral tone of the letters, addressing a person by his proper title, making prompt reply, complying with hisrequest etc. Phrases like, we regret, I am sorry, please, may we, we appreciate, etc. induce the reader to respond to the writer.

8. Consideration: One correspondence expert says, When writing a letter put yourself in your correspondentsshoes, sense his feelings and anticipate his reactions. The reader should know that the writer is aware of andis doing something for the readers needs and problems. A successful letter will naturally concentrate on thereaders intere3sts and take into account his problems, and convenience. Consideration comes from courtesy.

9. Concreteness: It mean s giving the fullest possible information consisting of facts and figures, correlatedinformation, suffusion, experimental results, etc. It is very important in sales letters, letters of introduction, etc.The idea or the information you write in your letter must be unchangeable. One must be firm in ones opinions.

10. Character: The mark of individuality is called character. A business letter should possess character. A letter must be able to attract the attention of the reader. Letters lack originality, when proper attention is not given totheir planning and composition.

11. Cheerfulness: In commercial correspondence negative or pessimistic approach should never be there. Lettersaim at earning the goodwill of the reader. It is always possible when a letter is begun with positive and optimisticapproach. The approach through the letters must always be friendly and convincing. As far as possible, avoidthe use of foreign or unfamiliar words, insulting or flattering words, etc.

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To convey your feelings as a writer you have to rely solely on the words youchoose and the way in which you use them.

The pen is mightier than the sword, is applicable in business and commercialcorres ondence.


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12. Convincing: The letter written should convince the reader as to the facts mentioned in it. When a new productis introduced in the market, the letter should say that the firm manufactured the product, after a couple of yearsof research: the quality has been approved by the Indian Standard Institute and a copy of the approval letter isenclosed. Each business letter asks the reader to take action. If it wins the confidence of the reader he will

positively respond to the request.

13. Conversational: A letter clearly only when it is simple and natural. The whole secret of good business letter-writing is to write in an easy natural way. Make your letters sound as much as possible like good conversation.

A good letter should not contain difficult words and obsolete usages. The letters tone should be friendly andnatural. There was a time when peculiar expressions were used in business letters, which made them stiff andformal. Now the tendency is to write in a simple, natural and almost conversational style. A business letter isnothing more than a conversation. Write the way you speak. For examples: Why say, In compliance with your request when you can say as requested? Similarly, why write due to the fact that when you can writebecause?

The Characteristics of A Good Business Letter

Writing Good Letters

The qualities of a good letter have been studied in the preceding section. In general, there is no method which isapplicable to all letters. There is also no universal system to be followed in business letters. Every writer has his ownmethod of writing letters. But the above said qualities are adopted in writing business letters. The writer should try toimprove his own way of writing,

A business letter should possess sincerity, courtesy, tactfulness, straightforwardness, completeness, correctness etc.Unnecessary details of generalization will merely confuse the reader. The reader should not say, I do not know what heis writing about. Therefore, every planning of the central theme is essential. It is also essential that all necessaryinformation is included. The letter should present to the reader the writers idea at once. The reader should not havetrouble to understand the letter.

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A good open business letter serves as master key that opens locked doors. Itopens the way for your goods or your services. It tells the story of the real character

of the firm. HN Casson.

1. Faultless composition is invaluable in commercial correspondence

2. A good letter should convey its idea directly and clearly.

3. The reader must be able to comprehend it on the first reading.

4. A letter must be as simple and brief as possible.

5. It must be accurate.

6. It must be courteous.

7. It must be reader oriented.8. It must be free from vague and indefinite statements.

9. It must aim at earning goodwill of the reader.

10.It must be convincing.

11.Its tone should be friendly and natural.


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The contents of a letter should be written in paragraphs, one by one linked to another by connecting thoughts.Paragraphing will help the reader to distinguish one piece of information from another.

Good penmanship is an asset worth cultivating, because a great deal of clerical work in the office requires to be donewith pen and ink. Legible and clear hand writing will be valuable. Illegible letters may be left unread. In general, a letter

must be written in a clear handwriting.Well drafted letters addressed, in time, to the addressee are favourably appreciated. Businessmen are usually prompt insending replies to letters. Personal attention given in replies naturally earns goodwill, which in turn, invites larger turnover. A well experienced businessman gives as much importance to business letters as to his salesman. Because abusinessman writes letters with the deliberate intention of persuading the addressee to respond positively, hencedeveloping the ability to write good business letters is of utmost importance. It is also a pointer to his competence as abusinessman. A letter in fact takes the place of a salesman and represents the firm sending it.

Apart from the qualities of a business letters, the following guide-lines will help you to write effective and fruitful letters.The points are not explained as they are self explanatory.

HOW TO WRITE GOOD LETTERS ESSENTIALS OF GOOD BUSINESS LETTERS

1. Think about what you want to say beforeyou start to write.

1. A business letter is an ambassador of thewriter. So be courteous in writing.

2. Jot down all the points you wish to write: 2. Courtesy can further be shown by prompt

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Communication is effective only if the message received is understood in thesense intended by the writer.

1. Choose words that the reader can easily understand.2. Use simple and everyday language.3. Use appropriate and effective language.4. Avoid jargons.5. Prefer active verbs to passive ones.6. Avoid redundant words. Verbosity repels readers.7. Do not use clinches.8. Avoid roundabout way of writing.9. Avoid unnecessary repetition of thought10.Avoid ambiguity; state the facts precisely.

11.A clear composition shows clear thinking.12.Avoid excessive details.13.Be courteous and considerate.14.Always respect your reader 15.Do not write irrelevant ideas.16.Do not write to a wrong person.17.Goodwill must be generated.18.A business letter must be brief.19.A business letter must be complete.20.Al the information that the addressee requires must be

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never mind the order. reply.

3. Now rearrange the points in the logicalorder.

3. Precision and clarity must be maintained thought-out the letter

4. Have a clear ideal of the character of theperson you are going to write to.

4. The letter must facilitate to achieve your objective. Clear objectives lead to easywriting.

5. Begin with a short paragraph stating whyyou are writing; you can refer to a letter received by you and mentioned the subjectof the correspondence.

