Introduction

Business Communications

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 market 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 Capital stock and bond records To provide information about share capital and barrowed
capital

3 Contracts and agreements

(government construction, partnership, employment, labour, etc.)

Legal correspondence

To provide terms and conditions regarding contracts and agreements

To understand legal aspects & information about communication concern to legal aspects

5 Minutes of the meeting To provide important information about specific

meeting and decision made

6 Auditors' reports To know about notes and problems in accounting and

book keeping

7 Bank debt deduction report To know about remaining debt and instalment paid
about debt taken

8 Bank deposit slips, reconciliations, statements

To provide information about deposits, amount and dates of depositing money

9 Budgets To know about receipts and expenses of the firms

10 Cheques – Issue Register and Record of

Cheques cancelled

11

Contracts - purchase and sales

To know about amount and payee of the cheque and dates of the cheques

To know terms and conditions, rates of selling goods and purchasing goods/services
12 Depreciation records To about amount of depreciation

13 Employee expense reports and Employee payroll

14

Work orders and production reports

To know about expenses made on payments of the employees

To know about details of work order and quantity of production produced during specific period

15 Inventory lists To know about material used and material available to use

16 Attendance Records To regularity and absentee of the employees

17 Patents , Copyrights and Trademarks

/Service mark

To know rights and powers, share of royalty 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

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