UNIT III
Types and Drafting of Business Letters
Q1. Define Business letter with its functions.
A1) The letter is that the price of the conversation by mail. It's the foremost important means of written language. All organizations got to stay in-tuned with customers, suppliers, government departments, and more. Organizations also got to exchange information with various stakeholders. Communication is required to put orders, solicit inquiries, and execute orders. For this sort of communication, the medium employed by the organization is letters. This letter is understood as a letter.
In the words of H.A. Murphy Et Al., "the most often used medium for writing messages to people outside the organization is business letters."
"A letter is that the process of performing a business transaction in writing," says w. J. Weston.
Function or purpose of letter
Businessmen got to communicate with suppliers, debtors, creditors, customers, and other stakeholders to exchange information. Business letters are basically wont to communicate with the above parties.
According to ricks and gow, "the main purpose of a letter is to supply information, instructions, requests, inquiries, money transfers, orders, advice, corrections, and questions."
Purpose of letter
1. Communication of information: the essential purpose of a letter is to convey information about business activities. Information is often sent through business letters to customers, suppliers, debtors, government authorities, financial institutions, banks, insurance companies, and other parties involved within the business.
2. Completion of transaction: this is often one among the precise purposes of the letter. Business letters are often wont to draw conclusions on completed transactions.
3. Demand creation: business letters, especially circular letters wont to create demand for brand spanking new products. A circular letter can reach many of us at an equivalent time.
4. Goodwill creation: during this electronic era, messages are often sent via electronic media within seconds, but well-decorated business letters have their own importance in creating a positive image of the corporate. I have.
5. Business expansion: you'll expand your existing market through goodwill messages and circulars.
6. Establishing relationships: another important purpose of business letter is to assist establish relationships with customers, suppliers, and other stakeholders.
7. Evidence: business letters also are wont to maintain documentary evidence. The characters are often saved for future reference.
8. Contact: business concerns not only send messages, but also receive information from outside. Every company needs differing types of data from the surface to run a business. Business letters allow companies to inquire about what they have.
9. Order: employing a letter may be a quite common purpose. Both trade and manufacturing concerns require ordering finished products or raw materials to run a business.
10. Problem solving: conflicts and misunderstandings can occur during the course of your business. Business letters play a crucial role in resolving such misunderstandings.
Q2. What are the essentials of good letter?
A2) Business letters are a crucial a part of any business or profession. They're written by different people with different motivations. Writing a letter is essentially an art. With regular and regular practice, writers can develop an honest sort of writing a spread of business letters. Below are a number of the important features that letter writers got to follow carefully.
1. Clarity: the letter must be clear. The aim of communication must be clarified. Whether informing, inviting, repeating, emphasizing, reminding, presenting, posing for participation, or clarifying, the aim must be clearly stated.
2. Impact: the letter should produce the specified impact. Every letter features a purpose behind it, and therefore the letter must have a transparent purpose. The aim of writing a letter isn't just to contact the customer. Every letter has an intended effect that has got to be felt.
3. To supply the specified effect: often must be emphasized. Emphasis are often placed in some ways. You'll do this by placing it within the right place, that is, within the important position. It is often done repeatedly.
4. Related information: the letter must provide the relevant details that form a part of the message. Facts, figures, illustrations, and other such information that are accurate, reliable, and relevant to the context of communication should be incorporated into the letter.
5. Conciseness: good oral or written language should incorporate this important feature. Conciseness may be a vital attribute for business letters. Time is vital to everyone involved within the business.
6. The time you'll allocate to read a letter is certainly limited. You've got unlimited time to read a letter, reread it, or pull out the whole message.
7. Simplicity: simplicity may be a hallmark of excellent communication. Simplicity refers to simple understanding. Simple writing is that the opposite of complex and sophisticated writing. The art of straightforward writing is mastered through conscious effort and practice. Letters written during a simple, easy, informal style with easy-to-understand words will attract attention and make an impression.
8. Timeliness: business letters got to be timely so as to be effective. The letter should be written and shipped on time. Some messages are urgent. They need action "immediately" or "urgently" or within a selected time-frame. The letter that conveys such a message should reflect the associated urgency.
9. Language: language may be a vital aspect of business communication. First and foremost, you would like to form sure that the language you employ is acceptable, that is, a language that your readers can rest assured. Additionally to English and Hindi, companies in several parts of the country commonly use different local languages. Public sector organizations like banks follow formulas in three languages.
10. Appeal: A good letter should appeal to the reader's sensibility. It should make a good impression beyond the message it conveys. It should have elegance, which means taste, beauty, and dignity.
11. Style: Style refers to how to write. It constitutes a collective feature of the way things are written, impressed, or presented. Each person has their own unique style. Stylistic style to make an impact requires continuous conscious effort.