5. You attitude must be followed, instead of I and We.

6. The actual message can be written in thesecond paragraph.

6. Confused thinking or mixing-up of factsmust be avoided.

7. The closing paragraph usually leads tosome action on the part of the reader, itasks him to write back, or to place an order,or to write to someone, or to look into somecomplaint.

7. Look before you leap and think before youspeak. Similarly, collect all essential factsand materials before you reply letters.

8. You attitude is the secret of effective letter. 8. The letter must evoke a friendly responsefrom the reader.

9. The language must be friendly. 9. Good letters create goodwill and cementlasting associations.

10. Remembers, a short well-thought-out letter has life.

10. The letter should have visual appeal.

After Writing a letter, ask yourself the following:

1. Does the letter SERVE its purpose?

2. Are the contents RELEVANT to the addressees need?

3. Does the letter carry ACCURATE facts?

4. Are the ideas CLEARLY expressed

5. Is the letter FREE from DISCOURTEOUS and UNPLEASANT LANGUAGE?

6. Does the letter RESPECT the reader?

7. Does the letter convey the idea at FIRST READINMG?

8. Does the letter ensure the GOODWILL of the firm?

9. Does it perform the FUNCTION OF A SALESMAN?

10. Lastly, can the letter create DESIRED IMPRESSION on the reader?

Chapter IV

FORMAT OF BUSINESS LETTERS

The structure of business letters is somewhat different from the form of letters to relatives and friends. They are more

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formal in style and expression than friendly letters. The reader must know at a glance where the letter comes from, whowrote it and such other details.

For the sake of convenience, let up split up a business letter into the following parts:

1. Heading

2. Date

3. Inside address4. Attention line

5. Salutation

6. Subject and Reference

7. Body or substance of the letter

8. Complimentary close

9. Signature

10. Enclosure

I. Intended Form/Stepped In Form

BRIGHT TRADERS

Hussain Road, Lucknow 226001

24 th April, 2002

Mr. Writer,

Horby Street,

New Delhi 110040

Dear Mr. Writer,

This letter is written in intended form. It is important to note that the first line of each paragraph begins after leaving considerable space from the left-hand. The inside address is also in intended form.

This type gives a good view. Uniform space is provided to have a pleasing appearance.

Five or ten spaces may be allowed from the margin for every new paragraph.

Your sincerely

(S. Ramu)

Manager

II. Hanging Indent Form

SCHOOL OF COMMERCE

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Marg Street, Allahabad 211 033

24 th April, 2002

Mr. Writer,

College of Economics,

Chennai 600010

Dear Sir,

In hanging indent form, the inside address and salutation are typed as in the block form. The first line of each paragraph begins flush with the left-hand margin. The remaining lines of each paragraph begin aboutfive spaces away from left-hand margin.

Double spacing is used between two paragraphs, but only single spacing between the lines. This form isconvenient and is not in common use. However, in sales letters, it is preferred to attract the attention of customers. This form has no place in private letters.

Yours sincerely,

General Manager.

III. Full Block Form

THE CORRESPONDENCE SCHOOL

M.G. Road, Coimbatore 641 013

24 th April 2002

Mr. Writer

Horby Street,

Agra 282 015

Dear Mr. Writer,

The block style of this letter is modern. This type is widely used in America. Every line of the letter beginsfrom the left-hand margin without allowing space. Only essential punctuations are typed.

The block type is preferred, because the carriage of the typewriter need not be adjusted. This saves timeand it is easy for the typist.

Remember that inside address, each paragraph, complimentary close, signature, etc., begin, from the left-hand margin.

Remember, a generous margin avoids shabby appearance and gives clear view.Yours truly,

(Manager)

IV. Semi Block Form

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THE COMMERCIAL SCHOOL

Gohala Road, Mumbai-400017

24 th April 2002

Mr. Letter Writer,

Great Mill Road,

Kanpur.

Dear Sir,

The semi-block form is a combination of block and intended forms. The inside address is typed inblock form, but the paragraphs are typed in intended form.

In the body of the letter, the first line of every paragraph is intended five or ten spaces. Thecomplimentary close, signature and the writers designation come at the right hand corner, below the bodyof the letter.

Allow four or five spaces for the writers signature.

Yours sincerely,(Manager)

Remember to Avoid:

1. expressions which insult the reader;

2. expressions which offend the reader;

3. expressions which irritate the reader;

4. expressions which are ambiguous in meaning;

5. expressions which are tactless;6. expressions which are threatening;

7. expressions which beat about the bush;

8. expressions which have to meaning;

9. expressions which are badly spelled;

10. expressions which are ungrammatical.

While writing a business letter, remember, a businessman aims at the basic functions, such as:

1. To win the confidence of the reader

2. To get a thing done by the reader

3. To influence the reader

4. To show clarity and sincerity of purpose

5. To give importance to the addressee

6. To get goodwill from readers

7. To facilitate understanding of contents

8. To avoid confusions

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9. To convey a concrete idea

10. To conclude a transaction favourably

Essential Parts of a Business Letter

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Chapter V

CIRCULAR LETTERS

Circular letters are the cycle of business dealings. A circular is a communication meant to convey information of abusiness firm to customers, business friends etc. in the course of business occasions will arise to send out circular letters. The sender aims at giving certain information to the public. There are also other ways to communicate or advertise in newspapers or journals.

Generally printed or cyclostyled circular letters have a few advantages such as (a) less expenses, (b) any number of letters can be posted in a day, (c) to a certain extent the personal meet of the sales agents can be substituted, and (d)the recipient, if interested, may call upon the firm or the sales agent, and so the agent need not wait to have anappointment.

The objectives of circular letters are:

1. To obtain publicity for a merchandise.

2. To impress the readers with the facts about the firm and the products.

3. To make the readers more interested in their contents.

4. To attain the confidence of the readers.

5. To stimulate sales.

Let us discuss a few examples of such circular letters:

1. Establishment of a firm.

2. Admission of a partner.

3. Retirement of a partner.

4. Death of a partner.

5. Shifting of a business to new premises or opening a new branch.

6. Conversion of firm e.g. Partnership firm into Limited Company.

7. Authorization of power.

8. Agency etc.

A circular letters is one that carries a communication to a number of addresses. The basic difference between a circular and a general letter is that, whereas the former is addressed to many persons, the latter is addressed to only oneperson. Circular letters are to be read by a large number of people, whereas general letters are personal and private innature. Therefore, circular letters must be specially well written in clear and understandable language, for example, acompany having a large numb er of shareholders has to send frequent circulars to them for making calls on shares,dividend purpose, etc.

