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What Are the Functions of Business Communication?

Nick Mann
Nick Mann

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.

Businessman with a briefcase
Businessman with a briefcase

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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Discussion Comments


New businesses should look at some of the big multi-national corporations for examples on business communication and brand marketing. They are where they are today because they used business communication in the best way.


One thing I've noticed is that some businesses have great internal communication and some have very poor internal communication. It's always apparent which is the case when I'm interacting with them and speaking to different people in the business.

Sometimes, employees have no idea what the other is doing, or they're not on the same page about an issue. When I receive conflicting information from different employees in a business, I know that they don't have the best internal communication.


Social media is a great new way for business communication between businesses and their customers.

It's easier and faster for customers to reach out to businesses through various social media and networking sites. Businesses should have profiles and pages on these sites, not only for advertising purposes, but also for customers to share their opinions or ask questions more easily.

Not everyone may be interested in picking up a phone and calling a business. But many people would be interested in sending them a message or comment online.

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      Businessman with a briefcase