Circular

Circular is a written notification conveying some material information to different interested

Parties. Circular conveys information regarding any product, policy change of address.
Opening or shifting of a showroom or branch, change of representatives etc . Circular is the
notification or conveyance of some information to the customers, employees, departments,
public or interested parties.

Circular letter is one of the oldest types letter. This kind of letter originated in ancient time
when people felt the necessity of circulating any message to a large number of people at a
time in the same way.

Generally, the letter that is used to circulate any special message to a huge member of
audiences at the same time is known as circular letter. It is one of the cost effective means of
circulating information or introducing new products to mass people. However, circular letters
are not only used in business, but also in social, political and personal affairs.

Circulars or fliers are a highly effective way to communicate with employees or customers. Many
companies use circulars to enforce dress codes and policies or invite employees to meetings or
luncheons. Circulars can also be used as an advertising tool. There are a number of benefits to using
circulars, but a circular must include certain features to be most effective. Additionally, distribution
is important for circulars in business communication.

Benefits

Circulars are an inexpensive and fast way to distribute information. Managers can create a
circular on their computer and print out multiple copies in 30 minutes or less. Circulars are
also highly informative, depending on the level of information needed. For example, a
company needs only a few lines of copy to inform employees about a seminar. Circulars can
also be informal and non-obtrusive--people are free to read or ignore them.

Identification

Circulars in business communication must target a specific audience. For example, a circular
inviting company employees to learn database management is geared toward marketing
research managers and computer programmers. A company that distributes circulars for its
newspaper is targeting people who do not have a subscription. Writers who keep their target
audience in mind will usually produce more effective circulars.

Function

Like other advertising pieces, a business circular will usually follow the AIDA (attention,
interest, desire, action) principle, according to advertising expert Dave Dolak at
davedolak.com. The circular should be designed to attract attention with a strong heading or
images. It must then hold the reader's interest and ultimately compel her to buy a particular
product or service. Companies can enhance a reader's desire for a product by making the
circular believable. Giving the reader a reason to buy immediately will also increase her
desire.

Distribution to Consumers

Business owners can post circulars on grocery store bulletin boards or include them with the
daily newspaper. Some business owners place circulars on people's car windshields. There
are also companies that distribute circulars door-to-door along with other offers. Businesses
may include a circular in a direct mail package. All of these methods can be highly effective
in reaching the consumer.

Importance or advantages of circular letter

Circular letter circulates information relating to a company, its products and services etc. to a
large number of people at a time. It plays an important role in the growth and development of
business. Its importance is briefly discussed below:

1. Easy method of conveying information: Circular letter is the most easy, simple and
effective way to convey any information to a huge number of people.
2. Achieving economy: Circular letter can be used for wide publicity of products. As a
result, organizations can save cost of sending letters to different parties separately and
can gain economy.
3. Saving time: Circular letter transmits information to a large number of people at a
time. It does not require reaching each individual separately. Thus, it saves time.
4. Less effort: Circulating information to each individual separately is a time consuming
and laborious job. Circular letter helps to overcome this problem. Through circular
letter, we can communicate with large number of people at a minimum effort.
5. Creating market: Through circular letter, a company can inform the potential
customers about its products and services. In this way, new market can be created.
6. Increasing consumer’s confidence: Convincing and attractive circular letter can
easily touch the reader’s heart and thus helps to enhance consumer’s confidence on
the company’s products.
7. Creating public consciousness: In circular letter, information like price, quality,
utility, place of availability etc. are mentioned in details that make people more
conscious about the product.

Circular letters are prepared for circulating business and non-business messages. Thus, it
seems that circular letters can be of the following two types:

 Trade circular letter: When a circular letter is prepared and distributed for
circulating any business related message, it is known as trade circular letter. Its main
objective is to circulate business information like, launching new business, opening
new branch or showroom, changing address of business, introducing new product,
inclusion, retirement or death of partners etc.
 Non-trade circular letter: The circular letter that is prepared and distributed for
circulating personal or social information is known as non-trade circular letter. The
examples of non-trade issues are preaching the political ideology by a political
organization, circulating personal opinion on any matter by an individual etc.