Circulars have certain special characteristics. They are usually printed or cyclostyled. The inside address of the recipientof a circular letter is sometimes omitted, when the letter is under cover of an envelope. As regards the salutation,general form is, Dear Sir/Madam. The Signature must appear in circulars, and it may be facsimile.

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Some Model Letters follow

Model 3 : Announcing the opening of new business

Tes. 3242 Imports: Technical aids,

Gram : NEW ENTER Technical Machine,

GREAT ENTERPRISES

Chamber Road, Sadar Street

Mumbai 400018

Dated 30 th Aug. 2002

Ref. Noi. Tax/Cir/24,

Knitting Machines

Dear Sirs,

We are pleased to inform you that we have been appointed as the sole selling agents for the knitting machinesmanufactured by the Indian Knitting Machinery, Company, Bombay who are specialized manufacturers in this line.

To give a clear understanding of products we enclose a brief description of machineries. You will also be glad to knowthat these machines are exported to foreign countries like Africa, Iran, Australia and many other developed countries.

We are confident that these machines will be quite interesting to you specially because they are designed to producefully fashioned fabrics and all types of garment. Moreover, these machines are also capable of giving increasedproductivity and are simple to operate.

We will be glad to supply you the complete literature about these on hearing from you.

Yours faithfully,

For Great Enterprises.

While drafting the circular letters, the following points have to be remembered:

1. The letter must have a personal touch

2. The letter must be complete in all respects

3. Avoid promises which you cannot keep.

4. The language must be polite and attractive.

5. It should be free from errors.

6. The opening para should arrest the attention of the reader.

7. Body of the letter should arouse and sustain his interest

8. The letter must have a beautiful get up.

9. A warm and friendly tone may be used.

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Model 4: Announcing the formation of a limited company:Phone : 2542Gram : JAMESCO

JAMES MORTON & COMPANY LTD.Church Gate,

No. J4/Circular Manchester 30 th Aug. 2002

Dear Sir,On behalf of the Director of James Morton & Company Ltd., I take this oppoprtunity to inform you that the

business of Morton Company will be-continued under the name and style of James Morton & company Limited fromtoday viz, 30 th Aig. 2002 the family of the late Morton Esq. taking a large interest in the new concern and Mr. Smith, hisson being one of the directors.

Among several friends, who have also taken a large interest therein. In have great pleasure to inform you that weformed an Advisory Board consisting of 12 members to make the produce cheap and useful.

The directors have agreed to continue the business with the staff of the previous firm and they are experienced in thisparticular line. We will be setting up a new factory by the beginning of September 2002. The company is prepared toexecute all orders entrusted to them, with utmost care and on specially advantageous terms.

While thanking you, as one of the numerous friends of the late firm, I request you for a continuation of your confidencein the new company and assure you that all future orders and contracts will be executed with the same care and

promptness as hitherto.

Yours faithfully

(General Manager)

Model 5: Circular letter of a retiring partner

Phone : 645

Grams: RAMCO

RAMGOPAL & COMPANY

Kali Temple Road

Agra 282001

..

..

..

Dear Sirs,

It is with regret to inform you of my retirement from business on account of my old age and failing health.

My retirement will not affect in any way the business of the firm with which I have been connected for so many years.My other partner4s have already made most satisfactory arrangements to carry on the business under the same nameand style. My nephew Mr. Paul who brings an additional capital of Rs. 20,000 into the firm will be admitted as a newpartner. His smartness and experience in the business line, combined with the experience of my old colleagues, I feelconfident that the firm will succeed in maintaining the fair name and reputation of the firm in future years. I trust, you willbe so good as to continue to extend your patronage to the new firm in the future as you have done in the past.

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I shall always remember with feelings of satisfaction the friendly relations that have covered so many years between us.

I wish you the continues prosperity.

Yours sincerely,

P.K. John

Model 6: Expansion of business

DE JOHN & COMPANY

(Manufacturers of Steel Furniture)

New Delhi 110018

30 th Aug. 2002

Cir/56

Dear Sir,

The object of this letter is to inform you that we are aiming to start a branch of this firm in Madurai as we arereceiving many enquiries and orders from that place. In order to give more satisfactory service to our valued customersof Madurai region, the firm will be situated in the heart of the city, with the following address.

DE JOHN & CO.Br. Office,College Road,Madurai-625001

We are sure that you will appreciate our expansion of business. We invite you to pay a visit to our new branch at your earliest convenience.

Mr. Smith, who was at the Head Office for 10 years, in charge of the execution department, is the Manager of theBranch at Madurai. His personal attention and abilities will please the customers, in every respect. The branch will startfunctioning most probably by the 15 th of Sept. 2002. Therefore all your enquiries in future may please be sent to newbranch.

We trust that the pleasant business relations, which have existed between us, will be continued with the new firm, wheredirect relation is possible.

Yours sincerely

For De John & Co.

Model 7 : Informing change in personal matter

BEST GARMENT CENTRE

Pattom Road

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Mumbai 40001230 th Aug. 2002

Mr. Sethuram Sales Representative

Dear Sir,

We regret to announce that Mr. R.M. Berry, our valued and energetic Sales Representative has tendered his resignationwith effect from 15 th September 2002. Therefore, he will cease to be in our service from the said date.

Arrangements have been made to transfer Mr. P. Sethiuram in his place. Mr. P. Sethuram, as some of our customerswill remember, has previously served in your area. Thus he is not a new representative. We are sure that he will enableus to maintain our best relations in a satisfactory manner.

We take this opportunity to wish you and your firm a prosperous future.

Yours sincerely

For Best Garment Centre

Model 8 : change of address

EDWARD & COMPANY LIMITED

Mincing Lane,London E.F. 220 th Aug. 2002

..

....

