See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/235938453

Business Communication

Chapter · March 2013

CITATION READS

1 68,034

1 author:

Vijay M. Kumbhar
Dhananjayrao Gadgil College of Commerce, Satara, India 415001 (Autonomous College)
117 PUBLICATIONS   161 CITATIONS   

SEE PROFILE

Some of the authors of this publication are also working on these related projects:

EDUCATION FOR SOCIAL CHANGE AND ECONOMIC UPLIFTMENT: A VIEWS OF RAJARSHI CHHATRAPATI SHAHU MAHARAJ View project

Good Employee Leave Manager or Instituion View project

All content following this page was uploaded by Vijay M. Kumbhar on 26 May 2014.

The user has requested enhancement of the downloaded file.

 M. A. Part – II ECONOMICS
Group – C1 – Optional Paper – XXIV
Unit No. 8
Business Communications

Dr. Vijay Maruti Kumbhar

Dept. of Business Economics,
Dhananjayrao Gadgil College of Commerce, Satara
Dist-Satara Maharashtra, India 415001
Cell,No.09860176059,
Email ID vijay.kumbhar9@gmail.com
 M. A. Part – II ECONOMICS
Group – C1 – Optional Paper – XXIV
Unit No. 8
Business Communications
8.0 Objectives
8.1 Introduction
8.2 Business Communication
8.3 Sources of Business Information
8.4 Role of Advertisements in Communication
8.5 Market Survey
8.6 Financial Consultancy
8.7 Summary
8.8 Check your progress
8.9 Write answers in brief
8.10 Write Short Notes

8.0 Objectives
After going through this topic;
 You are able to explain concept of business communication, types and importance of
business communication
 You are able to discuss important sources of business information
 You are able to explain meaning, concept and method of mmarket research
 You are able to discuss role of advertisements in communication
 You are able to discuss concept of financial consultancy and its importance

8.1 Introduction

Communication is one of the most important part of human life as well as mean of
business expansion. In the business sector various communication methods are used to
promote a product or services, or organization; it is also used to deliver information and
receive information from others. It is also a means of relaying between a supply chain, for
example the consumer and manufacturer. According to the encyclopaedia business
communication is known simply as "communications". It encompasses a variety of topics,
including marketing, branding, customer relations, consumer behaviour, advertising, public
relations, corporate communication, community engagement, research & measurement,
reputation management, interpersonal communication, employee engagement, online
communication, and event management etc.

8.2 Business Communication

Communication is neither transmission of message nor message itself. It is the mutual

exchange of understanding, originating with the receiver. Communication needs to be
effective in business. There are various definitions of communication out of that some
definitions are as follows;

 American Management Association defines, ‗Communication is any behaviour that

results in an exchange of meaning‘.

 Peter Little defines communication as, ‗Communication is the process by which

information is transmitted between individuals and/or organizations so that an
understanding response result‘.

 Newman and Summer Jr. state that, ‗Communication is an exchange of facts, ideas,
opinions or emotions by two or more persons‘.

 Keith Davis, state that, ‗The process of passing the information and understanding
from one person to another. It is essentially a bridge of meaning between the people.
By using the bridge a person can safely across the river of misunderstanding‘.

Business Communication is goal oriented. The rules, regulations and policies of a

company have to be communicated to people within and outside the organization. Business
Communication is regulated by certain rules and norms. In early times, business
communication was limited to paper-work, telephone calls etc. But now with advent of
technology, we have cell phones, video conferencing, emails, and satellite communication to
support business communication. Effective business communication helps in building
goodwill of an organization.

8.2.1 Types of Business Communication

Business communication is somewhat different and unique from other types of

communication since the purpose of business is to make money. Thus, to develop profitability,
the communicator should develop good communication skills. Knowing the importance of
communication, many organisations train their employees in communication techniques.

1) Internal Communication

Communication within an organization is called ―Internal Communication‖. It

includes all communication within a specific organization. It may be informal or a formal
 function of the firm. Upward Communication, Downward Communication and
Horizontal Communication is major types of Internal Business Communication.

a) Upward Communication: Upward communication is the flow of information from

subordinates to superiors, or from employees to management.

b) Downward Communication: Information flowing from the top of the

organizational management hierarchy and telling people in the organization what are
important mission and what is valued policies. Downward communication generally
provides enabling information which allows a subordinate to do something.

c) Horizontal/Literal communication: Horizontal communication normally involves

coordinating information, and allows people with the same or similar rank in an
organization to cooperate or collaborate. Communication among employees at the
same level is crucial for the accomplishment of work.

