What is Communication?

The English word ‘communication’ is derived from the Latin communis, which
means common sense. The word communication means sharing the same
ideas. In other words, the transmission and interaction of facts, ideas, opinions,
feelings or attitudes. Communication is the essence of management. The basic
function of management (planning, planning, staffing, supervision and
management) cannot be done effectively without effective communication.

Communication is a two-way process which involves transferring of information

or messages from one person or group to another. This process goes on and
includes a minimum of one sender and receiver to pass on the messages.
These messages can either be any ideas, imagination, emotions, or thoughts.

Communication is a Latin word which means “to share”. There are different
modes of communication available today. These include emails, chats,
WhatsApp, skype (conference calls), etc. Effective communication makes
people’s work easier and smooth.

Communication involves two or more persons who exchange their views,

ideas and plans by face to face interaction, such as in meetings or through
media. In modern times the Information Technology (IT) has revolutionised the
process of transmitting communication by making a variety of media available
which are much faster and more effective than the older methods, such as
letter writing or taking on classical telephone. Now people prefer to use smart
phones, WhatsApp, Skype, Twitter, Facebook, Instagram etc. for
communicating. These channels are internet based. The electronic mail
(email) has replaced the classical letter-writing as it is not only much faster,
but also provides the possibility of sending other documents as attachment
files. Furthermore, if the same communication and documents are to be sent
to many recipients, the copy (CC) of the mail can be sent to all by a click of
the mouse. The answer to who is the sender means the sender is the person
or the party from which a message originates. Under different scenarios, a
sender may have different status. Depending on the type of communication,
i.e., internal or external the sender may be different
Thus a communication starts from the sender. In the context of a business
enterprise, an internal communication may originate from the director or the
manager or the group leader. It may originate from the lower level of the
hierarchy such as co-worker or subordinate who may seek some information,
clarification or seeking redressal of some grievance. In the context of an
external communication, the sender may be a supplier or a vendor seeking
the order for the supply of raw materials. It may be a customer or a retailer
who intends to send a complaint about the product purchased/ sold. Sender
may be a person from the government department seeking information about
the production/supply/tax returns, etc. Similarly, it may be a person from the
public relations department of the organization seeking information about the
new rules from a government department.

Importance of Communication
1. The Basis of Co-ordination

The manager explains to the employees the organizational goals,

modes of their achievement and also the interpersonal
relationships amongst them. This provides coordination between
various employees and also departments. Thus, communications act as
a basis for coordination in the organization.

2.FluentWorking
A manager coordinates the human and physical elements of an
organization to run it smoothly and efficiently. This coordination is not
possible without proper communication.

3. The Basis of Decision Making

Proper communication provides information to the manager that is

useful for decision making. No decisions could be taken in the absence
of information. Thus, communication is the basis for making the right
decisions.

4. Increases Managerial Efficiency

The manager conveys the targets and issues instructions and allocates
jobs to the subordinates. All of these aspects involve communication.
Thus, communication is essential for the quick and effective
performance of the managers and the entire organization.

5. Increases Cooperation and Organizational Peace

The two-way communication process promotes co-operation and

mutual understanding amongst the workers and also between them and
the management. This leads to less friction and thus leads to industrial
peace in the factory and efficient operations.

6. Boosts Morale of the Employees

Good communication helps the workers to adjust to the physical and

social aspects of work. It also improves good human relations in the
industry. An efficient system of communication enables the
management to motivate, influence and satisfy the subordinates which
in turn boosts their morale and keeps them motivated.
Scope of communication
Communication is essential in every part of our human life. The scope of
communication is wide and pervasive. Human beings are somehow engaged
in communication from cradle to grave. No one can pass even a day without
communication. The scope of communication are given as follows:

1. Communication in personal life:

Communication is closely related to every part of human life. We depend on

communication for doing our various activities from dawn to dusk. Nobody can
pass his/her daily life without the application of communication. It is an
important part and parcel of our personal life. Everybody needs to
communicate with different people and organizations daily.

2. Communication in social life:

Humans are social beings and everybody in the society are related to each
other. Business communication has played the vital role in this social freedom
of human beings. The presence of communication helps the people to share
their sorrows, happiness etc. We are living in an integrated society because
we are on the human civilization. In social life, people need to develop social
bondage. Communication helps us in creating and strengthening this social
bondage.