Change of Address

Dear Sir,

This is to inform you that owing to lack of spaces, we are compelled to seek for more commodious premises. Accordingly, we have decided to shift to Chruch Road, which is about 2 kilometres from the existing firm.

We therefore, request you to send all your communications, after 10 th September 2002 to the new address:

EDWARD & CO. LTD.CHURCH ROADLONDON E.C. 2

We trust that the new premises, being more commodious and central in position, wil certainly be convenient to you.

Yours faithfully,

For Edward & Co. Ltd.

Model 9 : Introduction of a Partner

S. CHAND & COMPANY

Ramnagar,

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New Delhi 110055

Dated ..

.

Introduction of a new partner

Dear Sir,

We are pleased to inform you that we have this day admitted to our firm Mr. Banerjee who has great experience in thisline.

We are fully confident that Mr. Banerje will have keen interest in the welfare of our five and contribute to its further development.

We thank you for the cooperation you have been extending to our firm in the past and earnestly hope the same will becontinued.

Yours faithfully

For S. Chand & Co.

Model 10: Announcing price reduction

Garment Palaced

M.G. Road,Mumbai 4001097 th July, 2002

Dear Customer,

You will be pleased to know that during this month, we offer you at extra-ordinary REDUCED PRICES of all readymadegarments. The range of colour, designs and sizes takes you to a land of dreams.

When?: This Reduction Sale begins from 8 th July and ends on 31 st July

Place: High Ground, Mumbai 20

Time : From 8.00 A.M. to 10.00 P.M. except Sundays.

As a special offer, we shall make reductions from the regular prices that will show you a savings, in almost all the items,of 35-40%.So hurry up. Visit us soon.

Delay may disappoint you.We have only limited stocks.Visit and select items without delayThanks

Yours sincerely,

Model 11 : Sale of a business

RAM AND SONS

East Car Street,Madurai 625002

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8 th August, 2002

Sir,

Let us thank you for your confidence in us in the past.

Owing to our old age and continued ill-health, it has become imperative on us that we should retire b y disposing of our interest in the firm.

We thank Mr. R. Gopal, who has been our Accountant for many years, for his offer to take over the business from thisday with all its assets and liabilities. By this act of takeover, Mr. R. Gopal becomes the sole proprietor of this firm. He willreceive and disburse all dues and claims outstanding. You will be glad to find him highly efficient and a man of fullknowledge of transactions concerning the business.

We appreciate your patronage and relations existing between you and this firm. We fully hope that you will extend thesame favour to Mr. R. Gopal, who is ready and competent enough to maintain the old traditions of prompt and sincereservice of this firm to all.

Thanking you,

Yours sincerely,

(Old partners)

Model 12: Clearance Sales

TOPSONS LIMITED

Topson Buildings,Highway,Kanpur,8 th August 2002

.

.

.

Dear Sirs,

The purpose of this letter is to inform you that we propose to demolish our present building in order to reconstruct it tolatest model. This will necessitate to remove the goods to a new building. In order to minimize the cost of removal, wehave decided to have a clearance sale of stock at reduced prices-15% down from the listed prices of all goods.

Therefore, we extend our invitation to you to visit our shop at an early date. This is a rare chance for you to make allpossible purchases, enjoying this substantial reduction in prices. At the same time, it is needless to say that our stocksare of the best quality.

The clearance sale commences on the 15 th of August. We will be glad to see you in our shop as early as possible. Thisis a rare opportunity. Your early arrival will facilitate you to enjoy a wide selection of goods.

Your early arrival is appreciated.

Thanking you.

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Yours sincerely.

Introducing a new product

Hints:

1. Give news of the new product that you have introduced.2. Describe the use of the product.3. Physical features are to be high lighted.4. Create interest in the minds of people.5. Proverbs, eye-catching words, striking statements can be given.

Model 13: Circular letter, introducing a new product

RAM ENTERPRISES LTD.

Ran Nagar, Bangalore 560002

Dated.

Sir,

Fresh and pure these are just two of the reasons why you should have our BABY BUTTER on your dining table.

Manufactured with the help of improved and up-to-date machinery. BABY BUTTER possesses genuine flavour andnatural delicious taste. The installation of modern appliances enable us to prepare it untouched by hands and thisensures its purity.

The BABY BUTTER is bottled in sterilized glass which containers are hygienically sealed to prevent contamination.

Arrangements have been made for the delivery of BABY BUTTER to the door of our customers from our own vans byour own men. This renders its adulteration in transit impossible.

The enclosed phamplet will tell you what analysts think of BABY BUTTER. It is indeed after prolonged experiments thatwe4 have been able to offer this butter to our customers.

The demand for BABY BUTTER is continually increasing. The leading hotels and restaurants of Bangalore have startedusing it. Very soon the demand of it will exceed the supply.

Do you want pure and fresh BUTTER at reasonable prices? Kindly register with us your name and requirements withoutdelay by mailing us the enclosed proforma.

Thank you for your immediate attention.

Yours sincerely,

Model 14: Obtaining an agency

Ramco and company

179, Carbo Street,Cochin 68200110 th Aug. 2002

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Dear Sir,

We are happy to announce that we have been entrusted with the task of marketing SPEEDO CYCLES throughoutKerala State.

These bicycles requires very little introduction to the market. It is needless to mention that SPEEDO CYCLES are worldfamous. The quality of the bicycles is above the average. The patrons of these bicycles are convinced of their superiority in comparison with the similar products in the market.

We have stored ample stock for immediate delivery and propose to offer you a liberal trade discount of 10% from our catalogue price. We enclose a price list of all models for your ready reference.

You have a great confidence in us for serving you to the best of our ability with promptness and superior quality of goods. We feel sure that we are offering once more a commodity of unquestionable quality on the most convenientterms.

Let us look forward to you for an opportunity to prove that we are at your service with our present standards fullymaintained.

Thanking you.

Yours sincerely,

For Ramco & Company

(Sales Manager)

Model 15 : Circular letter acquisition of a firm

RAMLAL AND SONS

Main Road,Bilaspur 484 001

Dated.Sir,

We take pleasure in informing you that the Modern Stores, 240 C Nagar, Bilaspur has been acquired by us. We shallstarts transactions from Monday, the 5 th August.

