Business communication book 1 st mba @ bec doms

1. Business Communication
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2. CONTENTS
1. Communication in Business
2. A Good Business Letter
3. Commercial Correspondence
4. Format of Business Letters
5. Circular Letters
6. 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 Letters
15. 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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3. 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
common goal. No group activity is possible without communication. it enables the members to co-ordinate, to
exchange and to make 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 members of the group know what they are working for a trying to achieve. Individuals and sections in a group will
try to persuade one another to change one’s attitudes, ideas etc. so that the whole organisation may benefit. Effective
and efficient perfo0rmance of work in any office calls for providing convenient and efficient means of communication.
the specific objective of each message may b e to instruct, to advise, to request and so on, depending on the nature
of relationship between 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 be
informed, a meeting may be called. Good management believes in keeping employees well informed about the
company’s aims, plans, progress and prospects about working and service conditions, training and promotions
opportunities and the benefits available to them. For instance, farmers in India have simple organisation. They need
information 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
a farmer 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
create an atmosphere of social friendliness. However, pointless communication is a waste of time. The purpose of all
communication is to bring about change for the better. Communication is intended to influence action is order to
promote 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
essentially by 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 to communicate.
3. Motivation
Motivation means getting people to give their best. The manager communication with the people be manages and
motivates them. He has to get people to work as a team. The motivation of the employees depends upon the
patience and sympathy shown by the management. Motivation cannot be achieved by a single communication. It can
be achieved only by a constant policy followed in all communications. Creation of healthy worker attitudes and good
relations is a slow and continuous process, which takes place through communication. it is always advisable to
orientate the employees with the company’s 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 vocational
guidance. Counselling can be successful if there is a two way communication.
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4. 5. Persuasion
Including, compelling or prompting a person to do or to act, mostly in a positive way is persuasion. Managements try
to persuade 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
are introduced, employees resist, fearing retrenchment. In order to accept the change, the managements must
persuade them not to fear. Persuasion is more easily done by a person who enjoys respect and confidence of those
whom he wishes 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 a
better understanding of the shortcomings and can make useful suggestions for improvements. In big concerns
suggestions 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 being
constantly 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 constant
effort 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, the top management has to reassure them ad keep up their morale. Special morale boosting communications
have to be well-timed, carefully planned and coordinated. They must fortify workers against debilitating frustration and
inspire them to 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
opinion given 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 bringing about 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 be
conveyed 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 man’s
advancement in the art of communication. the transformation of our planet into a global village owes much to modern
communication systems such 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. It directs controls and evaluates each and every activity of the organisation. No group activity is possible
without communication.
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5. 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 ensured
by feedback for the purpose of eliciting actions which will accomplish organizational goals.” The message to be given
is the information, which is to be transferred from one to another in an effective manner. If the message is understood
by the reader, communication is said to have served the purpose. Our letter is our ambassador. It reaches where we
cannot reach a business letter represents the firm or the business house from it springs. The letter must strengthen
the friendship 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
more obstacles. The problems or the difficulties are called barriers to communication. the chief aim of communication
is to get a definite response. A perfect act of communication takes place when the information as aimed by the giver
is passed on 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
communication does 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. There are 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, while improper selection of media may itself act as a barrier to it.
See the following examples:
COMMUNICATION BARRIERS
• Noise
• Time and Distance
• Interpretation of words
• Inattentiveness
Sender of Message • Premature evaluation Receiver
• Unclarified Assumptions
• Status Block
• Closed Mind
• Organizational Barrier
• Resistance to Change
(i) A Sales Representative generally sends his sales report to his firm. If he writes the report in lengthy
letters or talks loosely on phone, he fails to communicate the right purpose. If the reports are in a
tabular 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 written
explanation alone will not be sufficient. A face to face communication will definitely lead to an
amicable solution.
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
to effective communication. They distract both sender and the receiver of the messages. For example, a
factory that employs noisy machines hinder oral communication, Conversation becomes difficult due to
physical noise and hence the messages get distorted and unclear.
