What Are the Functions of Business Communication?

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  • Written By: Nick Mann
  • Edited By: Jessica Seminara
  • Last Modified Date: 11 April 2014
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Business communication is a term used to describe a variety of concepts that deal with an exchange of information between a business and its customers or between various company personnel. For example, this could include advertising, public relations, branding and internal communication between different business departments. Having effective communication is often vital to the success of a business and can affect how it is perceived by customers. Consequently, there are four main functions of business communication. These include staying competitive, creating brand awareness, developing customer rapport and ensuring employee productivity.

Perhaps one of the most important functions of business communication is staying competitive with other companies. Without effective customer and internal communication, it's unlikely that a business will thrive and be a serious competitor within an industry. That's why things like advertising and public relations are essential. If a business cannot convey its message and efficiently promote its products or services to its target audience, it's likely to fail. In addition, it's vital for a company to have a clear channel of communication internally so that all departments are on the same page.


Creating brand awareness is also critical for a business to create momentum and perpetuate growth. This aspect of business communication helps to turn a simple product or service into a nationally or internationally recognized commodity. To create a brand, a business will usually implement several techniques that can include social media, online advertisements, television advertisements and print media. Developing a brand helps a target audience or the general public to identify a company as a unique entity within its industry. This is, therefore, one of the functions of business communication that often aids in the long term growth of a business.

Another reason why business communication is so important is because it helps to develop a rapport between a company and its customers. In order for customers to become comfortable with buying a company's products and spread the word to others, it's vital to first establish trust. This is typically accomplished by engaging with the public, and can be done in a variety of ways. For example, a business might create an interactive website where customers can read its blog and stay up-to-date on new products or deals.

In addition, ensuring employee productivity is another of the functions of business communication. To keep workers on track and ensure quality products or services, a company will usually need to have sound communication between managers and staff. Achieving this level of communication is often done by holding company meetings, promoting direct contact between managers and staff, or organizing activities like company picnics.


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