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Study Guide: Business Education: Basics of Business Communication
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Business Education: Basics of Business Communication

By Fatskills Exam Guides Team — the exam nerds behind 28,500+ quizzes and 2.1M practice questions across 500+ global exams.

⏱️ ~17 min read

Goals of Business Correspondence
There are a number of goals commonly seen on business correspondence, and at times they overlap.

One of the major goals of business correspondence is to give information. One employee may be providing information to another employee, or the company may be sharing business happenings to customers.

Another common goal is to sell the company's goods and services. Many companies create advertisements, blogs, social media posts, and other promotional materials to convince consumers to purchase their offerings.
Business correspondence may also be used to convince an audience of something.
A person may send a letter to a client to convince him that his product is better. An employee may try to convince another employee to try a new policy.
Businessmen often correspond as a response to a question. If a consumer emails a question, customer service will respond with the answer. Businesses will often send out confirmation emails. This may be in response to a purchase or a question. Another form of correspondence may be sent out if an adjustment needs to be made. Correspondence may be through paper, email, the Internet, or other methods.

Communication Modalities
There are many different communication modalities used within a business, including emails, phone calls, and in-person meetings, each with its own uses. Face-to-face communication is very important in business, especially when delivering important or serious information. For instance, if there is a serious conflict with an employee, the supervisor is going to want to sit down and talk to him. If a business is going after a big client, a face-to-face meeting can show a lot of effort. Meetings can impart a lot of information to many people very quickly, engage people, and allow everyone to interact. Email is used very often for a wide variety of business matters because of its ease, speed, and convenience. This is often used in customer service because many customers prefer it. Also, it allows customers and customer service to interact even when the customer is not available during service business hours. The telephone is also commonly used, especially when it is a quick question that needs immediate attention. If there is a lot of back and forth required, a phone call can be quicker than an exchange of emails. Companies generally use many of these forms of communication.

Effective Communication Skills
Effective communication skills are important in business.
First, it is important for people to practice active listening. This means perceiving everything about the communication by using all senses. Not only should a person listen, but they should also watch for body language and try to evaluate how the speaker feels. People want to feel like others are really listening to them and processing what they are saying. Eye contact is important. The person shouldn't interrupt or make it seem like he's making judgments. He should display interest. This can be done by nodding or making small comments. Nonverbal communication is also important. The person should appear engaged, relaxed, and open. He should not be fidgeting. He should use open body language. A person should be aware of what he says and how it comes across, choosing his words carefully. One can easily insult someone, even accidently. He should not argue, but try to work together to communicate effectively. In business, people should think logically and try to keep stress and emotion from influencing decisions. With practice, people can improve their communication skills.

Nonverbal Communication
Nonverbal communication can be just as important as verbal communication in business, thus it is important to know the best strategies to make it effective. First, eye contact is important because it shows that a person is interested, engaged, and actively listening. A person's facial expression can express a lot. When one smiles, she is showing friendliness, encouragement and/or satisfaction with the work. When one frowns or displays an angry face, she is showing displeasure. It is important to show the expression that matches the feelings a person wants to convey when communicating in business, because otherwise the recipient may get the wrong idea. Gestures can show a lot.
Someone clenching his fists may show anger. Hand movements can also help convey information. A person's posture tells a lot. Someone who crosses her arms may show resistance. A businessman who is standing or sitting tall may show off confidence. If someone is fidgeting, he may show discomfort or nervousness, which is not good for business. Businessmen should evaluate their nonverbal communication to make sure it enhances what they want to portray.

Proper Etiquette in Personal and Business Communication
Individuals should always practice proper courtesy.
Businessmen should ordinarily address each other in a formal way and conduct appropriate cultural moves such as shaking hands. It is important to practice cultural sensitivity and know the rules and traditions of the person being greeted. For instance, in some cultures people may bow, while in another they may hug. People should make every effort not to show any bias or stereotypes as this can be very insulting to business contacts. Sometimes a person can come across as insulting or rude if she is ignorant of cultural customs. It is important to study the culture before interaction to make sure this does not happen. Otherwise, business communication should be formal and free of insults.
It should be professional and without errors as well.