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6. 2. Time and Distance: Smooth flow of communication is quite often affected by the time and distance. There is
no doubt that the development of computer technology has made communication very fast and it has even
overcome 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 are
capable 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
that the receiver of a message does not assign the same meaning to a word that the sender has intended.
This may lead to miscommunication.
4. Inattentiveness: When the receiver does not pay complete attention to the message, communication
becomes ineffective. Many people do not pay proper attention when others speak. Inattention leads to
inadequate absorption 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 to
conclusions. 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
be clear 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 status
than others. People in senior positions develop the feeling that they know everything as to how to run the
business. People of lower status do not feel free to talk to their superiors. It is generally seen that executive
spend their time in “telling” and “commanding”. But they do not listen to or ask opinions of subordinates. This
negative 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
will breakdown as he is not prepared to consider his junior’s ideas. The junior consequently, fails to take
advantage of the junior’s ideas which may be original, creative, brilliant.
9. Organizational Barrier: The classical organizational structure with a scalar chain of command restricts free
and frequent communication. When the organisation, orders and information have to pass through many
levels of authority. Too many levels intervene causing delay in transmission and distortion of the message.
The more complex the organisation, the more difficult it becomes to ensure that correct information is passed
on to the right 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
general tendency 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 to
communication. then conservatism this becomes a barrier to communication.
Correspondence
The term “correspondence” means communication by exchange of written messages. Commercial or business
correspondence, as it is now-a-days called, refers to the written communication relating to business of any interest to
both the parties, between whom messages have been exchanged. The purpose of letter writing is to pass on the
information 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 in
the best order have tremendous power and appeal. They convey our thoughts to other people in language that is
unmistakably clear and readily understood. To write effectively you must choose the right words and use them to
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7. express yourself clearly, concisely and directly. You must not fall into the trap of pompous and unfamiliar words and
roundabout 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 firm
note of the following:
1. A letter containing a badly expressed message or written in an unintelligible language finds a place in the
recipient’s 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 inextricably
bound up with several others. There is competition among different brands of a product and also among different
sellers. 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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8. 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 and
effective 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 the
business. It creates a link between the buyers and sellers, who have never met nor are likely to meet. It can maintain
close 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 one
corner 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
can conclude through letters. Moreover, writhing makes a lot of difference when compared to talking because people
woll have more faith in pen (letters) than in tongue (talks). Further, the possibility to commit errors through letters is far
less when compared to verbal dealings.
A good business letter can:
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 messengerChapter III
and
10. Compromise disputes
COMMERCIAL CORRESPONDENCE
QUALITIES OF A GOOD BUSINESS LETTER
1. Language: Good composition is invaluable in commercial corre-spondence. A well-written letter will be
effective on the reader. A personal meet can be substituted by a good letter written in good language. A letter
must have a good start to create an impression on the reader. In a business letter, proverb, and poetry have
no place. To be simple, idioms, long phrases etc. should be avoided. The main object of business
correspondence is to communicate 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 be
communicated, 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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9. “To convey your feelings as a writer you have to rely solely on the words you
choose and the way in which you use them.”
3. Coherence: (connection): A letter must be so well-planned that the reader is able to understand it even on
the first reading. A lifeless business letter may not have any effect on the reader. If there are many subjects to
be stated, 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 is
dealt 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 be
properly 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 points
that the reader has to know. If the letter gives only part information much time is wasted in clarification and
explanations by additional correspondence. Hence while writing a letter, think properly and communicate to
the reader all those points he needs to know. He should also understand the writer’s 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
and the 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
time in 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 at
your 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 free
from mistakes, errors of punctuation, mis-spelling, grammatical incorrectness etc. The information you write
must be accurate. Inaccuracy destroys confidence. Whatever is stated in a letter should be capable of being
believed by the reader.
“The pen is mightier than the sword”, is applicable in business and commercial
correspondence.
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.
They also win sympathy, respect and mutual understanding. A discourteous letter is probably more
detrimental than personal discourtesy because a written word is permanent. Courtesy can be shown in a
variety of ways in the general tone of the letters, addressing a person by his proper title, making prompt reply,