Our long experience in the line and bigger investment place us in a position to offer better goods to the customers. Wecontinue to trade under the old name and make effort to adhere to our predecessors policy of found service on whichthe goodwill of the firm has been built.

We propose to offer the old stock in a bargain sale next week on attractive terms.

We hope you will be kind enough to extend your usual cooperation.

Thanking you.

Yours sincerely

Model 16: Reduction Sale

MADANLAL TRADING COMPANY

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Yours faithfully,

For Ramdas & Co.

Ramdas

(Partner)

Apart from circulars, form letters are also used. A form letter is a kind of model letter and will be filled in appropriateblanks. These are used because it saves time from dictation and typing. If there are many form letters, they may benumbered. The typist has to type only the blank spaces.

Model 18 : Dispatching as per order

MURUGAN TRADING

(Dealers in Type writers)

Mahal Road,Madurai 625001Dated

Dear ..Thank you for your order dated for supplying . Portable typewriting machine.

The machine has already been dispatched on through .. (carrier).

The way bill and other documents for Rs have been sent through our .. (bank) .

Our Sales Representative Mr. .. will call upon you on to see the working condition.

Yours sincerely,

For Murugan Trading

(Sales Manager)

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Chapter VI

SALES LETTERS

Publicity has a very important role to play in a competitive society. No business can be done successfully withoutpublicity in one or the other form. Publicity and advertising are impersonal form of salesmanship. A sales letter is just apart of publicity and advertisement. In the course of business, occasions arise when a seller wants to approach hiscustomers in order to introduce a new item to promote sales, to push out ones stock etc. letters sent out with this aimare known as sales letters. A sales letter is nothing but an advertisement, aimed at a carefully selected group. A salesletter is a very useful instrument to call on a particular group of customers.

Sales letters are persuasive in nature. Many firms think every letter that goes out from the office is a sales letter,because every business letter aims at an opportunity to sell the firms product or earn goodwill for the firm. To a certainextent the salesman is substituted by the sales letter, because the purpose of the salesman and sales letter, is the sameto push up sales. Therefore the function of a sales letter can be compared with that of the salesman. However, salesletter has certain advantages and disadvantages.

SALESMAN SALES LETTER

1. It is expensive to appoint a salesman 1. It is very less expensive to operate

2. Sometimes the salesman has to makerepeated visits to the buyers for interviews.

2. It is sure that the letter will reach thecustomers. But if a letter is drafted badly, it

goes to the waste paper box3. It is possible only in profitable business. 3. It is possible in a ll cases because of less

cost.

4. It is evident that the salesman may fail if thecustomer is interruptive.

4. It is not so. Even if it fails, that costs nothingexcept the postage.

In the modern trend all the business letters are sales-oriented. In a sales letter you attitude is always effective. Theletter must be viewed from the point of view of the reader. The tone and style of the letter must be keyed to the readersinterests and wishes. The aim of the letter must be to create an interest in the mind of the reader and to convince him of the benefits.

Drafting a sales letter will be in the forms of advertising, to create an interest in the mind of the reader. If a letter iseffective, that ends in sales. The beginning and end of the letter will be attractive and are important.

The first paragraph must catch the attention of the prospective buyers.

e.g. Would you like to have an extra income of Rs. 2000 every month, in addition to your regular Pay. You can havea luxurious life, through the easiest jobs. You can have the answer against your question, in cash.

The next paragraph will be produced with supports of facts and figures, guarantee and testimonials of thebenefit.

The next paragraph will be produced with supports of facts and figure, guarantee and testimonials of the benefits.

e.g. we are exporting the new products to Japan every year. The new technique of the products is highlyappreciated. That is why the firms name is in its record performance.

A sales letter may sometimes carry post cards or self-addressed covers which will persuade the reader to act upon.

e.g. Tomorrow will never come. So why cant you act now?

Time is precious. Simply sign the form and mail it to us at once.

You may write a line in the enclosed post card as the day and time convenient to you to meet our salesmanalong with free samples at your office.

The writer also knew that, for the letter to be successful, it would have to:

1. Attract the readers attention;

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2. Stimulate the readers interest;

3. Stress the benefits of the offer to the reader;

4. Convince the reader to act immediately

The purpose of a good sales letter has the following effects:

1. To confer a faith in the product.

2. To get an enquiry letter from the reader;

3. To create an interest in the mind by exposing actual facts, tests, surveys, opinions, etc.

4. To create a goodwill and promote sales;

Apart from the above:

1. It widens the market;

2. It helps the customer to remember the product;

3. It educates the customers;

4. It functions as a salesman;

5. If facilitates a constant touch between the customers and the firm;

6. It secures orders for a Mail Order Business House.

Functions of a Sales letter

A sales letter has the following functions:

1. Attracting attention;

2. Arousing interest;

3. Educating and convincing;

4. Stimulating desires; and

5. Securing action

The last para of the sales letter must successfully turn the reader into a customer

e.g. We would not like you to miss this golden opportunity.The attractive bonus is open only for a couple of weeks, so act now.

Model 19: Special offer to old customers

Dear Sir/Madam,

You will b e interested to hear, that we have decided to clear the present stocks of books at bargain prices. Only the oldcustomers like you can enjoy the advantage, as the letters are being sent to the old customers only. A price list of thebooks that shows the original price and the special discounts allowed to them, is enclosed for your reference. Thestocks of these books are already on sale and are limited for two more weeks. You need only to pay a lesser amountthan the cost. You can avail of this rare opportunity.

If you can spare a few minutes, please fill in the enclosed order form and post it today; the postage expenses will befree if your order is for more than Rs. 100.

You can take full advantage of this special offer. Remember, this offer is specially ment for our old customers only.

Delay will disappoint us.

Yours sincerely,

..

Encl : One bargained price list.

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Sales Promotion Letters

The aim of production is sales. Sales and promotion are two different words. Sales promotion is the combination of these two words. Sales promotion increases the sales. Sales promotion methods aim to capture the market andincrease the sales volume. It is an important instrument in marketing to lubricate the marketing efforts. Now a dayssales promotion is necessary tool to boost sales. It aims in creating demand. It is right to say that sales promotionmoves the product. A manufacturer must make the customers to know the product and he must influence them to buythat product. Unlike sales letters, these letters effect indirect sale.

