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 Writing
Letters include the following standard components
• Date
• ‘To’ address
• The salutation
• ‘Attention Line’
• ‘Subject Line’
• The body
• The close
• Enclosures
Principles of Business Letter Writing
The 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 matters
1. 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
Types of
Business Letters
1. Routine letters and Replies –
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
Types of
Business Letters
1. Routine letters and Replies –
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 of
Business Letters
Business letters are written using a specific
format or plan
 Two alternative formats may be used
1. 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
Format of
Business Letters
Business letter formats
1.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
Format of
Business Letters
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
Format of
Business Letters
Business letter formats
1.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
Format of
Business Letters
Business letter formats
1.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
Format of
Business Letters
Business letter formats
1.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