3. Communication in the state affairs:

The life of state cannot run without the flow of communication. Business
communication plays a vital role for different ministries, departments, divisions
and offices of the state in performing the activities. The government maintains
the functions of the state by the different modes of communication. Without
communication, the state neither can administer its various wings nor can
maintain relationships with the other part of the world. The whole world has
turned into a global village due to revolutionary change in communication.

4. Communication in business:

In this modern age, we cannot think of business without communication.

Communication is the lifeblood of business. It provides necessary information
in formulating business plans and policies. Communication is directly related
to the production of goods and services, purchasing and selling, warehousing,
distribution and other business activities.

5. Communication in management:
Management is the means of achieving organizational goals. The effective
communication with the various internal and external parties leads to
efficiency and effectiveness of management. The level of management like
planning, organizing, recruiting, leading, motivation, coordination, and control
depend on sound communication method. Every function of management
depends on communication.

6. Communication in industrial relations:

Industrial relation refers to the management of labor relationship in the

industry or in an organization. The good industrial relation means the
relationship of owner and employee. It is necessary to bring success in
business. Employees are the mainspring of an organization and their
cooperation is must to operate business activities. Free flow of information
lessens doubt, confusion and controversies between workers and
management. As a result, the harmonious relationship develops in the
organization.

7. Communication in international affairs:

The communication is not merely confined within the national boundary, in this
age of globalization. All the countries are exchanging their cultural, economic,
social, political, educational , technological affairs with each other. Various
regional and international organizations such as the United Nations, World
Bank, NAFTA, SAFTA, ASEAN, SAARC, EU etc have been formed which
facilitate cooperation and communication among countries.

8. Communication in religion:

Communication is also present in spreading and circulating various religious

doctrines. Prophets and saints have preached the verses of almighty to their
followers. Even now, many religious thinkers are performing the duty of
preaching and circulating religious verses. (The Business Communication)
PROCESS OF COMMUNICATION

You have learnt the concept and importance of communication. Let us now
learn the process of communication. The process of communication can be
depicted as follows:

If we try to answer question of each box, different players/entities emerge

in the whole cycle communication. Who communicates? It is the sender.
Says what? It is the message. In which channel? It is the medium. To
whom the message is sent? It is the receiver. With what effect? It is the
reaction or reply of the receiver.

Now let us learn each step of the process of communication in more detail.

Sender: Sender is the person or the party from which a message

originates under different scenarios a sender may have different status.
Depending on the type of communication, i.e., internal or external the
sender may be different as shown in Figure 1.1 in Section 1.2.

Thus a communication starts from the sender. In the context of a business

enterprise, an internal communication may originate from the director or
the manager or the group leader. It may originate from the lower level of
the hierarchy such as co-worker or subordinate who may seek some
information, clarification or seeking redressal of some grievance.

In the context of an external communication, the sender may be a supplier

or a vendor seeking the order for the supply of raw materials. It may be a
customer or a retailer who intends to send a complaint about the product
purchased/ sold. Sender may be a person from the government
department seeking information about the production/supply/tax returns,
etc. Similarly, it may be a person from the public relations department of
the organisation seeking information about the new rules from a
government department.

Depending on the direction of the communication, sender and receiver

(described later) may exchange their status.

Encoding: This step is not shown in the above sequence of events in a

communication. It intervenes between message and channel. In fact,
while sending the message in the digital form, it has to be converted into
another language compatible with the electronic media. This change in the
format of the message is called encoding.

Encoding means to convert information into codes. Code is the system of

symbol, sign or letter used to represent the secret meaning. According to
John Fiske, “coding consists of both signs and rules that determine how
and in what context these signs are used and how they can be combined
to form more complex messages”. The code and system are interrelated,
i.e. type of encoding depends on the media/channel being used for the
transmission of the message.

Message: A message is the information, idea, thought or opinion the

sender wants to send. Depending on the status of the sender within or
without the business establishment, the nature of the message changes.
The message from the director or manager or the group leader may be a
type of order, suggestion, appreciation or warning. However, if the
message is sent by a person of lower cadre, it may be a type of complaint
or a request for the redressal of the grievance. A message from the
vendor or supplier will be of the nature of query or reminder for the
clearance of the pending bills. A message from the retailer will be a
request for the supply of the goods or request for the sanction of higher
margins in the sales. A customer may send a message complaining some
defect in the products of the company. It is obvious that all these
messages are business related.

