Writing Business Letter_Session 12

Slide 1 : Copyright @ 2011 IILM Institute of Higher Learning. All rights Reserved. Business Communication WRITING BUSINESS LETTERS

TYPES OF WRITTEN COMMUNICATION : TYPES OF WRITTEN COMMUNICATION Written communication has a very large variety: 1 Letters 2 Memos 3 Telegrams 4 Tele-printer messages 5 Short reports (Informal) 6 Long reports (Formal) 7 Proposals 8 Company profiles 9 Product profiles 10 Applicant profiles or resume/ writing 11 Abstracts or Summary writing 12 Reviews and Comments 13 Minutes of meetings etc 14 Research papers

LETTERS : LETTERS Two popular forms of Written Communication are letters and memos   Letter: A letter is a written or printed personal or business message that is usually sent by a mail in an envelope. Many types of letters are in use:   Personal and non-personal letters Direct, indirect and persuasive letters Official, demi-official (DO), formal and internal (memo) letters Subject letters like enquiries, orders, credit information, collection of debts, complaints, sales promotions, sales circulars, appointment of agencies etc Functional letters of correspondence emanate from functional departments like personnel, sales & accounting, purchasing etc

MEMOS : MEMOS Memos are intra-organization correspondence written among different departments in the same location or in different locations, factories and offices. Before word processing and other forms of electronic communication became popular, memos carried bulk of the load of written communication within a firm. One of the popular formats was that the initiator of the memo prepared it, with the help of carbon papers, in a set of three copies. The third copy was kept as a record and the set of two copies – first and second, were sent to the person to whom the message was targeted. Only the left half of the memo was written in by the sender. The receiver used the same set of papers and wrote the responses on the right half and sent it back to the initiator.   Essentially both business letters and memos serve the same purpose excepting that memos, being internal communications, were shorn of formal addressing style of business letters that are normally addressed to external customers, prospects, government and other statutory authorities,

IMPORTANCE OF BUSINESS LETTERS : IMPORTANCE OF BUSINESS LETTERS (1) Role of Written Business Letters   Letter messaging is a significant form of business communication. It also constitutes the major component of written communication and forms the backbone of a successful enterprise. A good letter message:   Can pacify an angry customer (and a bad letter can annoy a customer) May sell a new product (or spoil the sale of an established product) May collect debt without hurting customers’ feelings (or lose both money and customer) May refuse a request yet win respect May grant a request yet incur ill will

Slide 6 : (2) Need for Written Business Letters:(i) Every business has to maintain contacts with suppliers, customers / prospects, government agencies, employees, bankers, investors etc. Most often these happen through business letter.  (ii) Companies have to correspond with other enterprises for varied reasons:   Placing orders for goods & services required from other firms Acknowledging and executing orders for other firms Granting credits to other parties Negotiating credits from other parties Securing credit facilities etc from banks Sending statement of accounts for debtors Receiving statement of accounts from suppliers etc   (iii) Letter messaging may be of less importance for small businesses but it is not dispensable. In fact, a certain amount of letter writing is essential for day to day living in the modern knowledge society.

FUNCTIONS AND OBJECTIVES OF LETTER MESSAGING : FUNCTIONS AND OBJECTIVES OF LETTER MESSAGING (1) Functions of Letter Messaging:According to a reputed expert, L Gartside, followings are the primary and secondary functions of letter writing:   (i) Primary functions   Providing a convenient and inexpensive means of communications without personal contact Seeking or giving information Furnishing evidence of transaction entered in to Providing a record for future reference   (ii) Secondary functions   Creating goodwill for the company Making an impression as an efficient and reliable firm

Slide 8 : (2) Objectives of Letter Messaging   More important ones are:   Serves as a record for future use – copies can be sent to functionaries in different locations for future reference Leaves a more durable impression on the receiver than an oral message Can reach any where in the firms’ hierarchy and even levels that are difficult to access normally Can be sent to different regions, countries and continents where oral or personal contacts are difficult, thus widening firms’ reach and access Forms authoritative, legal document for contracts and collaborations in business Is used for building goodwill, image and reputation.