2) External Communication

Communication with people outside the company is called ―external

communication‖. Supervisors communicate with sources outside the organization, such
as vendors and customers.

8.2.2 Methods of Business Communication

There are several methods of business communication, including:

 Web-based communication - for better and improved communication, anytime

anywhere

 Video conferencing- which allow people in different locations to hold interactive

meetings;

 E-mails- which provide an instantaneous medium of written communication

worldwide;

 Reports - important in documenting the activities of any department;

 Presentations - very popular method of communication in all types of organizations,

usually involving audiovisual material, like copies of reports, or material prepared in
Microsoft PowerPoint or Adobe Flash;

 Telephoned meetings, which allow for long distance speech;

 Forum boards- which allow people to instantly post information at a centralized

location; and
 Face-to-face meetings, which are personal and should be succeeded by a written
follow-up.

8.2.3 Importance of Business Communication

Business communication is one of the important part of business. Even success

of business also depends on communication between employees and owner, Owner and
manager, manager and employees, salesman and customers etc. However, we can define
the importance of business communication as follows;

a) Instructions Motive: To giving instructions to the particular person or receive

instruction from someone business communication is required. In this, instructions
basically flow from top to the lower level.

b) Integration Motive: There are number of integrated activities in business which

required to better performance of the particular business. The integration function
of communication mainly involves to bring about Inter-relationship among the
various functions of the business organization. It helps in the unification of
different management functions.

c) Information Motive: Providing information to the employees or persons involved

in the management of the business is also important motive in the business
communication. Business communication helps to share, gather and distribute the
information

d) Evaluation Motive: Examination of activities to form an idea or judgement of the

worth of task is achieved through communication. Communication is a tool to
appraise the individual or team, their contribution to the organization. Evaluating
one‘s own inputs or other‘s outputs or some ideological scheme demands an
adequate and effective communication process.

e) For direction: Communication is necessary to issue directions by the top

management or manager to the lower level. Employee can perform better when he
is directed by his senior. Directing others may be communicated either orally or in
writing. An order may be common order, request order or implied order.

f) For teaching: The importance of personal safety on the job has been greatly
recognized. A complete communication process is required to teach and educate
workers about personal safety on the jobs. This communication helps the workers
to avert accidents, risk etc. and avoid cost, procedures etc.
 g) For influencing: A complete communication process is necessary in influencing
others or being influenced. The individual having potential to influence others can
easily persuade others. It implies the provision of feedback which tells the effect of
communication.

h) For image building: A business enterprise cannot isolate from the rest of the
society. There is interrelationship and interdependence between the society and an
enterprise operating in the society. Goodwill and confidence are necessarily created
among the public. It can be done by the communication with the different media,
which has to project the image of the firm in the society. Through an effective
external communication system, an enterprise has to inform the society about its
goals, activities, progress and social responsibility.

i) For employees orientation: When a new employee enter into the organization at
that time he or she will be unknown to the organization programs, policies, culture
etc. Communication helps to make people acquainted with the co-employees,
superior and with the policies, objectives, rules and regulations of the organization.