complying with his request 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 correspondent’s
shoes, sense his feelings and anticipate his reactions”. The reader should know that the writer is aware of
and is doing something for the reader’s needs and problems. A successful letter will naturally concentrate on
the reader’s 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, correlated
information, 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 one’s
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
to their planning and composition.
11. Cheerfulness: In commercial correspondence negative or pessimistic approach should never be there.
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10. Letters aim at earning the goodwill of the reader. It is always possible when a letter is begun with positive and
optimistic approach. The approach through the letters must always be friendly and convincing. As far as
possible, avoid the use of foreign or unfamiliar words, insulting or flattering words, etc.
12. Convincing: The letter written should convince the reader as to the facts mentioned in it. When a new
product is introduced in the market, the letter should say that the firm manufactured the product, after a
couple of years of research: the quality has been approved by the Indian Standard Institute and a copy of the
approval letter is enclosed. Each business letter asks the reader to take action. If it wins the confidence of the
reader he will positively respond to the request.
“A good open business letter serves as master key that opens locked doors. It
opens the way for your goods or your services. It tells the story of the real character
of the firm.” HN Casson.
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 letter’s tone should be
friendly and natural. There was a time when ‘peculiar’ expressions were used in business letters, which made
them stiff and formal. Now the tendency is to write in a simple, natural and almost conversational style. A
business letter is nothing 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 write “because”?
The Characteristics of A Good Business Letter
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.
Writing Good Letters
The qualities of a good letter have been studied in the preceding section. In general, there is no method which is
applicable to all letters. There is also no universal system to be followed in business letters. Every writer has his own
method of writing letters. But the above said qualities are adopted in writing business letters. The writer should try to
improve 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
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11. he is writing about.” Therefore, every planning of the central theme is essential. It is also essential that all necessary
information is included. The letter should present to the reader the writer’s idea at once. The reader should not have
trouble to understand the letter.
“Communication is effective only if the message received is understood in the
sense intended by the writer.”
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 done
with 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
in sending 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
a businessman writes letters with the deliberate intention of persuading the addressee to respond positively, hence
developing the ability to write good business letters is of utmost importance. It is also a pointer to his competence as a
businessman. 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.
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 thought
10. 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
given.
HOW TO WRITE GOOD LETTERS ESSENTIALS OF GOOD BUSINESS LETTERS
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12. 1. Think about what you want to say before 1. A business letter is an ambassador of the
you start to write. writer. So be courteous in writing.
2. Jot down all the points you wish to write: 2. Courtesy can further be shown by prompt
never mind the order. reply.
3. Now rearrange the points in the logical 3. Precision and clarity must be maintained
order. thought-out the letter
4. Have a clear ideal of the character of the 4. The letter must facilitate to achieve your
person you are going to write to. objective. Clear objectives lead to easy
writing.
5. Begin with a short paragraph stating why 5. “You” attitude must be followed, instead of
you are writing; you can refer to a letter “I” and “We”.
received by you and mentioned the subject
of the correspondence.
6. The actual message can be written in the 6. Confused thinking or mixing-up of facts
second paragraph. must be avoided.
7. The closing paragraph usually leads to 7. “Look before you leap and think before you
some action on the part of the reader, it speak”. Similarly, collect all essential facts
asks him to write back, or to place an and materials before you reply letters.
order, or to write to someone, or to look
into some complaint.
8. “You” attitude is the secret of effective 8. The letter must evoke a friendly response
letter. from the reader.
9. The language must be friendly. 9. Good letters create goodwill and cement
lasting associations.
10. Remembers, a short well-thought-out letter 10. The letter should have visual appeal.
has life.
After Writing a letter, ask yourself the following:
1. Does the letter SERVE its purpose?
2. Are the contents RELEVANT to the addressee’s 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
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13. FORMAT OF BUSINESS LETTERS
The structure of business letters is somewhat different from the form of letters to relatives and friends. They are more
formal in style and expression than friendly letters. The reader must know at a glance where the letter comes from,
who wrote 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 address
4. 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
24th 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
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14. II. Hanging Indent Form
SCHOOL OF COMMERCE
Marg Street, Allahabad – 211 033
24th 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
about five spaces away from left-hand margin.
Double spacing is used between two paragraphs, but only single spacing between the lines. This form is
convenient 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
24th 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 begins
from 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 time
and 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)
BSPATIL 14