TRADITIONAL CLASSIFICATIONS OF LETTERS : TRADITIONAL CLASSIFICATIONS OF LETTERS Letter messages have evolved over a long time. A traditional way of classifying these letters in five different ways is as below:  (1) Classifying on the basis of nature of contact  Personal letters  These are written to friends and relatives and follow informal and friendly style. They help:   Exchange information Seek information Seek help, guidance or advice etc  (ii) Impersonal letters   These are usually business letters written in formal style. They are intended to exchange communication among individual functionaries, firms and institutions.

Slide 10 : (2) Classifying on the basis of approach:Three categories are: (i) Direct letters:In these letters, one comes direct to the point without any introductory remarks. Such letters are useful for:  Enquiries Quotations Orders Good news messages Offers of appointment Promotions Instructions for job  (ii) Indirect letters:Theme of such letters is not pleasant as they concern bad news like:  Not being able to sanction the loan Cannot concede the claim preferred Not being able to accept the terms asked for In such letters, there is always an introductory sentence that is intended to put the receiver in a good frame of mind. (iii) Persuasive letters:These are mainly sales letters where one has to think of an opening that catches readers’ attention immediately and prompts him to read on. The message is aimed at persuading readers to buy the product or acquire / experience the service offered.

Slide 11 : Classifying on the basis of types of communication Four types are: (i) Official letters:These are letters written to Government, semi-government and other statutory authorities and are addressed formally.  (ii) Demi-official (DO) letters:These are also official letters but are addressed to a person by name. DO letters are written if matter: Requires personal attention of the addressee Is of confidential nature Is urgent requiring immediate disposal / response (iii) Form letters:These are letters that are used for correspondence on routine and recurring issues. These are usually preprinted as forms with suitable blanks and hence the name. These are used for:  Acknowledgement Reminders Interviews Notices Appointments etc Sometimes, various possible alternative responses are preprinted and the applicable paragraph(s) are ticked. They lack personal touch but save effort and time.

Slide 12 : Internal letters These take the form of memos written among different functions and departments within an organization. They are eminently suitable for internal communication. Classifying on the basis of subject of the letters: These may be one of the several types as below:   Enquiries Orders Credit information Collection of debts and dues Complaints Sales promotion Sales circulars Appointment of agencies etc

Slide 13 : (5) Classifying on the basis of functions / departments of the firm:  A few major functional heads are:  (i) Personnel letters:These are letters emanating from personnel / human resource department:  Inviting applications for notified vacancies Calling for preliminary interviews Calling for written tests Calling for recruitment interviews Sending offers of appointment Issuing circulars for training and development Issuing promotion, increment or bonus letters Issuing warning letters etc (ii) Purchasing letters:These letters cover the correspondence for purchasing and other allied functions in materials management, supply chain functions etc:  Inviting tenders or quotations Placing orders for supplies and contracts for services & materials Sending reminders Sending complaint letters etc

Slide 14 : (iii) Sales letters  These are letters pertaining to the marketing and sales activities of the firm:  Advertising, publicity and marketing communication Marketing research and surveys of customers and competitors Sales circulars Giving and soliciting specific sales information etc   (iv) Accounting and finance letters   These letters may relate to:  Account payable Account receivable Banking Investments etc

MODERN CLASSIFICATION OF BUSINESS LETTERS : MODERN CLASSIFICATION OF BUSINESS LETTERS This classification, ascribed to L Gartside, focuses on business letters. It is a comprehensive and widely accepted classification as it covers all types of business letters used in the modern enterprises. This is illustrated below:  BUSINESS LETTERS INFORMATION SALES PROBLEM GOODWILL LETTERS LETTERS LETTERS LETTERS ROUTINE SPECIAL LETTERS PURPOSE LETTERS Enquiries Circulars Voluntary offers Complaints Greetings   Quotations Personnel Tours Concessions Thanks   Orders Agencies Employment Overdue a/c Congrats.   Payments Travels Reminders Sympathy Condolences     The above classification of letters is not exhaustive; some letters may not fall neatly in to any category.

