Transferring information between a business and other businesses or persons outside the business environment is termed as external business communication. Organizations are supposed to communicate with other organizations or persons to achieve their goals. These people may include investors, current or potential customers, shareholders, society, government organizations or other business units, etc. So, external communication happens when business organizations exchange information with the above-mentioned business units or entities.
External communication generally has different mediums of communication like email, advertisements, brochures, newsletters, content marketing, etc. The purpose of external communication is to have smooth communication between different organizations or entities.
Types of External Communication
External communication is broadly categorized as formal and informal business communication:
1. Formal External Business Communication: It is considered as the initial element in building the appropriate corporate image. This includes different formal letters, memos, reports, or presentations. The main objective of external communication in business is to intimate the work and quality of products or services of a business to its external environment.
Different types of formal external communication are as below:
a. Content of website and blogging: Different advertising strategies like developing useful website content, Search engine optimization (SEO), content marketing, etc. are also beneficial in providing crucial information about the organization or brand. Websites play a great role in building strategies of external communication as these act as a hub for a business’s other activities related to building its brand. Similarly, through content marketing, organizations can ensure the increasing visibility of their website on search engines. Moreover, by inviting comments and people to contact businesses through the comment section and contact page, organizations ensure two-way communication.
b. Conferences and live consorts: Different conferences or seminars and live events are considered as one of the important types of factors to boost external communication in business.
c. Email and newsletters: One another type of external business communication is an email system. It is used for both purposes i.e. to demonstrate new offers to customers, to increase sales and also to build a long-term relationship with different stakeholders that are external to an organization.
d. Social media: Social media is considered as an advanced and the latest external communication medium. Different social media platforms like Facebook, Linkedin, Twitter, Whatsapp, etc. are very much beneficial in interacting with external people of an organization.
c. Press releases: Press releases and press coverage also play a vital role in external communication as organizations can improve their brand image and credibility through media outlets and press releases. Also, connecting with different potential customers is possible through these.
Examples of External Business Communication:
Different organizations use external communication mediums to communicate about the cost of their products and services. This medium can be newspaper advertisements, broadcast on radio channels, the internet, etc. The different promotion offers like coupons, bonus points, buy 1 get 1 free, etc. are designed by the organization to increase sales, attract and retain loyal customers.
E-mail messages are also forwarded to customers to inform them about discounts, free samples, etc.
2. Informal External business communication: It is the one that is not in direct control of an organization. For example, employees absorb and strengthen their knowledge about their work and organization daily and when they discuss the same in the external environment of the organization then it’s considered informal external business communication.
Importance of External Business Communication
1. Communicating news or information: External communication is considered as a communicative tool for other organizations and persons that operate in the external business environment. It facilitates business in spreading any information and news related to organizations to its customers, shareholders, suppliers or other people.
2. Image building: The success of any business not only depends on its sales but also its image perception in its customers and other stakeholders. Through external communication an organization can establish its image, workplace culture to its stakeholders through different communication mediums like newsletters, press releases, media related stories, etc.
3. Potential customers: Through different external communication mediums like websites, social media sites like Facebook, Linkedin, etc. businesses can increase awareness of their products or services to its audience as these are the convenient way to reach the target audience and also cost-effective promotion strategies.