j) Other: Effective decision-making is possible when required and adequate

information is supplied to the decision-maker. Effective communication helps the
process of decision making. In general, everyone in the organization has to provide
with necessary information so as to enable to discharge tasks effectively and
efficiently.
8.3 Sources of Business Information
Information sources are one of the important elements of the business decision process
which helps to take right and appropriate decision. Hence, every businessman trying to
generate sources of appropriate information regarding business process. Business information
sources refer to the containers of information that are useful for different business transactions.
Although they may be formal or informal, these sources play a pivotal role in determining the
input for an information system. Access to the right business information, from the right place,
at the right time, from the right source, and at the right price - and knowing how to use it is a
major factor influencing trading efficiency and competitiveness
There are some internal sources and some are external sources of business information.
The sources wherefrom we get information are information sources. These sources comprise
documents, system, institutions and organizations, and human beings. Informal sources
include business colleagues, superiors and subordinates, external professionals, and other
contacts. Some are informal-external and others informal-internal. The informal-external
sources include trade contacts, personal advisers, professional associates, social and family
contacts. Here we only focusing on Business Internal record, management intelligent system
and market research.
8.3.1 Management Intelligence system
Management intelligence or business intelligence is one of the most important sources
of business information. In a 1958 article, IBM researcher Hans Peter Luhn used the term
business intelligence. He defined intelligence as: "the ability to apprehend the
interrelationships of presented facts in such a way as to guide action towards a desired goal. In
1989 Howard Dresner (later a Gartner Group analyst) proposed "business intelligence" as an
umbrella term to describe "concepts and methods to improve business decision making by
using fact-based support systems. Business intelligence mainly refers to system or techniques
used in identifying, extracting and analyzing business data, such as sales revenue by products
and/or departments, or by associated costs and incomes. Management intelligence provides
historical, current and predictive views of business operations. Common functions of business
intelligence technologies are reporting, online analytical processing, analytics, data mining,
process mining, complex event processing, business performance management, benchmarking,
text mining and predictive analytics. Business intelligence aims to support better business
decision-making. Thus a Management intelligence system can be called a decision support
system. Though the term business intelligence is sometimes used as a synonym for
competitive intelligence, because they both support decision making, Management intelligence
uses technologies, processes, and applications to analyze mostly internal, structured data and
business processes while competitive intelligence gathers, analyzes and disseminates
information with a topical focus on company competitors. Business intelligence understood
broadly can include the subset of competitive intelligence.
There are number of sources to the management intelligence to getting information like
the formal and/or informal ongoing collection of information about competitors and other
environmental developments (e.g., regulations, tech.) Includes reading trade reports,
newspapers, visiting competitors, etc
8.3.2 Business Internal Record
Internal record is record maintained by firm which consisting various documents and
books maintained by business firms. Almost all organization and business firms are
maintaining their record ether in written (physical) format. However, now many of firms are
maintaining their records in e-format also which provides speed and effeminacy in providing
information to the decision makers. Keeping records makes sound business sense. It may
seem like a challenge, particularly when businessman are starting out, but keeping good
records will bring real advantages to business. Get a proper system in place from the outset,
and update the information regularly.
Table No. -8.1 Business Records
Type of Record Importance
1 Bylaws To provide legal information
2 To provide information about share capital
Capital stock and bond records
and barrowed capital
3 Contracts and agreements
To provide terms and conditions regarding
(government construction, partnership,
contracts and agreements
employment, labour, etc.)
4 To understand legal aspects & information
Legal correspondence about communication concern to legal
aspects
5 To provide important information about
Minutes of the meeting
specific meeting and decision made
6 To know about notes and problems in
Auditors' reports
accounting and book keeping
7 To know about remaining debt and
Bank debt deduction report
instalment paid about debt taken
8 Bank deposit slips, reconciliations, To provide information about deposits,
statements amount and dates of depositing money
9 To know about receipts and expenses of the
Budgets
firms
10 Cheques – Issue Register and Record of To know about amount and payee of the
Cheques cancelled cheque and dates of the cheques
11 To know terms and conditions, rates of
Contracts - purchase and sales selling goods and purchasing
goods/services
12 Depreciation records To about amount of depreciation
13 Employee expense reports and Employee To know about expenses made on payments
payroll of the employees
14 To know about details of work order and
Work orders and production reports quantity of production produced during
specific period
15 To know about material used and material
Inventory lists
available to use
16 Attendance Records To regularity and absentee of the employees
17 Patents , Copyrights and Trademarks To know rights and powers, share of royalty
/Service mark and related details etc.