Channel: A communication channel is the medium through which

communication is sent to its intended receiver. In a business enterprise,
utmost care is taken to set up appropriate communication channels so that
information flows quickly and correctly within and without the organization.
Using an inappropriate channel for interaction can lead to negative
consequences including financial losses. Richer communication channels
are used for complex messages to ensure clarity.

There are various types of communication channels. Let us learn them in

detail.

1. Face to face Communication Channel: Over the years, this

communication channel has become vey popular in big business
organisations, because through this channel, manager(s) can
communicate with the staff without calling them to one place, thus
avoiding unnecessary disturbance and saving time. Video-
conferencing have become very common these days, because facial
expressions and tone of the speakers voice create the desired effects
on the recipients. There are no chances of ambiguity, and if
necessary, the speakers and the recipients can ask questions to each
other and speak classifications. Several apps, such as Skype,
Whatsapp are easily available for this purpose.

2. Mobile communication channel: Mobile communication channel

using smartphone is preferred when a private or confidential message
is to be communicated to an individual or a small group of persons.
Unlike face-to-face channel mobile communication channel is less
expensive and it saves on time.

3. Electronic communication channel: It includes e-mail, Internet,

intranet and social media platforms, This channel can be used for
one-to-one or one-to-group or mass communication. It is less
expensive or even does not involve costs, as many companies such
as Facebook, Twitter, Instagram, etc. have made these media
platforms available free of cost. However, while using these channels
sender has to be careful for drafting/ posting messages, because
inappropriate words can cause confusion or negative publicity.

4. Broadcast media communication: This channel include TV and

radio. These types of media channels are usually used by the
business organisations for advertising or promoting their products.
The CEO of a global company may use this channel for addressing
across the global sites. If a message is intended for a mass audience,
a broadcast channel is usually used.

5. Written method of communication: Business organizations use this

channel for announcing their policies, or for sending memos, letters,
manuals, notices etc. Sometimes, written communications are sent
 for advertising the products. Recipients may respond through
electronic channel or use written method of communication

Receiver: Receiver is the intended target of the business communication

sent by the sender.
After the message emerges from the channel, it is received at the
receiver’s end. In fact, after the emergence of the communication from the
media, there are three stages before the receiver can respond:

1. Reception of the Message: Message reception is a key element of the

business communication process, because, it can induce desired effect
on the receiver, if it received properly. For example, if a business
enterprise advertises its new product, it will attract the desired
customers only if it is received by the customers as well as received by
the audience in the right perspective. The research has shown that
receptivity is a function of message, audience (i.e. receiver), source,
situational and channel characteristics. The combined effect of all
these factors determines how receptive a recipient is to a particular to
communication.

2. Decoding of the Message: Decoding is the opposite of encoding, i.e.

the encoded message is reconverted with a readable/understandable
message. Communication is more effective if decoding matches
clearly with encoding. For example, a business enterprise gives a
visual advertisement of its product on TV. There are some actions in
the advertisement intended to give some specific impressions on the
viewer (Receiver). The advertisement will be successful only if the
viewer is able to understand (decode) the message intended to give
through these actions. Sometimes, the recipient may receive in
different way from what the encoder was trying to communicate. This
is called distortion and it occurs when there is lack of equivalence
between the two sides.

3. Understanding of the Message: After the message has been

received and decoded, it should be understandable by the receiver. As
discussed above, the message should be framed in such a manner that
it serves its purpose, i.e. it generates the impression on the receiver
that it was intended for.

As mentioned, above status of the receiver depends on the status of

the sender and nature of the message. Thus, receiver may be a
manager or a group leader or a subordinate employee in the
organization. Outside the organisation, the receiver may be a
 supplier or a vendor or a retailer or a person in the government
department.

Feedback: After the receiver has received the message, he/she sends the
response. The analysis of the response in terms of the information sought
by the sender is called feedback. For example, the management/ sender
sends a message to the marketing in charge (Receiver) seeking about the
performance of their new product in the market. The marketing officer after
collecting sales data of their product and also of the other competitor’s
products, prepares a report and makes some suggestions (e.g. decreasing
the price or giving some offer, such as buy one get two, etc.) and sends to
the management (response).

