The four basic types of business communication are internal (upward), internal (downward),

internal (lateral) and external.

Internal, Upward Communication:

This type of business communication is anything that comes from a subordinate to a

manager or an individual up the organizational hierarchy. Most communication that flows
upward is based on systematic forms, reports, surveys, templates and other resources to help
employees provide necessary and complete information.

For example, a sales report might include the total number of pitches, along with the actual sales.
It may also ask for feedback such as a summary of problems or successes that management
would like to track.

Internal, Downward Communication:

This is any type of communication that comes from a superior to one or more subordinates.
Communication might be in the form of a letter, a memo or a verbal directive. For example, a
memo regarding a new operations procedure might involve safety requirements and new
regulations.

Internal, Lateral Communication:

Lateral communication is the talking, messaging and emailing among co-workers in the office.
This might be cross-department communication or just internal department dealings. An example
involves cross-department communication, where the fulfillment manager has a question about a
special order, and is requesting clarification from the sales representative via an email or office
messaging system. Those in the same department might communicate to provide updates on
status reports and coordinate schedules.

External Communication:
External communication is any communication that leaves the office and deals with customers,
prospects, vendors or partners. It could also involve regulatory agencies or city offices. When
corresponding to outside entities for partnerships or other business administration needs, state the
purpose and be concise in communication, whether oral or written. Respect others time, by
getting to the point and stating your request.

What Is Business Communication?

Business communication covers subjects like advertising, external relations, branding, event
management, marketing, and any other topic related to the organizational structure of that
company. This type of interaction has the sole purpose of improving the organizational practices,
reducing the errors and providing a clear guidance, for the team members.

Types of Business Communication

Depending on every particular enterprise, several business communication methods have been
implemented. These methods share some common patterns, but they come with different styles
of delivering the information. The most common types of business communication are:

 Electronic (Online Communication):

Despite other forms of business communication, online business communication is more
advantageous. With electronic communication, the information will be delivered faster, in a
more accurate manner and it will not be dependent on the location of the interlocutor. For a more
qualitative online business communication, it's strongly advisable to use an advanced platform,
which will give you access to a suite of useful tools.

ezTalks Meetings is one such software, and it manages to bring your whole team together in a
few seconds, no matter their physical location. With this software, the meetings will be more
productive, and all the participants will have the chance to interact with each other. Once you've
hosted a meeting, any person can receive an invitation and join that meeting with just a device
(mobile or static) and an internet connection. Thanks to the Cloud Storage feature, any meeting
can be recorded and reviewed by the participants, in case they have some misunderstandings.
Also, this feature allows you to share any presentation, technical document, business plan and
other forms of written document, in just a matter of seconds.

 Verbal:
This is the oldest form of business communication. This interaction method includes live
meetings, face-to-face interviews, personal task assignments, and some other related methods. It
is usually considered to be the best form of business communication, because of its simplicity
and its direct interaction between the participants. On a negative note, verbal communication is
highly dependent on the physical presence of all participants, and sometimes, this can be hard to
achieve. Verbal communication often leads to misunderstandings, and the participants tend to
forget or misinterpret some of the debated issues.

 Written:
Written communication is considered to be more concise and more explanatory. It consists of
formal letters, official memos, posters, flyers, and everything that comes written on a paper. The
technical departments often use this form of interaction, to exchange clear information, with no
room for error. Also, it is used for any legal situation, like formal notices and labor contracts.

Importance of Business Communication:

Communication can ensure a better development of the ongoing projects, keep the employees
engaged and allow them to understand their tasks. However, an effective message means nothing
if it's not delivered in time. That's why, many enterprises switch to business communication
online, because of its accuracy and processing speed. Having an effective business
communication with the exterior partners will grant you a fruitful partnership and a better
collaboration.

Methods of Business Communication:

 Web-based communication;
 Video conferencing: Allows people in different locations to hold interactive meetings;
 Reports: Important in documenting the activities of any department;
 Presentations: Popular method of communication in all types of organizations, usually
involving audiovisual material, like copies of reports, or material prepared in Microsoft
PowerPoint or Adobe Flash;
 Telephone Meetings: Which allow for long distance speech;
 Forum Boards: Which allow people to instantly post information at a centralized location;
 Face-to-face Meetings: Which are personal and should have a written follow-up;
 Suggestion Box: Primarily for upward communication, because some people may
hesitate to communicate with management directly, so they can give suggestions by drafting
one and putting it in the suggestion box.
 Letters;
 Memos: Letters to members of a company or organization;

What are the different purposes of information?

Organizations use information for a variety of purposes.

 Updating knowledge - It is vital that businesses keep up to date with changes within their
markets. Information is required so that businesses know:
 How their markets are developing
 How labor markets are changing
 What the economy is doing
 What new laws are being passed that might affect the way they operate

All of this information helps organizations to make accurate decisions based on full knowledge.
Incorrect decisions are likely to be the result of inadequate information.

 Informing future developments - A business that does not adapt, develop and grow will
quickly find itself left behind by the competition. But developments need to be based on
informed decisions. A business will not release a new product unless it has evidence that
it will sell.

 Strategic direction and SWOT analysis

Strategic management is the process by which organizations determine their purpose, objectives
and desired levels of attainment. It helps a business decide on actions for achieving these
objectives in appropriate timescale. It allows the business to implement the actions and assess
progress and results.

In order to establish strategic direction, businesses require large amounts of info. Once they have
this info they use a tool known as a SWOT analysis to audit the organization and its
environment.

 Offering Competitive Insight - Businesses need to be aware of what their competitors are
doing, to ensure they do not fall behind and lose sales and market share. Regular research
and communication should help a business to assess its competitors' sales, marketing and
development activities.
 Communicating Sales Promotions - Businesses use a variety of information and methods
to communicate sales promotions to customers. They place information about products,
services and special offers on their websites, and have newspaper and journal adverts,
and television and radio adverts.
 Inviting support for activities - Information is required in order to support business
activities. E.g. A business may wish to change the way it operates (efficiency, fair trade
etc.) and it must have the support of its workforce.