Communication Types Commonly Seen in Business
Business letters are sent for a wide variety of reasons and can be very formal. These may contain confidential and important information.
Memoranda, also known as memos, are a less formal method of communication and may be used for announcements, information dissemination, and directions. They may be sent to a lot of people at once and are generally short and to the point. Emails are now commonly used in business communications because of their ease of use and speed. These may be less formal than written out business letters, or they can be just as formal. Publicity materials, such as press releases, are used to publicize an event or garner support. Recruitment communications are used in the process of hiring employees. For instance, a classified ad may be made when the company is hiring. Companies also make a lot of advertisements to draw consumers. These may be flashy advertisements or more subdued forms of communication and may appear in places such as newspapers and magazines.

Terminology Commonly Used in Business Communication
A memorandum is a short, informal form of business communication used to disseminate information. When a company writes
'Enclosures,' it means there is/are one or more enclosures. In email, an attached file is known as an attachment. The return address is the address of the person sending the letter. The inside address, or letter mailing address, is the recipient's address. The salutation is the greeting used, very commonly
'Dear.' The body is the main content of the letter. The complementary close is the closing at the bottom of the letter. There may also be reference initials at the end of the letter, which refer to the person who actually typed it, if different than the writer. Knowing these terms can help an individual write a professional business letter.

Writing Business Letters
A business letter should follow conventional professional practices. It starts with the sender's address (but not the name). Sometimes the address will be on the letterhead; otherwise it should be the first part.
Next should be the date the letter was finished, written as month, day, and year. It should be two inches below the top and flush left (although some formats allow it to go in the center). Underneath that will be the inside address, or the recipient's address, including the specific name and title of the addressee, always left justified. The salutation is under that and should include the personal title unless it is someone usually referred to by the first name. The body is next. Block format is common and is single spaced and flushed left. There is a line between each paragraph. The content should be succinct, to the point, and logical. It might start with an opening and the main idea of the letter, followed with information supporting or explaining the main point. The final paragraph may reiterate the point and ask for action.
Below that is the closing. If there are enclosures, this should be stated under that.

Business Memorandum Format
A business memorandum is a relatively informal form of communication used in businesses to spread information, give announcements, explain company happenings, and provide similar functions. It is often sent out to a lot of people at once and does not generally contain confidential information. At the top it should state 'Memorandum.' Underneath that, flush left will be the word 'TO:' along with the addressee(s). Underneath that and still flush left will be 'FROM:' with the sender's name. If there are any CCs, this will be under that. Below that will be 'DATE:' with the date. 'SUBJECT:' is under that. Finally, the body of the memo will be underneath that, written in block format. A properly formatted memo is professional and succinct.

Presentations

Goals

Presentations can have one or more goals, and it is important for presenters to be aware of the specific objectives so they can tailor the presentation for maximum efficacy. One major goal of presentations is to give information to the audience. It might be to employees, the stockholders, the public, or another group, but the company may be presenting information about itself, its products, current news, or more. Reporting data is another common goal of presentations. For instance, a company may be reporting sales numbers to its stockholders. Sometimes presentations are made to convince an audience of something. For example, a company may give a presentation to a potential client in an effort to broker a deal. Inspiring is another common goal. This is often done in employee meetings. For instance, a company may have a meeting to motivate its employees to work harder to reach certain goals. It is vital for the presentation to match its goals and audience for the best chance of success.

Features of Successful Presentations
Presentations play a big part in business, so it is important to know the features of successful ones. First, the audience should be able to understand the presentation. It needs to be tailored to the audience so they can relate to it. It should be concise. The presenter should not carry on too long about the same thing because he or she could lose the audience. A good opening hook is important. It engages the audience from the start. Some people start with a story or quote. The presentation should also look good visually. Visual aids that can enhance a business presentation include graphs, charts, photographs, and videos. If the presentation contains a call to action, then it should be strong. The audience should be moved to do it. The presenter should be skilled. He should speak loud enough that everyone can hear, keep eye contact, and engage in good body language. He should appear confident. The presentation should flow well and keep the audience's attention. Many business presentations are participative because this can keep people's interest. All of these measures go a long way in making a business presentation successful.