15. IV. Semi Block Form
THE COMMERCIAL SCHOOL
Gohala Road, Mumbai-400017
24th 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 in
block 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. The
complimentary close, signature and the writer’s designation come at the right – hand corner, below the
body of the letter.
Allow four or five spaces for the writer’s 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
BSPATIL 15

16. 7. To facilitate understanding of contents
8. To avoid confusions
9. To convey a concrete idea
10. To conclude a transaction favourably
Essential Parts of a Business Letter
BSPATIL 16

17. Chapter V
CIRCULAR LETTERS
Circular letters are the cycle of business dealings. A circular is a communication meant to convey information of a
business 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 an
appointment.
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
one person. Circular letters are to be read by a large number of people, whereas general letters are personal and
private in nature. Therefore, circular letters must be specially well written in clear and understandable language, for
example, a company 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
recipient of 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.
BSPATIL 17

18. 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 30th 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 machines
manufactured 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 know
that 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 produce
fully fashioned fabrics and all types of garment. Moreover, these machines are also capable of giving increased
productivity 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.
BSPATIL 18

19. Model 4: Announcing the formation of a limited company:
Phone : 2542
Gram : JAMESCO
JAMES MORTON & COMPANY LTD.
Church Gate,
No. J4/Circular Manchester
30th 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’ from
today viz, 30th Aig. 2002 the family of the late Morton Esq. taking a large interest in the new concern and Mr. Smith,
his son being one of the directors.
Among several friends, who have also taken a large interest therein. In have great pleasure to inform you that we
formed 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 this
particular line. We will be setting up a new factory by the beginning of September 2002. The company is prepared to
execute 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 confidence
in 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
name and style. My nephew Mr. Paul who brings an additional capital of Rs. 20,000 into the firm will be admitted as a
new partner. His smartness and experience in the business line, combined with the experience of my old colleagues, I
feel confident that the firm will succeed in maintaining the fair name and reputation of the firm in future years. I trust,
you will be so good as to continue to extend your patronage to the new firm in the future as you have done in the past.
BSPATIL 19

20. 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
30th 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 are
receiving many enquiries and orders from that place. In order to give more satisfactory service to our valued
customers of 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 the
Branch at Madurai. His personal attention and abilities will please the customers, in every respect. The branch will
start functioning most probably by the 15th of Sept. 2002. Therefore all your enquiries in future may please be sent to
new branch.
We trust that the pleasant business relations, which have existed between us, will be continued with the new firm,
where direct relation is possible.
Yours sincerely
For De John & Co.
Model 7 : Informing change in personal matter
BEST GARMENT CENTRE
BSPATIL 20

21. Pattom Road
Mumbai – 400012
30th 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
resignation with effect from 15th 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 customers
will remember, has previously served in your area. Thus he is not a new representative. We are sure that he will
enable us 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. 2
20th 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 10th September 2002 to the new address:
EDWARD & CO. LTD.
CHURCH ROAD
LONDON 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
BSPATIL 21

22. Ramnagar,
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
this line.
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 be
continued.
Yours faithfully
For S. Chand & Co.
Model 10: Announcing price reduction
Garment Palaced
M.G. Road,
Mumbai – 400109
7th July, 2002
Dear Customer,
You will be pleased to know that during this month, we offer you at extra-ordinary REDUCED PRICES of all
readymade garments. The range of colour, designs and sizes takes you to a land of dreams.
When?: This Reduction Sale begins from 8th July and ends on 31st 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 delay
Thanks
Yours sincerely,
Model 11 : Sale of a business
RAM AND SONS
BSPATIL 22

23. East Car Street,
Madurai – 625002
8th 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 this
day with all its assets and liabilities. By this act of takeover, Mr. R. Gopal becomes the sole proprietor of this firm. He
will receive and disburse all dues and claims outstanding. You will be glad to find him highly efficient and a man of full
knowledge of transactions concerning the business.
We appreciate your patronage and relations existing between you and this firm. We fully hope that you will extend the
same favour to Mr. R. Gopal, who is ready and competent enough to maintain the old traditions of prompt and sincere
service of this firm to all.
Thanking you,
Yours sincerely,
(Old partners)
Model 12: Clearance Sales
TOPSONS LIMITED
Topson Buildings,
Highway,
Kanpur,
8th 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 to
latest model. This will necessitate to remove the goods to a new building. In order to minimize the cost of removal, we
have 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 all
possible purchases, enjoying this substantial reduction in prices. At the same time, it is needless to say that our
stocks are of the best quality.
The clearance sale commences on the 15th of August. We will be glad to see you in our shop as early as possible.
This is a rare opportunity. Your early arrival will facilitate you to enjoy a wide selection of goods.
Your early arrival is appreciated.
BSPATIL 23

24. Thanking you.
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 and
natural delicious taste. The installation of modern appliances enable us to prepare it untouched by hands and this
ensures 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 by
our 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
that we4 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
started using 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
without delay 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 – 682001
BSPATIL 24