8.3.3 Market Research

Market research is any organized effort to gather information about markets or
customers. It is a very important component of collecting information for implementing
business strategy. The term is commonly interchanged with marketing research; however,
expert practitioners may wish to draw a distinction, in that marketing research is concerned
specifically about marketing processes, while market research is concerned specifically with
markets. According to the Wikipedia, the free encyclopaedia, Market research is a key factor
to get advantage over competitors and opportunities which available to the entrepreneurs.
Market research provides important information to identify and analyze the market need,
market size and competition. Market research, which includes social and opinion research, is
the systematic gathering and interpretation of information about individuals or organizations
using statistical and analytical methods and techniques of the applied social sciences to gain
insight or support decision making.
Market Research through Public Opinion is one of the important method of collecting
opinion and attitude of the customers and stockholders of the firm. Through this market
researchers investigate the behaviour, values and opinions of clients‘ target markets, providing
insights for the purpose of better tailoring products, services and marketing to market
demands. The industry also includes public opinion polling on current political, economic or
societal issues. Primary users of market research include businesses, media and political
actors. Targets include potential customers, actual consumers, voters and other businesses and
organisations.
1) Market Research for Understanding Consumers
According to IMRB International most successful products and brands start with a
focus on consumers. After all, they are who will decide the ultimate success or failure of any
market introduction. But "know your customer" means more than just gathering data or
information of the consumers. It means recognizing customers as a dynamic, evolving force.
2) Market Research Investigating market
Fully understanding a key topic or market is an excellent way to start a project. These
investigations can provide fundamental knowledge about opportunities prior to investing
significant time and money in product development. Market mapping, demand estimation and
feasibility studies are provides most important information in the decision making.
3) Developing Concept & Market Research
There are millions of good and innovative ideas that are developed into thousands of
products and services every year. Most of them passed or some are failing, miserably. Many of
them could succeed if they just got the details right and which are acceptable. But, in an effort
to get to market quickly or to conserve money, product developers often skip research or do
only cursory studies with a few consumers. Product development research can be very
efficient and very cost effective, particularly when you compare it to the cost of failure
4) Developing Relationship with Customers
According to IMRB International Most truly successful businessman or service
provider those who realize the importance of long term relationship with their consumers and
act accordingly. This means they stay in touch with their customers to learn what they like and
dislike and how their perceptions and behaviours change over time. They track trends and
changes in the culture and modify their products and services as necessary.
5) Customer Feedback and Satisfaction Surveys
Customer satisfaction surveys are a quick and easy way to improve customer
relationship management. The objective of the firm is to keep their customers happy. For the
purpose of collecting information regarding customers satisfactions there is need to collect in-
the-moment feedback, create a sustained engagement with the customers and provide facts
market research is very essential.
6) Risk analysis
Risk analysis is a technique to identify and assess factors that may jeopardize the
success of a project or achieving a goal. This technique also helps to define preventive
measures to reduce the probability of these factors from occurring and identify
countermeasures to successfully deal with these constraints when they develop to avert
possible negative effects on the competitiveness of the company.
7) Competitor analysis
Competitor analysis in marketing and strategic management is an assessment of the
strengths and weaknesses of current and potential competitors. This analysis provides both an
offensive and defensive strategic context to identify opportunities and threats. Profiling
coalesces all of the relevant sources of competitor analysis into one framework in the support
of efficient and effective strategy formulation, implementation, monitoring and adjustment.
Competitor analysis is an essential component of corporate strategy. It is argued that most
firms do not conduct this type of analysis systematically enough.
8.3.4 Stages in Market Research Process
The market research process involves a round of separate stages of data interpretation,
organization and collection. These stages could be considered as a benchmark of market
research, but it depends on an organization how they have encapsulated their strategies to
follow this process. Hence some of the interlinked stages could be conducted repeatedly and
some of the stages can also be omitted. Given below is a typical market research process
which is depicted stage-wise:
1) Defining the Problem or Need
The starting phase is always identifying the reason or problem for which research is to
be conducted. This includes collecting of relevant initial information and how this information
will affect decision making process. It also includes defining problems after discussing with
decision makers of the organization. Once the problem is defined precisely and the need of
research is discussed, the further process could be conducted in an efficient manner.
 2) Determining who will do the research
Once the initial stage of defining the problem and the need of research is done, it is
important to determine who will do the research and what will be the approaches to resolve
these problems. This involves creating a problem solving framework and analytical models
after discussing it organization experts. In this sample case studies are created according to the
defined framework by enforcing the relevant information and secondary data.
3) Selection of the appropriate methodology
A specific methodology is entailed by the research professional after identifying the
specific needs and exploring the case studies. It may include a combination of specific
approaches like telephone survey, web or email survey, one-to-one interviews, secondary
research etc. This methodology acts as a blueprint of research process and following basic
steps:
 Methods for collecting and preparing quantitative information.
 Determining the need of this information.
 Scaling and measuring procedures.
 Designing sample Questionnaire.
 Formulating case studies and sampling process.
 Planning information analysis.
4) Data Collection Process
This process includes field work and desk work for collecting all relevant data and
information. Field work includes interviewing the personals by interacting them face to face
by visiting them in home or offices or arranging group meetings at any preferred place. Desk
work includes contacting personals over telephone or via series of emails and web meetings.
This could take comparatively more time as compared to the field work. Involving
experienced and trained executive for this helps in reducing data collection errors.
5) Data Preparation, tabulation and analysis of results
After the data collecting stage the collected data is edited, corrected if required and
validated. This process is the most important process in the research as the results are
generated on the basis of data preparation. So it is required for an organization to verify the
authenticity of the collected data and edit or correct it if needed. The final data is then
segmented according to the business standards and inserted into the CRM database in a more
