External Business Communication- Letter Writing

Principles of Business Letter Writing Consideration – emphasize reader benefits Courtesy – be polite at all times Directness and conciseness – avoid unnecessary details Clarity and precision – use concrete words Appearance – pay attention to visual appeal

Components of Business Letters 1. Date 2. “To” address 3. Salutation – formal and neutral salutations 4. Attention line – quick action 5. Subject line – purpose of letter 6. Body – main points 7. Close – retain goodwill 8. Signature line 9. Enclosures - optional

Types of Business Letters  Routine letters – day-to-day matters  Bad news letters – convey unpleasant news  Persuasive letters – convince reader to take action

Routine Letters 1.Routine requests – customer request for product information 2. Routine replies – organization’s response to routine request 3. Routine claims – customer request for action to correct problem with product/service 4. Routine adjustments – response to routine claim, regarding action taken 5. Goodwill messages – letters to build good relations

Routine Letters 6. Quotations – requests to suppliers for prices 7. Order letters – orders to selected suppliers for material 8. Tenders – requests to service providers for rates 9. Letters of credit – requests for purchase on credit and letters granting credit 10. Collection letters – reminders to customers for payment

Bad News Letter 1.Rejecting an idea/proposal 2. Refusing a favor 3. Rejecting customer claims 4. Conveying bad news about the organization

Persuasive Letters 1. Selling an idea 2. Asking for a favor 3. Writing a persuasive claim 4. Writing a sales letter

Format for Routine Letters Direct organizational plan 1. State main idea first 2. Give explanation, reasons, details, background information 3. End with friendly closing to retain goodwill Advantages Attracts attention Logical flow More readable

Direct Organizational Plan for Routine Requests Present request for product information in the first sentence or two. Provide reasons for making the request Number questions for emphasis, making it easy to answer them Close by expressing appreciation

Direct Organizational Plan for Routine Replies Grant request for information in the first sentence/paragraph. Address all questions asked using positive language. Explain product features and benefits. Include subtle sales promotion if appropriate. Refer to enclosures with an “enclosure” notation at the bottom Give purchase information and close on friendly note

Format to convey Bad News Indirect organizational plan “Buffer” or lessen impact of bad news. Do not give bad news immediately. Justify your decision. Convince reader that you reached a negative decision after careful analysis. Give bad news in positive/neutral language Do not apologize Close on a positive note – offer compensation

Format for Persuasive Letters Indirect organizational plan AIDA format- Get reader attention first Create interest Induce desire Motivate action

Indirect Organizational Plan for Sales Letters Use attention getting device - dramatic question, statement, unusual fact. Create interest – highlight USP, show how features will benefit readers Induce desire - support product claims, overcome objections Motivate action- encourage action through hard/soft sell, make action easy to take, reinforce reader benefits