Purposes of Business Letter

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There are wide varieties of business letters like circular letter, inquiry letter, order letter, collection letter etc. all these letters serve important and multidimensional business purposes. The major purposes or objectives of writing business letters are discussed below:
To exchange information: The main purpose of business letter is to exchange information related to business. Through it, business organizations collect and convey business related information.-business-letters
To establish business relationship: By exchanging information through business letters, new business relationships can be established with various parties and existing relationships can be strengthened.
To make inquiry: Another important objective of writing business letter is to make inquiry about people, product, price etc. With the expansion of business operations of a business, importance of business letter is also increasing.
To take right decisions: Taking right decisions require accurate information. Since business letter s collect information form reliable sources, executives can take right decision using that information.
To place orders: A common purpose of writing business letter is to place order for goods specifying quantity, quality, price, payment method etc.
To create goodwill: Goodwill is an important asset for any business. Businesses can create goodwill by writing letters like order confirmation letter, adjustment grants letter, inquiry letter, reply to inquiry letter etc.
To save time and cost: Saving time and cost of communication is another objective of writing business letter. Posting letter is cheaper and less time consuming than making personal visits.
To expand markets: Through writing various business letters like inquiry letter and circular letter, business organizations can create new market for their products.
To overcome misunderstanding: If there arise any misunderstanding between a business and its stakeholders, business letter is written to overcome it.
To settle transactions: By means of writing business letter s, concerned parties can settle their transactions. For example, customers write claim letters to the sellers for compensations, sellers write collection letters to customers for collecting dues.
To keep records: Another reason for the wide use of business letter is to keep permanent record of information. Business letters help to develop an information base in the organization and facilitate future decision making.

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