25. 10th Aug. 2002
…………………
…………………
…………………
Dear Sir,
We are happy to announce that we have been entrusted with the task of marketing SPEEDO CYCLES throughout
Kerala State.
These bicycles requires very little introduction to the market. It is needless to mention that SPEEDO CYCLES are
world famous. 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 convenient
terms.
Let us look forward to you for an opportunity to prove that we are at your service with our present standards fully
maintained.
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 shall
starts transactions from Monday, the 5th August.
Our long experience in the line and bigger investment place us in a position to offer better goods to the customers.
We continue to trade under the old name and make effort to adhere to our predecessor’s policy of found service on
which the 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
BSPATIL 25

26. Model 16: Reduction Sale
MADANLAL TRADING COMPANY
Madan Road, Lal Bazar,
New Delhi – 110 005
Dated …………..
Sir,
With a view to making room for new stocks for coming season, we have decided to effect a Clearance Sale of the
present stock, commencing from 1st August. We have planned for you a Grand Clearance Sale of our stock.
Prices Marked D
O
W
N by 50% on all items.
Furry UP !! OFFER OPEN TILL 10TH OF AUGUST
YOU GET GOODS WORTH RS. 100 JUST
FOR A PAYMENT OF RS. 50
The reduction sale will remain open till 10th of August. Hence you are requested to pay us a visit during the period.
The goods offered in the sale are new and of good quality. You can take full advantage of this sale, just on your visit
to our shop.
Your immediate attention is highly appreciated.
Thanking you.
Yours sincerely
Model 17 : Death of a Partner
RAMDAS TRADERS
Near Bus Stand,
Virudhunagar
………………….
…………………..
…………………..
…………………..
Death of a Partner
Dear Sirs,
We regret to inform you that owing to the death of our beloved partner, Mr. Raman, we are compelled to
admit Mr. Lal as a new partner. He is fully conversant with the management of firm.
Though the valuable services of Mr. Raman are lost the business will be conducted just as it has been
previously.
BSPATIL 26

27. There is no change in the firm’s name and in the constitution of the firm.
We thank you for your confidence in the past and trust that you will give us an opportunity to prove that the
present standard will be fully maintained.
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 appropriate
blanks. These are used because it saves time from dictation and typing. If there are many form letters, they may be
numbered. The typist has to type only the blank spaces.
Model 18 : Dispatching as per order
MURUGAN TRADING
(Dealers in Type – writers)
Mahal Road,
Madurai – 625001
Dated ……………
………………………
………………………
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)
BSPATIL 27

28. Chapter VI
SALES LETTERS
Publicity has a very important role to play in a competitive society. No business can be done successfully without
publicity in one or the other form. Publicity and advertising are impersonal form of salesmanship. A sales letter is just
a part of publicity and advertisement. In the course of business, occasions arise when a seller wants to approach his
customers in order to introduce a new item to promote sales, to push out one’s stock etc. letters sent out with this aim
are known as sales letters. A sales letter is nothing but an advertisement, aimed at a carefully selected group. A sales
letter 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 firm’s product or earn goodwill for the firm. To a
certain extent the salesman is substituted by the sales letter, because the purpose of the salesman and sales letter, is
the same to push up sales. Therefore the function of a sales letter can be compared with that of the salesman.
However, sales letter 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 make 2. It is sure that the letter will reach the
repeated visits to the buyers for interviews. customers. But if a letter is drafted badly, it
goes to the waste paper box
3. It is possible only in profitable business. 3. It is possible in all cases because of less
cost.
4. It is evident that the salesman may fail if 4. It is not so. Even if it fails, that costs
the customer is interruptive. nothing except the postage.
In the modern trend all the business letters are sales-oriented. In a sales letter “you” attitude is always effective. The
letter must be viewed from the point of view of the reader. The tone and style of the letter must be keyed to the
reader’s interests 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 is
effective, 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
have a 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 the
benefit.
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 highly
appreciated. That is why the firm’s 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 can’t 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 salesman
along with free samples at your office.
The writer also knew that, for the letter to be successful, it would have to:
1. Attract the reader’s attention;
BSPATIL 28

29. 2. Stimulate the reader’s 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
old customers like you can enjoy the advantage, as the letters are being sent to the old customers only. A price list of
the books that shows the original price and the special discounts allowed to them, is enclosed for your reference. The
stocks of these books are already on sale and are limited for two more weeks. You need only to pay a lesser amount
than 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 be
free 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.
BSPATIL 29

30. 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 and
increase the sales volume. It is an important instrument in marketing to lubricate the marketing efforts. Now – a –
days sales promotion is necessary tool to boost sales. It aims in creating demand. It is right to say that sales
promotion moves the product. A manufacturer must make the customers to know the product and he must influence
them to buy that product. Unlike sales letters, these letters effect indirect sale.
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 customer’s 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 product
10. To create buying impulse.
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
starting out 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 in the 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 30

