Writing Business Letters

Writing Business Letters External Communication

Business Letter Writing

Business Letters are used to communicate

with a variety of external stakeholders Bankers, Government, Consumers, Intermediaries

These are formal in tone and style

There are different types of formats

Principles of Business Letter Writing Courtesy and consideration - to retain goodwill

Directness and conciseness – brief, to the

point

Clarity and Precision

Format and Appearance

Principles of Business Letter Writing Consideration and Courtesy –

Even when responding to a rude letter mind the ‘P’ and ‘Q’ (please, thank you, sorry)

Apologize for mistakes and the inconvenience caused

The tone should not be negative Be tactful when refusing / rejecting a request. Explain the

reason for refusal

Consideration means appealing to the reader’s interest – the ‘you attitude’ which talks about the benefit to the reader

Principles of Business Letter Writing Directness and Conciseness

The letter should be brief and to the point

Avoiding unnecessary details, round about expressions, verbosity

The letter should give maximum amount of information using minimum number of words

Principles of Business Letter Writing Clarity and Precision –

A letter should have a single main idea

Paragraphs should be used to elaborate on sub-ideas

The letter should be clearly worded

Avoid using jargon, technical terms, and slang

Concrete words should be used so that there is no ambiguity

Principles of Business Letter Writing Two alternative formats / plans may be used

1. The Direct Organizational Plan (the deductive pattern)

2. The Indirect Organizational Plan (the inductive pattern)

• Appearance - letter should look appealing Quality of paper Appropriate margins – 1” on each side and 1.5” at the

top and the bottom of the letter

Principles of Business Letter WritingLetters include the following standard components• Date • ‘To’ address • The salutation • ‘Attention Line’ • ‘Subject Line’• The body • The close • Enclosures

Principles of Business Letter WritingThe letter should include the following standard components

1. Date – in the upper right hand corner

2. ‘To’ address – above the salutation in the upper left hand corner

3. The salutation – ‘Messer’ used before the name of the firm.

‘Dear Mr. / Ms. followed by the last name.

If the gender is not known, use a neutral salutation - ‘Dear Customer / Investor’

4. An ‘Attention Line’ may also be used to ensure prompt action (Attention Mr. Patnaik)

5. A ‘Subject Line’ indicating the purpose of the letter. Can be placed between the salutation and the first line of the letter

6. The body of the letter includes an explanation of the main ideas

7. The close should be polite and friendly ‘yours faithfully or sincerely’

8. Enclosures – can be indicated at the end, below the signature line

Types of Business Letters Business are used for a variety of purposes -

Routine correspondence, building a good rapport, conveying pleasant and unpleasant news, and persuading the customers to buy

Business letter messages are categorized into 3 types

1. Routine letters

2. Bad news letters

3. Persuasive letters

Types of Business Letters Business letter messages are of 3 types

1. Routine letters– Routine requests for product information– Routine claim and adjustment letters– Goodwill letters– Letters inviting quotations from suppliers– Credit and collection letters

2. Bad news letters

3. Persuasive letters– Sales letters

Types of Business Letters 1. Routine letters and Replies – pertain to day-to-day

operational matters1. Routine requests and replies – to customers about

products The receiver of the letter is expected to respond to the

request without being persuaded The letter should be concise, to the point, answering

queries The last paragraph should provide product details,

special offers and make it easy to order the product The close should be positive and try to build a long-term

relationship with the customer

Types of Business Letters

1. Routine letters and Replies – 2. Routine claims and adjustment letters – by a customer to

a seller (individual or organization) requesting for some type of action or adjustment –

Service, replacement, repair, full or partial refund, or an apology for poor service

A claim letter – is routine when the Firm complies with request An adjustment letter – is the seller’s response to a claim letter,

informing the buyer about the action taken The letter should sound credible so that the customer’s faith in the

Firm is restored The reason for the problem should be explained in a

straightforward manner, along with the action taken The customer should be reassured that the problem will not recur

Types of Business Letters 1. Routine letters and Replies –

3. Goodwill letters – these letters have no business objective and are used for building good rapport with external stakeholders

– Letters to express appreciation, sympathy, congratulations, gratitude


4. Other Routine Letters – Letters inviting quotations – sent to suppliers asking for

prices of raw material, components The letters should mentions details of the requirement, seek

information regarding price, guarantees, service etc to be provided by the supplier

The idea is to ensure getting the best price


4. Other Routine Letters – Tenders – letters inviting providers of services to quote rates

for work that is spread over a period of time – construction of roads

An Order Letter – placing the order for the required material is sent once the quotation is accepted

Letters for credit, Letters granting credit, Collection letters for dues are other common type of letters

Types of Business Letters 2. Bad News Letters – conveys unpleasant

news to external stakeholders Rejection of customer claims or requests

For adjustments, Job rejection letters, Letters about sudden price hike, Letters about problems faced by the Firm – losses, lay-offs

Such letters should be written tactfully and worded in a positive manner

The bad news should be conveyed indirectly

Types of Business Letters

3. Persuasive Letters – (similar to an Ad) Sales letters - generally used for industrial products,

consumer durables, and high value items The “AIDA” format adopted to take customer through

different mental stages in a particular sequence Attention – to catch his attention Interest – by highlighting unique product features (USP) Desire – by convincing him that the product is better than

the competitor’s Action – motivating him to try the product

The product benefit is reinforced at the end of the letter

Format ofBusiness Letters

Business letters are written using a specific format or plan

Two alternative formats may be used1. The Direct Organizational Plan (deductive

pattern). Used in all routine letters and in good news letters

2. The Indirect Organizational Plan (inductive pattern)

• Used in Bad News and Persuasive letters


Business letter formats1.The Direct Organizational Plan -

Routine letters and in good news letters The pattern followed is –

1. Present the main idea first

2. Provide explanations, details, and background information later

3. End with a friendly closing


Business letter formats

1.The Direct Organizational Plan - the advantages Presenting the main idea first - attracts the

attention of the reader It puts the reader in a good mood, and makes him

inclined to read the rest of the letter The reader gets the main idea easily, scans

through the rest of the letter and save time A logical flow to the letters gives explanations and

details following the main idea


Business letter formats1.The Indirect Organizational Plan is used for: Bad news letters – the letter should be worded

tactfully to minimize disappointment The bad news should be deemphasized by placing it

at the end of the letter (rather than at the beginning) Persuasive letters – sales letters because

customers are not always open to buying


Business letter formats1.The Indirect Organizational Plan – Bad news letters

1. Begin with a ‘buffer’ (a neutral or positive statement that lessens the impacts of the bad news)

2. Present the facts - a background analysis, the reasons for the bad news to make the reader feel that the negative news is inevitable

3. State the bad news or the main idea in positive or neutral language. Avoid apologizing

4. Close in a friendly manner. Offer compensation, and special incentives, to make up for the bad news, and retain the reader’s good will


Business letter formats1.The Indirect Organizational Plan

Persuasive letters - sales letters using AIDA approach

1. The main idea of buying the product must be delayed

2. The reader has to be convinced about the benefits of the product first (the reasons will be presented first and then the main idea)

3. Followed by a friendly closing

Documents

Writing Business Letters