BUSINESS LETTER-TYPES

 

TYPES OF BUSINESS LETTERS

A written document used to send information for different purposes is called a letter, and when a letter is used for business,  it is known as a business letter. A Business letter is formal in tone & style, objective in nature & content. 

 A letter has been an integral part of a business since its invention, and no one can ignore its importance. Various business letters are flowing in & out to serve a business organization. Letters are written to stakeholders, suppliers, customers, government departments, banks, transporters, job seekers, and many more at different times, and occasions.  These are formal in nature & written to third parties related to a business organization (whether directly or indirectly) for conducting their business.

Following are the different kinds or forms of business letters-

1.      Sales letter

2.      Enquiry letter

3.      Quotation letters (Replies to Enquiry letters)

4.      Order letter

5.      Complaint letter

6.      Adjustment letter

7.      Circular letter

8.      Letter for application of agency

1.         Sales letter: There are different ways to attract customers towards our goods & services. Like an advertisement on T.V., radio, newspaper, etc., but in some situations, correspondence is more useful, because it directly contacts the prospective customer. Sales letters are written to connect to prospective customers directly.

Sales letters are unsolicited letters. These are written by suppliers or manufacturers of goods, to inform and introduce the customers to their product or service which will come to the market.  The effectiveness of such letters depends on the writer's ability to use language suited to his purpose and to influence the recipient, his thinking, his taste & behavior; therefore, sales letters should be persuasive. 

2.         Enquiry letter: when a buyer writes a letter to the seller to get information on goods and services about the quantity, quality, price, mode of payment, delivery, availability, etc., such a letter is called an inquiry letter. The inquiry letters are broadly classified into the following four types:

•      Specific Enquiry: When a buyer writes a letter intentionally to know about particular or specific information about a specific product, such inquiry is called specific inquiry.

•    General Enquiry: When a buyer writes a letter to collect information of a general nature, such inquiry is called routine inquiry.

•       Solicited Enquiry: An inquiry in response to a sale letter and advertisement is called a solicited inquiry.

•       Unsolicited Enquiry: When a buyer makes an inquiry at his own initiative to buy goods & services, the inquiry is called an unsolicited inquiry.

3.         Quotation letter: A reply to the inquiry letter is an opportunity to promote sales. It is addressed to the prospective buyer in answer to his inquiry. It is necessary to give prompt attention to an inquiry. The sales manager must satisfy the buyer so that he can convert an Inquiry into an Order, and the supplier must not take time to send a complete reply. The quotation letters play a crucial role in the increase in sales and profit of a business organization. 

A quotation letter must include-

a.     Price: 

b.     Quantity: 

c.     Terms of trade: discount, credit facility, delivery of goods, insurance,                      reveling charges etc. 

Recently, it has been noticed that most sellers have printed quotation letters that have all the details about the product and services. In such cases, the seller must write a cover letter out of courtesy. It shows a personal interest and respect to the buyer who makes an inquiry. 

4.         Order letter: After receiving quotations from different suppliers, the buyer looks at competitive prices, qualities, and other terms quoted. The buyer selects the best quotation that is suitable and fulfills his requirements. Then, he orders the products/services from a company. A responsible person or a committee scrutinizes all the offers carefully before placing the order.

5.                 Execution of order letter:

When a supplier receives an order, he may send an acknowledgment to the buyer about the execution of the order given by them. It builds an abiding, friendly & profitable relationship with the buyer. This letter includes a thanks note to the buyer for placing the order to him, the expected delivery date or if the supply will be late then it should be written clearly with reason. In both cases, a cheerful and pleasant tone must be maintained. It must express deep gratitude & appreciate the interest of the buyer in the goods ordered. The supplier can even mention the favorable aspects of the goods, competitive prices, and other terms & services.

6.         Complaint letter: There are ample chances of committing a mistake (unknowingly) by the supplier during packing or transit because, in a business organization, the sales department accepts the order & starts making necessary arrangements for sending the goods. There are many people involved in this process & sometimes some of them commit mistakes quite unknowingly. After receiving the consignment if the buyer discovers any mistake or discrepancy, he brings them to the notice of the sales department of the supplier by writing a complaint letter. It is written with the hope that the supplier might settle the matter without any further conflict between them.

Many buyers discover genuine mistakes soon after receiving the consignment. Such mistakes must be immediately brought to the notice of the supplier, because they may cause inconvenience & financial loss to the buyer. But the buyer should do it without displaying any anger & ironic remarks. The anger and sarcasm can snap the good and friendly business relations between seller & buyer.

7.         Adjustment letter: Every complaint letter must be welcomed by the supplier even though he can’t enjoy it. It may express dissatisfaction or anger of the buyer for the inconvenience caused to him due to the supplier’s mistakes. But the supplier should be glad to receive the opportunity provided by the complaint letter to realize his mistake and to correct it. Adjustment letters are a reply to the complaint letter. To maintain business relations, business interests, and the interruption of the business, the supplier must handle this correspondence very carefully, tactfully & delicately. Firstly, he has to the customer for making a complaint because they could have abandoned him & placed the orders with the other suppliers. Therefore, the complaint must be treated as an opportunity to save the customer, preserve the customer's goodwill & put things right. The supplier has to answer the complaint promptly, and satisfactorily & specifically so that the customer realizes his sincerity & willingness to serve. The decision regarding the customer's claim must be taken only after sound thinking & investigation. If this requires more time, the supplier should at least send an immediate acknowledgment of the complaint.

8.         Circular letter: A businessman sends a circular letter when he has to communicate a formal message to several customers, shareholders, suppliers, business friends, employees, etc. It conveys a message about a certain fundamental change in the structure & policy of the business organization. It circulates the same message to all the receivers. Its subject matter is of common interest to all the customers & other business associates. It is printed or typed on a large scale because the same message is transmitted to several receivers. Therefore, it must be drafted appropriately and carefully. It must have an attractive style, effective language, meaningful and catchy words, a suitable tone & 'you attitude'.

The circular letters are advantageous because they save time & money. As it contains a common message, it can be made comprehensive enough to communicate the business policy of a business organization. It is also useful for circulating important information regarding decisions taken by the management & changes made in the structure of a business organization.