Thus, the response or reaction of the receiver sent to the sender is the
feedback of the whole process. It is the ultimate result of a sequence of
events initiated by a message originated from the sender.
As mentioned earlier, depending on the type of the message, sender and
receiver can exchange their positions. Thus, feedback can also be in both
directions. In the above example, the response sent by the marketing
officer to the manager is the feedback. If the manager again sends some
suggestions or a new strategy to the marketing officer, it will also be called
feedback.

Feedback is extremely important for making business communication

effective. The progress of the business depends on useful feedbacks.

All the steps involved in a business communication as described above are

depicted diagrammatically in Figure 1.2.

Figure 1.2: The Whole Process of Sending and Receiving a Message

Types of Communication
1. Formal Communication
Formal communications are the one that flows through the official
channels designed in the organizational chart. It may take place
between a superior and a subordinate, a subordinate and a superior or
among the same cadre employees or managers. These communications
can be oral or in writing and are generally recorded and filed in the
office.

Formal communication may be further classified as Vertical

communication and Horizontal communication.

Vertical Communication

Vertical Communications as the name suggests flows vertically

upwards or downwards through formal channels. Upward
communication refers to the flow of communication from a
subordinate to a superior whereas downward communication flows
from a superior to a subordinate.

Application for grant of leave, submission of a progress report, request

for loans etc. are some of the examples of upward communication.
Sending notice to employees to attend a meeting, delegating work to
the subordinates, informing them about the company policies, etc. are
some examples of downward communication.

Horizontal Communication

Horizontal or lateral communication takes place between one division

and another. For example, a production manager may contact the
finance manager to discuss the delivery of raw material or its purchase.
Types of communication networks in formal communication:

 Single chain: In this type of network communications flows

from every superior to his subordinate through a single chain.
 Wheel: In this network, all subordinates under one superior
communicate through him only. They are not allowed to talk
among themselves.
 Circular: In this type of network, the communication moves
in a circle. Each person is able to communicate with his
adjoining two persons only.
 Free flow: In this network, each person can communicate
with any other person freely. There is no restriction.
 Inverted V: In this type of network, a subordinate is allowed
to communicate with his immediate superior as well as his
superior’s superior also. However, in the latter case, only
ordained communication takes place.
2. Informal Communication
Any communication that takes place without following the formal
channels of communication is said to be informal communication.
Informal communication is often referred to as the ‘grapevine’ as it
spreads throughout the organization and in all directions without any
regard to the levels of authority.

Informal communication spreads rapidly, often gets distorted and it is

very difficult to detect the source of such communication. It also leads
to rumours which are not true. People’s behaviour is often affected by
rumours and informal discussions which sometimes may hamper the
work environment.

However, sometimes these channels may be helpful as they carry

information rapidly and, therefore, may be useful to the manager at
times. Informal channels are also used by the managers to transmit
information in order to know the reactions of his/her subordinates.
 Learn more about 7 C’s of Communication here in detail.

Types of Grapevine network:

 Single strand: In this network, each person communicates

with the other in a sequence.
 Gossip network: In this type of network, each person
communicates with all other persons on a non-selective basis.
 Probability network: In this network, the individual
communicates randomly with other individuals.
 Cluster Network: In this network, the individual
communicates with only those people whom he trusts. Out
of these four types of networks, the Cluster network is the
most popular in organizations.
3. Unofficial Communication
There is also an unofficial way of communication. Unofficial
communication refers to employee communication outside of the
workplace on matters unrelated to work. Friendly meetings, dinner
outings, and social gatherings among employees are examples of
unofficial communication channels. The management must be aware
of the existence of such a channel and the information flowing through
it.

Verbal Communication
Vocal communication is accompanied by auditory signals produced by
a vibrating organ, such as the larynx in mammals’ throats. The vocal
communication is the process through which speakers’ express
emotions by changing the nonverbal components of their speech, and
listeners use nonverbal aspects of speech to infer the speaker’s
emotional experience. This comprises aspects of the voice such as
intonation, stress, volume, speed, and accent interference. We use
vocal communication to frame our message more effectively. This
form of communication, as well as voice features such as pauses and
focus stress, are used to build a structure that allows the listener to
follow your message.

