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

Types / Modes / Methods 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? Do you search 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.

Companies use a variety of strategies to convey information to staff members as well as to customers, partners, and members of the public. These methods cover both contemporary digital platforms and conventional face-to-face interactions. Every strategy has advantages and disadvantages that impact how well and quickly information is shared within a company.

Types of Business Communication

Corporate communication uses spoken, written, visual, and nonverbal formats, all of which are essential for the effective and understandable expression of ideas. These modes act as informational channels, influencing how recipients understand and interpret communication.There are mainly two types of business communication systems when categorizing broadly:

Internal Communication

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

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.

Downward Communication

A hierarchically superior transmits the information to one or more subordinates. Once upward communication is established, it initiates downward communication. 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.

Horizontal communication

Colleagues transmit information horizontally, bypassing the hierarchy. These communication channels facilitate problem-solving, task completion, teamwork, and other collaborative efforts. Let’s take an example of Horizontal communication: The secretary gives each person the mail service intended for it.

External Communication

This analysis of the various methods, tenets, and formats of business communication will focus on how organizations can effectively disseminate information, create relationships, and foster success in today’s interconnected global economy. Businesses can improve their communication strategies, overcome challenges, grab opportunities, and achieve their goals by carefully weighing these factors. Let us further discuss about external communication in detail:

Media Relations

It is about building and maintaining a positive relationship with the media (television, print, The Web, etc.). This involves writing and distributing press releases, organizing press conferences and meetings with media professionals, and orchestrating events for the media. This encompasses a wide range of activities aimed at engaging with the press and shaping media coverage.

External Events

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

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.
  • Business management and corporate publications – to the outside world.
  • Managing print media.
  • Manage crisis situations through effective communication.

Methods of Business Communication

Effective communication is the cornerstone of any successful corporate operation. In today’s dynamic business environment, various business communication approaches, modalities, and forms make it easier for stakeholders inside and outside of an organization to share ideas, concepts, and strategies. These various communication tactics serve various functions and satisfy the particular needs and goals of businesses across a variety of industries. Let’s explore various methods and modes of business communication that can enhance effectiveness.

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.

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.

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.


In conclusion, the great range of corporate communication techniques, forms, and styles highlights the importance of effective communication for an organization’s success. Businesses must deliberately employ a range of communication channels, such as written letters, digital platforms, verbal exchanges, and in-person contacts, in order to communicate with clarity, coherence, and relevance.

Understanding the minor nuances between various communication styles may help organizations foster a culture of open communication, collaboration, and innovation. Employees and clients, stakeholders, and outside partners form deep ties as a result. Businesses may select the most efficient channels for information distribution and ensure that messages efficiently reach their intended audience by understanding the importance of varied communication modes.

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