Characteristics of Various Audiences
It is important for presenters to understand the characteristics of the audience for a business presentation because that can greatly influence the best presentation. The size of an audience matters. The presentation will be different for a small room of 10 people compared to a large audience of 500. The cultural composition will matter. People of different cultures have different beliefs and may perceive a presentation differently. The other personal characteristics of the group, such as age, gender, and religion, can also affect how presentations are viewed. The level of knowledge matters. A health presentation on the same subject will be very different if given to a group of doctors as compared to a group of patients.
Presenters should evaluate the audience to formulate the best presentation.

Preparation Steps
First, the presenter must understand his or her goals. What does he want to accomplish with the presentation? Once he knows this, he can select the exact topic, narrowing it down to fit the size and timing of the presentation. He will then need to evaluate the audience. The presentation of the same subject will be very different if given to customers as compared to employees or stockholders. The audience should be able to understand the topic, terminology, and references. The presenter should understand what is important to the audience and what they are thinking. Next, he should come up with the main points he wants to cover and make sure they are well illustrated in the presentation. He should find material to support these points such as graphs, charts, tables, photographs, data, and other visual items. This can give the presentation more substance and validity. Finally, the presenter should practice, ideally in front of someone who can evaluate the performance. By taking the time to carefully perfect the presentation, he will be more likely to reach his goals.

Adjusting Based on Needs and Concerns of Audience
To make the most impact, a presenter should adjust his presentation based on the needs and concerns of the audience. First, he or she needs to understand the audience and how they will likely feel about the presentation. He or she should do as much research as possible into the characteristics of the audience, including whether they will accept the presentation with acceptance or hostility and should plan to address their concerns. For instance, if he or she thinks the audience might be potentially hostile, the presenter should right away include things that will help to alleviate their concerns or ease the news to them. He or she should explain things so that they understand and will hopefully accept the content. It is important for the presenter to show empathy to the audience so they feel like the presenter is on their side. Oftentimes, the presenter allows the audience to ask questions and participate so that he or she can address their concerns directly. If they are worried about something that will not happen, then the presenter should be reassuring, personable, and friendly. The more the presenter comes off as a caring and competent individual, the better the presentation will proceed.

Delivery Strategies
Different strategies can make presentation delivery more effective. One decision is whether to use an extemporaneous (unscripted) speech or a scripted one. If the person is knowledgeable enough and wants to engage the audience without looking at a paper or prompter, he or she might choose the unscripted version. If he thinks he would be too nervous or forgetful without it, he might choose to use a script. Anyone might need it for a very technical speech with a lot of statistics. No matter what, it is important for the presenter to display only positive body language. He should make eye contact with members of the audience and not just look down. He should use positive gestures, facial expressions, and enthusiasm. He should watch his words to make sure nothing can be interpreted as biased or inappropriate. It is important for the presenter to be aware of the audience at all times and respond as necessary.
If he senses that they do not understand something, for instance, he should go into more detail. If they are upset about something, he should try to address their concerns. With the right strategies, the presentation has a greater chance of success.

Visual Aids
Visual aids can enhance a business presentation. Graphs and charts can give a visual representation of the subject. For instance, if a person is talking about how sales numbers have changed, a line graph can make this very clear by showing how sales have changed over time or in response to certain variables. Diagrams can give a visual explanation of a concept. They can make a technical subject easier to understand. For instance, if someone is explaining a new product to investors, a diagram can help explain how it works.
Slideshows are commonly used in business presentations. They can reinforce what the presenter is saying and draw interest. If a company is talking about its charity work, a picture of a smiling child the company helped would be more compelling than just talking about it. Videos can also show people a great deal. For instance, a company can make a video showing its factories or a new design. Computer projections are used as well. Most presentations use one or more visual aids.