 Intonation – Intonation defines how the pitch of your voice

increases and falls during a speech. A shift or variation in pitch
can have an impact on the meaning of what we say.
 Stress – Stressing is the process of emphasizing a word or
statement in order to bring attention to it. Stress syllables
and words are said louder, for a longer period of time, and
with a higher pitch. When the speaker is monotone, these
crucial cues are missing, and the message becomes puzzling.
 Pauses – The pause allows the speaker to gather his or her
thoughts before making the final argument. This allows the
audience to stay up with you while also giving them time to
process what you just stated.
 Focus Stress – The listener’s attention is drawn to a certain
word or phrase when there is focus tension. The employment
of focus stress is used to clarify, emphasize, or demonstrate
the difference.
 Pace – Pace is the rate at which you speak. The pace might be
rapid, slow, or moderate, and it can fluctuate throughout. It
is claimed to vary the tempo, quickening up at times and then
slowing down depending on the scenario and the significance
of the context, in order to keep the audience’s attention.
Nonverbal Communication
Non-Vocal Communication is the technique of transmitting meaning
without the use of written or spoken words. Non-verbal
communication refers to any communication between two or more
people that involves the use of facial expressions, hand motions, body
language, postures, and gestures. These non-vocal cues can provide
insights, supplementary information, and significance in addition to
spoken communication.

Non-vocal elements such as unspoken symbols, signs, and signals to

express meaning are examples of verbal communication. Non-vocal
elements such as body language, gestures, facial emotions, and eye
contact are examples of nonverbal communication.

 Signals
Signals are movements that are used to express to others one’s wants,
desires, and feelings. Signaling is a type of expressive communication.
The primary goal of signals is to change a single environmental aspect
in order to attract attention and convey meaning.

 Signs
Signs do not belong to any specific language, although they are found
in practically every region of the world. The primary distinction
between a sign and a signal is that a sign (such as traffic lights or a
police officer’s badge) has inherent meanings, but a signal (such as a
scream for aid) is only a means through which extrinsic meanings can
be formulated.

 Symbols
The symbol has been defined as any device that can be used to create
an abstraction. Symbols are visual representations of an event, activity,
object, person, or location that can be used to convey information
about that event, action, thing, person, or location. Symbols can be
used to communicate in both receptive and expressive modes. The
more closely a symbol resembles what it represents, the more tangible
it is.

 Icons
An icon is a visual representation of an application, a capability, or
another concept or distinct thing that has meaning for the user. Icons
are typically thought to be dense collections of linked and unconnected
symbols.

 Gestures
A gesture is a movement of the hand, arms, or other bodily part meant
to express or accentuate something, most often while speaking.
Gestures can also develop a communication lexicon that is more or less
unique to each culture.

 Proxemics
Proxemics is the study of how people from diverse cultures use time
and space, as well as body positions and other elements, to
communicate. The proxemics is the study of what people express by
standing closer or farther apart. Standing very close to someone to
whom we are about to disclose something private is one example.
Another example is backing away from someone when we feel our
personal space is being infringed upon.

Basic Communication Tools

A wide variety of communication tools are used for external and internal
communication. These tools include mail, email, telephones, cell phones,
smartphones, computers, video and web conferencing tools, social
networking, as well as online collaboration and productivity platforms. We
begin with some basic communication tools and then discuss computers.

Mail

Even with all the modern methods of communication, regular postal mail is still
a powerful tool for a business. It adds a personal touch, and is often used for
delivering secure documents and contracts and for delivering purchased items
to customers. A convenient way to handle mail from your own home or office
is through a usps.com or Stamps.com account (in the U.S.), which allows you
to print postage from your own computer. If you are sending mail
internationally, there are a number of carriers available. Be sure to learn which
carriers are most reliable in each region where you conduct business. You can
compare costs to get the best combination of price, delivery date, and tracking
options.