STYLE IN WRITING BUSINESS LETTERS : STYLE IN WRITING BUSINESS LETTERS There is nothing like the commercial style of English language. Commercial correspondence differs from ordinary correspondence in the nature of content and construction and not in style. A suitable style reflecting the personality of the writer is always more wholesome and refreshing. It makes a good impression on the customers.  It is not difficult to acquire skills in writing effective business letters provided one has:  Good knowledge of the language Constant habit of reading Persistence with writing letters  A business letter is much like a conversation – it is a piece of conversation in writing and delivered by post. Alexander Pope emphasized the point:   ‘True ease in writing comes from art, not chance, As those move easiest who have learn’d to dance.’  Business letters differ from personal letters in the sense that the goal or purpose is paramount. A few useful tips to serve as a checklist are: Will it irritate or annoy? Is it a kind of letter everyone would like to receive? Will it persuade one to do what is asked?

COMPONENTS OF A BUSINESS LETTER : COMPONENTS OF A BUSINESS LETTER A letter should be a sum of the following parts that make it an effective form of communication:  Letterhead Reference number Date Special markings Inside address Attention line Salutation Subject heading Main body Complementary close Signatory of letter Enclosures Copies circulated Initials markings for identification Postscript

Slide 18 : These have been described in some details: Letter head: Since it is the first contact with the recipient, letterhead should make a favourable impression. It is done on printed stationery, usually on a bond paper that has a fine texture. It should not smudge and should withstand piercing and punching for filing work. Modern letter heads occupy about 2” of the top of the page with following information neatly printed / embossed:   Full name of the firm Postal address Pin code Telephone no(s) Fax no(s) Email ID etc   In the modern age of Internet, website details are also given. It must contain the registered address of the firm which is often written at the bottom of the first page.

Slide 19 : (2) Reference Number of the letter A reference number is essential for large firms as it facilitates connecting up the next correspondence. Usually, offices have a comprehensive system of filing and associated file nos. The last numerals are unique serial numbers given centrally by the department or even dispatch office. In such cases, it is useful to have a master file containing all the letters issued by a firm or department serially. It can also be organized on a computerized system.   Date of letter: Every letter must have a date of issue that is written in two ways:   Dd/mm/yyyy or 27 January 2010 Mm/dd/yyyy or January 27, 2010 The practice followed in the country should be adopted – no other form of writing the date should be used viz., 27th January 2008 or January 27th, 2008. First form of writing date is becoming popular universally.

Slide 20 : (4) Special markings:Many letters need to be given special markings:  Confidential Airmail Registered post Speed post Courier etc These markings carry special meaning and are also put on the envelope. (5) Inside address:Next, complete name and address of the recipient is written. This should be the same as required to be written on the envelope. These days, comma is not put at the end of each line nor a full stop at the end of the complete address. However, pin code must be written properly and prominently to help postal persons en route. (6) Attention lineDifferent types of letters follow different ways: Official letter : Attention line is formal; usually, designation of the person is used. DO letter : Mr Pankaj Dhingra Form letter : Designation is followed by name in parentheses e.g., Vice President (Mr Pankaj Dhingra) Internal letter : Memos use a direct approach viz.   To From

Slide 21 : Salutation:It is a formal greeting to the recipient of the letter message. Its choice is directly dependent upon the extent of formality one wishes to observe: Official letters : Dear Sir / Madam DO Letters : Dear Mr Dhingra / Ms Gautam Here recipients are not addressed by their first name. Please remember, ‘Respected Sir’ is wrong English! Subject heading:Appropriate heading denoting the subject of the letter being written is usually given e.g., Application for loan, Bill No -------- for ------- dated ------  Main body:Main body comprises of three parts: (i) First part:It is devoted to a brief introduction and stating the purpose of the letter.