Whiteboards, Presentation Software, and Multimedia Equipment
Whiteboards are often used in presentations. These are dry erase boards that the presenter can write on as he is speaking. This is also useful for a participative presentation in which the presenter asks the audience a question and writes down the answers as they are given. He can show step-by-step how something is done. Presentation software is also very commonly used. PowerPoint is one of the most commonly used presentation software programs and allows presenters to create detailed slides of photographs, charts, graphs, and more to enhance the presentation. They can make it easier to understand numbers and statistics. There are also various types of multimedia equipment a presenter might use. They might use a projector or a television. All of these can catch the audience's attention and bring the presentation to life.

Telecommunication Modalities Used in Business
The telephone is one form of telecommunication modalities.
Individuals can get immediate access to someone to ask a question or have a discussion. A disadvantage is that there is no record of it (unless the call is recorded) and someone may not be available for a phone call. Another common form is a fax machine. This allows someone else to see a document. It is almost immediate. Both locations must have faxing ability, and it creates a physical document instead of a digital record, which many businesses prefer.
Videoconferencing is commonly used. Individuals can discuss matters in real time.
They can also share charts, graphs, and other visual aids. It has lowered the need for many business trips. Network email is also commonly used in business.
It is delivered almost immediately and leaves a record. It can take longer to explain something than a simple phone conversation, however. An advantage is that it can be less intrusive and sometimes quicker.

Internet Modalities Used in Business
Email can be used to communicate with other businesses and with customers. Many customers prefer to email a company and it can be less time consuming for the company than a phone call. People like the convenience of being able to do it at any time. Message boards are also used. This is advantageous because customers can look up threads with topics similar to their issues and might get the answer to the problem without needing to contact customer service themselves. Mailing lists allow businesses to send out emails to many people at once. It is a great way for a company to disseminate information. Many companies also have instant messaging, both between its employees and for customers. This can be a great way to give customer service because customers like getting answers right away. One employee can be on several chats at once, which lowers the number of employees needed as compared to phone support. Chat rooms are also convenient because multiple people can see the answers. Many businesses use a combination of these.

Communication Technologies Used in Business
Many businesses have switched to solely wireless technology use, such as tablets and phones that use wireless internet. Cell phones are advantageous because people can take them while they're on the go and be reachable even when not sitting at a desk in the office. Of course, they do not always get service everywhere. Fax machines are used to communicate a document over long distances. They are almost instantaneous, inexpensive, and create a hard copy. Bluetooth is a wireless technology that provides convenience by letting data travel over short distances. It has lowered the need for wires.
Streaming technology has allowed multimedia to be constantly delivered and received from one party to another. For instance, a person can watch a live newscast on a phone. Voice over Internet Protocol (VoIP) allows voice and multimedia to go over the Internet and other Internet Protocol Networks (IP). A. example is Skype. It is advantageous for businesses because it is inexpensive and offers high bandwidth efficiency. Because voice and data communications can use one network, infrastructure costs are lower. In addition, it can be run on inexpensive standard interfaces like personal computers. It can be less reliable, however.

Etiquette in Electronic Communications
It is important to use professionalism in electronic communications, especially if it is a business letter. Just because a message is sent via email does not mean it should be sloppy. Of course, how professional it is will depend on the recipient, but if it is to a professional contact, it should be formed professionally. The sender should make a proper introduction and closing and avoid emoticons, writing in all capitals, and using excessive exclamation marks. It is very important to make sure it is free of typos and grammatical errors. Senders should proofread it just as they would proofread a regular letter. It is also important to not bombard people with unnecessary emails. Senders should be careful about including someone in a chain of unnecessary emails. They should make use of BCC and not share people's addresses with others. They should write an appropriate subject line so people know what it is. Senders should be careful about confidential information because users can easily forward them. By following these rules, the email will be more professional.