The investment made on the communication tools is so high that if these mediums are not utilized to its maximum potential, the very purpose of business i.e. to make profit becomes highly impossible. Business communication is defined as the communication which is used to promote a product or a service or any other processes in an organization. Effective business communication plays a vital role in the profitability. This paper discusses in detail how communication in business can have an impact on profitability.
Business communication is a major subject in many of the management studies. It encompasses a variety of topics such as Marketing, Branding, Customer relations, Consumer behavior, Advertising, Public relations, Media relations, Corporate communication, Community engagement, Research & Measurement, Reputation management, Interpersonal communication, Employee engagement, Online communication, and Event management. And each of these topics is linked to the basic idea of effective communication.
The various channels through which business communication takes place include print media, television, radio, internet, and also on a one-to-one bases which is called the word of mouth (Wikipedia n.pag). Therefore, every communication either to an employee or to a prospect or a customer is of great value as effective communication can make a long-lasting relationship or because of a bad communication the business can go for a loss. If it is in a marketing field, each communication presents a golden opportunity to increase sales, build customer loyalty, edify the company and in the process achieve the business goals.
The major problem today is that many companies are wasting their precious resources on ineffective communications that cause confusion among the customers or clients and result in costly customer dissatisfaction. Business communications is not just a simple subject for management studies but it involves a whole range of pre- and post-sale communications, including welcome kits, account statements, invoices, applications, policies, manuals, customer educational materials, announcements of changes in terms and much more (Lundy 2-11).
There are several models to show that business communication is one of the most important aspects and is linked to profitability. Under the Universal Business Model (UBM), communication between the three basic functions of production, marketing and accounting increase profitability. For instance, if the marketing unit has not been informed by production as to what it currently manufactures or the amount of stock, the marketing unit may face problem. Similarly, if manufacturing is not told by accounting what products are profitable to produce, they may operate at a loss. This kind of communication between different units of the same organization also plays a vital role in business communication (Universal Accounting Center n.pag. 2007).
The importance of business communication and its link to profitability was expressed clearly from the results of Sage Research. Through the study it was discovered that 22 percent of the organizations polled experienced monthly communication-caused delays-and 13 percent experienced such delays weekly. As a result of communications delays there was disruption in the efforts to streamline business processes or adopt the emerging "best practices". Additionally, the disruption in these processes decisions and projects are negatively