Model 20: Sales letter to customers

GHOSH BROTHERS LIMITED

M.G. Raod, Madurai

Tamil Nadu

Dated ..

M/s Vijay Kumar & Sons

Ram Nagar,Nagercoil 629 002

Sirs,

We are introducing a new line of watches. These are specially designed for young men and women who are just startingout in life. We enclose a catalogue of the watches. I am sure that you will find them very attractive.

Our representative will call on you shortly to show you some samples and to give you promotional posters, stickers etc.kindly display them in your premises. We request you to place a trial order with us. Our prices and terms are stated inthe attached list.

We are certain that a trial order will give you full satisfaction and we shall be glad to hear from you.

Thanking you.

Yours sincerely

Encl. as above

BSPATIL

The major objectives of sales promotion are:

1. To attract new customers

2. To simplify the job of middleman.

3. To create brand image.

4. To remove customers dissatisfaction, if any

5. To capture the major share of the market

6. To meet the competition of other firms

7. To create favourable attitude towards the product

8. To effect off season sales to boost sales

9. To build confidence about the product10. To create buying impulse.

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Model 21: Sales letter introducing a new product

We are pleased to inform you that after a lot of research, we have started to manufacture SUPER WHITE washingpowder, which we are introducing in the market. The SUPER WHITE washing powder washes all types of clothes. Thedirt is removed without rubbing or scrubbing. At the same time the original colour is retained by washing the clothes withthe SUPER WHITE washing powder. It does not harm the hands while washing as it is free from injurious chemicals. Itsimply requires soaking of clothes for an hour and rinse thoroughly, will show the result.

We are launching an advertising campaign in the mass media. We are sending samples of SUPER WHITE washingpowder in 50 gram packets for free distribution to the customers to enable them to find the truth of our claim about thequality of this powder. Our aim is to serve our customers to the best of our ability and with goods of proven quality.

We look forward for a trial order for SUPER WHITE washing powder which, we are sure, will give your satisfaction.

Thanking you.

Yours sincerely

Model 22: Sales letter by a Retail Merchant

BABY STORES

East Car Street,

Calicut

10 th January, 2002

Mr. Sharma,

48, North Car Street,

Calicut.

Dear Sir,

Wish you a Happy New Year.

You may be glad that you have settled down in Calicut. I am sure that you will find the climate good, people are friendlyand surroundings healthy. People, who settle down here, do not generally wish to move out of this pleasant place.

You may be glad note that M/s Baby Stores, situated in the heart of this city, in 50 years old and has earned a good

name by supplying all types of standard goods provisions, stationery items toys etc. at reasonable prices. Theproducts are deal in are of reputed firms backed by guarantee.

The motto of the store is to serve people like you. You need not waste your valuable time in collecting things from us.You please inform your needs over the phone or through a messenger. You get the needed items on the same day asper order i.e., free door delivery is arranged by our firm.

You can test our dealings. If you happen to visit this area, kindly pay us a visit. You can well avail yourself of the bestservice and we are sure that you will always cherish your dealings with us.

Thanking you,

Yours sincerely

(Manager)

Model 23 : A Sales letter about steel tables

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K.K. STEEL FURNITURE

K.P. Road

Nagercoil,

629002

1 st Aug. 2002

The Principal,

College of Commerce,

Nagercoil 629 002

Sir,

Allow us to steal a few minutes of your valuable time.

We deal in furniture items specially tables. At present you can have a wide range of 20 different OFFICE TABLES tosuit budgets, storage needs, office layout, work areas etc. These tables are elegant, functional and money saving andthey fit well your office layout. Different jobs in an office call for different table requirements. The tables are designed tosuit everyone the Principal, Superintendent, Accountant, Cashier, Typist etc. The drawers of the tables can go whereyou want it if you wish so. The table top, height of the table and drawers etc., are adjustable to suit everyones needs,

irrespective of sizes, colours, shapes etc. A variety of tables are in ready stock and all are manufactured by us. Weassure you that they are of the best quality.

An illustrated catalogue will be sent to you on request. All orders are executed at door delivery basis. Our expert staff will be happy to plan your office layout by saving space and money, free of cost.

Remember us when you plan your OFFICE LAYOUT.

Thanking you

Yours sincerely,

For K.K. Steel Furniture

(Sales Manager)

Goodwill Letters

Effective business letters are the life blood of modern business because they help to expand business or market fromone corner of the world to another in the cheapest manner. Apart from winning customers, business letters promotegoodwill too. Courteous letters will friends, enroll new customers, retain old ones and win similar other favours. The bestway to achieve a customers goodwill is to offer best services. A businessman who overlooks a customers letter of complaint is digging his own grave. Prompt reply fosters pleasant relations.

Every letter of complaint received by a trader is an opportunity to make friends with and a chance to win over acustomer. It is senseless to think that complaints are a nuisance. A trader should welcome reasonable dissatisfactionwith his goods or services. If a businessman desires to keep his customers business, it is very important for him to replyas soon as he receives the complaint. He should satisfy the customer with a suitable reply if mistakes can be rectified

without delay. In other cases, if time is required for investigation, immediate acknowledgement of his letter of complaintis essential.

One should have a constructive approach towards business. Goodwill letters are written, sometimes, when there is noneed for doing so. A friendly approach undoubtedly wins customers. For egs. Imagine you are entering a shop.Immediately the shop keeper or a salesman greets you, Good morning, Sir. He enquires what you want and invitesyou to select your requirements. After making purchases, you pay the bill and the cashier tells you Thank you, Sir.When you approach the packing section, the packer gives the packed items by saying. Thank you Sir, please comeagain. You will be immensely pleased and you will make it a habit to visit the shop again and again. Such pleasingmanners cost the trader nothing but win him friends.