Slide 22 : Second part:It is longer and presents the relevant facts in a logical sequence. It may be extend over several paragraphs. Each paragraph should deal with a separate point and written as clearly as possible. (iii) Third partIt is related to ‘conclusion’ that sums up and rounds up the letter politely, usually soliciting a reply. A few standard forms of concluding phrases are:  Thanking you We thank you in anticipation Looking forward to a positive response We would be glad to furnish any further information  (10) Complimentary close:It is an important part of the letter and should match the form of salutation used in the beginning of the letter. The usually pairing is as under:   Salutation Complimentary close   (i) Sir Yours truly (ii) Dear Sir / Madam Yours faithfully (iii) Dear Mr / Ms Yours sincerely  Please note that memos, being internal communication, have neither the salutation nor the complimentary close.

Slide 23 : (11) Signatory of letter:A letter without signatures and signatory is not well received. A recent trend is that computer generated correspondence is being sent without signatures. In coming years when every mail will be sent electronically, it is understandable. However, in these letters, the name and official designation of the sender should be clearly stated. (A number of offices especially from government and public sector undertakings do not seem to follow this practice religiously). (12) Enclosures:These must be stated clearly after the signature of the sender. Any document sent must be stated clearly for future reference. (13) Copies distributed:Usually, copies of the letter are sent to persons for the following reasons: For information only For complementary action(s) as appropriate Also copies of letters may either contain the enclosures or may be sent without the enclosures. The fact should be clearly stated against each copy distributed. (14) Markings of initials for quick reference: It is a good practice to put the initials of person who has dictated / directed the letter to be sent under his signature. Also, the initials of the person who has transcribed / word-processed is stated. This is done just below the typed name of the signatory. This can be done in the following ways:  JNK: ar;JNK: AR;JNK/AR;JNK-AR  Of the above alternatives, first one is preferred. (15) Post script:People write postscript as a last minute addition to what has been said in the letter. Such addictions must be avoided in commercial correspondence. There is no place for such after-thoughts in the electronic age of word-processing.

CHECKLIST FOR EFFECTIVE LETTER MESSAGING : CHECKLIST FOR EFFECTIVE LETTER MESSAGING Principles of good communication are equally applicable to written communication and to writing skills for letter messaging. However, a good checklist for business letter writing is as below:   Promptness Subject knowledge Appropriateness Accuracy, completeness and clarity Courtesy Tact Persuasion Conciseness Salesmanship The ‘you attitude’ Positive and pleasant approach  These are described below:  (1) Promptness:Letters should be replied the same day. Should one need time to reply, it is better to acknowledge the letter and politely indicate to the sender how soon the reply will be sent.

Slide 25 : (2) Subject knowledge:Ability to reply a business letter has three pre-requisites:  Knowledge of previous correspondence Understanding of the requirements of the sender Knowledge of the firm’s policies applicable   (3) Appropriateness:To acquire a good reputation of choosing words and phrases that are appropriate, we need to vary the tone and tune of the language used in letter messaging. These often change according to the: Need of the occasion Psychology of the readers (4) Accuracy, completeness and clarity:All facts, figures and statements must be stated accurately and should be verified before using in the letter. If dealing with a business enquiry, one must ensure that the information covers all the points for completeness. If it is a persuasive message, it must be clear and unambiguous so that it accomplishes the purpose it is intended for. Ambiguity can arise from:  Omission of a word Faulty punctuation Faulty construction of sentence, mixing arrangement of words  Effective letter writers should avoid these pitfalls.

