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Writing Business Letters External Communication
Business Letter Writing
Business Letters are used to communicate
with a variety of external stakeholders Bankers, Government, Consumers, Intermediaries
These are formal in tone and style
There are different types of formats
Principles of Business Letter Writing Courtesy and consideration - to retain goodwill
Directness and conciseness – brief, to the
point
Clarity and Precision
Format and Appearance
Principles of Business Letter Writing Consideration and Courtesy –
Even when responding to a rude letter mind the ‘P’ and ‘Q’ (please, thank you, sorry)
Apologize for mistakes and the inconvenience caused
The tone should not be negative Be tactful when refusing / rejecting a request. Explain the
reason for refusal
Consideration means appealing to the reader’s interest – the ‘you attitude’ which talks about the benefit to the reader
Principles of Business Letter Writing Directness and Conciseness
The letter should be brief and to the point
Avoiding unnecessary details, round about expressions, verbosity
The letter should give maximum amount of information using minimum number of words
Principles of Business Letter Writing Clarity and Precision –
A letter should have a single main idea
Paragraphs should be used to elaborate on sub-ideas
The letter should be clearly worded
Avoid using jargon, technical terms, and slang
Concrete words should be used so that there is no ambiguity
Principles of Business Letter Writing Two alternative formats / plans may be used
1. The Direct Organizational Plan (the deductive pattern)
2. The Indirect Organizational Plan (the inductive pattern)
• Appearance - letter should look appealing Quality of paper Appropriate margins – 1” on each side and 1.5” at the
top and the bottom of the letter
Principles of Business Letter WritingLetters include the following standard components• Date • ‘To’ address • The salutation • ‘Attention Line’ • ‘Subject Line’• The body • The close • Enclosures
Principles of Business Letter WritingThe letter should include the following standard components
1. Date – in the upper right hand corner
2. ‘To’ address – above the salutation in the upper left hand corner
3. The salutation – ‘Messer’ used before the name of the firm.
‘Dear Mr. / Ms. followed by the last name.
If the gender is not known, use a neutral salutation - ‘Dear Customer / Investor’
4. An ‘Attention Line’ may also be used to ensure prompt action (Attention Mr. Patnaik)
5. A ‘Subject Line’ indicating the purpose of the letter. Can be placed between the salutation and the first line of the letter
6. The body of the letter includes an explanation of the main ideas
7. The close should be polite and friendly ‘yours faithfully or sincerely’
8. Enclosures – can be indicated at the end, below the signature line
Types of Business Letters Business are used for a variety of purposes -
Routine correspondence, building a good rapport, conveying pleasant and unpleasant news, and persuading the customers to buy
Business letter messages are categorized into 3 types
1. Routine letters
2. Bad news letters
3. Persuasive letters
Types of Business Letters Business letter messages are of 3 types
1. Routine letters– Routine requests for product information– Routine claim and adjustment letters– Goodwill letters– Letters inviting quotations from suppliers– Credit and collection letters
2. Bad news letters
3. Persuasive letters– Sales letters
Types of Business Letters 1. Routine letters and Replies – pertain to day-to-day
operational matters1. Routine requests and replies – to customers about
products The receiver of the letter is expected to respond to the
request without being persuaded The letter should be concise, to the point, answering
queries The last paragraph should provide product details,
special offers and make it easy to order the product The close should be positive and try to build a long-term
relationship with the customer
Types of Business Letters
1. Routine letters and Replies – 2. Routine claims and adjustment letters – by a customer to
a seller (individual or organization) requesting for some type of action or adjustment –
Service, replacement, repair, full or partial refund, or an apology for poor service
A claim letter – is routine when the Firm complies with request An adjustment letter – is the seller’s response to a claim letter,
informing the buyer about the action taken The letter should sound credible so that the customer’s faith in the
Firm is restored The reason for the problem should be explained in a
straightforward manner, along with the action taken The customer should be reassured that the problem will not recur
Types of Business Letters 1. Routine letters and Replies –
3. Goodwill letters – these letters have no business objective and are used for building good rapport with external stakeholders
– Letters to express appreciation, sympathy, congratulations, gratitude
Types of Business Letters 1. Routine letters and Replies –
4. Other Routine Letters – Letters inviting quotations – sent to suppliers asking for
prices of raw material, components The letters should mentions details of the requirement, seek
information regarding price, guarantees, service etc to be provided by the supplier
The idea is to ensure getting the best price
Types of Business Letters 1. Routine letters and Replies –
4. Other Routine Letters – Tenders – letters inviting providers of services to quote rates
for work that is spread over a period of time – construction of roads
An Order Letter – placing the order for the required material is sent once the quotation is accepted
Letters for credit, Letters granting credit, Collection letters for dues are other common type of letters
Types of Business Letters 2. Bad News Letters – conveys unpleasant
news to external stakeholders Rejection of customer claims or requests
For adjustments, Job rejection letters, Letters about sudden price hike, Letters about problems faced by the Firm – losses, lay-offs
Such letters should be written tactfully and worded in a positive manner
The bad news should be conveyed indirectly
Types of Business Letters
3. Persuasive Letters – (similar to an Ad) Sales letters - generally used for industrial products,
consumer durables, and high value items The “AIDA” format adopted to take customer through
different mental stages in a particular sequence Attention – to catch his attention Interest – by highlighting unique product features (USP) Desire – by convincing him that the product is better than
the competitor’s Action – motivating him to try the product
The product benefit is reinforced at the end of the letter
Format ofBusiness Letters
Business letters are written using a specific format or plan
Two alternative formats may be used1. The Direct Organizational Plan (deductive
pattern). Used in all routine letters and in good news letters
2. The Indirect Organizational Plan (inductive pattern)
• Used in Bad News and Persuasive letters
Format ofBusiness Letters
Business letter formats1.The Direct Organizational Plan -
Routine letters and in good news letters The pattern followed is –
1. Present the main idea first
2. Provide explanations, details, and background information later
3. End with a friendly closing
Format ofBusiness Letters
Business letter formats
1.The Direct Organizational Plan - the advantages Presenting the main idea first - attracts the
attention of the reader It puts the reader in a good mood, and makes him
inclined to read the rest of the letter The reader gets the main idea easily, scans
through the rest of the letter and save time A logical flow to the letters gives explanations and
details following the main idea
Format ofBusiness Letters
Business letter formats1.The Indirect Organizational Plan is used for: Bad news letters – the letter should be worded
tactfully to minimize disappointment The bad news should be deemphasized by placing it
at the end of the letter (rather than at the beginning) Persuasive letters – sales letters because
customers are not always open to buying
Format ofBusiness Letters
Business letter formats1.The Indirect Organizational Plan – Bad news letters
1. Begin with a ‘buffer’ (a neutral or positive statement that lessens the impacts of the bad news)
2. Present the facts - a background analysis, the reasons for the bad news to make the reader feel that the negative news is inevitable
3. State the bad news or the main idea in positive or neutral language. Avoid apologizing
4. Close in a friendly manner. Offer compensation, and special incentives, to make up for the bad news, and retain the reader’s good will
Format ofBusiness Letters
Business letter formats1.The Indirect Organizational Plan
Persuasive letters - sales letters using AIDA approach
1. The main idea of buying the product must be delayed
2. The reader has to be convinced about the benefits of the product first (the reasons will be presented first and then the main idea)
3. Followed by a friendly closing