Note: As a rule all business correspondence should aim at creating goodwill. But there are some letters-like letters of

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thanks or appreciation-that are written explicitly for builing goodwill Gratitude, sympathy, encouragement andappreciation all have goodwill at their base. Those of congratulation, welcome, condolence and show of interest also fallin the same category. The thing to be remembered most in the case of all kinds of goodwill letters is the importance of the element of sincerity, which must come out as a genuine feeling.

Following this manner we write goodwill letters. Please see the model 24.

Model 24: Sales cum Goodwill letter J.K. PAPERS

Chennai 600 01210 th April 2002

Mr. Krishnan,General Merchant,Chennai 600 010

Dear Sir,

Our Sales Representative, Mr. Gopal, has informed us that you have not given any orders for the coming season. Thisis perhaps due to the fact that there was some delay on our part in sending the ordered items last month. The delayhappened because of workers strike which was beyond our control. I have already informed you of this and expressedmy regret.

Now it is the time to give orders for the coming season educational institutions are going to reopen after the summer holidays. Paper cost is increasing day-by-day. As a friend I suggest you rush you demand without delay. Delay willresult in paying higher prices. Timely action will help you to earn a good profit out of the season.

The price-list is enclosed alongwith samples. Generally, we do not send sample unless asked for. You will observe thatthe prices quoted are exceptionally low and we suggest you, in your interest, place orders as early as possible. You aremost welcometo visit our shop, whenever you can. If there is anything more, we could to for you, please do not hesitateto inform us.

We await your orders.

Thank you.

Yours sincerely,

Encl : as above

Most business letters have two objectives : to promote a particular transaction and to build goodwill. They can be asbrief and simple as you wish, but they should express what you feel in terms that are warm and sincere.

Model 25 : Approaching new customers

JAY ENGINEERING COMPANY

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Chowringhee Road,

Kolkata 13

10 th June, 2002

M/s Raj Kamal & Sons,

Flora Fountain,

Mumbai 400113

Electric Fans

Dear Sirs,

In 1970 we manufactured only 500 fans per month. In the year 1980 we manufactured more than 10,000 fansevery month, during the 90s we were making over 30,000 fans every month, now 50,000 fans every month.

This is the finest example of determination, combined with latest techniques and know-how. We have still higher plans to make more fans and create new standards in quality and design.

Ours is the biggest single unit fan factory in the world. JAY fans are exported to almost all the countries in the worldwhere fans are used.

If you think of installing fans in your factory, we suggest you to buy JAY fans. Ours in quick service at reasonable price.

Let JAY fans convince you how you can get good air.

Yours truly,

For JAY Engineering Cp.,

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CHAPTER VII

FOLLOW UP LETTERS

Every businessman tries to increase his business through various methods, which are suitable to him. If a man visitsyour shop (you being a businessman) try to give him maximum information about his requirements. If an item is notsatisfactory to your customer, you will immediately switch on to the substitution. The inherent policy is to increase thesales.

Mere advertisement for the sale of goods may not produce the desired result. Some other steps may be necessary to

obtain real benefit. One of such steps is technically known as FOLLOW UP system. This is a system in whichapproaches to prospective customers are made through letters. Follow-up letters are usually sent out in a standardform. Each successive letter is worded in a more intimate language. In order to be successful, the letter should bepleasant reading, courteous, suggestive and full of confidence.

Follow up letters are more or less circular in nature. Follow up letters mean, approaching the party again in continuationof a previous trade letter or circular letter which contains sales promotion methods as the main theme. This ismaintained when the customers are outsiders.

After receiving enquiries, a businessman sends replier. If he does not find any reaction on his replies, he may wait for 10or 15 days, then he sends another letter of a re- approaching nature in order to attract the attention of the customers. If the customer is silent he once again writes follow up letters to him. Until an order is received, he may go on. Follow upletter will be sent on the presumption of getting orders. If the businessman thinks, that a particular customer is notinterested, he may not send unnecessary follow up letters.

In mail order business, follow up letters are important, as there are no middlemen to approach the buyer. An index cardcan be kept in order to make the entries of enquiry and the replier sent. Customers replier are also entered in it. Byseeing an index card, businessmen know to whom follow up letters are to be sent. Index card contains the details of theprospective buyers with date of letters sent and received.

The enquiry letter is first replied in a general way. If it does not draw the attention of the customer, a second letter follows with more information. Again, if he does not respond, a third one is written with a fresh argument. This may bedone after a gap of 10 or 15 days.

Follow up letters are printed or cyclostyled. The addresses are filled in by the typist and signature is either cyclostyled or handwritten. The letter must be very courteous, pleasant in nature and must express full confidence. An order form is tobe attached to every letter.

Hints for such letters

1. Draft the letter in such a way as to suit the needs, desires and the way of thinking of the particular class of customers.

2. Make an appeal by telling him how the product benefits him.

3. Highlight the plus points economy, durability, low price, pride in possession, satisfactoryperformance etc.

4. Convince the reader by giving evidence.

5. It is not a letter of circular type. Use new arguments. Close the letter by telling exactly what to doand how to do it so that action becomes easy.

Model 26 : First Follow up letter JOHNSON RADIO CO. LTD.

28 Dadabhai Road,Mumbai 400 00110 th June, 2002

Mr. Roshanlal Sharms,1273, Civil Line,Mumbai 400 023Dear Sir,

A week back, we had the pleasure of demonstrating the system of Johnson Battery Eliminator suitable to transistor radios. The complete literature of Johnson Battery Eliminator is enclosed. Now by possessing transistor radios you neednot purchase batteries, for the batteries can be replaced by the Johnson Battery Eliminator. The system is very cheap incomparison with the cost of batteries.

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As we have heard nothing from you, we are anxious to know, your interest on the benefits of the Battery Eliminator. If you want to clear any doubts, please do not hesitate to write us.

It may interest you to know that the Battery Eliminator is not only cheap but is also durable. The Johnson BatteryEliminator is supplied with guarantee for one year.

Just a glance at our Jonhson Battery Eliminator will convince you how smart and portable it is.

Yours sincerely,

For Johnson Raido Co. Ltd.

Model 27 : Second Follow Up letter

JOHNSON RADIO CO. LTD.

