Chapter 8 COMMUNICATION

Communication is the process of conveying information from a sender to a

receiver with the use of a medium.

Effective Communication

Is when the communicated information is understood the same way by both

sender and receiver.

Importance of communication in commerce

1 Need for exchange of documents in trade.

2.Minimizes confusion and misunderstanding between buyer and seller.

3. Ensures better business control.

4. Business can get reliable and cheap information about their market.

5. Frequent travelers need to develop a contact with their offices.

5. connects businesses with customers worldwide

6. International trading is not possible without efficient communication system.-

expands.

7. Modern banking is also dependant on communication system.

Elements of Effective Communication

1. Sender.

2. Recipient.

3., Mode of communication.

4. Feed back.

8.2 Methods of communication

Effective communication is a two-way process built on mutual understanding.
Participants exchange information and create shared meaning.

One-way communication, where the receiver can't respond, is less effective.

Internal communication

★The systems of internal communication within an organisation play a crucial

part in its smooth and effective running of the business.

External communication

★It refers to any exchange of information between a business and its external
stakeholders, such as customers, suppliers, investors, government agencies, and
the media.

★External communication aims to build a brand reputation and craft messages

that resonate with the right audience at the right time.

Ways of communicating/Modes

There are five main ways to communicate:

1. oral,

2. written,

3. telephonic,

4. electronic, and visual.

1. Oral communication includes interviews (for individual discussions like hiring),

meetings (for group discussions), and conferences (for information sharing among
groups).

* Radio & Television: Public outreach, image building.

* Intercom & Paging: Internal contact, hands-free communication.

* Public Address System: Broadcasting messages to large audiences.

* Telephone: Important aspect of oral communication.

Written Communication:

* Letters: Formal internal communication (notices, etc.).

* Memos: Internal notes, brief, informal.

* Email: Familiar & rapid, but not always formal.

* Reports: Investigative summaries, circulated internally.

* Questionnaires: Data collection (staff views, etc.).

* Itineraries: Travel plans, schedules.

* Notices: Bulletin board information (jobs, safety, etc.).

* Press Releases: Public announcements, carefully worded.

Telephonic Communication:

* Communication via telephone.

Telephonic Communication:

* Telephone: Major means of communication, internal and external, voice

contact, used with modems for computer communication, mobile phones
extended usage.

* Telephone Answering Machine: Records messages when calls are unanswered.

* Voicemail: Stores spoken messages in personal mailboxes, accessible with PIN,

offers automated information or call routing.

* Facsimile Transmission (Fax): Rapid document transmission, handles various

documents including images and signatures, being replaced by email but still
relevant.

* Teleconferencing: Connects multiple phone lines for group discussions.

* Mobile Phones (Cell Phones): Primary uses beyond calls:

* Texting (SMS)

* Internet surfing

* App downloading

* Game download & play

* Music download & listening

* Making calls (ranked 6th in usage)

Electronic Notice Boards:

* LCD display screen connected to PC

* Commercial uses:

* Point-of-sale advertising

* Outdoor advertising

* Window displays

* Touchscreen kiosks

* Event signage

* Way-finding

* Reception area displays

Computers:

* Manipulate data via programs

* Hardware (tangible parts) vs. Software (programs, data)

* Protocol: rules for computer communication

* Important applications:
 * Word processing

* Accounting (ledgers, spreadsheets)

* Spreadsheets (data analysis)

* CAD (design)

* CAM (manufacturing control)

* Internet access

* Email

* E-commerce

Internet Communication:

* Global network of connected computers

* World Wide Web (WWW): access to information

* Intranet: internal network with restricted access

* Internet communication categories:

* Instant Messaging (IM)

Internet-Based Communication:

* Instant Messaging (IM):

* Private, real-time text chat (one-on-one).

* Business uses: helpline services, instant customer support.

* Internet Relay Chat (IRC):

* Multiple-user text chat (group or private).

* Occurs in channels or chat rooms.

* Users can join ongoing discussions.

* Internet Telephony:

* Free or low-cost phone calls over the internet.

* Electronic Mail (Email):

* Message transmission over networks; includes attachments.

* Messages stored and retrieved from ISP.

* Components: header (sender/recipient info, subject) and body.

* Spam: junk email, potential source of viruses.