Email

Although you may already have a personal email that you use, having a
business email will be helpful in communicating with customers, vendors, and
internal teammates. Checking email on a daily basis is essential. There are
many email features available depending on the type of account you have. For
example, for some accounts you can track email to ensure the recipient reads
it. You can also postpone sending outgoing email, filter incoming email, and
set-up automatic responses with different types of accounts. Platforms for
hosting email include Gmail, Outlook, and Yahoo. There are also others. For
additional cost, these platforms will set up your own business email address.
For example, you could host jsmith@yourbusiness.com on one of the email
platforms by paying an extra fee.

Telephones

The cornerstone of your business communication, both external and internal,

may be your telephone. There are many types of telephones, and only you
can decide which type is right for you. Even the standard telephone (landline)
that is installed in your office has many options. While you may have a
telephone already, you should start with at least one line that is unique to your
business. This line should have the capability to take messages in case it is
not answered personally. Here are some telephone tips:

 It is important to treat the telephone as a business tool. Answer your

phone in a timely manner (within three rings if you can). Always identify
yourself when answering. Record a voicemail message that identifies
the number, provides brief information about your business, and
indicates when you will return the call. Then continually check your
voicemail to return calls promptly.
 Have a separate line for your business phone and your personal phone.
Don't have family members pick up or use the business phone. Get any
required extra telephone lines installed before you start.
 When leaving phone messages, clearly state your company’s name and
phone number at the beginning and the end of the message.
 Be polite in cell phone use! Good business courtesy includes avoiding
being interrupted by telephone calls, texts, or email when in a meeting
or during a business lunch..

Landline

The landline is the telephone system that uses a physical wire for
transmission. You may have a landline in your home, your office, or at a public
phone location. If the internet is unreliable, you will still be able to use your
landline because it relies on a different technology for communication. There
are many services available for landline telephones. If you have an existing
landline and would like to add additional services such as voicemail, multiple
lines, and conference calling, be sure to research the options offered by your
service provider and its competitors. You may not have to switch phone
companies to get the features you want.

Cell Phones/Mobile Phones

The cell phone, also called a mobile phone, is used for mobile
communications. There are numerous carriers/providers and plans. Many
carriers have plans tailored for small businesses including options that bundle
popular features and usage patterns making them very cost effective. Be sure
to ask questions about your specific needs before selecting a carrier and a
plan. Understand the duration and terms of your agreement. Many can be two
years or more. Consider what type of communication you will use most for
your business - conversations over the phone, texting, or data. Investigate
plans that have unlimited access in your key area to compare pricing.

When your usage or needs change, do not hesitate to request information on

plans that more closely meet your new set of requirements. But be aware
there are hefty fees for canceling early.

Smartphones

A smartphone is a cell phone that offers advanced capabilities with computer-

like functionality. A smartphone incorporates features like email, internet, and
social media. Smartphones are capable of text messaging and include a
camera with video capability.

Outside your office, a smartphone can be a valuable tool for business. In fact,
if you don’t have an office, or work from your home, a smartphone can be your
office. With a smartphone you can use email, access the internet, review, edit,
or scan documents, use GPS, accept and make payments, and use a
multitude of applications (apps) to do almost anything. The most popular
smartphones are the Apple iPhone (iOs) and Samsung Galaxy (Android), but
new smartphones are emerging on the market everyday. Each has different
strengths you will need to factor into your business needs.

Internet Calling: Google Voice and Others

Internet calling is a way to make phone calls using the internet. There are
several internet calling providers. Google Voice is the most popular and it is
free. Google Voice provides voicemail, Short Message Service (SMS) and
texting, and a local phone number. Users can send free text messages,
customize their voicemail, read voicemail text transcript, and more. Users can
make or receive calls or texts from their computer or from their mobile
smartphone. Google’s voicemail service is now available for free to all Gmail
users. Other internet calling providers include Grasshopper, MightyCall,
Nextiva, DingTone, Telzio, Freedompop, Line2, Voiceably, and OnSIP, to
name a few. Each provides a service for a monthly fee with different features,
capabilities, strengths, and weaknesses.

SMS Messaging and Texting

While not all mobile phones are smartphones capable of receiving videos and
pictures, nearly all mobile phones can receive SMS (short message service)
messages. These are texts of less than 160 characters that consist only of
letters, numbers, and symbols. SMS messaging, and texting in general, is a
powerful way to communicate. SMS messaging and texting provide one-to-
one communication. As more and more people adopt mobile phones, there
are more opportunities to connect directly and personally with mobile phone
users (who may be your customers!).