31. 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” washing
powder, which we are introducing in the market. The SUPER WHITE washing powder washes all types of clothes.
The dirt is removed without rubbing or scrubbing. At the same time the original colour is retained by washing the
clothes with the SUPER WHITE washing powder. It does not harm the hands while washing as it is free from injurious
chemicals. It simply 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 washing
powder in 50 gram packets for free distribution to the customers to enable them to find the truth of our claim about the
quality 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
th
10 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
friendly and 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. The
products 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 as
per 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 best
service 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
BSPATIL 31

32. K.K. STEEL FURNITURE
K.P. Road
Nagercoil,
629002
st
1 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 to
suit budgets, storage needs, office layout, work areas etc. These tables are elegant, functional and money saving and
they fit well your office layout. Different jobs in an office call for different table requirements. The tables are designed
to suit everyone – the Principal, Superintendent, Accountant, Cashier, Typist etc. The drawers of the tables can go
where you want it – if you wish so. The table top, height of the table and drawers etc., are adjustable to suit
everyone’s needs, irrespective of sizes, colours, shapes etc. A variety of tables are in ready stock and all are
manufactured by us. We assure 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
from one corner of the world to another in the cheapest manner. Apart from winning customers, business letters
promote goodwill too. Courteous letters will friends, enroll new customers, retain old ones and win similar other
favours. The best way to achieve a customer’s goodwill is to offer best services. A businessman who overlooks a
customer’s 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 a
customer. It is senseless to think that complaints are a nuisance. A trader should welcome reasonable dissatisfaction
with his goods or services. If a businessman desires to keep his customer’s business, it is very important for him to
reply as 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
complaint is essential.
One should have a constructive approach towards business. Goodwill letters are written, sometimes, when there is
no need 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
invites you 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
come again.” You will be immensely pleased and you will make it a habit to visit the shop again and again. Such
pleasing manners cost the trader nothing but win him friends.
BSPATIL 32

33. Note: “As a rule all business correspondence should aim at creating goodwill. But there are some letters-like letters of
thanks or appreciation-that are written explicitly for builing goodwill Gratitude, sympathy, encouragement and
appreciation all have goodwill at their base. Those of congratulation, welcome, condolence and show of interest also
fall in 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 – 600 012
10th 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.
This is perhaps due to the fact that there was some delay on our part in sending the ordered items last month. The
delay happened because of workers strike which was beyond our control. I have already informed you of this and
expressed my 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 will
result 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
that the prices quoted are exceptionally low and we suggest you, in your interest, place orders as early as possible.
You are most welcometo visit our shop, whenever you can. If there is anything more, we could to for you, please do
not hesitate to 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 as
brief 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
BSPATIL 33

34. Chowringhee Road,
Kolkata – 13
th
10 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 fans
every month, during the 90’s 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 world
where 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.,
BSPATIL 34

35. CHAPTER VII
FOLLOW UP LETTERS
Every businessman tries to increase his business through various methods, which are suitable to him. If a man visits
your shop (you being a businessman) try to give him maximum information about his requirements. If an item is not
satisfactory to your customer, you will immediately switch on to the substitution. The inherent policy is to increase the
sales.
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 which
approaches to prospective customers are made through letters. Follow-up letters are usually sent out in a standard
form. Each successive letter is worded in a more intimate language. In order to be successful, the letter should be
pleasant 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
continuation of a previous trade letter or circular letter which contains sales promotion methods as the main theme.
This is maintained 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
10 or 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 up letter will be sent on the presumption of getting orders. If the businessman thinks, that a particular
customer is not interested, 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
card can be kept in order to make the entries of enquiry and the replier sent. Customer’s replier are also entered in it.
By seeing an index card, businessmen know to whom follow up letters are to be sent. Index card contains the details
of the prospective 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 be
done 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 to be 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, satisfactory
performance 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 do
and how to do it so that action becomes easy.
Model 26 : First Follow up letter
JOHNSON RADIO CO. LTD.
28 Dadabhai Road,
Mumbai – 400 001
10th June, 2002
Mr. Roshanlal Sharms,
1273, Civil Line,
Mumbai – 400 023
Dear 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
need not purchase batteries, for the batteries can be replaced by the Johnson Battery Eliminator. The system is very
cheap in comparison with the cost of batteries.
BSPATIL 35