Communication

Communication is the process of conveying information from a sender to a receiver with the use of a medium.

Effective Communication

In which 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.
6. International trading is not possible without efficient communication system.
7. Modern banking is also dependant on communication system.

Elements of Effective Communication

1. Sender.
2. Recipient.
3. Mode of communication.
4. Feed back.

Mode of communications

Verbal/Oral

• Face to Face.
• Through a mediator/translator.
• Telephone.
• Mobile phone.
• Seminar/conference.

Advantages

1. Quick.
2. Normally cheap.
3. Facial expressions can be seen.

Disadvantages

1. Message can be distorted.
2. No proof or record.

Written

• Postal mail.
• Fax.
• Internet.
• Newspaper/Magazine.
• Intranet.
• SMS.

Advantages

1. Record can be made.
2. Sometimes it is fast and cheap in case of SMS and internet.
3. Lesser chances of message being distorted.

Disadvantages

1. Some times it can be expensive.
2. Useful only for literate people.
3. Not very quick is case of newspaper and postal mail.

Postal Office

• Message is physically transferred.
• For written.

Ordinary Mail:

• To send and receive letter.
• Each letter costs on the basis of weight and distance.
• Advantages:
  • Cheap.
  • Record of info can be kept.
  • Wide coverage.
• Disadvantages:
  • Slow.
  • Misplacement of letter can occur.
  • Only be used by literate people.

Registered Mail:

• Suitable for sending and receiving sensitive information or expensive material.
• Extra fees is paid to ensure delivery and with compensate for loss.
• Advantages:
  • Still cheap.
  • Wide coverage.
  • Track record of delivery of letter.
  • Compensation in case of loss of mail.
• Disadvantages:
  • Bit expensive than ordinary mail.
  • Slow.
  • Useful only for literate people.

Express Mail:

• Used to send documents in urgency.
• Express mail service can be availed on the request of both sender or receiver.
• Advantages:
  • Speedy.
• Disadvantage:
  • Extra money is to be paid.

Post Boxes:

• This service is available on request by paying charges.
• Suitable for those who want to receive frequent mail and do not want to show their identity or address.
• Upon request, Post office will assign a certain post box with a certain number.
• Post boxes are located in post office premises.
• A key is given to the person to whom post box is assigned.
• All mail to a certain post box will be dropped in the post box by the post office and a representative of the business will collect is personally.

Franked Mail/Prepaid Mail:

• This service is available on request.
• This is suitable for those who have to send a lot of mail on regular basis.
• On request customer will get a franking machine.
• Function of franking machine is to print stamps.
• Franking machine is equipped with a meter which counts on the stamps printed.
• Customer has to pay rental cost of the machine along with the stamps used.
• Saves time and money if outgoing mail is frequent.

Air Mail:

• Used when documents/letters are to be send abroad (generally).
• It is speedy for longer distances.
• Sender has to pay extra cost.
• Sender has to specify by writing AIR MAIL on envelope.

Parcel Service:

• For sending and receiving cargo of small size or weight.
• Cargo is packed in wooden/car board box with name of receiver on it.
• Cargo accepted by the post office and they issue an acknowledge / consignment note.
• Consignment note carries the amount, name of receiver and cargo details.
• Cargo number can be used to track he cargo.
• Cost is paid on the basis of distance and weight of cargo.

Means of Payment:

1. Money Order: For larger amounts.
2. Postal Order: For smaller amounts.
3. National Giro: For making payments in someone’s account.

Saving Account:

• Can be operated and maintained at certain branches of post offices.

Insurance:

• Post offices act as insurer to cover certain risks.

Agency Service:

• Post offices as agent to accept and make payments on behalf of others.

Telecommunication

• Used for sending and receiving information electronically.

1. Telephone:

Pros:

• Cheap.
• Easily available.
• Wide coverage.
• Speedy.
• SMS facility.

Cons:

• Facial expressions can not be seen.
• Only two people.
• No record.

2. Mobile Phones:

Pros:

• Can be carried any where.
• Becoming cheaper.
• SMS.
• MMS.
• Internet.
• Payments of bills.
• Enables travelers to keep in touch with his office.

Cons:

• Still expensive.
• Informational can be distorted in case of weaker signals.
• Not so wide coverage.
• Battery needs to be charged.

3. Fax:

• Used for written communications.
• Special equipment (fax machine) is required at both ends.
• Send will feed document in his fax machine and receiver will get the copy of the document on his fax machine.

Pros:

• Confirmation of communication.
• Fast.
• Exact copy is received.
• Record can be kept.

Cons:

• Expensive, charges are based on time and distance. Suitable only for sending few papers.
• Fax quality is not so good. Limited life of fax copy.
• Need special equipment on both ends.

4. Internet:

• A network that links computer networks all over the world by satellite and telephone, connecting users with service networks such as e-mail and the World Wide Web.
• Modern banking is dependant on internet.
• E-commerce is carried out on internet.
• Has increased international trade.
• Cheap source of information.

5. Intranet:

• A network of computers, especially one using World Wide Web conventions, accessible only to authorized users such as those within a company.
• High capital cost.

6. Email:

Pros:

• Used to send messages over the internet.
• One must get an email address to use this facility.
• Attachment can be done.
• Quick.
• Cheap.
• C.C. and B.C.C. can be done.

Cons:

• Sender and receiver both required email address.
• Virus.
• Information can be distorted.
• For computer literate people only.
• Hacking.

7. Teleconferencing:

• A group of people can have conversation through a telephone line at the same time.
• Saving time and money on meetings.
• It required special equipment.
• Facial expressions can not be seen.

8. Videoconferencing:

• Facial expressions can be seen.

Factors affecting choice of communications

1. Cost.
2. Speed.
3. Accuracy of information.
4. Availability.
5. Nature of information.
6. Secrecy of information.
7. Distance.

This temporary old revision section will automatically redirect to new version once ready.