Companies can use SMS messages as a way to remind customers of sales,

product offerings, and other announcements. It is important to note that
customers must opt-in to companies’ SMS marketing campaigns and that it is
illegal for companies to send SMS messages to customers who have not
opted-in. Companies can often encourage customers to opt-in by offering
them something in exchange. For example, a hot dog company could get
customers to participate in their SMS marketing campaign by offering them $5
off their next meal for texting a code to their specialized SMS campaign
number. Larger companies might purchase the services of an online text
message marketing company to manage these marketing campaigns and to
provide them with a short phone number code for customers to use to opt-in to
the campaign. Small businesses could also allow customers to sign up for text
messages like they might sign up for a mailing/emailing list and send
messages directly.

Cell and Data Plans

There are two major types of mobile phone plans: pre-paid and post-paid. Pre-
paid allows you to pay a mobile carrier upfront for mobile services, and you
must refill your minutes or data when they run out. Be aware that overage
charges for minutes or data used that exceed your plan may be billed at a
higher rate. You will need to understand if it is possible to go over your pre-
paid amount, and what additional charges might be imposed. Post-paid plans
allow you to sign a contract with a mobile carrier for different types of mobile
services, and you pay for those services at the end of the month. Unused
minutes or data may or may not roll over from one month to the next month,
meaning you have to pay for your minutes or data each month whether you
use it all or not.
Whichever plan you choose, be sure you understand the terms. There may
be penalties for terminating your contract early. You should think about your
business needs before deciding on a mobile service plan and whether you
want to pay upfront or at the end of the month.

Video and Web Conferencing

Video conferencing provides a way to have face-to-face meetings without the

expense of travel. It provides a more personal way to communicate both
externally with customers and partners and internally with team members or
employees who may work outside the office.

Video conferencing technologies transmit and receive images and voice in

real-time so that you can have a “face-to-face meeting.” Web conferencing
adds another dimension - it allows you to share documents and applications
during your online meeting. Both options allow you the flexibility to have one-
on-one meetings, or conferences with multiple attendees. Seeing facial
expressions and nonverbal cues during crucial business discussions and
negotiations can be invaluable for your business.

Some common tools for video and web conferencing are listed below. These
tools are offered at different levels and price points, although there are some
you can access for free. Some examples of video and web conferencing tools
include:

 Google+ Hangouts
 Skype
 Zoom
 Ring Central
 Webex
 Goto Meeting

All these solutions allow you to communicate as if you were face-to-face with
customers, partners, and employees anywhere in the world. Time and money
that would be spent on traveling can be used other ways for your business.
You can share documents, make presentations, and conduct meetings on
short notice. For example, without leaving your office, you can collaborate with
employees who work from home or from other company locations.

Social Networking Sites

If you are a member of a social networking site or utilize social media, you
know that these platforms are popular for businesses that use them for
marketing. A social network is an online community comprised of individuals
or organizations that are tied together by common interests. Internet-based
social networking occurs through a variety of website platforms that allow
users with similar interests to share content and interact online. Some popular
social networking sites include Facebook, Instagram, Twitter, LinkedIn,
Pinterest, YouTube, and many others.

By creating social networks that follow your business, or the interests of your
business, you can build relationships with current and future customers. For
example, there are online social networks for companies, celebrities,
politicians, and interests such as travel, home decor, cooking, and exercise to
name a few. By posting content to these groups you can provide information
to a large number of followers quickly and inexpensively.

Many companies pursue a social media strategy in their marketing efforts.

Social media marketing is a relatively inexpensive way to reach specific
customer segments that you believe will be interested in your product or
service. To be successful it requires a steady effort and participation over
time. One mistake companies make is jumping in and posting frequently
initially, but then not maintaining the effort for very long. It’s better to begin
with a pace you know you can continue, whether it’s once a month, once a
week, or once a day. If you find you have more content to post, you can
always do more. A note of caution on internet social networking: once you put
something out there it's hard to take it back, so you have to be careful. Always
be mindful of how a post will represent and reflect on your business. It’s also a
good idea to keep in mind that your personal social networks may also be
visited by potential customers, partners, investors, and employees.