Wikipedia of Finance - e-learning course on Startup and Business Wikipedia Chapter - What are the different Types of Business Communication and Methods of Business Communication Systems

What are the different Methods, Modes and Types of Business Communication?


Communication is an exchange of ideas and opinions. When communication stops, it leads to exist of a business. Are you looking for Business communication ideas? Are you looking for the ways you can keep communication on-going rather than stopping? Are you looking for methods you can use for communication? Then here we are going to understand about various different types of business communication systems, modes and methods of communication available in today’s world.

Different Types of Business Communication:

There are mainly two types of business communication systems when categorizing broadly:

  • Internal Communication.
  • External Communication.

Internal Communication:

Let us take an example and understand the internal communication through different routes depending on the position of actors within the organization.

1. Upward Communication: The information is transmitted by a member or by the entire staff to the hierarchy. A staff uses upward communication for exchanging information, ideas, feedback, enthusiasm, etc. Let’s take an example of upward communication: A representative makes his weekly activity report to the Commercial Director.

2. Downward Communication: The information is transmitted by a hierarchically superior to one or more subordinates. Once upward communication is established; downward communication takes place. Such types of communication are necessary to give instructions, circulate vital information, seeking cooperation, boosting morale, increasing effectiveness, etc. Let’s take an example of downward communication: A service manager submits a work order to an employee.

3. Horizontal communication: Transmission of the information is transmitted on a horizontal plane, that is to say, colleague to colleague without involving the hierarchy. Such types of communications are required for problem solving, task accomplishments, teamwork, etc. Let’s take an example of Horizontal communication: The secretary gives each person the mail service intended for it.

External Communication:

Let us further discuss about external communication in detail:

1. Media Relations: It is about building and maintaining a positive relationship with the media (television, print, The Web, etc.). This includes, but is not limited to, writing and hand out press releases, establishing press conferences and summit with media professionals and shaping events for the media.

2. External Events: It could involve sellers meetings / suppliers / distributors, partner meetings, events related to product launches, major initiatives, etc.

3. Company / Spokesman: Spokesman Company is known, valued and well regarded as an authority in the respective sector.

  • Corporate content management websites and / or other external contact points.
  • Managing print media.
  • Manage crisis situations through effective communication.

Different Methods of Business Communication:

Here we will discuss above different methods and modes of business communication which can be used for effective communication:

1. Verbal Communication: A way where one person transfer information to another person of the businesses orally is called as verbal communication. Examples of verbal communication includes: telephone conversations, discussion in meetings, video conferencing, etc. These types of business communication have a limitation when companies are willing for their global presents. This limitation includes: language barrier, time differences, culture barrier, etc.

2. Written Communication: When communication between two or more parties takes place through writing is called as written communication. In such types of business communication, receiving party need to acknowledge receipt of message and also need to respond in specified timeframe. Example of written communication includes: formal letters, posters, bulletin boards, etc.

3. Electronic Communication: Various new types of business communication are developed with the development of technologies. An organization or a business can create multiple electronic channels to target different geographical markets. Example of electronic communication includes: social media, online chatting, text and email communication, websites, blogs, etc.

Recent research on the role of corporate communication managers says; business communication of fortune 500 tends to have an average of 4.5 years in the company. Almost half of them (48%) work directly with the CEO of your company. They say that 42% of their work is strategic and tactical is 58%. Over the years, they will focus more on corporate social responsibility, the media, and reputation.

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