12. Positive approach: In the final analysis, a good business letter has a positive approach. It creates a friendly atmosphere. It avoids negative emotions. To write a really good letter, you need to be properly prepared.
Q3. What is Inquiry Letter? Write its objectives.
A3) Letter of inquiry is one among the most important sorts of business letters. When a buyer wishes to urge some information about the quantity, price, availability etc. of products to be bought or about the terms of sale, payment etc he writes a letter of inquiry to the seller.
Inquiry Letter
According to Morris Philip and others, “the letter that seeks information concerning the goods and services from a business concern is termed an inquiry letter.”
Quible and others said, “letter of inquiry may be a sort of business message that asks the recipient for information or assistance.”
In the opinion of r. V. Lesikar et al., “letters that asks questions or information about anything is called inquiry letter.” Business communication
According to Gartside, “an inquiry letter asks information like catalogue, quotation, sample and price of a product form a seller during a concise and clear way.”
So, we will define the letter of inquiry as a letter sent to the vendor from the potential buyer asking information about the price, quantity, availability etc of a product and the terms of sale, terms of payment, service etc.
Objectives of Inquiry Letter in Business Communication:
Every letter has some certain objectives or motives and inquiry letter isn't an exception. it's written on different occasions for various reason. Inquiry letter is written so as to hold out one among the subsequent objectives bellow-
1) To get the price quotation of specific commodities
2) To ask for catalogue
3) To know payment terms
4) To know the past records of job applicant
5) To know the credit worthiness of a firm or an individual
6) To ask for folders
7) To get recommendation from former employer
8) To know the financial strength of a firm or an individual
9) To know the business reputation of a firm
10) To know the transportation facility provided by the firm
11) To obtain information about social status of an individual or a firm
12) To evaluate the performance of an individual or a firm
13) To find out about the quality of a product
14) To know the availability of an item
15) To make request for sample etc.
Q4. Explain the types of Inquiries Letter in Business Communication.
A4) Inquiries could also be of various types supported the target, information sought and therefore the initiatives taken. There are generally four sorts of inquires letter-solicited inquiry, unsolicited inquiry, inquiry for a few Favor and routine inquiry letter. These are discussed below-
1) Solicited Inquiry: An inquiry made in response to the seller’s advertisement and publicity is named a solicited inquiry. Actually, it's a response by the customer to the advertisement or publicity of a seller.
2) Unsolicited Inquiry: An inquiry made at the buyer’s own initiative is named unsolicited inquiry. This kind of inquiry is formed when a buyer wants to understand anything from the vendor.
3) Inquiry for some Favor: An inquiry made not about goods but information like special price or favourable terms is named inquiry for a few Favor.
4) Routine Inquiry: An inquiry made by an old or regular buyer within the usual course of action is named routine inquiry. Most of the business inquires fall during this category.
So, we discover that there are differing types of inquiries, regardless of the type is that the bottom line of success of an inquiry depends upon how it's written.
Business Inquiry Letter Writing Tips
1) The letter must be written politely and humbly since it's a formal letter.
2) Keep the letter brief and concise and sticking to the purpose and posing for what you would like straightforwardly.
3) Be clear about what does one want from the receiver.
4) Tell them of your requirements if you're ordering a custom-made product.
Q5. Define Order Letters. Explain its factors to be considered in Writing Order Letter or, Contents of Order Letter.
A5) The letter that's written by a possible buyer to the vendor requesting him to deliver goods is known as an order letter. By writing inquiry letters, buyers can collect necessary information about the worth, quality of products and terms of sale. If the customer finds the quoted price, quality of products and terms of sales satisfactory, he places an order to provide goods in his address. The vendor delivers the products according to the buyer’s order.
In times, sellers supply printed orders forms to the customers and customers place orders by filling up those printed order blanks. During this case, the printed order sheet or blank is considered because the order letter.
Factors to Be Considered in Writing Order Letter or, Contents of Order Letter
Through order letter, the potential buyers request the suppliers to deliver goods to them. In modern time, printed order blanks or order forms supplied by the vendor are typically used for placing orders. However, in absence of order blanks and buy order forms, order letters are written. Such letters contain three major categories of information:
1. Information about the things being ordered
An order letter must contain full particulars of goods ordered. Such information includes the followings:
2. Information relating to shipping
Shipping information is very important. In absence of shipping information, there can arise misunderstanding between buyer and seller. Shipping information may include the followings:
3. Information relating to payment
Mode of payment of prices for the ordered items must be clearly indicated. the vendor will accept the order letter only when both of them come to a standard ground relation to payment of price. Payment information includes the following:
The above-stated factors are usually included so as letter. However, the customer can include the other instruction or element if he thinks necessary.
