Effective business communication importance

External communications are an important part of a corporation's marketing plan.

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External business communication is any information the company distributes to the public, either about the organization itself or their products and services. A well-thought out communications plan not only defines the target audience, but also focuses on how to reach it effectively. Because the goal of external communications is to promote the company and increase revenue, external communications are an important part of an overall marketing plan.

External Communications

External communication is any communicative effort specifically for people and organizations operating outside of the business. While internal communications are specifically for employees and management, external communications focus on spreading news and information about the corporation to the public, customers, and company stakeholders. Common examples of external business communications include direct mailings, financial records, press releases, and newsletters.

Public Relations

Although many companies focus on sales as a measure of business success, public perception is just as important to the organization's bottom line. Communications are one way to shape and define a corporation's image to the community, clients, and potential investors. External communications such as newsletters, media stories and press releases let the public know about the company workplace, philanthropic and environmental efforts, and other image-related activities, all of which serve to strengthen the public relations efforts of a company.

Related Reading: The Importance of Telephone Communication in Business

Technology and External Communications

While traditional print methods of communications are still common, modern technology has changed the face of external communications, and the Internet has become a valued resource in reaching new customers. Companies create websites to let people know of upcoming products and services. Social media such as Facebook and blogs are an easy way to reach target demographics and are a cost-effective means of promotion. However, with interactive technology there is also the possibility of public backlash, such as negative comment posting. In the long run, the benefits far outweigh the risks, as technology is far-reaching and allows the company to communicate with audiences all over the world.

Challenges

While external business communications seem like an effective way to reach out to the public, it is not without its challenges. The public impression of an organization can define the success or failure of the company in the long-run. One misplaced quote, or badly worded newsletter will not only ruin an expensive external communications plan, but also has the potential to affect corporate revenue. Therefore, those in charge of external communications for the company need to be aware of their audience and the company image they wish to convey.