* Videoconferencing:

* Remote conferences using video and audio over computer networks.

* Requires webcams, microphones, speakers.

Comparison of Communication Methods (from Figure 8.2):

* Discussion:

* Two-way (or more) sound and vision.

* Presenting:

* Two-way (or more) sound and vision.

* Partial monitoring.

* Debate:

* Three-way (or more) sound and vision.

Short Message Service (SMS):

* Global service for sending alphanumeric messages.

* Used for short text messages (up to 160 characters).

 * Common uses: personal communication, alerts (weather, travel, news), sales
inquiries.

* Messages stored until recipient's phone is active.

Visual Communication:

* Advertisements: Public notices for information, brief with visual impact.

* Pictures: Drawings, photos, moving graphics, convey information rapidly.

* Charts & Graphs: Display numbers in interesting formats.

* Pie Chart: Simple, but less effective for many segments.

* Bar Chart: Better for large amounts of data.

* Histogram: Shows measurements changing over time.

* Line Graph: Connects data points on a histogram.

* Pictogram: Uses symbols, but can be difficult for accurate proportions.

* Television:

* Entertainment and information source.

* Used for advertising to consumers.

* CCTV: Security and in-store advertising.

* Multimedia Presentations:

* Combines text, audio, images, animation, video, and interactivity.

* Used for in-store displays, presentations, meetings, and education.

* Body Language:

* Non-verbal communication (gestures, expressions, posture).

* Often subconscious.
Postal Services:

* Still important for businesses despite technology.

* Reasons for continued use not specified in this excerpt.

* General:

* Relatively cheap and simple.

* Essential for physical items and legal documents.

* Controlled by government or private sector.

* Charges available online or in directories.

* Mail Services:

* Two-tier: Faster and slower options.

* Registered Mail: For valuable items, compensation for loss, signature on

delivery.

* Recorded Delivery: For less valuable items, signature on delivery.

* Express Delivery: Speeded-up delivery between cities.

* Special Delivery Service: For businesses with high mail volume, scheduled
collection and delivery.

* Business Reply Service: Pre-paid postage for customer responses (cards,

envelopes).

* Bulk Postings: Discounts for large mailings (circulars).

* Franked Posting: Metered mail with company logo, billed directly.

* Poste Restante: Mail held for collection by recipient (travelers).

* Private Boxes: Secure post office boxes for a fee.

* Parcels Service: Cost based on weight and distance, slower than letters.
Courier Services:

* Door-to-door delivery of letters and parcels.

* Offered by postal authorities and private companies.

* International options available.

* Rates based on weight, size, and distance.

* Insurance crucial for valuable items.

Choice of Communication Method:

* Factors influencing choice:

* Urgency

* Written format requirement

* Confidentiality

* Number of recipients

* Location & distance

* Numbers, weight, and size of packages

* Cost

* Value and security

* Urgency:

* Immediate: Face-to-face or phone call.

* Rapid written: Email, fax, express mail.

* Written Format:

* Essential for complex instructions, legal documents, etc.

* Confidentiality:
 * Avoid fax for sensitive information.

* Email possible but may require original signature.

* Number of Recipients:

* Many recipients: Written or bulk methods.

* Location & Distance:

* Affects method choice (e.g., intercom vs. phone/email).

* Time zone differences important.

* Numbers, Weight, Size:

* Influence transportation method and cost.

* Cost:

* Balance cost with message/package importance.

* Value & Security:

* Special arrangements for valuable items (insurance, tracking).

Trends in Communication:

* Technological Developments:

* Internet-related communication facilities.

* Mobile phone evolution: computer and telephone functions combined.

* Tablets: portable internet devices.

* Smartphones: multifunctional communication tools with computer-like

features.

* Touchscreens: user-friendly interface.

* Impact of Technology:
 * Multichannel marketing embraced by businesses.

* Increased e-commerce leading to demand for courier services.

* Easier online access enabling remote work.

* Medical care advancements: text reminders, medication alerts.

* Social media: communication and marketing platform.

* Application stores: platforms for downloading programs.

* Impact on Business:

* Businesses use multichannel marketing.

* Wide variety of advertising media available.

* Social media marketing crucial.

* Drawbacks:

* Reduced demand for postal services.

* Potential unemployment in postal sector.