Communications

Communication: The process of conveying information from a sender to a receiver using a

medium.
Effective Communication
Occurs when the communicated information is understood in the same way by both the sender
and the receiver.
Importance of Communication in Commerce
Communication is vital in commerce for several reasons:
1. Exchange of Documents:
 Facilitates the exchange of essential trade documents, such as contracts, invoices, and
purchase orders, between businesses.
2. Minimizes Confusion and Misunderstanding:
 Ensures clarity between buyers and sellers, reducing the risk of disputes or errors in
transactions.
3. Better Business Control:
 Enables businesses to monitor and manage operations more effectively, ensuring that all
departments and stakeholders are aligned.
4. Reliable and Cheap Market Information:
 Helps businesses obtain accurate and cost-effective information about market trends,
consumer preferences, and competitor activities.
5. Connectivity for Frequent Travelers:
 Allows business professionals who travel frequently to stay connected with their offices,
ensuring that operations continue smoothly even when key personnel are away.
6. Enables International Trade:
 Essential for conducting business across borders, allowing companies to communicate
with international partners, suppliers, and customers.
7. Support for Modern Banking:
 Crucial for the functioning of modern banking systems, enabling transactions,
communication with customers, and coordination with other financial institutions.
Elements of Effective Communication
Effective communication in commerce requires several key elements:
1. Sender:
 The originator of the message who has information, ideas, or instructions to communicate.
2. Recipient:
 The person or group for whom the message is intended and who interprets the message.
3. Mode of Communication:
 The medium or method used to convey the message, such as oral, written, electronic, etc.
4. Feedback:
 The response from the recipient that indicates whether the message was understood as
intended, allowing the sender to confirm or clarify the communication.
Modes of Communication and Their Evaluation
Modes of Communication
Refers to the method or medium used to convey information from one person or entity to
another. It can be verbal/oral, written, telephonic, or electronic.
Verbal/Oral Communication
Refers to any form of communication that involves the use of speech.
Examples of Verbal Communication:
a. Face-to-Face: Direct communication between individuals in the same location.
b. Through a Mediator/Translator: Communication facilitated by a third party to bridge
language or cultural gaps.
c. Telephone: Voice communication over a telephone line.
d. Mobile Phone: Voice communication using a mobile network.
e. Seminar/Conference: Structured verbal communication in a formal setting.

Advantages and Disadvantages of Verbal/Oral Communication:

Advantages Disadvantages
Immediate response Message can be distorted
Body language can be seen and used May lack proof or record
Effective for communicating long messages Difficult to ensure everyone understands
Instant audience reach
Written Communication
Refers to any form of communication that involves writing or typing.
Examples of Written Communication:
a. Postal Mail: Traditional mail delivered through a postal service.
b. Fax: Transmission of scanned printed material via a telephone line.
c. Internet: Communication over the global network, including emails and online messaging.
d. Newspaper/Magazine: Printed publications used for communication.
e. Intranet: A private network used within an organization for internal communication.
f. SMS: Short Message Service used for sending text messages via mobile phones.

Advantages and Disadvantages of Written Communication:

Advantages Disadvantages
Records of communication can be made Can become ineffective if the message is too
long
Sometimes faster and cheaper (e.g., SMS, Useful only for literate people
internet)
Lesser chances of message being distorted Not very quick in the case of newspapers and
postal mail

Postal Services Overview

A postal service is an organization that physically delivers letters, parcels, and other mail items
through various postal methods.
Types of Postal Services and Their Evaluation:
1. Ordinary Mail
 Use: Sending and receiving standard letters.
Advantages:
a. Cost-effective
b. Wide coverage
Disadvantages:
a. Slower than electronic mail
2. Registered Mail
 Use: Sending sensitive information or valuable items.
Advantages:
a. Tracking and record of delivery
b. Compensation for lost mail
Disadvantages:
a. More expensive than ordinary mail
a. Slower than electronic mail
3. Express Mail
 Use: Urgent delivery of documents and goods.
Advantages:
a. Faster than ordinary mail
Disadvantages:
Higher cost
4. Post Boxes
 Use: Receiving frequent mail without disclosing personal address.
 Advantages:
a. Anonymity
b. Convenient for frequent mail recipients
 Disadvantages:
a. Requires payment for services
5. Franked Mail/Prepaid Mail
 Use: For businesses that send a large volume of mail regularly.
Advantages:
a. Time and cost-saving for frequent mail
Disadvantages:
a. Rental cost of franking machine
6. Air Mail
 Use: Fast delivery of mail across long distances, both locally and internationally.
Advantages:
a. Speedy for longer distances
 Disadvantages:
a. Higher cost compared to regular mail
7. Parcel Service
 Use: Sending and receiving small cargo items.
Advantage:
a. Tracking with consignment note
Disadvantage:
a. Cost based on distance and weight
8. Means of Payment
The Post Office offers means of payment such as:
 Money Order: For making large payments via the post office.
 Postal Order: For smaller payments.
 National Giro: For making payments into someone’s account.