28, Dadabhai Raod,

Mumbai 400 001

30 th June, 2002

Mr. Roshanlal Sharma,

1273, Civil Line

Mumbai 400 023

Dear Sir,

We take the liberty to approach you once again. The enclosed illustrated price list will give you an idea of JohnsonBattery Eliminator. We are persistent because we are sure of serving you and enabling you to avoid any heavyexpenditure.

We undoubtedly hope that the enclosed booklet will give you a clear understanding. Since we have heard nothing fromyou so far, we write to you again thinking that you may like to know more details. We shall be glad to clear all the doubtsand queries, if you will let us know of the same. The cost of the Battery Eliminator is very low and every BatteryEliminator is supplied with a guarantee card of one year from the date of purchase.

When you posses a Johnson Battery Eliminator you will feel proud of it.

Then there is no reason as to why you should not make use of the advantage of this grand offer.

We shall appreciate an early reply

Yours sincerely

For Johnson Radio Co. Ltd.

Encl. : as above

Model 28 : Third follow up letter (Last follow-up letter)

JOHNSON RAIDO CO. LTD.

28, Dadabhai Road

Mumbai 400 001

20 th July .

Mr. Roshanlal Sharma,

1273, Civil Line,

Mumbai 400 023

Dear Sir

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It is understood that our previous letters relating to the advantages of Johnson Battery Eliminator did not draw your attention. Once again, we bring a few more facts to your notice.

A few copies of letters of notable customers addressed to us are enclosed and these letters, will show you as to howJohnson Battery Eliminator is preferred by the public. Moreover, there is a great demand, all over India, for JohnsonBattery Eliminators.

The Johnson Battery Eliminators are manufactured at a low cost, because of the increased sales of Johnson Battery

Eliminators. The Johnson Battery Eliminator costs Rs. 100 only. There who live in Mumbai can get the Johnson BatteryEliminator from any of our authorized dealers on an advance of Rs. 20.00 as the first installment. If you are not satisfied,please approach the dealer and get back your money in full.

Now, it is your choice to enjoy the Johnson Battery Eliminator. Herewith is a proforma to be filled in by you and handedover to the local dealer alongwith the advance. If you do so, he will be glad to welcome you in offering the grandadvantage.

Yours sincerely,

For Johnson Radio Co. Ltd.

Model 29 : Last Follow up Letter

JOSHI AND SONS(Manufacturers of Pump Sets)

Kalbadevi Road,

Mumbai-400 065

12 May, 2002

Mr. Ramlal,

Civil Line,

Mumbai 400 010

Dear Sirs,

It appears that our previous letters have failed to convince you of the advantages of the working of pump sets. We bringa few more facts to your notice.

The enclosed copies of letters addressed by some of our valued customers show the usefulness and trustworthiness of our pump sets. Among these are the Government of few States which have used them in their model farms. Thetremendous popularity of the sets must surely be due to their merits.

An important result of the increased sale of the pump sets is that it has enable us to reduce its price by 10%.

To suit the convenience of the buyers, we have prepared an another scheme of Hire Purchase, Under this scheme theprice of the pump set is payable in installments, spread over a period of 12 months. Thus you either buy the pump setfor cash or obtain it under Hire Purchase Scheme.

We undertake to install the pump set at your farm at our expense on receipt of the initial payment. In case you decide totake advantage of our Hire Purchase Scheme, please fill in the enclosed form and sent it to us alongwith initial payment.

On receipt of the form, we will immediately proceed to install the pump set at your farm.We appreciate an early reply form you.

Thanking you.

Yours sincerely

Encl : As above

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Chapter VIII

TRADE ENQUIRIES

Most letters, which are written for commercial purposes are trade letters. Every trade letter is written with a certain aim.They include letters of enquiries and replies, letters of order confirming order, letters of dispatch, letters of settlements,etc.

We can see many tyupes of advertisements in newspapers. Sometimes the advertisement fails to give full information of a particular type of goods, to the buyer or customer. In this case, the correspondence thread, Enquiry starts from the

buyer. This will naturally be replied. When the response is satisfactory, he sends an order and the seller will executivethe order. accounts are settled, unless there be some cause for complaint. If there is any complaint, they are adjusted.Finally payments are made and the whole correspondence or transaction comes to an end.

The basic stages of correspondence between a buyer and a seller are:

(a) Letter of inquiry

(b) Letter of response

(c) Letter of order

(d) Letter of execution of order

(e) Letter of complaint, if any

(f) Letter of adjustment

(g) Letter of settlement of accounts

In trade enquiries letters are usually written by a buyer to enquire the price, quality, terms of trade, etc. This type of letters may be based either on the suppliers advertisement or at the instance of the buyer himself. In writing a letter of enquiry the following general points should be remembered.

1. Description of goods

If the buyer is definite about his needs, he should describe in detail. By writing detailed description, the chance of getting undesirable goods can be avoided. If enquiry is made on the basis of catalogue number assigned to eachgoods may be given in lieu of the details. However, a clear description must be found in a letter of enquiry, so as toavoid unnecessary further correspondence.

2. Price, time and place of deliveryThe buyer should know the prices. If not found in the catalogue, he asks for it in his letter of enquiry, as well as thetime taken for delivery of goods, the place of delivery, etc. The period of delivery time is an important element. Thegods may be supplied at F.O.R. or Ex.go down or C.I.F. value. in order to eliminate doubts regarding the quality of goods, sample may be asked for.

3. Terms of payment

If a new purchaser aims at buying goods from a firm with which he has had no previous transactions, he should askwhether gods wil be supplied on cash or credit. If it is on credit, the buyer should give references to enable the seller to enquire the status of the buyer. It is also advisable to state the probable quantity that may be purchased.

4. Other charges

Generally insurance, commission, discount, rebate etc., are found in terms of trade. It is seen that where a largequantity of goods is purchased, certain facilities are given by a seller to the buyer viz. discount or commission.

Any suggestions, if needed, can be forwarded and of course the seller will comply with it. Details regarding packingand forwarding of goods can be had from the seller. The shortest route to the destination from the sellers place mayalso be mentioned.

A few examples of opening sentences and closing sentences are given below:

Opening sentences

(a) As we are in urgent need of your products ..

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(b)

Documents

Business Communication BOOK 1ST MBA @ BEC DOMS