Slide 26 : (5) Courtesy Writers must seek favours politely and express their gratitude for favours received already. (6) Tact This quality goes hand in hand with courtesy. It is very important for letters:  Dealing with complaints Seeking credits from banks, suppliers etc  The essence of tactfulness lies in retaining the goodwill in spite of turning down the request.   (7) Persuasion:It means winning over people to own point of view without coercing them. They should genuinely feel that what they are doing is to their own advantage. Therefore, hypocrisy and pretensions have no place in these interactions. (8) ConcisenessThe writer should ensure against loading it with irrelevant and unnecessary ‘ifs’ and ‘buts’ – more concise the message, more effective it will be. Also, there is no justification of using telegraphic language and construction of sentences that hampers understanding. Two golden rules are:   No letter is long enough if clarity has to be achieved A short letter is not good enough if the message is not clear.

Slide 27 : (9) Salesmanship Every letter that goes out of the company should be treated as its ambassador. It must carry and convey the message precisely and enhance the reputation of the firm.   The ‘you attitude’: The letter message should always take in to account the readers’ point of view – he is the customer! Use of ‘I’ and ‘we’ should be avoided; instead writers should use ‘you’ in the text as often as possible. (11) Positive and pleasant approach Avoid using ‘no’ and ‘sorry’ – they are unwelcome words. The writers must always emphasize pleasant and positive things. For example:   ‘No’ can be easily rewritten as ‘another time’. ‘Sorry’ can be replaced by ‘I will try’.

STATIONERY OF BUSINESS LETTERS : STATIONERY OF BUSINESS LETTERS (1) Letterhead:Various aspects of interest are: (i) Quality of paper:It should be good quality bond paper. (ii) Size of letterhead:These days standard A-4 size paper is preferred – bigger sizes are awkward to handle and file; small size, look cheap! Colour of paper:Most letters in the world are written on white paper with black print. Black print on white paper emits glare. As a result, there is a growing tendency for using coloured papers. Using coloured paper has two distinct advantages: Colour coding is possible and can become a useful symbol for the firm If colour of the paper corresponds with the colour of firm’s logo and / or trademark, it can help project a good image of the company.  Colours have a strong association with moods and attitudes of the people as summarized below:   Blue : Sincerity and harmony Brown : Strength, practicality and usefulness Gray : Confidence and wisdom Green : Life, coolness and freshness Pink : Femininity, grace and health Purple : Tradition and high rank Red : Excitement and danger Yellow : Cheerfulness and vigour   Following two points should be borne in mind while selecting the colour:   Light colours are easy on the eyes; deep colours should be avoided Colours selected should be those that reproduce as clearly as white on photocopying   (2) Envelope   We must remember that the envelope is seen even before the receivers read the letter. Usually, it is the appearance of the envelope that determines its fate. It should be:   Impressive to look at Of matching colour

Slide 29 : Following two points should be borne in mind while selecting the colour: Light colours are easy on the eyes; deep colours should be avoided Colours selected should be those that reproduce as clearly as white on photocopying (2) Envelope:We must remember that the envelope is seen even before the receivers read the letter. Usually, it is the appearance of the envelope that determines its fate. It should be:  Impressive to look at Of matching colour

STEPS IN PLANNING BUSINESS LETTTERS : STEPS IN PLANNING BUSINESS LETTTERS Bulk of business is carried through exchange of letters as they constitute the most extensive medium of communication. They must be planned meticulously so that they achieve the purpose for which they are written. Following six steps will help acquire enviable skills in letter writing: Defining the main objective of letter messaging Identifying the subsidiary aim Collecting all the relevant data Knowing the person to whom the letter is addressed Determining the tone of the letter Deciding the approach to be followed

Slide 31 : Acknowledgments We wish to acknowledge the people who actively contributed to the writing and delivery of the learning material Author Prof. Manohar L. Gulati Presenter M.Sadiqur Rahman, Fullbright Scholar, Lecturer, Employability Skills & Business Communication A special thanks to the technical support team who were instrumental in the design and implementation of this presentation.

Slide 32 : Contact Details For further information, please contact: IILM Institute for Higher Education 3, Lodhi Institutional Area, Lodhi Road, New Delhi- 110003 Email: learning@iilm.edu Web : www.iilm.edu

THANK YOU : THANK YOU