Evaluation of Communication Modes

Mode of Advantages Disadvantages
Communication
Verbal/Oral Immediate feedback, use of body Prone to distortion, lacks record
language
Written Permanent record, sometimes Literacy-dependent, can be slow
faster and cheaper
Postal Services Wide coverage, various options Generally slower, more costly for
for different needs faster services

Telecommunication, Factors Affecting Communication, and Trends

Telecommunication
Is the electronic transmission of information over distances, enabling the exchange of data,
voice, and video between remote parties.
Key Methods of Telecommunication:
1. Telephone
A system that converts voice into electrical signals and transmits them over distances, allowing
for real-time voice communication.
Advantages:
a. Immediate communication
b. Easy to use
Disadvantages:
a. No visual cues
b. Requires telephone network
2. Fax
A system that sends copies of documents via a telephone line using a fax machine.
Advantages:
a. Confirmation of communication
b. Faster than postal mail
c. Exact copy received
Disadvantages:
a. Expensive and requires special equipment
b. Limited to sending few pages
c. Lower quality than original documents
3. Internet
A global network that connects computers, enabling access to services like the World Wide Web,
email, and social media.
Advantages:
a. Fast communication
b. Facilitates international trade
c. Cheaper access to information
Disadvantages:
a. Prone to hacking and scams
b. Potential for identity theft
4. Intranet
A private network within an organization that facilitates internal communication and information
sharing.
Advantages:
a. Secures organizational secrets
b. Less vulnerable to hacking
Disadvantages:
a. Expensive to set up
b. Cannot be used for e-commerce
5. Email
A system for sending and receiving electronic mail over the internet.
Advantages:
a. Quick and cost-effective
b. Allows document attachments
Disadvantages:
a. Vulnerable to viruses and hacking
b. Requires both sender and receiver to have email addresses
6. Teleconferencing
A meeting held over the telephone where multiple participants can communicate simultaneously.
Advantages:
a. Saves time and money on travel
b. Can be conducted at any time
Disadvantages:
a. Requires special equipment
b. Body language cannot be observed
7. Videoconferencing
A meeting where participants in different locations can see and hear each other in real time using
video and audio.
Advantages:
a. Allows use of facial expressions
b. Saves time and travel costs
Disadvantages:
a. Requires high-quality internet and special equipment
b. May suffer from poor connection quality

Factors Affecting the Choice of Communication Method

Factor Description
Cost Cheaper communication methods are often preferred, especially for
routine tasks.
Speed Faster methods are chosen when urgency is critical.
Accuracy Methods that deliver information accurately are preferred for sensitive
content.
Availability The method must be available and accessible to both the sender and
receiver.
Nature of Sensitive or confidential information requires secure communication
Information methods.
Distance Communication over long distances may necessitate specific methods
(e.g., email, airmail).

Trends in Communication
Refers to the evolving technologies and practices that are shaping the future of communication in
business and daily life.
Key Trends and Developments:
1. Computer Hardware Advances
 Tablets and Smartphones: Portable devices that have become essential for
communication, combining the functions of a phone, computer, and camera.
 In-Touch Interfaces: Touchscreen technology that enhances user interaction with devices.
2. Use of Social Media
Online platforms where users can share content, communicate, and network with others globally.
 Impact: Social media is becoming a primary channel for business communication,
marketing, and customer engagement.
3. Application Stores (App Stores)
Digital distribution platforms where users can download and install applications on their devices.
 Importance: App stores provide access to a wide range of communication tools, from
messaging apps to video conferencing software.
4. Mobile Phone as a Multifunctional Tool
 Role: Mobile phones have evolved into all-in-one devices, combining communication,
computing, and entertainment functions.
 Impact: They have revolutionized the way businesses operate, offering on-the-go access to
communication, data, and services.

Summary Table of Trends:

Trend Description Impact
Computer Tablets, smartphones, in-touch interfaces Enhanced mobility and user
Hardware interaction
Social Media Platforms for global content sharing and Key channel for business
networking communication and marketing
Application Digital platforms for downloading Easy access to a variety of
Stores communication tools communication apps
Mobile Phone Multifunctional device combining various Revolutionized business
communication and computing functions communication and operations