Q6. What does Credit and Status Enquiries mean?
A6) Letter of credit is that the common and used letter format in business communication. So, we r are getting to discuss about A Letter of credit sample and definition of letter of credit. A recommendation letter that requests a private or organization for providing any specific amount is known as letter of credit. Such a letter is written to Favor business facilities and financial assistance to moving business agents. Thanks to mutual relation, such a letter is communicated between sender and receiver who are found to be business or personal friends. The bearer of such letter gets the advantages from the receiver of such letter-Letter of credit is of two types:
1. Ordinary letter of credit: Such a letter is addressed to single person or organization.
2. Circular letter of credit: Such a letter is addressed to varied person or organizations.
Q7. Write a letter to the Tours Manager, Ashoka Tours and Travels, Bangalore, seeking information regarding the tour packages offered by the company. You are Mr. Ajay.
A7) Mittal from Chandigarh, Punjab, who is planning to is it all the holy places of v South India with your aged mother and father for a month’s time this September.
1/1, Mittal’s Villa Punjab – 555555 12 March 2012 Tours Manager Sir/Madam I am greatly pleased to be told about your tour agency by a friend of mine who recently availed your service for a trip to Ootty and Kodaikanal. I am planning to take my aged parents on to a visit to all the Hindu temples and Churches, especially the Church of St. Philomina in Mysore and Meenakshi Temple in Madhurai, for a week’s time. Apart from the holy places, we also wish to visit Thekkadi and backwaters in Kerala and Ootty in Tamilnadu. Kindly tell me the details regarding the places you cover in your pilgrim packages. What is your mode of transport? We prefer hygienic buses or cars with working air conditioners. We would be alright with three star or five star stay in just a single room with television and cable connection. We wish to be provided with strictly vegetarian breakfast but welcome fish or chicken for lunch and dinner/supper. Besides, inform us the details of your charges for stay, food and travel, all separately. Looking forward to an earliest reply, Yours truly |
Q8. What all matters should be included in a Letter of Credit?
A8) The following matters must be included in a Letter of Credit:
1. Receiver’s name and address
2. Bearer’s name, address and complete identification
3. Bearer’s attested specimen signature
4. Objective of letter of credit
5. Request for providing financial/help and thus the respective limn.
6. Proper documentation of the cash receipt and forwarding of like an evidence.
7. Reimbursement system of the paid amount.
8. Duration of the letter of credit
9. Security and cautiousness.
10. Assurance for similar future assistance.
Q9. Write note on Recommendation and Credit.
A9) The purpose of a letter of recommendation is to assist a known person obtain a benefit.
(1) it's going to be written to recommend an applicant for a job to his prospective employer. in this sort of letter the writer mentions the applicant’s name, gives a brief account of his background and qualifications and certifies his character and skills . the writer should state facts and nothing but facts. The language should be simple and therefore the sort of writing should be courteous.
(2) A letter of recommendation is also written to recommend a business friend to other business friends doing a similar kind of business. the aim of this sort of advice letter is to introduce a business friend to a different businessman with a view to assisting him in forming new business connections or obtaining credit within the market.
In this type of recommendation letter the author should mention the complete name of the person recommended the aim of recommendation and the person’s financial status and goodwill. The writer will make an invitation to the effect that the addressee may give all possible help to the person recommended. The letter should be an easy one and will contain nothing but the truth.
At an equivalent time, the writer should make it clear that he can take no personal responsibility for the person recommended. just in case of a letter of credit (see below) there- is such personal responsibility. The letter should close with thanks for any services which will be rendered.
In case of a letter of credit the author introduces a person to the addressee and also requests him to pay a particular sum of cash or to deliver some goods to the person introduced. A letter of credit is a vital instrument in foreign trade by which the banker of an importer introduces the importer to an exporter in order that the latter can send the products to the importer safely and therefore the payment is guaranteed. A letter of credit from a banker utilized in foreign trade features a specified form.
An ordinary letter of credit shall contain the name and address and other particulars about the one that is being introduced, the name and address of the addressee to whom it's to be presented for payment, the quantity or limit of the amount of money to be paid, the specimen signature of the one that is introduced (this shall be compared with the signature to be made by him at the time of taking the payment), the period of validity of the credit and other instructions regarding payments, if any.
Q10. Explain Sales Correspondence
A10) Sales Correspondence may be a written communication between two parties with the motive of sales. A sales letter may be a kind of sale correspondence. it's a letter that tries to sell a product. Sales letters are an efficient way to communicate with clients.
It may target a selected group to grab their attention. it's sort of a salesman discussing the aim but in the sort of a letter. A sales letter are often general or particular in nature.