tabulated form so that search or combination could be made easily.
6) Presentation and report generation
The entire process is properly documented with respect to organizational standards so
that it can be referred in future for decision making process or to change or modify any
specific process. This document contains overall architecture of the project depicting all the
processes with the help of tables, graphs and figures to provoke impact and clarity.
8.3.5 Advantages of Market Research
1) Indicates current market trends: Market research keeps business unit in touch with
the latest market trends and offers guidance for facing market situation with
confidence. It facilitates production as per consumer demand and preferences.
2) Pinpoints deficiencies in marketing policies: MR pinpoints the deficiencies as
regards products, pricing, promotion, etc. It gives proper guidance regarding different
aspects of marketing. They include product development, branding, packaging and
advertising.
3) Explains customer resistance: MR is useful for finding out customer resistance to
company's products. Suitable remedial measures are also suggested by the researcher
to deal with the situation. This makes the products agreeable to the consumers.
4) Suggests sales promotion techniques: Market research enables a manufacturer to
introduce appropriate sales promotion techniques, select most convenient channel of
distribution, suitable pricing policy for the products and provision of discounts and
concessions to dealers. It facilitates sales promotion.
5) Guidance to marketing executives: Market research offers information and guidance
to marketing executives while framing marketing policies. Continuous research
enables a company to face adverse marketing situation boldly. It acts as an insurance
against possible changes in market environment.
6) Selection and training of sales force: Market research is useful for the selection and
training of staff in the sales Organisation. It suggests the incentives which should be
offered for motivation of employees concerned with marketing.
7) Facilitates business expansion: Market research enables a business unit to grow and
expand its activities. It creates goodwill in the market and also enables a business unit
to earn high profits through consumer-oriented marketing policies and programmes.
8) Facilitates appraisal of marketing policies: Research activities enable marketing
executives to have an appraisal of the present marketing policies in the fight of
research findings. Suitable adjustments in the policies are also possible as per the
suggestions made.
9) Suggests marketing opportunities: Market research suggests new marketing
opportunities and the manner in which they can be exploited fully. It identifies existing
and emerging market opportunities.
 10) Facilitates inventory study: Market research is useful for the evaluation of company's
inventory policies and also for the introduction of more efficient ways of managing
inventories including finished goods and raw materials.
11) Provides marketing information: MR provides information on various aspects of
market. It suggests relative strengths and weaknesses of the company. On the basis of
such information, marketing executives find it easy to frame policies for the future
period. MR provides information, guidance and alternative solutions to marketing
problems.
12) Suggests distribution channels: Market research can be used to study the
effectiveness of existing channels of distribution and the need of making suitable
changes in the distribution system.
13) Creates progressive outlook: Market research generates a progressive and dynamic
outlook throughout the business Organisation. It promotes systematic thinking and a
sense of professionalisation within the company. It also creates enthusiasm among
executives concerned with market. This brings success and stability to the whole
business unit.
14) Social significance: Market research is of paramount importance from the social
angle. It acts as a means by which the ultimate consumer literally becomes king of the
market place.
8.4 Role of Advertisements in Communication
Marketing communications are the means by which firms attempt to inform, convince,
and remind consumers directly or indirectly about the products and brands that they sell. In a
sense, marketing communications represent the ―voice‖ of the brand and are a means by which
it can establish a dialogue and build relationships with consumers. Although advertising is
often a central element of a marketing communications program, it is usually not the only one
– or even the most important one in terms of building brand equity.
1. According to William J. Stanton, "Advertising consists of all the activities involved in
presenting to an audience a non-personal, sponsor-identified, paid-for message about a
product or organization."
2. According to American Marketing Association "advertising is any paid form of non-
personal presentation and promotion of ideas, goods and services by an identified
sponsor".
3. According to Gardner, ―Advertising is the means of mass selling that has grown up
parallel with and has been made necessary to mass production‖.
8.4.1 Objectives of Advertising
There are two basic questions that advertising objectives should address. ‗Who are the
people we are trying to influence?‘ and ‗What specific benefits or information are we trying to
communicate to them?‘ Advertising includes messages that companies convey for, delivers
through a mass medium and uses to convince consumers. The three general ad objectives are
to inform, to persuade and to remind customers. Within these broad goals, companies
normally have more specific, quantified objectives, as well. According to various experts in
the advertising the important objectives of advertising are as follows;
1. To make attitudes more favourable to a particular product
2. To build an image for the product
3. To get across the idea of a unique product
4. To create a brand leader to help the launch of additional products at a future date
5. To expand the whole market and to reduce existing negative attitudes
6. To keep building loyalty and to create a brand leader in a particular market
7. To increase sales among existing users and to improve the frequency of purchase
8. To keep new entrants out of the market
9. To convey the idea that the product is ‗value for money‘
10. To improve market share compared with competitors
11. To reach people inaccessible to salesman
12. To enhance the goodwill of the enterprise
8.4.2 Importance of Advertising
Advertising plays a very important role in today‘s age of competition. Advertising is
one thing which has become a necessity for everyone in today‘s day to day life, be it the
manufacturer, the traders, or the purchaser. Advertising is a central part.
1) Promotion of Sales: Advertising promotes the sale of commodities and services by
informing and persuading the public to purchase them. A good advertising campaign
helps in attractive new customers both in the national as wet as in the international
markets.
2) Inform about New Product/service: Advertising helps the introduction of new
products or service in the market. A company can introduce itself and its product to the
public through advertising. A new enterprise can't make an impact on the prospective
customers without the help of advertising.
3) To educate the society: Advertising helps educating people. There are some social
issues also which advertising deals with like child labour, liquor consumption, girl
 child killing, smoking, family planning education, etc. thus, advertising plays a very
important role in society.
4) To Create Awareness about Product: Advertising is a favorable representation of
product to make consumer, customers and general public aware of product. It let the
potential buyers, general public and end users to be aware and familiar with the brands
and their goods and services.
5) Try to switching back: Advertising helps for the companies who want their previous
customers back, who have switched to their competitors. The advertisers use different
ways to attract the customers back like discount sale, new advertise, some reworking
done on packaging, etc.

