IDEAL INSTITUTE OF

MANAGEMENT AND
TECHNOLOGY

BUSINESS COMMUNICATION

NEED,FUNCTIONS AND
LAYOUT OF LETTER WRITING.
BY-ANANYA SINGH

BBA(CAM)

ROLL NO-01621001921

PRESENTED TO-MS. ASTHA

SHARMA
 CONTENTS
S.NO. TOPIC PAGE NO.

1. Need of letter writing 3

2. Functions of letter writing 4-5
3. Layout of letter writing 6-8

4. Conclusion 9
 NEED OF LETTER WRITING
In business, letter writing is a major thrust area of communication. The modern
goal of nations for a free global trade and the need to cut across national,
linguistic and cultural barriers to promote trade have made the letter an
important business tool.
• A business letter acts as a representative of the organization. It is an
inexpensive substitute for a personal visit.
• It seeks to provide information on subjects connected with business.
• A business letter provides valuable evidence for a transaction and
thus serves a legal purpose.
• A business letter becomes a reference material to future
transactions between organizations and individuals.
• A business letter promotes and sustains goodwill.
• A business letter motivates all the people involved in a business to a
higher and better level of performance.
• A business letter enlarges and enhances the business.
 FUNCTIONS OF LETTER WRITING
• Convey information-
The basic purpose of any business letter is to convey information regarding business
activities.
• Creation of demand-
Business letters especially circular letters used to create demand for new products.
Circular letters can communicate many people in the same time .
• Creation of goodwill-
In this electronic era messages can be sent within few seconds through electronic
media but a well decorated business letter has its own importance in creation
positive image of the company.
• Expansion of business-
Through goodwill messages and through circular letters existing market can be
expanded.
 Functions of letter writing
• Establishment of relationship-
Another important purpose of business letter is, it helps to establish mutual relationship with the
customers, suppliers and with the other interested parties.
• Evidence-
Business letters are also used to maintain documentary evidence. Letters can be preserved for
future reference.
• To inquire-
A business concern not only sends messages but also receive information from the outside. To run
the business any firm need different types of information from outside. Through business letters
firms can inquire regarding necessary matters.
• Placing order-
It is a very common purpose for using business letter. Both trading and manufacturing concerns
need to place orders for finished goods or raw-materials to run the business.
• Problem solving-
In the course of business, disputes and misunderstanding may arise. Business letters play vital role
in solving such misunderstandings
 Layout of letter writing
1. Heading-
Many business organizations use printed letter head for business correspondence. The letterhead
contains the name, the address, the line of business, telegraphic address, telephone numbers,
telex numbers, e-mail address etc.
2. Date-
The date should be indicated in the upper right hand corner of the letter sheet. It is gener­ally
written two or three spaces below the last line of the letterhead.
3. Inside Address-
The inside address consists of the names and address of the person or firm to whom the letter is
written. It is generally written two spaces above the attention line and two spaces below the
level of date. If there is no attention line it is given above the salutation in the left margin. The
full address, i.e., the name of the person, firm, street, road etc. should be written as indicated in
the source you got the address from. The details should not be abbreviated.
 Layout of letter writing
4. Attention Line:
When a letter is addressed to a company so that it should reach a particular office by name or a
particular department, then attention line is typed below the inside address. This line is generally
underlined.
5. Salutation:
Salutation means greetings. It shows the respect or affection or politeness which you introduce in a
letter. The choice of salutation depends upon the personal relationship between the writer and the
reader. It is placed two spaces below attention line or two spaces below the inside address. While
addressing a firm, company or a club, etc. use ‘Dear Sirs’.
6. Subject:
The purpose of subject line is to let the reader know immediately what the message is about. By
seeing this the reader can understand at a glance what the letter is about. The usual practice is to
type this line in a double space between the salutation and the first line of the body.
Dear Sirs,
Subj.: Payment of Bill.
7. Reference:
In a reply to an earlier letter reference numbers, date etc. may be mentioned below the subject.
Subject and reference must be separate and must stand out clearly to get the attention of the
reader.

8. Body of the letter:

The body is the most important part of a letter. The purpose of this part is to convey the message
and to produce a suitable response in the reader. It is, therefore, important to organ­ise and
arrange the material very carefully.
Generally, the body consists of the following:
(i) Opening paragraph.
(ii) Main paragraph.
(iii) Closing paragraph.

9. Complimentary close:
The complimentary close is a polite way of ending a letter. It is typed two spaces below the last line
of the body of the letter.

10. Signature:
Signature is the assent of the writer to the subject-matter of the letter. It is placed below the
complementary close.

11. Enclosure:
sometimes, papers such as price list, catalog, draft may be attached to the letter. This is indicated
after the signature and at the left hand margin. Generally, the abbreviated form “End.” is typed
against which the number of enclosures is indicated.
 conclusion
 In these days of telecommunication, letter is still the chief method of conveying message. Letter
maintains the personal touch, serves as a record and also makes it possible to have multiple
copies, if required. Every business, big or small, has to maintain contacts with its suppliers,
customers, govt. de­partments etc. A large part of a company’s sales work is done through
letters; for example answering enquiries, acknowledging orders, contacting prospective
customers, executing orders, sending statement of accounts to debtors, requesting settlement of
accounts, canvassing for new products etc. Activities relating to purchase such as making
enquiries, placing orders, complaints about delay in supply of goods and the like are made by
lettersIn every business, letters play an important part.
 Through letters a business-man tries to open up and maintain business relations, to introduce,
to promote and conclude transactions. A letter serves as a medium for buying goods, selling
goods, collecting debts, earning the goodwill of the customers and also thrashing out all the
important problems. It is through letter-writing a businessman can be in touch with everyone on
the globe. He can find market easily all over the world by sitting in his chair. Hence letter-
writing is of vital importance in business.
 A letter represents the writer. It speaks to the addressee on behalf of the writer. Defects in a
letter will definitely endanger the chances of winning the attention of the reader. Therefore, a
letter should be care­fully drafted and sent to the addressee. Letter-writing is an art. The style of
the letterhead, the paper on which the letter is written, the neatness of writing etc. will create
good impression in the minds of the reader.
THANKYOU