Objectives and Advantages of Sales Letter
Objectives of Sales Letter-
1) A sales letter aims at reaching the reader to get the product.
2) Introduction and marketing of new products and services.
3) To reach potential customers.
4) Expansion of the market.
Advantages of Sales Letter-
Q11.What are the Writing Tips for Writing Sales Letter?
A11) Writing Tips for Writing Sales Letter-
1) Introduce the ideas in a way that compels the reader to require a positive action.
2) Introduce yourself and the product well.
3) Be clear in what you're offering.
4) Choose your words as per the targeted audience.
5) Always use a headline.
6) Make the first sentence of every paragraph count.
7) Use of font styles, font sizes, bullets, and numbering etc.
8) Use relevant statement showing the credibility of the merchandise .
9) Suitable closing sentences.
10) Correct use of salutation.
11) Proper and complete details of the merchandise and availability.
12) Always elicit attention, build interest, desire, and call of action.
13) Have a straightforward and convincing tone.
14) Avoid creating confusion and uncertainty.
15) Avoid being clever and funny.
16) Include your name, signature, and other contact details.
17) Do not use fancy words or slangs.
18) Always revise and edit the letter.
Q12. Write note on Collection Letters.
A12) A collection letter is a written notification to tell a consumer of his due payments. it's an official message to a borrower. a set letter may include reminders, inquiries, warnings or notification of possible legal actions. Although a set letter may be a firm notice to a borrower, it must be written during a polite way. One shouldn't use slang, offensive, and abusive words.
Characteristics of Collection Letter
Types of Collection Letter
A collection letter is broadly classified into three categories. They are
1. General Reminders.
2. Inquiry letters.
3. Official collections letters.
Q13. Draw a specimen of Collection Letters.
A13) Suppose Technicon Engineering Co. Ltd (Specimen Letter 2, Specimen Letter 6—Example 2 and Specimen Letter 7— Example 1 ) fails to make payment on receiving the supply of LIPI Typewriter from Office Equipment Co. Ltd,.
The Heading (except the Ref. No. and the Date), the Inside Address and the Complimentary Close shall be the same as in Specimen Letter 7.
Ref. No. 200/D/T-3
June 2, 1988
Dear Sir,
Re: Our Bill No. 759 of 17.5.88:
We draw your attention to our above-mentioned Bill for supplying one LIPI Typewriter. In your kind order of 4.5.88 you requested us to send the article through Bank of Baroda, Connaught Place Branch, New Delhi. We expected the Bank Draft immediately after the article had reached you. Unfortunately, we have-not yet received the payment. Perhaps our Bill has escaped your attention.
We shall be glad if you kindly dispatch the Bank Draft at your earliest convenience.
Q14. Define Circular Letters.
A14) Circular letter is one of the oldest sorts of letters. this type of letter originated in ancient time when people felt the need of circulating any message to a large number of individuals at a time in the same way.
Generally, the letter that's won’t to circulate any special message to a large member of audiences at the same time is known as circular letter. it's one of the cost-effective means of circulating information or introducing new products to mass people. However, circular letters aren't only used in business, but also in social, political and personal affairs.
Prof. W. J. Weston said, “A circular letter is one which is meant to be read by variety of correspondents. it's of the nature of an advertisement and is typically a business announcement or an effort to advance business.”
From the above discussion we can say that circular letter may be a quite written announcement that's distributed to a large number of people to convey any commercial or non-commercial message at minimum time, costs and efforts. Drafting circular letter is only an art. It should be drafted in such how that can attract readers’ attention and may serve its purpose.
Q15. State the Importance or advantages of circular letter.
A15) Circular letter circulates information relating to a company, its products and services etc. to a large number of individuals at a time. It plays a crucial role within the growth and development of business. Its importance is briefly discussed below:
1. Easy method of conveying information: Circular letter is that the most easy, simple and effective thanks to convey any information to a large number of individuals.
2. Achieving economy: Circular letter are often used for wide publicity of products. As a result, organizations can save cost of sending letters to different parties separately and may gain economy.
3. Saving time: Circular letter transmits information to a large number of individuals at a time. It doesn't require reaching each individual separately. Thus, it saves time.
4. Less effort: Circulating information to every individual separately is a time consuming and laborious job. Circular letter helps to overcome this problem. Through circular letter, we will communicate with large number of individuals at a minimum effort.
5. Creating market: Through circular letter, a company can inform potential customers about its products and services. during this way, new market are often created.
6. Increasing consumer’s confidence: Convincing and attractive circular letter can easily touch the reader’s heart and thus helps to boost consumer’s confidence on the company’s products.
7. Creating public consciousness: In circular letter, information like price, quality, utility, place of availability, etc. are mentioned in detail that creates people more conscious about the product.