6) Encourage to Purchasing: Encouraging people to purchase goods and services is the

main role of advertising. Some industries rely on advertising more than others.
Advertisers often influence members of society to purchase products based on
instilling a feeling of scarcity or lack.

7) Meeting competition: Advertising is an important means for facing competition. By

creating brand loyalty, it helps to maintain sales and market share. The importance of
Advertising lies in the fact that it creates preference for a particular product opens
doors for salesmen and reinforces point of purchase display, thereby reducing the costs
of creating and maintaining demand.

8) Creating Goodwill: Advertising definitely helps to creating a good image of the firm,
products or service and reputation of the products/service in the market. A favorable
image increases the capacity of the firm to survive competition and depression.

However, other than mentioned above a communication role in advertising focuses on

mass communication requirements that the advertisement will able to fulfill. This is a method
of informing potential customer, the launch of new products or the pass on information about
the service and good they intent to buy.
8.5 Market Survey
A market survey is an objective and systematic collection, recording, analysis and
interpretation of data about existing or potential markets for a product/service. During a
market survey, one needs to focus on Size of the market and the anticipated market share in
terms of volume and value, Pattern of demand-seasonal or fluctuating in time, Market
structure etc. A market survey is an important requirement for initiating any successful
business. The objective of a market survey is to collect information on various aspects of the
business. This survey is a tool through which we can minimize risk. After the market survey,
the results must be analyzed in order to finalize a business plan. Market surveys are an
important part of market research that measure the feelings and preferences of customers in a
given market.
8.5.1 Quantitative and Qualitative Market Survey
1) Quantitative Market Survey
Qualitative market research means "quality." It does not mean "quantity." Qualitative
research methods are designed to talk to a relatively few people in the target audience of
interest. The purpose of qualitative research is to plumb the depths and range of buyer
attitudes and beliefs, not to measure incidence, project, or forecast quantity. Popular
qualitative market research methods include focus group studies, depth interviews triads (one
interviewer, two respondents, and dyads (one interviewer, one respondent,) and observational
techniques such as ethnography and, popular in marketing research, photo-ethnography.
2) Qualitative Market Survey
Quantitative marketing research designs gauge, describe, and forecast quantity. Using
a range of sampling strategies, quantitative market research studies often project results of
quantitative market surveys to the entire marketplace. Popular quantitative market survey
methods include online surveys, personal quantitative interviews, mail surveys, and telephone
surveys. At Power Decisions Group, we recommend the data collection technique -- phone,
face to face interviews, web interviews, traditional mail -- according to the research objective,
time requirements, and quality control issues at play.
8.5.2 Techniques of Market Survey
There are various techniques which can be used to undertake market survey i.e. online
surveys, phone surveys, focus groups, executive interviews, depth interviews, and online
discussion forums etc.
1) Paper Surveys: Paper survey is the technique of the collection of the data regarding
desired respondents. In this method written questionnaire is important tool of collecting
information about questions or issues under investigation. This is very traditional method
which consumes time and money in the collection of data and it is hectic process.
However, it is most useful in case of rural area and where no internet connectivity or no
telephone services.
2) Telephone Surveys: Telephone surveys used to be the most popular form of interviewing
before the web became dominant. Traditionally, centrally based phone centres were set up
with interviewers seated at booths. Advantages of this method include: rapid contact with
respondents, especially when integrated with the use of a CATI (computer-assisted
telephone interviewing) system; interviewers can elicit more complete and substantive
 answers from respondents as well as ask for clarification and elaboration concerning
responses.
3) Web Survey or Online Surveys: Internet based surveys are highly cost-effective for
gathering data from a very large sample base. Utilizing email surveys, Direct Opinions
makes it easy for our clients to get information quickly and affordably for large target
market groups of customers or business prospects. Advantages of Web surveys include:
faster speed of responses, substantially reduced cost, and increased respondent flexibility.
4) Mail Surveys: Mail surveys are a common survey methodology that can be filled out in
the privacy of a respondents' home or office never meeting the researcher. Mail surveys do
offer a high degree of "anonymity" so surveys that ask about more sensitive information
will get a greater response rate if conducted through mail.
5) Focus Group: A focus group is a form of qualitative research in which a group of people
are asked about their perceptions, opinions, beliefs, and attitudes towards a product,
service, concept, advertisement, idea, or packaging. Questions are asked in an interactive
group setting where participants are free to talk with other group members. According to
Wikipedia there are followings types of focus groups;
 Two-way focus group - one focus group watches another focus group and discusses
the observed interactions and conclusion,
 Dual moderator focus group - one moderator ensures the session progresses
smoothly, while another ensures that all the topics are covered
 Dueling moderator focus group - two moderators deliberately take opposite sides
on the issue under discussion
 Respondent moderator focus group - one and only one of the respondents are
asked to act as the moderator temporarily
 Client participant focus groups - one or more client representatives participate in
the discussion, either covertly or overtly
 Mini focus groups - groups are composed of four or five members rather than 6 to
12
6) Executive Surveys: An executive survey will provide, from the viewpoint of the Chief
Executive Officer to the Human Resources Manager, a functional and customizable tool
with which to evaluate the knowledge, direction, and responsibilities of your executive
staff. The company will receive an effective and comprehensive evaluation of senior
executives and management staff and better understanding of executive
responsibilities that will allow improving productivity and ability to meet business goals
and objectives.
8.6 Financial Consultancy
A financial consultancy is one of the important services which required to the business
firm as well as individuals. It offers money management advice to people and businesses.
Most people employ them for guidance on how to reach long-term financial goals, which may
include a debt management plan, investment advice, or developing a savings plan.
Organizations also work with consultants to make sure their business plans are financially
viable and to manage money programs for employees.
The communication between firm and financial consultant is basically intellectual
communication. Consultants generally provide insights regarding financial planning and solve
problems regarding finance. The services rendered by consultants are normally for a finite
period of time and well-defined scopes of work described by clear terms of reference and are
generally of an intellectual nature.
8.6.1 Role of Financial Consultant
A financial consultant does supplementary than draw up a budget. They work with
clients to meet current and anticipated financial requirements through a variety of techniques,
tips, plans of investment, budgeting, and management techniques. The steps a financial
advisor typically follows include:
Gathering and organizing data about the client's current financial situation
Identifying reasonable financial goals
Provide best options according to needs
Providing alternatives and ways to eradicate financial problems
Providing professional insights about financial issues
Monitoring the progress and suggesting adjustments if necessary
8.6.2 Types of Financial Consultant
There are number of types of Financial Consultants they are broadly classified in the
followings types;
1) Fee-Only Consultants
These financial experts are entirely paid by the client and do not gain any money from
product commissions or shares in investment portfolios. This practice ensures the consultant's
first priority is providing the best possible service to the client rather than making portfolio or
investment choices based on their own financial gain.
2) Commission-Based Consultants
These planners typically have lower initial fees and derive some income as a
percentage of the success they have with clients' portfolios. While this motivates them to have
a good sense of profitable investments, they may have a conflict of interest when it comes to
the client's long-term financial goals.
3) Individual Consultants
Individual consultants are independent experts not permanently associated with any
particular firm, or they may be employees of a firm recruited on an individual basis. However,
they may also be employees of an agency or firm.
4) Staff Consultants
Staff consultants are also normally individual consultants but are funded directly from
budget of the firm or business. Most often staff consultants are in-house staff with specialized
in financial services and financial management.
5) Resource Persons
Resource persons are persons of particularly high caliber or specific levels of
experience, often distinguished in field of finance, who are hired to provide input and
guidance. Normally such experts are hired for specific periods of time.
8.6.3 Importance of Financial Consultancy
Financial consultants provide financial services to their clients. The experts firstly
analyse carefully the current situations and accordingly help in preparing project reports.
Further, they helps to take care of loan arrangement needs including term loan, cash credit
limit and project loan. They leverage their understanding of the industry and ability to deliver
quick and innovative solutions to the businessman. This is one of the important
communications which is required for development of the business according to the objectives
of the firm. Financial consultants are offering wide range of tax consultancy services by a
team of financial experts, which holds proper understanding of the different tax laws & rules.
This services help in minimizing their liabilities related to tax. The financial consultant also
provides financial auditing services, financial accounting services, payroll financial services
and business finance consultant corporate finance consultant, business finance consultant,
personal finance consultant, project finance consultant and finance management consultant.
8.7 Summary

A. Business communication is known simply as "communications". It encompasses a

variety of topics, including marketing, branding, customer relations, consumer
behaviour, advertising, public relations, corporate communication, community
engagement, research & measurement, reputation management, interpersonal
communication, employee engagement, online communication, and event management
etc. Internal Communication and External Communication are two main types of
communication. Web-based communication, Video conferencing, E-mails, Reports,
 Presentations, Telephoned meetings, Forum boards and Face-to-face meetings are
methods of communication in business sector.

B. Information sources are one of the important elements of the business decision process
which helps to take right and appropriate decision. There are some internal sources and
some are external sources of business information. Management Intelligence system,
Business Internal Record and information collected through Market Research are main
sources of business. Typical market research process can be followed as; defining the
problem or need, determining who will do the research, selection of the appropriate
methodology, data collection process, data preparation, tabulation and analysis of
results and presentation and report generation

C. Advertising consists of all the activities involved in presenting to an audience a non-

personal, sponsor-identified, paid-for message about a product or organization. There
are number of objectives of advertising i.e. make attitudes more favourable, build an
image, get across the idea, create a brand leader, expand the whole market, building
loyalty, convey the idea and improve market share

D. A market survey is an important requirement for initiating any successful business. The
objective of a market survey is to collect information on various aspects of the
business. Quantitative Market Survey and qualitative Market Survey are two important
types of market research.

E. A financial consultancy is one of the important services which required to the business
firm as well as individuals. Consultants generally provide insights regarding financial
planning and solve problems regarding finance. It is intellectual communication.

8.8 Check your progress - Fill in the blanks

1. Communication is the process by which ......................................is transmitted between
individuals or organizations so that an understanding response result
A) Opinion B) Goods C) information D) Service
2) Upward Communication, Downward Communication and Horizontal Communication is
major types of ................Business Communication
A) Internal B) External C) information D) Formal
3) ....................... is external source of business information
A) Inventory lists B) Attendance Records C) Bylaws D) Annual Report of the Bank
4) .........................................survey is a quick and easy way to improve customer relationship
management.
A) Customers B) Traders C) Suppliers D) Employees
5) .............................is not method of collecting primary information in market research
A) email survey B)literature survey C) interview D) telephone survey
Answers Key
1- C) information 2-A) Internal
3- D) Annual Report of the Bank
4- A) Customers 5- B)literature survey
8.9 Write answers in brief
1) Explain the meaning and type of business communication
2) What is market research? Explain the stages in market research process
3) Explain the advantages of market research
4) Explain the role of advertisements in communication
8.10 Write Short Notes
1) Methods of Business Communication
2) Importance of Business Communication
3) Sources of Business Information
4) Management Intelligence system
5) Business Internal Record
6) Importance of Advertising
7) Quantitative and Qualitative Market Survey
8) Financial Consultancy
 References
1) Ramanuj Majuntdar (1990), Marketing Research: Text, Applications and Case Studies,
Wiley New Delhi,
2) Howard Dick, Peter J. Rimmer (2003), Cities, Transport and Communications, The
Integration of Southeast Asia Since 1850, Palgrave Macmillan. ISBN10: 0333553012
3) Gordon, Ian (1989). Beat the Competition: How to Use Competitive Intelligence to
Develop Winning Business Strategies. Oxford, UK: Basil Blackwell Publishers.
4) John MacAdams (2012) Business Records Retention— Protecting your Information,
http://www.shrednations.com/articles/business-records-retention.php accessed on
10/9/2012
5) Kotler, Philip and Armstrong Gary (2007), Principles of Marketing Pearson, Prentice
Hall, New Jersey, 2007 ISBN 978-0-13-239002-6, ISBN 0-13-239002-7
6) Kiyoshi Kobayashi, T. R. Lakshmanan, William P. Anderson (2004), Structural
Change in Transportation and Communications in the Knowledge Society, Edward
Elgar Publishing, USA, 2004. ISBN10: 1843766108
7) IMRB International (2012) http://www.imrbint.com/ accessed on 12/09/2012

View publication stats